Enbridge Inc. · TSX:ENB
Enbridge — Q1 2021 Earnings Presentation
23 slides from Enbridge's earnings presentation, 2021
Slide 1: Q1 Financial Results & Business Update
Al Monaco Colin Gruending President & CEO Chief Financial Officer Q1 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 • Business Priorities Update – Enhancing returns – Executing secured capital program – Advancing organic opportunity set • Capital Allocation Priorities • Financial Results & Outlook 3
Slide 4: Global Energy Demand Accelerating
Global Energy Demand Accelerating Global Crude Refined Product Demand3 • Vaccination roll-out gaining steam (mmbpd, % growth relative to 2019 demand) +3% 25.0 +2% 20.0 • $20+ trillion in global stimulus programs 15.0 +2% incentivising economic activity1 10.0 5.0 -7% 0.0 2019 2020 2019 2020 2019 2020
Slide 5: Resilient Utility-Like Performance
Resilient Utility-Like Performance Liquids Pipelines Gas Transmission Gas Distribution & Storage (Liquids Mainline Throughput, mmbpd) (Texas Eastern Daily System Deliveries, Bcf/d) (Winter system deliveries Bcf/d) 12 3500 10 3000 9.7 9.6 8 9.5 9.4 2.8 8.6 7.5 8 7.3 2500 2.5 2.6 2.7 2.6 7.1 2000 6 6
Slide 6: Approach to Energy Transition
Approach to Energy Transition N.A. Export Modernize the Renewable Power Low-Carbon Strategy Base Investments Opportunities • Positioned to meet crude • Multi year modernization • Visible offshore wind • Early investment in H2, and LNG export demand program on GTM assets growth portfolio RNG, & CNG •
Slide 7: Strengthening Our Base Business
1 Enhance Returns from Existing Business 2 Execute Secured Capital Program 3 Further Organic Opportunity Strengthening Our Base Business Regulatory Updates Productivity Improvements Built-in Revenue Escalators (% of EBITDA) Optimizing Power Regulatory Texas Eastern • + ~C$125MM EBITDA Terminal Flow
Slide 8: Secured Capital Program Drives $2B EBITDA Growth
1 Enhance Returns from Existing Business 2 Execute Secured Capital Program 3 Further Organic Opportunity Secured Capital Program Drives $2B EBITDA Growth Expected Spent to Project ISD Date1 ($B) Capital ($B) Incremental EBITDA Liquids Line 3R – U.S. Portion 2021 2.8 USD 4.0 USD Growth from Secured P
Slide 9: Construction Progress on Secured Capital Program
1 Enhance Returns from Existing Business 2 Execute Secured Capital Program 3 Further Organic Opportunity Construction Progress on Secured Capital Program Gas Transmission Gas Distribution & Storage Renewable Power $5B in execution through 2023 $3B in execution through 2023 $3B in execution through 2
Slide 10: Line 3 Replacement Update
1 Enhance Returns from Existing Business 2 Execute Secured Capital Program 3 Further Organic Opportunity Line 3 Replacement Update • Parallel execution on 5 spreads and 8 facilities on schedule • Planned pipeline construction pause (April-early June) • Strong Covid-19 protocols • Local social & econ
Slide 11: Line 5 Update
1 Enhance Returns from Existing Business 2 Execute Secured Capital Program 3 Further Organic Opportunity Line 5 Update Critical Infrastructure Great Lakes Tunnel Project ON QC Additional Uses Ventilation Duct (e.g. Fiber Optics) Superior Pipeline Line 5 MN WI MI Tunnel Sarnia Design PA OH • EGLE2 Pe
Slide 12: 3 Year Cash Flow Growth Outlook (2021-2023)
1 Enhance Returns from Existing Business 2 Execute Secured Capital Program 3 Further Organic Opportunity 3 Year Cash Flow Growth Outlook (2021-2023) 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 $17B Secured Capi
Slide 13: Post-2023 Organic Opportunity Set
1 Enhance Returns from Existing Business 2 Execute Secured Capital Program 3 Further Organic Opportunity Post-2023 Organic Opportunity Set Ireland Offshore Wind UK Development Germany Westcoast LNG France Exports Solar Self-Powering Utility Franchise Growth Further Egress Opportunities Connect Power
Slide 14: Export Strategy
1 Enhance Returns from Existing Business 2 Execute Secured Capital Program 3 Further Organic Opportunity Export Strategy Crude Oil Export Strategy Natural Gas Export Strategy Cameron Venice Cushing Texas Extension Extension Storage ~7mm OK Eastern LA Plaquemines barrel ETCOP TX LNG Cameron Terminal
Slide 15: Renewable Power Update
1 Enhance Returns from Existing Business 2 Execute Secured Capital Program 3 Further Organic Opportunity Renewable Power Update Renewable Power Portfolio European Offshore Wind Solar Self-Power Update (Gross GW/Net GW) Alberta Solar One | 10.5 MW 8 0.3 Self-Power Development Ireland UK Europe Rampio
Slide 16: Low Carbon Development
1 Enhance Returns from Existing Business 2 Execute Secured Capital Program 3 Further Organic Opportunity Low Carbon Development Hydrogen & RNG Carbon Capture H2 Gatineau1 Blending | 2023 OTTAWA ONTARIO RNG City of Stratford | 2022 Markham Blending | 2021 H2 RNG Ingredion London | 2022 Markham Power-
Slide 17: Capital Allocation Priorities (2022+)
Capital Allocation Priorities (2022+) ~$5-6B of Annual Investable Capacity2 1 Preserve • Maintain debt-to-EBITDA within 4.5-5.0x Incremental Capacity: Financial Strength • Strong BBB+ credit ratings • Share buybacks • Further organic projects • Debt reduction ~$2B • Asset acquisitions 2 Sustainable
Slide 18: Strength & Flexibility
Strength & Flexibility Strong Financial Position Industry-Leading Ratings2 (Debt/EBITDA) 6.0x Reaffirmed Credit Ratings rating on: ESG Ratings 5.5x S&P Global Top among N.A. Target Range: 4.5x – 5.0x1 BBB+ Ratings midstream peers 5.0x Dec. 2020 stable 4.5x MSCI ESG A rating 4.0x ISS ESG E&S QualityS
Slide 19: 2021 Outlook – On Track
2021 Outlook – On Track • Effective Covid19 management protocols Operational • Operations near fully utilized in Q1 • Managed through Storm Uri • $10B of capital progressing on schedule for 2021 in-service Execution • Continue to advance productivity improvements • Full-year 2021 DCF/s and EBITDA gu
Slide 20: Q1 Financial Results Summary
Q1 Financial Results Summary ($ Millions, except per share amounts) 2021 2020 Key Drivers Q1’21 vs. Q1’20 Liquids Pipelines 1,881 1,919 Gas Transmission & Midstream 1,007 1,097 • Strong performance across core businesses Gas Distribution & Storage 646 609 Renewable Power Generation 154 118 • Higher
Slide 21: 2021 Financial Outlook
2021 Financial Outlook EBITDA DCF/share 9-Month Sensitivities to Plan Guidance1 Guidance1 Monthly DCF Impact ($ Millions) ($B) $14.3 - $5.00 - $13.9 $4.70 Tailwinds/Headwinds to ($75) $75 L3R U.S. ISD Full Year Guidance +/- 1 month $13.3 $4.67 • Strong Q1 performance ($12) $12 Mainline Volume +/- 10
Slide 22: Concluding Remarks
Concluding Remarks • Best in class infrastructure franchises Yield • Attractive dividend yield vs. historically low interest rates ~7% • Resilient and long-lived cash flows • Mature ESG approach • Enhance asset returns Growth • Grow organically • Shareholder returns ~5-7% • Transparent growth outloo
Slide 23: Qs&A
Qs&A CENBRIDGE