Enbridge Inc. · TSX:ENB
Enbridge — Q3 2012 Earnings Presentation
20 slides from Enbridge's earnings presentation, Nov 7, 2012
Slide 1: 2012 Third Quarter Financial Results
2012 Third Quarter Financial Results November 7, 2012 Al Monaco President & CEO J. Richard Bird Executive Vice President, CFO and Corporate Development
Slide 2: Outline
Outline • 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: Q3 2012 Financial Results
Q3 2012 Financial Results Q3 Q3 YTD Q2 $922 Q2 (11% Growth) Q1 Q1 Year-To-Date 9% $1.10 $1.20 EPS * Please refer to Non-GAAP Measures disclosure in news release 4
Slide 5: 2012 Adjusted EPS Guidance Range
2012 Adjusted EPS* Guidance Range • On track for 2012 EPS to be well within guidance range $1.74 $1.46 $1.58 * Please refer to Non-GAAP Measures disclosure in news release. All figures are based on US GAAP reporting. 5
Slide 6: Recent Activities: Woodland Extension and Suncor Bitumen Blend Facility
Recent Activities 1. Woodland Extension • Capex = $1.0 to $1.4 Billion • 36” pipeline from Cheecham Terminal to Edmonton • Initial capacity of 400 kbpd (expandable to 800 kbpd) • In-service Date = 2015 2. Suncor Bitumen Blend Facility • Capex = $0.2 Billion • New 350 kbbls tank, pumps, and manifolds
Slide 7: Recent Activities: EGD GTA Reinforcement and Peace River Arch Assets
Recent Activities 3. EGD Greater Toronto Area Reinforcement • Capex = $0.6 Billion • 48km High Pressure 36” pipeline and related facilities • In-service Date = 2014/2015 4. Peace River Arch Assets • Capex = $0.3 Billion • Gathering system and compression infrastructure • In-service Date = 2013 7
Slide 8: Recent Activities: Heidelberg Lateral
Recent Activities 5. Heidelberg Lateral • 55km of 20” pipeline from the Heidelberg discovery to Caesar Oil Pipeline • In-service Date = 2016 8
Slide 9: Key Strategic Priorities
Key Strategic Priorities 1. Focus on Operations 2. Execute the Growth Plan 3. Extend Our Growth Rate Beyond 2016 9
Slide 10: Priority #2 – Execute the Growth Plan
Priority # 2 – Execute the Growth Plan Q4 Project Completions Expected Cost Projects In-service Date Cost Indicator Schedule Indicator ($ billion) PH1 Q4 2012 Lac Alfred $0.3 On Budget On Time PH2 Q3 2013 PH1 Q4 2012 Waupisoo Capacity Expansion $0.4 Below Budget On Time PH2 Q3 2013 Oct 2012 Wood Buf
Slide 11: U.S. Gulf Coast Access
U.S. Gulf Coast Access Zduenwwee # 3. Flanagan South Pipeline ($2.8B) | * Enbridge Inc. 100% f me ia Ye, ¢ * Twin Spearhead Pipeline (36-inch pipeline, 591 miles) al ~ * Initial capacity 585 kbpd, expandable to 800 kbpd hicago 4 * In-service mid-2014 Flanagan y te - %, 4 ¢ ‘ =/ Ciehing | #2. Seaway
Slide 12: Eastern Access
Eastern Access NBRIDGE Hardis ies ees EEP/ENB joint funded —— ENB funded Clearbrook Superior AR ( | Line 5 Expansion (2013) thicagsl + 50 kbpd capacity increase into Sarnia (540 kbpd total) Line 9 Reversal (2013/2014) + 240 kbpd reversal to access refineries in Ontario and Quebec on © oledo Pipeline
Slide 13: Light Oil Market Access Initiative
Light Oil Market Access Initiative 13
Slide 14: Segmented Earnings Variance Q3 2012 vs. Q3 2011
Segmented Earnings* Variance SEGMENT Q3 2012 vs. Q3 2011 ($ Millions) Liquids Pipelines + 41 Gas Distribution - 14 Gas Pipelines, Processing and Energy Services -5 Sponsored Investments +8 Corporate – TOTAL + 30 * Adjusted Earnings 14
Slide 15: Full Year EPS Outlook Versus Guidance
Full Year EPS* Outlook Versus Guidance Headwinds • EEP G&P • Aux Sable • EGNB $1.74 $1.58 Tailwinds • Liquids Pipelines • Enbridge Income Fund • Energy Services Guidance Range * Adjusted Earnings 15
Slide 16: Enterprise-Wide Funding and Liquidity Actions
Enterprise – Wide Funding and Liquidity Actions ($ Billions) Funding Source Q3 2012 YTD Noverco Secondary Common Equity Sale – $0.3 ENB Primary Common Equity Offering – $0.4 EEP Class A Common Unit Offering $0.4 $0.4 ENB Preferred Shares $0.9 $2.3 Medium Term Notes $0.5 $1.0 Credit Facility Addition
Slide 17: $1.2 Billion Asset Drop Down to EIF
$1.2 Billion Asset Drop Down to EIF • 12X 2013 EBITDA • Premium of $0.3 billion to ENB carrying value • $0.8 billion of funding to ENB including $0.3 billion of equity • Modestly accretive to ENB in the near term • 4% accretive to EIFH 17
Slide 18: Visible Adjusted EPS Growth from 2012–2016
Visible Adjusted EPS Growth from 2012 – 2016 Adjusted EPS Growth $3.00 Highly Probable Unsecured Commercially Secured • 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 news release
Slide 19: Summary
Summary • Well within EPS guidance range of $1.58 - $1.74 per share • Operational excellence remains our primary focus • Continued business development success • $2 Billion of projects coming into service in Q4 2012 • Diverse funding activities are ongoing • Confident in achieving industry leading E
Slide 20: 2012 Third Quarter Financial Results Q&A
2012 Third Quarter Financial Results November 7, 2012 Q&A