Enbridge Inc. · TSX:ENB
Enbridge — TD Calgary Energy Conference 2013
17 slides from Enbridge's conference presentation, Jul 9, 2013
Slide 1: The Changing Energy Landscape: New Market Access Initiatives
The Changing Energy Landscape: New Market Access Initiatives TD Calgary Energy Conference July 9, 2013 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's Energy Infrastructure Asset Base
Enbridge’s Energy Infrastructure Asset Base Norman Wells Zama Fort McMurray Edmonton Hardisty Quebec City Clearbrook Montreal Portland Superior Toronto Casper 2012 Toronto 2012 Salt Lake City Chicago Adjusted Adjusted Patoka Earnings Earnings Cushing 16% Houston 65% 65% Liquids Pipelines Gas Distrib
Slide 4: Strong Value Creation Track Record
Strong Value Creation Track Record Enbridge Performance Relative to S&P/TSX Composite Index As at December 31, 2012 Enbridge Inc. 25% S&P/TSX Composite Index Total Shareholder Return CAGR 20% 20% 19% 16% 15% 10% 9% 7% 5% 1% 0% 1 Year 5 Year 10 Year North American Peer Group Percentile 89% 100% 96% 4
Slide 5: Global Incremental Oil Demand (2010 – 2030)
Global Incremental Oil Demand (2010 – 2030) MMbpd 8.0 +7.4 6.0 +4.1 4.0 +3.3 +2.9 2.0 +1.5 +1.5 +0.4 +0.4 0.0 -0.5 -2.0 -1.7 -2.1 -4.0 OECD OECD OECD Russia Other Latin Middle Other OPEC India China Europe America Asia Eurasia America East & Asia Oceania Africa Source: Organization of the Petroleum
Slide 6: Canadian Oil Production Forecast
Canadian Oil Production Forecast MMbpd 8.0 7.0 6.0 5.0 3.3 MMbpd 4.0 3.0 2.0 1.0 0.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Oil Sands Conv. Heavy Conv. Light and Medium Pentanes/Condensate Source: Canadian Association of Petroleum Producers. “Crude
Slide 7: North American Crude Oil Differentials
North American Crude Oil Differentials Pricing based on YTD 2013 - Daily Average As at June 26, 2013 (USD per barrel) Asia EDM WCS Light $90 $104 $72 Bakken Light $92 Brent* $111 WTI $94 Light Crude Heavy Crude Maya LLS $100 $109 *Brent price is a landed price on US East Coast/ US Gulf Coast. Assume
Slide 8: Western Canada & Bakken Pipelines Export Capacity versus Export Supply
Western Canada & Bakken – Pipelines Export Capacity versus Export Supply 8,000 7,000 TCPL EA, 600 TMX, 550 6,000 NGP, 525 XL, 525 Volume (KBPD) 5,000 KSL, 590 4,000 3,000 ENB - Ex Superior, 1930 ENB - Ex Superior, 2730 2,000 Clearbrook/Superior, 300 1,000 W. Access, 450 TMPL, 260 Western Cdn Refiner
Slide 9: Liquids Pipelines – Alberta Regional Infrastructure
Liquids Pipelines – Alberta Regional Infrastructure Suncor (Firebag) Imperial Oil (Kearl) • Significant competitive position 7 Fort 4 Husky − Largest regional operator Suncor McMurray (MacKay River) 5 (Sunrise) − Dual hub deliverability AOC (Hangingstone) 6 Nexen (Long Lake) − Bridging capacity 8 9
Slide 10: Liquids Pipelines – Mainline System, Market Access Extensions/Expansions
Liquids Pipelines (Enterprise Wide) – Mainline System, Market Access Extensions/Expansions Gulf Coast Access/ Eastern Access/ Light Oil Market Access Programs Opening New Continental Markets for up to 1.7 MMbpd Fort McMurray 2013 • Line 5 Expansion (+50 kbpd) Edmonton • Line 62 Expansion (+105 kbpd)
Slide 11: Liquids Pipelines – East Coast Market Access
Liquids Pipelines – East Coast Market Access Canadian and U.S. East Coast Refinery Markets 11
Slide 12: Liquids Pipelines – West Coast Market Access
Liquids Pipelines – West Coast Market Access Current Status: Next 12 Months: • Positive TERMPOL report • Satisfy B.C. 5 conditions • JRP hearing concluded • Additional R-O-W First Nations support • 60% R-O-W First Nations support • Coastal First Nations support • JRP decision • Federal aboriginal co
Slide 13: An Exceptional Array of Attractive Investment Opportunities
An Exceptional Array of Attractive Investment Opportunities 2012 – 2016 Enterprise Wide Growth Capital $37 B Project Cost by In-Service Date $9 (2012 -2016) Unsecured* Billion 2012 $3 2013 YTD ROY $5 $28 2014 $9 Commercially Billion Secured 2015 $8 2016 $3 $, Billions 1 * Unsecured growth capital is
Slide 14: Tilted Return Profiles
Tilted Return Profiles Enbridge Inc. First Full Full Life Years to Project / Program Investment Year DCF ROE Attain ($ Billions) Eastern Access1 $2.2 2014 low double digits 4 Western USGC Access2 $6.3 2015 low double digits 5 Light Oil Market Access1,2 $3.2 2016 low double digits 4 Edmonton to Hardi
Slide 15: Secured Growth Capital by Return Profiles
Enterprise Wide – Secured Growth Capital by Return Profiles Flat Profile Tilted Profile ($ Billions) ($ Billions) Liquids Pipelines $1.4 $2.4 – Alberta Regional Infrastructure Liquids Pipelines $7.7 $10.9 – Market Access Initiatives Gas Pipelines $2.0 $1.1 Gas Distribution $0.6 − Green Power − $1.4
Slide 16: Industry Leading Growth Outlook: Adjusted EPS Growth
Industry Leading Growth Outlook Adjusted EPS* Growth $3.00 • Tilted Return Projects • 2016 Risked Unsecured • New Growth Platforms • Sponsored Vehicle Drop Downs $0.00 2011 2016 * Adjusted earnings EPS is non-GAAP measures. For more information on non-GAAP measures please refer to disclosure in news
Slide 17: Investment Merits Summary
Investment Merits Summary • Exceptional array of attractive return investment opportunities • Financial risk tightly managed • Ample access to low cost funding sources • Growing earnings and cash flows Attractive investments low cost of capital Industry leading growth Substantial Valuation Upside 17