Enbridge Inc. · TSX:ENB
Enbridge — TD London Oil Sands Forum 2008
18 slides from Enbridge's conference presentation, Jan 14, 2008
Slide 1: Moving Oilsands Production from Field to Markets
Moving Oilsands Production from Field to Markets TD London Oil Sands Forum 2008 January 14, 2008 Stephen J. Wuori Executive Vice President, CFO & Corporate Development
Slide 2: Legal Notice
Legal Notice Certain information provided in this presentation constitutes forward-looking statements. The words "anticipate", "expect", "project“, “estimate”, “forecast” and similar expressions are intended to identify such forward looking statements. Although Enbridge believes that these statement
Slide 3: Energy Delivery: Liquids and Natural Gas
Energy Delivery Liquids and Natural Gas 2006 Adjusted Earnings Inuvik International 12% Norman Wells Sponsored Investments Liquids 11% Pipelines 41% Gas Zama Distribution Fort St. John 27% Gas Pipelines Fort McMurray 9% Edmonton Hardisty Seattle Regina Portland Clearbrook Saint John Superior Montrea
Slide 4: Largest Transporter of Canadian Crude Oil to US
Largest Transporter of Canadian Crude Oil to US 1 US Imports 2006 (million barrels/day) Canada 1.8 Enbridge 1.2 Others 0.6 Mexico 1.6 Alberta Oilsands Venezuela 1.5 Fort McMurray Saudi Arabia 1.4 Transmountain Nigeria 1.1 Edmonton 5% Hardisty Enbridge Iraq Angola U.K. 0.6 0.5 0.1 W Corridor 9% Expre
Slide 5: Oil Sands Growth
Oil Sands Growth SUPPLY DEMAND (MM b/d) (MM b/d) 6.5 6.5 6.0 Enbridge 6.0 Actual Forecast Actual Forecast Forecast 5.5 5.5 2007 CAPP Forecast 5.0 5.0 Aggregate West Coast 4.5 4.5 Producers Exports Forecast 4.0 4.0 PADD III 3.5 3.5 3.0 Raw Bitumen 3.0 2.5 2.5 PADD II 2.0 Synthetic 2.0 Light 1.5 1.5 P
Slide 6: Liquids Strategy: Broadening Market Access
Liquids Strategy Broadening Market Access Enbridge/Lakehead System Norman Wells Other Pipelines Refineries: Canadian Supplied Zama No/Limited Cdn Supply Fort McMurray Tanker Port Edmonton Hardisty Puget Sound Great Falls Clearbrook Billings Superior Montreal Mandan Toronto Salt Lake City Casper Sinc
Slide 7: Liquids Strategy: Commercially Secured Projects
Liquids Strategy Commercially Secured Projects Contract Terminaling Cost Mainline Expansions Regional Infrastructure Southern Access Expansion C$ 2.5B Fort McMurray Alberta Clipper C$ 3.0B Edmonton Line 4 C$ 0.3B Hardisty Regional Pipelines Kerrobert Waupisoo C$ 0.6B Regina Athabasca C$ 0.2B Cromer
Slide 8: Commercially Secured Liquids Pipelines Projects
Commercially Secured Liquids Pipelines Projects Capital Full Life Expenditure Equity Return Volume Capital Cost Debt/ Project ($ billions) In-Service Return Profile Risk Risk Equity Status Mainline Expansions Southern Access Expansion U.S. * US $2.1 2009 12% floating flat none none on 88% 45/55 Unde
Slide 9: Liquids Pipelines: Summary of In-Service Dates for Major Projects
Liquids Pipelines Summary of In-Service Dates for Major Projects Waupisoo Hardisty Tank Farm Southern Access Extension Southern Access Expansion* Line 4 Extension Alberta Clipper* Southern Lights Diluent Fort Hills (expected) 2008 2009 2010 2011 2012 2013 * Enbridge Energy Partners/ENB joint project
Slide 10: Pipeline Construction Costs
Pipeline Construction Costs Pipeline Pipeline Construction Materials 33% 33% Facilities Materials/ Construction and Land Costs 33% 10
Slide 11: Project Risk Mitigation: Cost Overrun Sensitivity
Project Risk Mitigation Example Cost Overrun Sensitivity Liquids Pipelines: Secured Projects: Enbridge Inc. Project Capital: ~$9B Spent to Date: ~$1.4B (15%) To be Spent: ~$7.6B (85%) DCF ROE (Base Case): ~12% DCF ROE (50% Cost Overrun): ~10% 11
Slide 12: Mainline Tolls – Impact of Cost Overruns
Mainline Tolls – Impact of Cost Overruns Tolls to Chicago (Heavy Oil) US$/BBL – Current $2.15 – 2011F: After Southern Access Expansion $2.75 and Alberta Clipper (based on current capital cost estimates) – 2011F: Based on 50% cost overrun on $3.10 capital to be spent Assumptions: (1) F/X rate of 1.05
Slide 13: Longer Term Growth - 2012 and Beyond
Longer Term Growth - 2012 and Beyond $ Billions 18 Wave 2 16 In Development 14 Wave 1 Mainline Expansion Commercially Secured 12 Southern Access Expansion Regional Pipelines 10 Alberta Clipper 8 and Line 4 New Market Access – Mainline 6 Waupisoo & Athabasca Extensions Fort Hills 4 Longer Term New Ma
Slide 14: Financial Strength: Cash Flow Growth
Financial Strength Cash Flow Growth - Commercially Secured Free Cash Flow 2.4 2.2 2.0 1.8 1.6 $ billions 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2006 2007e 2008e 2009e 2010e 2011e 2012e FFO FFO less Dividends FFO less Dividends and Maintenance Doubling of Free Cash Flow 14 14
Slide 15: Appendix
Appendix
Slide 16: Export Production Growth vs. Pipeline Capacity
Export Production Growth vs. Pipeline Capacity (000 BPD) (000 BPD) 6,000 6,000 Next Increment 2 5,500 5,500 Next Increment 1 5,000 5,000 Aggregate Clipper 4,500 Producers Keystone 4,500 4,000 Forecast 4,000 3,500 Southern Access & 3,500 Light Capacity 3,000 Expansion 3,000 2,500 2,500 2,000 2,000 1,
Slide 17: Financial Strength: Liquidity
Financial Strength Liquidity $ Billions Combined Credit Facilities * 10 8 $4B 6 $3B 4 $1.5B 2 0 December 31, 2006 September 30, 2007 2008 - 2011 (Forecast) Forecasted Facility Useage Excess Liquidity * Includes EEP and ENF B
Slide 18: Revised Funding Requirement (2007 - 2011)
Revised Funding Requirement (2007 - 2011) Base Plan ($ Billions) (1) Total Capital Expenditures $ 12.2 $ 13.9 Less: Free Cash Flow (5.3) (5.6) Net Funding Requirement $ 6.9 $ 8.3 (1) (1) Debt Equity Total Requirement $ 4.9 $ 5.8 Total Requirement $ 2.0 $ 2.5 Less: Amounts Raised in 2007 (1.2) (1.2)