Slide 1: Q3 Financial Results & Business Update
Al Monaco Vern Yu President & CEO Chief Financial Officer Q3 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 • Quarter Review • Energy Exports • New Energies • Financial Performance VLCC at Enbridge Ingleside Energy Center 3
Slide 4: Our Energy Perspectives
Our Energy Perspectives Global Energy Outlook Enbridge – Bridge to the Energy Future • Energy demand is increasing • Differentiated service provider • Economic growth depends on low-cost, • Comprehensive ESG & emissions targets reliable, secure energy supply • Deliberate transition of asset mix • Tr
Slide 5: Energy Markets
Energy Markets Growing Global GDP1 Growing Oil & Gas Demand2 Tight Inventory Balances (Indexed Real GDP1 Sept. 2021 Forecast) (2021 Global Demand vs. 2020) 2021 % of 5-year range for N.A. & Europe Forecast 140% Crude + Products3 +5% 120% +7% +9% 100% ~4% CAGR 80% +8% 60% 40% +17% 20% Natural Gas Sto
Slide 6: Consumer and Industrial Impacts
Consumer and Industrial Impacts Underinvestment driving energy costs higher… and, compromising reliability Consumers Industry China Year-over-year price increase as of Oct 20211 Year-over-year price increase as of Oct 20211 • Power rationing & rolling brownouts 480% • Increased coal fired generation
Slide 7: Q3 Highlights
Q3 Highlights • Robust system-wide utilization Operational • Integrity and maintenance programs progressing • Strong Q3 financial results Financial • On track to achieve 2021 full-year EBITDA and DCF/share guidance • Maintained balance sheet strength and flexibility • ~$8B of projects placed into se
Slide 8: Liquids Pipelines: Line 3 Replacement
Liquids Pipelines: Line 3 Replacement • Critical safety and reliability project • Minnesota section placed into service Oct. 1 – Restores Line 3 capacity to 760 kbpd • Southern Access Expansion to 1.2 mmbpd in-service (Superior to Chicago) • Unprecedented Indigenous participation with ~2,000 workers
Slide 9: Liquids Pipelines: Great Lakes Tunnel
Liquids Pipelines: Great Lakes Tunnel Critical Energy Delivery Infrastructure Great Lakes Tunnel Project ~65% ~70% ON QC Superior Straits of Mackinac Line 5 Of Michigan Legislature Of Michiganders MN WI NY voted in favor2 support tunnel MI Sarnia • EGLE3 Permits Awarded PA State Permitting: • MPSC4
Slide 10: Liquids Pipelines: U.S. Gulf Coast Strategy
Liquids Pipelines: U.S. Gulf Coast Strategy Cushing Heavy Crude Oil • Delivering Canadian supply to USGC refiners • Integrated heavy crude storage/blending hub Seaway • Waterborne export optionality ETCOP Cactus II Gray Oak Cactus I Epic Texas City Dock Freeport Dock Light Crude Oil Harvest SPOT EHO
Slide 11: Liquids Pipelines: Moda Midstream Acquisition
Liquids Pipelines: Moda Midstream Acquisition Ingleside Energy Center ~25% Strategic Export Infrastructure of U.S. Gulf Coast Gray Oak Harvest crude oil exports Unparalleled connectivity to long-lived, low-cost light supply in 2020 Cactus I Cactus II Contracted cash flows aligned with low-risk busin
Slide 12: Liquids Pipelines: Export Growth Outlook
Liquids Pipelines: Export Growth Outlook Growing Permian Most Competitive Embedded Organic Growth Supply & Exports1 Export Facility3 Opportunities (mmbpd) Loading Cost ($/bbl) ~+2 mmbpd • Contract 600+ kbbls/d of 7 Permian Supply Loading existing capacity 6 Capacity • Permitted for further 5 expansi
Slide 13: Gas Transmission: LNG Export Connections
Gas Transmission: LNG Export Connections LA MS AL • Supply 3 USGC LNG export facilities Texas Cameron – Annual deliveries doubled to ~1Bcf/d since 2019 Venice Eastern Extension Extension TX Plaquemines LNG • Additional connections planned or underway Cameron LNG Sabine Under construction Calcasieu P
Slide 14: Gas Transmission: Project Execution
Gas Transmission: Project Execution Westcoast: Spruce Ridge C$0.5B – In Service • T-South Reliability and Expansion Program & Spruce Ridge Project provide +590 MMcf/d of firm capacity1 T-South Expansion C$1.0B – In Service U.S. Northeast: • Middlesex Extension & Appalachia to Market Middlesex Extens
Slide 15: Gas Distribution: Project Execution
Gas Distribution: Project Execution Visible Franchise Growth Community Expansions Total EGI Natural Gas Connections (in ‘000s) 4,000 New connections 3,800 OTTAWA 3,600 TORONTO 3,400 Announced Community 3,200 Expansions 2015 2016 2017 2018 2019 2020 2021e • Natural gas provides affordable and reliabl
Slide 16: Gas Distribution: Low-Carbon Update
Gas Distribution: Low-Carbon Update Current Renewable Natural Gas projects reduce Low-Carbon Investments • 3 projects currently in service >108,000 tCO2 emissions • 4 additional projects in construction H2 Gatineau H2 Blending | 2023 ONTARIO annually • Developing 10-15 opportunities RNG NEW Disco Ro
Slide 17: Renewables: Offshore Project Execution
Renewables: Offshore Project Execution ~4.5GW in Construction & Development1,2 Saint Nazaire 480 MW (122 MW net) • 35 of 80 foundations installed UK • On track for late 2022 ISD Ireland Albatros | 2019 Dunkirk | 580 MW3 Rampion | 2018 Hohe See | 2019 Fécamp 497 MW (89MW net) Germany • Foundation fab
Slide 18: Renewables: Solar Self-Power
Renewables: Solar Self-Power • ~55 MW of generation in Alberta Solar 1 operation & under construction 10.5 MW Lambertville – 3 in service 2.3 MW – 4 under construction Vesper, WI | 2022 – ~70 ktCO2e year 1 GHG reduction Adams, WI | 2022 Portage, WI | 2021 • Near-term potential for Flanagan, IL | 202
Slide 19: New Energies Strategy Update
New Energies Strategy Update Execute on Embedded Dedicated New Energies Strategic Partnerships Bring Low-Carbon Growth Team Strengthens Focus Technology and Capabilities Develop N.A. low-carbon RNG H2 CCUS Renewable Power solutions across H2, RNG, • European offshore wind CCUS, & Renewables Liquids
Slide 20: Financial Dashboard
Financial Dashboard Strength and Flexibility Cash Flow Resilience Predictable Growth BBB+ Investment Grade 95% 2021 Financial $13.9- Credit Metrics Ratings Reaffirmed Customers2 of customers Results on Track 14.3B of EBITDA Asset Sales1 ~$9B Percent Regulated, 98% Growth Capital ~$10B since 2018 Tak
Slide 21: Q3 2021 Financial Results
Q3 2021 Financial Results Q3 YTD ($ Millions, except per share amounts) 2021 2020 2021 2020 Quarterly Drivers Liquids Pipelines 1,898 1,732 5,623 5,395 Gas Transmission & Midstream 986 945 2,928 3,017 Strong performance across business units Gas Distribution & Storage 296 315 1,403 1,330 89 93 356
Slide 22: 2021 Financial Outlook
2021 Financial Outlook EBITDA Guidance1 ($B) DCF/share Guidance1 • Favorable • Solid system-wide interest expense $13.9 - $14.3 utilization $4.70 - $5.00 • Cash tax savings $13.3 $4.67 • Moda acquisition • Maintenance capex • Energy Services • Warmer weather • Weaker USD2 (Partially hedged) 2020 202
Slide 23: Preliminary 2022 Outlook
Preliminary 2022 Outlook EBITDA Outlook1 ($B) $13.9 - $14.3 • Annualized benefit of 2021 growth capex $13.3 • Moda acquisition • Energy Services • Weaker USD2 (Partially hedged) 2020 2021e 2022e Roll out of 2022 guidance and 3-year strategic plan priorities at Enbridge Day (1) Adjusted EBITDA is a n
Slide 24: Strong Financial Position
Strong Financial Position 6.0x Debt/EBITDA • 2021 financing plan completed at attractive rates 5.5x – Includes $2.4B of sustainability-linked bonds Target Range: 4.5x – 5.0x1 • Expect to exit 2021 within target D/EBITDA range 5.0x 4.5x • 2022 expected to be at low end of target range – EBITDA contri
Slide 25: Capital Allocation Priorities
Capital Allocation Priorities ~$5-6B of Annual Investable Capacity2 1 Preserve • Strong BBB+ credit ratings Financial Strength • Maintain debt-to-EBITDA within 4.5-5.0x Incremental Capacity: • Share buybacks • Further organic projects • Debt reduction ~$2B • Targeting mid-point of 60-70% DCF1 • Asse
Slide 26: Enbridge Day
Annual Investor Day Enbridge Da y • 3-year plan strategic priorities 2021 • 2022 financial guidance & dividend Toronto, ON (In-Person Event, with Live Video Webcast) • Capital allocation & growth outlook Tuesday, December 7 26
Slide 27: Takeaways
Takeaways Delivering on strategic priorities 3-Year Plan Priorities On track to achieve 2021 guidance range Enhance Returns from Existing Business $10B of capital in service (2021) Execute Secured Positioned for growth – conventional Capital Program & low-carbon Disciplined Capital Allocation 2021 i
Slide 28: Qs&A
Qs&A CENBRIDGE