Slide 1: 2019 Financial Results & Business Update
2019 Financial Results & Business Update February 14, 2020 Al Monaco, Chief Executive Officer | Colin Gruending, 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: Q4 Highlights
Q4 Highlights • Solid performance across all businesses Delivered strong financial • Achieved $1.02 DCF/share ($4.57 FY); 4.5x Debt: EBITDA results & debt metric • Closed $1.7B Midstream sale • Delivered ~100 kbpd of Mainline throughput optimization Optimized the • Reached Texas Eastern rate settlem
Slide 4: 2019 Financial Results Summary ($ millions)
2019 Financial Results Summary ($ millions) Adjusted EBITDA Adjusted Earnings Distributable Cash Flow $13,271 $9,224 $12,849 $5,341 $3,186 Q4 $4,568 $7,618 $2,051 Q4 $3,320 $1,228 Q4 $1,166 $1,863 2018 2019 2018 2019 2018 2019 Q4: $0.65/ share $0.61/ share Q4: $1.05/ share $1.02/ share YTD: $2.65/ s
Slide 5: Projects Placed Into Service in Q4
Projects Placed Into Service in Q4 Gray Oak Pipeline Offshore Wind - Germany Line 3 Replacement - Canada US$0.7B ~$1.1B ~$5B Capital Cost Capital Cost Capital Cost Hardisty Hohe See PERMIAN Kerrobert Regina Gray Oak In-service & Gretna operational Houston EAGLE FORD Corpus Christi Superior • 900 kbp
Slide 6: Line 3 Replacement Update - Minnesota
Line 3 Replacement Update - Minnesota • Regulatory and permitting milestones – Feb 3: MPUC Public Hearing Edmonton ~US$3B US ▪ Environmental Impact Statement deemed adequate Hardisty Capital Cost ▪ Certificate of Need and Route Permit reinstated Kerrobert – Permitting agency updates Regina ▪ Polluti
Slide 7: Line 3 Replacement - Minnesota Project Milestones
Line 3 Replacement - Minnesota Project Milestones Anticipated Sequence of Milestones Regulatory: EIS Public EIS / CN / Orders Petitions for Authorization Spill Modelling MPUC Complete Consultation RP Decision Issued Reconsideration to Construct State Permitting: Issue Tribal Review Review & 401 Draf
Slide 8: Mainline Contracting
Mainline Contracting Shipper & Public Interest Benefits 1. Competitive & stable tolls to the best markets Premium 2. Open access for all shippers Light Oil Markets 3. Secures long-term demand for WCSB ~1 4. Establishes framework for future growth mmbd Premium Heavy Oil 2+ mmbpd Competitive and Stabl
Slide 9: Mainline Contracting – Benefits for all Shippers
Mainline Contracting – Benefits for all Shippers Striking a Balance Refiner / Benefit Producer Integrated Producer Secures Supply/Demand for • Mainline contract offering balances the WCSB production diverse interests of our customers – Producers: Stable and Competitive Tolls Flexible contracts with
Slide 10: Mainline Contracting – Competitive and Stable Tolls
Mainline Contracting – Competitive and Stable Tolls Hardisty to Chicago Heavy (US$/bbl) $5.70 Up to 35 cents Discounts for Additional contracted $5.25 discounts for capacity & term/volume $5.11 throughput Base Contract Toll Low Volume Contract Toll High Volume Contract Toll Toll offering in line wit
Slide 11: Mainline Contracting – Next Steps
Mainline Contracting – Next Steps Estimated Process Timeline: Dec 19, 2019 2Q 2021 Filed Application Regulatory: with CER Public Hearing Information Oral CER Hearings & Decisions Comment Orders Decision Requests Hearing Period (Feb 7) Issued New Mainline Commercial: Open Season Framework in Effect E
Slide 12: USGC Strategy – Fundamentals
USGC Strategy – Fundamentals USGC Heavy Supply USGC Refining Capacity Exports: Crude & LNG (Canada & US) ETCO 6 By 15 ~30% 50+% Seaway 2040 East of St. James +3 Lake Charles (MMb/d) Canada +10 Canada St. James Port Arthur (MMbcf/d) Baytown Texas City Gray 2018 2030e Oak Corpus Christi >8.5 3 5 MMb/d
Slide 13: USGC Strategy – Liquids
USGC Strategy – Liquids Expanding Access to U.S. Gulf Coast Enbridge Houston Oil Terminal/SPOT Mainline Express DAPL Seaway ETCO Gray Oak • Seaway Pipeline – open season underway • Houston Oil Terminal – • Bakken Pipeline System – open season underway ˗ 15 MMBbl of storage with access to all major N
Slide 14: USGC Strategy – Natural Gas/LNG
USGC Strategy – Natural Gas/LNG U.S. Gulf Coast LA • Texas Eastern and Valley Crossing well-positioned Texas Cameron Venice along the U.S. Gulf Coast Eastern Extension Extension • Connected to 3 LNG facilities and 4 projects at TX various stages of construction and development Plaquemines LNG Camero
Slide 15: USGC Strategy – LNG Pipeline Opportunities
USGC Strategy – LNG Pipeline Opportunities Rio Bravo Pipeline Valley Crossing Expansion Agua Dulce Agua Dulce Hub Hub Valley Crossing Valley Crossing Proposed Rio Bravo Pipeline VCP Expansion Rio Grande LNG terminal Annova LNG Terminal New pipeline to supply the Rio Grande LNG project Compression-ba
Slide 16: Gas Transmission – System Modernization
Gas Transmission – System Modernization Penn-Jersey Opportunities across footprint System • Ongoing investment to upgrade existing infrastructure • Maintain long-term resiliency of asset base as demand for natural gas grows • Recovered through periodic rate proceedings • 2020: US$0.8B of investment
Slide 17: Utility Business Update
Utility Business Update Executing Secured Capital Reliable Demand Growth Resilient Customer Base Secured Projects ISD Capital ($B) Total EGI Connections (in 1,000s) 3,800 New connections Dawn Parkway Expansion 2021 $0.2 42 3,700 48 Windsor Line 48 Replacement 2020 $0.1 3,600 51 49 Owen Sound Reinfor
Slide 18: 2019 Adjusted EBITDA
2019 Adjusted EBITDA ($ Millions, except per share amounts) 4Q18 4Q19 FY 18 FY 19 4Q19 vs. 4Q18 Mainline throughput & tolls; Strong downstream Liquids Pipelines 1,728 1.720 6,617 7,041 pipeline volume Avg. FX hedge rates on Canadian Mainline Valley Crossing & Nexus in service late 2018 Gas Tra
Slide 19: 2019 Distributable Cash Flow
2019 Distributable Cash Flow ($ Millions, except per share amounts) 4Q18 4Q19 FY 2018 FY 2019 4Q19 vs. 4Q18 Adjusted EBITDA 3,320 3,186 12,849 13,271 Adjusted EBITDA drivers (previous slide) Cash distributions in excess of equity Stronger equity distributions and new JV assets (Nexus 51 107 318
Slide 20: Monetized $8B of Non-Core Assets
Monetized $8B of Non-Core Assets Proceeds ($B) Closed Consolidated Debt to EBITDA1 6.0x Midcoast G&P Business $1.5 Aug. 1, 2018 (US$1.1B) 5.5x Target Range: North American Renewables 1.7 Aug. 1, 2018 5.0x 4.5x to 5.0x Canadian G&P Business (BC regulated) 2.5 Oct. 1, 2018 4.5x Enbridge Gas New Brunsw
Slide 21: Capital Allocation Priorities
Capital Allocation Priorities Secured Growth Inventory Capital Project Expected ISD ($B) Line 3 Replacement – U.S. Portion TBD1 2.9 USD 1 Preserve Financial Strength Southern Access to 1,200 kbpd 2H20 0.5 USD Target 4.5x to <5.0x DEBT to EBITDA and Other Liquids 2H20 0.1 USD maintain BBB+ credit rat
Slide 22: Financial Outlook
Financial Outlook DCF/share ~4-5% 5-7% DCF/share growth $4.50 - 4.80 ~1-2% • $11B of secured $4.57 growth through 2022 • Revenue escalators • New in-franchise • System optimizations growth opportunities • Cost efficiencies • Core rate base growth 2019 2020e Post 2020 Growth of 5-7% DCF per share sup
Slide 23: 2020 Priorities
2020 Priorities Execute secured capital program Optimize the base business Grow organically Disciplined capital allocation Balance sheet strength & flexibility Maximizing shareholder value through low-risk pipeline-utility model 23
Slide 24: Q&A
Q&A ZENBRIDGE