Enbridge Inc. · TSX:ENB
Enbridge — Q4 2012 Earnings Presentation
24 slides from Enbridge's earnings presentation, Feb 15, 2013
Slide 1: 2012 Fourth Quarter Financial Results
2012 Fourth Quarter Financial Results February 15, 2013 Al Monaco President & CEO J. Richard Bird Executive Vice President, CFO and Corporate Development
Slide 2: Agenda
Agenda • Overview & Strategic Update: Al Monaco • Financial Results: J. Richard Bird • Question & Answer Period 2
Slide 3: 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 4: 2012 Fourth Quarter Financial Results
2012 Fourth Quarter Financial Results February 15, 2013
Slide 5: Adjusted Earnings
2012 Financials Results Adjusted Earnings* (CAD$ Millions) $327 Q4 $273 Q4 Full Year $269 Q3 Full Year $239 Q3 $1,249 $1,100 $277 Q2 $258 Q2 $330 $376 Q1 Q1 2011 2012 Year-To-Date 11% EPS $1.46 $1.62 * Adjusted earnings and adjusted EPS are non-GAAP measures. For more information on non-GAAP measure
Slide 6: Dividends Per Share
12% Dividend Increase for 2013 Dividends Per Share $1.26 $0.42 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 6
Slide 7: Total Shareholder Return
Total Shareholder Return Enbridge Performance Relative to S&P/TSX Composite Index As at December 31, 2012 30% Enbridge Inc. S&P/TSX Composite Index 25% 25% Total Shareholder Return (CAGR) 20% 20% 19% 16% 15% 10% 9% 7% 5% 5% 1% 0% 1 Year 3 Year 5 Year 10 Year NOTE: Includes the reinvestment of divide
Slide 8: Secured Project Success in 2012
Secured Project Success in 2012 Secured Growth Capital Projects Entity ($ Billion) Q4 Massif du Sud Wind Project ENB $0.2 Light Oil Market Access Program ENB (45%) / EEP (55%) $6.2 Edmonton to Hardisty Mainline Expansion ENB $1.8 Heidelberg Offshore Oil Pipeline ENB $0.2 Peace River Arch Gas Gatheri
Slide 9: Focus on Safety & Operational Reliability
Focus on Safety & Operational Reliability • Active Integrity Program in 2011/2012 – 162 in line inspections Medical imaging technology – Over 4,300 digs GE UltraScan™ Duo with Phased Array Ultrasound • State of the art control centre • Improved alignment of operational functions and key processes
Slide 10: Crude Oil Price Dislocation
Crude Oil Price Dislocation January 2013 - Daily Averages (US $ per barrel) Edm Light Asia $88 $108 WCS $59 Brent $116* WTI $95 Light Crude Brent Maya Heavy Crude $116* $99 NOTE: *Brent price is a landed price on US East Coast/ US Gulf Coast. Assumed tanker freight cost of US$2.00 per bbl. 10
Slide 11: Market Access Initiatives
Market Access Initiatives Opening New Markets for 1.3 Million Barrels Per Day Fort McMurray Edmonton Hardisty Kerrobert +320 Regina Cromer kbpd 2014 Gretna Montreal Buffalo Sarnia Western US Gulf Coast Access ($6B) Chicago/ Toledo +80 Flanagan kbpd 2013 Light Oil Market Access ($6B) Patoka +300 Cush
Slide 12: Eastern Gulf Coast Access
Eastern Gulf Coast Access Superior Reversal & Conversion to Crude Service: • 30” pipeline • Patoka, Illinois to St. James, Louisiana • Up to 420-660kbpd capacity depending on crude slate Flanagan • Anticipated in-service date of 2015 Southern Access Extension (100%) Patoka Memphis, Alabama/Mississip
Slide 13: Timely Access to Premium Crude Oil Markets
Timely Access to Premium Crude Oil Markets Fort McMurray Edmonton Hardisty Kerrobert Regina Cromer Brent Gretna Montreal Clearbrook Buffalo Sarnia Brent Chicago/ Toledo Flanagan Patoka LLS Cushing Port Arthur Houston St. James Maya LLS 13
Slide 14: Segmented Earnings Variance
Segmented Earnings* Variance Q4 2012 vs. Full Year Q4 2011 2012 vs. 2011 SEGMENT ($ Millions) ($ Millions) Liquids Pipelines + 57 + 148 Gas Distribution + 15 +3 Gas Pipelines, Processing -4 -9 and Energy Services Sponsored Investments -7 + 19 Corporate -7 - 12 TOTAL + 54 + 149 * Adjusted earnings 14
Slide 15: Enterprise Wide Funding and Liquidity Actions
Enterprise Wide Funding and Liquidity Actions Q4 2012 Full Year 2012 Funding Source ($ Billions) ($ Billions) Noverco Secondary Common Equity Sale – $0.3 ENB Primary Common Equity Offering – $0.4 EEP Class A Common Unit Offering – $0.5 EIFH Common Unit Offering $0.2 $0.2 ENB Preferred Shares $0.4 $2
Slide 16: Liquidity Position at Year End 2012
Liquidity Position at Year End 2012 Consolidated Credit Facilities & Cash* 14.7 Cash $10.9 Billion Available $ Billion Facility Availability Liquidity Facility Usage 0.0 Liquidity Position as 1 at Year End 2012 * Includes Enbridge Inc., Energy Energy Partners LP, Enbridge Income Fund 16
Slide 17: Funding Requirements Excluding Sponsored Vehicles (2012-16)
Funding Requirements Excluding Sponsored Vehicles (2012 – 2016) ($ billions, as at January 2013) Maintenance Capital 5.6 Commercially Secured Growth Capital 17.5 Highly Probable Unsecured Growth Capital 3.6 Risked Unsecured Growth Capital 5.4 32.1 Cash Flow Net of Dividends (10.8) Net Funding Requir
Slide 18: Prefunding Impact on 2012 EPS
Prefunding Impact on 2012 EPS Earnings Per Share (EPS) Unbudgeted Unbudgeted Unbudgeted Preferred Share Common Share Long Term Debt Issuance Issuance Issuance $1.68 2.7 cents 2.2 cents 0.7 cents $1.62 - $0.00 1 NOTE: Net of resulting interest expense saving or interest income increase 18
Slide 19: $35 Billion Enterprise Wide Growth Capital Program
Enterprise Wide – Growth Capital Program Risked Unsecured Highly Probable Unsecured Commercially Secured $35 Billion $5 B Eastern USGC Access $3 B $27 B Current 19
Slide 20: Major Projects Status Update
Major Projects Status Update As at January 2013 Expected Cost Cost Schedule Projects In-service Date ($ billion) Indicator Indicator COMPLETED IN 2012: Edmonton Terminal Expansion $0.2 PH1 Q3 2012; PH2 Q4 2012 Below Budget On Time Wood Buffalo Pipeline $0.4 Q4 2012 Below Budget On Time Woodland Pipe
Slide 21: 2013 EPS Guidance
2013 EPS Guidance 2013 EPS Guidance Range: $1.74 $1.82 $1.90 Midpoint = 12% Increase Over 2012 EPS 21
Slide 22: 5 Year EPS Growth Outlook
5 Year – EPS 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 rel
Slide 23: Summary
Summary • Safety, operational reliability, and project execution remain our top priorities • Delivering on our commitment to enhance crude oil market access • Well positioned to achieve the high-end of our long term EPS growth forecast through 2016 23
Slide 24: 2012 Fourth Quarter Financial Results Q & A
2012 Fourth Quarter Financial Results February 15, 2013 Q&A