Slide 1: Q3 2022 Financial Results & Business Update
Al Monaco Vern Yu President & EVP, Corporate Development & Q3 2022 Financial Results & Business Update Chief Executive Officer Chief Financial Officer
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 or the Company) with information about Enbridge and its subsidiaries and affiliates, including manag
Slide 3: Agenda
Agenda • Q3 Highlights • Business Update • Financial Performance & Outlook 3
Slide 4: Q3 Highlights
Q3 Highlights • Focused on operational safety and integrity programs Operations • High capacity utilization across the business • Strong Q3 results; On track to achieve 2022 EBITDA & DCF/share guidance Financial • Bolstering balance sheet flexibility • On track for $3.8B to enter service in 2022 Exe
Slide 5: Our Dual-Pronged Strategy
Our Dual-Pronged Strategy Core Growth Low-Carbon Growth Optimize / Exports Modernize Solar/ RNG1 H2 CCS2 Expand Assets Wind Liquids 3 Pipelines Gas 3 Transmission Gas Distribution Renewable Power Our strategies focus on conventional and low-carbon growth opportunities (1) RNG: Renewable Natural Gas
Slide 6: Business Update
Business Update Gas Gas Distribution Renewables Liquids Transmission & Storage Pipelines 20% of natural gas consumed ~2 Tcf of natural gas delivered; 2.2 GW1 renewable energy ~30% of N. America’s oil in the U.S. Serving 75% of Ontarians serving ~900,000 homes transported and exported • Advancing ~$1
Slide 7: Global Natural Gas Fundamentals
Global Natural Gas Fundamentals Growing Global Demand1 Growing N.A. LNG Exports1 (Bcf/d) (Bcf/d) • Demand growth driven by security ~420 >30 benefits, reliability of supply, and lower ~385 emissions • Essential fuel for quality of life; stable part of the supply mix well into the future • North Amer
Slide 8: Enbridge's Natural Gas Strategy
Enbridge's Natural Gas Strategy Potential Enbridge T-North LNG Export Volumes4 (Bcf/d) T-South 10 ~9 Bcf/d ENB LNG export market Maritimes & share4 up to Northeast Squamish CS-8A Alliance 1. Venice Extension • Plaquemines LNG USGC Market Pull • TETCO expansion 8 ~30% • US$0.4B TETCO expansion • Gree
Slide 9: T-South Pipeline Expansion
T-South Pipeline Expansion Newly Secured Organic Project Enbridge B.C. Pipeline System • Successful binding open season WCGT T-North Fort Taylor • Expanding system by 300 MMcf/d STATION 2 St.John Prince Rupert CS-2B PTP CS-3 Dawson – Looping & compression LNG Canada McLeod Lake Creek Coastal Gaslink
Slide 10: T-North Expansions
T-North Expansions Enbridge B.C. Pipeline System Aspen Point Program (Sanctioned Q2) • 535 MMcf/d expansion AK BC – Pipeline looping and new compression WCGT N-4 • ~$1.2B of capital under cost-of-service rates Ksi Lisims T-North LNG N-5 Fort St.John Taylor T-North 2028 Expansion CS-2B STATION 2 CS-1
Slide 11: Liquids Update
Liquids Update Mainline Tolling +500 kbpd1 • Two commercial options: – Incentive Tolling Settlement – Cost of Service +350 kbpd • Negotiations continuing • Expansion optionality once a tolling Express framework is determined +60 kbpd Casper USGC Strategy Build Out In development • 2 MMbbl storage ex
Slide 12: Growing Renewable Opportunities in N.A.
Growing Renewable Opportunities in N.A. Favorable Legislation1 Renewable Capacity Growth2 Cumulative Renewable Shortfall1 (U.S. GW capacity buildout 2021 to 2050) (GW) 70 2 500 Wind Solar ~1,500 GW 2 250 Growth 60 2 000 50 1 750 1 500 40 1 250 30 1 000 No target 750 20 500 Completion of Target 10 25
Slide 13: Accelerating N.A. Onshore Renewables Strategy
Accelerating N.A. Onshore Renewables Strategy TGE Transaction N.A. Onshore Portfolio • Completed acquisition of Tri Global Energy (TGE) (Net GW) >3x potential – Purchase price: US$270MM growth in N.A. renewable portfolio • 3.9 GW of projects conditionally sold to 3rd parties Pre-Acquisition Portfoli
Slide 14: Growing Renewable Platform
Growing Renewable Platform N. American and European Renewable Asset Portfolio (Net GW) 8 ~5 ~7 • >$8 billion invested 47 assets in renewable energy in operation and 6 under construction since 2002 • Full value chain Existing 4 operations in capabilities 4 countries1 0.4 • ~7 GW development 2 1.8 por
Slide 15: Optimizing Asset Portfolio
Optimizing Asset Portfolio Enbridge/Phillips 66 Joint Venture Increased Interest in Gray Oak Closed August 17, 2022 In development Permian +2MMbls of supply growth Houston through 2040 Indirect Economic Interests1: Pre Post SPOT EHOT Freeport Gray Oak Pipeline: • 850-mile oil pipeline 28.25% 13.20%
Slide 16: Regional Oilsands Indigenous Partnership
Regional Oilsands Indigenous Partnership Regional Oil Sands Partnership Overview Norealis Athabasca Terminal Terminal Cheecham Terminal WBE-APT (Line 45) Athabasca (Line 19) Norlite Diluent (Line 74) Sunday Creek Waupisoo (Line 18) Terminal Kirby Lake Terminal Woodland (Line 49) Wood Buffalo (Line 7
Slide 17: Mitigating Market Risks
Mitigating Market Risks Risks Mitigations Connected to top tier demand-pull markets Recession 98% of cash flows underpinned by COS1 or contractual agreements Energy security concerns driving new investment opportunities 80% of EBITDA has built-in inflation protections (with some lag) Inflation/Inter
Slide 18: Q3 Financial Results
Q3 Financial Results Q3 YTD Quarterly Drivers ($ Millions, except per share amounts) 2022 2021 YoY 2022 2021 YoY Liquids Pipelines 2,269 1,898 6,581 5,623 Operational performance Gas Transmission & Midstream 1,158 986 3,300 2,928 Gas Distribution & Storage 293 296 1,389 1,403 L3R2 in service & I
Slide 19: 2022 Financial Outlook
2022 Financial Outlook EBITDA Guidance1 DCF/share Guidance1 ($Billions) $5.20 – $5.50 Tailwinds/Headwinds $15.0 – $15.6 $4.96 to Full-Year Guidance $14.0 Strong operating performance & system utilization Stronger USD Energy Services Higher power costs Rising interest rates 2021 2022e 2021 2022e On t
Slide 20: 2023 Tailwinds & Headwinds
2023 Tailwinds & Headwinds Utility customer growth & escalating rates Strong Gas Transmission rate increases & new capital in service Business Performance Energy Services transportation contract expiries Stronger USD Higher power costs Transitory Rising interest rates Headwinds Cash taxes Building o
Slide 21: Secured Organic Capital Program
Secured Organic Capital Program Project Expected ISD Capital ($B) Modernization Program 2022-2025 2.2 USD Other Expansions 2022-2025 0.5 USD Secured Capital ($ Billions by in service date) Venice Extension1 2023-2024 0.4 USD Gas Transmission $10.4 T-North Expansion (Aspen Point) 2026 1.2 CAD Woodfib
Slide 22: Capital Allocation Priorities Unchanged
Capital Allocation Priorities Unchanged 1 Protect Balance Sheet 2 Sustainable Return of Capital 3 Further Organic Growth $11B Of capital recycling $7B ~$8B Dividends paid in 2022 New secured growth ($2.8B since mid 2021) capital in 2022 BBB+ $1.5B $17B Credit rating across all Buyback program Secure
Slide 23: ESG Update
ESG Update Indigenous Reconciliation Journey: 2019 Canadian Line 3 Replacement Project: • ~$0.5B spend with Indigenous businesses and communities 2021 U.S. Line 3 Replacement Project: • ~$0.5B spend with Indigenous businesses and communities 2022 East-West Tie Line: • Up to 20% ownership by 6 Indige
Slide 24: CEO Transition / Enbridge Day
CEO Transition 2023 Financial Guidance Late-November, 2022 Al Monaco Greg Ebel Enbridge Day President & CEO Incoming Retiring end of 2022 President & CEO January 2023 2023 “Tomorrow Toronto, ON isNew on”York, NY March 1, 2023 March 2, 2023 24
Slide 25: Takeaways
Takeaways ENB well-positioned for all economic cycles Strategic Priorities: Extend Advancing two-pronged strategy of conventional Organic and low-carbon growth opportunities Growth Executing conventional and low-carbon growth Safety & Maintain ESG Operational Strong projects across the business Lead
Slide 26: Qs&A
Qs&A CENBRIDGE