Spectra Energy Partners Roni Cappadonna General Manager, Investor Relations 713.627.4778 | Roni.Cappadonna@enbridge.com
Legal Statements SAFE HARBOR STATEMENT / FORWARD-LOOKING INFORMATION Some of what we’ll discuss today concerning future company performance will be forward-looking information within the meanings of the securities laws. Actual results may materially differ from those discussed in these forward-looking statements, and you should refer to the additional information contained in Spectra Energy Partners’ Form 10-K and other filings made with the SEC concerning factors that could cause those results to differ from those contemplated in today’s discussion. The terms “we,” “our,” and “us” refer to Spectra Energy Partners. Also, this communication includes certain forward looking statements and information (“FLI”) to provide shareholders and potential investors with information about us and our subsidiaries and affiliates, including management’s assessment of us and our subsidiaries’ future plans and operations, which FLI may not be appropriate for other purposes. FLI is typically identified by words such as “anticipate”, “expect”, “project”, “estimate”, “forecast”, “plan”, “intend”, “target”, “believe”, “likely” and similar words suggesting future outcomes or statements regarding an outlook. All statements other than statements of historical fact may be FLI. Although we believe that the 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, which are based upon factors that may be difficult to predict and that may involve known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by these FLI, including, but not limited to, the following: estimated future dividends; financial strength and flexibility; debt and equity market conditions, including the ability to access capital markets on favorable terms or at all; cost of debt and equity capital; expected supply and demand for crude oil, natural gas, natural gas liquids and renewable energy; prices of crude oil, natural gas, natural gas liquids and renewable energy; economic and competitive conditions; expected exchange rates; inflation; interest rates; tax rates and changes; completion of growth projects; anticipated in-service dates; capital project funding; success of hedging activities; availability and price of labor and construction materials; operational performance and reliability; customer, shareholder, regulatory and other stakeholder approvals and support; regulatory and legislative decisions and actions; public opinion; and weather. We caution that the foregoing list of factors is not exhaustive. Additional information about these and other assumptions, risks and uncertainties can be found in applicable filings with U.S. securities regulators. Due to the interdependencies and correlation of these factors, as well as other factors, the impact of any one assumption, risk or uncertainty on FLI cannot be determined with certainty. Except to the extent required by law, we assume no obligation to publicly update or revise any FLI, whether as a result of new information, future events or otherwise. All FLI in this presentation is expressly qualified in its entirety by these cautionary statements. REG G DISCLOSURE In addition, today’s discussion includes certain non-GAAP financial measures as defined under SEC Regulation G. A reconciliation of those measures to the most directly comparable GAAP measures is available on our website . 2
Investor Value Proposition Stable. Disciplined. Reliable. We go “where the lights are” – connecting diverse supply basins with regional demand markets – “last mile” competitive advantage Attractive Stable Outstanding Prudent financial distribution business model asset footprint management grow th • Primarily natural gas • Well-positioned platform • Commitment to investment • 41 st consecutive quarterly pipeline focused for further demand-pull grade balance sheet distribution increase expansion • Fee-based revenues with • Ample liquidity • Sustainable growth with • Track record of successful no direct commodity strong coverage • Successful IDR elimination exposure and minimal project execution volume risk • Strong investment-grade customers 3
Premier Asset Footprint Critical gas & liquids infrastructure Maritimes & Express Pipeline Northeast, US • Unparalleled asset footprint Algonquin • Safe, reliable operations • Connecting diverse supply basins with Platte Pipe Line growing demand markets Texas Eastern Big Sandy • Stable and predictable cash flow Ozark East • No direct commodity exposure Gas Tennessee US Transmission $2,020 MM • Minimal volume exposure Sabal Trail SESH • Strong investment-grade customers • Track record of successful project execution Gulfstream 4
Strategic Focus Maintain Rock solid base; fully subscribed reservation-based contracts with no direct commodity exposure and minimal volume risk Execute ~$2.5B of growth projects in execution Grow Infrastructure footprint with connections to major demand-pull markets offers strong advantage Sabal Trail – restored ROW 5
Business Entity Overview 2018e EBITDA U.S. Transmission Assets • Algonquin Gas Transmission Liquids • Big Sandy Pipeline ~$2.3B • Bobcat Gas Storage Assets • East Tennessee Natural Gas • Express Pipeline • Market Hub Partners • Platte Pipe Line • Ozark Gas Transmission • Saltville Gas Storage • Texas Eastern Transmission • Maritimes & Northeast, US (78%) • Sabal Trail Transmission (50%) • Gulfstream Natural Gas (50%) • Southeast Supply Header (50%) • Steckman Ridge (50%) 6
U.S. Transmission
U.S. Transmission Revenue stability in base business U.S. Transmission Reservation Revenue (Based on transmission revenues for 12 months ended 12/31/17) 2017 Usage & 99% 100% 98% 98% 98% 97% Other Revenue 95% 96% 2017 Reservation Revenue Achieved Peak Delivery Days in 2017 9 8 8 9 5 15 Average 12 25 Remaining years years years years years years years years Contract Life Texas Eastern Gulfstream Algonquin East Southeast Maritimes & Sabal Trail UST TOTAL(1) Tennessee Supply Header Northeast US (1) Includes all UST assets as presented on slide 6 of this presentation Stable core business highlights valuable footprint and provides platform for growth (1) Includes Texas Eastern, Gulfstream, Algonquin, East Tennessee, Southeast Supply Header, Ozark Gas Transmission, Big Sandy and Maritimes & Northeast US 8
U.S. Transmission Contract Portfolio 2017 US Transmission 2017 TETLP & AGT Firm Demand Revenues Firm Demand Revenues by Customer Type: by Customer Type: Marketers 21% Marketers LDCs 26% 51% LDCs Producers 41% 21% Producers 14% Pow er Gen Other 2% Other < 5% 12% Pow er Gen 4% Pipelines 3% 2017 Texas Eastern & Algonquin contract renewal rate = 98% 9
U.S. Transmission U.S. Transmission: Secured projects Greenfield pipeline Atlantic Bridge Capital Project Expected ISD ($MM) PennEast Bayway Lateral 30 4Q17 NEXUS NEXUS 1 2018 3Q18 1,300 TEAL TEAL 3Q18 200 Atlantic Bridge 2 4Q18 500 STEP 4Q18 130 Stratton Ridge 1H19 200 2019+ PennEast 1 2019 260 Lambertville East 2H19 45 Stratton Ridge Texas-Louisiana Markets 2H19 20 STEP 1) Represents SEP’s portion 2) Partial in-service Nov 2017 with remaining in 4Q18 10
Sabal Trail Transmission New interstate pipeline into Florida increases diversity of supply Project Scope: 1+ Bcf/d of capacity connecting Transco Station 85 supply to Florida power generation market CapEx: $3.2B 1 Customers: Florida Power & Light; Duke Energy Facilities: 495 miles of 36” greenfield pipeline; and 21 miles of 24” greenfield pipeline 5 new compressor stations totaling up to 210,000 horsepower; to be phased-in 2017 – 2021 Commercial Timing Volumes New metering and regulating stations; creates new Central Florida Hub with interconnects with Gulfstream, FGT and Through 1H20 70% capacity Florida Southeast Connection 1H20-1H21 90% capacity Volume ramp-up Post 1H21 100% capacity 1) CapEx shown at 100% 11
NEXUS Delivering Prolific Supply to Premium Markets Enbridge Gas • 255 miles of greenfield pipe, moving Interconnects: Distribution & LDC Union Gas 1.5 Bcf/d of Marcellus gas to markets in Power / Industrial Storage Ohio, Michigan and Ontario Pipeline Route: Daw n NEXUS • Provides a diverse, competitive supply Hub DTE Gas of natural gas to markets along the route Vector Vector Texas Eastern 12
U.S. Transmission Development opportunities Existing, attached gas-fired plant Planned gas-fired plant • Our infrastructure footprint with connections to major markets offers strong advantages for our customers • Northeast and New England demand continues to increase Market Region Expansions • Significant opportunities to serve growing natural gas-fired power market in U.S. and Mexico, LNG exports, and U.S. industrial market Power Generation Exports to LNG & Industrial Mexico 13
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