Enbridge Inc. · TSX:ENB
Enbridge — Enbridge Inc (Enb, Ebbgf, Ebbnf, Ebgef, Ebrgf, Ebrzf, Enbff, Enbgf, Enbhf, Enbmf, Enbnf, Enbof, Enbrf, Ennpf) — IPO Roadshow (September 2023)
25 slides from Enbridge's IPO roadshow presentation, Sep 5, 2023
Slide 1: U.S. Gas Utilities Acquisition
Greg Ebel President & CEO September 5, 2023 Pat Murray EVP & CFO U.S. Gas Utilities Acquisition
Slide 2: Legal notice
Legal notice 2 Prospectus A final base shelf prospectus of Enbridge Inc. dated September 5 , 2023 containing important information relating to the securities described in this document has been filed with the securit ies regulatory authorities in each of the provinces of Canada. A copy of the final
Slide 3: Transaction Overview
Generational acquisition furthers ENB’s utility - like model at an attractive and accretive purchase price Transaction Overview 3 (1) US$14.0B Converted at 1.36 USD/CAD • Enbridge to acquire three premier Gas Utilities from Dominion Energy • Creates North America’s largest gas utility platform; deli
Slide 4: Agenda
Agenda 4 • Value Proposition • Unique Asset Acquisition • Enhances Diversification • Growth Outlook • Financing Plan Strong Total Return Predictable Cash Flow Growth Low - Risk Business First - choice Energy Provider
Slide 5: Accretive to Enbridge's Value Proposition
Accretive to Enbridge’s Value Proposition 5 Stability Strength Consistency Growth Optionality Accelerates Scale & Breadth of Existing Low - risk Utility Model Improves Cash Flow Quality and Maintains Balance Sheet Strength Supports Long - term Dividend Growth Profile Further De - risks Growth Outloo
Slide 6: Unique Asset Acquisition
Questar 5 NEXUS Texas Eastern In states that preserve customer choice with legislation that “Bans the Ban on Natural Gas” East Tennessee EOG 6 PSNC 7 Unique opportunity to acquire large - scale gas utilities at historically attractive value Unique Asset Acquisition • Rare opportunity to acquire high
Slide 7: Assets in Premier Jurisdictions
East Ohio Gas Company Questar Gas Company 1 Public Service Company of North Carolina Access to Major Demand Centers Projected Population Growth 2 0.5% 5.0% 3.7% Consolidated Rate Base CAGR 3 ~8% Authorized ROE 10.4% 9.6% 4 9.6% Authorized Equity 51.3% 51.1% 4 51.6% Regulator Public Utilities Commiss
Slide 8: Further Enhances Diversification
Further Enhances Diversification 8 (1) Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) is a non - GAAP measure; see “ Non - GAAP Measures” on page 2 hereof; (2) Represents estimated increase to Enbridge’s EBITDA based on first full - year (2025e); (3) 3 year
Slide 9: Strengthens Gas Distribution Segment
Diversifies and doubles the size of the regulated utility footprint 9 Strengthens Gas Distribution Segment 99% 1% 51% 1% 10% 18% 20% Gas Distribution Segment by Jurisdiction (Post acquisitions Adjusted EBITDA 1 ) Ontario | Ohio | Utah/Wyoming/Idaho | North Carolina | Quebec x ~9.3 Bcf/d gas delivere
Slide 10: Strong Operational Track Record
Strong Operational Track Record 10 Focused on delivering safe, reliable and affordable energy to customers ~175 years of experience delivering gas to customers Operational, customer service, optimization, and safety excellence Highest standards of safety with goal of zero incidents Sustainability an
Slide 11: Successful Business Integration Track Record
Successful Business Integration Track Record Diversified Energy Delivery Company 2021 Acquired the Enbridge Ingleside Energy Center 1994 Acquired Consumers’ Gas – a gas distribution utility serving southern and eastern Ontario 2022 Acquired operatorship of Gray Oak Pipeline 2002 Acquired stake in Po
Slide 12: Enhanced Low-Risk Growth Platform
2023 Post Acquisition Enhanced Low - Risk Growth Platform 12 Secures low - risk, long - term growth with stable returns ~$19 B ~$24 B EOG, Questar, PSNC Secured Capital Program ($B by Business Segment) Gas Distribution | Gas Transmission | Liquids Pipelines | Renewables ~$5 B 1 ~$1.7 B per year Low
Slide 13: Further De-risks Growth Outlook
Further De - risks Growth Outlook 13 Enhanced visibility to growth outlook (1) Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) is a non - GAAP measure; see “Non - GA AP Measures” on Page 2 hereof. Deploying Investment Capacity Secured Organic Growth ~ 1 - 2
Slide 14: Flexible and Highly Executable Financing Plan
Flexible and Highly Executable Financing Plan 14 Concurrent equity issuance strengthens balance sheet and reduces funding risk; significant flexibility to fund the remaining balance prior to closing in 2024 Purchase Price Uses Near - term Sources Concurrent Equity Issuance Hybrids 1 / Bonds • Ongoin
Slide 15: Maintaining Strong Investment Grade Credit Metrics
2025e 2026e+ Metrics to be maintained well within management’s previously communicated target range 15 Enhances Business Risk Profile x Increased scale x Enhanced cash flow diversification x Supportive regulatory regimes Maintaining Strong Investment Grade Credit Metrics Post acquisitions Debt/EBITD
Slide 16: Clear path forward to closing in 2024
16 Sept 5, 2023 ENB Announces Acquisitions of U.S. Gas Utilities Clear path forward to closing in 2024 Regulatory Approval Next Steps 2024 Regulatory Review Process (Begins within 30 Days) Federal Approvals • Hart - Scott - Rodino • Federal Communications Commission • Committee on Foreign Investment
Slide 17: Key Takeaways
Supports long - term dividend growth profile Enhances Enbridge’s First - choice investment opportunity proposition Enhances premium growth profile while maintaining balance sheet strength Historically rare opportunity to acquire high quality, growing U.S. natural gas utilities of scale at an attract
Slide 18: Appendix
Appendix
Slide 19: The East Ohio Gas Company
High quality utility growth in supportive region • East Ohio Gas Company (EOG) is a single - state, fully regulated gas utility serving >1.2MM customers across >400 communities in Ohio • Owns 22,000 miles of transmission, gathering and distribution pipelines and 60 BCF of storage • Has >40 interconn
Slide 20: Questar Gas Company
20 Questar Gas Company (1) Includes both Questar and Wexpro; (2) Only includes Questar as Wexpro earns a guaranteed rate of return between 7 - 19% on its existing investment base; (3) 2017 - 2022a; (3) Also includes Wyoming Public Service Commission and Idaho Public Utilities Commission • Questar di
Slide 21: Wexpro – Regulated Gas Supply for Questar
Wexpro – Regulated Gas Supply for Questar 21 Supportive regulators recently modified Wexpro’s production cap to 65% of Questar’s total gas supply Risk Category Wexpro Model Traditional E&P Model Commentary Exploration & Development Risk Wexpro must demonstrate that new capital exceeds minimum return
Slide 22: Public Service Company of North Carolina
Strong growth profile driven by new customers and fuel switching • Public Service Company of North Carolina (PSNC) is a single - state, fully regulated gas utility in North Carolina serving several premier cities • Owns 13,000 miles of transmission, gathering and distribution pipelines serving >0.6M
Slide 23: Flexible and Highly Executable Financing Plan
Flexible and Highly Executable Financing Plan 23 Concurrent equity issuance strengthens balance sheet and reduces funding risk; significant flexibility to fund the remaining balance over time Purchase Price Uses Near - term Sources Concurrent Equity Issuance Hybrids 1 / Bonds • Ongoing capital recyc
Slide 24: Legal notice
Legal notice 24 Prospectus A final base shelf prospectus of Enbridge Inc. dated September 5 , 2023 containing important information relating to the securities described in this document has been filed with the securit ies regulatory authorities in each of the provinces of Canada. A copy of the final
Slide 25: Maintaining Strong Investment Grade Credit Metrics
2025e 2026e 2027e Metrics to be maintained well within management’s previously communicated target range 25 Enhances Business Risk Profile x Increased scale x Enhanced cash flow diversification x Supportive regulatory regimes Maintaining Strong Investment Grade Credit Metrics Post acquisitions Debt/