FORWARD-LOOKING INFORMATION

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2 FORWARD-LOOKING INFORMATION This Corporate Presentation contains certain forward-looking statements or information (collectively referred to as forward-looking statements ) within the meaning of applicable securities legislation. All statements, other than statements of historical fact included in this Corporate Presentation, which address activities, events or developments that Inter Pipeline expects or anticipates to occur in the future, are forward-looking statements. Forward-looking statements often contain terms such as "may", "will", "should", "anticipate", "expect", continue, estimate, believe, project, forecast, plan, intend, target, "outlook", "focus", "could" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements in this Corporate Presentation include, but are not limited to, statements regarding: 1) Inter Pipeline s belief that it is well positioned to maintain its current level of dividends to its shareholders; 2) Inter Pipeline being well positioned to operate and grow in the future including anticipated benefits of acquisitions and growth opportunities associated with acquisitions; 3) financial forecasts or anticipated financial performance; 4) timing and cost of capital projects, and forward EBITDA (as defined herein) estimates in respect of these projects (including PDH and PP facilities); and 5) capital expenditure forecasts. Readers are cautioned not to place undue reliance on forward-looking statements, as such statements are not guarantees of future performance. Inter Pipeline in no manner represents that actual results, levels of activity and achievements will be the same in whole or in part as those set out in the forward-looking statements herein. Such information, although considered reasonable by Inter Pipeline may later prove to be incorrect and actual results may differ materially from those anticipated in the forward-looking statements. Inter Pipeline applies a variety of factors and assumptions when making forward-looking statements and making forecasts, projections, predictions or estimations, which include, but are not limited to, Inter Pipeline s ability to successfully implement its strategic initiatives and achieve expected benefits; Inter Pipeline s ability to maintain its investment grade credit ratings; the availability and price of labour, equipment and materials; assumptions concerning operational reliability; the availability and price of energy commodities; the availability of adequate levels of insurance; and general economic and business conditions. By their nature, forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, which are beyond Inter Pipeline s control, including, but not limited to: the status, credit risk and continued existence of customers having contracts with Inter Pipeline and its affiliates; competitive factors, pricing pressures and supply and demand in the oil and gas transportation, natural gas liquids (NGL) processing and storage industries; fluctuations in currency and interest rates; risks of war, hostilities, civil insurrection, instability and terrorist actions, as well as political and economic conditions, in or affecting countries in which Inter Pipeline and its affiliates operate; public opinion regarding the production, transportation and use of oil and gas; severe weather and environmental conditions; risks associated with technology; Inter Pipeline s ability to access external sources of debt and equity capital; the potential delays of, and costs of overruns on, construction projects in all of Inter Pipeline s business segments; Inter Pipeline s ability to make capital investments and the amounts of capital investments; changes in laws and regulations, including environmental, regulatory and taxation laws, and the interpretation of such changes to Inter Pipeline s business; the risks associated with existing and potential or threatened future lawsuits and regulatory actions against Inter Pipeline and its affiliates; increases in maintenance, operating or financing costs; difficulty in obtaining necessary regulatory approvals or land access rights and maintenance of support of such approvals and rights; the realization of the anticipated benefits of acquisitions; and such other risks and uncertainties described from time to time in Inter Pipeline s reports and filings with the Canadian securities authorities. The impact of any one assumption, risk, uncertainty or other factor on a particular forward-looking statement cannot be determined with certainty, as these are interdependent and Inter Pipeline s future course of action depends on management s assessment of all information available at the relevant time. Readers are cautioned that the foregoing list of assumptions, risks, uncertainties and factors is not exhaustive. See also the section entitled RISK FACTORS of Inter Pipeline s most recent Management s Discussion and Analysis filed on SEDAR at for further risk factors. The forward-looking statements contained in this Corporate Presentation are made as of the date of this document and, except to the extent expressly required by applicable securities laws and regulations, Inter Pipeline assumes no obligation to update or revise forward-looking statements made herein or otherwise, whether as a result of new information, future events, or otherwise. The forward-looking statements contained in this document and all subsequent forward-looking statements, whether written or oral, attributable to Inter Pipeline or persons acting on Inter Pipeline s behalf are expressly qualified in their entirety by these cautionary statements. 1

3 INTER PIPELINE Operates world scale energy infrastructure assets Stable in an uncertain market with strong balance sheet and investment grade credit rating Sustainable dividend profile with upside growth potential Well positioned to capitalize on future growth opportunities 2

4 WORLD SCALE ENERGY INFRASTRUCTURE ASSETS Oil Sands Transportation NGL Processing Conventional Oil Pipelines Bulk Liquid Storage 2017 March YTD EBITDA 49% 26% 17% 8% 2.3 million b/d of contracted capacity Over 240,000 b/d of production capacity 3,900 km pipeline network in western Canada 27 million barrels of storage capacity in Europe 3

5 AREAS OF OPERATION 2017 March YTD EBITDA 8% 92% Canada Europe SWEDEN DENMARK IRELAND ENGLAND GERMANY 4

6 LOW RISK BUSINESS STRATEGY WELL DIVERSIFIED Large-scale and strategically located assets Capital-efficient growth opportunities OPERATIONAL EXCELLENCE Exceptional EH&S performance and reliability Industry leading project execution DIVIDEND GROWTH & STABILITY 14 consecutive dividend increases 5 year dividend CAGR ~9% STABLE CASH FLOW 75% of EBITDA from cost of service and fee based contracts Majority investment grade counterparties STRONG FINANCIAL POSITION Solid balance sheet Excellent access to capital markets BBB+ credit rating 5

7 DIVIDEND GROWTH $/Share 9.0% CAGR F $1.49 $1.57 $1.62 $1.32 $1.18 $0.84 $0.84 $0.85 $0.91 $0.97 $ F 6.8% CAGR F 2017F based on actual dividends to May 2017 and $0.135/share per month thereafter 6

8 DIVIDEND STABILITY $ Million $900 $600 $300 $ FFO Dividend FFO Dividend FFO Dividend FFO Dividend FFO Dividend FFO Dividend Oil Sands Transportation Conventional Oil Pipelines Bulk Liquid Storage NGL Processing FFO is attributable to shareholders and before sustaining capital; corporate costs have been allocated based on IPL assumptions 7

9 RECENT DEVELOPMENTS Record pipeline throughput of 1,461,300 b/d during Q th consecutive dividend increase to $1.62 per share annually Acquired the remaining 15% interest in Cold Lake for $528 million Secured a new long term cost of service contract for CNR s Kirby North project Acquired a large scale ethane-plus extraction, transportation and fractionation business for $1.35 billion Potential propane dehydrogenation ( PDH ) and polypropylene ( PP ) facility development totaling ~$3.1B 8

10 2017 March YTD EBITDA 49% 9

11 OIL SANDS TRANSPORTATION AOSP CNR KIRBY NORTH CNR KIRBY SOUTH IMPERIAL KEARL HUSKY SUNRISE SUNCOR AOC HANGINGSTONE JACOS / NEXEN HANGINGSTONE FCCL CHRISTINA LAKE FCCL NARROWS LAKE Three major oil sands pipeline systems with combined ultimate capacity of 4.6 million b/d Corridor Cold Lake Polaris CNR PRIMROSE / WOLF LAKE FCCL FOSTER CREEK OSUM ORION IMPERIAL COLD LAKE Over 3,300 km of pipeline and 3.8 million barrels of storage LAMONT TERMINAL BRUDERHEIM FACILITY Long term cost of service agreements Substantial available capacity for 3 rd party growth projects 10

12 CORRIDOR PIPELINE CAPACITY 000 s b/d 1,400 1,400 1,200 1, POTENTIAL 3 RD PARTY CAPACITY** CONTRACTED VOLUMES 0 Current Throughput* Installed Capacity Ultimate Capacity *Period ended March 31, 2017; ** subject to existing shipper approval 11

13 COLD LAKE PIPELINE CAPACITY 000 s b/d 1,800 2,000 1,600 AVAILABLE CAPACITY 1,900 ~645 1,400 1,200 1, CONTRACTED VOLUMES ~1, Original Cold Lake FCCL CNR Kirby North & South Osum Orion Ultimate Capacity 12

14 POLARIS PIPELINE CAPACITY 000 s b/d 1, AVAILABLE CAPACITY 1,300 ~ CONTRACTED VOLUMES ~ FCCL Imperial Kearl Husky Sunrise CNR Kirby North & South Suncor Connection JACOS Hangingstone AOC Hangingstone Ultimate Capacity 13

15 OVER-BUILD STRATEGY (000 s b/d) Contracted Available Ultimate Cold Lake 1, ,900 Corridor * 1,400 Polaris ,300 Total Capacity 2,265 2,335 4,600 Successfully completed expansion of the Cold Lake and Polaris pipeline systems increasing total available capacity to 2.3 million b/d Over-build economics supported by existing contracts Well positioned to accommodate high return bolt-on projects Identified ~$4 billion of long term potential oil sands opportunities *Subject to existing shipper approval 14

16 ATTRACTIVE BOLT-ON PROJECT MULTIPLES Total Capital ($ Million) $ x 6.0x 4 PROJECTS $300 Over $580 million in announced bolt-on oil sands connections $ x 4.0x 4 PROJECTS 11 connections with an average EBITDA multiple of ~3.2x $100 $0 < 2.0x 3 PROJECTS EBITDA Multiple Range Identified growth opportunities largely composed of bolt-on projects 15

17 COMPETITIVE ADVANTAGE Less regulatory risk Less capital risk Less schedule risk Greater flexibility to accommodate small & large scale projects 16

18 2017 March YTD EBITDA 26% 17

19 NGL PROCESSING Pioneer I & II ~40,000 b/d Capacity Large scale NGL infrastructure Boreal Pipeline ~43,000 b/d Capacity Cochrane ~100,000 b/d Capacity Redwater Olefinic Fractionator ~40,000 b/d Capacity Empress II & V* ~105,000 b/d Capacity Three straddle plants strategically located on the TransCanada Alberta System Two offgas plants with dedicated supply agreements Boreal pipeline with low cost expansion up to 125,000 b/d Ethane-plus fractionation at Redwater Potential PDH and PP facility development totaling ~$3.1 billion Successful integration of Williams Canada acquisition *50% working interest in the Empress V facility 18

20 WILLIAMS CANADA ACQUISITION SUMMARY Acquired during a low period in the commodity cycle Price of $1.35 billion represents a 45% discount to original cost of ~$2.5 billion Contributed $37 million in EBITDA during Q compared to ~$40 million in fiscal 2015 Expected to be immediately accretive to funds from operations per share Diversifies and strengthens existing large scale NGL processing business Underpinned by long term supply and ethane-ethylene sales agreements Retained employees provide offgas and petrochemical expertise 19

21 OFFGAS PROCESSING, PDH & PP OVERVIEW 1 Market Propane 2 AECO Offgas Plants Offgas Boreal Pipeline System Ethane- Ethylene Mix Redwater Olefinic Fractionator Redwater Propane Proposed PDH Facility PDH Polymer Grade Propylene Proposed PP Facility AECO Offgas Marketed Products Polypropylene 1 2 Extraction of ethane-plus from offgas received directly from Suncor and CNRL Horizon upgraders The ethane-plus mix is transported to the Redwater Olefinic Fractionator via the Boreal pipeline system where it is fractionated Propane sourced from Redwater Olefinic Fractionator and the local market would be processed at PDH facility into polymer grade propylene Polymer grade propylene to be used as feedstock at the PP facility and processed into polypropylene 20

22 OFFGAS VOLUMES AND COMPOSITION 000 s b/d Ethane-Ethylene Contract In Service Redwater Olefinic Fractionator Product Composition* Ethane-Ethylene 39% Propane 28% Normal Butane 8% Polymer Grade Propylene 12% Alky Feed 9% Q Redwater Olefinic Fractionator sales volume Olefinic Condensate 4% Pioneer II offgas extraction facility in service since February 2016, adding 15,000 b/d of production capacity Volumes for 2016 were negatively impacted by: Wildfires in the Fort McMurray region Planned Suncor upgrader turnaround *For the period ended March 31, 2017; composition based on production volumes which may differ from sales volumes 21

23 PDH AND PP OPPORTUNITY Proposed petrochemical complex that will convert propane into polypropylene Design capacity to consume ~22,000 b/d of propane to produce ~525,000 tonnes per year of polypropylene Polypropylene is a high value, easy to transport plastic used in the manufacturing of a wide range of finished products Awarded $200 million of royalty credits under the Alberta Government s Petrochemical Diversification Program As at March 31, 2017, ~$250 million invested on the PDH and PP facilities Targeting FID around mid-2017 In service date expected mid

24 2017 March YTD EBITDA 17% 23

25 CONVENTIONAL OIL PIPELINES 3,900 km of oil pipelines servicing over 100 producers 100% fee based business, excluding midstream marketing Strong production from Viking formation 10-year take or pay agreement on the Bow River pipeline system 24

26 CONVENTIONAL EBITDA $ Million $ % CAGR $150 $100 $50 $ Oil Gathering Hardisty Midstream Marketing 25

27 250 CONVENTIONAL THROUGHPUT 000 s b/d Q Mid-Saskatchewan Bow River Central Alberta 26

28 2017 March YTD EBITDA 8% 27

29 BULK LIQUID STORAGE IRELAND Shannon Tyne ENGLAND Seal Sands Riverside Immingham West Immingham East Gothenburg DENMARK Ensted GERMANY Asnaes Malmo Stigsnaes Gulfhavn Mannheim North Mannheim South SWEDEN Gavle Sodertalje 16 petroleum and petrochemical storage terminals Approximately 27 million barrels of storage capacity Fee based revenue structure Average utilization rate of 99%* *Period ended March 31,

30 STRATEGIC DRIVERS Long-life infrastructure assets Strong organic and acquisition based investment potential Geographic diversification, mature markets 100% fee based cash flow Strong financial results despite low commodity price environment 29

31 CAPACITY UTILIZATION Storage (Million barrels) Utilization (%) % 24 80% 18 60% 12 40% 6 20% 0 0% Q Q Q Q Q Q UK, Ireland & Germany Denmark Sweden Consolidated Utilization 30

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33 FINANCIAL DISCIPLINE Total Recourse Debt* as at March 31, 2017 ~30% ~70% Consolidated Net Debt to Total Capitalization 70% 60% 50% 40% 30% Covenant: Max 65% Fixed Rate Recourse Debt Floating Rate Recourse Debt 20% 10% 0% Q Committed to maintaining our investment grade credit ratings of BBB (high) by DBRS and BBB+ by S&P *Based on book values 32

34 INTER PIPELINE CREDIT STRENGTH Oil Sands Transportation ($779 million) NGL Processing ($435 million) Conventional Oil Pipelines ($365 million) Bulk Liquid Storage ($246 million) 98% 95% 60% 30% 14 customers 20+ customers 100+ producers ~135 customers Initial contract term 20+ years Average contract length of ~7 years Typical exposure of 55 days Average contract length of ~2 years Investment Grade Revenue (2016)* Non Investment Grade Revenue (2016) Over 80% of Inter Pipeline s revenue is sourced from investment grade entities* *IPL s Canadian operations include investment grade counterparties or contractual rights to obtain a guarantee from an investment grade parent; IPL s European operations include subsidiaries of investment grade parents where IPL typically has the contractual right to customary security; includes Williams Canada acquisition from September 23, 2016 December 31,

35 MTN MATURITY PROFILE $ Million $1,000 Weighted average: cost of debt of ~3.6%; maturity of ~9 years $800 $600 $400 $200 $ Manageable debt maturity profile limits refinancing risk 34

36 EBITDA BY BUSINESS SEGMENT $ Million $1,200 $1,000 $800 $600 $400 $200 $ Oil Sands Transportation Conventional Oil Pipelines Bulk Liquid Storage NGL Processing 35

37 70% EBITDA BY CONTRACT TYPE 70% 70% 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10% 10% 10% 0% Q % Q % Q Cost of Service No volume or commodity price exposure and flow-through of operating costs* Fee Based Volume & operating cost exposure but no commodity price risk Commodity Based Volume and commodity price exposure *Original Cold Lake TSA based on modified cost of service contract as detailed in IPL s AIF; see forward looking information 36

38 LOOKING FORWARD Solid track record of increasing shareholder value Continued focus on developing potential growth opportunities Cost of service contracts expected to continue to generate majority of future cash flow Fee based and cost of service cash flow alone should support future dividends Well positioned to sustain dividends with upside growth potential 37

39 CONTACT INFORMATION SUITE 3200, 215 2ND STREET SW CALGARY, ALBERTA T2P 1M4 PHONE: PHONE: (403) FAX: (403) WEB: INTERPIPELINE.COM INVESTORRELATIONS@INTERPIPELINE.COM 38