FORWARD LOOKING STATEMENTS This presentation includes certain forward - - PowerPoint PPT Presentation
FORWARD LOOKING STATEMENTS This presentation includes certain forward - - PowerPoint PPT Presentation
FORWARD LOOKING STATEMENTS This presentation includes certain forward looking information (FLI) to provide Enbridge Income Fund Holdings Inc. (EIFH) shareholders and potential investors with information about EIFH and its investee,
FORWARD LOOKING STATEMENTS
This presentation includes certain forward looking information (“FLI”) to provide Enbridge Income Fund Holdings Inc. (“EIFH”) shareholders and potential investors with information about EIFH and its investee, Enbridge Income Fund (the “Fund”), including management's assessment of their future plans and operations, which may not be appropriate for other
- purposes. The FLI pertains to expected in-service dates and costs for projects, expectations regarding operations,
performance and growth, projections of cash available for distributions and future distributions and dividends. 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 the FLI in this presentation is reasonable based on the information available today and the processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. FLI inherently involves a variety of assumptions, known and unknown risks, uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied in the FLI. Material assumptions about: expected supply and demand for crude oil, natural gas, natural gas liquids and green energy; prices of crude oil, natural gas, natural gas liquids and green energy; expected exchange rates; inflation; interest rates; availability and price of labor and construction materials; operational reliability; customer project approvals; maintenance of support and regulatory approvals; anticipated in-service dates and weather. Further, the FLI is subject to risks and uncertainties pertaining to operating performance, regulatory parameters, project approval and support, construction schedules, weather, economic conditions, exchange rates, interest rates and commodity prices, including but not limited to those discussed more extensively in our filings and the filings of the Fund with Canadian 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 the future course of action of EIFH and/or the Fund depends on management's assessment of all information available at the relevant time. Except to the extent required by law, neither EIFH nor the Fund assumes any obligation 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 may make reference to certain financial measures, such as cash available for distribution, which are not recognized under GAAP. Reconciliations to the most closely related GAAP measures are included in the MD&A filings and/or Supplementary Financial Information available on our website or in the slides that accompany this presentation, if applicable.
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HIGHLIGHTS Completed $1.16B acquisition of crude storage and green power facilities Delivered strong financial results Increased dividend by 8% Successfully accessed capital markets Focused on operational excellence and system integrity
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Another Strong Year
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5 Year – Total Shareholder Return
Total Return Index December 31, 2007 = 100
100 200 300 400
2007 2008 2009 2010 2011 2012
ENF = 28% TSX = 1%
90 100 110 120 130
2011 2012
1 Year – Total Shareholder Return
Total Return Index December 31, 2011 = 100
ENF = 27% TSX = 7%
INVESTOR RETURNS
Delivering Shareholder Value
A Great Fit for Our Fund
ASSET ACQUISITION – DECEMBER 2012 $1.16 Billion
Hardisty Contract Terminals & Storage Caverns Greenwich Wind Project Amherstberg & Tilbury Solar Projects
- 11 million barrels of contract
storage in Hardisty, Alberta
- 99 MW of generation capacity
near Thunder Bay, Ontario
- 15 MW and 5 MW solar
facilities in Southern, Ontario
All underpinned by long-term, fixed price contracts.
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ASSET PORTFOLIO
* Cash Available for Distribution (CAFD) before Corporate expenses, pro forma the acquisition of crude oil storage and renewable energy assets acquired in December 2012 as if these assets were owned by the Fund from January 1, 2012. CAFD is a non-GAAP measure.
2012 Proforma CAFD*
ENBRIDGE INCOME FUND HOLDINGS INC. 2012 2011 Common Unit Interest in Enbridge Income Fund (Avg.) 80.9% 74.2% Distribution Income 59.8 40.3 Income Tax
- (2.9)
Net Income 59.8 37.3 Dividends Declared 52.8 34.8 Annual Dividend per Share $1.244 $1.166
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CAD $millions, unless otherwise noted
2012 FINANCIAL RESULTS
ENBRIDGE INCOME FUND 2012 2011 Cash Available for Distribution 195.6 134.3 Preferred Distributions (80.8) (58.8) Common Distributions (73.6) (53.5) Total Payout 79% 84%
ENBRIDGE INCOME FUND 2012 2011 Cash Available for Distribution 70.2 56.3 Preferred Distributions (28.5) (19.6) Common Distributions (25.9) (17.8) Total Payout 78% 66% ENBRIDGE INCOME FUND HOLDINGS INC. 2012 2011 Common Unit Interest in Enbridge Income Fund 85.6% 80.7% Distribution Income 22.2 14.4 Income Tax (1.0) (0.1) Net Income 21.2 14.3 Dividends Declared 18.3 12.3 1st Quarter – Dividend per Share $0.334 $0.309
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CAD $millions, unless otherwise noted
2013 FIRST QUARTER FINANCIAL RESULTS
LIQUIDS TRANSPORTATION & STORAGE Saskatchewan System
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System Capacity (kbpd) Current Toll Methodology Regulator
Saskatchewan Gathering 255 Cost of Service Saskatchewan Weyburn 47 Market Based Saskatchewan Virden 37 Market Based Manitoba Bakken Expansion Program 145 Long Term Take or Pay NEB Westspur 255 Fee for Service1
- downside protection
NEB
1 Pending ratification by NEB
Bakken Expansion Program
Total Bakken Production
North Dakota, Saskatchewan, & Manitoba
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2012 2013 2014 2015 2016 2017 2018 2019 2020 MMbpd
LIQUIDS TRANSPORTATION & STORAGE Saskatchewan System
KEY PRIORITIES Expand market access
- Address downstream system
bottlenecks Pursue customer connections
ENB Mainline
Bakken Expansion Program 10
CAPP Western Canadian Production Forecast
MMbpd
LIQUIDS TRANSPORTATION & STORAGE Contract Storage
KEY PRIORITIES Optimize operations Pursue customer-driven expansions
0.0 1.0 2.0 3.0 4.0 5.0
2012 2013 2014 2015 2016 2017 2018 2019 2020
Oil Sands Conventional Heavy
- Conv. Light and Medium
Pentanes/Condensate
Hardisty
Stonefell Cheecham Athabasca Edmonton Kirby Lake
Source: CAPP – Crude Oil Forecast, Markets & Pipelines (June 2012)
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1,425 – 1,528 Btu/cf 970 – 1,005 Btu/cf 985 – 1,200 Btu/cf 1,020 – 1,170 Btu/cf
NATURAL GAS TRANSMISSION Alliance Canada
MMcf/d
Very Rich Gas: > 1,400 Btu/cf Rich Gas: 1,050 < 1,400 Btu/cf Lean Gas: < 1,050 Btu/cf
200 400 600 800 1,000 1,200 1,400 1,600 1,800
2007 2008 2009 2010 2011 2012 Alliance Volumes Firm Capacity
Firm service contracts in place for ~99%
- f capacity through December 2015.
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Supply Outlook
NATURAL GAS TRANSMISSION Alliance Canada
Bcf/d
KEY PRIORITIES Re-contract capacity past 2015 Optimize operations Connect new rich gas production
Very Rich Gas: > 1,400 Btu/cf Rich Gas: 1,050 < 1,400 Btu/cf Lean Gas: < 1,050 Btu/cf
1,425 – 1,528 Btu/cf 970 – 1,005 Btu/cf 985 – 1,200 Btu/cf 1,020 – 1,170 Btu/cf
3 6 9 12 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Montney Duvernay Bakken
Source: Enbridge 2013 Fundamentals Outlook
Current Total Capacity – Alliance Canada Current Firm Service (Tolled) Capacity – Alliance Canada
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Ontario Assets
GREEN POWER Renewable Generation Facilities
Western Assets
Whitecourt (under construction)
KEY PRIORITIES Maximize availability Optimize power generation Pursue expansion opportunities
- Complete 14 MW waste heat facility
Facility Gross Generating Capacity
- Avg. Remaining
Contract Length
Ontario Wind 190 MW 17 Years Talbot 99 MW 19 Years Greenwich 99 MW 19 Years Magrath 30 MW 12 Years Chin Chute 30 MW 5 Years SunBridge 11 MW 10 Years Sarnia 80 MW 18 years Amherstburg 15 MW 19 Years Tilbury 5 MW 18 Years NRGreen Waste Heat 20 MW 15 Years
TOTAL 579 MW
- Wtd. Avg.
~ 17 Years
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STRATEGY
Our Strategies are Straight Forward and Remain the Same
Optimize operations and value of existing assets Grow organically Acquire complimentary infrastructure Maintain low risk value proposition
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DIVIDEND GROWTH
Reliable Dividends; Steady Growth
$0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e
Dividends/Distributions to Investors
Per Share
Taxable Distribution paid by Enbridge Income Fund prior to restructuring in December 2010 Eligible Dividend paid by Enbridge Income Fund Holdings Inc. post restructuring
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- Diversified asset base
- Strong long-term fundamentals
- Enhanced access to capital
- Enbridge sponsorship
STRENGTH AND STABILITY
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