Slide 1: Bridge to the Energy Future
Bridge to the Energy Future Al Monaco Colin Gruending President & CEO Chief Financial Officer Q4 Financial Results & Business Update
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 • Energy Landscape • 2020 in Review • Business Update • Financial Results • Capital Allocation Priorities Enbridge – The Bridge to the Energy Future 3
Slide 4: Energy Landscape
Energy Landscape Key Macro Recent Enbridge Drivers Developments Position Global Primary Energy Demand3 • Accelerating low carbon policies Diversified (Gtoe) Pace of Energy asset mix; Transition • Affordable & reliable energy critical to global economic restart Optionality +20% • Covid-19 2nd Wave Co
Slide 5: Natural Gas Fundamentals
Natural Gas Fundamentals Continued Growth in Increasing U.S. Global Demand1 (bcf/d) LNG Exports2 (bcf/d) • 2020 global gas demand fell by 4% vs. 2019 400 10 • Steady recovery underway; essential to economic growth 300 8 • U.S. LNG exports grew 31% 6 in 2020 200 4 • Strong 2021 global winter 100 dema
Slide 6: Crude Energy Fundamentals
Crude Energy Fundamentals Global Refined Product Global Crude Oil Demand Annual U.S. Crude Demand1 (mmbpd) Outlook1 (mmbpd) Exports2 (annual average, mmbpd) 25.0 -4% 120 4.0 Pre-COVID-19 20.0 -30% -9% -3% 90 3.0 15.0 +2% -0.3% Base Case Scenario 10.0 Second Wave Scenario 60 2.0 5.0 -46%-32% 30 1.0 0
Slide 7: Longevity of Cash Flows
Longevity of Cash Flows Gas Transmission Gas Distribution Liquids Pipelines Serves >170MM people in regional markets Serves >14MM people in utility franchise Serves >12MMBPD of refining capacity 15 bcfd Current demand Gas-fired plant attached ONTARIO ~1 mmbd 4 ~1 bcfd 14 0.3 mmbd 18 bcfd OTTAWA mmbd
Slide 8: 2020 in Review
2020 in Review Predictable Cash Flows • Strong operational performance; Full-year Guidance range Actual results DCF/share above guidance mid-point • $1.6B of capital projects placed into service; Line 3 Minnesota segment under construction Adjusted Earnings/share1 DCF/share • Increased ESG goals; em
Slide 9: Liquids Business Update
Liquids Business Update WCSB Supply Recovery2 (mmbpd) 4.8 • Oilsands supply close to 4.6 3.9 4.0 4.2 pre-COVID levels Eastern Canada 80% 88% • USGC heavy demand-pull; Mainline Oct Jan ’21 declining waterborne imports 1Q 2Q 3Q 4Q 1Q21e Flanagan South & 101% 112% Oct Jan ’21 Mainline Throughput Ou
Slide 10: Line 3 Replacement – Minnesota
Line 3 Replacement – Minnesota • Extensive 6-year review Pipeline Construction Pump Station Construction complete; robust record • Final permits and regulatory approvals received • Commenced construction December 2020 • World class environmental, health and safety protocols • Environmental protectio
Slide 11: Line Replacement – Capital Update
Line 3 Replacement – Capital Update AB SK Initial Project Estimate1 $8.2B Edmonton (Canadian & U.S. segments, source currency) Hardisty Winter construction $0.4B BC 13% Kerrobert Additional environmental measures $0.4B increase U.S. Regina Completed in project Financing & regulatory2 $0.2B costs Can
Slide 12: Other Liquids Updates
Other Liquids Updates Mainline Contracting Line 5 Carbon Capture Refiner / Benefit Producer Integrated 540kbpd of essential energy supply Emissions Reduction Potential2 Mtap Secures Supply/Demand for ON 200 WCSB Production Superior Stable and Competitive Tolls Tunnel MN Flexible Contracts 100 WI Lin
Slide 13: Gas Transmission Business Update
Gas Transmission Business Update 2020 Performance Spruce Ridge | 2021 • Highly predictable results, despite Covid-19 • $160MM+ of additional ongoing EBITDA through T-South Expansion | 2021 Atlantic Bridge Phase 3 In Operation successful rate settlements Middlesex Extension • Executed USD $0.7B moder
Slide 14: Gas Utility Business Update
Gas Utility Business Update 2020 Performance Outaouais1 Hydrogen St. Laurent Replacement | 2022 ~$3B ONTARIO Blending | 2023 • Strong earnings growth driven by customer additions and amalgamation synergy capture in execution Dufferin RNG from 2021-23 2021 OTTAWA • $0.5B growth capital placed into se
Slide 15: Renewables – Offshore Wind
Renewables – Offshore Wind 2020 Performance • Solid operating & financial results ~$2B Hohe See & Albatros | In Operation of offshore wind Ireland in execution UK • Commenced construction of 480MW from 2021-23 Rampion | In Operation Saint Nazaire and 500MW Fécamp projects Germany • Construction prog
Slide 16: Renewables – Self-Power
Renewables – Self-Power Heidlersburg | 2.5 MW • Several hundred MWs of self-power generation opportunities through 2023 ~$0.5B of opportunity from 2021-23 • Potential for 15-20 projects Heidlersburg • 1st facility in operation on Texas Eastern 2021 Alberta Solar One • 2 facilities in construction Q1
Slide 17: ESG Leadership – Targeting Net-Zero by 2050
ESG Leadership – Targeting Net-Zero by 2050 Pathways Performance ENB Top Sector ESG Ratings (million tonnes CO2e) Modernization Self-Power S&P Global Ratings Top among N.A. New & Innovation With Renewables midstream peers MSCI ESG A rating Scope 2 ISS ESG QualityScore E&S QualityScore: Lowest risk,
Slide 18: Strong 3-Year Plan Free Cash Flow Growth
Strong 3-Year Plan Free Cash Flow Growth DCF/share1 $5-6B of Annual Financial Capacity ~4-5% 5-7% DCF/s1 CAGR Debt $4.67 ~1-2% through 2023 Capacity2 Enhance Returns Execute $16B Secured Capital Program • Toll escalators Liquids ~$6B • Productivity improvements GTM ~$5B Investable • Capacity optimiz
Slide 19: Delivering on Financial Priorities
Delivering on Financial Priorities Strength & Flexibility Cash Flow Resilience Predictable Growth Credit Metrics BBB+ Investment Grade Customers1 95% 2021 DCF/share2 Growth Outlook ~4% Ratings Reaffirmed up from 93% Reliable growth Balance Sheet 4.6x Percent Regulated, Take-or-Pay, CTS 98% 2021 Divi
Slide 20: 2020 Financial Results Summary ($ millions)
2020 Financial Results Summary ($ millions) Adjusted EBITDA1 Adjusted Earnings1 Distributable Cash Flow1 $13,273* $13,271 $9,440 $9,224 $5,341 $4,894 Q4 Q4 $3,201 $3,186 $2,209 $2,051 $1,228 Q4 $1,132 2020 2019 2020 2019 2020 2019 *$13.5B after considering Covid-19 Q4: $0.56/ share $0.61/ share Q4:
Slide 21: 2020 Adjusted EBITDA
2020 Adjusted EBITDA Full Year 4th Quarter ($ Millions) 2020 2019 2020 2019 4Q20 vs. 4Q19 Higher IJT toll & L3R Canada Surcharge, lower costs Liquids Pipelines 7,182 7,041 1,787 1,720 Light deliveries on Mainline and other systems Capacity restriction on Texas Eastern; 2019 asset sales Gas Tra
Slide 22: 2020 DCF Per Share
2020 DCF Per Share Full Year 4th Quarter ($ Millions, except per share amounts) 2020 2019 2020 2019 4Q20 vs. 4Q19 Adjusted EBITDA1 13,273 13,271 3,201 3,186 New assets placed into service (Hohe See, Gray Oak) Cash distributions in excess of equity earnings 649 534 170 107 DCP distribution cut an
Slide 23: Secured Capital Execution
Secured Capital Execution Project Expected ISD Spent to Date1 ($B) Capital ($B) Capital Program Advancing Line 3R – U.S. Portion 2021 2.0 USD 4.0 USD Liquids Pipelines Southern Access Expansion Other Liquids 2021 2021 0.5 USD 0.1 USD 0.5 USD 0.1 USD ~$10B Atlantic Bridge 2021 0.1 USD 0.1 USD expecte
Slide 24: Funding Plan Update
Funding Plan Update Growing EBITDA from Strong Financial 2021 Funding Plan Secured Projects 6.0x Position (Debt/EBITDA) ($B) 5.5x ~$3 Target Range: 4.5x – 5.0x2 Debt Maturities ~$5 5.0x Debt Funding ~$2B+ Incremental 4.5x 4.6x ~$7 ~$2 EBITDA1 Secured Growth 2020 Pre-Funding 4.0x Capital Spend ~$4 3.
Slide 25: 2021 Financial Outlook
2021 Financial Outlook EBITDA Guidance1 DCF/share Guidance1 Macro Environment ($B) Considerations $13.9 - $14.3 $4.70 - $5.00 • Earnings/Cash flows $13.3 $4.67 Strengthening largely hedged Canadian Dollar • U.S. dollar debt translation improvement Counterparty • Strong investment grade Credit Risk c
Slide 26: Approach to Capital Allocation (2022+)
Approach to Capital Allocation (2022+) Priorities Deployment of $5-6B of Annual Financial Capacity 1 Preserve High Priority Investments Deployment of Incremental Financial Strength Drive Sustainable Capacity Drives Additional Long-Term Growth Growth and Value 2 Sustainable Dividend Growth $3-4B annu
Slide 27: Enbridge – The Energy Bridge to the Future
Enbridge – The Energy Bridge to the Future UK Belgium • Best in class infrastructure franchises France Germany • Resiliency and longevity of cash flows Gas Distribution & Storage • Leading energy transition position • Transparent long-term growth outlook Liquids Pipelines • Growing investible free c
Slide 28: Qs&A
Qs&A CENBRIDGE