Enbridge Inc. · TSX:ENB
Enbridge — Investor Day (March 2023)
92 slides from Enbridge's investor day presentation, Mar 1, 2023
Slide 1: Greg Ebel, President & CEO
March 1, 2023 Greg Ebel President & CEO
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: Ensuring the safety & reliability of our systems
Safety moment/reliability highlight Ensuring the safety & reliability of our systems Enbridge invests millions of hours and billions of dollars each year to ensure our energy infrastructure reliably delivers the energy that tens of millions of people across North America rely on every day, especiall
Slide 4: Agenda
Agenda Eastern Time Strategic Overview & Priorities Greg Ebel 8:40 Gas Transmission & Midstream Cynthia Hansen 9:05 Gas Distribution & Storage Michele Harradence 9:30 Break 9:50 Renewable Power Matthew Akman 10:10 Liquids Pipelines Colin Gruending 10:30 New Energies & Corporate Finance Vern Yu 10:55
Slide 5: Today's Approach
Today’s Approach Energy First-choice First-choice Business What’s new fundamentals energy provider energy investment unit updates opportunity Energy Strong global Building an Low-risk Compelling security at demand drives integrated commercial growth and the forefront growth across energy super model
Slide 6: What's New
What’s New • Acquired >35 Bcf contracted natural gas storage facility Gas Transmission • 10% equity interest in leading RNG1 developer and Midstream • ~US$1B of additional modernization capital • Successful filing of new incentive rate framework Gas Distribution • Announced Hamilton growth project •
Slide 7: Energy Security & Affordability Challenged
Energy Security & Affordability Challenged Underinvestment and geopolitics drove …shifting the focus to rebalancing unprecedented price spikes in 2022… priorities Peak year-over-year price increase (seen in Q1/22) Rystad’s “Energy Trilemma” Reliability 180% 300% 300% Gas Power Power Ukraine 480% inv
Slide 8: Strong Global Energy Fundamentals
Strong Global Energy Absolute demand growth for decades to come Fundamentals Oil | Natural Gas | Wind & Solar | Other | IEA World Energy Outlook, Exajoules1 • Energy demand is growing 800 • Natural gas and oil remain critical components under any energy transition pathway 600 • Renewables growing ra
Slide 9: Fundamentals Support Enbridge Strategy
Fundamentals Support Enbridge Strategy Liquids exports LNG exports Renewable capacity North America (MMbpd)1 North America (Bcf/d)1 North America & Europe (GW)1 ~8 ~28 ~1,150 Today 2035 Today 2035 Today 2035 • Demand underpinned by • Growing LNG exports provide • Policy advancements accelerate hard-
Slide 10: Liquids and Utility Rate Base Growth Focused
Pre 2016 Legacy Enbridge Liquids and Utility Rate Base • Liquids focused Growth Focused • Low-cost Mainline expansions • Market Access opportunities • Gas & renewables not the main drivers… yet Business Mix1 (% of Adjusted EBITDA) 74% Liquids 21% Gas 5% Renewable Power A detailed legend and further
Slide 11: Merger Created N.A.'s Premier Energy Infrastructure Company
Pre 2016 Legacy Enbridge Merger Created N.A.’s Premier 2017 Spectra Merger Energy Infrastructure Company • Re-balanced the portfolio • Leading project backlog • Strategic growth platforms • Best-in-class commercial underpinnings • Deleveraged and simplified corporate structure • Undertook portfolio
Slide 12: Executing on Strong N.A. Export Fundamentals
Pre 2016 Legacy Enbridge Executing on Strong N.A. 2017 Spectra Merger Export Fundamentals ► Export Strategy Oil Export Strategy • Focused on last-mile Flanagan South connectivity Cushing Storage (2014) OK • Ensured strategic TX Seaway ETCOP positioning to benefit from Gray Oak (2011) (2016) N.A.’s c
Slide 13: Positioning ENB as a First-choice Developer of Renewables
Pre 2016 Legacy Enbridge Positioning ENB as a First-choice 2017 Spectra Merger Developer of Renewables ► Export Strategy ► Renewables • Developed world-class renewable footprint • Positioned in core European offshore markets to capitalize on aggressive transition targets • 1st offshore wind project
Slide 14: Significant New Energies Opportunities Across Footprint
Pre 2016 Legacy Enbridge Significant New Energies 2017 Spectra Merger Opportunities Across Footprint ► Export Strategy CO2 ► Renewables H2 H2 CO2 ► New Energies CO2 • Tangible portfolio of new energy assets: RNG, H2 & CCS1 H2 • Scalable opportunities RNG RNG H RNG H2 2 RNG RNG H2 embedded within our
Slide 15: First-choice energy provider
First-choice energy provider Best Liquids Pipeline franchise in N.A. Unrivaled Gas Transmission network N.A.’s largest Natural Gas Utility UK Large diversified Germany Renewables platform France Significant Lower-carbon growth opportunities A detailed legend and further information on our asset map
Slide 16: Four Core Franchises Offer Steady Growth...
Four Core Franchises Offer Predictable growth across our entire footprint Steady Growth... Gas Transmission & Midstream • Meet growing utility customer demand • LNG export connections in Canada & U.S. $2B+ • Support electric generation growth Per year Gas Distribution • Meet residential & industrial
Slide 17: ... With Upside From New Energies
... With Upside From Leveraging core infrastructure to advance lower-carbon New Energies opportunities RNG CO2 • Injecting RNG into Distribution system • 10% equity investment in Divert Inc. • Leverage existing network to grow RNG H2 Carbon Capture & Storage • Wabamun Carbon Hub (Alberta) • Sequestr
Slide 18: Disciplined Capital Allocation Approach Unchanged
Disciplined Capital Capital allocation priorities Allocation Approach Unchanged 1 Balance Sheet Strength • Preserve financial strength & flexibility • Maintain leverage within 4.5x-5.0x Maintaining a strong balance sheet remains our top priority 2 Sustainable Return of Capital • Payout range of 60%-
Slide 19: Our ESG Priorities
Our ESG Priorities ESG goals tied to compensation Committed to global ESG leadership 19
Slide 20: Enbridge's Value Drivers
First-choice Enbridge’s Value Drivers Energy Provider Diversified Low-Risk Stability Pipeline / Utility Model Strong Total Return Reliable Cash Flows & Strength Strong Balance Sheet 28 Years of Annual Consistency Dividend Increases Predictable Low-Risk ~5% Medium-term Cash Flow Growth Growth Outlook
Slide 21: Today's Speakers
Today’s Speakers Vern Yu Cynthia Hansen Colin Gruending Michele Harradence Matthew Akman CFO & President NET President GTM President LP President GDS President Power 29 years 24 years 23 years 8 years 7 years A deep bench of executive talent Length of service includes time at ENB and where applicabl
Slide 22: Cynthia Hansen
Cynthia Hansen President, Gas Transmission & Midstream
Slide 23: First-choice for Natural Gas Delivery in N. America
First-choice for Natural Gas Delivery in N. America $4B+ T-North USNE growth opportunities Unparalleled Asset Position T-South • Low-risk commercial model with minimal commodity risk and Maritimes & lower-carbon solutions that decarbonize the gas we deliver Northeast Alliance Last-Mile Connectivity
Slide 24: Demand for N. American Gas
N. American Competitive Demand for N. American Gas Advantage Natural Gas Production2 By Continent (Bcf/d) Natural Gas Demand1 Demand to (Bcf/d) grow by Exports +16 Bcf/d by 2035 Other Power South Australia Europe Africa Russia Middle Asia North America East America Industrial U.S. is the top natural
Slide 25: North American Supply
Regional Supply Forecast1 (Bcf/d) North American Supply Canadian Stable long-lived Appalachia LNG Exports1 ~3 resource Western Canada 35 36 (Bcf/d) Competitive break-even costs 21 17 Short transit times 2022 2035 ~0 to Asia Today 2035 2022 2035 USGC ~25 Connected to LNG Exports1 sustainable supply (
Slide 26: Critical Energy Infrastructure
Critical Energy Coal-fired plant 150GW1 Oil-fired plant Nationwide coal retirements through 2050 Infrastructure 0.6 Reliable – Gas (+4%) Wind (+184%) Coal retirements U.S. Power 0.4 accelerating Solar (+68%) Capacity1 0.2 Gas needed Coal (-60%) (TW) for peak day power 0 requirements 2023 2024 2025 2
Slide 27: Optimizing the Base
Rate Settlements Optimizing the Base 2020 Texas Eastern Algonquin (US$B) BC Pipeline Annual 1.50 Modernization 1.25 Program 2021 East Tennessee 1.00 Alliance U.S. 0.75 Maritimes and Northeast ~$4B1 0.50 capital spend 0.25 2023-2026 2022 Texas Eastern 0.00 2023 2024 2025 2026 BC Pipeline >180 ktCO2e
Slide 28: U.S. Northeast Strategy
U.S. Northeast Strategy Addressing regional peak demand of New England Opportunities 32 Bcf/d1 Boston USNE Capacity Solutions Needed Power LDC peak demand continues to increase Dawn Hub Generation NYC Detroit Philadelphia Need to reduce exposure to global gas prices Market Producers increasingly sup
Slide 29: B.C. Pipeline Expansions
B.C. Pipeline Expansions BC T-North Ksi Lisims LNG WCGT T-North Expansion (Aspen Point) STATION 2 Fort Taylor St.John Prince Rupert CS-2B AB LNG Canada PTP • 535 MMcf/d expansion CS-3 Dawson Creek McLeod Lake Coastal Montney Cedar LNG • $1.2B capital project; ISD 2026 Gaslink1 Summit Lake CS-4A Basi
Slide 30: Western Canada LNG
Growing Asian LNG Demand1 Western Canada LNG (Bcf/d) 70 66 Western Canadian Advantaged Shipping 60 LNG Exports Costs2 (Bcf/d) 50 6.0 LNG Canada II ~50% 40 reduction in Tilbury LNG shipping 33 4.0 emissions Ksi Lisims 30 Cedar LNG LNG 2.0 LNG Woodfibre LNG ~2 weeks ~4 weeks ~5-6 weeks 20 Canada I 0.0
Slide 31: LNG Investment Strategy
Liquefaction Plant LNG Investment Strategy Criteria to Invest Storage Tanks Direct connect to Enbridge pipeline assets LNG Carrier Loading Facilities Low-risk commercial model Highly executable Woodfibre LNG Investment • 30% preferred equity interest Attractive return • Pro-rata capital contribution
Slide 32: U.S. Gulf Coast LNG Exports
USGC LNG U.S. Gulf Coast LNG Exports Export Volumes Served by Enbridge facilities (Bcf/d) ENB LNG ~$4.7B 9 export market 1 Venice potential3 Extension Under USGC growth • Plaquemines LNG construction >30% opportunities • US$400MM Rio Grande2 LA TETCO expansion 6 Texas Eastern 1 TX BIG1 2 Rio Bravo T
Slide 33: Additional U.S. Gulf Coast Growth Opportunities
Additional U.S. Gulf Coast Haynesville Growth Opportunities Basin TX Texas LA Eastern $4B+ BIG3 Coastal Header USGC growth Plaquemines LNG Tres Palacios USGC Growth opportunities Freeport LNG • Acquired Tres Palacios Opportunities Tres Palacios Holdings, LLC • In discussion with multiple ENB connect
Slide 34: Renewable Natural Gas
~$1B+ growth potential Renewable Natural Gas Advancing our Investment in Leading Gas utility RNG Strategy RNG Developer demand growth of up to • Leverage existing network • 10% preferred equity investment ~6Bcf/d by 2035 and capabilities in Divert Inc. • Strong customer demand • Option to invest up
Slide 35: Approach to Emission Reductions
Approach to Emission Reductions GTM Methane Emissions (MMtCO2e) • ~$4B in modernization work planned Modernization Program • Replacing compressors and updating controls • Investing in pipeline integrity ~35% reduction since 2018 • Eliminating fugitive emissions during maintenance Gas Capture and • 2
Slide 36: First-choice investment opportunity driven by:
First-choice investment opportunity driven by: ~$4B of highly predictable modernization capital in flight Successful re-contracting at 100% Extending our export strategy in the USGC and Western Canada $17B+ of system expansion opportunities Developing lower-carbon solutions; $2B+ in RNG, Hydrogen an
Slide 37: Michele Harradence
Michele Harradence President of Gas Distribution & Storage
Slide 38: First-choice for Natural Gas Delivery
QUEBEC First-choice for Natural ONTARIO Montreal Gas Delivery Ottawa Connected to 3.9 MM customers & serving 75% of Ontario’s Critical & Cost Competitive TORONTO homes • Largest integrated natural gas utility in N.A.1 QUEBEC • One of the largest interconnected storage hubs in N.A. Hamilton ONTARIO D
Slide 39: Natural Gas is Critical to Enabling Growth
Natural Gas is Critical to Enabling Growth Ontario’s Energy Landscape1 Population Growth in Ontario TWh $B • Anticipated growth of 2.2 million people over the next 10 years 300 Gas peak 20 • Natural gas critical to resiliency and meeting heating requirements demand is 18 250 273 ~4x electricity 18 1
Slide 40: Demonstrated Benefits of Regulatory Framework
Demonstrated Benefits of Regulatory Framework Consistently Rate Base Predictable Investor Benefits Realized ROEs achieving (MMs) rate base allowed growth Consistent and transparent Allowed ROE Actual ROE returns 18,000 rate making process 12.0% Generates traditional and 16,000 lower-carbon rate
Slide 41: Extending a Mutually Beneficial Incentive Model
Extending a Mutually Beneficial Incentive Model 2024-2028 Regulatory Framework Summary of OEB Application Term 5 years: 2024 cost of service & • Effective Jan. 1, 2024 with rate certainty to 2028 2025 – 2028 incentive period • Identify and implement efficiencies Inflation Protection Inflation + 1.35
Slide 42: Multiple Platforms for Predictable Utility Growth
Multiple Platforms for Predictable Utility Growth Customer Connections Power Generation Industrial Growth 3.9+ ~3.5 2015 2016 2017 2018 2019 2020 2021 2022 2023e 2024e • Customer adds of >45k in 2022 • Natural gas is critical to Ontario’s • Growing demand from power sector greenhouses & manufacturin
Slide 43: Storage, Transmission & Distribution Growth
Storage, Transmission & Distribution Growth Reduces One of N.A.’s Hamilton Growth Project GHG annual Dawn Hub Supports Growth emissions by largest 3MMtCO2e TORONTO natural gas storage hubs ONTARIO DAWN HAMILTON MICHIGAN HUB Hamilton Growth Dawn to Corunna Panhandle Expansion • Supporting Dofasco’s t
Slide 44: Growing Lower-Carbon Opportunities
Growing Lower-Carbon Opportunities Energy Efficiency Integrated Gas System “Green” Gas & CCS • Conservation is a cornerstone • Published first of its kind study: • N.A.’s 1st H2 blending facility • Selected to deliver NRCan’s1 “Pathways to Net-Zero” for Ontario • Transporting 1.3 MMcf/d of RNG2 Gree
Slide 45: Lower-Carbon Project Spotlight
This is not a hydrogen picture Gatineau Hydrogen Lower-Carbon • Up to 15% H2 for ~44,000 Project [Cool RNG picture here] customers1 • 15 km pipeline & injection facility Spotlight $600MM+ investment opportunities • 15,000 tCO2e of annual emission reductions through 2025 • ISD 2026 Incubating lower-c
Slide 46: Emissions Reductions
Emissions Reductions Scope 1: Equipment Improvement Scope 1: Fugitive Emissions Scope 3: Energy Savings1: 13,900 tCO2e/yr. Savings1: 8,200 tCO2e/yr. Efficiency Lifetime Savings2: Scope 1: Blowdown Recovery 58 MMtCO2e Savings1: 8,000 tCO2e/yr. Compressor Station Compressor Station with Dehydration Co
Slide 47: First-choice investment opportunity driven by:
First-choice investment opportunity driven by: Extending successful incentive rate making model providing stable earnings growth Rate base growth through 2028 and beyond Ensuring energy security and reliability $1B+ Leading the adoption of lower-carbon annual capital spend technology
Slide 48: Break
é ys CENBRIDGE
Slide 49: Matthew Akman
Matthew Akman President Power
Slide 50: First-choice for Renewable Power
First-choice for Ireland $4B+ UK London Germany Renewable Power offshore wind growth potential Paris France World Class Operation & Maintenance Capabilities Calgary • 2.2 GW1 in operation in N.A. and Western Europe • Asset management and O&M teams throughout N.A. • Experienced offshore wind player R
Slide 51: North American Renewable Fundamentals
Renewable Capacity North American Growth1 Renewable Fundamentals (GW) Solar ~1,070 Wind ~460 Growth Oriented Policies Fall Economic Statement Inflation Reduction Act • 30% ITC for renewables • PTC/ITC for renewables, H2, and power storage to 2032 and power storage to 2032 174 • ~$7B committed over •
Slide 52: European Offshore Wind Fundamentals
European Offshore Wind Fundamentals Installed Capacity Growth1 Aspirational Country Targets (GW) (GW) 500 France UK Countries with operating assets ~50 UK 400 Germany by 2030 300 Other Europe Germany ~70 by 2045 200 In operation Under construction France ~40 100 In development by 2050 In tender proc
Slide 53: Complementary to N.A. Renewables
Complementary to N.A. Renewables Acquired Tri Global Energy Strategy Enhances renewable generation capabilities Transaction Overview Supports BTM1 and FTM2 strategy Supports Enbridge growth outlook • In 2022 we completed the acquisition of Tri Global Energy (TGE); US$270MM Accretive to DCF/s
Slide 54: Front of the Meter Development
Front of the Meter Development Potential CODs 2025-2026 Potential CODs in 2027+ Project Region MW (Gross) Project Region MW (Gross) Cadillac I Solar ERCOT 400 Blue Cloud II Wind SPP 200 Cadillac II Solar ERCOT 350 Shannon Solar PJM 150 Cone Wind SPP 300 Vermilion I/II/III Solar & PJM 495 Storage Eas
Slide 55: European Offshore Wind Development
UK European Offshore Wind Dunkirk 600 MW; 20-year PPA Development Rampion Extension 1200 MW; lease $2.5B+ London offshore wind Germany growth opportunities Normandy Tender (Fixed) • Solid fundamentals yield strong risk-adjusted returns Paris 1 GW; 20-year PPA 2022 Q4 submission | 2023 1H award • 4 o
Slide 56: Offshore Wind Construction Program
Offshore Wind Construction Program ENB’s Offshore Provence Saint Nazaire Grand Large Fécamp Calvados Wind Capacity Growing 50% by 2025 MW (gross) 480 24 497 448 COD In Service Dec-2023 Jan-2024 Mid-2025 Growth in Offshore Capital Cost1 $900MM $100MM $700MM $900MM Wind EBITDA Ownership % 25.5% 25% 17
Slide 57: Behind the Meter Development
Behind the Alberta Solar One 10.5 MW Meter Development Lambertville, NJ 2.25 MW • Adjacent to Enbridge pipeline load powering pumps and compressor stations • Leverage lands, existing infrastructure and ROWs Heidlersburg, PA 2.5 MW • Standardized approach across development, procurement, and construc
Slide 58: Disciplined Approach to Renewable Growth
Disciplined Approach to Renewable Growth Renewable Growth Portfolio Visible development pipeline aligned (Cumulative Net GW) to ENB business model and return expectations 15 Capability Build Phase Growth Execution Phase Levers to Enhance Returns: 13 11 Onshore • Utilize existing infrastructure to an
Slide 59: Areas of Growth
Areas of Growth First-choice investment (Cumulative Net Capacity MW) opportunity driven by: 10,000 Solar +360% Offshore +180% Onshore +170% 8,000 Robust fundamentals and energy policy driving growth 6,000 4,000 $5B+ of visible front of meter growth opportunities in North America 2,000 0 2022 2023 20
Slide 60: Colin Gruending
Colin Gruending President Liquids Pipelines
Slide 61: First-choice for Liquids Delivery
First-choice for Large and competitive light & heavy super systems Liquids Delivery WCSB Ft. McMurray Light Oil Heavy Oil Edmonton 3.4 MMbpd Best Assets $1B+ Bakken Montreal • Premier Canadian crude franchise capital efficient expansion Toronto • Growing premier Bakken & Permian franchises $6B+ oppo
Slide 62: Global Liquids Demand Highly Resilient
Global Liquids Demand Highly Resilient Liquids Demand Resilient1,2 Requiring 90B+ Barrels of New Production3,4 (MMbpd) Average break-even price - $US/bbl 120 $80 Long-term Oil Price5 Other 100 forecasts Permian Light $60 Oil Sands ESG:82 80 Vehicles ESG:86 60 Heavy $40 Transport 40 $20 20 Petro- Mid
Slide 63: Enbridge Refining Markets
Enbridge Refining Markets Refinery Gross Margins1 Long-term Refining Demand1 (USD/bbl) Enbridge (MMbpd) connected $20 refinery 4 advantage Foreign $15 3 imports PADD III $10 2 WCSB imports $5 1 PADD II WCSB imports $0 0 Midwest Heavy USGC Heavy USGC Mars USGC LLS Singapore NW Europe 2022 2025 2030 2
Slide 64: Mainline Highly Utilized
Mainline Highly Utilized WCSB Supply by Egress1,2,3 Positioned to compete for volumes (MMbpd) TMX will lower existing utilization temporarily • 2 MMbpd reliant refinery demand 6 WCSB 5 Uncontracted Supply • 1 MMbpd downstream market access Able to compete for contracts 4 uncontracted volumes Enbridg
Slide 65: Mainline Tolling Options
Mainline Tolling Options Incentive Cost-of- Commercial Attributes Tolling service History of Tolling Models Competitive Toll, cost informed 1949-1994 Cost-of-service Volume Protection Line 5 Investments 1995-2021 Incentive tolling Capacity Expansions Base Return 2021+ Under negotiation Performance I
Slide 66: Mainline Tolling Timelines
Mainline Tolling Timelines Next Steps: Incentive Tolling Settlement Agreement in Regulatory File proposed principle with Vote by broader settlement with approval: enact 2H 2023 negotiating shipper group CER and FERC new tolling Commencement cohort framework Cost of Service File COS with CER Regulato
Slide 67: Significant Operating Leverage & Expansion Potential
Significant Operating Leverage & Expansion Potential EBITDA Operating $1B+ Future Upside to leverage Edmonton Ft. McMurray Mainline expansion organic expansions growth outlook 2024+ potential Bakken Oil Sands: 100+ kpbd Montreal Oil Sands: 250+ kpbd Mainline: 150+ kbpd Toronto Mainline: 350 kbpd Chi
Slide 68: Growing USGC Liquids Exports
Growing USGC Liquids Exports USGC Exports1 Crude Exports by Terminal2 Permian to Corpus Christi3 (MMbpd) (MMbbls) (MMbpd) 8 300 EIEC “VLCC economics will 2.5 Current Capacity 250 accelerate the shift to 2 Corpus Christi crude 6 200 export dominance” 1.5 150 RBN Energy 4 1 100 2 0.5 50 0 0 0 2022 202
Slide 69: Premier Permian Franchise
Premier Permian Franchise EIEC Advantage1,2 Our Approach Ingleside Energy Center Storage & Loading Costs $US/bbl $0.75 • Acquire assets with • Providing full path customer solutions $0.60 $0.65 – competitive advantage • Advantaged export terminal growth $0.45 $0.30 $0.40 – contracted volumes $0.15 •
Slide 70: USGC & Permian Conventional Growth
USGC & Permian Conventional Growth Permian Pipeline Growth • Expansions to Corpus Christi • Gray Oak Extension to Houston $600MM Capital Opportunities Permian $3.6B+ Seaway Growth opportunities Ingleside Terminal Growth • Storage & dock expansion $1.0B+ TEXAS • NGL exports Capital Opportunities Gray
Slide 71: "Tuck-in" Acquisitions Strategy
“Tuck-in” Acquisitions Strategy Disciplined Selection Criteria Recent Acquisitions • Value chain extension • Additional growth pathways • Low-risk commercial framework Gray Oak Moda • Financially accretive • Manageable size Cushing Cactus II Conditions supportive for acquisitions that complement our
Slide 72: Embedded Lower-Carbon Platform
Embedded Lower-Carbon Platform Carbon Capture & Storage • Wabamun Lower Carbon Hub • Oxy Low Carbon Ventures JV in Corpus Christi $1.0B+ Capital Opportunities CO2 $6B+ Growth H2 opportunities Ammonia & Hydrogen • USGC/Ingleside ideally situated as a world supply hub $4.0B+ CO2 • Growing industrial d
Slide 73: Managing Power Costs While Lowering Emissions
Managing Power Costs While Lowering Emissions LP Emission Reduction Plan LP Initiatives Strategies Cooperation with utilities to • Capacity management accelerate their decarbonization Modernization • Optimize scheduling to avoid plans and innovation peak pricing Realized • Equipment upgrades Procure
Slide 74: First-choice investment opportunity driven by:
First-choice investment opportunity driven by: Strong & diverse business Resilient demand pull & export fundamentals Operating leverage & $1B+ expansion upside $3.6B+ of growing USGC opportunities Accelerating lower-carbon opportunities; $1B+ $6B+ in Hydrogen and CCS annual growth opportunities Visi
Slide 75: Vern Yu, President, New Energy Technologies
Vern Yu President, New Energy Technologies
Slide 76: A Measured Approach to New Energy Investment
A Measured Approach to New Energy Investment Maintain our Mirror the pace Demonstrate Draw on our value proposition of the market leadership advantages • Low risk commercial • Commercial scalability • Technical competence • Multi-disciplined model • Proven demand • Work with policy • Broad resource
Slide 77: New Energy Technology
New Energy Technology H2 RNG Hydrogen Renewable Natural Gas Footprint across N.A. CO2 Carbon Capture CO2 & Storage H2 H2 NH3 Ammonia CO2 CO2 H2 RNG H RNG H2 RNGH2 2 RNG RNG RNG RNG RNG CORNG 2 RNG CO2 RNG CO2 H2 RNG CO2 RNG RNG CO2 Ingleside Blue Wabamun CCS hub Divert’s food H2 Hydrogen & one of th
Slide 78: Vern Yu, CFO
Vern Yu CFO
Slide 79: 2022 Accomplishments
2022 Accomplishments • 17th consecutive year achieving guidance First-choice • 28th consecutive dividend increase Investment • DCF/s growth CAGR of 6% since 2019 and 8% since 2017 • Enhanced balance sheet strength and financial flexibility Strong • Debt/EBITDA of 4.7x; lower half of target range Bal
Slide 80: Low-Risk Commercial Model
Low-Risk Commercial Model 98% cost-of-service/ contracted cash flows2 Financial Commodity Alberta COVID Crisis Price Forest Collapse Fires 95% of customers are Investment Grade3 17th consecutive year achieving 80% of EBITDA has inflation protections4 guidance in 2022 Adjusted Earnings/share1 DCF/sha
Slide 81: 2023 Guidance Maintained
Key Sensitivities 2023 Guidance Maintained 1 Minimal FX Exposure Adjusted EBITDA DCF/share1 Dividends/share • Substantially hedged DCF FX ($B) Exposure at 1.31 USD/CAD $15.9 – $5.25 – $16.5 $5.65 $15.5 $5.42 $3.55 $3.34 $3.44 $4.96 $14.0 Limited Interest Rate Exposure: • ~ 10% of debt portfolio expo
Slide 82: Capital Allocation Priorities
Capital Allocation Priorities Annual Investment Capacity ~$11B ~$7B Balance Sheet • Preserve financial strength & flexibility Strength • Maintain Debt to EBITDA range of 4.5x – 5.0x ~$2B ~$6B • Payout range: 60-70% of DCF Sustainable • Dividend supported by cash flow growth Return of Capital ~$3B Di
Slide 83: Equity Self-Funded Model
Industry-Leading Credit Ratings Equity Self-Funded Model 2023 Funding Plan Upcoming Debt Maturities Baa1 ($B) ~70% Hedged ($B) Stable ~$5 ~$6 ~$6 Debt Maturities Debt Funding ~$6 ~$5 BBB+ ~$5 Stable Secured Growth Capital1 ~$11 Distributable ~$7 Cash Flow Common Share BBB High Dividends Stable Uses
Slide 84: Sustainable Return of Capital
Sustainable Return of Capital Dividend Per Share $4.00 5% $3.50 CAGR since 2019 2023 Dividend 28 Consecutive Dividend Increases $3.00 $3.55/share (+3.2%) from 2022 $2.50 $2.00 $1.50 DCF Payout $1.00 60-70% $0.50 $0.00 1995 2023e Sustainable growing dividend is a key part of Enbridge’s investor propo
Slide 85: Allocation of Investment Capacity
Investment Capacity Allocation of Investment Capacity Core Allocation ~$6B Discretionary Capacity to Drive Further Growth and Value Allocation • Additional organic growth ~$3B Discretionary • Tuck-in asset acquisitions Allocation • Share repurchases annually • Debt reduction Core Highly Visible Annu
Slide 86: Capital Allocation Choices
Capital Allocation Choices Investment Discipline Further Organic Growth Asset Acquisition $40B+ Share Repurchases Debt Repayment Initial Screen Strategy ESG Commercial Executability Portfolio Assessment Project Relative Project Economics Ranking Value Accretion vs. Hurdle Rate against Alternatives H
Slide 87: Secured Capital Program
Secured Capital Program Executing on Project Expected ISD Capital ($B) Secured Program Liquids Pipelines Ingleside Phase VI (Storage) 2024 0.1 USD Modernization Program 2023-2026 2.8 USD Other Expansions 2023-2025 0.5 USD $18B Venice Extension 2023-2024 0.4 USD $2.4B $17B Gas Transmission T-North Ex
Slide 88: Ongoing Capital Recycling
Regional Oil Sands: Aii Partnership (2022) Ongoing Capital Recycling Norealis Athabasca Terminal Terminal SK Cheecham Terminal Capital WBE-APT Athabasca Recycling 5.7 $11B Sunday Creek Norlite Diluent ($B) Terminal Kirby Lake Terminal Waupisoo Woodland Track record of AB Wood Buffalo high-grading Wo
Slide 89: Medium-Term Financial Outlook
Medium-Term Financial Outlook Near-term outlook 2022 to 2025 EBITDA CAGR: 4%-6% ~2% ~5% EPS CAGR: 4%-6% Will track approximately with Deploying CAGR Investment EBITDA ~1-2% Capacity DCF/s CAGR: ~3% • Robust opportunity set Modest headwinds from tax Secured • Tuck-in M&A legislation ~1-2% Organic Gro
Slide 90: First-choice Investment
First-choice Investment Strong Total Predictable and diverse cash flows Return Strong balance sheet Predictable Low-Risk Robust opportunity set competes Cash Flow Growth Business for investment capacity Growing and sustainable $40B+ shareholder return growth opportunities
Slide 91: ENBRIDGE
ENBRIDGE
Slide 92: Thanks for attending
YX ENBRIDGE Thanks for attending a foe)