Williston Basin Oil Pipeline Update March 30, 2011 10:00 am 11:30 - - PowerPoint PPT Presentation
Williston Basin Oil Pipeline Update March 30, 2011 10:00 am 11:30 am Agenda Tips For Viewers - True Companies -Q&A tab at the top of - TransCanada screen for questions - Plains All American - Close all other - Tesoro applications
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W EBI NAR, MARCH 3 0 , 2 0 1 1 BAKER 3 0 0
Getting Barrels out of the Rockies
100,000 300,000 500,000 700,000 900,000 1,100,000 1,300,000 Enbridge Platte White Cliffs
Reno Jct., WY Clearbrook, MN Guernsey, WY Casper, WY
Sinclair 22,500
Rawlins, WY
Sinclair 72,000
Denver, CO
Suncor 88,000
Mandan, ND
Tesoro 58,000
Billings, MT
ConocoPhillips 58,000 ExxonMobil 60,000 Cenex 56,000
Flint Hills Resources 298,000 MarathonAshland 70,000
Hardisty, AB Cheyenne, WY
Frontier 52,000
Regina, SK Newcastle, WY
Wyoming Refining 12,500
Great Falls, MT
Montana Refining 8,200
Chicago, I L
ExxonMobil 238,000 BP PLC 399,000 CITGO 159,000
Pipeline Export Capacity
Moving Barrels Out of the Williston Basin
Intra-Regional Constraints
185,000
Moving Barrels off the lease
100,000 150,000 200,000 250,000 300,000 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Dunn McKenzie Mountrail
~$6
~$2
Total Est. Cost To Guernsey: ~$8
~$1.5
~$2.60
Total Est. Cost To Guernsey: ~$4.10
Solutions
Pow der er River er
Alzada Baker Poplar Richey
Wyoming Montana North Dakota South Dakota Nebraska
Raymond Alexander Reno Jct.
Billings Mandan Rawlins Cheyenne Newcastle Casper
Osage Mush Creek Glendive Fisher Hwy 201 Stanley
Fryburg
Bridger Parshall Gathering
300,000 BPD INTO BAKER 300,000 BPD OUT OF BAKER
Pow der er River er
Alzada Baker Poplar Richey
Wyoming Montana North Dakota South Dakota Nebraska
Raymond Alexander Reno Jct.
Billings Mandan Rawlins Cheyenne Newcastle Casper
Osage Mush Creek Glendive Fisher Hwy 201 Stanley
Fryburg
Bridger Parshall Gathering
130,000 BPD INTO BAKER 140,000 BPD OUT OF BAKER
Pow der er River er
Alzada Baker Poplar Richey
Wyoming Montana North Dakota South Dakota Nebraska
Raymond Alexander Reno Jct.
Billings Mandan Rawlins Cheyenne Newcastle Casper
Osage Mush Creek Glendive Fisher Hwy 201 Stanley
Fryburg
Bridger Parshall Gathering
190,000 BPD INTO BAKER 170,000 BPD OUT OF BAKER
Pow der er River er
Alzada Baker Poplar Richey
Wyoming Montana North Dakota South Dakota Nebraska
Raymond Alexander Reno Jct.
Billings Mandan Rawlins Cheyenne Newcastle Casper
Osage Mush Creek Glendive Fisher Hwy 201 Stanley
Fryburg
Bridger Parshall Gathering
240,000 BPD INTO BAKER 200,000 BPD OUT OF BAKER
BFPL: 30,000
Pow der er River er
Alzada Baker Poplar Richey
Wyoming Montana North Dakota South Dakota Nebraska
Raymond Alexander Reno Jct.
Billings Mandan Rawlins Cheyenne Newcastle Casper
Osage Mush Creek Glendive Fisher Hwy 201 Stanley
Fryburg
Bridger Parshall Gathering
300,000 BPD INTO BAKER 300,000 BPD OUT OF BAKER
– With Poplar, Belle Fourche and Four Bears, most producing wells in western North Dakota and eastern Montana will be no farther than 20 miles from pipeline access.
Pow der er River er
Alzada
Baker
Poplar Richey
Wyoming Montana North Dakota South Dakota Nebraska
Raymond Alexander Reno Jct.
Billings Mandan Rawlins Cheyenne Newcastle Casper
Osage Mush Creek Glendive
Other Carriers Belle Fourche & Bridger Systems
Fisher Stanley Fryburg
Bridger Parshall Gathering
HWY 23
HWY 200Fisher Pump April 2011 Four Bears Hydrotest: April 2011 Line Fill: May 2011 Operation: June 2011 Baker Pump May 2011 Hulett Pump July 2011
Osage Pump #3 Fall 2011 Thunderbird Reactivation Fall 2011 Osage Pump #1 April 2011
W EBI NAR, MARCH 3 0 , 2 0 1 1 BAKER 3 0 0
Bakken Marketlink Project Update
North Dakota Pipeline Authority March 3 0 , 2 0 1 1 David Diakow TransCanada Oil Pipelines
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Forw ard-Looking I nform ation
This presentation m ay contain certain inform ation that is forw ard looking and is subject to im portant risks and
"forecast" or other sim ilar w ords are used to identify such forw ard-looking inform ation. Forw ard-looking statem ents in this docum ent are intended to provide TransCanada security holders and potential investors w ith inform ation regarding TransCanada and its subsidiaries, including m anagem ent’s assessm ent of TransCanada’s and its subsidiaries’ future financial and operations plans and outlook. Forw ard-looking statem ents in this docum ent m ay include, am ong others, statem ents regarding the anticipated business prospects, projects and financial perform ance of TransCanada and its subsidiaries, expectations or projections about the future, and strategies and goals for grow th and expansion. All forw ard-looking statem ents reflect TransCanada’s beliefs and assum ptions based on inform ation available at the tim e the statem ents w ere m ade. Actual results or events m ay differ from those predicted in these forw ard-looking statem ents. Factors that could cause actual results or events to differ m aterially from current expectations include, am ong others, the ability of TransCanada to successfully im plem ent its strategic initiatives and w hether such strategic initiatives w ill yield the expected benefits, the
com m odities, capacity paym ents, regulatory processes and decisions, changes in environm ental and other law s and regulations, com petitive factors in the pipeline and energy sectors, construction and com pletion of capital projects, labour, equipm ent and m aterial costs, access to capital m arkets, interest and currency exchange rates, technological developm ents and econom ic conditions in North Am erica. By its nature, forw ard-looking inform ation is subject to various risks and uncertainties, w hich could cause TransCanada's actual results and experience to differ m aterially from the anticipated results or expectations expressed. Additional inform ation on these and
Securities and Exchange Com m ission ( SEC) . Readers are cautioned to not place undue reliance on this forw ard-looking inform ation, w hich is given as of the date it is expressed in this presentation or otherw ise, and to not use future-oriented inform ation or financial outlooks for anything other than their intended purpose. TransCanada undertakes no obligation to update publicly or revise any forw ard-looking inform ation, w hether as a result of new inform ation, future events or otherw ise, except as required by law .
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About TransCanada
North Am erica’s Largest Natural Gas Pipeline Netw ork
wholly-owned
partially-owned
North Am erica’s 3 rd Largest Natural Gas Storage Operator
Canada’s Largest Private Sector Pow er Generator
Prem ier North Am erican Oil Pipeline
Enterprise Value ~ $ 4 8 billion
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Keystone Oil Pipeline
Bitum en Blend Upgraded Light Conventional Light
grow th platform
contracted
transportation alternative
Canadian exports to U.S.
Bbl/ d of U.S. supply to m arket
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Phase I
W ood River/ Patoka com m enced June, 2 0 1 0
4 3 5 ,0 0 0 Bbl/ d Phase I I - Cushing Extension
Cushing com m enced February, 2 0 1 1
5 9 1 ,0 0 0 Bbl/ d
Keystone - Phase I & I I
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approvals received Q1 2 0 1 0
expected Q4 2 0 1 1
follow ing U.S. regulatory approvals
Keystone Gulf Coast Expansion
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Keystone XL U.S. Regulatory Update
environm ental im pact statem ent ( DEI S)
( DOS) announces final stages of review
end of 2 0 1 1
supplem ental DEI S
( FEI S) is anticipated in late sum m er
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Bakken Marketlink
m ove Bakken crude directly to m ajor m arkets
1 0 0 ,0 0 0 Bbl/ d
6 5 ,0 0 0 Bbl/ d
w ith Keystone XL project
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Bakken Marketlink
Proposed Marketlink Facilities
Butte Poplar Belle Fourche Little Missouri P l a i n s
Proposed Marketlink Facilities
Butte Poplar Belle Fourche Little Missouri P l a i n s
Com petitive Advantages
USGC
pipeline and storage hub
receipt and delivery tanks
1 0
Cushing Marketlink
Cushing Crude Oil Storage Hub
47 million barrels of storage
constrained
Cushing Marketlink Project
contracts to proceed
commence in 2013
Com petitive Advantages
competitive and economic
1 1
Sum m ary
key link betw een grow ing Canadian and U.S. supply and m ajor m arkets
upon receipt of approvals expected Q4 2 0 1 1
proceeding
Marketlink w ill provide:
benefits to the U.S
Keystone XL and Bakken Marketlink
James Pinchback Director, Pipeline Business Development
March 30, 2011
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Forward-Looking Statements & Non-GAAP Financial Measures Disclosure
This presentation contains forward-looking statements, including, in
particular, statements about the plans, strategies and prospects of Plains All American Pipeline, L.P. (“PAA”) and PAA Natural Gas Storage, L.P. (“PNG”). These forward-looking statements are based on PAA’s and PNG’s current assumptions, expectations and projections about future events.
Although PAA and PNG believe that the expectations reflected in these
forward-looking statements are reasonable, PAA and PNG can give no assurance that these expectations will prove to be correct or that synergies or other benefits anticipated in the forward-looking statements will be achieved. Important factors, some of which may be beyond PAA’s or PNG’s control, that could cause actual results to differ materially from management’s expectations are disclosed in PAA’s and PNG’s respective filings with the Securities and Exchange Commission.
This presentation also contains non-GAAP financial measures relating to
both PAA and PNG. A reconciliation of these measures to the most directly comparable GAAP measures is available in the appendix to this
comparability, please visit the Investor Relations section of PAA’s website at www.paalp.com and PNG’s website at www.pnglp.com.
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Assets
(1):
Pipelines (active miles) 16,000 Liquids Storage 90 MMBbls Natural Gas Storage(2) ~71 Bcf LPG Railcars 1,400 Truck/Trailer Fleet 585 / 960 Barge/Tug Fleet 65 / 39
Crude, Product & LPG Volumes: >3.0 MMBbl/d
Operational footprint: Domestic >40 States Canada 5 Provinces
Employees ~3,500
Operational Metrics
One of the largest crude oil gathering, transportation and storage providers in North America
Strong track record of investment to meet customer needs
Invested >$2.7 Billion in organic growth since 2005;
2011 capital plan totals $550 million (3)
Solid financial positioning
$1.4 Billion of committed liquidity at 12/31/2010
Investment Grade Credit Rated (BBB-, Baa3)
(1) Includes owned or leased assets as of 12/31/10 plus assets owned by PAA Natural Gas Storage (“PNG”) (excludes leased natural gas storage capacity). Values may be approximated. Barge/Tug ownership through 50% interest in Settoon Towing. (2) Avg 2011 working gas capacity based on PNG guidance issued via Form 8K on Feb 9, 2011, includes benefit of Southern Pines acquisition. (3) Based on guidance on Form 8K issued February 9, 2011.
Plains Assets – Well Positioned to Meet the Dynamic Needs of North American Energy Markets
Assets (1): Pipelines (active miles) ~16,000 miles Liquids Storage ~90 MMBbls Nat Gas Storage (2) ~71 Bcf LPG Railcars ~1,400 Truck Fleet ~585 Trucks ~960 Trailers Barge Fleet (Settoon) ~65 Barges ~39 Tugs Crude, Product & LPG Volumes: >3.0 MMBbl/d
(1) Includes owned or leased assets as of 12/31/10, plus assets
natural gas storage capacity). Values may be approximated. Barge/Tug ownership through 50% interest in Settoon Towing. (2) Avg 2011 working gas capacity based on PNG guidance issued via Form 8K on Feb 9, 2011, includes benefit of Southern Pines acquisition.
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Plains has a Strong (and growing) Rockies Presence
Currently own >4,500 miles of pipeline in the US Rockies
Strong footprint in both the US and Canada
Have owned and operated the Trenton gathering system since 2004
Handle >400,000 barrels per day of crude oil in the Rockies
Recently completed $230 million acquisition of Nexen’s Bakken Assets
Robinson Lake pipeline
Crude oil gathering business
In November, 2010 announced our proposed Bakken North Project
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Would provide up to 75,000 barrels per day
Leverages existing asset base for more rapid and economic completion
Subject to timely receipt of permits, project to be placed into service in 4Q 2012
Part I -- Reverse Wascana Pipeline System
107-miles of 12-inch crude oil pipeline extending from U.S./Canada border to Regina, Saskatchewan
212,000 barrels of tankage
Designed throughput capacity up to 77K bpd
Part II -- Construct Bakken North Pipeline
A 103-mile, 12-inch crude oil pipeline extending from Trenton to U.S./Canada Border and connect with the southern terminus of the Wascana Pipeline System.
Initial design capacity of 50K bpd (expandable to 75K bpd with installation of additional pumping capacity)
Total Cost: $160 million to $200 million
Final cost driven by pipeline routing, materials and right of way procurement, and terminalling and connection arrangements
North Dakota Pipeline Authority Webinar March 30, 2011
Kelly S. Wilkins Manager – Planning and Development Enbridge Pipelines (North Dakota)
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Forward Looking Statements
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 information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in our SEC filings. While Enbridge makes these forward- looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Enbridge assumes no obligation to publicly update or revise any forward looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
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(185 KBD Today growing to 210 KBD)
– Phase 5 (+30 KBD to 110 KBD 1Q 2008) – Phase 6 (+51 KBD to 162 KBD 1Q 2010) – Phase 6 West of Beaver Lodge Expansion (+34 KBD to 127 KBD 4Q 2010) – Berthold Truck Station (+35 KBD 4Q 2010) – EPND Optimization (+23 KBD 1Q 2011) – Bakken Access Program – 2011 Projects
(145 KBD new export pipeline capacity)
– Portal Reversal (+25 KBD 2Q 2011) – Bakken Expansion (+120 KBD 1Q 2013) – 100 KBD Contract Priority Service – 30 KBD Uncommitted Capacity – 15 KBD Available Priority Service Capacity – Bakken Expansion Program readily expandable to 325 KBD
North Dakota Bakken Pipeline Expansion Projects
Clearbrook
Minot Weyburn
North Dakota Saskatchewan Bakken Formation Enbridge Mainline System North Dakota System (EEP) Bakken Expansion Program Saskatchewan System (ENFH)
Cromer Berthold
Beaver Lodge Steelman Alexander
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Bakken Expansion Program (Cromer)
Kenaston
Saskatchewan Manitoba CANADA North Dakota Minnesota Montana
Reserve Grenora Alexander
Beaver Lodge
Stanley Lignite
BERTHOLD
Minot
CLEARBROOK
Trenton
CROMER
Weyburn
Steelman
Midale Alida
Enbridge Mainline
1 2 3 4
1. Beaver Lodge Loop Project (16”) 2. Portal Reversal / Bakken Expansion 3. Bakken Expansion Pipeline (new 16”) 4. Cromer Terminal Upgrades 5. South of the River Initiatives
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Preserving Bakken Quality into Enbridge Mainline
% wt.
0.0000 0.0500 0.1000 0.1500 0.2000 0.2500 0.3000 0.3500 0.4000 0.4500 0.5000
1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011
EPND Common Stream Quality at Clearbrook 1Q 2007 - 1Q 2011 (Sulfur Content -- Percent)
1Q 2011: 0.17% Sulfur
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Delivering Bakken Quality into US Markets
Patoka Salt Lake City Billings Great Falls Puget Sound San Francisco Bakersfield Los Angeles Montreal Gretna Regina Kerrobert Cromer Clearbrook Superior Portland El Paso Cushing El Dorado Coffeyville Borger/Sunray Artesia Big Spring Casper Sinclair Cheyenne Denver
Toledo Toronto Catlettsburg Memphis Robinson Buffalo Chicago Corpus Christi Port Arthur Houston Lake Charles Philadelphia Lima Ardmore Fort McMurray Edmonton Cheecham Mandan
Enbridge System Refineries
Tulsa Wood River Hardisty Texas City New Orleans Kitimat
Enbridge Initiatives
Patoka
– Steady Increase in Bakken Crude Supply – Increased Product Demand in the Region – Success of 2010 Project Investments (better than anticipated)