Enbridge Inc. · TSX:ENB
Enbridge — Investor Day (2021)
103 slides from Enbridge's investor day presentation, 2021
Slide 1: 2021 Investor Day
Enbridge Inc. TSX/NYSE: ENB 2021 Investor Day
Slide 2: Safety Moment
Safety Moment Building Covid-19 Evacuation Protocols Procedures 2
Slide 3: Agenda
Agenda Eastern Time Strategic Overview & Priorities Al Monaco 8:30 Q&A Al Monaco 9:05 Gas Distribution & Storage Cynthia Hansen 9:20 Gas Transmission Bill Yardley 9:40 Break 10:00 Liquids Pipelines Colin Gruending 10:10 Renewable Power Matthew Akman 10:30 Financial Outlook Vern Yu 10:50 Q&A Panel: A
Slide 4: 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 or the Company) with information about Enbridge and its subsidiaries and affiliates, including manag
Slide 5: 2021 Investor Day
Modernizing Systems and Sustainable North American Growing Renewables and Other Achieving Net Zero Energy Drives Exports Low-Carbon Platforms Al Monaco President & CEO 2021 Investor Day
Slide 6: Today's Approach
Today’s Approach Strategic Overview Enbridge Value Approach to Strategic Capital Proposition Energy Transition Priorities & Allocation Growth Outlook Business Unit & Financial Review Low-Carbon Financial Key Priorities Growth Hopper Opportunities Policies & 3-Year Outlook 6
Slide 7: Mainline Update
Mainline Update Mainline Capacity During CTS1 Two Attractive Options Path Forward (mmbpd) 1) Incentive Tolling Arrangement: • Re-engaging with ~3.1 industry • Aligned with customers • Pursuing both options ~2 • Incentivized to optimize system in parallel • Premium return • Interim tolls remain 1.1mm
Slide 8: Financial Highlights
Financial Highlights 2021 2022 3 Year Outlook Guidance Guidance (to 2024) Adjusted EBITDA1 $13.9-$14.3B $15.0-$15.6B n/a 5 to 7% CAGR DCF per share1 $4.70-$5.00 $5.20-$5.50 No change Up to level of medium-term $3.34 $3.44 Dividend (3% growth) (3% growth) DCF/share growth No change ~$10B ~$4B $9B Org
Slide 9: New Project Highlights
New Project Highlights ~$1.0B sanctioned in $0.9B Calvados offshore wind first 9 months of 2021 $0.1B solar self-power investments $0.1B Flanagan South expansion (completed in Q4) $0.3B Dawn-to-Corunna expansion $1.1B $0.5B expansion of Valley Crossing, pending liquefaction FID1 of New Projects Adva
Slide 10: Enbridge Footprint
Enbridge Footprint Ireland Gas ~2 Tcf of natural gas UK Distribution delivered; ~3.8 MM customers Germany Gas 20% of natural gas consumed France Transmission in US; ~10% of LNG exports 25% of N. America’s crude Liquids oil transported & exported Vancouver 1.8 GW1 of contracted Boston Power renewable
Slide 11: Low-Risk Commercial Profile
Low-Risk Commercial Profile 40+ Diversified Highly Predictable 98% Industry-Leading Sources of Cash Flow Utility-Like Cash Flows Cost-of-service/ Contracted Financial Risk Profile 4% Power (Power Price Agreements) 12% Gas Distribution (Cost-of-service) 4% Canadian Gas Transmission (Cost-of-service/T
Slide 12: Delivering on ESG Commitments
Delivering on ESG Commitments Industry Leading Safety Emissions Reductions Diversify our Workforce3 (US Pipelines from 2017 to 20191) (emissions in MtCO2e) (Representation as at June 30, 2021) 100 18 50% Current 3 Total Barrels Released / Billion Barrel Miles Total Inspection Miles / Total Miles of
Slide 13: ENB – A Differentiated Service Provider
ENB – A Differentiated Service Provider Today’s Success Factors… … in Action Line 3 Replacement Ingleside Export Facility ESG Leadership Net-zero emissions & diversity goals Undeveloped Terminal Land World-Class Execution $36B into service since 2017 Low-Carbon Capabilities • >300 route modification
Slide 14: Surfacing Shareholder Value
Surfacing Shareholder Value Revenue & Productivity Asset Sales & Monetization Capital Efficiency Optimization EV/EBITDA Recent Projects Multiple $5.7 ~$9B 400kbpd $6 $5 Asset sales DRA Expansion <3x of zero-capital Mainline since 2018 $4 Gas Pipe optimizations ~6x $3 Compression $2.1 Announced $1.2B
Slide 15: Surfacing Shareholder Value
Surfacing Shareholder Value 7.0x Improving Asset Returns 6.5x Balance Sheet Strength Simplified Structure (ROCE1) (Debt/EBITDA) ~8% 6.0x ~6.5% 5.5x Target Range: 4.5x – 5.0x1 5.0x 4.5x Sponsored Vehicle Buy In 4.0x 3.5x SEP EEP EEQ ENF 3.0x 2018 2019 2020 2021e 2022e 2023e 2024e 2017 2018 2019 2020
Slide 16: A Proven Investment Track Record
A Proven Investment Track Record Significant EBITDA1 Growth Superior Dividend Growth Industry Leading TSR2 (Billion, CAD) (Dividend per Share) (since 2008) $15.0-15.6 $3.44 11.7% 11.0% 8.1% $0.66 $2.5 2008 2022e 2008 2022e Midstream S&P 500 Enbridge Peers Our approach has yielded superior growth and
Slide 17: Energy Fundamentals
Energy Fundamentals Global Demand Outlook1 N.A. Oil Exports2 N.A. LNG Exports2 (IEA Announced Pledges Scenario, Exajoules) STEPS2 (MMbpd) (Bcf/d) Biofuels SDS2 Wind & Solar >4.5 >20 Hydro Nuclear Gas ~3 Oil Coal ~7 2019 2050 2021 2030+ 2020 2030+ • 25%+ increase in global population • Abundant, low-
Slide 18: The Role of Conventional Energy
The Role of Conventional Energy Essential Reliable2 Affordable3 (IEA Announced Pledges Scenario) (Realized Capacity Factors) (Cost/MMBtu) Petrochemical1 Transport1 (MMbpd) (Exajoules) 94% $19 ~+20% ~+10% $16 Other Gas 57% 48% 39% 35% Liquids Hard 25% Oil to $4 Abate Today 2050 Today 2050 Gas Blue Gr
Slide 19: Lowering Emissions
Lowering Emissions Global Emissions Outlook1 Conventional Energy Emissions (Announced Pledges Scenario– Mt CO2 emissions reductions) 2020 2030 2035 2040 2045 2050 • Energy efficiency & -1,000 Reduce conservation efforts • Behaviour & Efficiency -3,000 • Low-Carbon Energies • Electrification • State-
Slide 20: Our Approach to Energy Transition
Our Approach to Energy Transition Conventional Investment Required Core Business Remain Critical (Cumulative global investment, USD Trillions)1 $10.0 Gas Transmission Liquids Pipelines Gas Distribution & Storage $5.0 170 MM 12 MMBPD 15 MM Gas Oil People served Refining capacity People served $0.0 20
Slide 21: Capitalizing on the Energy Transition
Capitalizing on the Energy Transition Conventional Core Growth Low-Carbon Growth Optimize / Exports Modernize Solar/ RNG H2 CCUS Expand Assets Wind Liquids 1 Pipelines Gas 1 Transmission Gas Distribution Renewable Power Embedded conventional and low-carbon growth opportunities across our businesses
Slide 22: Strategic Priorities
Strategic Priorities • Safety and Reliability Capitalize on Conventional Growth • ESG Leadership • Prioritize organic low-capital • Modernize existing assets • Strong Balance Sheet • Grow export connections (LNG & Crude Oil) • Disciplined Capital Allocation Grow Low-Carbon Platforms Over Time • Proj
Slide 23: Predictable Organic Growth
Predictable Organic Growth Executing on Secured Up to $6B/year of Organic Growth Potential Growth (2021-2024) Supplements 2022-2024, drives post-2024 growth $17B Gas Transmission Gas Distribution up to ~$2.0B/year up to ~$1.5B/year • System modernization • System modernization • Capital efficient ex
Slide 24: Low-Carbon Opportunities
Low-Carbon Opportunities Gas Distribution $0.5B Gas Transmission $0.5B Liquids Pipelines $0.5B through through through 2025 2025 2025 H2 Hydrogen CO2 Oil Sands & QUEBEC H2 Studies underway Fort Saskatchewan across system; CO2 Post-2025; CO2 H2 Multiple opportunities Multiple projects in ONTARIO in d
Slide 25: New Energies
New Energies Compelling Opportunity Set ENB’s Capabilities Advancing Low-Carbon Strategy through Strategic Partnerships RNG & Hydrogen Demand1 (EJ) Transportation & storage Wind/Solar RNG H2 CCUS assets operations Develop N.A. low-carbon solutions RNG across H2, RNG, CCUS, & Renewables Hydrogen 5 St
Slide 26: Capital Allocation Priorities
Capital Allocation Priorities Capital Allocation Drivers 1 Protect Balance Sheet • Preserve financial strength and flexibility 4.5x D/EBITDA2 5.0x • Ratable dividend increases up 2 Sustainable Return of Capital to medium-term DCF/s growth • Periodic share repurchases1 60% DCF1 payout 70% • Prioritiz
Slide 27: Strong Portfolio
Strong Portfolio Business Mix (2022e EBITDA by business unit) • Consistent low-risk profile • Significant operating synergies 26% Gas Transmission • Robust equity returns 58% • Increasing free cash flow generation 12% Gas Distribution • Diversified growth opportunity set Liquids Pipelines 4% Renewab
Slide 28: Investable Capacity
Investable Capacity ($ Billion) 2022e Adjusted EBITDA1 $15.0-$15.6 Less: Cash Requirements2 ~($4.5) Distributable Cash Flow1 ~$11B Less: Dividends ~($7.0) (~65% payout) Add: Annual Debt Capacity3 ~2.0 Investable Capacity $5-6B Expect to generate $5-6B of annual investable capacity (1) Adjusted EBITD
Slide 29: Capital Allocation Framework
Capital Allocation Framework ($5-6B of Annual Investable Capacity) High Priority Investments Deploy Incremental Capacity Core Drive Sustainable Long- Excess to Drive Additional Growth Allocation Term Growth Allocation and Value $3-4B • Enhance returns from existing ~$2B Other Organic Growth annually
Slide 30: Share Repurchase Program
Share Repurchase Program Criteria Up to $1.5B Commencing in Q1 20221 Balance sheet metrics & financial flexibility Open market purchases Assessment of investment alternatives Non-programmatic Fundamental value of shares Share repurchases are a benchmark for capital investment and support further DCF
Slide 31: Visible 3-Year Plan Outlook
Visible 3-Year Plan Outlook DCF/share1 Post-2024 Cash Flow Growth Drivers: 5-7% 1. Revenue inflators & productivity CAGR through enhancements Deploy 2024 Excess Revenue Execute Capacity 2. $3-4B of core capital allocation Secured Inflators & Capital Productivity Program 3. ~$2B of additional capital
Slide 32: Qs&A
Qs&A CENBRIDGE
Slide 33: Today's Speakers
Today’s Speakers Vern Yu Colin Gruending Cynthia Hansen Bill Yardley Matthew Akman EVP & CFO EVP & President LP EVP & President, GDS EVP & President, GTM SVP Strategy, 28 years 22 years 23 years 21 years Power & New Energy Technologies 6 years A deep bench of executive talent and continued emphasis
Slide 34: Cynthia Hansen
Cynthia Hansen EVP & President, Gas Distribution & Storage
Slide 35: Premier N. American Gas Utility
Premier N. American Gas Utility • Largest natural gas utility in North America by volume2 Thunder Bay ONTARIO • 3.8 million meter connections Montreal in Ontario Ottawa Sault Ste. Marie H2 • Up to $1.5 billion in organic growth Visible Franchise Customer Growth1 RNG annually ~3.8 TORONTO ~3.5 DAWN H
Slide 36: Growing our Utility Business
Growing our Utility Business Growing Regulated Expanding Storage Advancing Our Priorities in 2021 1 Assets 2 & Transmission Uninterrupted services during • Expand customer & community • Investing in regional pipeline & pandemic connections; Ongoing investment storage expansions, & local in system mo
Slide 37: Ontario Energy Fundamentals
Ontario Energy Fundamentals Population Growth1 Affordability Reliability MMs (Relative cost of heating an average (MW) home in Ontario) 20 84,261 18 16 66% Heating Oil 14 12 60% Propane 84,261 10 8 43% Electric 6 4 $1,107 24,706 2 Natural Gas2 0 Peak Natural Gas Peak Electricity 2020 2030e 2040e Dem
Slide 38: Utility Growth
Utility Growth Customer Growth Utility Modernization Rate Base Growth (in $B’s) 15 OTTAWA 10 Announced Community Expansions 5 TORONTO 0 2012 2022e • ~45k new customers annually • Modernizing systems ensures • Steady and predictable • 27 new community connections reliability and positions for low- an
Slide 39: Storage and Transmission Growth
Storage and Transmission Growth ONTARIO Projects ISD Capital ($B) Growth projects Replacement projects Dawn to Corunna New Replacement (secured) 2023 $0.3 Dawn to Corunna TORONTO Project | 2023 Panhandle Regional NEW YORK Expansion 2023 $0.3 MICHIGAN Storage Enhancement Projects | 2022 & 2024 2022 D
Slide 40: Energy Efficiency Strategy
Energy Efficiency Strategy Demand Side Management Integrated Resource Plan Cumulative saved CO2 emissions Solar Panels provide Hybrid power requirement Billions m3 30 Heating 25 ~55 Pilot Supply from MtCO2e 20 emissions natural gas reduced1 during peak 15 demands Smart EV 10 Charger 5 0 Storage Batt
Slide 41: Low-Carbon Fuels Create Opportunity
Low-Carbon Fuels Create Opportunity Energy Investment Opportunities efficiency programs for our customers Hydrogen Natural Gas Production Distribution Renewable Natural Gas System Production Biogas Electrolyzer Surplus electricity Hydrogen is Organic waste is H2 and RNG are Lower carbon is used to s
Slide 42: Low-Carbon Growth - RNG
Low-Carbon Growth - RNG Expanding Utility Portfolio Strategic Partnership Capital Outlook $MMs Enbridge 800 ~$300 ONTARIO Gas targeting ONTARIO MM Disco Road | 2023 RNG OTTAWA secured & 5%+ in advanced RNG use by Stanton Farms | 2021 RNG stages 600 2030 Project London | 2022 RNG TORONTO StormFisher
Slide 43: Low-Carbon Growth – Hydrogen
Low-Carbon Growth – Hydrogen ONTARIO QUEBEC • First N.A. utility scale Power to Gatineau Blending 2025 H2 Gas (PtG) facility (2.5MW) Montreal Sault Ste. Marie Ottawa • Grid balancing & energy storage • 280+ tonnes of H2 produced Markham H2 Blending - 2021 H2 Markham PtG (2018) Markham PtG Plant - 20
Slide 44: Carbon Capture Potential
Carbon Capture Potential Investment Opportunity: ONTARIO $2B+ • ~20 MtCO2e of potential emissions abatement of potential opportunity annually in SW Ontario1 out to 2030 • Over 700 MtCO2e of storage potential in Ontario TORONTO • Potential for combination with blue hydrogen hub Hamilton NEW YORK What
Slide 45: Summary
Summary Opportunities in Development Growing • ~$4B of investment planned Gas Distribution Regulated Assets through 2025; $1B ongoing Up to $1.5B annually Expanding Storage • ~$1B of Dawn hub & pipeline & Transportation expansions planned Driving Energy • Investing in integrated Efficiencies energy
Slide 46: Bill Yardley
Bill Yardley President & Executive Vice President, Gas Transmission & Midstream
Slide 47: Connected to the Best Markets
Connected to the Best Markets 7 bcfd Markets with >170MM people served Connected to prolific, long-lived supply Long-term contracts & cost of service Current Demand1 Industrial 16 Power bcfd Residential 18 Growing domestic & export demand Commercial bcfd Other Embedded low-carbon investment potentia
Slide 48: Growing the Gas Transmission Business
Growing the Gas Transmission Business Meeting Residential & Supporting Electric Advancing Our Priorities in 2021 1 Commercial Demand 2 Generation Growth Record peak days • Lower emissions, improve • Differentiated natural gas Favorable rate settlements performance & system baseload supply aligned wi
Slide 49: Critical Energy Infrastructure
Critical Energy Infrastructure Affordable Demand-Pull Essential Base Load Annual Heating Bill2 Reservation Revenue National Grid Resource Plan1 (% more than natural gas) (Percentage of forecasted revenues for 12 months ended 12/31/21) 3,750 Backcasted Forecasted 3,500 Relative cost 313% Electric 100
Slide 50: System Modernization
System Modernization Integrity Investments Upgrading Facilities Rate Proceedings 1,188 >25% ~$3.0B 2020 2021 2022 anomaly digs lower emissions executed in at replaced of capital through 2025 2021 compressors Texas East Eastern Texas Eastern Tennessee Algonquin Alliance U.S. New Maritimes and • Filed
Slide 51: N. American Power Demand
N. American Power Demand 84GW1+ of Planned Coal Plant Retirements Along our Systems by 2030 Ridgeline Expansion Opportunity Coal-fired plant Texas Eastern Compressor Station (existing) Ridgeline $4.0B+ Oil-fired plant Compressor Station (potential) Nashville Expansion Growth capital in development C
Slide 52: Advancing USGC Export Strategy
Advancing USGC Export Strategy USGC Export Volumes3 Cameron Extension Venice Extension Served by Enbridge facilities LNG • Connect to New Calcasieu Pass LNG • Connect to Plaquemines LNG (bcf) supports displacing 7 • $0.2B Texas Eastern • $0.4B Texas Eastern 2,000 GW of expansion LA expansion global
Slide 53: Western Canadian Opportunities
Western Canadian Opportunities $4B+ Capital Opportunities Under Development Several expansion & extension opportunities under development LNG and Terminal • $2.5B expansion of T-South to serve Woodfibre Expansion opportunities BC Opportunities LNG and lower mainland demand T-North Prince Rupert • Ad
Slide 54: Low-Carbon Optionality
Low-Carbon Optionality Renewable Serving > 150 LDC Natural Gas Hydrogen Carbon Capture customers including: • In-franchise RNG • Green & blue H2 • 20% of U.S. source of production facilities opportunities emissions are within 10 • Exploring H2 and RNG to lower and interconnections • Salt dome storag
Slide 55: Summary
Summary Opportunities in Development Meeting Residential & • ~$3B of modernization through Gas Commercial Demand 2025; $0.5B to $1.0B ongoing Transmission Up to ~$2.0B/year Supporting Electric • $4B+ in development to support Generation Growth coal and nuclear retirements Expanding LNG Export • $6B+
Slide 56: Break
CENBRIDGE Bridge to a Cleaner Energy Future Fe Break 10 Minutes
Slide 57: Colin Gruending
Colin Gruending Executive Vice President & President Liquids Pipelines
Slide 58: Premier Liquids Pipeline Franchise
Premier Liquids Pipeline Franchise Connecting strongest markets to …Generating highly predictable key N.A. supply basins1 … long-term cash flows Transports WCSB 67% Cost of Incentive of Canadian Service/ Tolling5 crude exports2 Settlements Lakehead 0.3 MMbpd 24% Canadian Quebec Access to Mainline 0.
Slide 59: Mainline Tolling - Current Revenue Model
Mainline Tolling - Current Revenue Model International Joint Toll Framework $5.47 Interim Heavy Toll – Hardisty to Chicago Canadian Toll Subject to ~1/3rd under negotiation with shippers – Negotiation incentive tolling or cost of service L3R Surcharge (US & Cdn) 15-year contract ~2/3rd subject to ex
Slide 60: Mainline Tolling Alternatives
Mainline Tolling Alternatives Industry Value Drivers Two Attractive Paths Forward Maximizing Deliveries High system reliability Incentive Tolling Cost of Service Arrangement Model Throughput optimizations Potential for continuing Less incentive for low capital Incremental egress win-win alignment op
Slide 61: Illustrative Path Forward - Timeline
Illustrative Path Forward - Timeline Negotiated Settlement Path CER Review of Mid 2023 1 Consultation with Shippers & Negotiations with Industry File Negotiated Settlement Negotiated Settlement Settlement Framework in Place Assess status of Settlement Negotiations Contested Settlement Path (Cost of
Slide 62: Crude Oil Delivery Is Essential
Crude Oil Delivery Is Essential Critical to Meeting Petrochemical, Industrial Millions of Everyday Products and Transportation Energy Requirements Depend on Crude Oil Oil (liquids) demand1 (MMb/d) Electronics Pharmaceuticals Sporting equipment Appliances Hard to Petrochemicals1 Abate (MMb/d) Industr
Slide 63: Capitalizing on NA Energy Competitiveness
Capitalizing on NA Energy Competitiveness Key Enbridge Supply Basins1 Responsibly Developed Supply Competitive N.A. Refinery Demand3 (kbpd) Nelson Complexity3 Billion barrels ESG Scores2 Higher the Nelson complexity, the better positioned to compete 7,000 500 100 14 ENB Connected Refineries – U.S. G
Slide 64: US Gulf Coast Fundamentals Strong
US Gulf Coast Fundamentals Strong Substantial Light and Heavy Opportunity for Cdn Heavy Oil Growing USGC Exports1 Crude Oil Refining Markets Market Share Gains1 MMbpd MMbpd >4.5 Canadian Heavy Other Foreign Heavy 2,500 Texas Louisiana 2,000 Heavy 1,500 ~3 ~2.5 1,000 Light MMbpd1 ~6.0 500 MMbpd1 USGC
Slide 65: Growing the LP Business
Growing the LP Business Capitalize on Operating Efficiently Expanding Advancing Our Priorities in 2021 1 Leverage (Zero-Capital) 2 System ~94% Mainline utilization • Optimize crude flows across all • Low capital requirement projects systems and markets • Drag reducing agent, additional $5.6B placed
Slide 66: System Expansions: WCSB to PADD II
System Expansions: WCSB to PADD II WCSB Egress Expansions • Regional Oilsands +150 +350 350 kbpd available capacity kbpd kbpd Regional ML Expansion 150 kbpd capital efficient expansions (medium term) Expansion Potential Potential • Mainline Line 3 Replacement Southern Access Expansion (to 1.2 mmbpd)
Slide 67: System Expansions: PADD II to USGC
System Expansions: PADD II to USGC USGC Heavy Crude Market Access Up to • Flanagan South Expansions $1.5B • 90 kbpd DRA expansion (US $65 MM) New of near term organic growth • 160 kbpd pump stations potential • Terminals • Enbridge Houston Oil Terminal (EHOT) • Sea Port Oil Terminal (SPOT) Houston S
Slide 68: U.S. Gulf Coast Light Oil Strategy
U.S. Gulf Coast Light Oil Strategy EIEC Growth Initiatives New Targeting Seaway • Crude Storage & Loading ETCOP Net Zero EIEC Facility ‒ Contract 600 kbpd of existing loading capacity Emissions ‒ Up to 1 mmbls export expansion (Suezmax) Gray Oak ‒ Up to 5.5 mmbls of permitted crude storage ~$1B • So
Slide 69: Low-Carbon Strategy
Low-Carbon Strategy Well Positioned for Success N. American policy increasingly Solar self Solar power driving supporting CCUS investment Self Power CCUS Scope 2 Emissions United States In house development lower & execution • 45Q production tax credit – Proposed increase to $85 per tonne from $50 C
Slide 70: Advancing Low-Carbon Opportunities
Advancing Low-Carbon Opportunities Edmonton Industrial $2B+ Hub and Oilsands region of medium term Targeting organic growth • MoU with Capital Power New ~100 Mt/a of CO2 potential 3-10 MtCO2e to develop open access hub emmissions1 CCS potential – Near Wabamun AB with Capital Power • Discussions with
Slide 71: Summary
Summary Opportunities in Development Capitalize on Operating • Execute on continued Liquids Pipelines Leverage (Zero Capital) productivity improvements Up to $1.0B/year Capital Efficient • $2.5B+ of low cost mainline and Expansions market access expansions Grow US Gulf Coast • $2.5B+ of export infra
Slide 72: Matthew Akman
Matthew Akman Senior Vice President Strategy, Power and New Energy Technologies
Slide 73: Creating Value in Low-Carbon Infrastructure
Creating Value in Low-Carbon Infrastructure Our scale and experience is a competitive advantage • Disciplined capital allocation and recycling Renewable Asset Portfolio (Gross GW)1 48 assets • Pursue accretive risk 10 in operation and adjusted returns under construction 8 • Long term power 6 Existin
Slide 74: Growing the Renewable Power Business
Growing the Renewable Power Business Expanding Onshore Growing European Advancing Our Priorities in 2021 1 Footprint 2 Offshore Wind Approved six behind-the-meter solar self-power projects New • Improving asset efficiency & • Executing secured growth instilling rigorous cost Moving forward on PGL ma
Slide 75: Competitive Positioning
Competitive Positioning Industry Trends Enbridge Positioning • Aging legacy fleets Established asset management and integrity processes • Permitting process elongated World class health and safety programs • Transmission interconnection queues Deep permitting and stakeholder capabilities • Supply ch
Slide 76: Our Renewable Power Operating Capabilities
Our Renewable Power Operating Capabilities • 20 years of power generation experience • Employing technologies to improve asset performance (de-icing, Lidar, anti-reflective) • Centralized control center for assets we operate • Balanced mix of 3rd party O&M1 and self operations to mitigate risk • Dev
Slide 77: Major Offshore Wind Construction Program
Major Offshore Wind Construction Program Saint Nazaire | $0.9B1 Secured Offshore Wind Growth 480 MW (122 MW net) (Gross GW) • 45 of 80 foundations installed2 2.5 • First power in late 2022 2.4 2 (0.6 net) Fécamp | $0.7B1 497 MW (89MW net) 1.5 • Foundation fabrication underway • On track for 2023 COD
Slide 78: Offshore Wind Development
Offshore Wind Development ScotWind | up to 4.0 GW1 • Investing earlier in development cycle Offshore Wind • Well positioned to capture UK ~55 Opportunity Set3 our share of future growth GW ~98 GW • Targeting jurisdictions with: Dunkirk | 600 MW1 Spain – Large scale projects REX2 | up to 1.2 GW1 Fran
Slide 79: Floating Offshore Wind
Floating Offshore Wind 1st European Near Term Potential TLP2 floating Opportunity Set1 Provence wind facility in France (GW) • 750MW’s of joint development Grand 9.3 GW potential with EDF New Large – Moving forward with Provence Grand Other Large; secured project financing Partnership – Prequalified
Slide 80: Onshore Behind-the-Meter Strategy
Onshore Behind-the-Meter Strategy $0.3B of Solar Self Power Projects in Execution • Developing 300 MW of opportunities across our systems Alberta LP Phase II New • Up to $1.0B in investment opportunities Solar One Floodwood, MN 2023 10.5 MW Deer River, MN 2023 • Targeting low double digit returns Ca
Slide 81: Onshore Front of the Meter Strategy
Onshore Front of the Meter Strategy • Evaluated asset footprint for suitable utility scale projects Ingleside Energy Center Undeveloped • Co-locate up to 60MW of solar • >1GW of projects in development Terminal power on available land Land • Leverage pipeline power load – 6MW of self-power requireme
Slide 82: Summary
Summary Opportunities in Development • Up to $1B in behind the meter Renewable Expanding investments in near-term; $0.3B Power Onshore in execution up to ~$1.0B/year Footprint • ~$2.5B of potential front of the meter opportunities Growing • ~$2.6B of offshore wind in construction through 2024 Europe
Slide 83: Vern Yu
Vern Yu Executive Vice President & Chief Financial Officer
Slide 84: 2021 Reflections
2021 Reflections Systems Highly Utilized Visible Capital Program (deliveries as a % of 3-year avg.) Placed Into 2021 Projects Service Developments ~103%2 ~105%3 ~101%1 Liquids • Line 3 Replacement • 90kbpd FSP Expansion 100 % • Southern Access • Capital Power MoU Pipelines • Ingleside Energy Center
Slide 85: Big Picture
Big Picture Diversified Asset Base1 Predictable Cash Flows Financial Strength 98% BBB+ Gas Transmission Credit Liquids Pipelines ~$180B Gas rating Enterprise Distribution Value2 Renewables & Contracted or cost-of-service Across all four rating agencies New Energies Visible Organic Growth3 Discipline
Slide 86: Financial Strength and Flexibility
Financial Strength and Flexibility 6.0x 5.5x Debt/EBITDA Financial Parameters 2022e Target Target Range: 4.5x – 5.0x1 Debt to EBITDA ≤4.7 4.5 – 5.0x 5.0x Dividend Payout of DCF/s ~65% 60-70% 4.5x % of customers with Substantially all 4.0x Investment Grade Rating1 ~95% investment grade 3.5x Self-fund
Slide 87: Our Capital Allocation Track Record
Our Capital Allocation Track Record Actions since 2017 Capital Simplification Organic Asset Dividend2 Recycling Growth Acquistions1 $9 $13 $36 $8 $36 billion billion billion billion billion ~12x EBITDA; Increased Generate low risk ~9x EBITDA 7% CAGR; Non-core asset existing asset & contracted multip
Slide 88: Surfacing Shareholder Value
Surfacing Shareholder Value Centralized Operations Extended Cash Strengthened Low-Risk & Project Execution Taxability Horizon1 Business Model Achieved cost reductions ($ millions) Value of tax loss carry forward ($ billions) Business risk rating by Credit Agency $14 ~$1.2B Low Business Risk $12 $10
Slide 89: Disciplined Capital Allocation
Disciplined Capital Allocation 1 Protect Balance Sheet • Preserve financial strength and flexibility • Ratable dividend increases up to medium-term DCF/s growth 2 Sustainable Return of Capital • Periodic share repurchases1 • Prioritize low-capital intensity & utility-like growth 3 Further Organic Gr
Slide 90: 2022+ Capital Allocation
2022+ Capital Allocation Base Return of Capital Annual Investable Capacity $~11B (~65% of DCF) Excess Allocation • Other organic growth Select • Share repurchases $~7B+ best option $5-6B • Asset acquisitions • Deleveraging ~$2B Core Allocation • Core growth allocation $3-4B • Low-capital and utility
Slide 91: Capital Allocation Preferences
Capital Allocation Preferences CORE ALLOCATION EXCESS ALLOCATION ~$3-4B/year ~$2B/year Other Zero Capital Utility-Like Organic Share Asset Pay Down Capital Efficient Capital Growth1 Repurchases Acquisitions Further Debt Organic Capital Equity IRR: Infinite 15%+ 9-14% 10%+ Enhance Low capital Regulat
Slide 92: Mature Investment Framework
Mature Investment Framework Further Capital Allocation Organic Share Repurchases Asset Acquisition Debt Repayment Choices Growth • Strategy • Commercial • Long term resiliency Initial Screen • Fundamentals • Executability • Permitting & • ESG • Country risk stakeholder risks • Project economics • Te
Slide 93: Share Repurchase Program
Share Repurchase Program Criteria Up to $1.5B Commencing in Q1 20221 Balance sheet metrics & financial flexibility Open market purchases Assessment of investment alternatives Non-programmatic Fundamental value of shares Share repurchases are a benchmark for capital investment and support further DCF
Slide 94: 2022 Planning Parameters
2022 Planning Parameters Base Business: • Revenue inflators and productivity enhancements • Assumes robust utilization across our systems • Includes provision for final Mainline tolls • FX Rate of $1.25 CAD/USD1 Capital Projects: • Annualized impact of $14B2 placed into service in 2021 • Assumes sec
Slide 95: 2022 Financial Guidance
2022 Financial Guidance 27th Adjusted EBITDA1 DCF/share1 Dividends/share consecutive annual ($B) $5.20 - $5.50 increase $15.0 - $15.6 $13.9 - $14.3 $4.70 - $5.00 $3.44 $3.34 2020 2021e 2022e 2020 2021e 2022e 2020 2021e 2022e Annual growth across all metrics reflects strong business performance and c
Slide 96: 2022 EBITDA Guidance
2022 EBITDA Guidance ($ Millions) 2022e Growth Drivers vs. 2021 Mainline volume recovery; Avg. 2.95 mmbpd2 Liquids Pipelines ~8,800 Full year of Line 3R Surcharge Ingleside Energy Center Acquisition Gas Transmission ~4,000 New assets placed into service Rate escalation, new customer adds,
Slide 97: 2022 DCF Guidance
2022 DCF Guidance ($ Millions) 2022e Adjusted EBITDA1 (from prior slide) $15,000-$15,600 Quarterly Profile EBITDA & DCF3 Maintenance Capital ~(1,000) Financing Costs ~(3,300) Current Income Taxes2 ~(450) Distributions to Non-controlling Interests ~(300) Cash Distributions in Excess of Equity Earning
Slide 98: Strengthening Our Base Business
Strengthening Our Base Business Regulatory Update Built-in Revenue Cost and Productivity Escalators1 Improvements Texas Eastern • + ~C$125M EBITDA (% of EBITDA) Algonquin • + ~C$25M EBITDA Regulatory recovery • + ~C$10M EBITDA mechanisms BC Pipeline East Tennessee • + ~C$10M EBITDA ~15% Alliance U.S
Slide 99: Secured Growth Through 2024
Secured Growth Through 2024 Commercial Expected Project Framework ISD Capital ($B) Line 3R – U.S. Portion Contracted In Service 4.0 USD Executing on Secured Program Liquids Pipelines Southern Access Expansion COS In Service 0.5 USD Other Expansions TOP In Service 0.2 USD $17B Modernization Program C
Slide 100: Equity Self-Funded Model
Equity Self-Funded Model 2022 Funding Plan Industry-Leading Credit Ratings ($B) Reaffirmed rating on: ~$6.5 ~$7 Debt Maturities Baa1 June 2021 Debt Funding Stable BBB+ ~$4.5 Stable Dec 2020 Secured Growth ~$5 Capital Spend Internal Cash Flow1 BBB High July 2021 ~$1 Maintenance Stable Uses Sources BB
Slide 101: Visible 3-Year Plan Outlook
Visible 3-Year Plan Outlook DCF/share1 5-7% • Optimize asset return CAGR through Deploy 2024 – Revenue inflators Excess Execute Capacity Revenue Inflators & Secured – Productivity enhancements Capital Productivity Program Enhancements • Deliver secured organic growth • Deploy excess investable capac
Slide 102: Qs&A
Qs&A CENBRIDGE
Slide 103: Value Proposition
Value Proposition • Resiliency and longevity of cash flows <4.7x debt to EBITDA; BBB+ credit rating • ESG Leadership Up to $6B of annual organic capital investments • Strong balance sheet Highly visible 5-7% • Growing investable free cash flow DCF/s growth through 2024 • Solid conventional long-term