Enbridge Inc. · TSX:ENB
Enbridge — JPMorgan Conference 2017
22 slides from Enbridge's conference presentation, 2017
Slide 1: Enbridge Investment Community Presentation
Enbridge Investment Community Presentation
Slide 2: Legal Notice
Legal Notice Forward Looking Information This presentation includes certain forward looking statements and information (FLI) to provide potential investors and shareholders of Enbridge Inc. (“Enbridge”) with information about Enbridge and its subsidiaries and affiliates, including management’s asses
Slide 3: Enbridge – A "Must-own" Investment
Enbridge – A “Must-own” Investment 2016 Pro-forma EBIT Gas Utilities & Power • Leading energy infrastructure position Liquids in North America Gas Transmission & Midstream • Balanced portfolio of competitively positioned assets • Low risk business profile with minimal volume and commodity exposure •
Slide 4: Key Corporate Priorities
Key Corporate Priorities • 6 leading platforms • Safety & operational reliability • Focus on optimizing returns • Disciplined capital allocation • Low risk commercial models • Efficiency and effectiveness • Visible dividend growth • Balance sheet strength • Sponsored Vehicles Focused on maximizing s
Slide 5: Liquids Pipelines Businesses
Liquids Pipelines Businesses Diversified low risk asset portfolio 2016 Pro Forma LP EBIT by Business 100% 5% Other Highly Contracted 4% Southern Lights Pipeline Long Term Take or Pay 90% 5% Common carrier with 9% Bakken System indexed rate*; Long Term 80% Take or Pay 6% Regional Oil Sands Long Term
Slide 6: Gas Transmission & Midstream Businesses
Gas Transmission & Midstream Businesses Critical infrastructure connecting growing supply to key markets • Connecting to key demand pull markets: US Northeast, US Southeast, US Gulf Coast • Strategic footprint located in prolific Montney and Duvernay regions • Access to low cost supply from Marcellu
Slide 7: Gas Distribution Utility Businesses
Gas Distribution Utility Businesses Key element of Enbridge’s low risk business profile ON • Largest and best situated gas distribution franchises in Canada • Highly valued asset base underpinned QC by regulated, low risk business model Union Gas with incentive upside Utilities 13% EGD • Exceptional
Slide 8: Offshore Wind Power Generation Business
Offshore Wind Power Generation Business 1 GW low risk offshore wind capacity secured and under development Enbridge Offshore Wind Projects Capital Investment ($C, Billions) $9 Development $7.4B $6 $4.5B Secured $3 $2.9B $0 Rampion Hohe See Hohe See Expansion Saint-Nazaire Courseulles-sur-Mer Fecamp
Slide 9: Recently Secured Organic Growth Projects
Recently Secured Organic Growth Projects ~$4B secured since merger with Spectra (Mar 2017) Hohe See Offshore Wind & Spruce Ridge: $0.5B T-South Expansion: $1.0B Expansion: $2.1B DENMARK BC Station 2 Aitkin Creek Plant BC Hohe See McMahon Hohe See Plant Expansion 112MW Station 2 T-South 497MW Hohe Se
Slide 10: Highly Transparent, Secured Growth Portfolio
Highly Transparent, Secured Growth Portfolio $31B of diversified low risk projects drives significant near term cash flow Project Expected ISD Capital (C$B) Project Expected ISD Capital (C$B) Valley Crossing Pipeline 2H 18 1.5 USD Regional Oil Sands Optimization – In service 1.3 CAD Athabasca Twin R
Slide 11: $31B Secured Growth Projects in Execution
$31B Secured Growth Projects in Execution Cumulative EBITDA Growth from 35 Secured Growth Projects (C$ billions) Secured Projects (C$ billions) $31B 4 $13B 30 Liquids 25 9 projects 3 Line 3 Replacement GTM 20 $4B 17 projects Gas $14B 2 15 Distribution 6 projects 10 Renewables 1 4 projects 5 0 0 2017
Slide 12: Financial Strength
Financial Strength Low risk business profile ~96% generated by ~93% Scale & Asset take-or-pay investment-grade Business Risk Diversity or equivalent counterparties2 Assessment Scale 2% 13% S&P Excellent Moody’s A $7.5B 50% 96% 93% 35% 2016 Pro Forma EBIT 2016 Pro Forma EBIT Q1 2017 Credit Exposure L
Slide 13: Financial Strength
Financial Strength Prudent funding and balance sheet management Metric Long Term Target Consolidated Pro Forma Debt to EBITDA End of year Credit Ratings Strong, Investment Grade 6.2x Dividend Payout 50-60% ACFFO 5.5x 5.0x 5.1x FFO / Debt ≥15% 4.3x Debt / EBITDA ≤5.0x Liquidity >1x forward 12 mos. ca
Slide 14: Merger Integration Update
Merger Integration Update Synergy capture on track Synergy Targets Forecast annual run rate synergies by 2019 Stream $CAD MM Supply chain optimization Cost 540 Tax Other costs Tax 260 $800Million Timing 2017 2018 2019 Cost synergy capture ~50% ~80% 100% General O&A costs Tax synergy capture 0% 0% 10
Slide 15: Long Term Dividend Growth Outlook
Long Term Dividend Growth Outlook 10-12% CAGR through 2024 Dividend / Share Outlook • 15% dividend increase in 2017 • 10-12% annual dividend growth (2017-2024) • Conservative payout ratio of 50% - 60% Dividend growth beyond 2019 supported by: $2.44 • Organic growth development projects $2.12 • Ongoi
Slide 16: Value Proposition: Premium Shareholder Returns at Low Risk
Value Proposition: Premium Shareholder Returns at Low Risk 22 Years of Dividend Increases +15% +14% Strong, +33% Organic Growth 1996 2017e ENB Total Shareholder Return Enbridge 16.7% Superior, Steady & Low Risk Growing Business 20 Year CAGR Cash Flow Model S&P 500 Energy S&P 500 1997 2017 16
Slide 17: Q&A
Q&A
Slide 18: Appendices
Appendices 1. Line 3 2. Mainline commercial Plan 3. WCSB Capacity 4. Secured Growth Funding Plan
Slide 19: Mainline – Secured Growth
Mainline – Secured Growth Improved reliability and capacity expansion • Line 3 Replacement – Restores line capacity to 760 kbpd (+375 kbpd) Edmonton – Expected In-Service: 2019 Hardisty – Capital: $7.5B ($4.9B CAD, $2.6B USD) Kerrobert – 15 year toll surcharge on every mainline barrel +375 kbpd – Lo
Slide 20: Liquids Pipelines - Mainline Commercial Plan
Liquids Pipelines - Mainline Commercial Plan Actively positioning for continued success 1 Maximize current Mainline Throughput 2 Complete Mainline Secured Growth Projects Ex- Gretna (KBPD) Annual Capacity 2,800 2,600 2,400 Ex-Gretna 2,200 2,000 Deliveries 1,800 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr
Slide 21: Mainline – WCSB Capacity Requirements
Mainline – WCSB Capacity Requirements Mainline expansions are best positioned to meet industry capacity needs WCSB Capacity Outlook (KPBD) 6,000 5,500 CAPP 2016 5,000 Post 2019 Enbridge Post-2019 Enbridge incremental capacity Incremental 4,500 Line 3 Replacement + 2019 Incremental Capacity Capacity
Slide 22: Financial Strength: Funding the secured capital program
Financial Strength Funding the secured capital program (2017-2019) Enbridge Group Funding Requirements Ample sources of alternative equity (2017e – 2019e) financing to meet additional needs $2 • JV Contributions • Alternative sources of equity capital: $2.5 • $10 Equity equivalent funding already co