Enbridge Inc. · TSX:ENB
Enbridge — Investor Presentation (November 2015)
16 slides from Enbridge's investor presentation, November 2015
Slide 1: 2016 Guidance and Strategic Update
2016 Guidance and Strategic Update Al Monaco, President & CEO John Whelen, Executive Vice President & CFO
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 its subsidiaries and affiliates, including management’s assessment of Enbridge and its subsidiaries’ future plans and operati
Slide 3: Agenda
Agenda • Dividend Increase • Uniquely Positioned for Current Environment • 2016 Guidance • Outlook 3
Slide 4: Strong Track Record of Dividend Growth
Strong Track Record of Dividend Growth 14% DPS increase for 2016 $/share $2.50 • Cash generating capability of assets • 14-16% annual DPS growth through 2019 $2.12 $2.00 • Strong ACFFO coverage: 2x $1.86 $1.50 $1.00 $0.50 $0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 4
Slide 5: Well Positioned for Current Environment
Well Positioned for Current Environment 1. Insulated from low commodity prices 2. Strong western Canadian supply outlook 3. Magnitude of capital program and execution progress 5
Slide 6: Insulated From Low Commodity Prices
Insulated From Low Commodity Prices Earnings At Risk* at Oct 31 <5% of business subject to direct commodity price exposure Strong Commercial Constructs 95% of cash flow underpinned by strong commercial constructs Counterparty Credit Profile** 95% of revenues from investment grade customers or securi
Slide 7: Strong Liquids Outlook
Strong Liquids Outlook Oil Sands Growth ~800 kbpd oil sands supply growth through 2019 Basin short >500 kbpd pipeline Pipeline Capacity v. WCSB Supply capacity by 2021 ~800 kbpd low-cost incremental Low Cost Expansion Opportunity Pipeline Description Capacity (kbpd) expansion projects Line 3 Restore
Slide 8: Executing the Capital Program
Executing the Capital Program 5 Year Growth Capital Program $25B secured capital in execution provides low risk cash flow growth $13B highly probable projects Capital In Service 2015-2019 ($ billion) 2015 8.4 $8B already in service 2016 1.5 2017 14.2 2018 1.2 2019 0.2 $20B liquidity, diversified fun
Slide 9: 2015 Guidance Outlook
2015 Guidance Outlook $4.00 • ACFFO* on track $3.30 • Adjusted EPS* trending to lower half of range • Lower than expected results $2.35 from Line 9 and Aux Sable $2.05 • Volume disruptions in October offset tailwinds Adjusted EPS ACFFO/Share 9 *ACFFO and adjusted earnings are non-GAAP measures. For
Slide 10: Financial Reporting Transition
Financial Reporting Transition Illustrative Presentation 2016 2015 Adjusted EBIT by Segment: • Completed large-scale drop down Liquids Pipelines $XX to the Fund Gas Distribution XX • Introduced cash flow metric, Energy Services XX guidance, and reporting Gas Pipelines & Processing XX Power XX Consol
Slide 11: 2016 ACFFO & EBIT Guidance Outlook
2016 ACFFO & EBIT Guidance Outlook ACFFO/share Adjusted EBIT $4.50 $4.8 billion Growth Drivers: $4.00 $4.4 billion $3.80 Liquids Pipelines +++ Gas Distribution + $3.30 $3.02 Gas Pipelines, Processing + Other ACFFO Assumptions: Maintenance Capital $800 – 850M Current Income Tax $100 – 150M 2014 2015e
Slide 12: Financing Flexibility
Financing Flexibility Diversified Funding Sources Consolidated Liquidity ($ billions) Debt Hybrid Equity $20B Can US Global Can US Global Can US Global ENB $9B ENF available EGD liquidity EPI EEP MEP Cash Public or Private Public or Private Unutilized Bank Lines Primary Potential Facility Usage Nove
Slide 13: ENF/Fund Group 2016 Guidance
ENF/Fund Group 2016 Guidance ENF Dividends Per Share Fund Group ACFFO $2.50 $2.05 billion $1.75 billion $2.00 $1.87 $1.50 $1.00 $0.50 $0.00 2014 2015 2016 … 2019e 2016e 13 *ACFFO is a non-GAAP measure. For more information on non-GAAP measures please refer to disclosure in MD&A.
Slide 14: Five Year Growth Outlook
Five Year Growth Outlook $38B capital program drives robust and transparent ACFFO and DPS growth through 2019 ACFFO* DPS Dividend Coverage 15%-18% CAGR 14%-16% CAGR ~2x ACFFO ~2x $1.86 $3.02 $ / share 2014 2019 2015 2019 Enbridge average 14 *ACFFO is a non-GAAP measure. For more information on non-G
Slide 15: Strong Relative Valuation Proposition
Strong Relative Valuation Proposition Superior growth, strong dividend coverage and reliable business model should attract improved valuation Expected ACFFO*/share Growth $3.00 Reliable Business Model 15-18% 8% Enbridge Peer $- average average** 2008 2009 2010 2011 2012 2013 2014 2015e (2015-2019) E
Slide 16: Q&A
Q&A