Slide 1: Q2 2022 Financial Results & Business Update
Al Monaco Vern Yu President & EVP, Corporate Development & Q2 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 • Mid-Year Priorities Check-in • Business Update • Financial Results & Outlook • ESG Performance Accelerating Our Natural Gas Strategy 3
Slide 4: Enbridge's Two-Pronged Strategy
Enbridge’s Two-Pronged Strategy Global Demand & Supply Outlook1 (IEA Announced Pledges Scenario, Exajoules) STEPS2 Conventional Growth • Optimize existing capacity and throughput Biofuels • Expand and modernize assets NZE2 • Develop export markets Wind & Solar Hydro • Accelerate natural gas investme
Slide 5: Mid-Year Priorities Check In
Mid-Year Priorities Check In Safely Running • Strong safety performance across the company our systems Serving • Record gas pipeline delivery days & strong renewable performance Customers Well • Successful re-contracting of Alliance and settlement in principle on TETCO1 rate filing New Delivering St
Slide 6: Business Update
Business Update Liquids Gas Gas Distribution Renewables Pipelines Transmission & Storage 30% of N. America’s oil 20% of natural gas consumed ~2 Tcf of natural gas delivered; 2.2 GW3 renewable energy transported and exported in the U.S. Serving 75% of Ontarians serving ~900,000 homes • Mainline volum
Slide 7: Oil Fundamentals Improving
Oil Fundamentals Improving Supply Robust N.A. refinery demand1 WCSB ~93% ENB Strategy Implications utilization WCSB 40 30 3 Year Average Cushing Supports mainline utilization 20 50 3 Year Average 10 40 0 Inventories 30 20 Increase in Canadian Long Haul SPR2 10 0 800 3 Year Average to USGC Inventor
Slide 8: Liquids Mainline Commercial Update
Liquids Mainline Commercial Update Mainline Negotiation Timeline Dec 2021 Mid 2022 Late 2022 Mid 2023 Late 2023 Stakeholder Consultation, Information Sharing & Shipper Negotiation Evaluate best path forward 1) Incentive Tolling Option Mid-2023: File Negotiated CER1 Review framework Settlement to tak
Slide 9: Enbridge LNG Positioning & Strategy
Enbridge LNG Positioning & Strategy Growing N.A. LNG1 Exports Potential Enbridge • Strategic positioning (Bcf/d) LNG Export Volumes2 (Bcf/d) – Large scale integrated system ~9 Bcf/d – Cost competitive >30 10 – Last mile demand pull – Connected to low-cost supply 8 Rio Grande3 Under Precedent • Lever
Slide 10: USGC LNG Position and Strategy
USGC LNG Position and Strategy USGC Market Pull • TETCO expansion • Strong incumbent network • Greenfield pipeline 1. Venice Extension1 • New connections • Plaquemines LNG TX • Visible organic growth • US$0.4B TETCO expansion • Reached positive FID2 New Texas Haynesville Basin – Plaquemines LNG in e
Slide 11: T-North Pipeline Expansions – Secured Project
T-North Pipeline Expansions –Secured Project WCSB Supply Growth1 • Low cost Montney basin provides economic supply (Bcf/d) N-4 (<$2/mmbtu) ~24 • Successful binding open season concluded in June 16 N-5 • Expanding system by 535 mmcf/d 2021 2040 T-NorthFort Taylor STATION 2 St.John CS-1 • To serve gro
Slide 12: T-South Pipeline Expansion
T-South Pipeline Expansion T-North Existing Enbridge Pipelines T-South Pipeline • ~300 mmcf/d expansion requirement Enbridge Compressor Station Fort Taylor STATION 2 St.John Fortis Pipeline CS-2B Chetwynd Capacity – Existing long-term contract with (Bcf/d) McLeod Lake CS-3 Dawson Creek Woodfibre LNG
Slide 13: Woodfibre LNG Investment
Woodfibre LNG Investment T-North N-2 N-3 Investment Overview2 Strategic Fit BC N-4 N-5 Fort Taylor • 30% preferred equity interest Direct connection to STATION 2 CS-2B St.John pipeline assets McLeod Lake CS-3 Chetwynd Dawson Creek • Pro-rata capital contributions Squamish Summit Montney during const
Slide 14: Woodfibre LNG Project Overview
Woodfibre LNG Project Overview Indigenous Engagement Overview: Extensive, meaningful consultation Liquefaction Plant with Indigenous peoples • 2.1 mtpa production Unique and innovative relationship capacity with the Squamish Nation • 250,000m3 of floating The Squamish Nation has provided stora
Slide 15: Woodfibre LNG Fundamentals
Woodfibre LNG Fundamentals Growing Asian LNG Demand1 Advantaged Shipping Costs2 LNG Export Breakevens3 MMtpa Delivered to Asia Breakevens ($/mmbtu) 570 Estimated 600 500 ~50% ~5-6 weeks cost range reduction in shipping 400 emissions ~4 weeks 300 255 ~2 weeks 200 100 0 2020 2050 West Coast USGC via U
Slide 16: Woodfibre LNG Execution Plan
Woodfibre LNG Execution Plan Construction Overview Execution Timeline • Modular plant construction • Squamish EA2 certificate Pre- • Federal EA approval • Lump sum turn-key received 2022 • Provincial EA certificate EPC contract approved • Key Squamish Nation, • Issued notice to proceed Federal & Pro
Slide 17: Low-Carbon Development
Low-Carbon Development Wabamun Carbon Hub • 4+ MtCO2 under MOU Utility H2 and RNG Ireland Strategy & Investment • Awarded further • 50+ projects in UK Criteria development rights development • Testing geology • Walker/Comcor Germany Partnership • Focus on in-franchise France Offshore Wind opportunit
Slide 18: Resiliency in all Market Cycles
Resiliency in all Market Cycles Predictable & Growing Cash Flows Pipeline-Utility Model Financial Commodity Alberta COVID 19 Crisis Price Forest Collapse Fires • Contracted; 98% contracted or cost-of-service WTI • Strong counter-party credit; 95% of customers with investment grade rating2 • BBB+ cre
Slide 19: Capital Allocation Priorities
Capital Allocation Priorities Growing Free Cash Flow Balance Sheet Ratings Reaffirmed Adjusted EBITDA1 Baa1 Moody’s May ≤4.7x Stable S&P Global BBB+ March Stable DBRS BBB High July Stable 2021 2022e on track to achieve guidance Debt/EBITDA; by year end 2022 Fitch Ratings BBB+ April Stable Return Cap
Slide 20: Q2 Financial Results
Q2 Financial Results Q2 YTD ($ Millions, except per share amounts) 2022 2021 2022 2021 Quarterly Drivers Liquids Pipelines 2,095 1,844 4,312 3,725 Gas Transmission & Midstream 1,084 935 2,142 1,942 Operational performance Gas Distribution & Storage 422 461 1,096 1,107 127 113 287 267 DCP & Aux S
Slide 21: 2022 Financial Outlook
2022 Financial Outlook EBITDA Guidance1 DCF/share Guidance1 ($Billions) $5.20 – $5.50 Tailwinds/Headwinds to $15.0 – $15.6 Full-Year Guidance $4.96 $14.0 • Strong operating performance & system utilization • Energy Services • Rising interest rates 2021 2022e 2021 2022e On track to achieve full-year
Slide 22: Secured Capital Program
Secured Capital Program Project Expected ISD Capital ($B) Modernization Program 2022-2025 2.2 USD Other Expansions 2022-2025 0.5 USD Gas Transmission Venice Extension1 2023-2024 New 0.4 USD T-North Expansion 2026 New 1.2 CAD Woodfibre LNG2 2027 New 1.5 USD Distribution System 2022-2024 1.7 CAD Gas D
Slide 23: Visible Growth
Visible Growth DCF/share1 3-Year Outlook 5-7% CAGR through 2024 Deploy Excess Capacity Revenue Inflators Execute Secured & Productivity Capital Program Enhancements 2021e 2024e Growth through 2024 on track (1) DCF and DCF/share are non-GAAP measures. Reconciliations to the nearest GAAP measures are
Slide 24: Annual Investment Capacity
Annual Investment Capacity Opportunity Set $5-6B of Annual Investment Capacity Gas Transmission Gas Distribution up to ~$2.0B/year up to ~$1.5B/year • $3-4B of ratable organic growth • System modernization • System modernization • Capital efficient expansions • Customer growth • Remaining $2B must c
Slide 25: ESG Leadership
ESG Leadership Environment Social Governance Goal: Lower emissions Goal: Gender diversity Goal: Board Gender intensity 35% by 2030 40% by 2025 diversity 40% by 2025 2020 Set Targets Goal: Achieve Net-zero Goal: Ethnic & Racial Goal: Ethnic & Racial by 2050 minorities 28% by 2025 minorities 20% by 20
Slide 26: 2021 ESG Performance
2021 ESG Performance GHG emissions over 29% -20 % $6B 27% Improvement in Methane Invested Intensity TRIF1 rate over emissions in pipeline 2018 35% three-year average 1.65 tCO2e to 1.32 tCO2e integrity in last 3 years Diversity & Inclusion 31% 2022 Catalyst Award $960 spend with M Enbridge Fueling Fu
Slide 27: Takeaways
Takeaways On track to achieve 2022 financial guidance Two-pronged strategy validated Advancing North American export strategy Secured $4.5B of new projects year to date Prudent capital allocation Progressing low-carbon & ESG priorities “Tomorrow is on” Accelerating Our Natural Gas Strategy 27
Slide 28: Qs&A
Qs&A CENBRIDGE