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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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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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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Investment Thesis
4
Attractive Yield
Stable
Distribution
Low RiskBusiness Model
Strong GeneralPartner
EEP
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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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Stable Distribution
6
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
19
92
19
93
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00
20
01
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02
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03
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20
09
AnnualDistribu
tion
Distribution growth based on long term sustainability
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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
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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
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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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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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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
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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
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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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Natural Gas Assets
EEPs Natural Gas Assets are well positioned
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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
$8
D
eepBossier(E.Texas)
GraniteWash(Horizonta
l)
Haynesville
Pinedale(Cres
t)
Fayetteville
Marcellus
HornRiver
Woodford(Anadarko)
Barne
tt
Pinedale(Flank)
Montney(8stagefrac)
P
iceance(Valley-Core)
Uinta(Shallow)
Eagleford
Jona
h
PowderRiver(CBM
)
AlbertaShallowGas
HorseshoeCanyon(CBM
)
Raton(CBM
)
Woodford(Arkoma)
Montney(4stagefrac)
AlbertaDeepBas
in
Piceance(Highland
s)
Required Strip for 10% IRR
Technology continues to reduce the cost of shale gas development
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Investment thesis predicated on:
Attractive yield
Stable Distribution
Strong and supportive general partner
Low risk business model
Strong competitive position in liquids and natural gas
infrastructure business provides upside potential
Summary
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ENBRIDGE ENERGY PARTNERS, L.P.
ENBRIDGE ENERGY MANAGEMENT, L.L.C.
Supplemental Slides
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Al located Taxable Income No Yes
Mutual Fund Limitations No Yes
Unrelated Business Taxable Income No Yes
K-1s No Yes
State Filing Obligations No Yes
Tax Considerations
EEQ EEP
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Financial Profile
293.7350.7 375.1
475.8553.4
766.3 884
0%
10%
20%
30%
40%
50%
60%
0
100
200
300
400
500
600
700
800
900
1000
2003 2004 2005 2006 2007 2008 2009
AdjustedDebt/Cap
EBITD
A($Millions)
EBITDA* Adjusted Debt/Cap
20* Excludes FAS 133 non-cash adjustments and other non-cash adjustments
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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
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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
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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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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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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
C3 1,399 bpd 97% 1,351 bpd $1.06 /gallon $22.0 48 bpd $1.15 /gallon $0.8 $23
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
C4 1,269 bpd 96% 1,214 bpd $1.08 /gallon $20.1 55 bpd $1.47 /gallon $1.2 $21
C5 1,721 bpd 66% 1,128 bpd $1.44 /gallon $24.8 593 bpd $1.75 /gallon $15.9 $41
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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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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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