- J. Richard Bird
North Americas Energy Infrastructure Renaissance TD London Energy - - PowerPoint PPT Presentation
North Americas Energy Infrastructure Renaissance TD London Energy - - PowerPoint PPT Presentation
North Americas Energy Infrastructure Renaissance TD London Energy Conference January 13, 2014 J. Richard Bird Executive Vice President, Chief Financial Officer & Corporate Development Legal Notice This presentation includes certain
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 identified by words such as “anticipate”, “expect”, “project”, “estimate”, “forecast”, “plan”, “intend”, “target”, “believe” and similar words suggesting future outcomes or statements regarding an outlook. Although we believe that our FLI is reasonable based on the information available today and processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. By its nature, FLI involves a variety of assumptions, risks, uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied in our FLI. Material assumptions include assumptions about: the expected supply and demand for crude oil, natural gas and natural gas liquids; prices of crude oil, natural gas and natural gas liquids; expected exchange rates; inflation; interest rates; the availability and price of labour and pipeline construction materials; operational reliability; anticipated in-service dates and weather. Our FLI is subject to risks and uncertainties pertaining to operating performance, regulatory parameters, weather, economic conditions, exchange rates, interest rates and commodity prices, including but not limited to those discussed more extensively in our filings with Canadian and US securities regulators. The impact of any one risk, uncertainty or factor on any particular FLI is not determinable with certainty as these are interdependent and our future course of action depends on management’s assessment of all information available at the relevant time. Except to the extent required by law, we assume no
- bligation to publicly update or revise any FLI, whether as a result of new information, future events or
- therwise. All FLI in this presentation is expressly qualified in its entirety by these cautionary statements.
This presentation will make reference to certain financial measures, such as adjusted net income, which are not recognized under GAAP. Reconciliations to the most closely related GAAP measures are included in the earnings release and also in the Management Discussion and Analysis posted to the website.
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Enbridge Infrastructure Asset Base
Norman Wells Zama Fort McMurray Portland Casper Montreal Salt Lake City Patoka Cushing Houston Superior Clearbrook Edmonton Hardisty Toronto Chicago
Liquids Pipelines
Edmonton Fort St. John Houston Chicago
15%
Gas
Sarnia
2012 Adjusted Earnings
Liquids Pipelines 67%
Power, International, & Energy Services
7% Gas 26%
Toronto Edmonton
Wind Power Generation Waste Heat Recovery Solar Power Generation Geothermal Power Generation Power Transmission
Power, International & Energy Services
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Value Creation Track Record
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11% 22% 17% 13% 12% 8%
0% 5% 10% 15% 20% 25%
1 Year 5 Year 10 Year
Total Shareholder Return (CAGR %)
Enbridge Inc. S&P/TSX Composite Index
Significant Value Creation
As at December 31, 2013
$36 Billion Growth Investment Plan
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- Unsecured
- Commercially Secured
Enbridge Day Current
$36 B
(October 2013)
$36 B
$10 B $7 B $26 B $29 B 2013 – 2017 Enterprise Wide Growth Capital In Service
North American Crude Oil Supply Growth: 2013 – 2025
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Bakken Eagle Ford Permian Basin Other
Niobrara
Oil Sands 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
Heavy Light
Cardium, Viking, Duvernay
Sources: Enbridge Internal Forecast and External Forecasts
+ 7 MMbpd by 2025
MMbpd
North American Regional Pricing Disparities
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Asia
$86 $89 $111
Alberta Light WCS Bakken Light Brent Maya
Pricing Based on Q4 2013 - Daily Average (USD per barrel)
$83 $107 $101
LLS
$98
WTI
$117 Light Crude Heavy Crude
*Brent price is a landed price on US East Coast/ US Gulf
- Coast. Assumed tanker freight cost of US$2.00 per bbl.
*
$66
Western Canada/Bakken Pipeline Takeaway Capacity: Available Versus Required
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OTHER
ENB 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2013-Q1 2014-Q1 2015-Q1 2016-Q1 2017-Q1 2018-Q1 2019-Q1 2020-Q1 2021-Q1 2022-Q1 MMbpd
2013 Enbridge Forecast 2013 Enbridge Upside Forecast Optimal Pipeline Capacity
Sources: Enbridge Internal Forecast
- Keystone XL
- ENB Northern Gateway
- TransMountain Expansion
- Energy East
New Market Access – Western U.S. Gulf Coast Access
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Cushing Houston Chicago/ Flanagan Port Arthur
Seaway Pipeline Acquisition + Reversal ($1.3B)
- Enbridge Inc. and Enterprise JV
- Reversal completed May 2012 and expansion to 400
kbpd completed Q1 2013
- Connectivity to ECHO Terminal in 2013 (65 miles)
Seaway Pipeline Twin + Lateral ($1.1B)
- Enbridge Inc. and Enterprise JV
- Twin Seaway Pipeline (515 miles)
- Initial capacity 450 kbpd, In-service Q1 2014
- Connectivity to Port Arthur (85 miles)
Flanagan South Pipeline ($2.8B)
- Enbridge Inc. 100%
- Twin Spearhead Pipeline (36-inch pipeline, 591 miles)
- Initial capacity 600 kbpd, expandable to 800 kbpd
- In-service mid-2014
2 4
2 3 4
3
Total Secured Capital = $6.4 B*
* Including Associated Mainline Expansions
600 Thousand Barrels Per Day
1 Associated Mainline Expansions ($1.2B)
- Albert Clipper to 800 kbpd (2014/2015)
- Southern Access to 560 kbpd (2014)
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New Market Access – Eastern Access
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Clearbrook Superior Sarnia Chicago Patoka Toledo Montreal Westover Hardisty
Total Secured Capital = $2.7 B
1 2 6 4 5 3 Cushing
1. Line 5 Expansion +50 kbpd (In-Service) 2. Spearhead North Expansion +105 kbpd (2013) 3. Line 6B Replacement +260 kbpd (2014) 4. Line 9A Reversal +240 kbpd (In-Service) 5. Line 9B Reversal +240 kbpd (2014) 6. Toledo Pipeline Twin +80 kbpd (In-Service)
1 2 3 4 5 6
400 Thousand Barrels Per Day
ENB funded EEP/ENB joint funded Flanagan
Clearbrook Sarnia Patoka Toledo Montreal Westover Hardisty Flanagan Chicago ENB funded EEP/ENB joint funded EEP funded
1. Associated Mainline Expansions
– Canadian Mainline Terminal Capability (2013/2015) – Southern Access to 1,200 kbpd (2015)
2. Sandpiper Pipeline +225-375 kbpd (2016) 3. Line 62 Twin +570 kbpd (2015) 4. Line 6B Expansion (2016) 5. Line 9 Expansion +60 kbpd (2014) 6. Southern Access Extension +300 kbpd (2015)
Gretna Cromer
Total Secured Capital = $6.3 B*
1 2 3 4 5 4 2 3 5 6 Stockbridge
* Including Associated Mainline Expansions
New Market Access – Light Oil Market Access
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6 1
400 Thousand Barrels Per Day
New Market Access – Under Development
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Gretna Regina Hardisty Kerrobert Toledo Buffalo Edmonton Fort McMurray Cromer Cushing Patoka Clearbrook Sarnia Chicago/ Flanagan Wood River
Asia Pacific/West Coast Refinery Markets Eastern U.S. Gulf Coast Refinery Markets Canadian/U.S. East Coast Refinery Markets
- St. James
Port Arthur Houston Montreal
Western U.S. Gulf Coast Refinery Markets Ontario/Quebec Refinery Markets
Regional Infrastructure – Alberta Oil Sands
NTD: Secured capital does not align with LRP (2013 – 2017)
- Fort Hills and Norlite should be classified as unsecured?
Edmonton
Alberta
Cheecham Terminal Kirby Lake Terminal Athabasca Terminal
Cenovus (Christina Lake) AOC (Hangingstone) JACOS (Hangingstone) Suncor (MacKay River) Suncor (Firebag) Imperial Oil (Kearl)
Norealis Terminal
Husky (Sunrise)
Hardisty
FHELP (Fort Hills) ConocoPhillips (Surmont) Wood Buffalo Pipeline Waupisoo Pipeline Athabasca Pipeline Woodland Pipeline Norealis Pipeline Athabasca Twin Pipeline Woodland Pipeline Extension Wood Buffalo Extension Norlite Diluent Pipeline Statoil (Leismer) Nexen (Long Lake)
Total Secured Capital = $6.0 B*
* Excluding ~$1B of projects that came into service in 2012
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Regional Infrastructure – Bakken
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Clearbrook
Gretna
Saskatchewan
Minot Lignite Weyburn
Cromer Berthold
Steelman Tioga Stanley
Total Secured Capital = $0.7 B
Enbridge Mainline North Dakota System Bakken Expansion Project
- 145 kbpd (In-service)
Saskatchewan System (ENF) Bakken Access Program (well connections)
- 100 kbpd (2013)
Berthold Rail
- 80 kbpd (In-service)
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Canadian Midstream Gas Gathering & Processing
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- Commercially Secured: $1.1B
– Cabin Phases 1 & 2 – Peace River Arch Gathering
- Potential Opportunities: $4.5B
– Cabin expansion phases (3–6) – Peace River Arch expansion – Montney, Duvernay and other Deep Basin infrastructure – Regional condensate & NGL pipelines & processing infrastructure
Horn River Montney Duvernay
U.S. Offshore Gulf Coast of Mexico Gathering & Processing
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- Legacy Investment $0.6B
- Commercially Secured : $1.0B
– Venice Expansion (Q4/13) – Walker Ridge Gathering (Q3/14) – Big Foot Oil Pipeline (Q4/14) – Heidelberg Oil Lateral (2016)
- Potential Opportunities: $1.5B
Offshore Earnings
($10) $0 $10 $20 $30 $40 $50 $60
2012 2013 2014 2015 2016 2017
$ millions
Gas Distribution System Reinforcement Project
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Total Secured Capital = $0.7 B
Power Generation & Transmission
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Transmission Focus Areas
500 1,000 2013 2017
MW
Transmission Capacity
1,000 2,000 3,000 2013 2017
MW
Power Generation Capacity
CDN U.S.
Solar 100 MW 50 MW Wind 1,302 MW 360 MW Geothermal
- 23 MW
Waste Heat 30 MW
- Power Generation Focus Areas
Total Secured Capital = $1.5 B
Industry Leading EPS & DPS Outlook
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2012 2017 An Industry Leading DPS Growth Outlook (smoother) 2012 2017 An Industry Leading EPS* Growth Outlook (but lumpy)
* Adjusted earnings are non-GAAP measures. For more information on non-GAAP measures please refer to disclosure in news release.
- Tilted Return
Projects
- New Growth
Platforms
- Sponsored
Vehicle Drop Downs
- EPS Growth
- Surplus
Cash Flow
Summary
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- Record portfolio of attractive investment opportunities
- Commercial and financial risk tightly managed
- Access to multiple low cost funding alternatives
- Highly visible industry leading growth including