Enbridge Inc. · TSX:ENB
Enbridge — Enbridge Energy Management L L C — Q3 2018 Earnings Presentation
22 slides from Enbridge's earnings presentation, Nov 2, 2018
Slide 1: Q3 2018: Financial Results & Business Update
Al Monaco, Chief Executive Officer | John Whelen, Chief Financial Officer November 2, 2018 Q3 2018: Financial Results & Business Update
Slide 2: Legal Notice: Forward Looking Information
Legal Notice Forward Looking Information This presentation includes certain forward looking statements and information (FLI) to provide potential investors, shareholders and unitholders of Enbridge Inc. (Enbridge or the Company), Enbridge Income Fund Holdings Inc. (ENF), Enbridge Energy Partners, L.
Slide 3: Agenda
Agenda Progress on strategic priorities and Q3 Business update Financial results review Line 3 Replacement
Slide 4: Significant progress advancing key strategic priorities
Significant progress advancing key strategic priorities Progress on Strategic Priorities in 2018 First Half Q3 Strong operating and financial results $7.5B non-core asset sales announced Issued $3B hybrids SV simplification, buy-in offers Line 3 replacement MPUC approval Other project execution $1.6
Slide 5: Q3 2018 Consolidated Financial Results Summary
Q3 2018 Consolidated Financial Results Summary Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) and Distributable Cash Flow (DCF) are non-GAAP measures. For more information on non-GAAP measures please refer to disclosure in the Q3 earnings release and MD&A a
Slide 6: Enterprise-wide Secured Growth Project Inventory
Enterprise-wide Secured Growth Project Inventory Segments: Liquids Pipelines GTM – US Transmission GTM – Canadian Transmission Gas Distribution Green Power & Transmission Project Expected ISD Capital ($B) 2019 Stratton Ridge 1H19 0.2 USD PennEast 2H19 0.3 USD Hohe See Wind & Expansion – Germany 2H19
Slide 7: New Projects in Service
New Projects in Service Natural Gas: NEXUS/TEAL - US$1.5B Natural Gas: Valley Crossing - US$1.6B Providing Marcellus and Utica natural gas to markets in Ohio, Michigan and Ontario In service October 2018 ~1.4 Bcf/day of capacity Providing export capacity to support Mexican demand Header system in se
Slide 8: Line Replacement Project Update
Line 3 Replacement Project Update Critical $9B infrastructure replacement project Canadian construction program well underway > 850 km of pipeline now laid (over 80%) Wisconsin segment complete and in-service ~13 mile segment Minnesota PUC approved issuing a Certificate of Need and Route Permit subs
Slide 9: WCSB Crude Oil Market Fundamentals
WCSB Crude Oil Market Fundamentals Liquids Pipelines Business Update Restoring Capacity 2H2019 Capacity (KBPD) Line 3 Replacement +375 Incremental Capacity Post Line 3 System DRA Optimization +75 BEP Idle +100 Incremental Capacity 2020+ Line 4 Capacity Restoration +25 System Station Upgrades +100 So
Slide 10: Utilities Business Update: Proceeding with Amalgamation
Union Gas EGD TORONTO DETROIT Dawn Storage Hub ON QC NY MI MN OTTAWA Proceeding with Amalgamation Utilities Business Update OEB Approved Incentive Framework Provides regulatory certainty Allows control and flexibility over operations Enables significant efficiencies One of the Largest Utility Franch
Slide 11: FERC Update and Outlook
Expect no material impact from FERC policy statement changes FERC Update and Outlook Gas Transmission Business Update No material financial impact from FERC policy actions Does not impact pipelines in corporate structures Does not impact negotiated rate agreements 501-G filings demonstrate ROE’s wit
Slide 12: Executing on Plan to Simplify Structure
Executing on Plan to Simplify Structure Sponsored Vehicles Benefits for SV Shareholders Direct ownership in largest energy infrastructure Company in North America Enhanced dividend coverage Diverse opportunity set for growth beyond 2020 Stronger balance sheet and enhanced credit profile Enhanced tra
Slide 13: Consolidated Adjusted EBITDA Performance Q3 2018
Consolidated Adjusted EBITDA Performance Q3 2018 Liquids Pipelines + Higher throughput and IJT on the Mainline System + Higher average rate on Canadian Mainline FX hedges + New projects placed into service Gas Transmission and Midstream + New projects placed into service + Favourable commodity price
Slide 14: Consolidated DCF Performance Q3 2018
Consolidated DCF Performance Q3 2018 (1) Adjusted EBITDA, DCF and DCF per share are non-GAAP measures. Reconciliations to GAAP measures can be found in the Q3 earnings release available at www.enbridge.com (C$ Millions, except per share amounts) 3Q17 3Q18 Consolidated Adjusted EBITDA1 2,586 2,958 Ma
Slide 15: Financial Guidance Reiteration
Financial Guidance Reiteration Strong year to date performance expected to drive full year DCF/share to the upper half of guidance range Adjusted EBITDA is a non-GAAP measure. Reconciliations to GAAP measures can be found in the Q3 earnings release available at www.enbridge.com. $3.68 2018 DCF/share
Slide 16: Spectra Energy Partners (SEP) Financial Results
3Q18 vs. 3Q17 DCF Analysis Increased earnings from expansion projects placed into service Higher operating and pipeline integrity costs and maintenance capital expenditures Higher equity earnings (including expansion projects under construction in 2017 and not yet generating cash distributions) Spec
Slide 17: Enbridge Energy Partners (EEP)
Enbridge Energy Partners (EEP) Adjusted EBITDA and DCF are non-GAAP measures. Reconciliations to GAAP measures can be found in the supplemental slides available at www.enbridgepartners.com 1) As reported, after internal adjustments for trailing 12 months. 3Q18 vs. 3Q17 DCF Analysis Increased through
Slide 18: Enbridge Income Fund Holdings (ENF) & Fund Group
Enbridge Income Fund Holdings (ENF) & Fund Group Adjusted EBITDA and DCF are non-GAAP measures. Reconciliations to GAAP measures can be found in the ENF Q3 earnings release and MD&A available at www.enbridgeincomefund.com. 1) As reported, after internal adjustments for trailing 12 months. 3Q18 vs. 3
Slide 19: Funding Plan Execution and Debt to EBITDA Profile
(1) Includes amounts “pre-funded” in December 2017 (2) Twelve month trailing Debt: EBITDA as calculated by Management.. Consolidated Debt to EBITDA Profile2 As presented at ENB Days 2017 2018 – 2020 Secured Funding Plan1($C billions) Capital Expenditures Sr. Debt Reduction Internal cash flow net of
Slide 20: Progress on strategic priorities summary
1. Move to pure regulated pipelines/ utility model $7.5B of non-core asset sales announced in 2018 Original target $3B 2. Accelerate de-leveraging $5.7 billion of asset sales proceeds received in Q3 Achieved 5.0x Debt-to-EBITDA target level 4.7x consolidated Debt-to-EBITDA as at Q3 Suspending the DR
Slide 21: Enbridge Day 2018 Annual Investment Community Conference
Enbridge Day 2018 Annual Investment Community Conference Tuesday, December1i | New York Meeting will also be available via webcast
Slide 22: Q&A / Forward-Looking Statements
Q&A Forward-Looking Statements This communication includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on the beliefs and assumptions of Enbridge Inc. (“Enbri
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