Enbridge Inc. · TSX:ENB
Enbridge — Q1 2022 Earnings Presentation
27 slides from Enbridge's earnings presentation, 2022
Slide 1: Q1 2022 Financial Results & Business Update
Al Monaco Vern Yu President & EVP, Corporate Development & Q1 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 UK • Q1 Highlights Germany Saint Nazaire 480MW | Late 2022 France • Energy Markets • Business Update • Financial Performance First turbine installed at Saint Nazaire Photo Source: ©Parc éolien en mer de Saint-Nazaire | Production CAPA Corporate 3
Slide 4: Q1 Highlights
Q1 Highlights • High asset utilization Operations • Good operational and safety performance • Strong Q1 results Financial • On track to achieve 2022 full-year EBITDA and DCF/s guidance • BBB+ credit ratings re-affirmed by S&P and Fitch • Progressing on $10B1 secured growth program; ~$4B expected in
Slide 5: Energy Markets
Energy Markets Macro Drivers Implications Energy Security Incremental energy supply buffer required to manage risk (Economic Growth, Affordability & Reliability) Further diversification & expansion of global energy supply Energy Transition Acceleration of low-carbon investment including natural gas
Slide 6: North American Energy Advantage
North American Energy Advantage Low-Cost, Reliable, Secure, & Sustainable Energy N.A. Energy Export Growth2 Top ten energy reserves by country Billion boe LNG3 Crude Oil4 ESG Scores1 (Bcf/d) (mmbpd) 500 90 >30 ~4.5 ~4.5 80 400 70 25 ~3.5 60 300 50 ~3 ~3 40 200 14 30 11 100 20 9 10 0 0 Canada U.S. Ca
Slide 7: All Forms of Energy Required
All Forms of Energy Required Crude Oil Demand1 Natural Gas Demand1 Low-Carbon Investment (MMb/d) (Bcf/d) Potential (Cumulative, USD Trillions)2 80% of demand from hard to abate uses Bioenergy (incl. RNG) $25 CCUS 3 Industrial Hydrogen Industrial Wind & Solar Heavy Duty Vehicles Heavy Duty Vehicles $
Slide 8: Enbridge's Two-Pronged Strategy
Enbridge’s Two-Pronged Strategy UK Conventional Growth Germany • Optimize existing capacity and throughput France • Expand and modernize assets Spain • Develop export markets • Accelerate natural gas investment Asset Portfolio1: Business Mix (2022 EBITDA Guidance) Liquids pipeline Low-Carbon Growth
Slide 9: Gas Transmission Update
Gas Transmission Update Emissions Systems Highly Utilized1 Capital Program in Execution reduction of (deliveries as a % of 3-year avg.) ~182 ktCO2e per year by ~107% ~104% 2023 ~100% Texas Eastern Algonquin East Tenessee 3 Year Average Q1 2022 • Demand and supply exceeds pre-pandemic levels • US$1.3
Slide 10: Gas Transmission Expansion Potential
Gas Transmission Expansion Potential Regional Price Comparison (January 2022) Natural Gas2 ($/MMbtu) Power2 ($/MWh) ~2x $25 $20 ~5x $150 $100 U.S. Northeast $15 $10 $50 West Coast 12.7 $5 10.5 $- $- Henry Hub USNE PJM 3 New England 9.5 7.6 2021 2040e 2021 5.5 2040e Debottleneck Northeast Connectivit
Slide 11: LNG Exports: U.S. Gulf Coast
LNG Exports: U.S. Gulf Coast Venice Extension USGC LNG Export Volumes Served by Enbridge facilities ~9 bcf/d • Plaquemines LNG export • US$0.4B TETCO (bcf/d) capacity by TX expansion 2025+ LA • Pending positive FID 10 Rio Bravo Pipeline Texas 8 • Rio Grande LNG Eastern Plaquemines Rio Grande1 • US$1
Slide 12: LNG Exports: W. Canadian Fundamentals
LNG Exports: W. Canadian Fundamentals Abundant Supply Horn River Proximity to Asia3 LNG Export Breakevens4 Bcf/d of natural gas production by basin Journey time to Northeast Asia Delivered Ex-Ship Breakevens ($/mmbtu) Others Deep Basin Montney 25.0 ~50% ~5-6 weeks Range of USGC Facility Breakevens r
Slide 13: LNG Exports: B.C. Pipeline Expansion
LNG Exports: B.C. Pipeline Expansion 1) T-North Expansion (~$1.0B) New Expansion LNG Terminal Opportunities – Serves production and demand growth T-North opportunities – ~400 MMcf/d expansion (2026) WCGT 1 3 – Open season underway Ksi Lisims LNG (Prince Rupert) AB 2) T-South Expansion (~$2.5B+) 4 Al
Slide 14: Liquids Mainline Update
Liquids Mainline Update Mainline Utilization Mainline Negotiation Timeline (ex-Gretna, mmbpd) 2021 2022 Dec 2021 Mid 2022 Late 2022 Mid 2023 Late 2023 Average planned 3 volumes: ~2.95 3 Stakeholder Consultation & Shipper Discussions Evaluate best path forward 2 2 Underway 1) Incentive Tolling Option
Slide 15: Liquids Expansion Potential
Liquids Expansion Potential Regional +500 kbpd available capacity Up to • Integrated North American network Pipeline and expansion potential1 $3.5B+ • Low-cost solutions support further capacity increases of near term and full-path USGC tidewater access organic growth potential Mainline +350 kbpd •
Slide 16: Liquids: Ingleside Terminal Developments
Liquids: Ingleside Terminal Developments Houston Area 1) Crude Oil Storage & Export Expansion – Late-stage development TETCO – ~2 mmbbls expansion (increase capacity to 17 mmbbls) 2) Developing Additional Export Products New – NGL export opportunities EIEC Terminal Footprint 3) Proposed 60MW+ Solar
Slide 17: Liquids: Carbon Capture & Storage
Liquids: Carbon Capture & Storage Open Access Wabamun Carbon Hub Milestones Illustrative Today 2023 2024 2025 2026 2027 Alexander Awarded Geological Validation Alexis Nakota Fort Sioux Nation First Nation Evaluation Regulatory Review FORT Rights Award of all Permits Initial phase McMurray Lac Ste. A
Slide 18: Gas Distribution Update
Gas Distribution Update Population Growth Capital Program Sanctioned Panhandle (Ontario1, MMs) in Execution Expansion 20 Existing Proposed DAWN HUB ONTARIO ONTARIO 15 19 km of NPS OTTAWA 36 Pipeline TORONTO 10 11 km of NPS 16 Pipeline NEW YORK Announced Community 5 Expansions TORONTO Storage Enhance
Slide 19: Renewables Update
Renewables Update Offshore Wind Portfolio Solar Self-Power Projects Renewable Growth Potential (Gross GW)1 >1.3 GWs Alberta Solar One 10 Onshore Wind UK 10.5 MW Offshore Wind Lambertville, NJ potential2 8 Solar 2.25 MW Germany Heidlersburg, PA 2.5 MW 6 Fécamp 497MW | 2023 Plummer Calvados 448MW | 20
Slide 20: Q1 Financial Results
Q1 Financial Results ($ Millions, except per share amounts) 2022 2021 Quarterly Drivers Liquids Pipelines 2,217 1,881 Gas Transmission & Midstream 1,058 1,007 Strong operational performance Gas Distribution & Storage 674 646 Renewable Power Generation 160 154 L3R2 in service & Ingleside acquisit
Slide 21: 2022 Financial Outlook
2022 Financial Outlook EBITDA Guidance1 DCF/share Guidance1 ($Billions) Tailwinds/Headwinds to $5.20 – $5.50 Full Year Guidance $15.0 – $15.6 $14.0 $4.96 • Strong Q1 performance • Robust system utilization • Energy Services • Rising interest rates 80% of EBITDA2 have inflation protection 2021 2022e
Slide 22: Capital Allocation Update
Capital Allocation Update 1 Protect Balance Sheet 2 Sustainable Return of Capital 3 Further Organic Growth On track for ≤ 4.7x 3% dividend increase $1.0B of capital sanctioned debt/EBITDA in 2022 (27th consecutive in 2022 annual increase) Full year benefit of L3R $10B secured growth and EIEC; $1.1B
Slide 23: Secured Growth Outlook
Secured Growth Outlook Expected Project ISD Capital ($B) Secured Capital Modernization Program 2022-2025 2.2 USD ($Billions) Gas Transmission Other Expansions 2022-2025 0.5 USD $3.9 Distribution System 2022-2024 1.8 CAD Gas $3.1 Distribution Transmission/Storage Assets1 2022-2024 0.8 CAD & Storage $
Slide 24: 3-Year Outlook Through 2024
3-Year Outlook Through 2024 DCF/share1 Outlook Growth drivers beyond 2024 Solid conventional long-term growth 5-7% CAGR through Deploy 2024 Extensive low-carbon opportunity set Execute Excess Revenue Capacity Inflators & Secured Productivity Capital Alternative attractive deployment options Enhancem
Slide 25: ESG Update
ESG Update Recent Additional Commitments (Announced February 11, 2022) What’s New Inside: Work with organizations advancing science-based guidance for Midstream1 • Update to biodiversity Sustainability approach Report Work with key suppliers on emission • Role of ESG in capital reduction plans alloc
Slide 26: Takeaways
Takeaways North American energy critical to meeting global demand ENB well-positioned for organic growth Growing FCF1 and financial strength provides capacity Disciplined capital investment framework ESG leadership a key differentiator (1) Free Cash Flow 26
Slide 27: Qs&A
Qs&A CENBRIDGE