Enbridge Energy Partners, L.P. Fourth Quarter 2014 Earnings & - PowerPoint PPT Presentation

Enbridge Energy Partners, L.P. Fourth Quarter 2014 Earnings & 2015 Financial Guidance Presentation February 19, 2015 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. 1 enbridgepartners.com

Agenda 1. 2014 Highlights 2. Crude Oil Price Environment Implications 3. Liquids Pipelines Growth 4. Drop down Outlook 5. 4Q Financial Results 6. 2015 Financial Guidance 7. Question & Answer 2 enbridgepartners.com

2014 Highlights Solid Financial & Project Execution: Growth Outlook on-track EEP AMZ Financial Execution 1.50 41% Total Unitholder Return 1.25 4.9% Distribution increases announced 1.00 2014 Financial guidance achieved First drop-down sale to MEP 0.75 2014 Growth Outlook Source: ThomsonOne Closed Equity Restructure with GP to enhance prospective cost of capital Completed $1 billion Drop-Down Acquisition ENB reviewing potential larger-scale US restructuring Project Execution ~$2.3 billion of growth projects placed into service Continued Focus on Safety & Operational Reliability Strong operational performance: record Liquids system deliveries ~ +20% 3 enbridgepartners.com

North American Crude Oil Pricing Differentials Enbridge is the low cost transportation provider and we will continue to grow our pipeline systems Differentials Alberta Light Peak* Current Pacific WCS - Maya (16.35) (10.11) $45 WCS – West Coast Heavy (29.32) (10.00) WCS - East Coast Heavy (14.35) (8.11) $56 WCS $47 Alberta Light – WTI (15.53) (5.15) $37 Alberta Light - Brent (18.71) (10.99) Bakken - LLS (14.00) (6.27) ANS Bakken - ANS (15.95) (6.77) Bakken Light $55 Atlantic East $45 $48 Coast Heavy Brent $56 WTI $50 LLS Light Crude Maya Heavy Crude $54 $47 February 10, 2015 pricing (Crude Prices: USD/bbl) *52 week period ended February 10, 2015. 4 enbridgepartners.com

WCSB Crude Oil Fundamentals and Outlook Long-term investment horizon of Western Canadian producers 6,000 Jan 2015: CAPP updated production forecast 5,000 4,000 Near Term Oil Sands kbpd 3,000 Near Term Oil Sands Projects in Service Projects in Service 2015 +370 kbpd 2015 +370 kbpd 2016 +110 kbpd 2,000 2016 +110 kbpd 2017 +175 kbpd 2017 +175 kbpd 1,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Actual Forecast WCSB Alternate Scenario Sources: CAPP – Crude Oil Forecast, Markets and Pipelines (June 2014) with January 2015 updates, NEB, Enbridge 5 enbridgepartners.com

Bakken Crude Supply Forecast vs Take Away Capacity 3,500 3,000 2,500 Rail Transport Capacity 2,000 kbpd 1,500 3 rd Party Pipelines 1,000 500 Enbridge Pipelines Local Refinery 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Enbridge 2014 Forecast NDPA Case 2 (Alternate Supply) Sources: Enbridge, North Dakota Pipeline Authority (January 9, 2015) 6 enbridgepartners.com

Rail Perspective Pipelines provide the most economical transportation to market kbpd kbpd Forecast Rail Volumes Rail Transportation Costs 800 From Western Canada 700 600 $8.65 Western Canada 500 to $16.05 400 300 200 $16.30 100 $8.00 to - to Bakken $22.60 2015 2016 2017 2018 2019 2020 $11.00 Alternate Senario Using CAPP Supply $12.00 Forecast Rail Volumes kbpd $13.10 to From Bakken $15.60 800 to $14.00 to 700 $18.40 $21.50 600 500 400 300 200 $12.00 to 100 $15.30 $13.00 0 to 2015 2016 2017 2018 2019 2020 $22.45 All prices are USD/bbl Using NDPA Case 2 Sources: CAPP, Genscape, Enbridge, North Dakota Pipeline Authority (January 9, 2015) 7 enbridgepartners.com 7

Strong Commercial & Fundamental Underpinnings Defensive nature of cash flows position EEP to navigate through commodity price uncertainty  Low-risk business model largely mitigates 2015e EBITDA 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 EBITDA attributable to EEP (after deducting NCI) Cost of Service/Take-or-Pay . transportation to market Fee-based: Commodity Sensitive : still plenty of supply moving by rail from WSCB and Bakken Liquids pipeline system volume outlook remains strong despite low crude oil prices 8 enbridgepartners.com

Market Access Well Advanced Transformative low-risk organic growth expected to provide substantial cash flow growth Three major initiatives provide 1.7 MMbpd of increased market access and diversification +50 kbpd +250 kbpd +50 kbpd +250 +80 Organic Growth Projects: kbpd kbpd  Commercially secured  Low risk framework +50  Long-term contracts kbpd +300 Western USGC Access Eastern Access kbpd Light Oil Market Access +600 kbpd Incremental Market Access by 2017: Light +1.0MMbpd of Heavy; Heavy +0.7MMbpd of Light 9 enbridgepartners.com