Presented by Mark Njeru Shui Hong Lam (Rex) Adrian Sadeli Kondwani Vwalika Agenda

• Industry Overview 1

• TransCanada Pipeline 2

• Enbridge 3

• Pembina 4 Industry Overview

• Natural gas and crude oil – 2/3 of Canadian’s energy needs

• 97% transported by pipelines

• >50% of Canadian households use natural gas for heating

• Household products from crude oil include:

• Pharmaceuticals • Lubricants • Perfumes, lipstick

• Interesting fact: One 42-gallon barrel of oil creates 19.4 gallons of gasoline (roughly 50%) History

ROLE OF PIPELINES:

1st pipeline in Canada – 1853. 25 kilometre cast-iron pipe moving natural gas to Trois Rivières, QC 1st oil pipeline – 1862. From Petrolia, ON to Sarnia, ON. Types of Pipelines

• Liquid pipelines (LP) • Crude oil, Natural gas • Refined petroleum products

• Natural Gas (NG) pipelines • Ethane, Methane and Propane Pipeline Systems

Gathering system Most gathering systems located in Western Canada Trunk pipelines Eastern Canada Distribution system Equally divided between Eastern and Western Canada Canadian Liquid Pipeline Map Canadian NG Pipeline Map Role of Pipeline Companies

• Offer the following services:

 Gathering  Transportation  Processing  Fractionation  Storage  Marketing

• Are not engaged in exploration and production

• Do not take ownership of the commodity (gas + crude oil) Industry Overview – Key Stats

Total production of 4.4 million barrels per day in 2015 5th largest in the world 99% of its export goes to U.S (largest source of oil for US)

173 billion barrels of proven reserve in 2015 3rd largest in the world (Saudi Arabia and Venezuela higher) Able to produce at current rates for the next 150-200 years Industry Overview – Production

Source: US Energy Information Administration; Data includes crude oil, lease condensate, natural gas plant liquids, and refinery processing gain; Updated Feb. 11, 2016 Energy Consumption

Oil + Natural Gas – 69% of Canada’s total energy consumption Crude Oil Production

• Canada is a net exporter of crude oil. Production is increasing Natural Gas Production

• Canada is 5th in the world in dry natural gas production and 4th largest exporter. Industry Structure Sources of Oil Production

• Offshore: Off the Atlantic coast of Newfoundland • Conventional Oil: Western Canada Sedimentary Basin • Oil Sands: Northern Alberta and Canadian Arctic Conventional vs Oil Sands

Conventional Oil – Petroleum found in liquid form, flowing naturally or capable of being pumped without further processing or dilution – Cheaper to produce

Oil Sands  Synthetic Crude Oil – Oil Sands is a thick mixture of sands, bitumen, mineral rich clays and water – Synthetic crude oil is extracted from oil sands and it is often sold at a premium because of its high quality – More costly to produce – No drilling risk for the near surface oil sands Different Crude Oil Grades (API vs Sulfur content) Oil Sands How are Pipelines constructed?

• Pre-construction 1. Surveying and staking 2. Preparing right of way 3. Digging the trench 4. Stringing the pipe

• Construction 1. Bending and joining the pipe 2. Coating pipeline 3. Positioning 4. Installing valves and fittings 5. Backfilling the trench

• Post-construction 1. Pressure testing 2. Final clean-up Liquid Fuel Delivery Network Natural Gas Delivery Network How is Crude Oil Processed?

Fractional Distillation

• Essential process in distillation of liquid mixtures.

• Separate the mixture into its component parts or fractions based on the differences in volatilities Natural Gas Fracking

• Rock is fractured by a pressurized liquid • Involves high pressure injection of fracking fluid (water + sand) • Creates cracks in the deep-rock formations through which natural gas, petroleum, and brine will flow more freely • When the hydraulic pressure is removed from the well, small grains of hydraulic fracturing proppants (either sand or aluminium oxide) hold the fractures open. Natural Gas Fracking – The Process Natural Gas Fracking - Disadvantages Alternatives for Fuel Transport

TRUCKS • Short distances • Small capacity

SHIPS • Across continents • Risky – Oil Spills

RAIL • Inland • Large capacity Railway Transport

Rail transport is expected to continue to rise due to the protracted regulatory processes for new pipelines and other uncertainties.

BENEFITS OF RAIL TRANSPORT • Optionality/Flexibility: Already existing rail tracks in place to reach East Coast, West Coast, Gulf Coast markets in the U.S.

• Cheaper: Less or no diluent is required when transporting bitumen in rail tank cars, representing a significant cost savings in diluent costs.

• Scalability – Easy to adjust volumes (increase/decrease number of cars on the train)

• Relatively low capital requirement

• Product integrity – Crude oil not mixed with other products Railway Transport Railway Network and Facts Pipelines

Advantages Disadvantages Efficient High fixed cost Low pollution* Highly regulated Low variable cost Low flexibility Large capacity Potential environmental hazard Crude Oil Transportation Regulation and Legislation - OPEC

Canada is not a member of OPEC

What is OPEC? • Organization of the Petroleum Exporting Countries • Has 13 member states • 40% of global oil production and 73% of world’s proven oil reserves • MAJOR influence on global oil prices OPEC Member Countries Regulation and Legislation

• Canada: National Energy Board (NEB) • USA: Federal Energy Regulatory Commission (FERC) • Pipeline and Hazardous Materials Safety Administration (PHMSA) Regulation

• Canadian Energy Pipeline Association (CEPA) • Canadian Association of Petroleum Producers (CAPP) • Association of Oil Pipe Lines (AOPL) Canadian Energy Pipeline Association (CEPA)

• Non-profit Organization • Represents Canada’s pipeline companies operating more than 130,000 km of pipeline in Canada and the United States. • 1.2 billion barrels and 5.1 trillion cubic feet of natural gas each year • Transport 97 % of Canada’s daily oil and gas

MISSION Current Affairs – Kinder Morgan

• Trans Mountain pipeline from Alberta to Burnaby provides most of the oil we use in BC • in 2005, Kinder Morgan bought the pipeline with the goal of transforming the surrounding waters of the Burrard Inlet and Salish Sea into a major tar sands shipping port. • In 2007, the pipeline accidentally ruptured. Massive oil spill! • TMX-1 project- Increased pipeline capacity to increase exports • One or two tankers passed through the Burrard Inlet daily without knowledge (600,000 barrels)

• Plans to increase capacity to 890,000 barrels a day

• When all that tar sands oil is burned, it will release more than 100 million tonnes of climate-changing greenhouse gases into our atmosphere every year Proposed Route Current Affairs – Kinder Morgan

Kinder Morgan’s pipeline and tanker plans are opposed by many First Nations whose traditional territories are crossed by the proposed route, including Coast Salish First Nations and Tribes from both sides of the Canada-U.S. border who have come together to “Protect the Sacredness of the Salish Sea.” Burnaby Mountain Protest Energy East and Keystone XL Energy East

• Proposed oil pipeline in Canada by TransCanada • Transport oil from Western Canada to Eastern Canada (Alberta and Saskatchewan to New Brunswick and Quebec) • Announced on August 1st 2013 • 4600 km long • 70% using existing pipeline 3000 km that would be converted from Natural Gas • 1.1 million barrels of crude oil daily Controversy

• Crossing the territory of 180 indigenous groups • Opposed on scientific grounds: carbon emission • Project impact on beluga whales’ habitat Controversy

• In order for the project to be accepted, it must pass a provincial environmental impact assessment • But, TransCanada believed that issues surrounding the province’s review of the cross-Canada oil pipeline had long been resolved and it is a matter of federal jurisdiction, not provincial • Quebec Environment Minister – David Heurtel – sent letters to TransCanada to submit the environmental assessment but there was no response • Quebec government asked for an injunction to TransCanada to follow the rules Industry Overview

• According to the NEB's, additional capacity is soon needed to accommodate growing supply and provide greater market flexibility. • Proposed pipelines and expansion are increasing • Development of new pipelines is critical to open new markets for Canadian oil and gas • New energy supply needs to be connected to existing pipeline system • The industry must continue to make huge investment in pipelines to provide cost competitive infrastructure Industry Overview

• For the Canadian pipeline industry to continue to strive, it needs access to new and existing markets • Canada is the number one supplier of oil and natural gas to the U.S. and must remain so • Canada is the ideal energy partner for the U.S: • business friendly, politically stable and has abundant source of energy • strong, transparent regulation • CEPA members safety track records is second to none • Access to Asian pacific market is a key strategic outlet Historical Oil Price Analysis (1946-2006) Historical Oil Price Analysis (1946-2016) Historical Oil Price Analysis (1946-2016)

• Highest ever oil price: July 2008 - $145. Mostly due to speculation in oil futures markets

• By February 2009, went below $40 a barrel

• January 2011 – Rose above $100 on concerns about the political unrest in Egypt

• Mid 2014, prices went down due to significant production in the U.S. and declining demand in other countries

• Oil glut – Spurred a downward spiral.

• As of Feb 2016, price was below $30. Supply exceeded demand by far. Also attributed to China’s lowest growth rate in a generation Business Risks

• Competitive Environment • Alternative energy sources (Renewable) • Global competition • Regulator/Contractual • Jurisdiction • Allowed ROE and capital structure defined by regulatory bodies • Long-term contracts • Flexibility of regulatory framework • Social Responsibilities • Environment • Politics • Others (Exchange Rate, Warfare etc.) Business Risks

• Supply/Demand • Strongly depends on the lease's technology and remaining supply • Seasonality • Counterparty risk • Capital Intensity • Cost overruns and weak financial metric during growth stage • Large multi-year growth project vs. smaller shorter construction periods • Huge Investment

Company Snapshot Stock Performance – 1 Month Stock Performance – 1 year Stock Performance – 5 Year Stock Performance – 10 Year Stock Performance – Max Comparison with S&P/TSX Composite – 1 Month Comparison with S&P/TSX Composite – 1 Year Comparison with S&P/TSX Composite – 5 Year Comparison with S&P/TSX Composite – 10 Year Comparison with S&P/TSX Composite – Max Outstanding Shares Financial Reporting Transition Financial Highlights Strong Track Record of Dividend Growth Relative Performance Relative Performance Total Shareholder Return Outlook

Company Profile

• Energy delivery company based in Calgary, Canada. • 65 year history of being the leader in energy delivery in North America. • Focuses on transportation, distribution, and generation of energy. • Longest crude oil transportation system in the world. • Largest transporter of crude oil in Canada. • Operates the largest natural gas distribution network in Canada. • Over 11,000 employees in Canada and USA Company History

• April 30, 1949 – Incorporated by Imperial Oil as Interprovincial Pipe Line Ltd. • 1960s – Rapid expansion in Detroit, Buffalo, and Chigago; became the largest crude oil carrier in NA. • 1970s – Completed Line 9 pipeline (Sarnia to Montreal) • 1980s – Built Normal Wells pipeline; acquired Toronto-based Home oil; changed its name to Interhome Energy Inc. Company History (Cont.)

• 1990s – Acquired control of several gas, oil, and utility companies including Consumers’ Gas (now Enbridge Gas Distribution Inc.); built Athabasca pipeline; changed its name to IPL Energy Inc. in 1994 and finally Enbridge Inc. in 1998 • 2000s – Expanded international interests in Spain and Colombia; listed on NYSE on 2001; began investment in renewable energy; acquired Houston-based Midcoast Energy Resources and Shell Gas Transmission. Approach to the Business Shareholder Value Proposition Corporate Structure and Ownership What Enbridge Does

• Transport energy – Operates the world’s largest and most sophisticated transportation network for crude oil and liquids. • Distribute energy – Operates Canada’s largest natural gas distribution company. • Generate energy – Expands investment on renewable energy sources.

Current Operations and Assets Locations

Breakdown of Business Operations Geographic Information Geographic Information

Revenue Stream - Geographical Property, Plant, and Equipment Canada US Canada US

33% 48% 52% 67% Segmented Information 1. Liquids Pipelines Liquids Pipelines – Earnings Recent Completed Projects

• Western US Gulf Coast Access • Alberta Clipper, Flanagan South, Seaway Twin • Eastern Access • Line 9 Reversal, Line 6B Replacement, Line 5 Expansion • Light Oil Marker Access • Line 9 Expansion, Line 62 Twin Western US Gulf Coast Access Eastern Access Light Oil Market Access Current Projects

• Line 3 Replacement • Norlite Diluent Pipeline Project • Woof Buffalo Extension • Athabasca Pipeline Twin • Sandpiper • Southern Access Line 3 Replacement Regional Oil Sand Bakken Regional Mainline Other Project – North Gateway Pipeline

• Current status is undetermined due to many uncertainties. • Approved by the federal government in June 2014. • In 2015, Trudeau government imposed a ban on oil tanker traffic on the North Coast of BC. Liquids Business: Market Reach & Competitiveness 2. Gas Distribution Gas Distribution – Earnings GTA Project 3. Gas Pipelines, Processing, and Energy Services Gas Pipelines, Processing, and Energy Services – Earnings Alliance Pipeline Aux Sable Fractionation Facility Vector Pipeline US Gathering & Processing Facilities Offshore Pacific Pipeline (Colombia) Renewable Energy Sources 4. Sponsored Investments Sponsored Investments – Earnings 5. Corporate – Earnings

Current Strategic Priorities

1. Focus on Safety and Operational Reliability • Industry leadership in safety and environmental protection. 2. Execute Growth Capital Program • Focus on commercially secured energy infrastructure projects. 3. Secure the Longer-Term Future • Develop new platforms for growth and diversification. 1. Focus on Safety and Operational Reliability Investment in Technologies

• Investing in Energy Innovation. • Investing in Pipeline Integrity and Leak Detection.

2. Execute Growth Capital Program • Managing Environment • Securing regulatory approval • Cost and schedule risk • Project Management Expertise • Disciplined processes • Capacity, skills, resources • Engaging Communities • Environmental protection • Build coalitions of support Disciplined Investment Processes Five-Year Capital Growth Program (2015-2019) Five-Year Capital Growth Program (2015-2019) Five-Year Capital Growth Program (2015-2019) Funding Requirement of Five-Year Growth Program 3. Secure the Longer-Term Future • Embedded growth • Tilted return investments • New growth opportunities • Liquid pipelines • Gas distribution • Gas pipeline & processing • Renewable energy • Capital redeployment • Surplus free cash flow • Sponsored vehicle strategy New Growth Opportunities Gas Storage Opportunities Core Customer Growth Future Growth Energy Services – Business Strategy Investments on Renewable Energy Sources Current Positioning Growth Opportunities Capital Redeployment Opportunities

• Organic Investments • Bolt-on asset acquisitions • Expand strategic footprint Expected Growth of ACFFO/Share from each segment Sponsored Vehicle Strategy

• Diversified sources of funding • Optimize overall cost of capital • Release capital to extend and diversify growth Five Year Growth Outlook

Reliable Business Model Comprehensive Risk Management Strong Counterparty Credit Profile Strong Credit Profile Interest and FX Risk Management Diversification of Funding Sources Maintaining Ample Liquidity

Al Monaco, President & CEO

Date of Appointment: October 1, 2012

Experience: • Joined Enbridge Inc. in 1995 • Member of Enbridge Inc. Board of Directors • President, Gas Pipelines, Green Energy & International. • Over 30 years experience in the energy business including the upstream oil and gas exploration, development, and pipeline businesses. • Held positions including Executive Vice President, Major Projects & Green Energy, and as President, Enbridge Gas Distribution; Senior Vice President, Corporate Planning and Development; Vice President, Financial Services and Treasurer for Enbridge’s US-based master limited partnership.

Qualifications: • Master of Business Administration in Finance from University of Calgary’s Haskayne School of Business. • Certified Management Accountant Glen Beaumont, President, Enbridge Gas Distribution

Date of Appointment: October 1, 2013

Experience: • Responsible for overall leadership and operations of Enbridge Gas Distribution and Enbridge Gas New Brunswick. • More than 25 years of experience working in a number of operating roles within Enbridge, most recently as Senior Vice President, Operations within Gas Distribution. • Other roles included Vice-President of Planning and Opportunity Development. • Active in the Mackenzie health Foundation Community group.

Qualifications: • A registered professional engineer in Ontario. • Graduated from Queen’s Univerisity in Kingston, Ontario with a degree in chemical engineering. • Master of Business Administration degree from University of Toronto. C. Gregory Harper, President, Gas Pipelines & Processing Date of Appointment: January 30, 2014

Experience: • Joined Enbridge Inc. in 2014 From South Energy, where he served as Senior Vice President, Midstream. • Senior leadership position with CenterPoint Energy, Spectra Energy, and Duke Energy. • Chairman of the Board of the Interstate natural gas Association of America (INGAA) • Dean’s Advisory Board at the University of Houston’s Bauer School of Business • Chairman of the board of directors of Theatre Under the Stars.

Qualifications: • Bachelor of Science degree in mechanical engineering from the University of Kentucky. • Master of Business Administration from the University of Houston. Guy Jarvis, President, Liquid Pipelines Date of Appointment: March 1, 2014

Experience: • Joined Enbridge Inc. in 2000 • Previous Chief Commercial Officer for Liquids Pipelines • President, Gas Distribution, providing overall leadership to Enbridge Gas Distribution. • 28 years dedication in energy marketing and business development activities. • Senior Vice President, Investor Relations & Enterprise Risk; Senior Vice President, Business Development; Vice President, Upstream Development for Enbridge Pipelines Inc.; Vice President, Gas Services for Enbridge Inc.

Qualifications: • Bachelor of Commerce degree from the University of British Columbia. Byron Neiles, Senior VP, Major Projects Enterprise Safety & Operational Reliability Date of Appointment: January 1, 2015

Experience: • Joined Enbridge Inc. in 1994 • Responsible for ensuring that the team delivers Enbridge’s capital program for all business units safely, on time, and on budget. • Accountable for strategic of safety, operational reliability, and environment protection policies and practices. • Previously held role of Vice President of Customer, Regulatory, and Public Affairs, as well as Legal Affairs with Enbridge Gas Distribution in Toronto.

Qualifications: • Bachelor of Arts Degree in political science from University of Regina. • Master of Business Administration from University of Calgary’s Haskayne School of Business. Karen Radford, Vice President, People, Planet & Partners Date of Appointment: November 10, 2015

Experience: • Joined Enbridge Inc. in 2011 • Previously served as President of Partner Solutions at TELUS. • Past positions include Vice President, Customer Care; Vice President, national Service Fulfillment, Vice President, National Service Assurance. • Serves on the boards of Alberta Children’s Hospital Foundation, Western Financial Group, and TELUS Calgary Community Board. • President and Co-Founder of Women’s Leadership Foundation. • “Canada’s Top 40 Under 40” and “Woman of the Year” by Canadian Women in Communications organization in 2007.

Qualifications: • Bachelor of Science from Mount Allison University • Master of Business Administration from Dalhousie University David T. Robottom, Q.C., Executive VP & Chief Legal officer Date of Appointment: October 2010

Experience: • Joined Enbridge Inc. in 2006 • Responsible for legal and information technology functions. • Over 30 years of legal experience in capital markets and M&A. • Previously a CEO of Fraser Milner Casgrain LLP. • Member of Board of Trustees of Enbridge Commercial Trust.

Qualifications: • Bachelor of Law from the University of Alberta • Bachelor of Laws, Bachelor of Commerce, Master of Business Administration, and advanced management program from Harvard Business School. John L. Whelen, Vice President & CFO

Date of Appointment: October 15, 2014

Experience: • Joined Enbridge Inc. in 1992 as Manager of Treasury. • Previously held position as Enbridge’s Senior Vice President and Controller. • Led the business through period of significant growth when he served as the CFO and then President of Enbridge Income Fund.

Qualifications: • Bachelor of Science degree in economics from the University of Victoria. • Master of Business Administration in Finance from McMaster University. Vern Yu, VP, Corporate Planning & Chief Development Officer Date of Appointment: January 1, 2015

Experience: • Joined Enbridge Inc. in 1993 • Responsible for executive leadership of Enbridge’s corporate planning and development function, including strategic planning and investment review. • Oversees Enbridge’s new growth platforms, including renewable energy, international, and energy services. • Previously a Senior Vice President of Business and Market Development for Liquid Pipelines division.

Qualifications: • Bachelor of Science degree in applied science from Queens University. • Master of Business Administration in Finance from University of Toronto. Leon Zupan, Chief Operating Officer, Liquid Pipelines Date of Appointment: May 1, 2013

Experience: • Joined Enbridge in 1987 as part of the Engineering Group. • Senior management positions in Sarnia and Edmonton in Operations, Shipper Services, and IT. • Senior Vice President, Development and Services, based in Calgary. • President Gas Pipelines located in Houston, Texas with responsibilities for Gas Gathering and Processing, as well as on-shore and off-shore gas pipelines. • 2008 Campaign Chair for the United Way Alberta Capital Region and Vice Chair of its Board of Directors. • President of the Board of the Alberta Chamber of Resources and sits on the Board of the Canadian Energy Pipeline Association.

Qualifications: • Bachelor of Science in Physics from University of Alberta.

Balance Sheet as at Dec 31, 2015 Balance Sheet as at Dec 31, 2015 Statement of Earnings for the year ended Dec 31, 2015 Statement of Earnings for the year ended Dec 31, 2015 Statement of Comprehensive Income for the year ended 31 Dec, 2015 Statement of Cash Flows for the year ended Dec, 31 2015 Statement of Cash Flows for the year ended Dec, 31 2015 Recommendation

Company Snapshot Stock Performance – 5 days Stock Performance – 1 month Stock Performance – 1 Year Stock Performance – 5 Years Stock Performance – 10 Years Comparison with S&P/TSX Composite – 1 Month Comparison with S&P/TSX Composite – 1 Year Comparison with S&P/TSX Composite – 5 Year Dividend Growth Dividend Growth Outlook Financial Highlights Financial Performance Investment Highlights

• Track recording of delivering shareholder value • 13% average annual return since 2000 • Attractive dividend yield (4.6%) • Expect 8 to 10% annual dividend growth through 2020 • Visible growth from $13B of near-term growth projects • Advancing $45B in commercially secured longer-term projects • Strong financial position • Capacity to fund growth projects and increase dividends • ‘A’ grade credit rating Company Overview

• One of the major energy midstream companies with one of the largest pipeline networks in North America • Founded in 1951 (65 years-old) • Headquarter in Calgary, Alberta • It serves Canada, U.S., and Mexico • Three core business segments: • Natural gas pipelines • Liquids (oil) pipelines • Energy (power generation) Strengths and Opportunities

Strengths Opportunities • Extensive pipeline network system • Well-positioned capital investments (competitive advantage) and growth projects • Largest private sector power • Exploration and development generator in Canada potential in Canada and U.S. • Low-risk business model • Positive outlook for electricity sector • Good leadership team in Canada (increasing demand) • Strong financial position Company Assets

• Total assets: $64 billion

• Pipeline: • Natural gas: 67,300 km – 20% of the continent’s daily demand • Liquids: 4,250 km – 20% of Western Canadian oil exports • Gas storage: • 368 billion cubic feet of capacity • Power generation: • 20 power plants with 13,100 megawatts of capacity - enough to power more than 13 million homes Asset Map Asset Distribution Revenues Stream Earnings Stream Capital Spending and Capital Structure Share Information Progress Since 2010 • $20B of assets placed into service • $50B of new commercially secured projects • $10B of financing completed, net of maturities • $6 billion of dividends paid • Common shares outstanding largely unchanged • ‘A’ grade credit rating maintained Assets Placed In-Service since 2010

*Billion CAD $13B of Near-Term Growth Projects

*Billion CAD Funding for Near-Term Projects $45B of Medium and Long-Term Projects EBITDA Outlook EBITDA Outlook (CONT’) Natural Gas Pipelines Strategy Key Natural Gas Pipelines – NGTL System

• Primary transporter of WCSB supply with NIT hub providing optionality & liquidity • Averaged ~11 Bcf/d in 2015; peak intra-basin • demand of 6.5 Bcf/d • Significant new firm contracts • Key connections to Alberta and export markets • Recently reached 2016/17 Revenue Requirement Agreement with customers • ROE of 10.1% on 40% deemed common equity NGTL Growth Key Natural Gas Pipelines – Canadian Mainline Mainline Growth

• $0.7B of new facility expansion projects required as part of LDC Settlement • Provides increased access to growing supply of U.S. shale gas • Expected in-service dates range from 2016 to 2017, subject to regulatory approvals

• $2B Eastern Mainline Project (EMP) ensures existing and new firm transportation commitments are met • Reached agreement with LDCs that resolves their issues with Energy East and the EMP • Target in-service in 2019, subject to regulatory approvals U.S. Natural Gas Pipelines

• Majority of portfolio highly contracted over the long-term • Positioned in key geographic areas with access to multiple supply basins and large market centres • Strong results in 2015, a 13% increase in EBITDA year-over-year • In January 2016, filed a rate case requesting an increase to ANR’s maximum transportation rates Natural Gas Pipelines Growth in Mexico Key Natural Gas Pipelines Projects

• Two significant projects underpinned by long- term contracts • $5B Prince Rupert Gas Transmission (PRGT) • $4.8B Coastal GasLink project • Positive final investment decision on PRGT • Final investment decision on Coastal GasLink expected in late 2016 • No development cost risk and minimal capital cost risk Liquids Pipelines Strategy Key Liquids Pipelines – Keystone

• Critical crude oil system that transports around 20% of Western Canadian exports to key U.S. refinery markets • 545,000 bbl/d of long-haul, take or pay contracts • 15-year average remaining contract length • Predictably generates around US$1B of EBITDA annually Expansion of Keystone Key Liquids Projects – Keystone XL

• $8B investment • A proposed 1,897-km, 36-inch-diameter oil pipeline connecting Hardisty, Alberta. to Steele City, Neb. • After 7-year review, the project was ultimately denied by President Obama in November, 2015 • Recorded $2.9B after tax write-down in 2015 • TransCanada announced legal action in January 2016 and is seeking $15B in damages • TransCanada remains interested in the project Key Liquids Projects – Energy East

• $15.7B investment • 4,600-km pipelines with 1.1M bbl/d of capacity from Alberta and Saskatchewan to refineries in Eastern Canada • Three major components: • Pipeline conversion • Construction of new pipeline • Construction of new pipeline facilities • Targeted in-service in late 2020 but subject to regulatory approvals Energy Strategy Key Energy Business – Bruce Power

• TransCanada owns 48.5% interest in Bruce Power • World’s largest operating nuclear facility • 6,300 Mw facility capable of generating ~30% of Ontario’s power needs • Bruce A Units 1 – 4 (3,000 MW) • Bruce B Units 5 – 8 (3,300 MW) • Power sold under long term contract with the Ontario Independent Electricity System Operator Key Energy Projects – Napanee Generating Station Key Energy Projects – Ironwood Acquisition

• Completed the acquisition of Ironwood on Feb 1, 2016, a 778 MW natural gas-fired power generation facility • PJM is the largest and most liquid energy market in North America • Access to competitively priced natural gas from Marcellus Shale gas play • Replace coal facilities with more energy-efficient plants • Complementary to U.S. northeast wholesale marketing business • US$90-$110M of EBITDA annually Main Challenges

• Regulatory risks for growth projects • Projects subject to regulatory approvals • Policy changes in Alberta • e.g. policy shift to reduce greenhouse gas emissions will impact the electricity sector Most Recent News

Leadership Team Russell K. Girling President and Chief Executive Officer (since 2010), and Director

• Prior to joining TransCanada, he worked at Suncor Inc., Northridge Petroleum and Dome Petroleum • Joined TransCanada in 1994 as Executive VP (Power) • Served as COO and President (Pipelines) prior to his current appointment • Also served as CFO, Executive VP (Corporate Development), and President (Gas Services) previously • Former Chairman of the Interstate Natural Gas Association of America and the Natural Gas Council • Former Director of the Canada Energy Pipeline Association • Holds Bachelor of Commerce degree and a Master of Business Administration in Finance from the University of Calgary Alexander J. Pourbaix Chief Operating Officer

• Responsible for profitability and growth of all of TransCanada’s business units as well as the Operations and Projects Centre of Excellence. • Served as Executive VP and President (Development) prior to his current appointment • Director and past Chairman of the Board of Directors for the Canadian Energy Pipeline Association • Holds a Bachelor of Arts Degree, with distinction, and a Bachelor of Law Degree from the University of Albert Donald R. Marchand Executive Vice-President (Corporate Development) and Chief Financial Officer (since 2010)

• Responsible for financial reporting, taxation, finance, treasury, risk management, investor relations, strategy and corporate development for TransCanada Corporation • Joined TransCanada in 1994 and has held a variety of progressively more senior roles with the organization • Served as VP (Finance and Treasure) prior to his current appointment • Member of the Calgary Society of Financial Analysts and the Institute of Chartered Accountants of Alberta Karl Johannson Executive Vice-President and President (Natural Gas Pipelines)

• Responsible for TransCanada Corporation’s natural gas pipelines and regulated natural gas storage business in Canada, the U.S. and Mexico • Joined TransCanada in 1990 and has over 25 years of experience in marketing and trading energy products in Canada and the U.S. • Served as Senior VP (Canadian and Eastern U.S. Pipeline, and Canadian Power) prior to his current appointment • Holds a Master of Business Administration from the Haskayne School of Business, an Arts Degree from the University of Calgary, and is a graduate of Harvard Business School’s General Management program Wendy Hanrahan Executive Vice-President (Corporate Services)

• Responsible for providing strategic and functional leadership for human resources, business process integration, information systems, supply chain management, aviation, and facilities services • Joined TransCanada in 1995 and has held a variety of key leadership roles in finance and accounting, corporate strategy, and in the gas transmission business • Served as VP (Human Resources) and VP (TC PipeLines, LP) prior to her current appointment • Holds a Bachelor of Science in Business Administration from the University of South Carolina • Member of the Institute of Chartered Accountants of Alberta. William C. Taylor Executive Vice-President and President (Energy)

• Responsible for TransCanada Corporation’s non-regulated businesses, including power and non-regulated gas storage, and partially owned non-regulated businesses, including Bruce Power. • Managed the eastern region of TransCanada’s power business, and played a major role in the growth and building of that business over a number of years • Currently sits on the Board of the Canadian Electricity Association and the Independent Power Producers of New York • Holds an Honours degree in Applied Science – Civil Engineering from the University of Waterloo and has attended Harvard Business School for Advanced Management training Kristine L. Delkus Executive Vice-President (Stakeholder Relations), General Counsel and Chief Compliance Officer

• Responsible for the management of TransCanada’s Legal, Internal Audit, Aboriginal Relations, Government Relations, Communications, and Community Engagement functions • Joined TransCanada in 1995 and has held a variety of progressively senior roles with the organization • Holds a Bachelor of Arts degree (with Honours) in Public Administration from Carleton University and a Bachelor of Laws degree from the University of Windsor • Holds bar memberships in New York, Ontario and Alberta Paul Miller Executive Vice-President and President (Liquids Pipelines)

• Responsible for TransCanada Corporation’s Liquids transportation business • Senior VP (Oil Pipelines) accountable for the profitability and commercial management of TransCanada’s oil pipelines prior to his current appointment • Joined TransCanada in 1990 and as held a variety of progressively senior roles in treasury, finance, corporate development and business development • Holds a Bachelor of Business Administration from the University of Regina and a Master of Business Administration from the University of Calgary • A Certified Management Accountant Financial Statements (Page 1) (Page 2)

(Page 1) (Page 2) Recommendation

Strong Sell Sell Hold Buy Strong Buy

Company Snapshot Company Snapshot STOCK PERFORMANCE 5 Day Stock Performance 1 Year Stock Performance 10 Day and 100 Day Moving Average 5 Year Stock Performance 10 Day and 100 Day Moving Average Max Stock Performance 20 Day and 200 Day Moving Average Investment Highlights

• BBB credit rating from S&P and DBRS. • Pembina has paid approximately $4.1 billion in dividends since inception (To January 2016. Pembina began paying dividends in 1997) COMPANY OVERVIEW Company History

• 1954 – company was founded

• 1997 – became a publically traded company

• 2010 – converted from an income trust to a corporation

• 2012 – acquired Provident Energy and became listed on the NYSE under PBA

• Head office in Calgary, Alberta, Canada Company Profile

• Pembina is a leading pipeline transportation and midstream service provider, serving North America for more than 60 years. • Long-range vision and goal – “is to be the operator, employer, partner, neighbor and investment of choice in North America's energy infrastructure sector – creating long-term, sustainable value for those who've come to expect it”. • Has more than 1250 employees • Involved in four energy infrastructure businesses: Conventional pipelines, Gas services, Oil sands & Heavy Oil, and Midstream products and services. Conventional Pipelines • 9,100 km pipeline network that extends across much of Alberta and parts of British Columbia, Saskatchewan and North Dakota Gas Services • growing natural gas gathering and processing business, which is strategically positioned in active and emerging NGL-rich plays in the Western Canadian Sedimentary Basin Provident Energy Ltd. Acquisition

• On April 2, 2012, Pembina Pipeline Corporation acquired Provident Energy Ltd. to create a leading player in the North American energy infrastructure sector. • A larger entity capable of pursuing more complex growth projects at an accelerated pace including an aggregate capital program of approximately $700 million of announced spending in 2012 (Pembina: $550 million, Provident: $150 million). Trend since Provident acquisition Oil Sands & Heavy Oil The Oil Sands & Heavy Oil business operates approximately 1,650 km of pipeline and has approximately 880,000 bpd of capacity under long-term, extendible contracts Midstream

Crude oil midstream targets oil- and diluent- related development opportunities at key sites across Pembina's network and comprises 17 truck terminals (including three capable of emulsion treatment and water disposal), and terminalling at downstream hub locations at Pembina's Nexus Terminal ("PNT") Total Revenue Revenue per sector

Conventional Pipelines Oil Sands & Heavy Oil Gas Services Midstream

Operating Margin

Conventional Pipelines Oil Sands & Heavy Oil Gas Services Midstream Segment Information Segment Information contd. Strategy

Pembina's business strategy is intended to provide highly competitive and reliable returns to investors through monthly dividends on our common shares while also enhancing the long-term value of our securities. This will be done by: • Preserve value by providing safe, responsible, cost-effective and reliable services. • Diversify Pembina's asset base along the hydrocarbon value chain by providing integrated service offerings which enhance profitability. • Pursue projects or assets that are expected to generate increased cash flow per share and capture long-life, economic hydrocarbon reserves. • Maintain a strong balance sheet through the application of prudent financial management to all business decisions. Strategy

• On September 2, 2014, Pembina announced that it had entered into an agreement (the "Terminal Agreement") with the Port of Portland, Oregon to enable the development of Pembina's planned West Coast propane export terminal project (the "West Coast Terminal"). • “Market demand for propane from around the world, especially the Asia-Pacific region, presents one of the closest and most attractive long-term markets available for excess propane from Canada’s WCSB while at the same time addressing environmental sustainability questions for that region” Strategy

On February 25, 2016, Pembina announced that while it remains committed to providing market access solutions for its customers by developing a North American West Coast Terminal, it has decided that it will not be proceeding with the previously announced location in Portland, Oregon and is instead evaluating multiple other west coast sites. Projects – Conventional Pipelines • Reported 33% Annual increase in Operating Margin • 2015 average revenue volumes were 614 mbpd, up 7 percent compared to 575 mbpd for 2014. This increase was largely due to the completion of our Phase II Expansion • continuing to progress our Phase III Expansion with estimated capital cost of $2.4 Billion • The Phase III Expansion also includes two pipelines between Fox Creek and Namao, Alberta (one 16-inch diameter and one 24-inch diameter) which would provide an initial combined capacity of 420 mbpd Projects – Oil Sands & Heavy Oil Pembina saw a steady performance in the Oil Sands & Heavy Oil business, with operating margin coming in slightly higher on an annual basis at $139 million. Pembina announced that they will expand their existing Horizon Pipeline System, underpinned by a fixed return, long-term agreement, for an estimated capital cost of $125 million. The Horizon Expansion will increase the pipeline's capacity up to 250 mbpd Projects – Gas Services

• 35% of operating margin from $107 million in 2014 to $144 million in 2015 • Gas Services realized higher throughput, with average revenue volumes increasing by over 27 percent for 2015 compared to last year • When the projects we are now working on are completed, we expect Gas Services' processing capacity to reach 1.6 bcf/d, including deep cut extraction capacity of 900 MMcf/d. Projects - Mainstream • Full-year operating margin was $427 million compared to $528 million during 2014. The 19 percent decrease was primarily due to lower commodity prices • Financial performance of our Midstream business can be affected by seasonal demands for products and other market factors. • With the addition of RFS III, Pembina's third fractionator at our Redwater site with propane-plus capacity of 55 mbpd, fractionation capacity will total 210 mbpd, making our Redwater complex the largest fractionation facility in Canada. MANAGEMENT TEAM Randall J. Findlay - Chairman of the Board

• became Chairman of Pembina's Board effective April 1, 2014, is a corporate director. • was the President of Provident Energy Trust from 2001 until his retirement in 2006. He was a Director of Provident from 2001 to 2012 • Mr. Findlay is a Professional Engineer and has a Bachelor of Applied Science in Chemical Engineering from the University of British Columbia • graduate of the Institute of Corporate Directors Education Program and holds the designation ICD.D. Michael H. Dilger • Mick is integral for ensuring the overall long term success of Pembina. • Appointed Pembina’s President and Chief Executive Officer in January 2014. • Pembina's COO since November 2008 and as the Company's President & COO since February 2012. • Pembina's Vice President, Business Development 2005 - 2008 • Before Mick was at Pembina, he founded VISTA Midstream Solutions in 2000, a highly successful private Canadian midstream company. Prior thereto he worked in various executive finance and business development roles at Nova Corporation and later TransCanada Pipelines between 1994 and 1999. • Mick holds a Bachelor of Commerce Degree from the University of Calgary. • Obtained CA designation around 1987 Scott Burrows, VP - Finance & Chief Financial Officer

• Oversees the Company's financial operations, investor relations, treasury, tax, corporate planning, corporate development and capital market financing. Appointed Vice President, Finance & Chief Financial Officer on January 1, 2015 • Before joining Pembina in November 2010, Scott spent seven years in energy-focused investment banking • Scott served as Pembina's Vice President, Capital Markets from October 2013 to the end of December 2014 and as Vice President, Corporate Development & Investor Relations from March 2013 to October 2013. • Scott has a Bachelor of Commerce from the University of British Columbia and is also a CFA® Charterholder. Paul Murphy Senior VP - Pipeline & Crude Oil Facilities • Oversees the safe, reliable and responsible operation of Pembina’s business units and the Company’s Major Projects and Operating Services departments • Named Senior Vice President, Pipeline & Crude Oil Facilities, for Pembina in September, 2013 • Paul joined Pembina in February 2011 as Vice President, Conventional Pipelines • Paul has nearly 30 years of related experience in hydrocarbon exploration, processing, NGL extraction and transportation • Prior to joining Pembina, he was a business unit Vice President with Inter Pipeline Fund, prior to which he was the Executive Director of the NGL extraction business unit for Williams Energy (Canada) Inc. • Bachelor of Science in Geology from the University of Calgary Stuart (Stu) Taylor: Senior VP - NGL & Natural Gas Facilities • Previously held the role of Vice President, Gas Services, a position he held since joining Pembina in 2009 • Stu is a professional geologist with more than 25 years of experience in the oil and gas industry • Graduated from the University of Calgary in 1984 with a Bachelor of Science Degree in Geology and a minor in Geophysics. • Stu developed his geologic, strategic planning and business development skills in various capacities while at Westcoast Energy Inc., NOVA Corporation, TransCanada PipeLines Ltd., VISTA Midstream Solutions and Talisman Energy. Andrew G. Gruszecki VP - Oil Sands & Heavy Oil

• 2012 to October 2014, Andy was Vice President, Business Development at Pembina • Andy received his Honours Bachelor of Science in Science from the University of Western Ontario • Andy brings over 30 years of experience and expertise in oil and NGL marketing, business development, and planning. Robert M. Jones VP, Midstream - Crude Oil & Condensate • Appointed VP, Midstream - Crude Oil & Condensate in November 2008 after working with the company for four years as an executive consultant. • Prior to Pembina, he worked with Canterra Energy, Husky Oil Operations, Amerada Hess Canada, Gulf Canada and Tidal Energy Marketing • Obtained his Bachelor of Science in Engineering from the University of Alberta in 1982 and his Masters of Business Administration from University of Calgary in 1991 Robert (Bob) Lock VP, Midstream - NGL • Previously, Bob served as VP, NGL Supply & Extraction for Provident, a position he held from 2006 until the company’s acquisition by Pembina in 2012. • Earlier, Bob was Director of Commercial Operations for EnCana’s natural gas liquids business and was responsible for their operated and non-operated NGL assets • Received his Bachelor of Science in Engineering from the University of Alberta and his Master’s of Business Administration from the University of Calgary. Brad Smith VP - Operating Services • Responsible for stewarding the planning related to Pembina’s major pipeline systems and leading the company’s Sherwood Park Control Centre, SCADA operations and Field Communications • Brad joined Pembina in 2004 and has more than 25 years of progressive experience in the North American oil and gas industry • Prior to his current appointment, Brad served as Senior Manager of Systems Planning with Pembina’s Conventional Pipelines business unit • Holds an MBA from Queen’s University, completed his BSc in Geological Engineering from the University of Manitoba, and is a registered Professional Engineer in Alberta Jaret Sprott: VP - Gas Services • Is accountable for the safe, reliable and responsible management of Gas Services’ existing operations and infrastructure. • Joined Pembina as Vice President of its Gas Services business unit in January 2015. • Extensive upstream and gas services experience, having most recently worked at Encana Corporation in a senior management position. • Graduated with a Bachelor of Applied Science in Petroleum Systems Engineering from the University of Regina in 2002 Jason Wiun VP - Conventional Pipelines

• is responsible for Conventional Pipelines and has accountability for the Company's NGL, crude & condensate transportation. • started his career with Pembina in 1997, in the Company’s Joint Interest group before transitioning into Accounting. • 2008-2011 Jason was the controller for Conventional Pipelines • Jason attended the University of Calgary where he graduated with his Bachelor of Commerce with an Accounting major in 1997 FINANCIAL PERFORMANCE Financial Highlights PPE Balance Sheet (Assets) Balance Sheet (Liabilities and equity) Leverage: Total Debt/Total Equity: 3338/7,424 ~ 0.4496 Income Statement Statement of Comprehensive Income Statement of Cash Flows Statement of Cash Flows contd. Strong Sell Sell Hold Buy Strong Buy