Enbridge Income Fund Holdings Inc.

Transcription

1 Enbridge Income Fund Holdings Inc. Positioned for the Future 2014 Annual & Special Meeting of Shareholders Perry Schuldhaus, President May 5 th, 2014

2 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 otherwise. 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. 2

3 2013 HIGHLIGHTS Executing on Our Strategies and Well Positioned for the Future Focused on operational excellence and system integrity Successfully integrated new assets acquired in late 2012 Brought into service $190M Bakken Expansion Pipeline Delivered strong financial results Increased dividend by 3% Successfully accessed capital markets 3

4 INVESTOR RETURNS Year Total Shareholder Return Compound Annual Growth Rate 400 ENF 14.4% 300 S&P/TSX 8.0%

5 2011 & 2012 ASSET DROP DOWNS Year Asset Gross Capacity Price 2011 Ontario Wind 190 MW Talbot Wind 99 MW Sarnia Solar 80 MW $1.2B 2012 Greenwich Wind 99 MW Amherstburg Solar Tilbury Solar Hardisty Contract Storage 15 MW 5 MW 11 million barrels $1.2 B All assets are underpinned by long term, fixed price contracts Well positioned to respond to further acquisition opportunities Asset drop downs from Enbridge Inc. 5

6 ASSET PORTFOLIO 19% 37% 2013 CAFD* 44% Green Energy Crude Oil Transportation & Storage Natural Gas Transmission * Cashflow from operating assets before working capital adjustments and corporate expenses, less maintenance capex, plus distributions from Alliance and NRGreen. Cash Available for Distribution (CAFD) before Corporate expenses, CAFD is a non-gaap measure. 6

7 ($ millions) ($ millions) FINANCIAL RESULTS Enbridge Income Fund ENF CAFD* CAFD Enbridge Income Fund Holdings Inc. Net Income $300 $250 $263 $100 $80 $87 $200 $196 $60 $60 $150 $100 $40 $50 $20 $ $0 2010* * Cashflow from operating assets before working capital adjustments, less maintenance capex, plus distributions from Alliance and NRGreen. Cash Available for Distribution. CAFD is a non-gaap measure Dividend Declared ($MM) Dividend per Share $1.342 $1.244 *Enbridge Income Fund Holdings Inc. was incorporated to a Corporation from a Trust in December

8 Q FINANCIAL RESULTS (Millions of Canadian dollars) ENBRIDGE INCOME FUND Q1 14 Q1 13 Cash Available for Distribution Total Payout 76.5% 77.5% ENBRIDGE INCOME FUND HOLDINGS Net Income Dividend Declared ($MM) Dividend per Share $0.344 $

9 GREEN ENERGY KEY PRIORITIES Optimize asset utilization Continued focus on safety and asset integrity ENF 28% Complete 14 MW waste heat facility Resource Wind Solar Waste Heat Gross Generating Capacity 459 MW 100 MW 20 MW S&P/TSX 13% 2013 vs Operating Performance TOTAL 579 MW 27% 9

10 LIQUIDS TRANSPORTATION & STORAGE Saskatchewan System Saskatchewan Pipeline Systems KEY PRIORITIES Focus on operational reliability and pipeline integrity program Customer Connections Attract volumes back from rail ENF 28% Complete Cromer interconnect Pipeline Capacity (bpd) Westspur 255,000 Saskatchewan Gathering System 255, vs Operating Performance Weyburn 45,000 - Virden 35,000 Bakken Expansion* 145,000 * In-service date March 1,

11 LIQUIDS TRANSPORTATION & STORAGE Hardisty Storage Alberta Regional Infrastructure KEY PRIORITIES Optimize operations Pursue customer-driven expansions & connections Integrate new assets ENF 28% MMbpd 7.0 Forecast Western Canada Production Oil Sands Conventional Heavy Conventional Light & Medium Pentanes/Condensate 11

12 NATURAL GAS TRANSMISSION Alliance Canada KEY PRIORITIES Re-contract capacity post 2015 Optimize operations Connect new rich gas production ENF 28% Alliance Pipeline Regional Supply Bcf/d 12.0 Bakken Duvernay 6.0 Montney Current Total Capacity 1.6 Bcf/day Alliance Canada

13 DIVIDEND GROWTH $1.15 $1.15 $1.17 $1.24 $1.34 $0.86 $0.91 $0.93 $0.96 $

14 STRATEGY Optimize operations and performance of existing assets Acquire complementary infrastructure Leverage growing supply in existing asset regions Grow organically Maintain low risk value proposition 14

15 SUMMARY Positioned for the Future 15

16 Q & A 2014 Annual & Special Meeting of Shareholders