Enbridge Inc. · TSX:ENB

Enbridge — Q4 2023 Earnings Presentation

18 slides from Enbridge's earnings presentation, Feb 9, 2024

  1. Slide 1: Fourth Quarter Update

    Fourth Quarter Update February 9, 2024 Greg Ebel President & CEO Pat Murray EVP & CFO

  2. 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

  3. Slide 3: Agenda

    Agenda • 2023 Recap • Value Proposition • Business Update • Financial Performance • Capital Allocation and Outlook 3

  4. Slide 4: 2023 Highlights

    2023 Highlights  Exceeded mid-point of 2023 EBITDA and DCF/share guidance Financial  Increased dividend for 29th consecutive year  Debt/EBITDA1 of 4.1x, comfortably below 4.5x – 5.0x target range  Leading safety performance across all business units Operations  High utilization of all systems 

  5. Slide 5: 2023 Financial Highlights

    2023 Financial Highlights Adjusted EBITDA1 DCF/share1 Debt/EBITDA1,2 +6% YoY +1% YoY 4.1X ($16.5B vs $15.5B) ($5.48 vs $5.42) (target 4.5x to 5.0x) Annual EBITDA increased 6%. DCF increased 1% including pre-funding dilution impact (1) Adjusted earnings before interest, taxes, depreciation and amorti

  6. Slide 6: Value Proposition

    Value Proposition Diversified Low-Risk Stability Pipeline & Utility-Like Earnings Strong Total Return Reliable Cash Flows & Strength Strong Balance Sheet 29 Years of Annual Consistency Dividend Increases ~5% Medium-Term Growth Growth Outlook Predictable Low-Risk Cash Flow Business Growth Lower-Carbo

  7. Slide 7: Low-Risk Cash Flow Profile

    Low-Risk Cash Flow Profile 98% of EBITDA generated from cost-of-service or contracted assets Predictable Results 18th >95% of customers are Financial Commodity Alberta COVID Consecutive Investment Grade2 Crisis Price Forest Year Achieving Guidance Collapse Fires of EBITDA has 80% inflation protectio

  8. Slide 8: Liquids Pipelines Highlights

    Regional Oil Sands Liquids Pipelines Highlights 3.1mmbpd Mainline Line 5 Highly Utilized Asset Portfolio • Record Mainline throughput in 2023 – 3.1mmbpd (Q4 3.2 mmbpd) Average Mainline Throughput • Record Gray Oak volumes in 2023 in 2023 DAPL • Record Ingleside exports in 2023 • Concluded an oversub

  9. Slide 9: Gas Transmission Highlights

    Gas Transmission Highlights Canadian Gas U.S. Gas Expanded RNG Transmission Update Transmission Update Portfolio Aitken TX Tres Ksi Lisims T-North Palacios LNG Creek Gas LNG Canada Storage Texas Sabine Cameron Plaquemines CGL Montney Eastern Pass LNG Cedar LNG LNG Basin LNG Calcasieu Freeport Pass L

  10. Slide 10: Gas Distribution Highlights

    Gas Distribution Highlights Enbridge Gas Inc. U.S. Natural Gas Utilities Acquisitions Funding Options • Added ~46,000 new customers in 2023 Hybrids3 / Asset Sales Bonds • $1.2 billion growth capital program added to $1.6 B • Capital recycling rate base $19B Equity $3.7B To date • DRIP4 Issuance To d

  11. Slide 11: Renewables Highlights

    Renewables Highlights European Offshore Wind North America Onshore R UK H CC CRR Germany RR R 2.5GW >3GW Fox Squirrel France Wind farms - onshore & offshore Gross Late-stage R Solar energy operations In operation generating development RR R R R RNG Under construction capacity opportunities C CNG Fue

  12. Slide 12: 2023 Financial Results

    2023 Financial Results Q4 YTD Guidance ($ Millions, except per share amounts) 2023 2022 2023 2022 4th Quarter Drivers Achieved even including Liquids Pipelines 2,393 2,327 9,543 8,908  Record fourth quarter impact of share Gas Transmission & Midstream 1,084 1,117 4,398 4,417 Mainline, Gray Oak issu

  13. Slide 13: 2024 Base Business Guidance

    2024 Base Business Guidance Adjusted EBITDA1,2 DCF/share1,2 Sensitivities & Assumptions ($B) $16.6 – • Guidance excludes impact of $5.40 – acquiring U.S. Gas Utilities1 $17.2 $5.80 $16.5 $15.5 $5.42 $5.48 • Mainline volumes of ~3.0mmbpd $14.0 $4.96 – TMX in-service end of Q1 2024 • Sale of Alliance

  14. Slide 14: Indicative EBITDA Impact as Gas Utilities Close

    Indicative EBITDA Impact as Gas Utilities Close 2024 Segmented EBITDA1 growth above the 2023 midpoint ~4.5% ($ millions) Base Business EBITDA  All 3 gas utilities acquisitions Growth expected to close in 2024 Gas Renewable Distribution Power E&O Gas & Storage $100 2024e Guidance  2024 is expected

  15. Slide 15: Secured Capital Program

    Secured Capital Program Project Expected ISD Capital ($B) Ingleside Phase VI (Storage) 2024 0.1 USD Liquids Pipelines Enbridge Houston Oil Terminal 2025 0.2 USD Executing on $24B Modernization Program Updated 2024-2027 2.7 USD Secured Program Venice Extension 2024 0.5 USD ~$16B Appalachia to Market

  16. Slide 16: Capital Allocation Priorities

    Capital Allocation Priorities • Preserve financial strength and flexibility Protect Balance • Ongoing capital recycling program Capital Allocation Drivers Sheet • Maintain leverage within 4.5x – 5.0x 4.0x D/EBITDA2 4.5x 5.0x → Target Range ← Sustainable • DCF payout range of 60-70% Actual 4.1x Adjus

  17. Slide 17: First Choice Investment / Upcoming Events

    First Choice Investment Another successful year of operational and financial performance in 2023 Announced once-in-a-generation acquisition Upcoming of three premier U.S. gas utilities Events Resilient low-risk business model supported by scale, diversification, and high-quality cash flows Balance s

  18. Slide 18: Enbridge

    ENBRIDGE

Enbridge — Q4 2023 Earnings Presentation on 6ix