Slide 1: Q1 2023 Financial Results & Business Update
Q1 2023 Financial Results & Business Update May 5, 2023 Greg Ebel President & CEO Vern Yu EVP & CFO
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 Enbridge Ingleside Energy Center • Quarter Highlights • Business Updates • Financial Results • Growth Outlook • ESG Update 3
Slide 4: Q1 Highlights
Q1 Highlights • Strong Q1 performance – on track to meet full-year guidance Financial • Debt to EBITDA of 4.6x1, mid-point of the target range Performance • BBB+ credit ratings reaffirmed by all agencies • Settlement in principle reached on Mainline Execution & • Acquired Tres Palacios & Signed agre
Slide 5: Quarterly Financial Highlights
Quarterly Financial Highlights Adjusted EBITDA1 DCF/share1 Debt/EBITDA +8% +3% 4.6X ($4.5B vs $4.1B) ($1.57 vs $1.52) (target 4.5x to 5.0x) Year over year, EBITDA up 8%; DCF up 3%, balance sheet in the lower half of target range (1) Adjusted earnings before interest, taxes, depreciation and amortiza
Slide 6: Mainline Tolling Agreement in Principle
Mainline Tolling Agreement in Principle General Terms1 Term 7.5-year term through 2028 (inclusive of interim period) • Incentive tolling design maintains alignment with customers • 100% common carrier; status quo nomination and C$1.65 for Canadian Portion apportionment process Toll US$2.57 for US Po
Slide 7: Liquids Pipelines Highlights
Liquids Pipelines Highlights Permian Seaway Advancing USGC Export Strategy TEXAS 2.7MM • Enbridge Houston Oil Terminal (EHOT) ISD in late 2025 bbls storage at EHOT Gray Oak Houston • FSP1 Open season; expected to close 2H 2023 Cactus II EHOT • Enbridge operatorship of Gray Oak Pipelines began in Apr
Slide 8: Gas Transmission Highlights
Gas Transmission Highlights T-North BC Aitken $6.8B Ksi Lisims LNG T-North Creek Gas Storage Canadian Gas Transmission Update T-South In execution AB LNG Canada Cedar LNG CGL1 Montney Alliance • Aitken Creek Gas Storage Maritimes & Basin Pipeline Acquisition Northeast Deep Basin • T-North open seaso
Slide 9: Aitken Creek Gas Storage
Aitken Aitken Creek Gas Storage Existing Enbridge Pipelines Existing Compressor Station N-4 Creek Gas Storage Asset Overview N-5 T-NorthFort Taylor St.John • Heightened gas price volatility from rising WCSB production CS-2B STATION 2 CS-1 and limited takeaway capacity supports storage fundamentals B
Slide 10: Normandy: Centre Manche
Normandy: Centre Manche 1 UK Normandy 1 GW; 20-year CfD Project Overview Bid awarded March Germany 2023 • 1GW (gross) installed capacity • 20 year fixed-price CfD, indexed to inflation France • Ownership – 20% Enbridge, CPPIB 20% & EDF 60% • Fixed installation wind farm located 32 km off the coast o
Slide 11: First-choice Business Model
First-choice Business Model Low-risk Commercial Model Financial Commodity Alberta COVID Crisis Price Forest Collapse Fires “Bank Failures Raise Odds of Recession” “U.S. Core CPI Tops estimates, pressuring Fed as it weights hike” Adjusted Earnings/share1 DCF/share1 2006 Guidance range Actual results
Slide 12: Q1 Financial Results
Q1 Financial Results Q1 ($ Millions, except per share amounts) 2023 2022 Quarterly Drivers Liquids Pipelines 2,354 2,217 Record mainline volumes Gas Transmission & Midstream 1,189 1,058 Gas Distribution & Storage 716 674 Gray Oak and Cactus II acquisitions Renewable Power Generation 139 160 Te
Slide 13: Seasonality of the Business
Seasonality of the Business Budget Quarterly Gas Transmission: Profile • System supports higher winter gas requirements Adj. EBITDA & DCF1 • Peaking days typically occur in Q1/Q4 Gas Distribution & Storage: • Heating season extends from November through March • Favorable recognition timing of storag
Slide 14: 2023 Guidance Maintained
2023 Guidance Maintained Mainline Tolling Settlement Adjusted EBITDA 1 DCF/share1 Tailwinds/Headwinds • Toll impact in-line with provision; ($B) to Guidance full-year guidance is unchanged (Remaining 9 months) $15.9 – $5.25 – $16.5 $5.65 $15.5 $5.42 $14.0 $4.96 Strong operating performance & Minimal
Slide 15: Maintaining Medium-Term Outlook
Maintaining Medium-Term Outlook Near-term outlook 2022 to 2025 EBITDA1 CAGR: 4%-6% ~2% ~5% EPS1 CAGR: 4%-6% Will track approximately with Deploying CAGR Investment EBITDA ~1-2% Capacity DCF/s1 CAGR: ~3% • Robust opportunity set Modest headwinds from tax Secured • Tuck-in M&A legislation ~1-2% Organi
Slide 16: Capital Allocation Priorities
Capital Allocation Priorities Annual Investment Capacity ~$11B ~$7B Balance Sheet • Preserve financial strength and flexibility Strength • Maintain leverage within 4.5x – 5.0x ~$2B ~$6B • Payout range of 60% - 70% Sustainable • Dividend supported by cash flow growth Return of Capital ~$3B Discretion
Slide 17: Secured Capital Program
Secured Capital Program Executing on $17B Project Expected ISD Capital ($B) Secured Program Ingleside Phase VI (Storage) 2024 0.1 USD Liquids Pipelines Enbridge Houston Oil Terminal (NEW) 2025 0.2 USD Modernization Program Appalachia to Market Phase 2 2023-2026 2023-2025 2.6 USD 0.1 USD ~$10.7B Veni
Slide 18: 2022 ESG Performance Update
2022 ESG Performance Update GHG Emission Net Zero GHG Announced LOI Intensity Reduction Emissions issued $2.3B with Yara to develop 27%1 18% SLB2 bringing total and construct a production sustainability financings facility at EIEC for 2018 35% to over $7B Blue Ammonia Diversity & Racial & Ethnic gro
Slide 19: Key Takeaways – First Choice Investment Opportunity
Key Takeaways – First Choice Investment Opportunity Strong Total Return Mainline Tolling Settlement in Principle; guidance and outlook unchanged Low-risk commercial model withstands market volatility Predictable Cash Flow Low-Risk Business Growth Balance sheet strength with equity self-funding model
Slide 20: ENBRIDGE
ENBRIDGE