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enbridgepartners.com Enbridge Energy Partners, L.P. Capital Link Master Limited Partnership Investing Forum Mark A. Maki, President, Enbridge Energy Partners, L.P. March 5, 2015
enbridgepartners.com
Enbridge Energy Partners, L.P. Capital Link Master Limited Partnership Investing Forum
Mark A. Maki, President, Enbridge Energy Partners, L.P.
March 5, 2015
1 enbridgepartners.com
Legal Notice
This presentation includes forward-looking statements and projections, which are statements that do not relate strictly to historical
or current facts. These statements frequently use the following words, variations thereon or comparable terminology: “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “position,” “projection,” “should,” “strategy,” “target”,
“will” and similar words. Although Enbridge Energy Partners, L.P. (the “Partnership”) believes that such forward-looking statements are
reasonable based on currently available information, such statements involve risks, uncertainties and assumptions and are not
guarantees of performance. Future actions, conditions or events and future results of operations may differ materially from those
expressed in these forward-looking statements. Many of the factors that will determine these results are beyond the Partnership’s ability
to control or predict. Specific factors that could cause actual results to differ from those in the forward-looking statements include: (1)
changes in the demand for or the supply of, forecast data for, and price trends related to crude oil, liquid petroleum, natural gas and
NGLs, including the rate of development of the Alberta Oil Sands; (2) the Partnership’s ability to successfully complete and finance
expansion projects; (3) the effects of competition, in particular, by other pipeline systems; (4) shut-downs or cutbacks at the Partnership’s
facilities or refineries, petrochemical plants, utilities or other businesses for which the Partnership transports products or to whom the
Partnership sells products; (5) hazards and operating risks that may not be covered fully by insurance, including those related to Line 6B
and any additional fines and penalties assessed in connection with the crude oil release on that line; (6) changes in or challenges to the
Partnership’s tariff rates; (7) changes in laws or regulations to which the Partnership is subject, including compliance with environmental
and operational safety regulations that may increase costs of system integrity testing and maintenance; and (8) permitting at federal,
state and local levels in regards to the construction of new assets.
Forward-looking statements regarding “drop-down” growth opportunities from Enbridge Inc. are further qualified by the fact that
Enbridge Inc. is under no obligation to offer to sell us interests in its U.S. projects, and we are under no obligation to buy any such
interests. Similarly, any forward-looking statements regarding potential “drop-down” transactions of interests in Midcoast Operating to
Midcoast Energy Partners are further qualified by the fact that we are under no obligation to sell to Midcoast Energy Partners, L.P. any
such interests, and Midcoast Energy Partners, L.P. is under no obligation to buy any such interests. As a result, we do not know when or
if any such transactions will occur.
The Partnership’s forward looking statements are subject to risks and uncertainties pertaining to operating performance,
regulatory parameters, project approval and support, weather, economic conditions, interest rates and commodity prices, including but
not limited to those discussed more extensively in our filings with the U.S. securities regulators. The effect of any one risk, uncertainty or
factor on any particular forward looking statement is not determinable with certainty as these are independent and our future course of
action depends on management’s assessment of all information available at the relevant time. Except to the extent required by law, we
assume no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or
otherwise. Reference should also be made to the Partnership’s filings with the U.S. Securities and Exchange Commission (the “SEC”),
including its Annual Report on Form 10-K for the year ended December 31, 2014, for additional factors that may affect results. These
filings are available to the public over the Internet at the SEC’s web site (www.sec.gov) and at the Partnership’s web site.
2 enbridgepartners.com
Investment Highlights
One of the longest established pipeline MLPs (1991)
Track record of consistently delivering cash distributions (never reduced)
Largest pipeline transporter of crude oil production growth from Western Canada
Largest pipeline transporter of crude oil production growth from Bakken formation
Total Unitholder Return
1991 2014
Enterprise Value -
Large-Cap MLP
Commercially secured organic growth
underway
Strong Investment Grade
(S&P, Moody’s, DBRS) Low-risk transformative growth underway
Highlights
2014 Highlights
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Delivered 41% total unitholder return; increased distribution 4.9%
Equity restructure to reset IDRs and establish single tier IDR structure
Completed $1 billion drop-down acquisition from ENB
ENB is reviewing potential restructuring plan to drop-down its U.S. liquids pipeline assets to EEP (1)
~$2.3 billion of growth capital placed in service *Enterprise Value as of 1/30/15; **Return CAGR since inception to 12/31/2014 (nominal)
(1) On December 3, 2014, Enbridge Inc. ("Enbridge" or "ENB") announced it is reviewing a potential restructuring plan that would
involve the transfer of its directly held U.S. liquids pipeline assets to Enbridge Energy Partners, L.P., a U.S. affiliate of Enbridge.
This review is underway and has not progressed to a conclusion.
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65% 62%
• Owner and operator of largest crude
oil pipeline system
• ~$41 billion equity market cap
• Strong investment grade (A-, Baa1)
• Proven track record: industry leading
EPS and DPS growth • 19% 10-year TSR CAGR
• 12% 10-year DPS CAGR
• 33% dividend increase in 2015
• 14%-16% DPS growth forecast 2015-2018
• Strategy aligned with Partnership
• ~$44 billion organic growth program
underway
Strength of GP – Enbridge Inc. Strength of GP – Enbridge Inc.
ENB: North American leader in
energy delivery
Note: Standard & Poor’s/Moody’s credit ratings respectively.
Market capitalization as of February 25, 2015
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Strategic Position
Norman
Wells
Zama
Portland
Seattle
Casper
Montreal
Salt Lake
City Patoka
Cushing
Ottawa Superior
Chicago
Clearbrook
Regina
Flanagan
Hardisty
Toledo
Toronto
Sarnia Buffalo
Wood
River
Edmonton
Fort McMurray
Houston
St. James
Philadelphia
Cromer St. John
WCSB
BAKKEN
EEP Contract Storage
EEP Liquids Pipelines
ENB Liquids Pipelines
Competitive Advantages
Refiners: Access to multiple crude streams
Producers: Access to multiple premium
markets
Flexible system
Size and scale unmatched: Will expand to
~2.85 MMb/d in 2017
Positioned for Long-Term Growth
Direct connection to growing supply basins
(Heavy & Light)
High quality customer base
ENB and EEP Strategically Aligned
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WCSB Crude Oil Fundamentals and Outlook Long-term investment horizon of Western Canadian producers
Sources: CAPP – Crude Oil Forecast, Markets and Pipelines (June 2014) with January 2015 updates, NEB, Enbridge
Actual Forecast
Jan 2015: CAPP updated
production forecast
kbp
d
WCSB Alternate Scenario
Near Term Oil Sands
Projects in Service
2015 +370 kbpd
2016 +110 kbpd
2017 +175 kbpd
0
1,000
2,000
3,000
4,000
5,000
6,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Near Term Oil Sands Projects in Service
2015 +370 kbpd
2016 +110 kbpd
2017 +175 kbpd
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Bakken Crude Supply Forecast vs Take Away
Capacity
Sources: Enbridge, North Dakota Pipeline Authority (January 9, 2015)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
kb
pd
3rd Party Pipelines
Rail Transport Capacity
Enbridge 2014 Forecast NDPA Case 2 (Alternate Supply)
Enbridge Pipelines
Local Refinery
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Rail Perspective Pipelines provide the most economical transportation to market
Sources: CAPP, Genscape, Enbridge, North Dakota Pipeline Authority (January 9, 2015)
Rail Transportation Costs
$16.30
to
$22.60
All prices are USD/bbl
$15.60
to
$21.50
$15.30
to
$22.45
$13.10
to
$18.40
$8.65
to
$16.05
$8.00
to
$11.00
$12.00
to
$13.00
$12.00
to
$14.00
kbpd
7
Western Canada
Bakken -
100
200
300
400
500
600
700
800
20
15
20
16
20
17
20
18
20
19
20
20
Alternate Senario Using CAPP Supply
0
100
200
300
400
500
600
700
800
20
15
20
16
20
17
20
18
20
19
20
20
Using NDPA Case 2
Forecast Rail Volumes From Western Canada
Forecast Rail Volumes From Bakken
kbpd
kbpd
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Strong Commercial & Fundamental Underpinnings
Low-risk business model largely mitigates
volume sensitivity
Demand for crude oil and pipeline capacity
from Western Canada and Bakken remains
strong
Customer demand & connectivity
Enbridge/Partnership’s system is currently
oversubscribed
Pipelines provide the most economical
transportation to market
still plenty of supply moving by rail from WSCB and
Bakken
Liquids pipeline system volume outlook remains strong despite
low crude oil prices
2015e EBITDA
EBITDA attributable to EEP
(after deducting NCI)
Cost of Service/Take-or-Pay.
Fee-based:
Commodity Sensitive:
Defensive nature of cash flows position EEP to navigate through commodity price uncertainty
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Organic Growth Projects:
Commercially secured
Low risk framework
Long-term contracts
Market Access Well Advanced Transformative low-risk organic growth expected to provide substantial cash flow growth
Incremental Market Access by 2017: +1.0MMbpd of Heavy; +0.7MMbpd of Light
Eastern Access
Western USGC Access
Light Oil Market Access
+50
kbpd
+80
kbpd
+250 kbpd
+50 kbpd
+600 kbpd
+250
kbpd
+300
kbpd
Light
Heavy
+50
kbpd
Three major initiatives provide 1.7 MMbpd
of increased market access and diversification
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Low Cost Expansion & Extension Opportunities
New Build
HP Upgrades
Low cost phased expansions are attractive in a low
crude price environment
NTD: Map to
be updated
1
2 3 4
1
2
1
2
2
3
Market Access Opportunities kbpd
1 Eastern Gulf Coast Access 350+
2 Flanagan South / Seaway Expansions 200
3 Line 9 Expansion 70
Ex-Superior Expansion Opportunities kbpd
1 Line 61 Twin 550+
2 SAX Expansion 150
Upstream of Superior Expansion
Opportunities kbpd
1 Sandpiper Expansion/
Bakken Interconnect Idle 170
2 Line 2A/LSR Expansion 100
3 Line 2B/4 Capacity Recovery 120
4 Line 3 at 760 370
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Priority One – Focus on Safety &
Operational Reliability
Operational Risk Management Program
Industry Leadership
Third Party Damage
Avoidance and
Detection
Incident Response
Capacity
Employee and
Contractor
Occupational Safety
Public Safety and
Environmental
Protection
Integrity Management
Leak Detection
Capability and
Control Systems
• State-of-the art Liquids Pipelines control center
• Most extensive maintenance, integrity and inspection program in the history of the North
American pipeline industry
• Liquids Pipelines completed 615 in-line inspections and 8,975 verification digs (2010-2013)
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Initial Drop Down:
• $1 billion drop down from Enbridge
closed 1/2/2015
66.7% interest in the U.S. segment of
Alberta Clipper pipeline (Line 67)
• Immediately accretive
2.7% distribution increase announced
No public equity required by EEP
Drop Down Outlook:
• Enbridge reviewing potential larger
scale drop down plan to Partnership(1)
Over $10 billion of U.S. liquids
pipeline assets available
Eastern Access & Mainline Expansion
15% upsize options at cost
Enhances EEP’s distribution growth
potential
Drop Downs Boost Distributable Cash Flow Substantial drop down opportunities from ENB supports Partnership’s long-term growth outlook
Enbridge reviewing potential larger scale drop-down plan to EEP (1)
Line 67
(1) On December 3, 2014, Enbridge Inc. announced it is reviewing a potential restructuring plan that would involve the transfer of its
directly held U.S. liquids pipeline assets to Enbridge Energy Partners, L.P., a U.S. affiliate of Enbridge. This review is underway
and has not progressed to a conclusion.
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Key Takeaways
Low-risk business model
• Well positioned in current uncertain commodity price environment
• Targeting 2% – 5% annual distribution growth
Transformative growth underway
• Organic growth on-track: coverage continues to strengthen as projects enter service
Low cost organic growth potential
• Low cost ‘bolt-on’ expansion and extension opportunities remain plentiful in low crude
price environment
Strategic alignment with Enbridge supports long-term growth outlook
• Enbridge reviewing potential larger scale drop down plan to EEP (1)
Safety and operational reliability are cornerstones that underpin
our business and growth outlook
(1) On December 3, 2014, Enbridge Inc. announced it is reviewing a potential restructuring plan that would involve the transfer of its
directly held U.S. liquids pipeline assets to Enbridge Energy Partners, L.P., a U.S. affiliate of Enbridge. This review is underway
and has not progressed to a conclusion.
Supplemental Slides
Enbridge Energy Partners, L.P. Investment Community Presentation
March 2015
15 enbridgepartners.com
Corporate Structure
Corporate structure as of February 13, 2015
48.4% LP interest
46% LP
interest
2% GP interest
52% LP interest
44.4% LP
interest
Public
Unitholders
88.3% of
listed shares
Public
Unitholders
2% GP interest
38.8% LP interest (indirect)
Enbridge Inc.
(NYSE: ENB)
(Baa1 / A-)
Enbridge Energy Management,
L.L.C.
(NYSE: EEQ)
14.8% LP
interest (I-units)
11.7% of listed shares
100% voting interest
Enbridge Energy Partners, L.P.
(NYSE: EEP)
(Baa2 / BBB+)
51.6% LP interest
Midcoast Operating, L.P.
“Midcoast Operating”
Midcoast Energy Partners, L.P.
(NYSE: MEP)
Public
Unitholders
Enbridge Inc. owns
~43% of EEP
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Distributable
Cash
Pipeline System Upsize Option Capital Cost/
Book Value*
Eastern Access $0.4 (2016/2017) ~ $1.5
Mainline Expansion $0.4 (2016/2017) ~ $1.4
Line 3 Replacement** $0.4 (2018) ~ $0.9
Southern Access
Extension
- ~ $0.6
Flanagan South - ~ $2.8
Seaway/Seaway Twin - ~ $2.4
Substantial drop-down opportunities from parent supports long-term growth outlook
* Estimated capital cost or net book value of assets held by Enbridge Inc.
** Line 3 Replacement Joint Funding Agreement under consideration by a Special Committee of the independent Board of Directors., including an option to upsize EEP ownership by 15% one
year after the in-service date. Capital cost assumes 50% estimated funding by Enbridge Inc..
~ $10B +
Examples:
Enbridge Liquids Pipelines Drop-Down Potential: $10 Billion +
ENB Drop-Down Backlog:
Upsize Option- Eastern
Access and Mainline
Expansions
Alberta Clipper
Eastern Access
Mainline Expansions
Line 3 Replacement
Spearhead
Flanagan South
Seaway/Seaway Twin
Other
