Slide 1: Third Quarter 2017 Financial Results and Business Update
Third Quarter 2017 Financial Results and Business Update November 2, 2017 Al Monaco, Chief Executive Officer | John Whelen, 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, shareholders and unitholders of Enbridge Inc. (“Enbridge” or the “Company”), Enbridge Income Fund Holdings Inc. (“ENF”), Enbridge Energy Partne
Slide 3: Agenda
Agenda • Financial highlights • Business update • Financial results review • Year-to-date progress L3 Replacement Project Construction 3
Slide 4: Q3 Financial Highlights - Enbridge Inc.
Q3 Financial Highlights - Enbridge Inc. Adjusted EBIT ($ millions) ACFFO ($ millions, except per share amounts) 3 months ended Sept 30 9 months ended Sept 30 3 months ended Sept 30 9 months ended Sept 30 $3,873 $4,966 $2,834 $3,464 $1,738 $1,334 $1,001 $852 2016 2017 2016 2017 2016 2017 2016 2017 Q3
Slide 5: Mainline Competitive Position
Mainline Competitive Position Expected to be highly utilized through 2021 and beyond Mainline expansion capability to WCSB Capacity Outlook (KPBD) serve downstream markets 6,000 Enbridge Incremental CAPP 2017 Capacity Expansions 5,000 +500 kbpd Mainline expansion 4,000 capability 3,000 Enbridge Main
Slide 6: Progress Update - Line 3 Replacement
Progress Update - Line 3 Replacement • Critical infrastructure replacement Edmonton • Construction progressing well in Canada & Wisconsin Hardisty • Minnesota regulatory process ongoing Kerrobert • Target ISD 2H19 Regina Completed Regulatory Milestones: Construction segments Aug 2017 underway to dat
Slide 7: Project Execution
Project Execution Liquids: Natural Gas: Natural Gas: Renewables: AB Clipper (L67) NEXUS Valley Crossing Rampion DCP: TX Gulf Coast Express Texas Eastern Nueces Rampion Valley Crossing Pipeline Offshore wind assets Under construction Brownsville In pre-construction In development Mexico • Received am
Slide 8: Enterprise-wide Secured Growth Project Inventory
Enterprise-wide Secured Growth Project Inventory $31B of diversified low-risk projects Project Expected ISD Capital (C$B) Project Expected ISD Capital (C$B) Regional Oil Sands Optimization, High Pine 1Q18 0.4 CAD Athabasca Twin in service 1.3 CAD Rampion Wind – UK 2Q18 0.8 CAD Jackfish Lake in servi
Slide 9: Ontario Gas Distribution Utilities Update
Ontario Gas Distribution Utilities Update Filing application for amalgamation Mergers, Amalgamations, Acquisitions and Divestitures (MAAD) application to be ON filed today with the Ontario Energy Board QC Union Gas Indicative Terms: EGD • Price cap revenue inflator • 10 year term TORONTO NY • Capita
Slide 10: Q3 2017 Consolidated Adjusted EBIT Performance
Q3 2017 Consolidated Adjusted EBIT Performance Liquids Pipelines Adjusted EBIT (C$ Millions) 3Q16 3Q17 Spectra Energy assets Liquids Pipelines 941 976 Higher throughput on Canadian Mainline Higher FX hedge rate on Canadian Mainline revenues Gas Pipelines and Processing 94 700 • Normalization p
Slide 11: Q3 2017 Consolidated ACFFO Performance
Q3 2017 Consolidated ACFFO Performance (C$ Millions) 3Q16 3Q17 Consolidated Adjusted EBIT 1,001 1,738 3Q17 vs. 3Q16 ACFFO Analysis Depreciation and amortization 562 848 ACFFO Maintenance capital (171) (360) Adjusted EBIT drivers noted in previous slide • Increased net cash items as a result of Int
Slide 12: Fourth Quarter Outlook
Fourth Quarter Outlook ACFFO/Share Ex-Gretna Quarterly Throughput (KBPD) 2,800 $3.60 - $3.90 Forecasted 3Q17 Growth in Q4 2,492 2,600 Kbpd DRIVERS: • Mainline volumes • New projects 2,400 $2.61 • Synergies • Seasonality 2,200 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 (E) HEADWINDS: • Warmer weather Projects com
Slide 13: ENF & Fund Group: Q3 2017 Financial Summary
ENF & Fund Group: Q3 2017 Financial Summary (C$ millions, except per share amounts) 3Q16 3Q17 FY 2017 Guidance 3Q17 vs. 3Q16 Fund Group ACFFO Analysis Fund Group ACFFO 448 488 $1,900 - $2,100 Higher residual toll and higher Distributions Paid 402 404 - throughput on Canadian Mainline Payout Ratio
Slide 14: Spectra Energy Partners (SEP): Q3 2017 Financial Summary
Spectra Energy Partners (SEP): Q3 2017 Financial Summary (US$ millions, except per unit amounts) 3Q16 3Q17 FY 2017 Guidance 3Q17 vs. 3Q16 Analysis Ongoing EBITDA 469 554 - Higher due to expansion projects- AIM, Gulf Markets, NEXUS, Ongoing Distributable Cash Flow 313 398 $1,400 - $1,480 Access Sou
Slide 15: Enbridge Energy Partners (EEP): Q3 2017 Financial Summary
Enbridge Energy Partners (EEP): Q3 2017 Financial Summary (US$ millions, except per unit amounts) 3Q16 3Q17 2017 Guidance2 3Q17 vs. 3Q16 DCF Analysis Stable performance of the Adjusted EBITDA 457 426 $1,580-$1,680 Lakehead system Distributable Cash Flow 215 194 $700 - $750 Bakken Pipeline System
Slide 16: Funding Status
Funding Status Execution Progress On-going Access to Capital C$ Billion1 YTD 2017 Equity and Equivalent2 Unsecured Debt Ratings4 ENB Common Shares (DRIP) $0.9 Standard & Poors BBB+ (stable) Sponsored Vehicles (ATM/DRIP) 0.3 Hybrid Securities (50% equity) 1.5 Moody’s Baa2 (negative) Debt ENB Term Deb
Slide 17: Year to Date Progress
Year to Date Progress Continuing to execute on the plan On track for 2017 ACFFO/share guidance Integration and synergy realization $12B projects to be brought into service in 2017 Raised over $10 billion of capital, including $3B of equity or equivalent $2.6B of asset sales since merger announcement
Slide 18: Enbridge Day
Enbridge Day 2017 New York Toronto Tuesday, Wednesday, December 12 December 13
Slide 19: ENBRIDGE
ENBRIDGE
Slide 20: Enbridge Income Fund Holdings Inc. Third Quarter 2017 Supplemental Slides
Enbridge Income Fund Holdings Inc. Third Quarter 2017 Supplemental Slides Investor Relations Adam McKnight 403-266-7922 | adam.mcknight@enbridge.com
Slide 21: Fund Group: Available Cash Flow from Operations
Fund Group: Available Cash Flow from Operations (C$ Millions) 3Q16 3Q17 Liquids Pipelines 366 408 Gas Pipelines 48 49 Green Power 27 21 Eliminations and Other 15 13 Adjusted earnings before interest and tax 456 491 Depreciation and amortization 156 167 Cash distributions received in excess of equity
Slide 22: Fund Group 2017 ACFFO Secured Growth Projects in Execution
Fund Group: 2017 Outlook (as presented February 17, 2017) Fund Group 2017 ACFFO Secured Growth Projects in Execution C$ millions PROJECTS EST. COST ($B) $2,100 JACOS Hangingstone $0.2 2017 $1,900 Norlite Diluent Pipeline $0.9 Regional Oilsands Optimization $2.6 Athabasca Pipeline Twin • Wood Buffalo
Slide 23: Fund Group: Key Balance Sheets Metrics & Funding Progress
Fund Group: Key Balance Sheets Metrics & Funding Progress April 2016 09/30/17 $0.6B Consolidated Fund Group Leverage 43.4% ENF common share offering Consolidated Fund Group Debt/EBITDA 5.7x December 2016 Enbridge Income Fund Credit Ratings Baa3 (neg) / BBB (High)(2) $1.075B Enbridge Pipelines Inc. C
Slide 24: Dividend per Share Potential Growth Beyond
Significant Dividend Income Dividend per Share Potential Growth Beyond 2014 – 2019e 2019 $2.50 • Low cost, phased expansions of the Mainline $2.00 $2.05 $1.87 • Alliance pipeline expansion $1.50 $1.59 • Right of first offer with ENB on $1.40 growth within existing asset $1.00 footprint $0.50 $- 2014
Slide 25: Investor Value Proposition
Investor Value Proposition Premier Canadian Energy Infrastructure Income Investment Outstanding Low risk Visible growth Strong sponsor asset footprint business model • High quality, strategically • Minimal commodity price • 10% annual DPS growth • Aligned with ENF positioned Canadian and throughput
Slide 26: Spectra Energy Partners Third Quarter 2017 Supplemental Slides
Spectra Energy Partners Third Quarter 2017 Supplemental Slides Investor Relations Roni Cappadonna 713-627-4778 | Roni.Cappadonna@enbridge.com
Slide 27: Spectra Energy Partners (SEP): Ongoing Distributable Cash Flow
Spectra Energy Partners (SEP): Ongoing Distributable Cash Flow (US$ Millions) 3Q16 3Q17 US Transmission 430 505 Liquids Other 60 (21) 67 (18) 10 years of consecutive quarterly Ongoing EBITDA 469 554 distribution increases ADD: Earnings from equity investments (35) (55) Distributions from equity inve
Slide 28: Spectra Energy Partners: Key Balance Sheets Metrics
Spectra Energy Partners: Key Balance Sheets Metrics 09/30/17 Total Debt $8.3B Financial Covenant Metrics(1) 4.1x Debt/EBITDA Credit Ratings(2) Baa2 / BBB+ / BBB Available Liquidity $0.6B (1) Calculated in accordance with the credit agreements; max 5.0x (2) Moody’s / S&P / Fitch senior unsecured rati
Slide 29: $4+B Projects in Execution, ~75% Demand Pull
$4+B Projects in Execution, ~75% Demand Pull Continue to pursue development projects In-Service Counterparties Est. CapEx Date (USD $MM) Sabal Trail in service ~1,600 Gulf Markets – Phase II in service 110 2017 Access South, Adair Southwest in service + 4Q17 450 & Lebanon Extension Atlantic Bridge i
Slide 30: Investor Value Proposition
Investor Value Proposition Stable. Disciplined. Reliable. We go “where the lights are” – connecting diverse supply basins with regional demand markets – “last mile” competitive advantage Attractive Stable Outstanding Prudent financial distribution business model asset footprint management growth • P
Slide 31: Enbridge Energy Partners Third Quarter 2017 Supplemental Slides
Enbridge Energy Partners Third Quarter 2017 Supplemental Slides Investor Relations Adam McKnight 403-266-7922 | Adam.McKnight@enbridge.com
Slide 32: Enbridge Energy Partners (EEP): Adjusted EBITDA to Distributable Cash Flow
Enbridge Energy Partners (EEP): Adjusted EBITDA to Distributable Cash Flow 3Q16 3Q17 (US$ Millions) Adjusted EBITDA 456.8 426.2 Interest Expense (Net)(1) (105.7) (97.2) Income Tax Expense (2.2) (0.1) Distributions in excess of equity earnings 3.0 3.2 Maintenance capital expenditures (15.8) (10.4) No
Slide 33: EEP Unit Structure
EEP Unit Structure as of September 30, 2017 (Millions of units) Unit Class(1) ENB(5) Public TOTAL Cash Paying LP units(2) A 110.8 215.7 326.5 B 7.8 - 7.8 E 18.1 - 18.1 EEQ PIK Shares(4) 10.2 77.4 87.6 Incentive units – Class F(6) - - - TOTAL 146.9 293.1 440.0 Economic Interest(3) 34.7% 65.3% (1) Doe
Slide 34: Low-Risk "Utility-Like" Business
Low-Risk “Utility-Like” Business Reliable Business Model Provides Highly Predictable Cash Flows Investment Grade Direct Commodity Stable Business Exposure (CFaR)(2) Customers ~96% ~100% <1% of cash flow underpinned of revenue from of cash flow directly by long term cost of service or investment grad
Slide 35: Investor Value Proposition
Investor Value Proposition Attractive long term risk-return proposition Low risk, pure-play liquids pipeline MLP provides attractive risk-adjusted returns for unitholders Pure-play liquids Low risk Prudent financial Moderate pipeline MLP business model management visible growth • Exceptional North •