Enbridge Inc. · TSX:ENB
Enbridge — TD London Energy Conference 2013
19 slides from Enbridge's conference presentation, Jan 14, 2013
Slide 1: Market Access for Land Locked North American Crude Oil
Market Access for Land Locked North American Crude Oil TD London Energy Conference January 14, 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: $45 Billion Energy Infrastructure Asset Base
$45 Billion Energy Infrastructure Asset Base Norman Wells Zama Fort McMurray Edmonton Hardisty Quebec City Clearbrook Montreal Portland Superior Toronto Casper 2011 Toronto 2011 Chicago Salt Lake City Adjusted Adjusted Patoka Earnings Earnings Cushing 17% 16% Houston 62% 65% Liquids Pipelines Gas Di
Slide 4: Value Creation Track Record
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 20% Total Shareholder Return CAGR 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: Dominant Transporter of Canadian Crude Oil
Dominant Transporter of Canadian Crude Oil US Imports 20121 MMbpd Western Canada 2.1 Enbridge 1.3 Other 0.8 Saudi Arabia 1.5 Mexico 1.0 Alberta Oilsands Venezuela 0.8 Fort McMurray Iraq 0.5 Edmonton Trans Mountain Enbridge Columbia 0.4 8% Hardisty transports 63% of Nigeria 0.4 W Corridor U.S. bound
Slide 6: Global Light Oil Price Benchmark Outlook
Global Light Oil Price Benchmark Outlook Brent Price Outlook (2011 dollars) 2013 - 2025 PIRA EIA $120 $115 U.S. Domestic Production Growth $110 USD per bbl $105 $100 $95 $90 Developing Country Demand Growth $85 $80 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: EIA “An
Slide 7: Western Canada/U.S. Northwest Supply Growth
Western Canada/U.S. Northwest Supply Growth Forecast Western Canada Production Forecast Bakken Production MMbpd MMbpd 6.0 6.0 5.0 5.0 2.4 MMbpd 4.0 4.0 1.5 MMbpd 3.0 3.0 2.0 2.0 1.3 MMbpd 1.0 MMbpd 1.0 1.0 0.0 0.0 CAPP Forecast PIRA Energy Group Forecast 7
Slide 8: Landlocked Supply Price Discounts
Landlocked Supply Price Discounts Pricing reflects December 2012 averages (Crude prices are in US$ per bbl) Edm Light Asia $81 $106 WCS $55 Bakken Light Brent $85 $113* WTI $88 LLS Maya Brent Light Crude $110 $91 $113* Heavy Crude NOTE: * Brent price is a landed price on US East Coast/ US Gulf Coast
Slide 9: Value Lever: Mainline System
Value Lever # 1 – Mainline System Oil Sands Edmonton Hardisty Kerrobert Regina Cromer Gretna Bakken Clearbrook Superior Montreal Sarnia Buffalo • Largest crude oil pipeline Chicago Detroit system in the world Flanagan Toledo Patoka • Value Leverage: Cushing – Scale – Product Segregation – Market Div
Slide 10: Value Lever: Alberta Regional System
Value Lever # 2 – Alberta Regional System Suncor Imperial Oil (Firebag) (Kearl) • Largest operator in Alberta Athabasca Husky Suncor Terminal (MacKay River) (Sunrise) • Value Leverage: Nexen (Long Lake) – Low cost expansion ConocoPhillips Cheecham (Surmont) Terminal – “Bridging” of new projects Stat
Slide 11: Value Lever: Bakken Regional System
Value Lever # 3 – Bakken Regional System Enbridge Mainline System Saskatchewan System (ENF) • Largest operator in the Bakken North Dakota System (EEP) Saskatchewan Bakken Expansion Project (EEP/ENF) • Value Leverage: – Sole gathering/collector system in Bakken core – Access to mainline multiple Weyb
Slide 12: Value Lever: Existing Mainline Extensions
Value Lever # 4 – Existing Mainline Extensions Fort McMurray Edmonton Hardisty Kerrobert Regina Cromer Gretna Clearbrook Superior Montreal Sarnia Buffalo • Value Leverage: Detroit Chicago – Market Diversity Flanagan Toledo – Established ROW Patoka – Mainline Joint Tolls Cushing Houston 12
Slide 13: New Market Access: Western U.S. Gulf Coast Access
New Market Access Initiative # 1 – Western U.S. Gulf Coast Access 4 # 4. Associated Mainline Expansions ($1.2B) • Expanding Line 67 from 450 kbpd to 800 kbpd • Expanding Line 61 from 400 kbpd to 560 kbpd # 3. Flanagan South Pipeline ($2.8B) • Enbridge Inc. 100% Chicago/ • Twin Spearhead Pipeline (36
Slide 14: New Market Access: Eastern Access
New Market Access Initiative # 2 – Eastern Access Hardisty Regina Gretna Montreal Clearbrook Superior 4 1 Westover 4 Sarnia Chicago 5 Toledo 3 1 Line 5 Expansion 2 2 Spearhead North Expansion Patoka 3 Line 6B Replacement 4 Line 9 Reversal 5 Toledo Pipeline Partial Twin Cushing Total Secured Capital
Slide 15: New Market Access: Light Oil Market Access
New Market Access Initiative # 3 – Light Oil Market Access Hardisty Gretna Montreal Clearbrook Superior 1 Canadian Mainline Terminal Capability ($0.6B) Sarnia 2 Sandpiper Project ($2.5B) Toledo 3 U.S. Mainline Expansion ($1.8B) Chicago Flanagan a) Superior to Flanagan b) Chicago Area Connectivity Pa
Slide 16: Other New Market Access Initiatives
Other New Market Access Initiatives Asia Pacific/West Coast Refinery Markets Canadian/U.S. East Coast Refinery Markets Eastern U.S. Gulf Coast Refinery Markets 16 16
Slide 17: $35 Billion Growth Investment Plan
$35 Billion Growth Investment Plan 2012 – 2016 Enterprise Wide Growth Capital Risked Unsecured Highly Probable Unsecured Commercially Secured $35 B $35 B $5 B $5 B $3 B $12 B $27 B $18 B Enbridge Day Current (Oct 2012) 17
Slide 18: An Industry Leading Growth Outlook
An Industry Leading Growth Outlook Adjusted EPS* Growth Highly Probable Unsecured $3.00 Commercially Secured (as at Enbridge Day) • Tilted Return Projects • 2016 Risked Unsecured • New Growth Platforms • Sponsored Vehicle Drop Downs $0.00 2011 2016e * Please refer to Non-GAAP Measures disclosure in
Slide 19: Investment Merits Summary
Investment Merits Summary • Exceptional array of attractive return investment opportunities • Financial risk tightly managed • Ample access to low cost conventional funding sources • Sponsored vehicles further augment access to low cost capital, accelerate growth Attractive investments low cost of c