Investment Community Presentation March 2009

Transcription

1 Investment Community Presentation March 2009 ENBRIDGE ENERGY PARTNERS, L.P. 1 ENBRIDGE ENERGY MANAGEMENT, L.L.C.

2 Legal Notice Certain information during this presentation will constitute forwardlooking statements. These will include, but are not necessarily limited to, throughput volumes, financial projections, expansion or acquisition projects, external economics, financing assumptions and competitive factors. These statements are based on certain assumptions made by management. Accordingly, actual results may differ materially from current estimates. You are referred to the Enbridge Energy Partners' SEC filings, including the annual report on Form 10-K and quarterly reports on Form 10-Q, for a more detailed discussion of risk factors. This presentation will make reference to certain financial measures, such as adjusted net income, which are not recognized under GAAP. Reconciliations to the most closely related GAAP measures are available in the investor section of the Partnership's website at enbridgepartners.com. 2

3 EEP and Enbridge Inc. Strategic Position Normal Wells Zama Fort St. John Edmonton Fort McMurray Cheecham Hardisty Seattle Portland Salt Lake City Casper Clearbrook Superior Toronto Buffalo Sarnia Toledo Chicago Montreal Ottawa Saint John Cushing Wood River Patoka Liquids Pipelines Gas Pipelines Gas Distribution Wind Farms Houston 3

4 EEP / EEQ - Investment Proposition y Safety Seattle Regina Portland Salt Lake City Casper Kansas City Clearbrook Superior Chicago Sarnia Ottawa Toledo Montreal Toronto Buffalo Saint John El Dorado Cushing Wood River Patoka Income Houston Growth 4

5 Risk Profile Diversified Business Liquids Segment Natural Gas 40% Volume Protected 40% Liquids 60% Natural Gas Segment Natural Gas Segment - Commodity Exposure Commodity Exposed 47% Fee Based and Others 53% Unhedged 34% Hedged 66% Based on 2009 Outlook. Percentages based on Gross Margin for Natural Gas and Operating Revenues for Liquids 5

6 Diversified Asset Base Chicago Wood River Patoka Toledo Buffalo Cushing Houston EEP Liquids Systems EEP Gas Systems Enbridge Liquids Systems 6

7 Largest Transporter of Canadian Crude Oil to US US Imports MM bpd Trans Mountain 10% W Corridor 8% Alberta Oilsands Edmonton Hardisty Express 13% Fort McMurray Enbridge 69% Canada 1.9 Enbridge 1.1 Others 0.8 Saudi Arabia 1.4 Mexico 1.4 Venezuela 1.1 Nigeria 1.1 Angola 0.5 Iraq 0.5 Algeria 0.4 Ecuador 0.2 Kuwait 0.2 Brazil 0.2 Other 1.4 Total 10.3 Chicago > 10% Total US Imports Capacity MM bpd Enbridge 2.00 West Corridor 0.15 Express 0.28 Trans Mountain Source: Enbridge, Energy Information Administration Crude oil only. 7

8 WCSB Crude Oil Outlook (MM b/d) Actual Forecast CAPP Updated Interim Forecast (Moderate Growth) Raw Bitumen Synthetic Crude Raw Conventional Heavy Imported & Recycled Condensate Pentanes Plus Conventional Light (MM b/d) Actual Forecast Extended Markets (East/West Coast, PADD III) PADD II PADD V PADD IV Eastern Canada Western Canada Source: Enbridge Inc. (2007 Survey) and CAPP (December 11, 2008 Crude Oil Forecast Interim update Moderate Growth Case) 8

9 Southern Access Expansion Clearbrook Superior Minneapolis Southern Access Expansion Delavan Flanagan Chicago Sarnia Toledo Toronto Buffalo Cushing Wood River Robinson Canton Lima Patoka Catlettsburg Corsicana Houston Beaumont New Orleans Enbridge Partners Southern Access Expansion 9

10 Alberta Clipper Expansion Clearbrook Alberta Clipper Expansion Superior Minneapolis Toronto Delavan Flanagan Chicago Sarnia Toledo Buffalo Cushing Wood River Robinson Canton Lima Patoka Catlettsburg Corsicana Houston Beaumont New Orleans Enbridge Partners Southern Access Expansion Alberta Clipper Expansion 10

11 North Dakota System Expansion Clearbrook North Dakota System Expansion Superior Minneapolis Toronto Delavan Flanagan Chicago Sarnia Toledo Buffalo Cushing Wood River Robinson Canton Lima Patoka Catlettsburg Corsicana Houston Beaumont New Orleans Enbridge Partners Southern Access Expansion Alberta Clipper Expansion North Dakota Expansion 11

12 EEP Main Natural Gas Assets Anadarko Basin Granite Wash Haynesville Shale Fort Worth Basin Barnett Shale East Texas Basin Bossier Sands 12

13 Natural Gas Outlook Rig Count - EEP Main Areas Production Forecast Lower Number of Rigs Bcf / day Nov-07 Feb-08 May-08 Aug-08 Nov Gulf Coast Midcontinent Other Lower 48 Source: Baker Hughes Survey Source: EIA Annual Energy Outlook December

14 Current Liquidity and Capital Requirements ( ) Undrawn Enbridge Facility:$ 0.5 M aintenance: $0.1 Natural Gas: $0.3 $ Billions Undrawn Bank Facilities: $ Liquids: $ 1.2 M aintenance: $ 0.1 Natural Gas: $ Cash and Equivalents: $0.3 Liquids: $0.3 Current Liquidity 2009 Capital Requirements 2010 Capital Requirements 14 14

15 Funding Requirements ( ) Estimated Capital Expenditures 2.2 Less: Internal Cash Flow (0.3) Net Funding Requirement 1.9 Debt* Total Requirement 1. 1 Equity Total Requirement 0.8 Less: PIK (0.2) Remaining to be Funded 1.1 Remaining to be Funded 0.6 * Excluding refinancing Amounts in $ billions Private market transactions Public market transactions Support from identified investors / General Partner Public market transactions Sales of non-core assets Asset Monetizations 15

16 Financial Profile 54% 53% 53% 50% 48% 48% EBITDA $ millions EBITDA * Adj Debt/Cap * Excludes FAS 133 non-cash adjustments and other non-cash adjustments 16

17 Summary Sustainable Business Model Strong Competitive Position Prudent Growth Financial Strength Support from Enbridge Inc. 17

18 Supplemental Slides ENBRIDGE ENERGY PARTNERS, L.P. 18 ENBRIDGE ENERGY MANAGEMENT, L.L.C.

19 Corporate Structure Enbridge Inc. (ENB) ENB EEP Sponsor and has ~27% indirect ownership. 100% Enbridge Energy Company, Inc. (EECI) EECI General Partner 17% 25% Enbridge Energy Management, L.L.C. (EEQ) 13% 83% Public EEQ pays nontaxable in-kind quarterly distributions (PIK). Yield: [ 14% ] Enbridge Energy Partners, L.P. (EEP) 62% Public EEP nontaxable master limited partnership. Makes quarterly cash distributions. Yield:[ 14% ] Effective February 13,

20 Tax Considerations EEQ EEP Allocated Taxable Income No Yes Mutual Fund Limitations No Yes Unrelated Business Taxable Income No Yes K-1s No Yes State Filing Obligations No Yes 20

21 Financial Outlook $540 $ $510 $ Millions $355 $ $223 $270 $255 $ Adjusted Operating Income Depreciation Adjusted Net Income Operating Income Depreciation Net Income 2008 Actuals 2009 Guidance Range 21

22 Financial Outlook 2009 (cont d) Forecast Liquids Systems Revenues and Average Toll * Cost of Service ** Volume Sensitive SAE* Revenue, $ Billion FSM* SEP II* Index / Terrace Expansion** Lakehead Revenue, $ Billion Phase V Expansion* Index** North Dakota Storage Index** Midcontinent $1.26/bbl $1.37/bbl $0.45/bbl SAE: Southern Access Expansion FSM: Facility Surcharge SEP II: System Expansion II 22

23 Estimated Commodity Positions, Risk Management, Natural Gas Pipelines and Marketing 2009 Forecast Physical Hedge Hedged Wtd Avg. Hedged Estimated Estimated Market Unhedged Estimated % Volume Hedge Price $ mm Unhedged Volume Price $ mm Value $mm Net Equity Gas 59,386 Mmbtu/d 67% 39,999 Mmbtu/d $5.51 /MMBtu $80 19,387 Mmbtu/d $5.66 /MMBtu $40 $120 Equity Length C2 2,314 bpd 54% 1,252 bpd $0.63 /gallon $12 1,062 bpd $0.46 /gallon $7 $20 C3 1,593 bpd 58% 926 bpd $1.06 /gallon $ bpd $0.72 /gallon $7 $22 ic4 352 bpd 62% 218 bpd $1.17 /gallon $4 134 bpd $0.90 /gallon $2 $6 NC4 589 bpd 74% 438 bpd $1.20 /gallon $8 151 bpd $0.87 /gallon $2 $10 C bpd 54% 500 bpd $1.60 /gallon $ bpd $0.93 /gallon $6 $18 Total NGLs 5,780 bpd 58% 3,334 bpd $1.01 /gallon $51 2,446 bpd $0.67 /gallon $25 $76 Condensate 1,170 bpd 62% 725 bpd $59.09 /barrel $ bpd $57.36 /barrel $9 $25 Total Equity Length $147 $74 $222 Frac Spread C2 7,821 bpd 22% 1,751 bpd $0.76 /gallon $20 6,070 bpd $0.46 /gallon $43 $63 C3 3,266 bpd 98% 3,210 bpd $1.07 /gallon $53 56 bpd $0.72 /gallon $1 $53 ic4 960 bpd 60% 574 bpd $1.31 /gallon $ bpd $0.90 /gallon $5 $17 NC4 1,346 bpd 63% 845 bpd $1.33 /gallon $ bpd $0.87 /gallon $7 $24 C5+ 2,011 bpd 79% 1,581 bpd $1.60 /gallon $ bpd $0.93 /gallon $6 $45 Total NGLs 15,404 bpd 52% 7,961 bpd $1.15 /gallon $141 7,443 bpd $0.67 /gallon $62 $202 Shrink & Fuel (59,631) Mmbtu/d 56% (33,443) Mmbtu/d $8.07 /MMBtu ($99) (26,188) Mmbtu/d $5.67 /MMBtu ($54) ($153) Total Frac Spread $42 $7 $50 Condensate 1,508 bpd 0% 0 bpd $59.09 /barrel $0 1,508 bpd $57.36 /barrel $32 $32 Shrink (8,311) Mmbtu/d 0% 0 Mmbtu/d $8.04 /MMBtu $0 (8,311) Mmbtu/d $5.49 /MMBtu ($17) ($17) Condensate Frac $0 $15 $15 Commodity Gross Margin $190 $97 $286 Fee Based and Other Gross Margin $295 Natural Gas Marketing Gross Margin $25 Total Natural Gas Gross Margin $606 $ in millions 23

24 Natural Gas Process / System Flow Diagram Fuel LNU Condensate NGL Shrink NGLs NGL Pipeline NGL s under PoP/PoL (Eqiuty Length) Total Processed Gas and KW (Frac Spread) Total System Receipts: Fuel 363 Wholesale Customers Total Treated Gas Other Gas Gas Available for Redelivery Equity 3 rd Party Pipelines 24

25 Selected Oil Sand Projects Map Total/ Deer Creek (Joslyn) Suncor PetroCanada (MacKay River) ConocoPhillips (Surmont) Fort Hills Fort McMurray Imperial (Kearl) Cheecham Terminal Husky (Sunrise) Encana (Borealis) Opti-Nexen (Long Lake) Encana (Christina Lake) Waupisoo Pipeline Edmonton Cold Lake Athabasca Pipeline Lloydminster Hardisty Hub Enbridge Mainline System Calgary 25

26 Selected Oil Sands Projects Current Producing Volume Under Project Volume Capacity Construction Year Ultimate Company Project (000 bpd) (000 bpd) (000 bpd) Prod. AOSP Jackpine* TBD CNRL Athabasca Projects 255 TBD CNRL Horizon Upgrader TBD CNRL Primrose TBD Conoco/Total/Devon Surmont TBD Devon Energy Jackfish EnCana Borealis 100 TBD EnCana Christina Lake TBD EnCana Foster Creek TBD Husky Sunrise 200 TBD Husky Tucker Imperial/ExxonMobil Kearl Lake 300 TBD Imperial/ExxonMobil Cold Lake TBD Jacos Hangingstone TBD * Not included in total to avoid double count, volume expected to be consumed at the respective upgraders Source: Strategy West Inc. (February 2009) 26

27 Selected Oil Sands Projects continued Current Producing Capacity (000 bpd) Volume Under Construction (000 bpd) Company Project Project Volume (000 bpd) MEG Christina Lake TBD Nexen-OPTI Long Lake Upgrader TBD Petro-Canada Mackay River 1 & TBD Year Ultimate Prod. Petro-Canada/UTS Fort Hills (Mine) 190 TBD Energy Shell Orion TBD Shell Carmon Creek 100 TBD Shell/Chevron/Western Athabasca Oil Sands Project Statoil (NAOSC) Kai Kos Deseh TBD Suncor Millennium Expansion & TBD Voyageur Suncor Firebag* TBD Syncrude Aurora Mine & Upgrader TBD SynEnCo Northern Lights 115 TBD Total Joslyn Creek In Situ TBD Total Joslyn Creek Mine 200 TBD Total Ultimate 5,843 1, * Not included in total to avoid double count, volume expected to be consumed at the respective upgraders Source: Strategy West Inc. (February 2009) 27

28 Market Access Outlook for Western Canadian Crude Oil Tanker Port Ft. Hills Fort McMurray Edmonton Cheecham Hardisty Refineries: Puget Sound San Francisco Bakersfield Los Angeles Enbridge System Market Access Options Canadian Supplied No/Limited Cdn Supply Great Falls Billings Salt Lake City Cheyenne Artesia Denver El Paso Kerrobert Regina Cromer Gretna Casper Sinclair McPherson El Dorado Coffeyville Ponca City Cushing Borger/Sunray Mandan St. Paul Clearbrook Big Spring Port Arthur Houston Texas City Freeport Corpus Christi Superior Chicago Wood River Tulsa Ardmore Lake Charles New Orleans Toledo Lima Robinson Patoka Memphis Catlettsburg Montreal Toronto Buffalo Philadelphia Portland 28

29 Enbridge Energy Partners ENBRIDGE ENERGY PARTNERS, L.P. 29 ENBRIDGE ENERGY MANAGEMENT, L.L.C.