Slide 1: Q1 2019: Financial Results & Business Update
Q1 2019: Financial Results & Business Update May 10, 2019 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 and shareholders of Enbridge Inc. (Enbridge or the Company) with information about Enbridge and its subsidiaries and affiliates, including manag
Slide 3: Agenda
Agenda • Strategic Position • First Quarter Results • Business Update • Financial Results • Continuing Priorities Line 3 Replacement 3 3
Slide 4: Position of Strength
Position of Strength ENB Value Proposition Pipeline/utility model Solid operations Consistent financial performance Financial flexibility Streamlined business & structure 4
Slide 5: Q1 2019 Consolidated Financial Results
Q1 2019 Consolidated Financial Results For the 3 months ended Mar 31, $ millions Adjusted EBITDA DCF Adjusted Earnings $3,769 $3,406 $1,640 $2,758 $1,375 $2,312 2018 2019 2018 2019 2018 2019 Q1: $1.37/ share $1.37/ share Q1: $0.82/ share $0.81/ share Strong results driven by solid operating performa
Slide 6: Liquids Business Update
Liquids Business Update Operational Update 2019: Additional Mainline Average Mainline Throughput Optimizations (ex-Gretna throughput MMbpd) 2,750 2,717 Edmonton 2,685 2,625 2,636 50- Record Hardisty 2,578 volumes Kerrobert 100 2,500 2,530 in 1Q19 kbpd Regina Cromer 2,250 Gretna ND Superior MN WI 2,0
Slide 7: Line 3 Replacement Project ~$9B
Liquids Business Update Line 3 Replacement Project • Critical energy infrastructure replacement • Canadian construction expected to be complete Edmonton by end of May 2019 Hardisty • Wisconsin segment complete and in-service Kerrobert • North Dakota regulatory and permitting complete Regina In servi
Slide 8: Line 3 Minnesota Permitting Timeline
Liquids Business Update Line 3 Minnesota Permitting Timeline Minnesota Pollution Control Agency (MPCA) 401 Water Quality Certification Timetable TODAY OCT ‘18 NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Oct 30, ‘18 Nov 2018 – Apr 15 Permit Mid-late MPCA completeness review and draft Apr
Slide 9: Mainline Contract Offering
Liquids Business Update Mainline Contract Offering Design Considerations • Incorporating feedback from producers (large & small), integrateds, refiners, marketers • Single Transportation Service Agreement (TSA) that fulfills regulatory requirement for open and fair access Key Offering Features • Pri
Slide 10: Rate Case Proceedings Update
Gas Transmission Business Update Rate Case Proceedings Update Texas Eastern: East Tennessee: Algonquin: • Section 4 Rate Case filed Nov 2018 • Nearing completion of Section 5 Rate • Preparing for early stage rate discussions • Potential for revenue enhancement with Case proceedings with customers in
Slide 11: Growth Opportunities
Gas Transmission Business Update Growth Opportunities W. Canada Northeast & • T-North and T-South expansions New England • Alliance and Aux Sable expansion • Enhance U.S. northeast opportunities connectivity between regional supply and growing • NGL infrastructure solutions power and LDC demand • We
Slide 12: Operational Update
Utilities Business Update Operational Update Gas Deliveries (Billions of cubic feet) Utility Amalgamation 7 11% Record 6 distribution OEB allowed ROE Actual ROE Jan & Feb 2019 10% Expected 5 range of Daily Consumption1 Actual ROE 4 9% 3 ~9% Allowed ROE 2 8% 1 0 7% Jan-18 Mar-18 May-18 Jul-18 Sep-18
Slide 13: Utility Growth Outlook
Utility Growth Outlook Ontario population Growth through Dawn to Parkway system growth forecast community expansions expansion project 18.5 OTTAWA million 14 ON million TORONTO NY DAWN MI HUB Kirkwall Hamilton DETROIT project PA Expansion community OH 2018 2020 2025 2030 2035 2040 Source: Ontario Mi
Slide 14: Enterprise-wide Secured Growth Project Inventory
Enterprise-wide Secured Growth Project Inventory Project Expected ISD Capital ($B) AOC Lateral Acquisition In-service 0.3 CAD Stratton Ridge 2Q19 0.2 USD Generation Pipeline Acquisition 2H19 0.1 USD 2019 Hohe See Wind & Expansion – Germany 2H19 1.1 CAD Gray Oak Pipeline 4Q19 0.7 USD Utility Growth C
Slide 15: Consolidated Adjusted EBITDA
Q1 2019 Financial Performance Consolidated Adjusted EBITDA Q1 2019 vs. Q1 2018 Adjusted EBITDA Liquids Pipelines (C$ Millions, except per share amounts) + Higher throughput and tolls on the Mainline System Q1 2018 Q1 2019 + Higher volumes on Flanagan South and Seaway pipelines + Higher Bakken Pipeli
Slide 16: Consolidated DCF
Q1 2019 Financial Performance Consolidated DCF Q1 2019 vs. Q1 2018 Distributable Cash Flow + Adjusted EBITDA drivers noted in previous slide (C$ Millions, except per share amounts) Q1 2018 Q1 2019 – Higher financing costs reflecting incremental debt/preferred equity issued since Q1 2018, offset by i
Slide 17: Re-affirming 2019 Financial Outlook
Re-affirming 2019 Financial Outlook 2019 Distributable Cash Flow (Consolidated DCF/share ) 1 Q1 STRENGTH • Energy Services $4.42 $4.30 – 4.60 • Colder weather in Utilities franchise area Q2-Q4 HEADWINDS: $3.68 • Line 3 delay • Integrity expense • Other O&A timing 2017 2018 2019e Strong start to 2019
Slide 18: Financial Strength & Flexibility
Financial Strength & Flexibility Consolidated DEBT to EBITDA1 Enbridge Inc. Sr. Unsecured Debt Ratings2 6.0x 5.5x Standard & Poors BBB+ Target Range: stable 4.5x to comfortably below 5.0x 5.0x Fitch BBB+ stable 4.5x 4.0x DBRS BBB High stable 3.5x Moody’s Baa2 Upgraded Jan. ‘19 positive 3.0x 2016 201
Slide 19: Key Priorities for 2019
Key Priorities for 2019 ENB Value Proposition 1 Achieve 2019 DCF guidance range of $4.30 - 4.60/share 2 Focus on Line 3 Replacement milestones 3 Advance priority access on Mainline 4 Extend secured growth Line 3 Construction 5 Maintain balance sheet strength & flexibility Line 3 Replacement 19
Slide 20: Q&A
Q&A ZENBRIDGE