Enbridge Inc. · TSX:ENB
Enbridge — Q1 2007 Earnings Presentation
14 slides from Enbridge's earnings presentation, May 2, 2007
Slide 1: 2007 First Quarter Financial Results
2007 First Quarter Financial Results May 2, 2007 Pat Daniel President and CEO Steve Wuori Executive Vice President, CFO and Corporate Development
Slide 2: Outline
Outline Key Messages and Strategic Update Pat Daniel Financial Results Steve Wuori Question & Answer Period 22
Slide 3: 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 4: Key Message
Key Message Strong performance across all segments Major projects moving to construction Q1 2007 Q1 2006 Reported Earnings $227.0 M $190.9 M Per Share $0.65 $0.56 Adjusted Operating* $229.4 M $209.5 M Per Share $0.65 $0.62 * Please refer to Non-GAAP Measures disclosure in news release 44
Slide 5: Strategic Update
Strategic Update $8 Billion Liquids Projects Moving Forward – Expected Returns – Near Term Earnings – Managing Capital Costs 55
Slide 6: Liquids Pipelines Project Risk/Return Features
Liquids Pipelines Project Risk/Return Features Full life or DCF Return on Equity: – from 9% (Southern Access Canada) – to mid-teens (Waupisoo) Return profile: – from flat, same annual return every year – to upward tilted from mid single digits initially (Athabasca laterals) Volume risk: – from none,
Slide 7: Liquids Pipelines Project Risk/Return Portfolio
Liquids Pipelines Project Risk/Return Portfolio Capital Magnitude Expected Full Life Return Volume Capital Cost Project ($ billions) Completion Return Profile Risk Risk Southern Lights US $1.3 2010 12% + kicker flat none partial Southern Access Extension US $0.4 2009 11% floating flat none none Sout
Slide 8: Near Term Earnings
Near Term Earnings Near Term Growth – Modest relative to recent past – Contributions from Athabasca Laterals and Terminals, and Waupisoo – Diversity of existing businesses Southern Access, Alberta Clipper, Southern Lights – Growth contribution 2009-2010 Big Prize – Starts 2009-2010 – Attractive low-
Slide 9: Managing Capital Costs
Managing Capital Costs Procurement – Pipe • Long Term Strategy – Secured Pipe for Southern Access, Alberta Clipper, Line 4 Extension, Southern Lights, Waupisoo – Contractors • Long Term Strategic Alliances in Canada and the US 99
Slide 10: Project Execution Organization Structure
Project Execution Organization Structure Major Projects Steering Committee Senior VP Planning & Project Management Project Director Design Engineering Construction Management Senior VP Major Project Execution Procurement Environment VP Operations Public Consultation VP Support Services • • • • • • 1
Slide 11: Financial Results
Financial Results Reported Earnings Adjusted Earnings* ($ Millions) ($ Millions) $227.0 $190.9 $229.4 $209.5 2007 2006 2007 2006 *Please refer to Non-GAAP Measures disclosure in news release. 11 11
Slide 12: Diversified Segment Contributions
Diversified Segment Contributions Q1 2007 Adjusted EPS Liquids Pipelines + Gas Pipelines + Gas Distribution + Sponsored Investments + International Corporate + 12 12
Slide 13: Key Takeaways
Key Takeaways Near term earnings growth from diversified business segments and growth projects (Athabasca Laterals and Terminals, Waupisoo) Southern Access, Alberta Clipper and Southern Lights – Moving forward to construction – Managing capital costs – Attractive low-risk projects – Significant futu
Slide 14: 2007 First Quarter Financial Results
2007 First Quarter Financial Results May 2, 2007 Questions…