Enbridge Inc. · TSX:ENB

Enbridge — Q2 2023 Earnings Presentation

18 slides from Enbridge's earnings presentation, Aug 4, 2023

  1. Slide 1: Second Quarter Update

    Second Quarter Update August 4, 2023 Greg Ebel President & CEO Pat Murray EVP & CFO

  2. 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

  3. Slide 3: Agenda

    Agenda • Mid-year Check-in • Business Update • ESG Update • First-choice Investment • Financial Results 3

  4. Slide 4: Mid-Year Check In

    Mid-Year Check In Status Strong financial • YTD performance on track, guidance re-affirmed results • Debt/EBITDA in lower half of target range (4.5x-5.0x) • Negotiated Mainline Tolling agreement in Principle • Extended & upsized Flanagan South open season Q4 • Sanctioned Enbridge Houston Oil Termina

  5. Slide 5: Liquids Pipelines Highlights

    Liquids Pipelines Highlights Mainline Competitive Liquids System Line 5 • Record 1H Mainline volumes (~3.1mmbpd) • FSP1 open season extended & upsized • Attractive transportation access to 64 refineries; ~75% of N.A. refining capacity2 Flanagan South Features of win-win-win Mainline tolling agreemen

  6. Slide 6: Gas Transmission Highlights

    Gas Transmission Highlights Aitken BC Creek Gas T-North TX Venice Ksi Lisims LNG Storage Cameron Extension Extension LNG Canada Tres Plaquemines AB LA CGL1 Texas Palacios Cameron LNG Cedar LNG Montney LNG Basin Eastern Sabine Alliance Pass Calcasieu Pipeline Rio Bravo Freeport LNG Pass LNG T-South D

  7. Slide 7: Gas Distribution Highlights

    Gas Distribution Highlights Customer Connections Realized ROEs 3.9+ 12% Base ROE Actual ROE 10% 8% ~3.5 Predictable Consistently 6% achieving rate base growth 4% allowed returns 2% 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023e 2018 2019 2020 2021 2022 2 2023e • 21K customer adds in first half of

  8. Slide 8: Renewables Highlights

    London UK Germany Renewables Highlights Paris France Europe Calgary • French Offshore Wind projects under construction – Fécamp (497MW | Q1 2024); First turbine installed – PGL (24MW | Q1 2024); All floaters installed – Calvados (448MW | 2025) North America • >4.5 GW of projects in development Dalla

  9. Slide 9: Published 22nd Sustainability Report

    Published 22nd Performance against ESG goals Sustainability Report GHG Emissions Net Zero GHG Intensity Emissions Highlights Intensity Reduction 27%1 18% 35% 2018 2030 2018 2050 • Expanded methane reporting in 2022 • Advancing discussions with key suppliers on Scope 3 emissions Diversity & Inclusion

  10. Slide 10: Industry Leading Cash Flows

    Industry Leading Cash Flows Diversified Asset Base Utility-Like Cash Flows of EBITDA from assets (2023e EBTIDA) Fee for service & <2% subject to commodity risk Commodity exposed Take-or-Pay+1 GTM US Transmission2 Regional Oil Sands >95% of customers are Gas Transmission 51% LP US Market Access Pipel

  11. Slide 11: First-Choice Investment Opportunity

    First-Choice Investment Opportunity Value Drivers 4 1.2 Diversified Low-Risk $3.55/sh Pipeline / Utility Model 3.5 Capital 1 3 appreciation + dividend growth 0.8 Reliable Cash Flows & Strong Balance Sheet ~12% 2.5 2 0.6 TSR since 28 Years of Annual 1.5 2002 0.4 Dividend Increases 1 0.5 0.2 ~5% Mediu

  12. Slide 12: Q2 Financial Results

    Q2 Financial Results Q2 YTD ($ Millions, except per share amounts) 2023 2022 2023 2022 Quarterly Drivers Liquids Pipelines 2,471 2,095 4,825 4,312 Gas Transmission & Midstream 1,033 1,084 2,222 2,142  Record Q2 Mainline volumes Gas Distribution & Storage 367 422 1,083 1,096  Lower provision on Mai

  13. Slide 13: 2023 Guidance Maintained

    2023 Guidance Maintained Adjusted EBITDA 1 DCF/share1 Tailwinds/Headwinds Budget Quarterly ($B) to Guidance Profile (Remaining 6 months) Adj. EBITDA & DCF1 $15.9 – $5.25 – $16.5 $5.65 $15.5 $5.42 $14.0 $4.96 Strong operating performance Lower Mainline Toll effective July 1 Higher interest rates 2021

  14. Slide 14: Medium-Term Outlook

    Medium-Term Outlook Near-term outlook 2022 to 2025 EBITDA1 CAGR: 4%-6% ~2% Deploying ~5% EPS1 CAGR: 4%-6% Will track approximately CAGR Investment with EBITDA ~1-2% Capacity DCF/s1 CAGR: ~3% Secured • Robust opportunity set Modest headwinds from • Tuck-in M&A tax legislation ~1-2% Organic Growth • S

  15. Slide 15: Disciplined Capital Allocation

    Disciplined Capital Allocation Annual Investment Capacity Balance • Preserve financial strength and flexibility ~$11B ~$7B Sheet Strength • Maintain leverage within 4.5x – 5.0x target Sustainable • Dividend growth up to medium-term DCF/share growth ~$2B ~$6B Return of Capital • Opportunistic share r

  16. Slide 16: Secured Capital Program

    Secured Capital Program Executing on $19B Project Expected ISD Capital ($B) Secured Program Ingleside Phase VI (Storage) 2024 0.1 USD Liquids Pipelines Enbridge Houston Oil Terminal 2025 0.2 USD ~$13B Modernization Program 2023-2026 2.7 USD Appalachia to Market Phase II 2025 0.1 USD Venice Extension

  17. Slide 17: Key Takeaways

    Key Takeaways Resilient low-risk business model Strong supported by scale, diversification, Total Return and high-quality cash flows Returning capital through sustainable and growing dividend & opportunistic share repurchases Predictable Low-Risk Cash Flow Business Growth Growth through business opt

  18. Slide 18: ENBRIDGE

    ENBRIDGE

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