Enbridge Inc. · TSX:ENB
Enbridge — Investor Presentation (September 2006)
25 slides from Enbridge's investor presentation, Sep 7, 2006
Slide 1: Customer Focused, Shareholder Driven
Customer Focused, Shareholder Driven Investment Community Presentation August 2006 Investment Community Presentation 1 August 2006
Slide 2: Legal Notice
Legal Notice Certain information provided in this presentation constitutes forward-looking statements. The words "anticipate", "expect", "project" and similar expressions are intended to identify such forward looking statements. Although Enbridge believes that these statements are based on informati
Slide 3: Delivering Superior Growth
Delivering Superior Growth 10 Year Total Shareholder Return CAGR "TSR" 700.0 20.9% 600.0 500.0 400.0 300.0 11.3% 11.0% 9.1% 200.0 100.0 0.0 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Enbridge TSX Composite S&P 500 North American Peer Average N.A. Peers include: Tran
Slide 4: Continuing to Outperform
Continuing to Outperform “Enbridge is, in our view, the premier growth story in North American energy infrastructure today. Here is why…” Focused on fundamentals and customers’ solutions Experienced management team delivering on a consistent strategy Geographic and operational diversification – posi
Slide 5: Three Strong Businesses Connecting Supply With Demand
Three Strong Businesses Connecting Supply With Demand 2005 Adjusted Earnings Inuvik International Norman Wells Sponsored 13% Liquids Investments 10% Pipelines 38% Gas 29% 10% Zama Distribution Fort St. John Gas Pipelines Fort McMurray Edmonton Hardisty Seattle Regina Portland Clearbrook Saint John S
Slide 6: Largest Transporter of Canadian Crude Oil to US
Largest Transporter of Canadian Crude Oil to US 1 US Imports 2005 (million barrels/day) Canada 1.6 Enbridge 1.0 Others 0.6 Alberta Oilsands Mexico 1.6 Fort McMurray Saudia Arabia 1.4 Transmountain Edmonton Venezuela 1.2 5% Nigeria 1.1 Hardisty Enbridge Iraq 0.5 63% Angola U.K. 0.4 0.2 W Corridor 9%
Slide 7: Oil Sands Growth
Oil Sands Growth SUPPLY DEMAND (000 BPD) (000 BPD) Aggregate (000 B/D) (000 B/D) 5500 5,500 Actual Producers Forecast 4500 4,500 5000 5,000 4000 4500 4,500 West Coast Exports 4,000 Enbridge Forecast 3500 3,500 4000 4,000 PADD III 3500 3,500 3000 3,000 3000 Raw Bitumen 3,000 2500 2,500 2500 2,500 200
Slide 8: Liquids Strategy: Broadening Market Access
Liquids Strategy Broadening Market Access Norman Wells Contract Terminalling (C$1.4B) Gateway Zama (C$4.0 B) Fort McMurray Regional Infrastructure Kitimat (C$1.9B) Major Announced Projects In-Service Edmonton Alberta Clipper Vancouver Hardisty Spearhead Q1 2006 (US$2.1B) Seattle Regina Southern Acce
Slide 9: Gas Strategy: Linking Growing Supply to Market
Gas Strategy Linking Growing Supply to Market Inuvik Alaska Mackenzie Pipeline Delta Fort St. John Rabaska Edmonton (C$280 M, 2010) Alliance Pipeline Quebec City Toronto LNG Sarnia Chicago Enbridge Pipelines Kansas City Vector Pipeline EEP Infrastructure Alliance Canada (ENF) Potential Projects New
Slide 10: Sponsored Investments: Efficient Use of Capital
Sponsored Investments Efficient Use of Capital Enbridge Income Fund • Potential future growth for Alliance Fort St. John • Among the lowest cost of capital in sector • Attractive unitholder return since Edmonton Alliance inception Pipeline Regina Clearbrook Superior Toronto Sarnia Buffalo Chicago To
Slide 11: International – Quality Assets, Superior Risk-Adjusted Returns
International – Quality Assets Superior Risk-Adjusted Returns Ocensa (Colombia) Liquids Transportation C$ 3.5 Billion Asset 24.7% ENB Interest Full Cost of Service Model 60% Market Share 260,000 bpd Throughput 519 miles of Pipeline Spain CLH (Spain) Covenas C$ 2.0 Billion Asset OCENSA Liquids Transp
Slide 12: Corporate Development: New Growth Platforms
Corporate Development New Growth Platforms Wind Power – Increase scale of business – 200 MW Leader project in Ontario Gas-Fired Power Generation – Focus on in-franchise opportunities New Technologies – Value Creation 12 12 Investment Community Presentation August 2006
Slide 13: Grow Prudently
Grow Prudently Adjusted Earnings per Share* Dividend per Share $1.80 90% Dividend Payout Ratio $1.60 80% $1.40 70% $1.20 60% $1.00 50% $0.80 40% $0.60 30% $0.40 20% $0.20 10% $0.00 0% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006e * 1995-2002 adjusted EPS reflects quarter lag basis of
Slide 14: Financial Strength
Financial Strength “A” Stable Credit Ratings Strong Balance Sheet Free Cash Flow Funds Growth Adjusted Debt Capitalization (1) 100% $1,000 Gross Free Cash Flow (2) 72% $800 66% 62% 61% 60% $600 50% $400 $200 0% $0 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec-05 Adjuste d Debt Capita liza tion Gross Free
Slide 15: Summary
Summary Experienced Management Team, Consistent Strategy Customer Focused Customer Value Translates into Shareholder Value Unprecedented $13 Billion Organic Growth Projects in Oil Pipelines Financial Strength & Flexibility Geographic and Operational Diversification 15 16 Investment Community Present
Slide 16: Appendix
Appendix 16 Investment Community Presentation August 2006
Slide 17: 52 Years and Counting / Float Ownership
52 Years and Counting… Enbridge Inc. Historical Share Price and Dividends Annual Dividend Share Price Annual Dividend ($C per share) Share Price ($C) 5.00 40.00 4.00 30.00 AGR 3.00 %C 13.3 TS R= ear 20.00 52 Y 2.00 10.00 1.00 0.00 0.00 1953 1957 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001
Slide 18: Timely Pipeline Expansion / Market Access Pricing Impacts
Timely Pipeline Expansion (000 BPD) (000 BPD) 3,000 2006 CAPP Forecast 3,000 New Pipeline 3 2,500 2,500 New Pipeline 2 2,000 2,000 New Pipeline 1 Southern Access 1,500 1,500 Current Unutilized 1,000 Export Capacity 1,000 Enbridge Market Unconstrained Case 500 500 0 0 2005 2007 2009 2011 2013 2015 C
Slide 19: Alberta Oilsands Regional Pipeline Development
Alberta Oilsands Regional Pipeline Development Norman Wells Zama Fort McMurray Kitimat Edmonton Hardisty Vancouver Seattle Regina Portland Montreal Casper Toronto Buffalo Salt Lake City Chicago Wood Patoka River Cushing Refineries Canadian Supplied Not Canadian Supplied Houston Enbridge Pipelines Po
Slide 20: New Market Access Initiatives
New Market Access Initiatives Gateway Project Target Markets Target Gateway Market 250 kbpd (2%) Total Far East Market 0N Mil es • Kitimat 15,500 kbpd ,00 Korea ro x5 • Japan • App 1,400 N Miles China• • Los Angeles •Taiwan Approx 10 ,000 N M Jose/ iles Persian • La Cruz •Gulf Target Gateway Market
Slide 21: Gas Distribution Steady Growth
Gas Distribution Steady Growth Inuvik Gaz Metro • Principal distributor of natural gas in Quebec • Serves nearly 160,000 EGNB customers • Constructing a new distribution system Saint John Montreal Ottawa Toronto Enbridge Gas New Brunswick Gaz Metro Saint John Gazifere Montreal Ottawa Enbridge Gas Di
Slide 22: Deep Water Gulf Sustained Production / Free Cash Flow
Deep Water Gulf Sustained Production Expected North American Deepwater Gulf of Mexico Gross Gas Withdrawals Proved and Potential Gas Reserves (Trillion Cubic Feet) (Tcf) 4 400 350 3 300 250 Louisiana 2 Texas 200 150 1 100 50 0 0 Lower 48 GOM Alaska WCSB East Coast McKenzie 1990 1995 2000 2005 2010 2
Slide 23: Manage Financial Risk
Manage Financial Risk Minimal Earnings at Risk Diversified Counterparties As at December 31, 2005 2005 Hedged Rated BBB- to Partially at 3% BBB+ Risk 3% 23% Rated BB Rated A- or 6% Higher 29% Non-Rated 6% High Regulated Confidence Utility 94% 36% M 29 Control Financial Market Risks Earnings at Risk
Slide 24: Enbridge Securities / Non GAAP Reconciliation
Enbridge Securities 10-Yr RRSP IRA Tax TSX NYSE Yield¹ Growth TSR¹ Friendly Friendly Treatment Dividend/ Enbridge Inc. Common ENB ENB 21% 3.2% 6-7% Yes Yes Cap Gain Income/ Enbridge Income Fund ENF.UN - 24%* 6.3% 1-2% Yes No Cap Gain R W Enbridge Inc. Preferred Shares (A) ENB.PR.A - 6%* 5.5% - Yes Y
Slide 25: Non GAAP Reconciliation: 2005 Segmented Earnings
Non GAAP Reconciliation 2005 Segmented Earnings Gas Liquids Gas Sponsored Distribution Pipelines Pipelines Investments and Services International $ millions Reported Earnings 229.1 59.8 64.8 178.8 87.4 Adjusting Items 0.0 0.0 -3.9 -7.3 -7.6 Adjusted Earnings 229.1 59.8 60.9 171.5 79.8 (1) Operating