eep enbridge energy partners feb 2010 presentation

8/14/2019 EEP Enbridge Energy Partners Feb 2010 Presentation

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ENBRIDGE ENERGY PARTNERS, L.P.

ENBRIDGE ENERGY MANAGEMENT, L.L.C.

Investment Community Presentation

February, 2010


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Click to edit Master text stylesSecond levelThird levelFourth level

Fifth level

2

Certain information during this presentation will constitute forward-looking statements. These will include, but are not necessarily limitedto, throughput volumes, financial projections, expansion or acquisitionprojects, external economics, financing assumptions and competitive

factors. These statements are based on certain assumptions madeby management. Accordingly, actual results may differ materiallyfrom current estimates. You are referred to the Enbridge EnergyPartners' SEC filings, including the annual report on Form 10-K and

quarterly reports on Form 10-Q, for a more detailed discussion of riskfactors.

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 areavailable in the investor section of the Partnership's website atenbridgepartners.com.

Legal Notice


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Fifth level

3

Corporate Structure

As of February 12, 2010

13.9%

Enbridge Inc.

(ENB)

Enbridge EnergyPartners, L.P.

(EEP)

Enbridge Energy

Management, L.L.C.

(EEQ)

24.6%

17.2%

EEPs General Partner

Owns ~ 27% of EEP

Trades on NYSE and TSE under symbol ENB

Manages affairs of EEP

Trades on NYSE under symbol EEQ

Pays non-taxable in-kind quarterly dist ribut ion

Non-taxable Master Limited Partnership

Trades on NYSE under symbol EEP

Pays quarterly cash distribution


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Fifth level

Investment Thesis

4

Attractive Yield

Stable

Distribution

Low RiskBusiness Model

Strong GeneralPartner

EEP


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Fifth level

Attractive Yield

5

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Yield(January29

,2010)

Peer Group: Large Cap Investment Grade Pipeline MLPs

Average Peer Group: 7.2%

* Source: Thomson

Attractive yield compared to peer group and other asset classes


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Fifth level

Stable Distribution

6

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

AnnualDistribu

tion

Distribution growth based on long term sustainability


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Fifth level

Low Risk Business Model

7

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Boardwalk Buckeye Magellan Plains EEP Energy T. Nustar Enterprise Oneok Kinder

FeeBasedBusines

s

Peer Group: Large Cap Investment Grade Pipeline MLPs

Median: 78%

* Source: Wells Fargo Securities, LLC estimates - MLP Monthly December 2009

78% fee based business large portion not sensitive to volumes


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Fifth levelCrude Oil68%

Natural Gas -fee based

14%

Natural GasCommodity Exposed

18%

Natural gas percentages breakdown based on gross margin basis

EEP Commodity Price Risk

0%

25%

50%

75%

100%

2010 2011e 2012e 2013e 2014e

78%

~ 50%

~40%

~30%

~20%

Hedging

8


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Fifth level

Edmonton

Toronto

Fort St. John

Houston

Chicago

Sarnia

Quebec City

Regina

Toronto

EdmontonWabamun

Strong General Partner

NormanWells

Zama

Fort McMurray

Portland

Casper

Montreal

Salt Lake City

Patoka

Cushing

Houston

Superior

Clearbrook

EdmontonHardisty

Toronto

Chicago

Liquids

Green Energy

Gas

Wind Power

NRGreen Waste Heat Recovery

North American leader in energy transportation$15 billion market capitalization, high investment grade

9
http://www.fuelcellenergy.com/index.php


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10

EEP Assets

Liquids Segment

Lakehead

North Dakota

Midcontinent

Natural Gas Segment

East Texas

North Texas

Anadarko

Diversified and strategically located to service long-lived basins


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Fifth level

11

Largest Transporter of Canadian Crude Oil to US

Edmonton

Enbridge69%

~ 11% Total US Imports

Fort McMurray

Chicago

Trans Mountain10%

Express13%

W Corridor8%

Alberta Oilsands

Hardisty

1 Source: Enbridge, Energy Information Administration

Crude oil only.

US Imports 20081 MM bpd

Canada 1.9

Enbridge 1.1

Others 0.8

Saudi Arabia 1.5

Mexico 1.2

Venezuela 1.0

Nigeria 0.9

Iraq 0.6

Angola 0.5

Algeria 0.3

Ecuador 0.2

Kuwait 0.2

Brazil 0.2

Other 1.1

Total 9.6

Capacity MM bpd

Enbridge 2.12

West Corridor 0.15

Express 0.28

Trans Mountain 0.30

Strong competitive position


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Fifth level

Western Canada Production Forecast

0

1,000

2,000

3,000

4,000

5,000

6,000

0

1,000

2,000

3,000

4,000

5,000

6,000

2009 2011 2013 2015 2017

000 bbl/d'000 bbl/d

Conventional Light

SynBit

DilBit

Synthetic Light

Blended Conventional Heavy

Synthetic Heavy

Source: Enbridge Inc.

2008Forecast

2009

Forecast

Growth driven by Canadian Oil Sands production

12


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Fifth level

Liquids Strategy

Salt Lake City

Billings

Great Falls

Puget Sound

San Francisco

Bakersfield

Los Angeles

Montreal

Gretna

Regina

Kerrobert

Cromer

Clearbrook

Superior Portland

Tanker Port

El Paso

Cushing

El DoradoCoffeyville

Borger/SunrayArtesia

Big Spring

CasperSinclair

Cheyenne

Denver

St. Paul

Toledo

Toronto

Catlettsburg

Memphis

Robinson

Buffalo

Chicago

Corpus Christi

Port ArthurHoustonLake Charles

PhiladelphiaLima

Ardmore

Fort McMurray

Edmonton

Cheecham

Mandan

Enbridge System

Canadian Supplied

No/Limited Cdn Supply

Refineries:

Tulsa

Wood River

Patoka

Hardisty

Texas City New Orleans

Provide infrastructure to maximize producers net-backs by expanding marketaccess for Western Canadian crude

13


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Fifth level

Minneapolis

WoodRiver

Clearbrook

Superior

Toronto

BuffaloSarnia

Toledo

CantonLimaRobinson

Patoka

Chicago

Catlettsburg

Cushing

Corsicana

Houston BeaumontNew Orleans

Delavan

Flanagan

Enbridge Energy Partners

Southern Access Expansion

Alberta Clipper Expansion

North Dakota Expansion14

Crude Oil System Expansions

Southern Access Expansion - Done

$2.1 billion completed in May 09

400,000 bpd additional capacity

$230 - $250 MM additional EBITDA

Volume protected

Alber ta Cl ipper Expansion Apri l10

$1.3 billion, 450,000 bpd additional capacity

ENB/EEP joint funding agreement, 2/3 ENB,1/3 EEP

$57 MM additional EBITDA to EEP

Volume protected

North Dakota Expansion Done

$0.2 billion, 80,000 bpd additional capacity

In service on January 1, 2010

$50 MM additional EBITDA

Volume protected

Building additional capacity to meet growing supply from Western Canada& Bakken Shale


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Fifth level

15

Natural Gas Assets

EEPs Natural Gas Assets are well positioned


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Fifth level

Source: Modified from Morgan StanleyNote: Red bars are regions where EEP operates

Cost of Shale Gas

$3.50

$3.50

$3.50

$3.60

$3.70

$3.90

$4.00

$4.00

$4.20

$4.30

$4.30

$4.50

$5.00

$5.00

$5.40

$5.40

$5.50

$5.50

$5.50

$5.50

$5.80

$6.20 $

7.00

$0

$2

$4

$6

$8

D

eepBossier(E.Texas)

GraniteWash(Horizonta

l)

Haynesville

Pinedale(Cres

t)

Fayetteville

Marcellus

HornRiver

Woodford(Anadarko)

Barne

tt

Pinedale(Flank)

Montney(8stagefrac)

P

iceance(Valley-Core)

Uinta(Shallow)

Eagleford

Jona

h

PowderRiver(CBM

)

AlbertaShallowGas

HorseshoeCanyon(CBM

)

Raton(CBM

)

Woodford(Arkoma)

Montney(4stagefrac)

AlbertaDeepBas

in

Piceance(Highland

s)

Required Strip for 10% IRR

Technology continues to reduce the cost of shale gas development

16


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Fifth level

Investment thesis predicated on:

Attractive yield

Stable Distribution

Strong and supportive general partner

Low risk business model

Strong competitive position in liquids and natural gas

infrastructure business provides upside potential

Summary

17


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ENBRIDGE ENERGY PARTNERS, L.P.

ENBRIDGE ENERGY MANAGEMENT, L.L.C.

Supplemental Slides


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Fifth level

19

Al located Taxable Income No Yes

Mutual Fund Limitations No Yes

Unrelated Business Taxable Income No Yes

K-1s No Yes

State Filing Obligations No Yes

Tax Considerations

EEQ EEP


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Fifth level

Financial Profile

293.7350.7 375.1

475.8553.4

766.3 884

0%

10%

20%

30%

40%

50%

60%

0

100

200

300

400

500

600

700

800

900

1000

2003 2004 2005 2006 2007 2008 2009

AdjustedDebt/Cap

EBITD

A($Millions)

EBITDA* Adjusted Debt/Cap

20* Excludes FAS 133 non-cash adjustments and other non-cash adjustments


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Fifth level

Liquids Systems Volumes

1.64 1.56 1.56 1.72 1.62 1.61 1.70 1.67

0.25

0.24 0.23

0.210.24 0.24

0.24 0.24

0.110.11 0.11

0.120.11 0.12

0.11 0.12

-

0.50

1.00

1.50

2.00

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

Volumeb

ySystem(mmbpd)

Lakehead Mid-Continent North Dakota

21


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Fifth level

Main Natural Gas Systems Volumes Rig Count

1,396 1,454 1,4431,623 1,631 1,567

1,346 1,227

616647 682

645 597594

570519

367392 388

434 408 388

382

371

-

200

400

600

800

1,000

1,200

1,400

-

500

1,000

1,500

2,000

2,500

3,000

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

AverageRigCo

untEEPMainRegions

VolumebyRegio

nThousand(mmB

tu/d)

East Texas Anadarko North Texas Rig Count

22


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Fifth level

Liquidity and Capital Requirements

Cash and Equivalents

LiquidsUndrawn Bank Facilities

Natural Gas

Undrawn EnbridgeFacility Maintenance

Alberta Clipper JointFunding Agreement

$0.0

$0.4

$0.8

$1.2

$1.6

Liquidity* 2010 Capital Requirements

$Billio

ns

* As of 12/31/2009 23


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Fifth level

Capital Expenditure (2006 2010)

Liquids

LiquidsLiquids Liquids

Liquids

Natural Gas

Natural Gas

Natural Gas Natural Gas

Natural Gas

Maintenance

Maintenance

Maintenance

Maintenance

Maintenance

$0.0

$0.4

$0.8

$1.2

$1.6

$2.0

$2.4

2006 2007 2008 2009 2010E

$Billio

ns

24

5 year expansion program largely complete


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Fifth level

Estimated Commodity Positions 2010

365

Hedge Price Value Price * Value Estimated Balance

% ** $ mm ** $mm of year 2010 $ mm

Net Equity Gas 55,483 Mmbtu/d 87% 48,221 Mmbtu/d $4.97 /MMbtu $87.4 7,262 Mmbtu/d $5.59 /MMbtu $14.8 $102

C2 2,286 bpd 84% 1,930 bpd $0.57 /gallon $16.7 356 bpd $0.67 /gallon $3.7 $20


iC4 278 bpd 107% 298 bpd $1.46 /gallon $6.7 -20 bpd $1.53 /gallon ($0.5) $6

C4 502 bpd 100% 500 bpd $1.36 /gallon $10.4 2 bpd $1.47 /gallon $0.0 $10

C5 707 bpd 100% 706 bpd $1.81 /gallon $19.5 1 bpd $1.75 /gallon $0.0 $20

Total NGLs 5,172 bpd 93% 4,785 bpd $75.4 387 bpd $4.1 $80

Condensate 1,005 bpd 94% 942 bpd $68.84/barrel $23.7 63 bpd $78.65/barrel $1.8 $25

Total Equity Length $186.5 $20.7 $207

C2 7,344 bpd 27% 2,000 bpd $0.49 /gallon $15.1 5,344 bpd $0.67 /gallon $55.1 $70

C3 3,485 bpd 57% 1,972 bpd $1.00 /gallon $30.1 1,513 bpd $1.15 /gallon $26.7 $57

iC4 951 bpd 67% 638 bpd $1.15 /gallon $11.3 313 bpd $1.53 /gallon $7.3 $19



Total NGLs 14,770 bpd 47% 6,952 bpd $101.5 7,818 bpd $106.3 $208

Shrink & Fuel (54,398) Mmbtu/d 52% (28,100) Mmbtu/d $5.72 /MMbtu ($58.6) (26,298) Mmbtu/d $5.63 /MMbtu ($54.1) ($113)

Total Frac Spread $42.8 $52.2 $95

Condensate 1,420 bpd 107% 1,523 bpd $76.67/barrel $42.6 (103) bpd $78.45/barrel ($2.9) $40

Shrink (6,978) Mmbtu/d 108% (7,502) Mmbtu/d $6.16 /MMbtu ($16.9) 524 Mmbtu/d $5.75 /MMbtu $1.1 ($16)

Condensate Frac $25.8 ($1.9) $24

$255.0 $71.1 $326

$252

$17

$595

Fee Based and Other Gross Margin

Natural Gas Marketing Gross Margin

Total Natural Gas Gross Margin

Equity

Length

Frac

Spread

Commodity Gross Margin

2010

Physical Hedged Unhedged

Volume Volume

25

Significant portion of 2010 hedging done through options


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Fifth level

26

NGLsNGL Shrink

Natural Gas Process / System Flow Diagram

Total Processed Gas

Fuel

Con

densate

LNU

Other Gas

363

Fuel

Equity

Total System Receipts:

Gas Available for

Redelivery

NGL Pipeline

NGLs under PoP/PoL

(Eqiuty Length)

and KW (Frac Spread)

Total

Treated Gas

Wholesale

Customers

3rd Party

Pipelines


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Fifth level

27

Selected Oil Sand Projects Map

FortMcMurray

Cold Lake

Lloydminster

Hardisty Hub

Edmonton

Calgary

Fort Hills System

Waupisoo Pipeline

Enbridge Mainline System

Total/ Deer Creek

(Joslyn)

PetroCanada

(MacKay River)

ConocoPhillips

(Surmont)

Opti-Nexen

(Long Lake)

Encana

(Christina Lake)

Fort HillsImperial Oil /

Exxon (Kearl)

Husky

(Sunrise)

Suncor Encana

(Borealis)

Current Operations

Commercially Secured

Future Opportunities

Total/Sinopec(Northern Lights)

Woodland Pipeline

CheechamTerminal

Athabasca Pipeline

PetroChina/ AOS

(MacKay River/Dover)

StatOil

eep enbridge energy partners feb 2010 presentation

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