Enbridge Inc. · TSX:ENB
Enbridge — TD London Energy Conference 2014
20 slides from Enbridge's conference presentation, Jan 13, 2014
Slide 1: North America's Energy Infrastructure Renaissance
North America’s Energy Infrastructure Renaissance TD London Energy Conference January 13, 2014 J. Richard Bird Executive Vice President, Chief Financial Officer & Corporate Development
Slide 2: Legal Notice
Legal Notice This presentation includes certain forward looking information (FLI) to provide Enbridge shareholders and potential investors with information about Enbridge and management’s assessment of its future plans and operations, which may not be appropriate for other purposes. FLI is typically
Slide 3: Enbridge Infrastructure Asset Base
Enbridge Infrastructure Asset Base Norman Wells Zama Fort St. John Fort McMurray Edmonton Edmonton Hardisty Clearbrook Montreal Portland Superior Toronto Sarnia Casper Salt Lake City Chicago Chicago Patoka Cushing 15% Houston Houston Liquids Pipelines Gas Wind Power Generation 2012 Adjusted Earnings
Slide 4: Significant Value Creation
Value Creation Track Record Significant Value Creation As at December 31, 2013 25% 22% Total Shareholder Return (CAGR %) 20% 17% 15% 13% 12% 11% 10% 8% 5% 0% 1 Year 5 Year 10 Year Enbridge Inc. S&P/TSX Composite Index 4
Slide 5: $36 Billion Growth Investment Plan
$36 Billion Growth Investment Plan 2013 – 2017 Enterprise Wide Growth Capital In Service - Unsecured - Commercially Secured $36 B $36 B $10 B $7 B $29 B $26 B Enbridge Day Current (October 2013) 5
Slide 6: North American Crude Oil Supply Growth: 2013 – 2025
North American Crude Oil Supply Growth: 2013 – 2025 + 7 MMbpd by 2025 MMbpd 4.0 Cardium, Viking, Duvernay 3.5 Niobrara 3.0 Other 2.5 Permian Basin 2.0 Oil Sands Eagle Ford 1.5 1.0 0.5 Bakken 0.0 Heavy Light Sources: Enbridge Internal Forecast and External Forecasts 6
Slide 7: North American Regional Pricing Disparities
North American Regional Pricing Disparities Pricing Based on Q4 2013 - Daily Average (USD per barrel) Alberta Asia Light $83 $117 $107 WCS $66 Bakken Light $86 Brent $111* WTI $98 Light Crude LLS Maya Heavy Crude $101 $89 *Brent price is a landed price on US East Coast/ US Gulf Coast. Assumed tanker
Slide 8: Western Canada/Bakken Pipeline Takeaway Capacity: Available Versus Required
Western Canada/Bakken Pipeline Takeaway Capacity: Available Versus Required MMbpd 9.0 • Keystone XL • ENB Northern Gateway 8.0 • TransMountain Expansion • Energy East 7.0 6.0 5.0 4.0 3.0 ENB 2.0 1.0 OTHER 0.0 2013-Q1 2014-Q1 2015-Q1 2016-Q1 2017-Q1 2018-Q1 2019-Q1 2020-Q1 2021-Q1 2022-Q1 2013 Enbrid
Slide 9: New Market Access – Western U.S. Gulf Coast Access
New Market Access – Western U.S. Gulf Coast Access 600 Thousand Barrels Per Day 1 Associated Mainline Expansions ($1.2B) • Albert Clipper to 800 kbpd (2014/2015) 1 • Southern Access to 560 kbpd (2014) Chicago/ 2 Flanagan South Pipeline ($2.8B) Flanagan • Enbridge Inc. 100% • Twin Spearhead Pipeline
Slide 10: New Market Access – Eastern Access
New Market Access – Eastern Access Hardisty 400 Thousand Barrels Per Day Montreal Clearbrook Superior 1 5 4 Westover ENB funded Sarnia EEP/ENB joint funded Chicago 3 6 Toledo 1. 1 Line 5 Expansion +50 kbpd (In-Service) Flanagan 2 2. 2 Spearhead North Expansion +105 kbpd (2013) Patoka 3. 3 Line 6B Re
Slide 11: New Market Access – Light Oil Market Access
New Market Access – Light Oil Market Access Hardisty 400 Thousand Barrels Per Day Cromer 1 Gretna Montreal Clearbrook 2 ENB funded 5 EEP/ENB joint funded EEP funded Westover Stockbridge Sarnia 1.1 Associated Mainline Expansions 4 – Canadian Mainline Terminal Capability (2013/2015) Chicago Toledo – S
Slide 12: New Market Access – Under Development
New Market Access – Under Development Fort McMurray Edmonton Canadian/U.S. East Coast Hardisty Refinery Markets Ontario/Quebec Kerrobert Refinery Markets Regina Cromer Gretna Asia Pacific/West Coast Clearbrook Montreal Refinery Markets Buffalo Sarnia Chicago/ Toledo Flanagan Wood Patoka River Cushin
Slide 13: Regional Infrastructure – Alberta Oil Sands
Regional Infrastructure – Alberta Oil Sands FHELP Husky (Fort Hills) Imperial Oil (Sunrise) (Kearl) Suncor (MacKay River) Suncor Norealis (Firebag) Terminal JACOS Athabasca Alberta (Hangingstone) Terminal Nexen (Long Lake) AOC Cheecham (Hangingstone) Terminal Cenovus (Christina Lake) ConocoPhillips
Slide 14: Regional Infrastructure – Bakken
Regional Infrastructure – Bakken Enbridge Mainline Saskatchewan System (ENF) Saskatchewan North Dakota System Bakken Expansion Project • 145 kbpd (In-service) Bakken Access Program (well connections) • 100 kbpd (2013) Berthold Rail • 80 kbpd (In-service) Weyburn Cromer Steelman Lignite Gretna Tioga
Slide 15: Canadian Midstream Gas Gathering & Processing
Canadian Midstream Gas Gathering & Processing • Commercially Secured: $1.1B – Cabin Phases 1 & 2 – Peace River Arch Gathering • Potential Opportunities: $4.5B – Cabin expansion phases (3–6) – Peace River Arch expansion – Montney, Duvernay and other Deep Basin infrastructure – Regional condensate & N
Slide 16: U.S. Offshore Gulf Coast of Mexico Gathering & Processing
U.S. Offshore Gulf Coast of Mexico Gathering & Processing • Legacy Investment $0.6B • Commercially Secured : $1.0B – Venice Expansion (Q4/13) – Walker Ridge Gathering (Q3/14) – Big Foot Oil Pipeline (Q4/14) – Heidelberg Oil Lateral (2016) • Potential Opportunities: $1.5B Offshore Earnings $60 $50 $4
Slide 17: Gas Distribution System Reinforcement Project
Gas Distribution System Reinforcement Project Total Secured Capital = $0.7 B 17
Slide 18: Power Generation & Transmission
Power Generation & Transmission Power Generation Focus Areas Transmission Focus Areas CDN U.S. Solar 100 MW 50 MW Wind 1,302 MW 360 MW Geothermal - 23 MW Waste Heat 30 MW - Power Generation Capacity Transmission Capacity MW MW 3,000 1,000 2,000 500 1,000 0 0 2013 2017 2013 2017 Total Secured Capital
Slide 19: Industry Leading EPS & DPS Outlook
Industry Leading EPS & DPS Outlook An Industry Leading EPS* An Industry Leading DPS Growth Outlook (but lumpy) Growth Outlook (smoother) • EPS Growth • Tilted Return • Surplus Projects Cash Flow • New Growth Platforms • Sponsored Vehicle Drop Downs 2012 2017 2012 2017 * Adjusted earnings are non-GAA
Slide 20: Summary
Summary • Record portfolio of attractive investment opportunities • Commercial and financial risk tightly managed • Access to multiple low cost funding alternatives • Highly visible industry leading growth including significant embedded post 2017 organic growth Attractive investments low cost of cap