Enbridge Inc.
Company Summary
Description
Over the past 65 years, Enbridge has become a leader in the safe and reliable delivery of energy in North America and is proud to be recognized as one of the Global 100 Most Sustainable Corporations in the World.Website
http://www.enbridge.com/Financial Data:
NYSE:ENB from Google FinanceTickers:
-
ENB - New York Stock Exchange
-
ENB - Toronto Stock Exchange
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Recent news
- 3/5/2024 - Canada Energy Regulator... (subscriber access)
- 2/12/2024 - Enbridge Files Mainline... (subscriber access)
- 2/12/2024 - Enbridge Grew its... (subscriber access)
- 2/12/2024 - Enbridge Closes Open... (subscriber access)
- 1/30/2024 - Enbridge Cutting 650... (subscriber access)
Investor Presentations
- 2023 Investor Day
- 4Q22 Earnings Presentation (subscriber access)
- 2023 Guidance Presentation (subscriber access)
- 3Q22 Earnings Presentation (subscriber access)
- Enbridge EIC Investor Presentation May 2022 (subscriber access)
- 2021 Investor Day (subscriber access)
- Moda Midstream Acquisition (subscriber access)
- 2Q21 Earnings Presentation (subscriber access)
- 4Q20 Earnings Presentation (subscriber access)
- 3Q20 Earnings Presentation (subscriber access)
- 2Q20 Investor Presentation (subscriber access)
- 1Q20 Earnings Presentation (subscriber access)
- 2019 Annual Investor Day (subscriber access)
- 3Q19 Investor Presentation (subscriber access)
- 2Q19 Investor Presentation (subscriber access)
- 1Q19 Investor Presentation (subscriber access)
- 2018 Investor Day Presentation (subscriber access)
- 3Q18 Investor Presentation (subscriber access)
- 1Q18 Investor Presentation (subscriber access)
- Fourth Quarter 2017 Supplemental Slides (subscriber access)
- 3Q17 Financial Results & Update (subscriber access)
- 2Q17 Financial Results & Strategic Update (subscriber access)
- 1Q17 Financial Results and Strategic Update (subscriber access)
- 4Q16 Earnings Presentation (subscriber access)
- 2017 Investment Community Presentation (subscriber access)
- Investment Community Presentation (subscriber access)
- First Quarter 2016 Strategic and Financial Update (subscriber access)
- April 2016 Investment Community Presentation (subscriber access)
- 2016 TD Securities London Energy Conference (subscriber access)
Company Transactions
Date: 11/2/2022
Type: Acquisition
NOTES:
Enbridge and Plains GP Holdings have purchased Western Midstream's 15% interest in the Cactus II Pipeline for $265 million, with Enbridge acquiring 10% of the pipe and Plains acquiring 5%. After this transaction, Plains and Enbridge are the sole owners of the Cactus II pipeline with 70% and 30% respective ownership. Plains will continue to serve as the operator.
Enbridge and Plains GP Holdings have purchased Western Midstream's 15% interest in the Cactus II Pipeline for $265 million, with Enbridge acquiring 10% of the pipe and Plains acquiring 5%. After this transaction, Plains and Enbridge are the sole owners of the Cactus II pipeline with 70% and 30% respective ownership. Plains will continue to serve as the operator.
REGIONS:
Delaware Basin
Date: 9/28/2022
Type: Acquisition
NOTES:
Enbridge has signed a deal with 23 First Nation and Métis communities to sell them an 11.57% non-operating interest in seven Enbridge-operated pipelines in the Athabasca Region of Alberta for $1.12 billion. The stake will be held by Athabasca Indigenous Investments (Aii), and this deal is the "largest energy-related Indigenous economic partnership transaction in North America to date." The stake includes a position in the following assets: Athabasca, Wood Buffalo/Athabasca Twin and associated tanks; Norlite Diluent; Waupisoo; Wood Buffalo; Woodland; and the Woodland extension. The deal should close in October 2022.
Enbridge has signed a deal with 23 First Nation and Métis communities to sell them an 11.57% non-operating interest in seven Enbridge-operated pipelines in the Athabasca Region of Alberta for $1.12 billion. The stake will be held by Athabasca Indigenous Investments (Aii), and this deal is the "largest energy-related Indigenous economic partnership transaction in North America to date." The stake includes a position in the following assets: Athabasca, Wood Buffalo/Athabasca Twin and associated tanks; Norlite Diluent; Waupisoo; Wood Buffalo; Woodland; and the Woodland extension. The deal should close in October 2022.
REGIONS:
Canada
Date: 1/15/2022
Type: Acquisition
NOTES:
Enbridge has reached an agreement to sell its full 38.9% non-operating minority interest in Noverco Inc. for $1.14 billion in cash to Trencap, net of the company's non-recourse debt which will be assumed by Trencap.
Enbridge has reached an agreement to sell its full 38.9% non-operating minority interest in Noverco Inc. for $1.14 billion in cash to Trencap, net of the company's non-recourse debt which will be assumed by Trencap.
REGIONS:
Canada
Northeast
Date: 9/7/2021
Type: Acquisition
NOTES:
Enbridge Inc. has reached a deal with EnCap Flatrock Midstream to acquire Moda Midstream Operating for $3 billion in cash. The primary asset being acquired via Moda is their Ingleside Energy Center, which is North America's largest crude export terminal with 1.5 MMbbl/d in export capacity and 15.6 million barrels of storage
Enbridge Inc. has reached a deal with EnCap Flatrock Midstream to acquire Moda Midstream Operating for $3 billion in cash. The primary asset being acquired via Moda is their Ingleside Energy Center, which is North America's largest crude export terminal with 1.5 MMbbl/d in export capacity and 15.6 million barrels of storage
REGIONS:
Gulf Coast
Date: 1/31/2021
Type: Acquisition
BUYERS:
Enbridge Inc.
SELLERS:
Blueknight Energy Partners LP
ASSETS:
Blueknight Cushing Terminal
DETAILS:
COST: 132 $MM
VOLUMES: 6.5 MM Bbls
NOTES:
The crude storage business was sold to Enbridge for $132 million and included 6.6 MMbbl in storage in Cushing, Oklahoma.
The crude storage business was sold to Enbridge for $132 million and included 6.6 MMbbl in storage in Cushing, Oklahoma.
REGIONS:
Cushing Oil Terminal
Date: 3/31/2020
Type: Acquisition
NOTES:
Enbridge has reached a definite agreement with NextDecade to acquire the Rio Bravo Pipeline Company for $25 million, with $15 million of that to be paid upon FID of the Rio Grande LNG Terminal.
Enbridge has reached a definite agreement with NextDecade to acquire the Rio Bravo Pipeline Company for $25 million, with $15 million of that to be paid upon FID of the Rio Grande LNG Terminal.
REGIONS:
Port of Brownsville
Gulf Coast
Date: 10/2/2019
Type: Acquisition
BUYERS:
Algonquin Power
Liberty Utilities
SELLERS:
Enbridge Gas New Brunswick
Enbridge Inc.
DETAILS:
COST: 249.82 $MM
NOTES:
Algonquin Power & Utilities, via its subsidiary Liberty Utilities, has entered into a deal to acquire Enbridge Gas New Brunswick Limited Partnership
Algonquin Power & Utilities, via its subsidiary Liberty Utilities, has entered into a deal to acquire Enbridge Gas New Brunswick Limited Partnership
REGIONS:
Canada
Date: 9/23/2019
Type: Acquisition
NOTES:
Enbridge has acquired a 10.5% ownership stake in the proposed Annova LNG export terminal at the Port of Brownsville.
Enbridge has acquired a 10.5% ownership stake in the proposed Annova LNG export terminal at the Port of Brownsville.
REGIONS:
Gulf Coast
Date: 2/15/2019
Type: Acquisition
BUYERS:
Enbridge Inc.
SELLERS:
Generation Pipeline LLC
ASSETS:
Generation Pipeline
DETAILS:
COST: 100 $MM
VOLUMES: 355 Mmcf/d
NOTES:
Enbridge reported that they have acquired Generation Pipeline for $100 million, which includes a 355 Mmcf/d pipeline which will interconnect with Nexus.
Enbridge reported that they have acquired Generation Pipeline for $100 million, which includes a 355 Mmcf/d pipeline which will interconnect with Nexus.
REGIONS:
Northeast
Date: 1/16/2019
Type: Acquisition
NOTES:
Enbridge is acquiring existing liquids pipeline and terminal assets connected with Athabasca Oil Corporation's Leismer SAGD oil sands assets for $265 million
Enbridge is acquiring existing liquids pipeline and terminal assets connected with Athabasca Oil Corporation's Leismer SAGD oil sands assets for $265 million
REGIONS:
Western Canadian Sedimentary Basin
Date: 12/31/2018
Type: Acquisition
NOTES:
In sum, this sale includes 19 natural gas processing plants and liquids handling facilities which have a capacity of 3.3 Bcf/d and 3,550-km on natural gas gathering pipelines. The sale of provincially regulated facilities will close in 2018, while the federally regulated assets will close in mid-2019.
In sum, this sale includes 19 natural gas processing plants and liquids handling facilities which have a capacity of 3.3 Bcf/d and 3,550-km on natural gas gathering pipelines. The sale of provincially regulated facilities will close in 2018, while the federally regulated assets will close in mid-2019.
REGIONS:
Montney Formation
Peace River
Horn River
Western Canadian Sedimentary Basin
Date: 12/31/2018
Type: Merger
NOTES:
Enbridge has entered into a $4.7 billion deal to acquire all issued and outstanding public common shares of Enbridge Income Fund Holdings.
Enbridge has entered into a $4.7 billion deal to acquire all issued and outstanding public common shares of Enbridge Income Fund Holdings.
Date: 12/31/2018
Type: Merger
NOTES:
Enbridge Inc. has agreed to acquire all outstanding Class A common units of Enbridge Energy Partners and all of the outstanding public Listed Shares of Enbridge Energy Management, L.L.C
Enbridge Inc. has agreed to acquire all outstanding Class A common units of Enbridge Energy Partners and all of the outstanding public Listed Shares of Enbridge Energy Management, L.L.C
Date: 12/17/2018
Type: Merger
NOTES:
Enbridge has entered into a deal to acquire all outstanding public units of Spectra Energy Partners as part of a corporate structure simplification. They will buy shares by issuing 1.111 common shares of Enbridge for each common unit of Spectra, with the transaction being valued at $3.3 billion. Closing is expected in the fourth quarter of 2018.
Enbridge has entered into a deal to acquire all outstanding public units of Spectra Energy Partners as part of a corporate structure simplification. They will buy shares by issuing 1.111 common shares of Enbridge for each common unit of Spectra, with the transaction being valued at $3.3 billion. Closing is expected in the fourth quarter of 2018.
Date: 12/11/2018
Type: Acquisition
BUYERS:
Enbridge Inc.
SELLERS:
Gray Oak Pipeline, LLC
PROJECTS:
Gray Oak Pipeline
DETAILS:
COST: 600 $MM
NOTES:
Enbridge has acquired a 22.75% stake in the Gray Oak Pipeline Project.
Enbridge has acquired a 22.75% stake in the Gray Oak Pipeline Project.
REGIONS:
Permian Basin
Date: 8/3/2018
Type: Acquisition
SELLERS:
Enbridge Inc.
Enbridge Income Fund
DETAILS:
COST: 1.36 $B
NOTES:
Enbridge entered into a deal with the Canada Pension Plan Investment Board to sell a 49% stake in select North American renewable power assets and two offshore wind projects in Germany. This includes all of Enbridge's Canadian renewable assets held by Enbridge Income Fund, the Cedar Point Wind Farm in Colorado and the Silver State North Solar Project in Nevada.
Enbridge entered into a deal with the Canada Pension Plan Investment Board to sell a 49% stake in select North American renewable power assets and two offshore wind projects in Germany. This includes all of Enbridge's Canadian renewable assets held by Enbridge Income Fund, the Cedar Point Wind Farm in Colorado and the Silver State North Solar Project in Nevada.
REGIONS:
North America
Europe
Date: 8/2/2018
Type: Acquisition
SELLERS:
Enbridge Inc.
Midcoast Energy Partners, L.P.
Midcoast Operating, L.P
Midcoast Gas Gathering and Processing
ASSETS:
Anadarko Gathering System
East Texas Gathering System
Midcoast TexOk Gathering System
Texas Express NGL Pipeline
DETAILS:
COST: 1.12 $B
NOTES:
The deal includes legacy gathering & processing in Texas and Oklahoma, a long-haul NGL transmission system and the marketing and logistics business. On an asset level, the acquisition includes 11,900 miles of gas & NGL pipelines, 25 processing plants with >2 Bcf/d in capacity, 12 treating plants, an E/P fractionator and other liquids logistics assets.
The deal includes legacy gathering & processing in Texas and Oklahoma, a long-haul NGL transmission system and the marketing and logistics business. On an asset level, the acquisition includes 11,900 miles of gas & NGL pipelines, 25 processing plants with >2 Bcf/d in capacity, 12 treating plants, an E/P fractionator and other liquids logistics assets.
REGIONS:
South Central
Date: 1/1/2018
Type: Acquisition
NOTES:
Algonquin Power & Utilities Corp. has entered into an agreement to acquire St. Lawrence Gas Company, a subsidiary of Enbridge Gas Distribution Inc. for $70 million.
Algonquin Power & Utilities Corp. has entered into an agreement to acquire St. Lawrence Gas Company, a subsidiary of Enbridge Gas Distribution Inc. for $70 million.
REGIONS:
Northeast
Date: 7/31/2017
Type: Acquisition
NOTES:
On July 31, 2017, Enbridge completed the sale of its interest in the Olympic refined products pipeline (Olympic Pipeline) for $0.2 billion. This sale further bolsters the balance sheet and brings total asset monetizations executed to $2.5 billion since the announcement of the merger with Spectra Energy Corp (Spectra Energy) (the Merger Transaction)
On July 31, 2017, Enbridge completed the sale of its interest in the Olympic refined products pipeline (Olympic Pipeline) for $0.2 billion. This sale further bolsters the balance sheet and brings total asset monetizations executed to $2.5 billion since the announcement of the merger with Spectra Energy Corp (Spectra Energy) (the Merger Transaction)
REGIONS:
West
Date: 6/30/2017
Type: Acquisition
PROJECTS:
PennEast Pipeline
DETAILS:
NOTES:
Spectra Energy Partners, a subsidiary of Enbridge, has entered into a purchase and sale agreement with PSEG to acquire it's 10% stake in the PennEast Pipeline Project.
Spectra Energy Partners, a subsidiary of Enbridge, has entered into a purchase and sale agreement with PSEG to acquire it's 10% stake in the PennEast Pipeline Project.
REGIONS:
Northeast
Date: 2/17/2017
Type: Acquisition
NOTES:
Enbridge Inc. has acquired 50% interest in the 490 MW Hohe See wind project located in the North Sea, 98 kilometers off the coast of Germany.
Enbridge Inc. has acquired 50% interest in the 490 MW Hohe See wind project located in the North Sea, 98 kilometers off the coast of Germany.
REGIONS:
North Sea
Date: 2/15/2017
Type: Acquisition
BUYERS:
Enbridge Energy Partners, L.P.
Enbridge Inc.
Marathon Petroleum Corporation
MarEn Bakken Pipeline Company LLC
MPLX LP
DETAILS:
COST: 2 $B
NOTES:
Enbridge Energy Partners, Enbridge Inc and Marathon Petroleum have announced a joint venture to acquire a 36.75% interest in the Bakken Pipeline System from a holding company with a 75% interest in the System. The joint venture is called the MarEn Bakken Pipeline Company LLC. Enbridge will own 27.6% of the pipelines through MarEn and Marathon will own 9.15% of the pipeline projects.
Enbridge Energy Partners, Enbridge Inc and Marathon Petroleum have announced a joint venture to acquire a 36.75% interest in the Bakken Pipeline System from a holding company with a 75% interest in the System. The joint venture is called the MarEn Bakken Pipeline Company LLC. Enbridge will own 27.6% of the pipelines through MarEn and Marathon will own 9.15% of the pipeline projects.
REGIONS:
Bakken
Gulf Coast
Date: 2/15/2017
Type: Acquisition
NOTES:
Will create the largest energy infrastructure company in North America after the transaction concludes in the first quarter of 2017.
Will create the largest energy infrastructure company in North America after the transaction concludes in the first quarter of 2017.
REGIONS:
North America
Date: 11/15/2016
Type: Acquisition
BUYERS:
Tundra Energy Marketing Limited
DETAILS:
COST: 820 $MM
REGIONS:
Western Canadian Sedimentary Basin
Saskatchewan
Date: 5/10/2016
Type: Acquisition
NOTES:
50% stake in Eolien
50% stake in Eolien
REGIONS:
International
News & Press Releases
Criterion News
- 3/5/2024 - Canada Energy Regulator... (subscriber access)
- 2/12/2024 - Enbridge Files Mainline... (subscriber access)
- 2/12/2024 - Enbridge Grew its... (subscriber access)
- 2/12/2024 - Enbridge Closes Open... (subscriber access)
- 1/30/2024 - Enbridge Cutting 650... (subscriber access)
- 11/16/2023 - Enbridge Partners with... (subscriber access)
- 11/6/2023 - Enbridge Open Season for... (subscriber access)
- 10/9/2023 - Enbridge CEO Pushes... (subscriber access)
- 10/3/2023 - Enbridge Executive Calls... (subscriber access)
- 9/20/2023 - Enbridge Considering... (subscriber access)
- 9/8/2023 - Enbridge and Divert... (subscriber access)
- 9/6/2023 - Enbridge Acquiring Trio... (subscriber access)
- 8/9/2023 - Enbridge Holding Binding... (subscriber access)
- 8/7/2023 - Enbridge Reaches... (subscriber access)
- 8/7/2023 - Enbridge Moving Forward... (subscriber access)
- 7/13/2023 - NextDecade Makes... (subscriber access)
- 7/11/2023 - Enbridge Filing Notice... (subscriber access)
- 6/20/2023 - Canada Energy Regulator... (subscriber access)
- 6/9/2023 - Trans Mountain Pipeline... (subscriber access)
- 6/7/2023 - Enbridge Holds Open... (subscriber access)
- 6/5/2023 - Enbridge Reportedly... (subscriber access)
- 5/19/2023 - Federal Judge on Line 5... (subscriber access)
- 5/18/2023 - Enbridge Pushes Back... (subscriber access)
- 4/11/2023 - Leaked U.S. Intelligence... (subscriber access)
- 4/5/2023 - Humble Midstream Exiting... (subscriber access)
- 3/24/2023 - 18-Month Delay on Line 5... (subscriber access)
- 3/8/2023 - Enbridge & Suncor Facing... (subscriber access)
- 3/1/2023 - Enbridge Expecting... (subscriber access)
- 3/1/2023 - Enbridge Issues February... (subscriber access)
- 3/1/2023 - Enbridge Expecting... (subscriber access)
- 10/10/2018 - Enbridge Reports BC... (subscriber access)
Press Releases
- Re-affirmation of 5-7% average long-term annual distributable cash flow (DCF) per share growth outlook, based on an equity self-funded model
- The Company expects full-year 2020 DCF per share to be near the mid-point of the $4.50 to $4.80 guidance range
- Announced 2021 Financial Guidance: 2021 projected DCF per share of $4.70 to $5.00, and earnings before interest, taxes, depreciation and amortization (EBITDA) of $13.9 to $14.3 billion
- The Company declared its 26th consecutive annual common share dividend increase, raising it by 3% to $0.835/quarter ($3.34 annually), effective March 1, 2021
- Execution of the Company's $16 billion secured growth capital program continues to advance, generating approximately $2 billion of expected EBITDA growth from 2021 to 2023
- Construction has commenced on the remaining Minnesota leg of the U.S. Line 3 Replacement project
- Weymouth compressor was approved by regulators on November 25 to commence operations, completing the U.S.$0.1 billion Atlantic Bridge project, which provides expanded gas supply into New England and the Maritimes
- Ensure safe and reliable operations and provision of effective and cost-efficient transportation solutions for its customers
- Execute the $16 billion secured growth capital program, including completion of the U.S. segment of the Line 3 Replacement project
- Maximize returns on the base business through embedded revenue growth, productivity enhancements and the application of technology to drive efficiency and improve returns
- Grow core businesses through low capital intensity and utility-like investments, disciplined capital allocation, and preservation of balance sheet strength and flexibility
- Net zero target by 2050; 35% reduction in greenhouse gas emissions intensity by 2030
- Accelerated diversity representation in the workforce
- Incentive compensation linked to progress on ESG targets and goals
- A new goal to achieve net zero GHG emissions by 2050; with an interim target to reduce GHG emissions intensity 35% by 2030
- Increased representation of diverse groups within our workforce by 2025 including acceleration of existing goals of 28% from Racial and Ethnic groups, along with new actions to enhance supplier diversity
- Further strengthening Board diversity with an increased goal of 40% representation of women and new goal of 20% of Racial and Ethnic groups by 2025
- Most transparency and reporting of safety and reliability targets that drive continuous improvement towards our goal of zero incidents, injuries and occupational illnesses, and implementation of robust cyber defense programs
- Reduce the intensity of GHG emissions from our operations by 35% by 2030
- Achieve net zero emissions from our business by 2050
- Maintain the highest standards for safety toward our goal of zero incidents
- Modernization and Innovation -- Reduce emissions by modernizing equipment and applying innovation to existing energy transportation and distribution systems to increase efficiency and reduce the emissions intensity of existing infrastructure.
- Decarbonizing Energy Use – Reduce emissions intensity of electricity we buy, including building and operating solar power generation facilities to serve Enbridge's operations and utilizing lower intensity power sources from the grid.
- Investment in Renewables and Lower Carbon Energy – Disciplined investment in lower carbon infrastructure and business lines including wind and solar power generation, hydrogen, and renewable natural gas.
- Offsets and Carbon Credits – Balance residual emissions through procurement of carbon offset credits generated by nature-based solutions and Renewable Energy Certificates (RECs), with a primary focus on areas proximate to our operations.
- Achieve a 10% improvement over previous three-year average on Total Recordable Incident Frequency (TRIF) rate for employees and contractors;
- Maintain industry-leading safety performance against US Bureau of Labor Statistics benchmarks; and
- Implement a new voluntary industry standard (CSA Z260-19: Pipeline system safety metrics) criteria for pipeline system safety performance enterprise-wide and establish 2021 baseline to set Business Unit targets for 2022 forward.
- Achieve a workforce that represents the communities where Enbridge operates – including the goal by 2025 of 28% employees from Racial and Ethnic demographic groups
- Increase procurement from diverse suppliers and suppliers that support and invest in diversity and inclusion
- Contribute to Indigenous reconciliation through employment strategies and training
- Achieve representation on the Board of Directors of at least 40% women and 20% of Racial and Ethnic groups by 2025
- Continue sustainability reporting on ESG matters consistent with best practices
- Maintain effective cyber defense through annual certification and training
- GAAP earnings of $990 million or $0.49 earnings per common share, compared with GAAP earnings of $949 million or $0.47 per common share in 2019
- Adjusted earnings of $961 million or $0.48 per common share, compared with $1,124 million or $0.56 per common share in 2019
- Adjusted earnings before interest, income tax and depreciation and amortization (EBITDA) of $2,997 million, compared with $3,108 million in 2019
- Cash Provided by Operating Activities of $2,302 million, compared with $2,735 million in 2019
- Distributable Cash Flow (DCF) of $2,088 million, compared with $2,105 million in 2019
- Reaffirmed 2020 financial guidance range for 2020 of $4.50 to $4.80 DCF/share; expect full year results to be near the mid-point of the range
- Advancing Line 3: Minnesota Pollution Control Agency (MPCA) contested case hearing concluded with a positive recommendation from the Administrative Law Judge (ALJ) in advance of November 14th 401 Water Quality Certificate deadline
- Commenced construction of the 500 MW Fécamp offshore wind farm and 480 MW Saint Nazaire offshore wind farm construction remains on track for late 2022 in-service date
- Sanctioned $0.2 billion of utility growth capital for the London Line Replacement Project
- Completed 2020 debt funding plan and prefunded a portion of 2021 external debt requirements
- Announced emissions reduction targets, including a 35% reduction in energy intensity by 2030 and net-zero by 2050
- Announced diversity and inclusion goals to increase representation of diverse groups within our workforce by 2025
- Completed installation of first of its kind solar self-powered compressor station on Texas Eastern and initiated construction on a second facility along the Liquids Mainline System
- additional EBITDA contributions due to strong utilization in our Gas Transmission and Gas Distribution businesses, incremental earnings from positive rate settlements on Texas Eastern, lower operating and administrative costs as a result of cost containment actions and contributions from new assets that were placed into service in the fourth quarter of 2019 and the first half of 2020;
- more than offset by a decrease in adjusted EBITDA due to lower Mainline throughput related to COVID-19, the absence of contributions from the federally regulated Canadian natural gas gathering and processing businesses sold on December 31, 2019, and lower contributions from Energy Services;
- lower maintenance capital due to timing of spend in light of COVID-19 mobility restrictions;
- higher interest expense due to a combination of additional debt incurred to fund capital expenditures as well as a reduction in capitalized interest associated with the Canadian portion of Line 3 placed into service in December 2019, which has been partially offset by lower rates on short-term and newly issued long-term notes;
- higher cash distributions in excess of equity earnings due new assets placed into service, including Gray Oak crude oil pipeline and Hohe See Offshore Wind Project; partially offset by a 50% distribution cut at DCP Midstream, LP (DCP Midstream); and
- higher receipts of cash not recognized in revenue due to approximately $120 million of cash received on certain take-or-pay contracted assets that contain make-up right provisions for contracted volumes not shipped which are not included in Adjusted EBITDA due to revenue recognition guidance but are included in DCF.
- higher depreciation and amortization expense as a result of new assets placed into service throughout 2019, primarily on the Canadian portion of Line 3 which entered service in December 2019; and
- higher interest expense due to debt issued to fund new growth capital as well as a reduction in capitalized interest associated with the Canadian portion of Line 3 which has been partially offset by lower rates on short-term debt and newly issued long-term notes;
- offset by lower income taxes primarily due to lower earnings.
- lower Mainline System throughput, with ex-Gretna throughput on average 159 kbpd lower driven by the impact of COVID-19 on supply and demand for oil and related products, partially offset by a higher IJT Benchmark Toll and contributions from the Canadian Line 3 Replacement Program that was placed into service on December 1, 2019 with an interim surcharge on Mainline System volumes of US$0.20 per barrel;
- slightly lower Regional Oil Sands contributions despite the larger decrease in delivered volumes which reflects the fixed fee obligations of shippers under the take-or-pay arrangements which underpin the majority of these assets;
- higher contributions from the Gulf Coast and Mid-Continent System on higher Flanagan South Pipeline throughput and the collection of revenue on volumes nominated but not shipped, offset by lower light volume throughput on the Seaway Crude Pipeline driven by the impact of COVID-19 on the Gulf Coast demand; and
- lower throughput on the Bakken Pipeline System, included in Other, driven by the impact of lower prices and COVID-19 on supply and demand for oil and products.
- higher revenues in US Gas Transmission due to the recent rate settlement on Texas Eastern and Algonquin, and higher contributions from the second phase of the Atlantic Bridge project which was put into service fourth quarter of 2019, offset by lower revenues on Texas Eastern due to pressure restrictions; and
- the absence of earnings in Canadian Gas Transmission in 2020 from the federally-regulated portion of the Canadian natural gas gathering and processing assets that were sold on December 31, 2019, as well as lower commodity prices impacting Aux Sable.
- higher distribution charges resulting from increases in rates and customer base growth; and
- synergy captures realized from the amalgamation of Enbridge Gas Distribution Inc. and Union Gas Limited;
- partially offset by the absence of earnings in 2020 from Enbridge Gas New Brunswick and St. Lawrence Gas Company, Inc. which were sold on October 1, 2019, and November 1, 2019, respectively.
- contributions from the Hohe See Offshore Wind Project, which reached full operating capacity in October 2019, and the Albatros expansion, which was placed into service in January 2020;
- partially offset by higher mechanical repair costs at certain United States wind farms.
- lower operating and administrative costs as a result of cost containment actions and timing related to the recovery of certain operating and administrative costs allocated to the business segments; and
- lower realized foreign exchange settlement losses primarily due to a narrower spread between the average exchange rate of $1.33 for the third quarter of 2020 (Q3 2019:$1.32) and the third quarter 2020 hedge rate of $1.29 (Q3 2019:$1.24).
- GAAP earnings of $1,647 million or $0.82 earnings per common share, compared with GAAP earnings of $1,736 million or $0.86 per common share in 2019
- Adjusted earnings were $1,133 million or $0.56 per common share, compared with $1,349 million or $0.67 per common share in 2019
- Adjusted earnings before interest, income tax and depreciation and amortization (EBITDA) were $3,312 million, compared with $3,208 million in 2019
- Cash Provided by Operating Activities was $2,416 million, compared with $2,494 million in 2019
- Distributable Cash Flow (DCF) was $2,437 million, compared with $2,310 million in 2019
- Re-affirmed financial guidance range for 2020 of $4.50 to $4.80 DCF/share
- Reliably served North American energy needs through continued safe operations during the ongoing COVID-19 pandemic
- To further bolster resiliency, the Company executed several actions to enable $300 million of cost reduction in 2020
- Completed 2020 debt funding plan, with more than $14 billion of available liquidity
- Received regulatory approvals on the Algonquin Gas Transmission and B.C. Pipeline uncontested rate settlements
- Secured the Fécamp offshore wind farm in France, a 500 MW facility underpinned by a long-term fixed-price power purchase agreement
- Sanctioned four growth projects in Gas Distribution and Storage to reinforce the distribution network and expand storage capacity at the Dawn hub
- Progressing execution of $11 billion secured capital program
- Successfully completed Line 3 Minnesota Public Utilities Commission (MPUC) Petition for Reconsideration process; Minnesota Pollution Control Agency (MPCA) progressing towards November 14th permitting milestone
- Regulatory review process established by the Canada Energy Regulator (CER) for the Mainline Contract application; Enbridge responded to initial Information Requests demonstrating clear benefits to the public and shippers
- Completed Phase 1 of the Express Pipeline Expansion, adding 25 kbpd of capacity.
- Progressing construction of the $1.0 billion T-South reliability and expansion project, with over $30 million in spending directly benefiting indigenous affiliated companies. The project is on target for a phased in-service date during 2021.
- Received FERC authorization to proceed with the $0.2 billion Cameron Extension project, which will connect Texas Eastern to Venture Global's Calcasieu Pass LNG facility. The project is expected to commence construction in 2020.
- The $0.9 billion Saint Nazaire French offshore wind project is advancing as planned with major contractors selected and fabrication of key project components underway.
- Advancing planned Mainline System optimizations enabling approximately 50 kbpd of incremental throughput
- Growth in adjusted EBITDA was driven by strong utilization in our Gas pipelines and utility, incremental earnings from positive rate settlements on Texas Eastern, contributions from new assets that were placed into service throughout 2019 and the first quarter of 2020 and Energy Services profits from favourable storage opportunities. These positive business factors were partially offset by lower earnings from Liquids Pipelines due to lower Mainline throughput related to COVID-19 and the absence of contributions from the federally regulated Canadian natural gas gathering and processing business sold on December 31, 2019. For further detail on business performance refer to Adjusted EBITDA by Segments.
- Lower maintenance capital due to timing of spend in light of COVID-19 mobility restrictions.
- Higher interest expense due to a combination of additional new debt incurred to fund capital expenditures as well as a reduction in capitalized interest associated with the Canadian portion of Line 3 placed into service in December 2019, partially offset by lower rates on short-term and newly issued long-term notes.
- Higher current income tax due to higher minimum US tax and timing of recognition of newly enacted Canadian tax legislation that came into effect in the second half of 2019.
- Higher cash distributions in excess of equity earnings due to both timing of distributions and new assets placed into service, including Gray Oak crude oil pipeline and Hohe See Offshore Wind Project; partially offset by a 50% distribution cut at DCP Midstream, LP (DCP Midstream).
- Higher depreciation and amortization expense as a result of new assets placed into service throughout 2019, primarily on Line 3 Canada which entered service in December 2019.
- Higher interest expense due to debt issued to fund new growth capital as well as a reduction in capitalized interest associated with the Canadian portion of Line 3, partially offset by lower rates on short-term debt and newly issued long-term notes.
- Higher income taxes primarily due to higher minimum US tax and timing of recognition of newly enacted Canadian tax legislation that came into effect in the second half of 2019.
- Mainline System contributions was negatively impacted by reduced utilization rates, with ex-Gretna throughput down on average 222 kbpd, driven by the impact of COVID-19 on supply and demand for oil and related products; this was more than offset by a higher IJT Benchmark Toll and contributions from the Canadian Line 3 Replacement (L3R) Program that was placed into service on December 1, 2019 with an interim surcharge on Mainline System volumes of US$0.20 per barrel.
- Regional Oil Sands contributions were consistent despite the decrease in delivery volumes which is largely due to the majority of the assets being contracted under take-or-pay arrangements.
- Gulf Coast and Mid-Continent System was slightly down due to lower period-over-period throughput on the Seaway Crude Pipeline driven by the impact of COVID-19 on the Gulf Coast demand and lower Flanagan South Pipeline throughput.
- Other decreased due to lower throughput on our Bakken Pipeline System driven by the impact of lower prices and COVID-19 on supply and demand for oil and products.
- US Gas Transmission adjusted EBITDA increased primarily due to higher revenues from Texas Eastern resulting from the recent rate settlement and contributions from the Stratton Ridge project and the second phase of the Atlantic Bridge project that were placed into service in the third and fourth quarters of 2019, respectively; partly offset by higher operating costs.
- Canadian Gas Transmission adjusted EBITDA decreased primarily due to the absence of contributions from federally regulated Canadian gas gathering and processing assets that were sold on December 31, 2019. Further, contributions from the Alliance Pipeline and Aux Sable are also lower driven by narrowed AECO-Chicago basis and lower commodity prices impacting fractionation margins, respectively.
- Colder weather experienced in our franchise service areas which led to higher utilization. When compared with the normal weather forecast embedded in rates, the colder weather in the second quarter of 2020 positively impacted EBITDA by approximately $22 million (Q2 2019: ~$19 million); and
- Higher distribution revenues resulting from increases in rates and customer base growth, as well as synergy capture realized from the amalgamation of Enbridge Gas Distribution Inc. and Union Gas Limited.
- Stronger wind resources at United States wind facilities;
- Contributions from the Hohe See Offshore Wind Project, which reached full operating capacity in October 2019, and the Albatros expansion, which was placed into service in January 2020; and
- Reimbursements received at certain Canadian wind facilities resulting from a change in operator.
- Lower operating and administrative costs as a result of cost containment actions, as well as timing related to the recovery of certain operating and administrative costs allocated to the business segments offset by
- Higher realized foreign exchange settlement losses primarily due to a wider spread between the average exchange rate of $1.39 for the second quarter of 2020 (Q2 2019:$1.34) and the second quarter 2020 hedge rate of $1.29 (Q2 2019:$1.24).
- Siemens Gamesa Renewable Energy (SGRE) for the 71 wind turbines;
- Bouygues Construction, plus Saipem and Boskalis for its foundations; and
- Chantiers de l'Atlantique, plus GE Grid Solutions and SDI for the offshore sub-station.
- EDF Renewables, which owns 35% of the project through Éolien Maritime France SAS, brings its expertise in the development, construction and operation of renewable energy projects, including in the offshore wind sector. The company has a portfolio of 6.5 GW in offshore wind energy projects at various stages of their development in the Belgian, UK, German, Irish, US and Chinese offshore wind sectors.
- Enbridge Inc., which owns 35% of the project through Éolien Maritime France SAS, is a North American leading energy infrastructure company. In addition to its portfolio of 1.4 GW of net onshore renewable power generation in Canada and the U.S., the corporation has investments across Europe in several large offshore wind projects in the development, construction and operational stages. In total, Enbridge has interest in 28 facilities totalling 1.8 GW of net renewable power generation capacity in operation.
- wpd offshore, which owns 30% of the project, is one of the pioneers and leaders of offshore wind. The group has already commissioned 3 wind farms in Germany, and recently gave the final go-ahead to invest in a 640 MW project in Taiwan. The company has a portfolio of 7.4 GW of offshore wind projects in development, in Europe and Asia.
- First quarter GAAP loss of $1,429 million or $0.71 loss per common share, compared to GAAP earnings of $1,891 million or $0.94 per common share in 2019, impacted by certain unusual and infrequent factors, including a non-cash impairment of the Company's investment in DCP Midstream of $1,736 million and non-cash unrealized derivative fair value losses of $1,956 million
- Adjusted earnings were $1,668 million or $0.83 per common share for the first quarter of 2020, compared with $1,640 million or $0.81 per common share in 2019
- Adjusted earnings before interest, income tax and depreciation and amortization (EBITDA) was $3,763 million, compared with $3,769 million in 2019
- Cash Provided by Operating Activities was $2,809 million, compared with $2,176 million in 2019
- Distributable Cash Flow (DCF) was $2,706 million, compared with $2,758 million in 2019
- Reaffirmed financial guidance range for 2020 Distributable Cash Flow per Share of $4.50 to $4.80/share
- Issued $4 billion of term debt at attractive rates, and added $3 billion of new committed credit facilities, increasing available liquidity to $14 billion
- Texas Eastern Transmission, LP (Texas Eastern) received approval from the Federal Energy Regulatory Commission (FERC) of its uncontested rate case settlement with customers
- Reducing operating costs by $300M, including reductions to senior management and Board of Directors' compensation to further bolster our business resiliency
- Deferral of approximately $1 billion of planned 2020 secured growth capital spending to reflect refined execution schedules in light of COVID-19
- Minnesota Public Utilities Commission (PUC) issued its official order confirming the re-certification of the Final Environmental Impact Statement (FEIS), Route Permit and the Certificate of Need for the Line 3 Replacement Project
- The Pollution Control Agency (PCA) and the U.S. Army Corp of Engineers (USACE) completed their public consultation periods, further advancing Line 3 permitting
- Filed a joint application for permits to the USACE and Michigan Department of Environment, Great Lakes and Energy (EGLE) to construct the Straits of Mackinac tunnel
- Reached an agreement to sell 49% of our interest in three offshore Wind projects under development in France to the Canada Pension Plan Investment Board (CPP Investments) for initial proceeds expected to exceed $100 million, and pro-rata contributions for development and construction, going forward
- Announced $0.3 billion of additional asset divestitures, including the Montana Alberta Tie Line (MATL) power transmission business and the Ozark gas pipeline assets
- Secures long-term demand for Western Canadian Sedimentary Basin (WCSB) heavy and light barrels in premium markets;
- Supports the best netbacks for WCSB producers;
- Competitive and stable tolls for customers; and
- Flexibility for shippers of all types and sizes to participate by offering both a traditional take-or-pay and producer and refiner requirements contracts.
- Lower Adjusted EBITDA reflecting strong operating performance from Liquids Pipelines and Gas Transmission and Midstream assets and contributions from new assets placed into service in 2019, offset by the absence of contributions from the federally regulated Canadian natural gas gathering and processing business sold on December 31, 2019, lower EBITDA from Energy Services due to narrowing of certain crude oil location and quality differentials, and lower adjusted EBITDA from Gas Distribution and Storage due to warmer weather in the first quarter of 2020 when compared with the first quarter of 2019.
- Higher maintenance capital due the timing of maintenance spending at the end of 2019 that carried over into the first quarter of 2020.
- Higher interest expense due to a combination of additional of new debt incurred to fund capital expenditures as well as a reduction in capitalized interest associated with the Canadian portion of Line 3 which was placed into service in December 2019, partially offset by lower rates on short term debt and newly issued long term notes.
- Higher depreciation and amortization expense as a result of new assets placed into service throughout 2019.
- Higher interest expense due to debt issued to fund new growth capital as well as a reduction in capitalized interest associated with the Canadian portion of Line 3 which was placed into service in December 2019, partially offset by lower rates on short term debt and newly issued long term notes.
- Lower income taxes primarily due to lower adjusted earnings before income taxes.
- A positive impact to NCI as a result of tax equity adjustments on certain onshore wind farms.
- Mainline System adjusted EBITDA increased driven by higher throughput as a result of continued optimizations of the system, as well as a higher period-over-period IJT. In addition, the Mainline System benefited from incremental contributions from the Canadian portion of the Line 3 Replacement project that was placed into service on December 1, 2019, with an interim surcharge on Mainline volumes of US$0.20 per barrel.
- Gulf Coast and Mid-Continent System growth was driven by strong demand for spot volumes on the Flanagan South Pipeline due to refinery outages in the Midwest U.S. The Gray Oak Pipeline project commenced service late in the fourth quarter of 2019 and provided modest contributions in the first quarter of 2020 with volume expected to ramp up in the second quarter of 2020.
- Other adjusted EBITDA increased due primarily to higher volumes on the Dakota Access Pipeline.
- US Gas Transmission adjusted EBITDA increased primarily due to higher revenues from updated rates on Texas Eastern resulting from the recent rate case settlement and following the FERC approval, the Company recognized in revenue interim rates collected from shippers since June 1, 2019. In addition, various US Transmission assets were placed into service after the first quarter of 2019 including Atlantic Bridge Phase 2 and Stratton Ridge. These increases were partially offset by higher planned integrity expenditures.
- Canadian Gas Transmission adjusted EBITDA decreased primarily due to the absence of adjusted EBITDA contributions from federally regulated Canadian gas gathering and processing assets that were sold on December 31, 2019. Further, contributions from the Alliance Pipeline are also lower driven by narrowing of the AECO-Chicago basis.
- Lower operating and administrative costs and the timing of the recovery of certain operating and administrative costs allocated to the business segments.
- Lower realized foreign exchange settlement losses primarily due to a narrower spread between the average exchange rate of $1.35 for the first quarter of 2020 (Q1 2019:$1.33) and the first quarter 2020 hedge rate of $1.29 (Q1 2019:$1.24).
- Full year GAAP earnings of $5,322 million or $2.64 per common share compared with $2,515 million or $1.46 per common share for 2018
- Adjusted earnings of $5,341 million or $2.65 per common share in 2019 compared with $4,568 million or $2.65 per common share for 2018
- Adjusted earnings before interest, income tax and depreciation and amortization (EBITDA) of $13,271 million in 2019 compared with $12,849 million for 2018
- Cash Provided by Operating Activities of $9,398 million in 2019 compared with $10,502 million for 2018
- Distributable Cash Flow (DCF) of $9,224 million in 2019 compared with $7,618 million for 2018
- Achieved the top-end of full-year DCF per share guidance range of $4.30 to $4.60
- Reaffirmed 2020 DCF per share guidance range of $4.50 to $4.80, and longer term 5 to 7% DCF per share growth outlook, within an equity self-funding model
- Increased the quarterly dividend by 9.8% for 2020 to 81 cents per share, reflecting strong operating and financial performance and the Company's outlook
- Delivered 100 thousand barrels per day (kbpd) of planned Mainline optimizations, providing much needed egress capacity for Western Canadian producers
- Placed $7 billion of new projects into service in the fourth quarter, including the US$0.7 billion investment in the Gray Oak pipeline, the $1.1 billion German Hohe See offshore wind project, and the Canadian segment of the Line 3 Replacement project, under an interim surcharge agreement
- Filed regulatory application in support of contracting the Liquids Mainline System on December 19, with support from shippers representing over 70% of current throughput
- Minnesota Public Utilities Commission (MPUC) re-certified the Line 3 Replacement project Final Environmental Impact Statement (FEIS), the Certificate of Need and the Route Permit on February 3, 2020
- Advanced LNG supply strategy with the announcement of agreement to expand our system to supply the Annova LNG facility in the Port of Brownsville, Texas, and agreements to acquire the Rio Bravo pipeline development project and supply the Rio Grande LNG facility
- Closed second phase of the Canadian midstream sale, successfully concluding previously announced $8 billion asset sale program; achieved 4.5x Debt/EBITDA at year end
- Announced the $0.2 billion sale of the Montana-Alberta Tie Line (MATL); further increasing financial flexibility
- A US$0.7 billion investment in the Gray Oak Pipeline, which provides incremental crude pipeline capacity out of the Eagle Ford and Permian basins and is underpinned by long-term take-or-pay transportation contracts.
- The $1.1 billion HoHe See Offshore Wind Project and adjacent expansion, which are both fully operational with a combined capacity of 609MW, and are fully back stopped by a government legislated 20-year revenue support mechanism.
- The $5.0 billion Canadian segment of the Line 3 Replacement project (discussed in the Line 3 Replacement section).
- Secures long-term demand for WCSB heavy and light barrels in premium markets;
- Supports the best netbacks for WCSB producers;
- Competitive and stable tolls for customers; and
- Flexibility for shippers of all types and sizes to participate by offering both a traditional take-or-pay and producer and refiner requirements contracts.
- Ensuring safe and reliable operations and providing effective and cost-efficient transportation solutions for customers;
- Enhancing the business through asset optimization, cost efficiencies and low-risk growth;
- Executing on an $11 billion secured growth capital program, including the U.S. segment of the Line 3 Replacement project; and
- Growing core businesses through capital efficient organic growth and disciplined capital allocation.
- Adjusted EBITDA reflected strong operating performance, increased asset utilization and contributions from assets placed into service in late 2018 and through 2019, offset by the absence of contributions from the sale of assets in the Gas Transmission and Midstream segment during 2018, as well as lower EBITDA from Energy Services crude operations due to narrowing of certain location and quality differentials during the fourth quarter.
- Lower distributions to noncontrolling and redeemable noncontrolling interests following the completion of Enbridge's buy-in of the publicly held interests in its sponsored vehicles, which were completed in the fourth quarter of 2018.
- Higher cash distributions in excess of equity earnings from equity investments primarily due to higher distributions as a result of strong performance, as well as new equity investments placed into service, including the Valley Crossing Pipeline, the NEXUS Gas Transmission Pipeline, and the Big Foot Pipeline.
- Increased adjusted EBITDA contributions from Energy Services for the year 2019 when compared to 2018 due to the widening of certain location and quality differentials benefiting the first half of 2019.
- Higher depreciation and amortization expense as a result of new assets placed into service, net of depreciation expense no longer recorded for assets which were classified as assets held for sale or sold during second half of 2018.
- Higher interest expense due to the absence of capitalized interest related to assets that were placed into service in late 2018 and 2019.
- Lower income taxes due to lower adjusted earnings before tax for the fourth quarter of 2019 when compared with the fourth quarter of 2018.
- Mainline System adjusted EBITDA reflected higher throughput, driven by strong supply and continued optimizations of the system, as well as a higher period-over-period International Joint Toll (IJT). In addition, the Canadian portion of the Line 3 Replacement project was placed into service on December 1, 2019, with an interim surcharge on all mainline volumes of US$0.20 per barrel. However, these increases to EBITDA were more than offset by a lower foreign exchange rate on contracts used to hedge U.S. dollar denominated revenues from the Canadian portion of the Mainline System (2019: C$1.19/US; 2018: C$1.26/US), as well as higher operating costs due to timing of expenditures.
- Gulf Coast and Mid-Continent System growth was driven by strong Gulf Coast demand resulting from favourable price differentials, as well as modest contributions from the Gray Oak Pipeline project that commenced service late in the fourth quarter of 2019, with volume expected to ramp up in the first half of 2020.
- Gulf Coast and Mid-Continent System growth was a result of higher volumes on the Flanagan South and Seaway pipelines due to strong Gulf Coast demand resulting from favourable price differentials.
- Other EBITDA increased primarily due to increased volume throughput on the Bakken Pipeline System driven by strong production in the region.
- US Gas Transmission adjusted EBITDA reflected a full quarter of contributions from new assets placed into service in late 2018, including Valley Crossing Pipeline and the NEXUS Gas Transmission Pipeline. The increase in EBITDA was partially offset by higher planned integrity expenditures, lower AFUDC on decreased capital spend, as well as both lower revenues and higher operating costs associated with the Texas Eastern pipeline incident in Lincoln County, Kentucky that occurred in the third quarter of 2019.
- Canadian Gas Transmission adjusted EBITDA decreased period-over-period due to a decrease in interruptible service revenue in 2019 as a result of a weaker AECO-Chicago basis.
- US Midstream adjusted EBITDA primarily reflects the impact of lower commodity prices on fractionation margins at Aux Sable partially offset by higher volumes and more favourable margins at DCP Midstream.
- Canadian Gas Transmission adjusted EBITDA period-over-period results primarily reflect the absence of contributions from the provincially regulated Canadian natural gas gathering and processing business which was sold October 1, 2018. The sale of the remaining federally regulated Canadian natural gas gathering and processing assets closed on December 31, 2019.
- US Midstream adjusted EBITDA primarily reflects the absence of EBITDA from Midcoast Operating, L.P. which was sold on August 1, 2018.
- Other EBITDA has increased in 2019 primarily due to contributions from the Big Foot Pipeline which was placed into service in the fourth quarter of 2018.
- EGI adjusted EBITDA increased due to higher distribution charges primarily resulting from increases in distribution rates and customer base, synergies realized from the amalgamation of EGD and Union Gas, as well as the absence of earnings sharing in 2019 which was recognized in 2018 under EGD's previous incentive rate structure.
- These contributions were partially offset due to warmer weather in EGI's franchise areas in the fourth quarter which led to lower utilization, as well as the effects of the accelerated capital cost allowance deductions reflected as a pass through to customers, consistent with the Ontario Energy Board's prescribed deferral account treatment.
- Other Gas Distribution and Storage adjusted EBITDA decreased due to closing of the sale of Enbridge Gas New Brunswick on October 1, 2019, and St. Lawrence Gas Company, Inc. on November 1, 2019.
- Higher adjusted EBITDA as a result of contributions from the Hohe See Offshore Wind Project, which reached full operating capacity in October 2019. The adjacent expansion project, Albatros, came into service in January 2020.
- Stronger wind resources across the Company's Canadian wind facilities.
- Absence of a positive arbitration settlement of $11 million from a warranty claim that occurred in the first quarter of 2018.
- Weaker wind resources, availability, and higher mechanical repair costs primarily at US wind facilities in the first half of 2019, net of insurance recoveries.
- Lower EBITDA contributions from Energy Services crude operations as a result of narrowing of certain location and quality differentials during the fourth quarter.
- The timing of the recovery of certain operating and administrative costs allocated to the business segments, partially offset by lower operating and administrative costs.
- Lower realized foreign exchange settlement losses in the fourth quarter of 2019 primarily due to a narrower spread between the average exchange rate of $1.32 for the fourth quarter of 2019 (Q4 2018:$1.32) and the fourth quarter 2019 hedge rate of $1.24 (Q4 2018:$1.20).
- Lower operating and administrative expenses.
- Lower realized foreign exchange settlement losses in 2019 primarily due to a narrower spread between the average exchange rate of $1.33 for 2019 (2018:$1.30) and the 2019 hedge rate of $1.24 (2018:$1.16).
- A 9.8% increase in the Company's common share dividend to $0.81/quarter ($3.24 annually), effective March 1, 2020.
- Updated 2020 financial guidance: EBITDA of approximately $13.7 billion; DCF per share of $4.50 to $4.80 per share
- Re-affirmation of 5%-7% average long term annual DCF per share growth outlook, based on an equity self-funded model
- Advancement of Liquids Pipelines U.S. Gulf Coast integrated value chain strategy
- Canadian segment of the Line 3 Replacement project placed into service
- Additional spill modelling work on Line 3 Replacement project completed; revised Final Environmental Impact Statement (FEIS) submitted to Minnesota Public Utilities Commission (MPUC)
- Regulatory application for Liquids Mainline contracting expected to be filed before year-end
- Ensuring safe and reliable operations and provision of effective and cost-efficient transportation solutions for customers
- Enhance the business through asset optimization, cost efficiencies and low-risk growth
- Executing on $11 billion secured growth capital program, including the U.S. segment of the Line 3 Replacement project
- Growing core businesses through capital efficient organic growth, disciplined capital allocation, and preservation of balance sheet strength and flexibility
- GAAP earnings of $949 million or $0.47 per common share for the third quarter of 2019, compared to GAAP loss of $90 million or $0.05 loss per common share in the third quarter of 2018, both including the impact of a number of unusual, non-recurring or non-operating factors
- Adjusted earnings of $1,124 million or $0.56 per common share for the third quarter of 2019, compared to $933 million or $0.55 per common share in the third quarter of 2018
- Adjusted earnings before interest, income tax and depreciation and amortization (EBITDA) of $3,108 million for the third quarter of 2019, compared to $2,958 million in the third quarter of 2018
- Cash Provided by Operating Activities of $2,735 million for the third quarter of 2019, compared to $1,461 million for the third quarter of 2018
- Distributable Cash Flow (DCF) of $2,105 million for the third quarter of 2019, compared to $1,585 million for the third quarter of 2018
- Reaffirmed financial guidance range for 2019 DCF per Share of $4.30 to $4.60/share; full year results expected to exceed the mid-point of the guidance range
- Reached an agreement with shippers to place the Canadian segment of the Line 3 Replacement Project into service with an interim surcharge
- Continuing progress on the U.S. segment of Line 3 Replacement Project: Minnesota Supreme Court rejects Environmental Impact Statement (EIS) appeals; in October the Minnesota Public Utilities Commission (MPUC) orders EIS remediation work to be completed by December 9, 2019
- Announced Memorandum of Understanding (MOU) with NextDecade to jointly pursue the development of the Rio Bravo Pipeline and other natural gas pipelines in South Texas to serve the Rio Grande LNG project in Brownsville, Texas
- Achieved a formal settlement on Texas Eastern rates with customers, which has been filed with the FERC for review
- Seaway pipeline announced an upcoming open season for up to 200 thousand barrels per day (kbpd) expansion on the Seaway crude oil pipeline
- Receipt of $0.4 billion of proceeds on previously announced non-core asset sales; further increasing financial flexibility
- An increase in adjusted EBITDA primarily due to strong base operating performance including higher throughput, and incremental contributions from new projects placed into service. For further detail on business performance refer to Adjusted EBITDA by Segments below.
- Lower distributions to noncontrolling and redeemable noncontrolling interests following the completion of Enbridge's buy-in of the publicly held interest in its sponsored vehicles, which were completed in the fourth quarter of 2018.
- Higher equity distributions in excess of equity earnings from equity investments due to strong performance as well as new equity investments placed into service.
- Higher current income taxes in part as a result of higher earnings before income taxes.
- Higher depreciation and amortization expense as a result of placing new assets into service, net of depreciation expense no longer recorded for assets which were classified as assets held for sale or sold during second half of 2018.
- Higher income tax expense, in part due to higher earnings before tax and a higher effective income tax rate. The period-over-period increase in the effective income tax rate is partly due to the buy-in of the US Master Limited Partnerships (MLP), Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP, which results in the Company being taxed on 100% of the MLP earnings rather than the Company's proportionate share of their earnings.
- Mainline System adjusted EBITDA reflected higher throughput, driven by strong supply and continued optimizations of the system, as well as a higher period-over-period IJT. Partially offsetting the increase to EBITDA was a lower foreign exchange rate on contracts used to hedge U.S. dollar denominated revenues from the Canadian portion of the Mainline System.
- Gulf Coast and Mid-Continent System growth was driven by strong demand in the US Gulf Coast for Canadian crude which drove higher volumes on the Flanagan South and Seaway pipelines.
- Other increased primarily as a result of strong throughput on the Bakken Pipeline System.
- US Gas Transmission adjusted EBITDA reflected higher contributions from new pipelines places into service in late 2018, including Valley Crossing. The increase in EBITDA was partially offset by higher planned integrity expenditures and lower revenues and higher operating costs associated with the Texas Eastern pipeline system incident in Lincoln County, Kentucky.
- Canadian Gas Transmission adjusted EBITDA period-over-period results primarily reflect the absence of contributions from the provincially regulated Canadian natural gas gathering and processing business which was sold on October 1, 2018 as well as higher operating costs. The sale of the remaining CER regulated assets is expected to close in the fourth quarter of 2019.
- US Midstream adjusted EBITDA primarily reflects the absence of EBITDA from Midcoast Operating, L.P. which was sold on August 1, 2018, as well as lower commodity prices impacting fractionation margins at Aux Sable.
- Other adjusted EBITDA growth is driven by contributions from the Big Foot Oil and Gas offshore pipelines which was placed into service during 2018.
- EGI adjusted EBITDA increased due to higher distribution charges primarily resulting from increases in distribution rates and customer base, as well as synergy captures realized from the amalgamation of Enbridge Gas Distribution and Union Gas.
- These increases were more than offset by accelerated capital cost allowance deductions reflected as a pass through to customers.
- Stronger wind resources across the majority of the Company's North American wind facilities, partially offset by higher mechanical repair costs at certain United States wind facilities.
- Higher contributions from the Rampion Offshore Wind Project.
- Higher EBITDA contributions from Energy Services crude operations as a result of the widening of certain location and quality differentials during the second half of 2018 and the first quarter of 2019, which increased opportunities to generate profitable transportation margins that were realized during 2019.
- Lower operating and administrative costs in 2019.
- Lower realized foreign exchange hedge settlement losses primarily due to a favourable spread between the average exchange rate of $1.32 for the third quarter of 2019 (Q3 2018: $1.31) and the third quarter 2019 hedge rate of $1.24 (Q3 2018: $1.16), partially offset by a higher notional amount of foreign currency derivatives.
- GAAP earnings of $1,736 million or $0.86 per common share for the second quarter of 2019, compared to $1,071 million or $0.63 per common share in the second quarter of 2018, both including the impact of a number of unusual, non-recurring or non-operating factors
- Adjusted earnings of $1,349 million or $0.67 per common share for the second quarter of 2019, compared to $1,094 million or $0.65 per common share in the second quarter of 2018
- Adjusted earnings before interest, income tax and depreciation and amortization (EBITDA) of $3,208 million for the second quarter of 2019, compared to $3,165 million in the second quarter of 2018
- Cash Provided by Operating Activities of $2,494 million for the second quarter of 2019, compared to $3,344 million for the second quarter of 2018
- Distributable Cash Flow (DCF) of $2,310 million for the second quarter of 2019, compared to $1,858 million for the second quarter of 2018
- Reaffirmed financial guidance range for 2019 DCF per Share of $4.30 to $4.60/share
- Launched a binding open season to secure contracted priority access transportation agreements on the Liquids Mainline System upon expiry of the Competitive Toll Settlement (CTS) agreement in June 2021
- Launched a binding open season for a 50 kbpd expansion of the Express liquids pipeline for service in the first quarter of 2020
- Announced $2 billion of new secured growth projects across the utilities and renewable power businesses
- Selected by Venture Global to serve their Plaquemines LNG project in Louisiana through a reversal and expansion of a Texas Eastern lateral pipeline, subject to achieving a positive final investment decision on the LNG plant
- Brought the US$0.2 billion Stratton Ridge Texas Eastern mainline expansion into service
- Take-or-pay and/or requirements contract structure
- 8-20 year term with discounts for larger volumes and longer duration
- 10% spot capacity availability
- An increase in adjusted EBITDA primarily due to strong base operating performance and incremental contributions from new projects placed into service, partially offset by the absence of contributions from non-core assets sold in 2018. For further detail on business performance refer to Adjusted EBITDA by Segments below.
- Lower distributions to noncontrolling and redeemable noncontrolling interests following the completion of Enbridge's buy-in of the publicly held interest in its sponsored vehicles, which were completed in the fourth quarter of 2018.
- Higher equity distributions in excess of equity earnings from equity investments due to strong performance as well as new equity investments placed into service.
- Lower financing costs due to interest expense savings from the application of proceeds from last year's non-core asset sales to debt reduction, partially offset by incremental debt and hybrid securities issued over the same period.
- Lower maintenance capital due to timing of maintenance requirements and spend in 2019.
- Lower current taxes due to timing of recognition of newly enacted Canadian tax legislation coming into effect in the second half of 2019.
- Higher depreciation and amortization expense as a result of placing new assets into service, net of depreciation expense no longer recorded for assets which were classified as assets held for sale or sold during 2018.
- Lower financing costs due to interest expense savings from debt repayments since the second half of 2018, partially offset by incremental debt and hybrid securities issued over the same period.
- Higher income tax expense, in part due to higher earnings before tax and a higher effective income tax rate. The period-over-period increase in the effective income tax rate is partly due to the buy-in of the US Master Limited Partnerships (MLP), Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP, which results in the Company being taxed on 100% of the MLP earnings rather than the Company's proportionate share of their earnings.
- Lower earnings attributable to noncontrolling interests following the completion of Enbridge's buy-in of the publicly held interest in its sponsored vehicles, which were completed in separate transactions, in the fourth quarter of 2018.
- Mainline System EBITDA reflected higher throughput, driven by strong supply and continued optimizations of the system as well as a period-over-period increase in the IJT. However, these increases to EBITDA were more than offset by a lower foreign exchange rate on contracts used to hedge U.S. dollar denominated revenues from the Canadian portion of the Mainline System.
- Gulf Coast and Mid-Continent System growth was driven by higher volumes on Flanagan South and Seaway pipelines due to the redirection of volumes to the Gulf Coast resulting from PADD II refinery outages.
- Other increased primarily as a result of strong throughput on the Bakken Pipeline System.
- US Gas Transmission adjusted EBITDA decreased due to higher planned integrity expenditures that are expected to continue over the remainder of the year, partially offset by incremental contributions from new pipelines placed into service in late 2018, including Valley Crossing.
- Canadian Gas Transmission EBITDA period-over-period results primarily reflect the absence of contributions from the provincially regulated Canadian natural gas gathering and processing business which was sold on October 1, 2018. The sale of the remaining NEB regulated assets is expected to close in the second half of 2019.
- US Midstream adjusted EBITDA primarily reflects the absence of EBITDA from Midcoast Operating, L.P. which was sold on August 1, 2018.
- Other adjusted EBITDA growth is driven by contributions from the Big Foot Oil and Gas offshore pipelines which was placed into service during 2018.
- Increased earnings of $4 million resulting from colder weather in EGI's franchise areas in the second quarter of 2019 driving higher utilization relative to 2018, along with higher distribution charges primarily resulting from increases in distribution rates and customer base.
- The colder weather in the second quarter of 2019 when compared to the normal weather forecast embedded in rates, positively impacted EBITDA by approximately $19 million.
- Weaker wind resources primarily at US wind farms and weaker solar radiance at the Company's solar facilities.
- These impacts were partially offset by higher contributions from the Rampion Offshore Wind Project and stronger operating performance at certain Canadian wind farms.
- Higher EBITDA contributions from Energy Services crude operations due to the widening of certain location and quality differentials during the second half of 2018 and into the first quarter of 2019, which increased opportunities to generate profitable transportation margins that were realized during the first and second quarters of 2019.
- Higher operating and administrative costs in 2019 due to timing of the recovery of certain operating and administrative costs allocated to the business segments in 2018.
- Higher realized foreign exchange hedge settlement losses primarily due to higher notional amount of foreign currency derivatives, partially offset by a smaller unfavourable spread between the average exchange rate of $1.34 for the second quarter of 2019 (Q2 2018: $1.29) and the second quarter 2019 hedge rate of $1.24 (Q2 2018: $1.16).
- Priority access in Canada for contracted volume;
- Contract term up to 20 years;
- Toll discounts for longer terms and higher volumes.
- Robust, transparent engagement with all stakeholders including communities, tribes and customers;
- Comprehensive and predictable state permitting;
- Options to further shorten the timeline for the tunnel;
- Additional safeguards that can be implemented in the interim operation of the Straits crossing; and
- Protection of the environment, security of supply for consumers and the economy of Michigan.
- Line 5 continues to be a critical source of 540,000 barrels per day of propane and crude oil supply for Michigan and surrounding areas that make up the regional supply network for the State, producing transportation fuels and consumer goods, ranging from computers to clothing and cellphones.
- Line 5 serves an estimated 55 percent of the State's needs including approximately 65 percent of the propane used in the Upper Peninsula and Northern Michigan, for which no viable alternatives exist.
- Line 5 supplies Michigan and regional refineries that provide Michigan with various fuels that Michigan residents rely on in their day-to-day lives. Refineries served by Line 5 supply a large percentage of the aviation fuel at Detroit's Metropolitan Airport, an important contributor to the State's economy.
- According to the U.S. Department of Transportation, pipelines are the safest way to move energy. It would take 2,150 tanker trucks – 90 leaving the terminal every hour, 24 hours a day – or more than 800 rail cars each day to deliver the amount of energy carried on Line 5.
- There has never been a leak at the Straits and a 2017 hydro-test of the Straits pipelines involving Michigan agencies, The Pipeline Hazardous Materials Safety Administration (PHMSA) the Environmental Protection Agency and the U.S. Coast Guard validated their continuing fitness. [LINK TO REPORT]
- Safety measures include the use of an extra heavy-wall thickness pipe; a robust cathodic protection system to prevent external corrosion; anchor devices to counter the effects of water currents; operation of the pipes at very low pressure – approximately 10 percent of tested capability and less than 25 percent of maximum operating pressure – in order to provide a safety factor well above that typical of pipelines; and regular inspections such as sophisticated in-line inspection tools, divers, and remotely-operated vehicles to confirm the integrity of the crossing.
- In 2016, experts contracted by the Pipeline Hazardous Materials Safety Administration (PHMSA) reviewed 20 years of Line 5 inspection data. [LINK TO REPORT] They found that no locations required additional attention in the Straits of Mackinac and that our current inspection frequency is appropriate.
- The concrete-walled tunnel is to be placed approximately 100 feet below the lake bed, reducing the risk of a spill in the Straits to zero. Enbridge would pay for the construction and operation of the tunnel.
- A State-commissioned report, Alternatives Analysis for the Straits Pipelines, [LINK TO REPORT] concluded the risk of a release into the Great Lakes from a replacement pipeline built within such an underground tunnel would be "negligible" and "un-quantifiably low."
- The test, conducted to the same standards as when the Line was first built, confirms its continuing fitness.
- The Report's findings indicate there is no feasible alternative route for a new pipeline, and no better alternative mode of transporting the energy that Line 5 carries.
- Enbridge agrees to prepare a report assessing the replacement of the dual pipelines.
- Also agrees to six other actions for protecting Michigan's water, including safety enhancements at other Line 5 water crossings, and replacing the Line 5 segment at the St. Clair River with a horizontal directional drill below the riverbed.
- Finds that a tunnel is feasible.
- Also in June Enbridge releases several additional reports including on these topics:
- Prevention of anchor strikes;
- Assessing new technology for leak detection.
- Enbridge agrees to explore future agreements to construct an underground tunnel to replace the Straits section of Line 5.
- Enbridge agrees to construct a tunnel under the lakebed in the Straits to contain a replacement section of Line 5.
- GAAP earnings of $1,891 million or $0.94 per common share for the first quarter of 2019, compared to $445 million or $0.26 per common share in the first quarter of 2018, both including the impact of a number of unusual, non-recurring or non-operating factors
- Adjusted earnings was $1,640 million or $0.81 per common share for the first quarter of 2019, compared to $1,375 million or $0.82 per common share in the first quarter of 2018
- Adjusted earnings before interest, income tax and depreciation and amortization (EBITDA) was $3,769 million for the first quarter of 2019, compared to $3,406 million in the first quarter of 2018
- Cash Provided by Operating Activities was $2,176 million for the first quarter of 2019, compared to $3,194 million for the first quarter of 2018
- Distributable Cash Flow (DCF) was $2,758 million for the first quarter of 2019, compared to $2,312 million for the first quarter of 2018
- Reaffirmed financial guidance range for 2019 Distributable Cash Flow per Share of $4.30 to $4.60/share
- Progressed execution of Line 3 Replacement project: Canadian segment construction expected to be completed by end of May 2019; Minnesota Public Utilities Commission (MPUC) denied all petitions to reconsider its project approvals; obtained a new permitting timeline from Minnesota environmental permitting agencies; based on the new timeline, project in-service date targeted for the second half of 2020
- Announced today a successful open season supporting a $0.2 billion expansion of the Dawn-Parkway gas transmission system
- Announced plans to launch a binding open season in mid-July to secure firm transportation agreements on the Liquids Mainline System upon expiry of the Competitive Toll Settlement (CTS) agreement in June 2021
- Achieved a Debt:EBITDA metric of 4.7x on a trailing twelve month basis based on Management's calculation methodology, well within the Company's target leverage range of "4.5x to comfortably below 5.0x"
- Moody's upgraded Enbridge's senior unsecured debt rating from Baa3 to Baa2 while maintaining a positive outlook on the rating
- Completion of a $1.6 billion exchange of Enbridge Income Fund term debt for notes of Enbridge Inc.
- The amendment of certain covenants in the Enbridge Energy Partners, L.P. (EEP) and Spectra Energy Partners LP (SEP) trust indentures and entry into a "cross guarantee" arrangement with Enbridge Inc.
- The redemption of US$400 million of EEP junior subordinated notes
- The retirement/redemption of Westcoast Energy Inc. preferred shares and debt securities
- An increase in adjusted EBITDA primarily due to strong business performance across most business segments and incremental contributions from new projects placed into service. For further detail on business performance refer to Adjusted EBITDA by Segments below.
- Lower distributions to noncontrolling interest following the completion of Enbridge's buy-in of the publicly held interest in its sponsored vehicles, which were completed in separate transactions, in the fourth quarter of 2018.
- Higher equity distributions from equity investments due to strong performance as well as new equity investments placed into service.
- Higher financing costs resulting from incremental debt, preferred shares and hybrid securities issued since the first quarter of 2018, partially offset by interest expense savings from debt repayments made in the second half of 2018.
- Higher current tax, which in part reflected higher earnings before income tax generated from operating segments.
- Lower earnings attributable to noncontrolling interest following the completion of Enbridge's buy-in of the publicly held interest in its sponsored vehicles, which were completed in separate transactions, in the fourth quarter of 2018.
- Higher depreciation and amortization expense as a result of placing new assets into service, net of depreciation expense no longer recorded for assets which were classified as assets held for sale or sold during 2018.
- Higher income tax expense, in part due to higher earnings before tax and a higher effective income tax rate. The period-over-period increase in the effective income tax rate is partly due to the buy-in of the US Master Limited Partnerships (MLP), Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP, which results in the Company being taxed on 100% of the MLP earnings rather than the Company's proportionate share of their earnings.
- Mainline System EBITDA contribution increased primarily due to higher throughput, driven by strong supply and continued optimizations of the system. Also contributing to higher EBITDA was a period-over-period increase in the International Joint Tariff. The increase was partially offset by a lower foreign exchange rate on contracts used to hedge United States dollar denominated revenues from the Canadian portion of the Mainline System.
- Regional Oil Sands System contribution increased in part due to incremental EBITDA generated from the AOC Lateral Acquisition, which closed in early 2019.
- Gulf Coast and Mid-Continent System growth was driven by higher spot volumes on Flanagan South and Seaway pipelines due to the redirection of volumes to the Gulf Coast resulting from refinery outages.
- Other increased primarily as a result of strong throughput on the Bakken Pipeline System.
- US Gas Transmission adjusted EBITDA benefited from incremental contributions from new pipelines placed into service in late 2018, including Valley Crossing.
- Canadian Gas Transmission reflected the absence of EBITDA from the provincially regulated Canadian natural gas gathering and processing business which was sold on October 1, 2018. The sale of the remaining NEB regulated assets is expected to close by mid-2019.
- US Midstream adjusted EBITDA reflected the absence of EBITDA from Midcoast Operating, L.P. which was sold on August 1, 2018.
- Other adjusted EBITDA growth was driven by contributions from the Big Foot Oil and Gas offshore pipelines.
- Colder weather in EGI's franchise areas in the first quarter of 2019 driving higher utilization relative to 2018, along with higher distribution charges primarily resulting from increases in distribution rates and customer base, and absence of earnings sharing which was recorded in the first quarter of 2018 under EGD's previous incentive rate structure.
- The colder weather in the first quarter of 2019 when compared to the normal weather forecast embedded in rates, positively impacted EBITDA by approximately $33 million.
- Weaker wind resources primarily at US wind farms.
- Absence of a positive arbitration settlement of $11 million from a warranty claim that occurred in the first quarter of 2018.
- These impacts were partially offset by a full quarter of EBITDA contribution from the Rampion Offshore Wind Project and stronger operating performance at certain Canadian wind farms.
- Higher EBITDA contributions from Energy Services crude operations due to the widening of certain location and quality differentials during the second half of 2018, which increased opportunities to generate profitable margins that were realized during the first quarter of 2019.
- Lower operating and administrative costs in 2019, compounded by the timing of the recovery of certain operating and administrative costs allocated to the business segments in 2018, which were more heavily weighted to the second half.
- Higher realized foreign exchange hedge settlement losses due to higher hedged amounts and a stronger United States dollar in the first quarter of 2019 ($1.33) when compared to the first quarter of 2018 ($1.26), which more than offset the more favourable hedge rate in the first quarter of 2019 ($1.24) relative to the first quarter of 2018 ($1.16).
- Reducing the chance of a release of product to virtually zero, by placing the pipeline in a tunnel with one-foot-thick concrete walls.
- Preventing an anchor strike from a ship in the Straits of Mackinac by placing the tunneled pipeline 100 feet underground.
- Ensuring Michigan will continue to receive the economic benefits from Line 5.
- GAAP earnings of $1,089 million or $0.60 per common share for the fourth quarter of 2018 and $2,515 million or $1.46 per common share for the full year 2018, both including the impact of a number of unusual, non-recurring or non-operating factors
- Adjusted earnings were $1,166 million or $0.65 per common share for the fourth quarter of 2018 and $4,568 million or $2.65 per common share for the full year 2018, compared to $1,013 million or $0.61 per common share in the fourth quarter of 2017 and $2,982 million or $1.96 per common share for the full year 2017
- Adjusted earnings before interest, income tax and depreciation and amortization (EBITDA) were $3,320 million for the fourth quarter of 2018 and $12,849 million for the full year, compared to $2,963 million in the fourth quarter of 2017 and $10,317 million for the full year 2017
- Cash Provided by Operating Activities was $2,503 million for the fourth quarter of 2018 and $10,502 million for the full year 2018, compared to $1,341 million for the fourth quarter of 2017 and $6,658 million for the full year 2017
- Distributable Cash Flow (DCF) was $1,863 million for the fourth quarter and $7,618 million for the full year 2018, compared to $1,741 million for the fourth quarter of 2017 and $5,614 million for the full year 2017
- Reaffirmed financial guidance for 2019 and 2020, with the midpoint of the DCF per share guidance range of $4.45 per share and $5.00 per share respectively
- Increased the dividend by 10% for 2019 and reaffirmed expected dividend growth of 10% in 2020; guided to a longer term 5-7% DCF per share CAGR post-2020
- Brought $7 billion of new projects into service in 2018, including the US$1.5 billion NEXUS/TEAL gas pipeline projects in October and the US$1.6 billion Valley Crossing gas pipeline project in November
- Reached significant milestones on the Line 3 Replacement Project, including: Regulatory approval by the Minnesota Public Utilities Commission (MPUC); initiated Federal and Minnesota state permitting process, and made significant progress on construction in Canada
- Announced $1.8 billion of secured growth projects in the fourth quarter across both the natural gas transmission and liquids pipelines businesses
- Announced an additional $0.3 billion of secured growth capital projects consisting of a regulated electricity transmission line in Ontario and a long-term contracted pipeline adjacent to the Nexus Pipeline
- Amalgamated the Company's Ontario based natural gas utilities effective January 1, 2019, following approval of an incentive based regulatory framework by the Ontario Energy Board
- Simplified the Company's corporate structure with the buy-in of the public interest of Enbridge's four sponsored vehicles
- Implemented changes to the Company's debt funding structure through a series of actions to reduce structural subordination, enhancing the credit profile of the parent corporation and reducing the cost of debt capital
- Announced $7.8 billion of non-core asset sales, $5.7 billion of which have closed; proceeds used to accelerate planned deleveraging and strengthen balance sheet
- Suspended the Dividend Reinvestment Program (DRIP) effective with the December 1, 2018 dividend payment, moving Enbridge to a fully self-funded growth model
- On January 25, 2019, Moody's upgraded Enbridge Inc.'s senior unsecured debt rating from Baa3 to Baa2 with a positive outlook
- Gray Oak Pipeline - Enbridge will invest US$600 million for a 22.75% interest in the Gray Oak Liquids Pipeline, which will deliver light crude oil from the Permian Basin to Corpus Christi and other markets. Gray Oak, currently under construction, is expected to begin service in late 2019, contribute to the post-2020 growth outlook and is an important component of Enbridge's broader emerging U.S. Gulf Coast liquids infrastructure strategy.
- Cheecham Terminal & Pipeline - Enbridge has acquired existing liquids pipeline and terminal assets connected with Athabasca Oil Corporation's Leismer SAGD oil sands assets for $265 million. The assets are synergistic as they are connected with Enbridge's existing terminal and pipeline assets in the region.
- Gas Transmission Expansions - Enbridge will invest approximately $800 million on four Gas Transmission expansion projects coming into service in the 2020-23 timeframe. The Vito Offshore Pipeline will provide service to Shell's offshore Gulf Coast operations. The Cameron Lateral expansion project will connect Texas Eastern with Gulf Coast LNG export facilities. In addition, the Gulfstream and Sabal Trail Pipelines into Florida will both undergo additional expansion (Phase VI and Phases 2 & 3 respectively). All of these expansion projects are underpinned by long-term take-or-pay commercial arrangements.
- East-West Tie Transmission Project (EWT) - Enbridge has partnered with an industry leading transmission developer to construct a transmission line that will add capacity between Wawa and Thunder Bay to support electricity supply to Northeast Ontario. The EWT project recently received the exclusive right from the Province of Ontario to proceed to construct and also received the leave to construct approval from the Ontario Energy Board in February 2019. Enbridge currently has a 25% equity interest in EWT and plans to invest approximately $0.2 billion for its share of the project. The project is supported by a cost of service framework and is expected to be in service in late 2021.
- Generation Pipeline - Enbridge, through its investment in Nexus, announced an attractive investment to acquire Generation Pipeline, a 355 million cubic feet a day pipeline that will interconnect with Nexus. Enbridge's share of the acquisition is approximately US$0.1 billion and the pipeline is fully contracted with long term arrangements. This acquisition offers additional opportunity to expand the Company's footprint to supply natural gas to power generation and industrial customers in Northern Ohio.
- Increased ownership in its core businesses and further enhancement of its industry-leading, low-risk profile
- Significant advancement of Enbridge's strategy to simplify and streamline its corporate structure which further increases the transparency of its strong cash generating assets
- Higher retention of cash generated from the assets, which will support continued strong dividend coverage and self-funded growth
- An improved Enbridge credit profile due to the elimination of sponsored vehicle public distributions as well as the reduction of the structural subordination of Enbridge's parent company debt
- Significant benefits to Enbridge's post 2020 outlook primarily due to tax optimization synergies
- Completion of a debt exchange on December 21, 2018 whereby $1.6 billion of term debt securities issued by Enbridge Income Fund (the Fund) were exchanged for notes of Enbridge Inc. with identical coupons and terms to maturity; the Company intends to discontinue external debt financing by the Fund
- The amendment of certain covenants in the EEP and SEP trust indentures and entry into a subsidiary guarantee agreement on January 22, 2019 to implement a "cross guarantee" arrangement whereby remaining outstanding senior term debt obligations of EEP and SEP are guaranteed by Enbridge Inc. and each of SEP and EEP correspondingly guarantee Enbridge Inc.'s senior term debt obligations; the Company intends to discontinue external debt financing by both EEP and SEP
- The redemption of US$400 million of EEP junior subordinated notes which is expected to be completed by the end of February 2019
- Focusing on the safety, operational reliability and environmental performance of the systems and ensuring cost effective and efficient transportation for our customers;
- Ensuring strong execution of the secured capital program that will drive DCF per share growth through 2020;
- Concentrating on growth of core businesses through extensions and expansions of the liquids pipeline, natural gas transmission and gas utility franchises to extend growth beyond 2020;
- Maintaining a strong financial position and flexibility as secured growth projects are brought on line;
- Continuing to exercise rigorous capital allocation to maximize shareholder value
- An increase in adjusted EBITDA primarily due to strong business performance and incremental contribution from new projects placed into service across many business segments since the fourth quarter of last year, partially offset by the absence of EBITDA from the assets sold in the Gas Transmission and Midstream segment in 2018. For further detail on business performance refer to Adjusted EBITDA by Segments.
- Higher maintenance capital expenditures primarily within Gas Transmission and Midstream reflecting a shift in the timing of maintenance capital to the fourth quarter, partially offset by the absence of maintenance capital expenditures from portions of the Canadian and U.S. gas processing businesses that were sold in the second half of 2018.
- Higher current tax, which in part reflected higher earnings before income tax generated from operating segments.
- Lower equity distributions in excess of equity earnings due to higher equity earnings from stronger underlying performance that were not matched by a corresponding increase in cash distributions during the quarter, as well as an absence of equity distributions from an asset sold in 2018.
- An increase in adjusted EBITDA primarily due to strong business performance and incremental contribution from new projects placed into service across many business segments since the fourth quarter of last year. For further detail on business performance refer to Adjusted EBITDA by Segments.
- Lower earnings attributable to noncontrolling interest following the completion of Enbridge's buy-in of the publicly held interest in its sponsored vehicles, which were completed in separate transactions, in the fourth quarter of 2018.
- Higher depreciation and amortization expense as a result of placing new assets into service, partially offset by ceasing to record depreciation expense for assets which were classified as assets held for sale or sold during 2018.
- Higher income tax expense, in part due to higher earnings before tax.
- Canadian Mainline contribution increased primarily due to strong throughput, in part facilitated by continued optimization of the system in order to support growth in oilsands production. Also driving an increase in EBITDA contributions were a higher Canadian Mainline IJT residual toll, as well as higher foreign exchange hedge rates used to convert United States dollar denominated Canadian Mainline IJT revenues.
- Lakehead System also benefited from higher throughput, however, this was more than offset by a decrease in the Lakehead System Local Toll primarily driven by the reduction in the corporate federal income tax rate in the U.S., reducing the cost of service revenue requirement embedded in tolls applicable to facilities expansions undertaken in the past.
- Regional Oil Sands System growth was driven by contributions from new projects placed into service in late 2017, in particular the Wood Buffalo Extension Pipeline.
- Other increased primarily as a result of increased throughput on the Bakken Pipeline System.
- Liquids Pipelines adjusted EBITDA is reported on a Canadian dollar basis. Adjusted EBITDA generated from United States dollar denominated businesses were translated at a stronger United States dollar to Canadian dollar exchange rate in the fourth quarter of 2018 (C$1.32/$US) when compared to the corresponding 2017 period (C$1.27/$US). A portion of the United States dollar earnings are hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
- Full year of contributions from assets placed into service in 2017 including the Wood Buffalo Extension Pipeline, Athabasca Pipeline Twin and the Norlite Pipeline System, as well as the acquisition of a minority interest in the Bakken Pipeline System;
- Increased transportation revenues resulting from an increase in the level of committed take-or-pay volumes and higher spot volumes on Flanagan South Pipeline driven by strong demand in the United States Gulf Coast.
- Full year of contributions from the Express-Platte System which was acquired as part of the Merger Transaction.
- US Gas Transmission adjusted EBITDA reflected incremental contributions from new capital projects placed into service in 2018, including NEXUS and Valley Crossing which were placed into service midway through the fourth quarter, offset by the timing of operating costs which were more heavily weighted in the fourth quarter in 2018 than they were in 2017.
- Canadian Gas Transmission reflected the absence of EBITDA from the provincially regulated Canadian natural gas gathering and processing business which was sold on October 1, 2018. The sale of the remaining NEB regulated assets is expected to close by mid-2019. The decrease in EBITDA was partially offset by new assets placed into service in 2018, including High Pine and Wyndwood system expansions, and operational cost efficiencies.
- US Midstream adjusted EBITDA reflected the absence of EBITDA from Midcoast Operating, L.P. which was sold on August 1, 2018.
- Gas Transmission and Midstream adjusted EBITDA is reported on a Canadian dollar basis. Adjusted EBITDA generated from United States dollar denominated businesses were translated at a stronger United States dollar to Canadian dollar exchange rate in the fourth quarter of 2018 (C$1.32/$US) when compared to the corresponding 2017 period (C$1.27/$US). A portion of the United States dollar earnings are hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
- Full year of contributions from the gas transmission assets acquired as part of the Merger Transaction.
- US Gas Transmission adjusted EBITDA reflected incremental contributions from new capital projects placed into service in 2017 and 2018, including Sabal Trail, expansions on Access South and Adair Southwest, Gulf Market Expansion and Atlantic Bridge, partially offset by higher operating costs.
- Alliance Pipeline benefitted from higher seasonal firm and interruptible revenues resulting from wider basis differentials.
- US Midstream reflected higher throughput and higher commodity prices and fractionation margins at Aux Sable and DCP Midstream, LLC (DCP Midstream).
- Higher earnings from expansion projects, and higher distribution charges primarily resulting from increases in rate base and customer base, offset by higher earnings sharing at EGD, which reflected higher earnings achieved in 2018.
- Full year of contributions from Union Gas acquired as part of the Merger Transaction.
- Colder weather in the Company's utility franchise area in 2018 driving higher utilization compared with 2017.
- Lower wind resources across the onshore wind portfolio.
- Minor operating issues on certain wind farms, leading to lower than expected production.
- Partially offsetting the decrease in EBITDA, was contributions from the Rampion Offshore wind project which reached full operating capacity during the second quarter of 2018.
- Higher wind resources and lower operating costs across the wind farm portfolio, primarily in the first nine months of 2018.
- Contributions from the Rampion Offshore wind project which reached full operating capacity during the second quarter of 2018.
- A positive arbitration settlement of $11 million from a warranty claim.
- The timing of the annual recovery of certain operating and administrative costs allocated to the business segments, which were more heavily weighted to the fourth quarter.
- Higher realized foreign exchange hedge settlement losses in the fourth quarter of 2018 was due to a less favourable hedge rate combined with a strengthening United States dollar when compared to the fourth quarter of 2017.
- Synergies achieved on the integration of corporate functions, partially offset by higher realized foreign exchange hedge settlement losses; the increased settlement loss are primarily from a greater average notional principal amount of foreign currency hedges reflecting the hedging of a greater amount of U.S. dollar denominated earnings and cashflows following the close of the Merger Transaction.
- Enbridge 4.10% Medium Term Notes, due February 22, 2019 issued in exchange for Fund 4.10% Medium Term Notes, Series 6 due February 22, 2019;
- Enbridge 4.85% Medium Term Notes, due November 12, 2020 issued in exchange for Fund 4.85% Medium Term Notes, Series 4 due November 12, 2020;
- Enbridge 4.85% Medium Term Notes, due February 22, 2022 issued in exchange for Fund 4.85% Medium Term Notes, Series 7 due February 22, 2022;
- Enbridge 3.94% Medium Term Notes, due January 13, 2023 issued in exchange for Fund 3.94% Medium Term Notes, Series 10 due January 13, 2023;
- Enbridge 3.95% Medium Term Notes, due November 19, 2024 issued in exchange for Fund 3.95% Medium Term Notes, Series 12 due November 19, 2024;
- Enbridge 4.87% Medium Term Notes, due November 21, 2044 issued in exchange for Fund 4.87% Medium Term Notes, Series 13 due November 21, 2044.
- A 10% increase in the Company's common share dividend to $2.95 annually, effective the first quarter of 2019.
- Re-affirmation of the Company's three-year 2018 – 2020 distributable cash flow (DCF) per share guidance, with mid-points of $4.45 and $5.00 for 2019 and 2020, respectively.
- Positioning of the Liquids Pipelines Mainline system for the future through a long-term contract and tolling offering as well as through a variety of throughput optimizations.
- Announcement of $1.8B of newly secured growth capital in the Liquids Pipelines and Gas Transmission businesses.
- A 5%-7% post-2020 annual distributable cash flow per share growth target based on a fully self-funded model requiring no additional common equity.
- Further simplification of the Company's debt funding structure and a strategy to reduce structural subordination and further enhance the consolidated credit profile.
- Focusing on the safety, operational reliability and environmental performance of our systems and ensuring cost effective and efficient transportation for our customers;
- Ensuring strong execution of our secured capital program that will drive DCF per share growth through 2020;
- Concentrating on growth of core businesses through extensions and expansions of our liquids pipeline, natural gas transmission and gas utility franchises to extend growth beyond 2020;
- Further strengthening our financial position and flexibility as secured growth projects are brought on line;
- Continuing to exercise rigorous capital allocation to maximize value as we move to a significant positive free cash flow position (net of dividends and maintenance spending) in 2020.
- Gray Oak Pipeline – Enbridge will invest US$600 million for a 22.75% interest in the Gray Oak Liquids Pipeline, which will deliver light crude oil from the Permian Basin to Corpus Christi and other markets. Gray Oak, currently under construction, is expected to begin service in late 2019, contribute to the post-2020 growth outlook and is an important component of Enbridge's broader emerging U.S. Gulf Coast liquids infrastructure strategy.
- Cheecham Terminal & Pipeline – Enbridge is acquiring existing liquids pipeline and terminal assets connected with Athabasca Oil Corporation's Leismer SAGD oil sands assets for $265 million. The assets are synergistic as they are connected with Enbridge's existing terminal and pipeline assets in the region.
- Gas Transmission Expansions – Enbridge will invest approximately $800 million on four Gas Transmission expansion projects coming into service in the 2020-23 timeframe. The Vito Offshore Pipelines will provide service to Shell's offshore Gulf Coast operations. The Cameron Lateral expansion project will connect Texas Eastern with Gulf Coast LNG export facilities. In addition, the Gulfstream as well as the Sabal Trail Pipelines into Florida will both undergo additional expansion (Phase VI and Phases 2 & 3 respectively). All of these expansion projects are being constructed under long-term take-or-pay commercial arrangements.
- Fund Noteholders will receive Enbridge Notes that will rank pari passu with Enbridge's other senior unsecured public debt securities and have the benefit of certain financial covenants not contained in the existing Fund Note trust indenture.
- Enbridge, the largest energy infrastructure company in North America, is more diversified than the Fund, across business lines, energy basins and regulatory jurisdictions.
- Enbridge provides superior financial strength with larger revenue and cash flow generated from its diversified portfolio of low risk infrastructure assets.
- Enbridge's current credit ratings are better than those of the Fund.
- Holders of Enbridge Notes may benefit from Enbridge's ongoing efforts to further strengthen its consolidated credit profile through deleveraging, simplification of its corporate funding structure and reduction of structural subordination.
- Enbridge is one of the largest and most active debt issuers in Canada - Fund Noteholders will benefit from the enhanced trading liquidity associated with owning Enbridge Notes.
- If Fund Noteholders representing not less than 66 2/3% of the principal amount of all outstanding Fund Notes deliver valid consents and proxies voting FOR the approval of the Note Exchange Resolution by the consent and proxy cut-off time, the Note Exchange Resolution will be passed and no meeting will be held (the Consent Solicitation).
- If the Consent Solicitation threshold is not met, the Fund will hold a meeting of Fund Noteholders (the Meeting) on Monday, December 10, 2018 at noon (ET) to approve the Note Exchange Resolution, which requires 66 2/3% of the principal amount of outstanding Fund Notes present in person or by proxy at the Meeting to vote in favour of the Note Exchange Resolution. The quorum for the Meeting requires at least 25% of the principal amount of the outstanding Fund Notes to be present at the Meeting, in person or by proxy.
- 4.85% Medium Term Notes, Series 4 due November 12, 2020
- 4.10% Medium Term Notes, Series 6 due February 22, 2019
- 4.85% Medium Term Notes, Series 7 due February 22, 2022
- 3.94% Medium Term Notes, Series 10 due January 13, 2023
- 3.95% Medium Term Notes, Series 12 due November 19, 2024
- 4.87% Medium Term Notes, Series 13 due November 21, 2044
- GAAP loss of $90 million or $0.05 loss per common share for the third quarter, compared to earnings of $765 million or $0.47 earnings per common share in the third quarter of 2017, both including the impact of a number of unusual, non-recurring or non-operating factors
- Adjusted earnings were $933 million or $0.55 per common share for the third quarter, compared to $632 million or $0.39 per common share in the third quarter of 2017
- Adjusted earnings before interest, income tax and depreciation and amortization (EBITDA) were $2,958 million for the third quarter, compared to $2,586 million in the third quarter of 2017
- Cash Provided by Operating Activities was $1,461 million for the third quarter, compared to $1,568 million for the third quarter of 2017
- Distributable Cash Flow (DCF) was $1,585 million for the third quarter, compared to $1,334 million for the third quarter of 2017
- On track to achieve financial guidance for 2018, with outlook for DCF per share expected to be in the upper half of the guidance range of $4.15 to $4.45 per share
- Bringing $7 billion of new projects into service in 2018, including the US$1.3 billion NEXUS and US$0.2 billion TEAL gas pipeline projects that began service in October and the US$1.6 billion Valley Crossing gas pipeline project that is now complete and in service for November
- Continuing progress on the Line 3 Replacement Project: Agreement with the Fond Du Lac Tribe in Minnesota on final routing; Minnesota Public Utilities Commission (MPUC) Written Orders for the Certificate of Need and Route Permit received; and construction progressing in Canada
- Proceeding with the amalgamation of the Company's Ontario based natural gas utilities following approval by the Ontario Energy Board (OEB)
- Receipt of $5.7 billion of proceeds from non-core asset sales which will accelerate de-leveraging, provide increased financial flexibility and further focus the Company on its low-risk pipeline and utility businesses; remaining $1.8 billion of announced sales proceeds expected in first half of 2019
- Reached agreements with the Independent Committees of the Company's sponsored vehicles for the acquisition of all of the outstanding equity securities not already beneficially owned by Enbridge; targeting all closings by the end of the fourth quarter
- Suspended the Dividend Reinvestment Program (DRIP) effective with the December 1, 2018 dividend payment; no additional equity capital required to fund the current $22 billion secured growth program
- Responded quickly to restore partial transportation service following a rupture on the BC Pipeline T-South natural gas transmission system; continuing work to safely restore the system to full capacity
- Increased ownership in its core businesses and further enhancement of its industry-leading, low-risk profile
- Significant advancement of Enbridge's strategy to simplify and streamline its corporate structure which further increases the transparency of its strong cash generating assets
- Higher retention of cash generated from the assets, which will support continued strong dividend coverage and self-funded growth
- An improved Enbridge credit profile due to the elimination of sponsored vehicle public distributions, as well as opportunities to minimize the structural subordination of Enbridge's parent company debt
- Significant benefits to Enbridge's post 2020 outlook primarily due to tax optimization synergies
- An increase in adjusted EBITDA primarily due to strong business performance and incremental contribution from new projects placed into service across many business segments since the third quarter of last year. For further detail on business performance refer to Adjusted EBITDA by Segments.
- Lower maintenance capital primarily within Gas Transmission and Midstream reflected the completion of a specific maintenance program in 2017.
- Higher equity distributions from equity investments due to improved performance as well as new equity investments placed into service.
- Higher distributions to redeemable noncontrolling interests in Enbridge Income Fund, Enbridge Commercial Trust, Enbridge Income Partners LP and the subsidiaries and investees of Enbridge Income Partners LP (the Fund Group) as a result of increased public ownership in the Fund Group and an increase in the Fund Group distribution per unit in January 2018.
- Higher distributions to noncontrolling interests in SEP due to increases in the distribution per unit each quarter.
- Higher current tax, which reflected higher earnings before income tax generated from operating segments.
- Higher financing costs resulting from incremental debt, preferred shares and hybrid securities issued to fund the Company's growth program.
- Lower depreciation and amortization expense as a result of ceasing to record depreciation expense for assets which were classified as assets held for sale or were sold during the third quarter of 2018.
- Higher financing costs resulting from incremental debt, preferred shares and hybrid securities issued to fund the Company's growth program.
- Higher income tax expense due to higher earnings before tax.
- Higher earnings attributable to redeemable noncontrolling interests reflecting stronger performance from the underlying businesses owned through sponsored vehicles.
- Canadian Mainline contribution increased primarily due to higher throughput, in part facilitated by capacity optimization initiatives enabled in late 2017 and higher supply. Also driving an increase in EBITDA contributions were a higher Canadian Mainline IJT residual toll, as well as higher foreign exchange hedge rates used to convert United States dollar denominated Canadian Mainline IJT revenues.
- Lakehead System benefited from higher throughput based on the same factors noted above, which more than offset a decrease in the Lakehead Local Toll primarily driven by the reduction in the corporate federal income tax rate in the U.S.
- Regional Oil Sands System growth was driven by contributions from new projects placed into service in 2017, in particular the Wood Buffalo Extension Pipeline.
- Other increased primarily as a result of incremental throughput on the Bakken Pipeline System.
- Liquids Pipelines adjusted EBITDA is reported on a Canadian dollar basis. Adjusted EBITDA generated from United States dollar denominated businesses were translated at a stronger United States dollar to Canadian dollar exchange rate in the third quarter of 2018 (C$1.31/$US) when compared to the corresponding 2017 period (C$1.25/$US). A portion of the United States dollar earnings are hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
- US Gas Transmission adjusted EBITDA reflected incremental contributions from new capital projects placed into service in 2017 and the first nine months of 2018, including Sabal Trail, expansions on Access South and Adair Southwest, Gulf Market Expansion and Atlantic Bridge, partially offset by higher operating costs.
- Canadian Gas Transmission & Midstream growth reflected new assets placed into service including High Pine and Wyndwood and further benefited from operational cost efficiencies.
- Alliance Pipeline increased due to favorable seasonal firm and interruptible revenues driven by strong demand for capacity as a result of wider AECO-Chicago basis differentials.
- US Midstream benefited from increased throughput and higher commodity prices and fractionation margins at Aux Sable and DCP Midstream, LLC (DCP Midstream), partially offset by an absence of EBITDA from Midcoast Operating, L.P. which was sold on August 1, 2018.
- Gas Transmission and Midstream adjusted EBITDA is reported on a Canadian dollar basis. Adjusted EBITDA generated from United States dollar denominated businesses were translated at a stronger United States dollar to Canadian dollar exchange rate in the third quarter of 2018 (C$1.31/$US) when compared to the corresponding 2017 period (C$1.25/$US). A portion of the United States dollar earnings are hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
- Higher EBITDA at EGD and Union Gas in the third quarter of 2018 due to higher distribution charges resulting from increases in rate base, as well as customer growth.
- Incremental contributions from expansion projects placed into service at Union Gas in 2017.
- Higher wind resources on the Canadian wind farm portfolio.
- Lower operating costs at Canadian and United States wind farms.
- Partially offset by minor operating issues on certain wind farms, driving lower than expected production.
- Lower recovery of operating and administrative costs recovered from the business units. Third quarter 2017 reflected an over-recovery of business unit costs, which was later rectified in the fourth quarter of 2017.
- Higher realized foreign exchange hedge settlement loss in the third quarter of 2018 was due to a less favourable hedge rate combined with a strengthening United States dollar when compared to the third quarter of 2017.
- Direct ownership in the largest energy infrastructure company in North America comprised of premium liquids transportation, natural gas transmission and natural gas distribution utility franchises that generate diverse, safe and reliable cash flows
- A secured growth profile which underpins expected 10% annual dividend growth through 2020 with substantially enhanced dividend coverage compared to EEP standalone
- A diverse opportunity set for continued growth beyond 2020 that is supported by a strong cost of capital
- A stronger balance sheet and superior credit profile
- Reduction in risks related to continued uncertainty and potential unfavorable changes applied to MLPs related to the revised FERC tax allowance policies
- Increased opportunity for further meaningful capital appreciation as Enbridge advances its strategic priorities, including simplification of the Enbridge corporate structure, improved financial position and organic growth projects not currently available to EEP shareholders
- Enhanced trading liquidity
- Increased ownership in its core businesses and further enhancement of its industry-leading, low-risk profile
- Significant advancement of Enbridge's strategy to simplify and streamline its corporate structure which further increases the transparency of its strong cash generating assets
- Higher retention of cash generated from the EEP assets, which will support continued strong dividend coverage and self-funded growth
- An improved Enbridge credit profile due to the elimination of EEP public distributions, as well as opportunities to minimize the structural subordination of Enbridge debt
- Significant benefits to Enbridge's post 2020 outlook primarily due to tax optimization synergies
- Reduction in risks related to uncertainty and potential unfavorable changes associated with regulatory tax policies applied to MLPs and incremental Enbridge support required by EEP in difficult capital markets
- No change to consolidated EBITDA following completion of the EEP and EEQ buy-in transactions since the assets held by EEP and EEQ are already managed and operated by Enbridge's U.S. subsidiaries and consolidated for accounting purposes by Enbridge
- Direct ownership in the largest energy infrastructure company in North America comprised of premium liquids transportation, natural gas transmission and natural gas distribution utility franchises that generate diverse, safe and reliable cash flows
- A strong expected 10% annual dividend growth rate through 2020 with substantially enhanced dividend coverage through a higher level of DCF per share compared to ENF standalone
- A diverse opportunity set for anticipated continued growth beyond 2020 that is supported by a strong cost of capital
- Increased opportunity for further meaningful capital appreciation as Enbridge advances its strategic priorities, including simplification of the Enbridge corporate structure, improved financial position and organic growth projects not currently available to ENF shareholders
- Enhanced trading liquidity and investment simplicity
- Automatic tax deferral on substantially all of the gain or ability for Canadian ENF shareholders to elect a full tax deferral
- Increased ownership in its core businesses and further enhancement of its industry-leading growth and low-risk business profile
- Significant advancement of Enbridge's strategy to simplify and streamline its corporate structure which further increases the transparency of its strong cash generating assets
- Higher retention of cash generated from the ENF assets, which will support continued strong dividend coverage and self-funded growth
- An improved Enbridge credit profile due to the elimination of Fund distributions to ENF which are ultimately paid to the public, as well as opportunities to minimize the structural subordination of Enbridge debt
- Significant benefits to Enbridge's post-2020 DCF outlook primarily due to tax optimization synergies
- No change to consolidated EBITDA following completion of the Arrangement since the assets indirectly held by ENF are already managed and operated by Enbridge and consolidated for accounting purposes by Enbridge
- Direct ownership in the largest energy infrastructure company in North America comprised of premium liquids transportation, natural gas transmission and natural gas distribution utility franchises that generate diverse, safe and reliable cash flows
- A secured growth profile which underpins expected 10% annual dividend growth through 2020 with substantially enhanced dividend coverage
- A more effective cost of capital to finance growth
- A stronger balance sheet and superior credit profile
- Reduction in risks related to continued uncertainty and potential unfavorable changes applied to MLPs related to the revised Federal Energy Regulatory Commission (FERC) tax policies
- Increased opportunity for further meaningful capital appreciation as Enbridge advances its strategic priorities
- Enhanced trading liquidity
- Significant advancement of Enbridge's strategy to simplify and streamline its corporate structure which further increases the transparency of its strong cash generating assets
- An expected neutral impact on Enbridge's three-year financial guidance through 2020 and positive benefits to Enbridge's post-2020 outlook primarily due to tax and other financial synergies
- Increasing ownership in its core businesses and further enhancing its industry-leading, low-risk profile
- An improved Enbridge credit profile due to the elimination of SEP public distributions, higher retention of cash to support self-funded growth and opportunities to minimize the structural subordination of Enbridge debt
- Reduction in risks related to uncertainty and potential unfavorable changes associated with regulatory tax policies applied to MLPs and potential incremental Enbridge support required by SEP in difficult capital markets
- No change to consolidated EBITDA following completion of the merger since the assets held by SEP are already managed and operated by Enbridge's U.S. subsidiaries and consolidated for accounting purposes by Enbridge
- GAAP earnings were $1,071 million or $0.63 per common share for the second quarter, compared to $919 million or $0.56 per common share in the second quarter of 2017, both including the impact of a number of unusual, non-recurring or non-operating factors
- Adjusted earnings were $1,094 million or $0.65 per common share for the second quarter, compared to $662 million or $0.41 per common share in the second quarter of 2017
- Adjusted earnings before interest, income tax and depreciation and amortization (EBITDA) were $3,165 million for the second quarter, compared to $2,581 million in the second quarter of 2017
- Cash Provided by Operating Activities was $3,344 million for the second quarter, compared to $1,971 million for the second quarter of 2017
- Distributable Cash Flow (DCF) was $1,858 million for the second quarter, compared to $1,324 million for the second quarter of 2017
- On track to achieve financial guidance for 2018, with outlook for DCF per share expected to be in the upper half of the guidance range of $4.15 to $4.45 per share
- Continued strong operational performance across all business segments, including another quarter of record average throughput on the Liquids Mainline System
- Approximately $7 billion of new projects on track to come into service in 2018, $1.6 billion of which have been brought into service year to date, including the Rampion U.K. offshore wind farm which had all turbines operational in the second quarter
- Minnesota Public Utilities Commission (MPUC) voted in favor of the issuance of the Certificate of Need and Route Permit for the Line 3 Replacement Project; construction well underway in Canada and is now complete in Wisconsin
- Agreements announced to sell $7.5 billion of non-core assets, significantly above the Company's original target of $3 billion for 2018, which will accelerate de-leveraging, provide increased financial flexibility and further focus the Company on its low-risk pipeline and utility businesses
- Proposals to the Boards of Enbridge's Sponsored Vehicles to acquire, in separate combination transactions, all of the outstanding equity securities not already beneficially owned by Enbridge
- An increase in adjusted EBITDA primarily due to strong business performance and incremental contribution from new projects placed into service across many business segments since the second quarter of last year. For further detail on business performance refer to Adjusted EBITDA by Segments.
- Lower maintenance capital due to the timing of maintenance requirements later in 2018 as well as higher spending in Liquids Pipelines and Gas Transmission and Midstream in 2017 on specific program spending that has now ended. The full year maintenance capital spending forecast remains unchanged.
- Higher distributions from equity investments as a result of new equity investments placed into service during or after second quarter of 2017.
- Higher distributions to redeemable noncontrolling interests in Enbridge Income Fund, Enbridge Commercial Trust, Enbridge Income Partners LP and the subsidiaries and investees of Enbridge Income Partners LP (the Fund Group) as a result of increased public ownership in the Fund Group and an increase in the Fund Group distribution per unit in January 2018.
- Higher distributions to noncontrolling interests in Spectra Energy Partners, LP due to increases in the distribution per unit each quarter.
- Higher financing costs resulting from incremental debt, preferred shares and hybrid securities issued to fund the Company's growth program.
- Lower depreciation and amortization expense as a result of ceasing to record depreciation expense for assets which have been classified as assets held for sale, following execution of asset sales agreements that will close later in the year.
- Higher financing costs resulting from incremental debt, preferred shares and hybrid securities issued to fund the Company's growth program.
- Higher income tax expense due to higher earnings before tax.
- Higher earnings attributable to redeemable noncontrolling interests reflecting stronger performance from the underlying businesses owned through Sponsored Vehicles.
- Higher contribution from the Canadian Mainline primarily due to higher throughput, in part facilitated by capacity optimization initiatives enabled in late 2017, including the utilization of a medium blend product. Also driving an increase in EBITDA contributions were a higher Canadian Mainline IJT residual toll, higher toll surcharges for the recovery of costs related to certain expansion projects, as well as a higher average rate on foreign exchange hedges used to convert United States dollar denominated Canadian Mainline IJT revenues.
- Lakehead System benefited from higher throughput based on the same factors noted above and lower operating and administrative costs, which more than offset a decrease in the Lakehead Local Toll.
- Regional Oil Sands System growth was driven by contributions from new projects placed into service in 2017, in particular the Wood Buffalo Extension Pipeline, Athabasca Pipeline Twin and the Norlite diluent pipeline.
- Gulf Coast and Mid-Continent contributions increased as a result of a higher level of committed take-or-pay contracted volumes on Flanagan South and higher spot shipments on both the Flanagan South and Seaway pipelines as a result of strong demand in the U.S. Gulf Coast for crude from the mid-continent region. These positive factors partially offset the impact of take-or-pay contract relief granted due to upstream apportionment.
- Other increased primarily as a result of incremental contributions from the Company's acquisition of a minority interest in the Bakken Pipeline System in May 2017.
- Excluding the negative impact of US dollar foreign exchange translation, US Gas Transmission adjusted EBITDA increased as a result of new capital projects placed into service in 2017 and the first half of 2018, including Sabal Trail, Access South, Adair Southwest and Lebanon Extension.
- Canadian Gas Transmission & Midstream growth reflected new assets placed into service including High Pine and Wyndwood and further benefited from operational cost efficiencies.
- Alliance Pipeline increased due to favorable seasonal firm and interruptible revenues driven by strong demand for capacity as a result of wider AECO-Chicago basis differentials.
- US Midstream benefited from increased throughput and higher commodity prices and fractionation margins at each of Aux Sable, DCP Midstream, LLC (DCP Midstream) and Midcoast Operating, L.P.
- Higher EBITDA at EGD and Union Gas in the second quarter of 2018 primarily due to a significantly colder month of April which prolonged the heating season in 2018.
- Incremental contributions from expansion projects placed into service at Union Gas in 2017.
- Contributions from the Rampion Offshore wind project, which generated first power in November 2017 and reached full operating capacity during the second quarter of 2018.
- Lower operating costs at Canadian and United States wind farms.
- 11,900 miles of gas and NGL pipelines;
- 25 processing plants with over 2 Bcf/d of capacity; and
- 12 treating plants, an E/P fractionator, and numerous liquid logistics assets (rail, truck, pipeline injection and storage).
- GAAP earnings were $445 million or $0.26 per common share for the first quarter, including the impact of a number of unusual, non-recurring or non-operating factors
- Adjusted earnings were $1,375 million or $0.82 per common share for the first quarter of 2018 compared to $0.57 per common share in the first quarter of 2017
- Adjusted earnings before interest, income tax and depreciation and amortization (EBITDA) was $3,406 million for the first quarter
- Distributable Cash Flow (DCF) and Cash Provided by Operating Activities were $2,312 million and $3,194 million for the first quarter of 2018, respectively, compared with $1,215 million and $1,776 million for the first quarter of 2017
- Strong operational performance across all business segments, including record quarterly average throughput on the Liquids Mainline System
- Executing on $7 billion of new projects to come into service in 2018; $0.8 billion of new projects brought into service since year-end, including the Stampede offshore oil lateral in the Gulf of Mexico and the Wyndwood and High Pine natural gas transmission expansions on the B.C. Pipeline System
- Line 3 Replacement Project construction well underway in Canada and is completed in Wisconsin; In Minnesota, Administrative Law Judge (ALJ) confirms need for project but recommends alternative route; Minnesota Public Utilities Commission (MPUC) permit decisions expected in the second quarter of 2018
- Significant progress on 2018 funding plan; Since introducing the plan in December 2017, the Company has raised close to $3.1 billion of hybrid equity and refinanced US$2.3 billion of debt at the operating company level
- Announced the monetization of $3.2 billion of assets in order to accelerate deleveraging and provide increased financial flexibility while re-focusing the business on low-risk pipeline and utility assets
- Quarterly dividend increased by 10% effective February 15, 2018, marking the 23rd straight year of dividend increases, averaging a compound annual growth rate of 11% over that period
- Growth in adjusted EBITDA primarily as a result of strong business performance and incremental contribution from new projects placed into service across many business segments throughout 2017. For further detail on business performance refer to Adjusted EBITDA by Segments.
- Lower maintenance capital due to a shift in timing of maintenance requirements to later in 2018. The full year maintenance capital spending forecast remains unchanged.
- Lower distributions to noncontrolling interests due to a distribution reduction at EEP in April 2017, partially offset by incremental public ownership in the Fund Group through ENF and an increase in the Fund unit distribution in January 2018.
- Higher distributions from equity investments as a result of new equity investments placed into service throughout 2017.
- An increase in other receipts of cash not recognized in revenue as a result of new assets placed into service.
- Partially offsetting the DCF increase was higher financing costs resulting from a full quarter of interest expense on debt assumed in connection with the Merger Transaction and incremental debt, preferred shares and hybrid securities issued to fund the Company's growth program.
- Higher Depreciation and amortization expense as a result of new assets placed into service throughout 2017.
- Higher income tax expense due to higher earnings before tax
- Higher earnings attributable to redeemable noncontrolling interest reflecting stronger performance from the underlying businesses owned through Sponsored Vehicles and higher public unitholder ownership in the Fund Group following the Enbridge Income Fund Holdings common equity issuances in 2017.
- Higher contribution from the Canadian Mainline due to the combination of higher throughput, in part facilitated by capacity optimization initiatives implemented in 2017, a higher Canadian Mainline IJT residual toll, higher toll surcharges for the recovery of costs related to certain expansion projects, as well as a higher average rate on foreign exchange hedges used to convert United States dollar denominated Canadian Mainline revenues. Adjusted EBITDA generated by the Canadian Mainline for the balance of the year will reflect the positive effect of an increase in the Canadian Mainline IJT Residual Benchmark Toll from US$1.64 to US$1.89 effective April 1, 2018, as well as a higher average foreign exchange hedge rate when compared to 2017.
- Decreased earnings on the Lakehead System which are primarily a result of a lower Lakehead System Local Toll partially offset by higher throughput. Effective April 1, 2018, the Lakehead System Local Toll has decreased from US$2.43 to US$2.18, reflecting the annual cost of service calculation update which, among other things, takes into account the effect of the reduced corporate tax rates announced in December 2017.
- Growth in Regional Oil Sands which was driven by contributions from new projects placed into service in 2017, in particular the Wood Buffalo Extension Pipeline, Athabasca Pipeline Twin and the Norlite diluent pipeline.
- Higher contributions from Gulf Coast and Mid-Continent which reflected an increase in the level of committed take-or-pay contracted volumes on Flanagan South and higher spot shipments on both the Flanagan South and Seaway pipelines as a result of strong demand in the US Gulf Coast for crude from the mid continent region. These positive factors offset the impact of take-or-pay contract relief granted due to upstream apportionment.
- Growth in Other due to the inclusion of a full quarter of contributions from the Express-Platte System acquired in the Merger Transaction and contributions from the Company's acquisition of a minority interest in the Bakken Pipeline System in May 2017.
- Gas Transmission and Midstream adjusted EBITDA increased by $574 million for the first quarter of 2018 when compared to the same period in 2017. The majority of the lines of business reflect a full quarter of contributions in 2018 from assets acquired in the Merger Transaction compared to the 2017 period which only reflects a partial quarter contribution. Additional key period-over-period performance drivers were:
- US Gas Transmission adjusted EBITDA reflected new capital projects placed into service on the Algonquin Gas Transmission and Texas Eastern Transmission systems, as well as contributions from the new Sabal Trail pipeline.
- Canadian Gas Transmission & Midstream results reflected new assets placed into service and lower operating and administrative costs.
- Alliance Pipeline results increased due to favorable seasonal firm and interruptible revenues that results from wider basis differentials.
- US Midstream results were up as a result of the inclusion of a full quarter of earnings from DCP Midstream and operating cost efficiencies.
- Higher EBITDA contribution from EGD in the first quarter of 2018 was primarily due to colder weather compared with the corresponding 2017 period. Also driving higher adjusted EBITDA was higher distribution charges reflecting growth in rate base and lower operating and administrative costs.
- Union Gas' first quarter 2018 adjusted EBITDA reflected a full quarter of contribution compared with a partial contribution in the first quarter of 2017. Union Gas' adjusted EBITDA also reflected EBITDA contributions from expansion projects placed into service in the fourth quarter of 2017.
- Both EGD and Union Gas experienced slightly warmer weather in the first quarter of 2018 when compared the normal weather forecast embedded in rates, negatively impacting EBITDA by approximately $5 million.
- Stronger wind resources across the Company's North American portfolio and incremental contributions from the Chapman Ranch Wind Project which was placed into service in late 2017.
- Modest initial EBITDA contributions from the Rampion Offshore wind project, which is expected to be fully operational in the second quarter.
- A positive arbitration settlement of $11 million from a warrantee claim.
- The natural gas business benefited from increased asset positions which allowed for optimization of wider basis differentials.
- The crude oil business benefited from widening of location and quality differentials which provided greater opportunity to generate profitable margins.
- Reduced hedge settlement losses due to a stronger Canadian dollar and more favourable hedge rates.
- Partially offset by higher unrecovered operating and administrative costs reflecting a full quarter of centralized service costs post-integration, net of synergies.
- List of Line 3 Replacement Project Supporters
- Key Points on Need and Preferred Route from ALJ Report and FEIS
- Earnings of $207 million or $0.13 per common share for the fourth quarter and earnings of $2,529 million or $1.66 per common share for the full year, both including the impact of a number of unusual, non-recurring or non-operating factors
- Adjusted earnings were $1,013 million or $0.61 per common share for the fourth quarter and $2,982 million or $1.96 per common share for the full year
- Adjusted earnings before interest, income tax and depreciation and amortization (EBITDA) was $2,963 million for the fourth quarter and $10,317 million for the full year
- Distributable Cash Flow (DCF) was $1,741 million for the fourth quarter and $5,614 million for the full year; Cash provided by operating activities was $1,341 million for the fourth quarter and $6,584 million for the full year
- Completed merger with Spectra Energy (Merger Transaction) creating the largest North American energy infrastructure company with leading liquids, natural gas transmission and natural gas distribution utilities footprints
- Achieved 2017 target synergy capture and progressed cost management initiatives
- Completed corporate simplification transactions through several sponsored vehicle actions, and filed a utility amalgamation plan with the Ontario Energy Board
- Brought a total of $12 billion of growth projects into service in 2017, with an additional $22 billion of secured growth projects expected to come into service through 2020
- Advanced Line 3 Replacement Project construction in Canada; Minnesota regulatory process reaffirmed with the Minnesota Public Utilities Commission (MPUC), permit decisions expected in the second quarter of 2018
- Executed $14 billion of new capital markets funding in 2017 and completed $2.6 billion of asset sales post the Merger Transaction announcement
- Announced the details of the Company's updated 2018 to 2020 strategic business outlook and funding plan; including 2018 DCF guidance of $4.15 - $4.45/share
- Increased the dividend by 15% in 2017, increased the dividend by another 10% for 2018 and guided to 10% compound annual dividend per share growth through 2020
- DCF for both the fourth quarter and full year of 2017 increased significantly compared to the prior period primarily as a result of adjusted EBITDA from assets acquired in the Merger Transaction.
- Adjusted EBITDA also increased as a result of higher throughput on the Liquids Pipelines Mainline system in 2017 and from the contribution of $12 billion of new projects placed into service across the business segments throughout the year.
- For further detail on business performance refer to Adjusted EBITDA by Segments.
- The increase in DCF from higher EBITDA was partially offset by higher maintenance capital expenditures, higher interest expense and higher current income tax, all as a result of the Merger Transaction.
- The increase in DCF was also offset by the increased distributions to noncontrolling interests related to assets acquired in the Merger Transaction, increased public ownership in Enbridge Income Fund Holdings Inc, offset by reduced distributions at EEP.
- The year-over-year growth in Adjusted Earnings was driven by the same business performance factors as discussed in Distributable Cash Flow above.
- Depreciation and amortization expense, interest expense, income taxes, preference share dividends and noncontrolling interest and redeemable noncontrolling interest all increased period-over-period due to the Merger Transaction.
- On a per share basis, adjusted earnings per share for 2017 was lower relative to the corresponding 2016 period due to the mildly dilutive impact of having a full year of shares issued as part of the Spectra merger transaction. However, business performance, growth projects coming into service and the realization of cost savings and merger synergies throughout 2017 has increased fourth quarter earnings per share above the corresponding period in 2016.
- Canadian Mainline 2017 fourth quarter and full year adjusted EBITDA increased as a result of a higher toll and strong throughput supported by continued growth in oil sands production and capacity optimization initiatives enabled in the third quarter of 2017.
- Regional Oil Sands adjusted EBITDA growth was driven by contributions from new projects placed into service in 2017, most recently the Wood Buffalo Extension Pipeline in December, which supports the Fort Hills oil sands project.
- Lakehead System adjusted EBITDA decreased as a result of a lower Lakehead System Toll and higher operating costs, which were partially offset by higher throughput as noted above.
- Gulf Coast and Mid-Continent year-over-year adjusted EBITDA decreased largely due to a change in reporting practice. As of January 1, 2017 the impact of cash collected under take-or-pay contracts with make-up rights are no longer reflected in adjusted EBITDA, however they continue to be included as a component of DCF. Higher apportionment in 2017 compared with 2016, primarily during the first half of the year also contributed to lower adjusted EBITDA as Mainline apportionment allows relief on certain take or pay obligations on the Flanagan South pipeline.
- US Gas Transmission's operating results were primarily driven by contributions from the legacy Spectra assets. During the year, this segment also benefitted from contributions from expansion projects completed in 2016 and 2017 on the Texas Eastern and Algonquin systems.
- Canadian Gas Transmission & Midstream results increased primarily as a result of the legacy Spectra assets.
- US Midstream results reflected the addition of earnings from DCP Midstream as well as an improving commodity price environment and stronger fractionation margins driving higher equity earnings from Aux Sable, offset by weaker processing volumes and margins in the legacy Midcoast business.
- The primary driver of the Adjusted EBITDA increase is the inclusion of Union Gas assets acquired through the Merger Transaction. During the year, Union Gas also benefited from increased contributions from the Dawn-Parkway expansion projects, increased storage optimization and increases in delivery rates.
- EGD full year 2017 adjusted EBITDA contribution was slightly lower than the comparable period due to lower distribution revenues, reflecting warmer than normal weather in the first quarter, partially offset by colder than normal weather in the fourth quarter. Prior to 2017, EGD adjusted for the effect of warmer/colder weather for the purposes of Adjusted EBITDA. Had EGD continued its policy of adjusting for the effects of warmer/colder weather, adjusted EBITDA for 2017 would have been $15 million higher.
- Union is subject to similar weather impacts as EGD. For the 10 month period post-Merger Transaction, Union Gas adjusted EBITDA would have been $3 million higher had the company adjusted for the effects of weather.
- Stronger wind resources across the Company's North American portfolio drove higher EBITDA for both the quarter and full year.
- Also contributing to higher EBITDA were contributions from new assets, including the Chapman Ranch wind farm placed into service in the fourth quarter of 2017.
- For both the fourth quarter and full year, Energy Services results were negatively impacted by low commodity prices which affected location and quality differentials and resulted in fewer opportunities to achieve profitable margins for assets on which capacity obligations are held.
- Eliminations and Other benefited from reduced hedge settlement losses in 2017 relative to 2016 due to a stronger Canadian dollar and more favourable hedge rates. On a consolidated basis, this benefit partially offset the effect of less favourable US dollar currency translation impacts in the business segment results.
- This was partially offset by higher unallocated operating and administrative costs net of corporate synergies.
- Strong quarter due to solid base business performance and increased earnings from expansion projects
- Continued advancement of expansion projects
- Announced 38th consecutive quarterly distribution increase
- 2017 DCF guidance of a range of $1.4 billion to $1.48 billion
- Reaffirmed quarterly penny-and-a-quarter distribution increases through 2017, and coverage ratio within targeted range of 1.05 to 1.15 times
- Creates largest energy infrastructure company in North America with C$165[1] billion (US$127 billion) enterprise value
- Anticipated 15 percent annualized dividend increase in 2017 and annual 10-12 percent dividend growth thereafter through 2024. Industry leading secured project and risked development inventory of C$74 billion (US$57 billion) with C$26 billion (US$20 billion) currently in execution
- Complementary and diversified asset base to increase customer service offerings and optionality
- Enhanced ability to pursue projects that will improve customer access and service
- Strengthens investment grade balance sheet
- 96 percent of cash flow generated by cost-of-service, take-or-pay, or fee-based contracts
- Industry-leading total return potential
- Six leading strategic growth platforms: The combined company brings together many of the highest quality energy infrastructure assets in North America: liquids and gas pipelines; US and Canadian midstream businesses; a top tier regulated utility portfolio; and a growing renewable power generation business. A map of the assets of the combined entity is available at www.enbridge.com and www.spectraenergy.com.
- Secure, low-risk commercial structure with stable long-term cash flow visibility: 96 percent of pro-forma free cash flow is underpinned by long-term commercial agreements (cost-of-service, take-or-pay, of fixed fee); 93 percent of customers are strong, investment grade or equivalent counterparties; less than 5 percent of combined pro-forma cash flow will have direct exposure to commodity price risk.
- Largest and most secure program of diversified organic growth projects in the industry: Together, Enbridge and Spectra Energy bring C$26 billion (US$20 billion) in secured capital and a C$48 billion (US$37 billion) inventory of probability weighted projects in development.
- Strong balance sheet, growing cash flow and access to capital markets to fund large capital program: The combination is expected to result in sufficient internally generated cash flow to fund growth and improve balance sheet strength. Enbridge will have multiple, cost-effective funding sources and be even more competitive in capturing opportunities.
- Attractive dividend yield with visible organic dividend growth: The combined company's C$74 billion (US$57 billion) organic growth platform is expected to support a highly visible dividend growth rate of 10-12 percent through 2024, including an anticipated aggregate increase of 15 percent in 2017 post closing, while maintaining a conservative payout of 50-60 percent of available cash flow from operations (ACFFO). This provides an industry leading total return driven by a strong, low-risk dividend yield.
- Achievable cost synergies: The combination is expected to achieve annual run-rate synergies of C$540 million (US$415 million), the majority of which should be achieved in the latter part of 2018. In addition, approximately C$260 million (US$200 million) of tax savings can be achieved through utilization of tax losses commencing in 2019.
- Complementary businesses, shared culture and values support smooth integration: Enbridge and Spectra Energy have similar business and operational models, talented teams, common cultures and values, including shared commitment to safety, stewardship of the environment, meaningful stakeholder engagement and investing in communities.
EGLE Advances the Great Lakes Tunnel Project with the Approval of Critical Permits
Source: PR Newswire
Orignial Article: https://contentapi.cision...
CALGARY, AB and LANSING, Mich., Jan. 29, 2021 /CNW/ - The Michigan Department of Environment Great Lakes and Energy (EGLE) has completed its review and has issued permits for Enbridge's Great Lakes Tunnel Project to relocate the portion of the Line 5 pipeline that runs along the bottom of the Straits of Mackinac (where Lake Michigan and Lake Huron meet). This project will make a safe pipeline even safer.
"These approvals bring us a step closer to building the Great Lakes Tunnel," said Vern Yu, Enbridge Executive Vice President and President, Liquid Pipelines. "Line 5, encased in a tunnel below the lakebed, is the best way to safeguard the precious waters of the Great Lakes and ensures that low cost, safe and reliable energy keeps flowing to Michigan, neighboring states and Canada's two largest provinces."
The permits issued today do not resolve Governor Whitmer's effort to shut down Line 5's current operations. Enbridge is challenging those efforts in federal court. Such a shutdown before the completion of the Great Lakes Tunnel Project would lead to major energy shortages in the region and severe economic consequences for Michigan, neighboring states and Canada.
The EGLE permits are an important milestone for the tunnel project and are part of the process to authorize its construction. Permits from the Michigan Public Service Commission and the U.S. Army Corp of Engineers are still required. The environmental permits issued today are related to various parts of the Natural Resources and Environmental Protection Act, the Clean Water Act and the National Pollutant Discharge Elimination System.
The Great Lakes Tunnel will encase a replacement section of Line 5 well below the lakebed, eliminating the risk of an anchor strike and virtually eliminating the potential of any release from Line 5 into the Straits. Survey research has shown that a majority of Michigan residents favor construction of the Great Lakes Tunnel, which is why Enbridge is investing approximately $500 million to construct the tunnel.
EGLE approved the permits for the Great Lakes Tunnel Project following a review of Enbridge's April 2020 application and after obtaining public input through multiple public meetings, hearings, informational sessions and webinars.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to the Line 5 dual pipelines, including the continued safe operations thereof, the proposed Great Lakes Tunnel Project and its anticipated benefits, and related litigation and government and regulatory actions.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements in this news release with regards to the Line 5 dual pipelines and the Great Lakes Tunnel Project include the impact of government and regulatory actions, approvals and litigation on ongoing and future operations.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/egle-advances-the-great-lakes-tunnel-project-with-the-approval-of-critical-permits-301218292.html
SOURCE Enbridge Inc.
Article Date
1/29/2021EGLE Advances the Great Lakes Tunnel Project with the Approval of Critical Permits
Source: PR Newswire
Orignial Article: https://contentapi.cision...
CALGARY, AB and LANSING, Mich., Jan. 29, 2021 /PRNewswire/ - The Michigan Department of Environment Great Lakes and Energy (EGLE) has completed its review and has issued permits for Enbridge's Great Lakes Tunnel Project to relocate the portion of the Line 5 pipeline that runs along the bottom of the Straits of Mackinac (where Lake Michigan and Lake Huron meet). This project will make a safe pipeline even safer.
"These approvals bring us a step closer to building the Great Lakes Tunnel," said Vern Yu, Enbridge Executive Vice President and President, Liquid Pipelines. "Line 5, encased in a tunnel below the lakebed, is the best way to safeguard the precious waters of the Great Lakes and ensures that low cost, safe and reliable energy keeps flowing to Michigan, neighboring states and Canada's two largest provinces."
The permits issued today do not resolve Governor Whitmer's effort to shut down Line 5's current operations. Enbridge is challenging those efforts in federal court. Such a shutdown before the completion of the Great Lakes Tunnel Project would lead to major energy shortages in the region and severe economic consequences for Michigan, neighboring states and Canada.
The EGLE permits are an important milestone for the tunnel project and are part of the process to authorize its construction. Permits from the Michigan Public Service Commission and the U.S. Army Corp of Engineers are still required. The environmental permits issued today are related to various parts of the Natural Resources and Environmental Protection Act, the Clean Water Act and the National Pollutant Discharge Elimination System.
The Great Lakes Tunnel will encase a replacement section of Line 5 well below the lakebed, eliminating the risk of an anchor strike and virtually eliminating the potential of any release from Line 5 into the Straits. Survey research has shown that a majority of Michigan residents favor construction of the Great Lakes Tunnel, which is why Enbridge is investing approximately $500 million to construct the tunnel.
EGLE approved the permits for the Great Lakes Tunnel Project following a review of Enbridge's April 2020 application and after obtaining public input through multiple public meetings, hearings, informational sessions and webinars.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to the Line 5 dual pipelines, including the continued safe operations thereof, the proposed Great Lakes Tunnel Project and its anticipated benefits, and related litigation and government and regulatory actions.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements in this news release with regards to the Line 5 dual pipelines and the Great Lakes Tunnel Project include the impact of government and regulatory actions, approvals and litigation on ongoing and future operations.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/egle-advances-the-great-lakes-tunnel-project-with-the-approval-of-critical-permits-301218292.html
SOURCE Enbridge Inc.
Article Date
1/29/2021Enbridge CEO Al Monaco to Present at CIBC Western Conference
Source: PR Newswire
Orignial Article: https://contentapi.cision...
CALGARY, AB, Jan. 19, 2021 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) announced today that Al Monaco, President and Chief Executive Officer of Enbridge, is scheduled to present at the CIBC Western Virtual Conference on Thursday January 21, 2021.
A replay of the fireside chat will be posted to Enbridge's website at 'Events and Presentations' following the scheduled presentation.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-ceo-al-monaco-to-present-at-cibc-western-conference-301211187.html
SOURCE Enbridge Inc.
Article Date
1/19/2021Enbridge CEO Al Monaco to Present at CIBC Western Conference
Source: PR Newswire
Orignial Article: https://contentapi.cision...
CALGARY, AB, Jan. 19, 2021 /CNW/ - Enbridge Inc. (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) announced today that Al Monaco, President and Chief Executive Officer of Enbridge, is scheduled to present at the CIBC Western Virtual Conference on Thursday January 21, 2021.
A replay of the fireside chat will be posted to Enbridge's website at 'Events and Presentations' following the scheduled presentation.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-ceo-al-monaco-to-present-at-cibc-western-conference-301211187.html
SOURCE Enbridge Inc.
Article Date
1/19/20211/19/2021 - Enbridge Inc. to Host Webcast to Discuss 2020 Fourth Quarter and Full-Year Results on February 12
Enbridge Inc. to Host Webcast to Discuss 2020 Fourth Quarter and Full-Year Results on February 12
Source: PR Newswire
Orignial Article: https://contentapi.cision...
CALGARY, AB, Jan. 19, 2021 /CNW/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) will host a conference call and webcast to provide a business update and review 2020 fourth quarter and full-year results on February 12, 2021 at 7:00 a.m. MT (9:00 a.m. ET).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
Enbridge will announce its financial results before markets open on February 12, 2021.
2020 Fourth Quarter Earnings Webcast and Conference Call
Details of the webcast
When: | Friday Feb. 12, 2021 | |
7:00 a.m. MT (9:00 a.m. ET) | ||
Webcast: | ||
Call: | Dial-in (Audio only – please dial in 15 minutes ahead): | |
North America Toll Free: | (877) 930-8043 | |
Outside North America: | (253) 336-7522 | |
Participant Passcode: | 8891852 | |
A webcast replay will be available approximately two hours after the conclusion of the event and a transcript will be posted to Enbridge's website approximately 24 hours after the event.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-to-host-webcast-to-discuss-2020-fourth-quarter-and-full-year-results-on-february-12-301211038.html
SOURCE Enbridge Inc.
Article Date
1/19/20211/19/2021 - Enbridge Inc. to Host Webcast to Discuss 2020 Fourth Quarter and Full-Year Results on February 12
Enbridge Inc. to Host Webcast to Discuss 2020 Fourth Quarter and Full-Year Results on February 12
Source: PR Newswire
Orignial Article: https://contentapi.cision...
CALGARY, AB, Jan. 19, 2021 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) will host a conference call and webcast to provide a business update and review 2020 fourth quarter and full-year results on February 12, 2021 at 7:00 a.m. MT (9:00 a.m. ET).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
Enbridge will announce its financial results before markets open on February 12, 2021.
2020 Fourth Quarter Earnings Webcast and Conference Call
Details of the webcast
When: | Friday Feb. 12, 2021 | |
7:00 a.m. MT (9:00 a.m. ET) | ||
Webcast: | ||
Call: | Dial-in (Audio only – please dial in 15 minutes ahead): | |
North America Toll Free: | (877) 930-8043 | |
Outside North America: | (253) 336-7522 | |
Participant Passcode: | 8891852 | |
A webcast replay will be available approximately two hours after the conclusion of the event and a transcript will be posted to Enbridge's website approximately 24 hours after the event.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-to-host-webcast-to-discuss-2020-fourth-quarter-and-full-year-results-on-february-12-301211038.html
SOURCE Enbridge Inc.
Article Date
1/19/20211/12/2021 - Michigan Governor's Attempt to Revoke Line 5 Easement is Unlawful and Ignores Science and Evidence
Michigan Governor's Attempt to Revoke Line 5 Easement is Unlawful and Ignores Science and Evidence
Source: PR Newswire
Orignial Article: https://contentapi.cision...
Enbridge Rejects State's Notice on Easement, Says State's Action is Unlawful
CALGARY, AB and LANSING, Mich., Jan. 12, 2021 /CNW/ - Today Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the company) responded to Michigan Governor Gretchen Whitmer's attempt to terminate an easement that has been in place since 1953 and thereby close Enbridge's Line 5 dual pipelines located in that easement. Line 5 enables the safe transport of fuel to heat homes and provides energy to Michigan, neighboring U.S. states and Canada's two largest provinces.
In a letter responding to the State's November 13 notice, Vern Yu, Enbridge Executive Vice President and President, Liquids Pipelines, wrote, "Our dual lines in the Straits are safe and in full compliance with the federal pipeline safety standards that govern them."
Both lines were reviewed and approved for operation by the Pipeline and Hazardous Materials Safety Administration (PHMSA) back in June and September of 2020.
Mr. Yu further stated that Enbridge has no intention of shutting down the pipelines based on the State's unspecified allegations and its violation of federal law.
The company has requested that the United States District Court dismiss the State of Michigan's action in that the revocation of the easement is contrary to federal law and that pipeline safety resides with the federal Pipeline Safety Act and its enforcement is the responsibility of an expert federal agency (PHMSA).
"The Notice ignores scientific evidence and is based on inaccurate and outdated information," Mr. Yu wrote of the State's action.
Repeated offers by Enbridge over the past year to meet with State officials to discuss pipeline issues of concern to the State, provide technical information and discuss matters that might be helpful to the State's review of the easement were consistently ignored and dismissed. Consequently, the State made its claim on ill-informed, inaccurate, out of date and unsupportable opinion.
In his letter, Mr. Yu wrote that the State acted unlawfully in issuing the Notice to revoke and terminate the 1953 easement by attempting to upend federal jurisdiction.
Enbridge's response further underscores that the Governor and the DNR Director cannot disregard Michigan laws authorizing the original 1953 easement and the replacement tunnel, nor displace PHMSA, the federal agency responsible for the safety of interstate pipelines. The company, consistent with the past, is offering to meet with the State to resolve any differences.
"In the meantime, the dual pipelines will continue to operate safely until they are replaced on completion of the Tunnel Project," wrote Vern Yu.
Residents, businesses and refineries throughout Michigan, other Great Lakes states and Canada's two largest provinces – Ontario and Quebec – rely on the safe transportation of oil, propane and other product through the dual pipelines. Enbridge looks forward to continuing to provide this critical source of energy while focusing on plans to construct the Great Lakes Tunnel as another measure to enhance safe operation of the dual pipelines.
To view Mr. Yu's letter, please click here.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to the Line 5 dual pipelines, including the continued safe operations thereof, the State of Michigan's November 13 notice, litigation and government and regulatory actions with respect thereto.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements in this news release with regards to the Line 5 dual pipelines include the impact of government and regulatory actions, approvals and litigation on ongoing and future operations.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/michigan-governors-attempt-to-revoke-line-5-easement-is-unlawful-and-ignores-science-and-evidence-301205820.html
SOURCE Enbridge Inc.
Article Date
1/12/20211/12/2021 - Michigan Governor's Attempt to Revoke Line 5 Easement is Unlawful and Ignores Science and Evidence
Michigan Governor's Attempt to Revoke Line 5 Easement is Unlawful and Ignores Science and Evidence
Source: PR Newswire
Orignial Article: https://contentapi.cision...
Enbridge Rejects State's Notice on Easement, Says State's Action is Unlawful
CALGARY, AB and LANSING, Mich., Jan. 12, 2021 /PRNewswire/ - Today Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the company) responded to Michigan Governor Gretchen Whitmer's attempt to terminate an easement that has been in place since 1953 and thereby close Enbridge's Line 5 dual pipelines located in that easement. Line 5 enables the safe transport of fuel to heat homes and provides energy to Michigan, neighboring U.S. states and Canada's two largest provinces.
In a letter responding to the State's November 13 notice, Vern Yu, Enbridge Executive Vice President and President, Liquids Pipelines, wrote, "Our dual lines in the Straits are safe and in full compliance with the federal pipeline safety standards that govern them."
Both lines were reviewed and approved for operation by the Pipeline and Hazardous Materials Safety Administration (PHMSA) back in June and September of 2020.
Mr. Yu further stated that Enbridge has no intention of shutting down the pipelines based on the State's unspecified allegations and its violation of federal law.
The company has requested that the United States District Court dismiss the State of Michigan's action in that the revocation of the easement is contrary to federal law and that pipeline safety resides with the federal Pipeline Safety Act and its enforcement is the responsibility of an expert federal agency (PHMSA).
"The Notice ignores scientific evidence and is based on inaccurate and outdated information," Mr. Yu wrote of the State's action.
Repeated offers by Enbridge over the past year to meet with State officials to discuss pipeline issues of concern to the State, provide technical information and discuss matters that might be helpful to the State's review of the easement were consistently ignored and dismissed. Consequently, the State made its claim on ill-informed, inaccurate, out of date and unsupportable opinion.
In his letter, Mr. Yu wrote that the State acted unlawfully in issuing the Notice to revoke and terminate the 1953 easement by attempting to upend federal jurisdiction.
Enbridge's response further underscores that the Governor and the DNR Director cannot disregard Michigan laws authorizing the original 1953 easement and the replacement tunnel, nor displace PHMSA, the federal agency responsible for the safety of interstate pipelines. The company, consistent with the past, is offering to meet with the State to resolve any differences.
"In the meantime, the dual pipelines will continue to operate safely until they are replaced on completion of the Tunnel Project," wrote Vern Yu.
Residents, businesses and refineries throughout Michigan, other Great Lakes states and Canada's two largest provinces – Ontario and Quebec – rely on the safe transportation of oil, propane and other product through the dual pipelines. Enbridge looks forward to continuing to provide this critical source of energy while focusing on plans to construct the Great Lakes Tunnel as another measure to enhance safe operation of the dual pipelines.
To view Mr. Yu's letter, please click here.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to the Line 5 dual pipelines, including the continued safe operations thereof, the State of Michigan's November 13 notice, litigation and government and regulatory actions with respect thereto.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements in this news release with regards to the Line 5 dual pipelines include the impact of government and regulatory actions, approvals and litigation on ongoing and future operations.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/michigan-governors-attempt-to-revoke-line-5-easement-is-unlawful-and-ignores-science-and-evidence-301205820.html
SOURCE Enbridge Inc.
Article Date
1/12/202112/8/2020 - Enbridge Announces 2021 Financial Guidance, Increases Dividend, and Provides Update on Strategic Priorities
Enbridge Announces 2021 Financial Guidance, Increases Dividend, and Provides Update on Strategic Priorities
Source: PR Newswire
CALGARY, AB, Dec. 8, 2020 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) announced its 2021 financial guidance and dividend and provided an update on its strategic priorities, which will be further discussed at the Company's virtual investor conference today.
Highlights
CEO Comment
Commenting on the Company's operations, strategic priorities and outlook, Al Monaco, President and CEO of Enbridge, noted the following:
"Over the past year, the energy industry has faced unparalleled challenges. While our business has not been immune, we've proven again that our low-risk commercial model generates resilient cash flows in all market conditions. Our infrastructure is in high demand and is essential to North America's economy, and we're confident that it will be for many decades.
"We responded quickly to protect the health and safety of our people and to ensure critical operations were maintained. The criticality of what we do means that the safety and reliability of our systems is the single most important priority for everyone at Enbridge.
"As we look forward in this year's Strategic Plan, it's clear that long-term global energy demand will continue to grow, and that all forms of energy supply – conventional and renewable – will be needed to meet that demand. Our scale, financial strength, and asset footprint across each of our businesses – Gas Transmission, Gas Distribution and Storage, Liquids Pipelines and Renewable Power – provide competitive advantages that assure the resiliency and longevity of our cash flows and will generate attractive long-term growth.
"For the 26th consecutive year, we're pleased to be providing our shareholders with another dividend increase in 2021. This reflects our confidence in our healthy 5-7% DCF per share growth outlook, on average, through 2023 and beyond, the priority we place on returning capital to shareholders, and our strong financial position. We'll continue to ratably grow the dividend up to the level of average annual DCF per share growth, while maintaining our dividend policy payout of 60-70% of distributable cash flow.
"We're highly confident in the durability of our businesses and that they will generate profitable investment opportunities. Part of that is continuing to position for the gradual transition toward lower carbon intensity, over time. We began doing that more than 20 years ago with investments in natural gas and renewable power, which today provide leading platforms for lower carbon infrastructure growth. We're also investing in renewable natural gas and hydrogen facilities with commercial models that fit our low-risk pipeline-utility model.
"In the near-term, our Plan continues to prioritize the execution of our $16 billion secured growth program, of which approximately $6 billion has already been spent, and are expected to deliver approximately $2 billion of incremental EBITDA from 2021 to 2023.
"The Line 3 Replacement project is an important element of that program. We recently completed a very thorough regulatory and permitting process in Minnesota that lasted 6 years. The majority of the line is in place and we've now started construction on the final leg in Minnesota. Our top priority will be to protect communities and the environment. We are very proud to have overwhelming community support for the project.
"We'll be laser-focused on maximizing the returns on our base business by realizing embedded revenue growth and generating productivity improvements through the use of new technology. Our two technology and innovation labs, for example, are already helping our businesses enable significant revenue and cost efficiencies.
"Over the medium and longer term, Enbridge's diversified asset base, integrated infrastructure networks and extensive reach provide us with many opportunities to invest our expected post- Line 3 annual investment capacity of $5-6 billion. We will, however, stay true to our investment discipline, deploy capital to the best uses, and stick to what we know best.
"That means prioritizing low-capital intensity growth and regulated utility or utility-like investments. Longer term, we will continue to develop our organic hopper; however, long-lead time opportunities will compete for excess financial capacity with alternatives, including share buybacks, to ensure shareholder value is maximized.
"Collectively, execution on these elements of our Plan are expected to drive 5-7% distributable cash flow per share growth through 2023 and beyond.
"Sustainability is integral to our ability to safely and reliably deliver the energy people need and want. While ESG has gained broader attention recently, we've always operated our business sustainably and we're proud to be recognized as an ESG leader. Our recent further commitments to emissions reduction and diversity are a good example of that.
"We believe that our Plan continues to provide investors with a compelling and superior total shareholder return value proposition, which is why the management team and our employees continue to invest in ENB."
Strategic Priorities and Three-Year Financial Outlook
Last year, Enbridge set out a strategic plan that emphasized maintaining resiliency and prudently growing its world-class energy infrastructure franchises, while preserving its financial strength and flexibility. The rapid rise of the Covid-19 pandemic in early 2020 and the unparalleled impact on energy supply and demand re-tested the resilience of the business.
Despite the disruption to energy markets, the strategic positioning of the Company's assets and last mile connections to North America's largest industrial, commercial and end-use markets, combined with Enbridge's low-risk business model, have continued to generate consistent and predictable cash flows. Furthermore, precautionary measures were initiated early to further bolster the Company's financial flexibility and to mitigate the financial impacts of the pandemic through prudent cost reductions.
As a result, Enbridge is even stronger today and is projected to achieve the mid-point of its 2020 financial guidance as set out in December 2019, further demonstrating its resilience.
The Company's 2021 Strategic Plan builds on this strength and emphasizes priorities that will continue to reinforce the resilience, longevity and organic growth of its cash flows over the long-term. Specific priorities include:
2021 Financial Outlook
Enbridge is providing 2021 guidance for EBITDA of $13.9 billion to $14.3 billion and distributable cash flow per share (DCF/share) of between $4.70 to $5.00 per share.
Performance drivers in 2021 include volume recoveries on Enbridge's Liquids Mainline System and downstream pipelines; continued customer growth within its Gas Distribution & Storage business; rate increases on its Gas Transmission and Midstream systems; further cost savings; and contributions from projects entering service.
Separately, Enbridge announced that the quarterly dividend for 2021 will be increased from $0.81 to $0.835 per share, commencing with the dividend payable on March 1, 2021, to shareholders of record on February 12, 2021.
Business Updates
Line 3 Replacement
On December 1, Enbridge commenced construction on the Line 3 Replacement Project (the "Project") in Minnesota, after having satisfied all necessary regulatory and permitting requirements at the state and federal levels. Appropriate measures have been put in place to ensure the health and safety of Enbridge's workforce and the communities along the right of way.
The US$2.9 billion project is a critical integrity project that will enhance the continued safe and reliable operations of the Company's Mainline System well into the future, reflecting Enbridge's commitment to protecting the environment.
It will provide significant economic benefits for counties, small businesses, Native American communities, and union members – bringing 4,200 family-sustaining, mostly local construction jobs, millions of dollars in local spending and additional tax revenues at a time when Northern Minnesota needs it most.
The Company anticipates that the Project will be in service in the fourth quarter of 2021. The Company will provide an update on project costs in early 2021.
Atlantic Bridge
Regulators have approved the Weymouth Compressor Station, the final component of the US$0.1 billion Atlantic Bridge Project, to start operations.
The Atlantic Bridge Project will enable the transport of significant and diverse natural gas supplies to end use markets in the New England states and Canadian Maritime provinces. This expanded access to reliable and affordable natural gas throughout the region will support energy cost savings for homeowners, businesses, and manufacturers.
Details of Enbridge's Investor Conference
Enbridge's virtual investor conference will be held today at 7:00 a.m. MT (9:00 a.m. ET). The conference will be webcast live at Link.
Details of the webcast:
When: | Tuesday Dec. 8, 2020 |
7:00 a.m. MT (9:00 a.m. ET) to 10:30 a.m. MT (12:30 p.m. ET) | |
Webcast: | |
Call: | Dial-in (Audio only – please dial in 10 minutes ahead): |
North America Toll Free: (833) 350-1337 | |
Participant Passcode: 9994862 |
Presentations and supporting materials are posted on Enbridge's website in 'Events and Presentations'.
A webcast replay will be available approximately two hours after the conclusion of the event and a transcript will be posted to Enbridge's website approximately 24 hours after the event.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: Enbridge's strategic plan, priorities and outlook; 2020 and 2021 financial guidance, including projected DCF per share and EBITDA and expected growth thereof; expected dividends, dividend growth and dividend policy; expected supply of, demand for and prices of crude oil, natural gas, natural gas liquids, liquified natural gas and renewable energy; expected energy transition to lower carbon intensity; emissions reduction targets; diversity and inclusion goals; anticipated utilization of our existing assets, including throughput on the Mainline; expected EBITDA; expected DCF and DCF per share; expected future cash flows; expected shareholder returns; expected performance of the Company's businesses, including customer growth; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction, and the contributions of such projects; expected capital expenditures and capital allocation priorities; anticipated cost savings; expected future growth and investment opportunities, including secured growth program; expected use of new technology and the benefits thereof; expected future actions of regulators and courts; toll and rate case filings, and the anticipated benefits therefrom; the Line 3 Replacement Project; and the Atlantic Bridge Project.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the COVID-19 pandemic and the duration and impact thereof; the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy, including the current weakness and volatility of such prices; expected energy transition; anticipated utilization of our existing assets; anticipated cost savings; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the timing and closing of acquisitions and dispositions; the realization of anticipated benefits and synergies of transactions; governmental legislation; litigation; impact of the Company's dividend policy on its future cash flows; credit ratings; capital project funding; hedging program; expected EBITDA and expected adjusted EBITDA; expected earnings/(loss) and adjusted earnings/(loss); expected earnings/ (loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation, interest rates and the COVID-19 pandemic impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected EBITDA, expected adjusted EBITDA, expected earnings/(loss), expected adjusted earnings/(loss), expected DCF and associated per share amounts, and estimated future dividends. The most relevant assumptions associated with forward-looking statements regarding announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; and the COVID-19 pandemic and the duration and impact thereof.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the realization of anticipated benefits and synergies of projects and transactions, successful execution of our strategic plan and priorities, operating performance, the Company's dividend policy, regulatory parameters, changes in regulations applicable to the Company's business, litigation, acquisitions and dispositions and other transactions, project approval and support, renewals of rights-of-way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, political decisions, exchange rates, interest rates, commodity prices, supply of and demand for commodities and the COVID-19 pandemic, including but not limited to those risks and uncertainties discussed in this and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
Non-GAAP Measures
This news release makes reference to non-GAAP measures, including distributable cash flow (DCF) and DCF per share. DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to non-controlling interests and redeemable non-controlling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management uses DCF to assess performance of the Company and to set its dividend payout target. Management believes the presentation of these measures gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly certain contingent liabilities and non-cash unrealized derivative fair value losses and gains which are subject to market variability. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without unreasonable effort.
The non-GAAP measures described above are not measures that have a standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers. A reconciliation of historical non-GAAP measures to the most directly comparable GAAP measures is available on the Company's website. Additional information on non-GAAP measures may be found on the Company's website, www.sedar.com or www.sec.gov.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media | Investment Community |
Jesse Semko | Jonathan Morgan |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com |
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-2021-financial-guidance-increases-dividend-and-provides-update-on-strategic-priorities-301188181.html
SOURCE Enbridge Inc.
Article Date
12/8/2020Enbridge Inc. Announces Three Percent Quarterly Dividend Increase for 2021
Source: PR Newswire
CALGARY, AB, Dec. 8, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that its Board of Directors has declared a quarterly dividend of $0.835 per common share, payable on March 1, 2021 to shareholders of record on February 12, 2021. The declared dividend represents a three percent increase from the prior quarterly rate and the twenty-sixth consecutive year in which the Company has increased its common share dividend.
DIVIDEND DECLARATION
On December 7, 2020, the Enbridge Board of Directors declared the following quarterly dividends. All dividends are payable on March 1, 2021 to shareholders of record on February 12, 2021.
Common Shares | $0.835 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C | $0.15349 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P | $0.27369 |
Preference Shares, Series R | $0.25456 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 3 | $0.23356 |
Preference Shares, Series 5 | US$0.33596 |
Preference Shares, Series 7 | $0.27806 |
Preference Shares, Series 9 | $0.25606 |
Preference Shares, Series 11 | $0.24613 |
Preference Shares, Series 13 | $0.19019 |
Preference Shares, Series 15 | $0.18644 |
Preference Shares, Series 17 | $0.321875 |
Preference Shares, Series 19 | $0.30625 |
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-announces-three-percent-quarterly-dividend-increase-for-2021-301187797.html
SOURCE Enbridge Inc.
Article Date
12/8/202011/30/2020 - Enbridge Line 3 Starts Construction in Minnesota
Enbridge Line 3 Starts Construction in Minnesota
Source: PR Newswire
CALGARY, AB and DULUTH, Minn., Nov. 30, 2020 /PRNewswire/ - The Line 3 Replacement Project can now start construction in Minnesota after receiving all necessary permits and approvals.
"This is a historic day for the Line 3 project which will strengthen the safety of the system for years to come," said Vern Yu Enbridge Executive Vice President and President of Liquid Pipelines. "With all of the permits in hand, we can now start construction."
"Safety remains our top priority, and we will be implementing an industry leading COVID management plan to protect our workforce and the communities in which we will be working," added Yu.
The project is poised to provide significant economic benefits for counties, small businesses, Native American communities, and union members – bringing 4,200 family-sustaining, mostly local construction jobs, millions of dollars in local spending and additional tax revenues at a time when Northern Minnesota needs it most.
Enbridge thanks the thousands of Minnesotans, labor groups, communities, counties, Native Americans and elected officials who have been steadfast in their support of this important pipeline replacement project.
The replacement of Line 3 is a safety and maintenance focused private investment in Minnesota's energy infrastructure. It is the best option for protecting the environment and communities while meeting the region's energy needs.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to the Line 3 Replacement Project and expected regulatory and permitting actions and decisions, capital expenditures, construction schedules and anticipated economic benefits.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction such as the Line 3 Replacement Project, including estimated completion dates and expected capital expenditures, include the following: the COVID-19 pandemic and the duration and impact thereof; the impact of customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; and the impact of weather.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on and stock exchanges under the symbol ENB. For more information, visit the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Juli Kellner Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-line-3-starts-construction-in-minnesota-301181932.html
SOURCE Enbridge Inc.
Article Date
11/30/2020Enbridge Inc. to Host Virtual Investor Conference on December 8
Source: PR Newswire
CALGARY, AB, Nov. 25, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) will hold its annual investor conference at 9:00am ET on Tuesday, December 8, by virtual webcast. During the webcast, the Company will review its strategic plan, business unit priorities and financial outlook.
The conference will be webcast live on the 'Events and Presentations' page of Enbridge's website.
Details of the webcast
When: | Tuesday Dec. 8, 2020 |
7:00 a.m. MT (9:00 a.m. ET) to 10:30 a.m. MT (12:30 p.m. ET) | |
Webcast: | |
Call: | Dial-in (Audio only – please dial in 10 minutes ahead): |
North America Toll Free: (833) 350-1337 | |
Participant Passcode: 9994862 |
Presentations and supporting materials will be posted to Enbridge's website in 'Events and Presentations' the morning of Tuesday, December 8.
A webcast replay will be available approximately two hours after the conclusion of the event and a transcript will be posted to Enbridge's website approximately 24 hours after the event.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-to-host-virtual-investor-conference-on-december-8-301180861.html
SOURCE Enbridge Inc.
Article Date
11/26/202011/24/2020 - Line 3 Moves Forward to Construction
Line 3 Moves Forward to Construction
Source: PR Newswire
CALGARY, AB and DULUTH, Minn., Nov. 24, 2020 /PRNewswire/ - The Line 3 Replacement Project has received approval to begin construction. Today the Minnesota Public Utilities Commission issued their authorization to construct. The one remaining permit is a storm water permit which is provided by the Minnesota Pollution Control Agency.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on and stock exchanges under the symbol ENB. For more information, visit the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Juli Kellner Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/line-3-moves-forward-to-construction-301180184.html
SOURCE Enbridge Inc.
Article Date
11/24/2020Enbridge files in Federal Court to block Michigan's illegal actions against Line 5
Source: PR Newswire
CALGARY, AB and LANSING, Mich., Nov. 24, 2020 /PRNewswire/ - Today Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) filed a federal complaint in the United States District Court for the Western District of Michigan seeking an injunction to stop the State of Michigan from taking any steps to prevent the operation of Line 5. The attempt to shut down Line 5 interferes with the comprehensive federal regulation of pipeline safety and burdens interstate and foreign commerce in clear violation of federal law and the US Constitution. Enbridge is also today moving the complaint filed by the State against Line 5 on November 13 in Michigan state court to the Federal Court.
A federal agency, the Pipeline and Hazardous Materials Safety Administration (PHMSA), is Enbridge's safety regulator, not the State of Michigan. In fact, only three months ago the safety of the Dual Pipelines was reviewed by our regulator and the Pipelines were found to be fit for service. The State's attempt to assume the role of safety regulator through its notice purporting to "terminate and revoke" the easement is improper and unlawful.
This is the latest attempt by the State of Michigan to interfere with the operation of this critical infrastructure by assuming authority it does not possess. By contrast, Enbridge continues to live up to all its obligations under its agreements with the State of Michigan. Notably, Enbridge has undertaken a variety of Line 5 projects requested by the State at substantial expense, including installing a new Line 5 crossing under the St. Clair River earlier this year and diligently pursuing permitting for the Great Lakes tunnel project at no cost to taxpayers.
"In the face of continued roadblocks by this Administration it's time for the State to stop playing politics with the energy needs and anxieties of US and Canadian consumers and businesses that depend on Line 5," said Vern Yu, Executive Vice President and President, Liquids Pipelines. "It is concerning to see the current Administration is willing to compromise these needs. We remain highly committed to protecting the Great Lakes, the environment, and all the people who use these waters while delivering energy that people rely on daily. Enbridge's Line 5 has served Michiganders safely without spilling a drop of oil at the Straits crossing for more than 65 years, over nine different State Administrations."
A disruption of Line 5 would create a propane shortage, higher energy prices and hardship for Michigan families, especially those on fixed incomes or of modest means. It would also result in a daily shortage of over 14 million gallons of gasoline and other transportation fuels, impacting the entire region, including Wisconsin, Indiana, Ohio, Pennsylvania, Ontario, and Quebec. Ten regional refineries would be significantly and adversely impacted. Some of these refineries served by Line 5 also supply a large percentage of the aviation fuel at Detroit's Metropolitan Airport.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to the Line 5 dual pipelines, including the safe operations thereof, litigation and anticipated impact of any disruption to Line 5 operations.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements in this news release with regards to the Line 5 dual pipelines include the impact of government and regulatory actions, approvals and litigation on ongoing and future operations.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Ryan Duffy
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-files-in-federal-court-to-block-michigans-illegal-actions-against-line-5-301180119.html
SOURCE Enbridge Inc.
Article Date
11/24/2020Enbridge Line 3 Replacement Project Receives Federal Permits
Source: PR Newswire
CALGARY, AB and DULUTH, Minn, Nov. 23, 2020 /PRNewswire/ - Today the US Army Corps of Engineers announced approvals of federal permits for Enbridge's Line 3 project, including the Section 404, Section 10 and Section 408 permits.
"We have now received all federal permits required for replacing Line 3, an essential maintenance project that will better protect Minnesota communities and the environment," said Leo Golden Vice President of Line 3 Execution. "These permits reflect yet another science-based approval for the project, which now moves closer to the start of construction, hopefully before the end of the year. Final state permits and authorizations are still needed before work can begin."
The US Army Corps of Engineers review process was very thorough and included robust public participation, including consultation with 30 participating tribes. One key permitting input was the Tribal Cultural Resource Survey of the entire route of Line 3 which was managed by the Fond du Lac Band of Lake Superior Chippewa. The survey was the longest and most extensive of its kind for an energy project.
The replacement of Line 3 is a safety and maintenance focused private investment in Minnesota's energy infrastructure. It is the best option for protecting the environment and communities while meeting the region's energy needs.
The project is poised to provide significant economic benefits for counties, small businesses, Native American communities, and union members – bringing 4,200 family-sustaining, mostly local construction jobs, millions of dollars in local spending and additional tax revenues at a time when Northern Minnesota needs it most.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to the Line 3 Replacement Project and expected regulatory and permitting actions and decisions, capital expenditures, construction schedules and anticipated economic benefits.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction such as the Line 3 Replacement Project, including estimated completion dates and expected capital expenditures, include the following: the COVID-19 pandemic and the duration and impact thereof; the impact of customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; and the impact of weather.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on and stock exchanges under the symbol ENB. For more information, visit the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Juli Kellner Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-line-3-replacement-project-receives-federal-permits-301179315.html
SOURCE Enbridge Inc.
Article Date
11/24/202011/13/2020 - Enbridge Confirms Line 5 is Safe; No Credible Basis for Terminating 1953 Easement in the Straits of Mackinac
Enbridge Confirms Line 5 is Safe; No Credible Basis for Terminating 1953 Easement in the Straits of Mackinac
Source: PR Newswire
CALGARY, AB and LANSING, Mich., Nov. 13, 2020 /PRNewswire/ - Enbridge remains confident that Line 5 continues to operate safely and that there is no credible basis for terminating the 1953 Easement allowing the Dual Line 5 Pipelines to cross the Straits of Mackinac.
Enbridge received a notice from the Governor's chief legal counsel this afternoon and is reviewing the document.
"This notice and the report from Michigan Department of Natural Resources are a distraction from the fundamental facts," said Vern Yu, Executive Vice President and President, Liquids Pipelines. "Line 5 remains safe, as envisioned by the 1953 Easement, and as recently validated by our federal safety regulator."
"We will continue to focus on the safe operation of the dual Line 5 pipelines at the Straits of Mackinac, ensuring the Great Lakes are protected while also reliably delivering the energy that helps to fuel Michigan's and the region's economy," Yu continued.
In developing its report, the Michigan Department of Natural Resources (DNR) chose to conduct its assessment of Easement compliance in a non-public manner. The DNR rejected Enbridge's offer to allow technical experts to discuss any questions or clarifications related to its review. This failure to engage reflects a lack of understanding or worse, a continued failure to meet the State's commitments under the 2018 Second Agreement between the State of Michigan and Enbridge, which contemplates periodic meetings on pipeline issues to avoid just this kind of situation.
With today's actions by the Governor and Attorney General based on historical Line 5 compliance, Enbridge finally will have an opportunity to review the DNR's analysis and provide a thorough response through the legal process.
Line 5 is an essential source of energy for not only Michigan but for the entire region including Wisconsin, Indiana, Ohio, Pennsylvania, Ontario, and Quebec. Any disruption would have devastating consequences.
Our focus remains on protecting the Great Lakes, the environment and all the people who use these waters while delivering energy that people rely on daily. Enbridge's Line 5 has served Michiganders safely without incident at the Straits crossing for more than 65 years, over nine different State Administrations. We remain committed to advancing The Great Lakes Tunnel that will contain a new section of pipeline to replace the Dual Pipelines. Enbridge is currently seeking permit approval for the tunnel project and replacement pipeline which, upon completion, will make a safe Straits crossing even safer.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to the Line 5 dual pipelines, including the safe operations thereof, litigation and anticipated impact of any disruption to Line 5 operations. This news release also contains forward-looking information about the tunnel project permitting process.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements in this news release with regards to the Line 5 dual pipelines include the impact of government and regulatory actions, approvals and litigation on ongoing and future operations.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on and stock exchanges under the symbol ENB. For more information, visit the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASECONTACT:
Media
Ryan Duffy Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-confirms-line-5-is-safe-no-credible-basis-for-terminating-1953-easement-in-the-straits-of-mackinac-301172964.html
SOURCE Enbridge Inc.
Article Date
11/13/2020Enbridge Line 3 Replacement Project Receives MPCA Approvals and Remaining DNR Permits
Source: PR Newswire
CALGARY, AB and DULUTH, MN, Nov 12, 2020 /PRNewswire/ - Today Minnesota Pollution Control Agency announced approvals for Enbridge's Line 3 project, including the 401 Water Quality Certification. Also, today the Minnesota Department of Natural Resources released the final eight permits for the project.
"Clearly this is a big day for Line 3 in Minnesota," said Leo Golden Vice President of Line 3 Execution. "These authorizations and approvals are an important step towards construction for this safety and maintenance focused replacement project which comes at an important time for Minnesota."
This decision from the Minnesota Pollution Control Agency, including the project's 401 Water Quality Certification clears the way for a determination from the US Army Corps of Engineers regarding federal permits.
The Line 3 project has been designed to avoid and minimize impacts to sensitive streams and wetlands. Enbridge pipelines have coexisted with the nation's most productive wild rice waters for 70 years.
The authorizations and permits approved today by the Minnesota DNR range from a license for utility crossing of state land and public water, to water appropriation for dust control, hydrostatic testing and horizontal directional drilling. Enbridge has now received all ten of the DNR permits and authorizations for the safety and maintenance focused Line 3 Replacement Project. The project still needs final permits and authorizations before construction can begin.
The thorough, robust, science-based review of the project over the past six years has led to evidence-based approvals. Enbridge recognizes that the permit conditions required by the PCA and DNR are essential for protecting Minnesota's sensitive streams and wild rice waters during construction and planning for post-construction restoration and enhancement.
At Enbridge safety is our top priority. Enbridge implemented an effective COVID-19 testing and screening program that has proven effective during our recent Line 3 construction in North Dakota. We will continue to follow the latest guidance provided by local, federal and international public-health and government authorities to protect workers and communities.
The project will provide significant economic benefits for counties, small businesses, Native American communities, and union members. Line 3 is a shovel-ready, $2.6-billion private investment that will bring 4,200 family-sustaining construction jobs, millions of dollars in local spending and tax revenues at a time when Northern Minnesota needs it most.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to the Line 3 Replacement Project and expected regulatory and permitting actions and decisions, capital expenditures, construction schedules and anticipated economic benefits.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction such as the Line 3 Replacement Project, including estimated completion dates and expected capital expenditures, include the following: the COVID-19 pandemic and the duration and impact thereof; the impact of customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; and the impact of weather.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on and stock exchanges under the symbol ENB. For more information, visit the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Juli Kellner Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-line-3-replacement-project-receives-mpca-approvals-and-remaining-dnr-permits-301172353.html
SOURCE Enbridge Inc.
Article Date
11/12/2020Enbridge Sets New Environmental, Social and Governance Goals for the Future
Source: PR Newswire
CALGARY, AB, Nov. 6, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) today announced expanded environmental, social and governance (ESG) goals and targets1 related to greenhouse gas (GHG) emissions reduction and diversity and inclusion as well as increasing transparency and accountability of our ESG priorities and results. Setting goals in areas core to our business and stakeholders is just one of the ways Enbridge is further integrating ESG into strategy, operations and decision-making.
"Sustainability is integral to our ability to safely and reliably deliver the energy people need and want," said Al Monaco, President and Chief Executive Officer of Enbridge. "How well we perform as a steward of our environment, a safe operator of essential energy infrastructure, and as a diverse and inclusive employer is inextricably linked to our business success and our ability to create long-term value for all stakeholders.
"While ESG has garnered more attention in recent years, Enbridge's commitment to strong ESG practices and performance has long been core to how we do business and we're proud to be recognized as a leader. Our new commitments represent the next stage of our progression to ensure we are positioned to grow Enbridge sustainably for decades to come."
Enbridge's ESG goals include:
Enbridge's ESG goals support the Company's strategic priorities to optimize its core energy delivery businesses and execute on the Company's capital program with emphasis on modernization, technology and innovation. They also contribute to strengthening Enbridge's ability to capture new growth opportunities and adapt to a lower-carbon future over time, building on the Company's significant expansion into natural gas and our rapidly growing renewables portfolio.
To drive results and accountability, Enbridge will expand links to incentive compensation to performance on emissions reduction and diversity, complementing safety metrics already embedded. Objectives will be set out in annual scorecards.
"We are committed to delivering strong ESG performance that sustains our industry leadership," said Al Monaco. "In linking a broader set of ESG goals to compensation, we not only achieve greater accountability, we put ourselves in position to succeed in transitioning to a safer, cleaner and affordable energy future."
Enbridge's ESG Goals
The specifics of these new and enhanced ESG goals and targets and associated backgrounder are available online and linked here. Enbridge's 2019 Sustainability Report is available at Enbridge.com
Environmental
Meeting Emission Reduction Targets:
To meet its 2030 emission intensity reduction target and 2050 net zero target, Enbridge will pursue multiple pathways, strongly aligned with, and embedded in, the Company's existing business plans, including:
Safety: Our Path to Zero
Enbridge currently has safety targets in place that are linked to compensation. The Company believes all injuries, incidents and occupational illnesses are preventable and pursues continuous improvement towards a goal of zero incidents.
Enhanced 2021 targets include:
Social
Enbridge's goals for representation of women, racial and ethnic groups, people with disabilities and veterans were set and shared with employees in 2018; progress towards them is shared through a "Diversity Dashboard". Having already made progress, the Company is accelerating its goals from an original date of 2028 to 2025, and sharing them publicly, enhancing transparency and accountability to all stakeholders.
The Company is also committing to specific measures to ensure a more equitable and inclusive workplace through changes in recruitment, development and succession planning to unconscious bias training for all employees. The Company will also be taking steps to increase procurement with diverse suppliers and suppliers that promote diversity and inclusion, as well as add to its continuing efforts to contribute to Indigenous reconciliation through enhanced hiring efforts, cultural awareness training and economic participation.
The table below provides a brief overview of these social goals:
Social | ||
Build an inclusive environment of talent that represents the communities in which we operate | Achieve goals for workforce representation by 2025 of: | |
Racial and Ethnic groups | 28% | |
Women | 40% | |
People with disabilities | 6% | |
Veterans (U.S.) | 7% | |
In 2021, sub-category goals for Racial and Ethnic groups will be set for 2022 to 2024. | ||
Enbridge's 2021 Equity & Inclusion Action Plan includes specific milestones for: | ||
• Recruitment including diverse candidate slates, increased scholarships and internships focused on Historically Black Colleges and Universities and hiring leader training | ||
• Development and Succession including representation in leadership programs, sponsorship and mentorship and inclusion in succession plans | ||
• Unconscious bias and anti-racism training – 100% of employees and leaders complete by year-end | ||
Increase procurement from, and number of, | In 2021: | |
• Complete inventory of current suppliers to confirm diverse suppliers and identify opportunities to increase spend with certified diverse businesses | ||
• Introduce and implement supplier diversity policy | ||
• Set supplier diversity targets | ||
Contribute to Indigenous reconciliation; and build and maintain relationships with Indigenous communities | Evolve our Indigenous employment strategy in 2021; achieve 3.5% representation within our workforce of Indigenous people by 2025 | |
Require all employees and contractors to complete Indigenous awareness training | ||
Governance
Board diversity has long been a priority, supported by a written policy that highlights the importance the Company places on diversity and experience. Enbridge is expanding its diversity policy to establish specific representation goals for women and racial and ethnic groups: 40% from women and 20% from racial and ethnic groups. Of its 10 independent Board members, four are currently women; and women chair four of the five Board committees.
Similarly, the Company has reported its sustainability efforts and progress on ESG matters for 19 years. Enbridge will continue to align its reporting with best practices as outlined by disclosure frameworks such as those set out by the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosure (TCFD). Commitments related to Enbridge's cyber defense program reflect an ongoing cybersecurity effort that includes application security, information security, network security, disaster recovery planning, operational security and end-user education.
The achievement of near-term emissions reduction and diversity and inclusion goals – along with ongoing safety, environmental protection and cyber security performance – will be incorporated into incentive compensation at the executive level and for all employees.
The table below provides a brief overview of these governance goals:
Governance | |
Strengthen board diversity | Achieve representation on the Board of 40% women and 20% Racial and Ethnic groups by 2025 |
Sustain leadership in ESG reporting | Report in alignment with leading sustainability disclosure frameworks (GRI, SASB, TCFD) and evolve with best practice |
Implement effective cyber defense programs to protect the confidentiality, integrity, availability and reliability of information and services | Ensure employee awareness and understanding of security responsibilities – completion of annual certification and training |
Regularly assess cybersecurity maturity and defense capabilities both through internal audits as well as independent third-party engagements including an annual maturity assessment against the National Institute of Standards and Technology (NIST) cybersecurity framework | |
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge and its subsidiaries and affiliates, including management's assessment of our and our subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate", "believe", "estimate", "expect", "forecast", "intend", "likely", "plan", "project", "target", "goal" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: our corporate vision and strategy, including strategic priorities; our environmental, social and governance (ESG) goals and targets related to greenhouse gas emissions reduction, safety performance and standards, diversity and inclusion, procurement practices, Indigenous reconciliation efforts, ESG reporting and cyber defense programs; the pathways to achieve such ESG goals and targets; and our incentive compensation programs.
Although we believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions and risks include the following: the COVID-19 pandemic and the duration and impact thereof; the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy, including the current weakness and volatility of such prices; anticipated utilization of our existing assets; exchange rates; inflation; interest rates; availability and price of labor; technology; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for our projects; and governmental legislation and policy. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for our services. Similarly, exchange rates, inflation, interest rates and the COVID-19 pandemic impact the economies and business environments in which we operate and may impact levels of demand for our services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty.
Our forward-looking statements are subject to risks and uncertainties pertaining to the successful execution of our strategic priorities and ESG goals, operating performance, regulatory parameters, changes in regulations applicable to our business, acquisitions, dispositions and other transactions, economic and competitive conditions, technology, public opinion, exchange rates, interest rates, commodity prices, political decisions, supply of and demand for commodities, and the COVID-19 pandemic and the duration and impact thereof, including, but not limited, to those risks and uncertainties discussed in this news release and in our filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent 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 applicable law, Enbridge Inc. assumes no obligation to publicly update or revise any forward-looking statement made in this news release or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to us or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
1 With regard to diversity, the word "targets" and any percentage targets listed, are aspirational goals which we intend to achieve in a manner compliant with state, local, provincial and federal law, including, but not limited to, US federal regulations and Equal Employment Opportunity Commission (EEOC), Department of Labor (DOL) ad Office of Federal Contract Compliance Programs (OFCCP) guidance. | |||||||||||
View original content:http://www.prnewswire.com/news-releases/enbridge-sets-new-environmental-social-and-governance-goals-for-the-future-301167625.html
SOURCE Enbridge Inc.
Article Date
11/6/2020Enbridge Reports Strong Third Quarter and Reaffirms 2020 Financial Guidance
Source: PR Newswire
CALGARY, AB, Nov. 6, 2020 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) today reported strong third quarter 2020 financial results and provided a quarterly business update.
Third Quarter 2020 Highlights
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
CEO COMMENT - Al Monaco, President and Chief Executive Officer
"We are pleased with our third quarter results, which reflected the resilience of our business and predictability of our cash flows," commented Al Monaco, President and Chief Executive Officer of Enbridge. "While we are encouraged by the economic activity and recovery in energy demand, we are assuming a gradual pace of recovery over the balance of 2020 and into 2021. Importantly, the early and decisive actions we took to protect the health of our people and mitigate both the operational and financial impacts to our businesses have positioned us for the future.
"Each of our core businesses performed well in the third quarter. Utilization levels in our Gas Transmission, Gas Distribution and Storage and Renewable Power businesses all remained strong and their robust commercial underpinnings continue to deliver reliable cash flows which reflect the low risk pipeline-utility business we've been talking about.
"In Liquids, Mainline heavy capacity is now fully utilized and full year volumes are tracking to the guidance range that we provided in May for the remainder of 2020, and we're on track to deliver $300 million of cost reductions in 2020. Our strong performance over the first nine months gives us confidence that we'll be near the mid-point of the DCF per share guidance range of $4.50 to $4.80.
"We've continued to make excellent progress on our strategic priorities. In Gas Transmission, the vast majority of work has been completed on Texas Eastern to ensure safe and reliable natural gas delivery and the system has returned to its normal operating capacity for eastbound service in time for the winter heating season. Construction on the T-South Expansion, Spruce Ridge and our modernization program continue to progress well.
"In Liquids, the Line 3 permitting process moved forward with the MPCA's contested case hearing process culminating in a favourable recommendation from the ALJ that dismissed all of the five issues considered. The next step will be for the MPCA Commissioner to issue the 401 Water Quality Certificate, which we anticipate by November 14th, and will support the finalization of the remaining Federal permit.
"In our renewables business, we made good construction progress on our two newest offshore wind projects in France: Saint Nazaire, a 480 MW project, is advancing well, on schedule and we've now begun construction on the 500 MW Fécamp project. In addition, we expect FID on a third project in 2021. These projects will further expand our European offshore wind business and generate high quality cash flows with solid returns.
"Elsewhere on our renewables strategy, we've just put into service our first solar self-powered compressor station on Texas Eastern and initiated work on a facility in Alberta along the Liquids Mainline, collectively delivering low-cost renewable power to our operations. These will be the first of many self-power projects we are moving forward on in the months and years to come to ensure we minimize our environmental footprint.
"I am pleased to announce that Enbridge is committing to further reduce our own emissions, and to improve our diversity and inclusion, along with strategies to achieve those targets. These targets represent a natural evolution of our approach and once again demonstrate our commitment to industry leadership. Enbridge has long been a leader in the areas of environmental, social and governance (ESG) matters and our practices have been fully integrated within our business operations and our existing strategies to grow the business.
"Enbridge is very well-positioned for a transitioning energy mix towards lower carbon fuels over time. Our diversified asset base is purposefully aligned with the global energy mix and our outlook on the fundamentals. Our long-lived pipeline and distribution assets are absolutely essential to the global economy and strategically connected to the largest demand centers and export markets, which pull volumes through our systems. And, each business is underpinned by low risk commercial models that assure the durability of our cash flows over the long term.
"In the near term, completion of our secured capital program, and embedded growth within each business, is expected to generate 5% to 7% DCF per share through 2022, and support growing free cash flow, net of capital and dividend requirements. In the near-term, our capital allocation priorities remain centered on executing our secured growth and preserving balance sheet strength and flexibility. Upon completion of our secured growth, we will maintain our prudent approach to low risk, low capital intensity utility-like growth and disciplined capital allocation including return of capital to shareholders.
"We look forward to sharing our outlook on energy fundamentals and our approach to the business going forward at our virtual Investor Day scheduled for December 8, 2020," concluded Mr. Monaco.
FINANCIAL RESULTS REVIEW AND 2020 FINANCIAL OUTLOOK
Financial results for three and nine months ended September 30, 2020, are summarized in the table below:
Three months ended | Nine months ended | |||||
2020 | 2019 | 2020 | 2019 | |||
(unaudited, millions of Canadian dollars, except per share amounts; | ||||||
GAAP Earnings attributable to common shareholders | 990 | 949 | 1,208 | 4,576 | ||
GAAP Earnings per common share | 0.49 | 0.47 | 0.60 | 2.27 | ||
Cash provided by operating activities | 2,302 | 2,735 | 7,527 | 7,405 | ||
Adjusted EBITDA1 | 2,997 | 3,108 | 10,072 | 10,085 | ||
Adjusted Earnings1 | 961 | 1,124 | 3,762 | 4,113 | ||
Adjusted Earnings per common share1 | 0.48 | 0.56 | 1.86 | 2.04 | ||
Distributable Cash Flow1 | 2,088 | 2,105 | 7,231 | 7,173 | ||
Weighted average common shares outstanding | 2,021 | 2,018 | 2,020 | 2,017 | ||
1 | Non-GAAP financial measures. Schedules reconciling adjusted EBITDA, adjusted earnings, adjusted earnings per common share and distributable cash flow are available as Appendices to this news release. |
GAAP earnings attributable to common shareholders for the third quarter of 2020 increased by $41 million or $0.02 per share compared with the same period in 2019. The period-over-period comparability of earnings attributable to common shareholders was impacted by certain unusual, infrequent factors or other non-operating factors, which are noted in the reconciliation schedule included in Appendix A of this news release.
Adjusted EBITDA in the third quarter of 2020 decreased by $111 million compared with the same period in 2019. The business benefited from incremental earnings from a positive rate settlement on Texas Eastern, contributions from new assets that were placed into service in late 2019 and the first half of 2020 and customer growth and synergy realizations in Gas Distribution and Storage. The strong core business performance was more than offset by lower contributions from Energy Services due to a significant compression of certain key regional, lower Mainline throughput related to COVID-19, and the absence of contributions from the federally regulated Canadian natural gas gathering and processing business sold on December 31, 2019.
Adjusted earnings in the third quarter of 2020 decreased by $163 million and on a per share basis by $0.08. The decrease was primarily driven by lower Adjusted EBITDA as well as a reduction in capitalized interest and higher depreciation from new assets placed into service throughout 2019, primarily on the Canadian Line 3 replacement program.
DCF for the third quarter was $2,088 million, a decrease of $17 million over the third quarter of 2019 driven largely by the net impact of the operating factors noted above, partially offset by lower maintenance capital due to timing of spend in light of COVID-19 and higher cash receipts not recognized in EBITDA for contracts with make-up rights on certain assets within Liquids Pipelines. These factors are discussed in detail under Distributable Cashflow.
Detailed segmented financial information and analysis for the third quarter of 2020 can be found below under Adjusted EBITDA by Segments.
OUTLOOK AND FINANCIAL POSITION UPDATE
The Company expects to generate DCF per share near the mid-point of its original guidance range of $4.50 to $4.80. This outlook reflects our strong performance over the first nine months of 2020, the $300 million of enabled full year costs savings, as well as certain offsetting headwinds anticipated within the fourth quarter.
Mainline volumes are recovering in line with the outlook issued in May and are projected to be 100-300kbpd lower than the Company's pre-COVID19 expectations for the fourth quarter. In addition, lower margins in Energy Services, lower equity distributions from DCP related to its previously executed distribution cut and higher integrity costs in Gas Transmission are expected to negatively impact fourth quarter results relative to full year guidance.
The Company continues to secure debt financings at attractive rates and proceeds from these offerings were used primarily to reduce existing indebtedness and partially fund capital projects. During the third quarter the Company completed the previously announced US$1.0 billion 60-year hybrid subordinated notes offering in the United States debt capital markets. These hybrid notes qualify for 50% equity treatment from most rating agencies, which further reinforces the Company's financial strength.
Subsequent to the third quarter, Texas Eastern Transmission, LP, a wholly owned subsidiary of the Company, issued US$300 million of 20-year tranche Senior Notes by private placement. Proceeds were used to redeem US$300 million senior notes due December 2020.
The Company has completed its 2020 debt funding plan and prefunded a portion of its 2021 external debt requirements. In addition, the Company ended the third quarter with over $14 billion of available liquidity, which is sufficient capacity to meet all of its funding requirements through the end of 2021 without further access to capital markets. Debt to EBITDA is expected to remain well within the target range of 4.5x to 5.0x for the full year.
PROJECT EXECUTION UPDATE
The Company continues to advance the development of its approximately $11 billion inventory of secured growth projects with approximately $5 billion of growth capital remaining to be spent through 2022, net of anticipated project level financing provided by third parties.
In addition, the Company announced today $0.2 billion of utility growth capital for the London Line Replacement Project. This project will replace two parallel pipelines connecting the Dawn Hub to residential and commercial markets in southern Ontario that have reached the end of their useful lives.
Line 3 Replacement
The $9 billion Line 3 Replacement Project is a critical integrity project that will enhance the continued safe and reliable operations of our Mainline System well into the future reflecting Enbridge's commitment to protecting the environment.
In the third quarter, the Minnesota Public Utilities Commission (MPUC) issued its final order to approve the final environmental impact statement (FEIS) and reinstate the Certificate of Need and Route Permit and subsequently denied all related petitions for reconsideration. This action substantially completes the regulatory review process.
State and federal agencies continue to advance the necessary environmental permits in parallel. The MPCA contested case hearing process related to the State's 401 Water Quality Certificate has been completed. On October 16, 2020, Enbridge received a favourable recommendation from the ALJ on all five of the issues considered, which further supports the extensive regulatory record and the critical nature of this integrity project. This recommendation will inform the MPCA Commissioner's decision on the 401 Water Quality Certificate, which the Company anticipates by the statutory deadline of November 14, 2020.
During the third quarter, the necessary construction stormwater permit was issued by the MPCA and subsequent to the third quarter, Enbridge received two of its required permits from the Minnesota Department of Natural Resources (DNR). The remaining U.S. Army Corps of Engineers (USACE) and DNR permitting processes are ongoing and continue to progress in parallel.
Once Enbridge receives all necessary permits and the Authorization to Construct from the MPUC, the Company expects Minnesota construction to take 6 to 9 months.
Line 5 and the Great Lakes Tunnel Project
Both the east and west leg of Line 5 crossing the Straits of Mackinac (the Straits) have been placed back into service, and are fully operational, after in-line inspections of both lines crossing the Straits confirmed the safety of the lines and fitness for operation. The inspections concluded that there had been no damage to the pipeline itself following the disturbance of an anchor support identified by the Company earlier this year in July.
As part of Enbridge's agreement with the State of Michigan, the Company plans to replace the existing Line 5 dual pipelines at the Straits with a single pipeline encapsulated inside a state-of-the-art tunnel under the Straits. The Great Lake Tunnel Project will make a safe pipeline even safer and further demonstrates Enbridge's ongoing commitment to protect Michigan and the Great Lakes' natural resource, while providing a reliable source of energy to the people of Michigan.
The Company has completed an extensive geotechnical assessment and retained a world-class engineering team to design the tunnel. Enbridge has filed for all major regulatory and environmental permits necessary to construct the tunnel and the review processes for each of these continue to advance on schedule.
OTHER BUSINESS UPDATES
Gas Transmission and Midstream Pressure Restrictions
The Company has lifted pressure restrictions on the Texas Eastern system related to eastbound service in time for the winter heating season after executing planned integrity work. Enbridge continues to prioritize the execution of its comprehensive Gas Transmission integrity program, which will ensure the continued safe and reliable operation of its pipeline network, and plans to have southbound service returned to operation within the next month.
Gas Transmission and Midstream Rate Cases
The Company finalized three rate proceedings in the first half of the year on the Texas Eastern, Algonquin and B.C. Pipeline systems, resulting in good outcomes for both Enbridge and shippers, further advancing the Company's strategy to ensure fair and timely cost recovery.
Three additional rate proceedings on East Tennessee, Alliance and the Maritimes & Northeast US systems were filed in the second quarter and are progressing on schedule.
Mainline Contracting
The Company continues to advance its application to contract the Mainline, which is currently being reviewed by the Canada Energy Regulator (CER). The contract offering reflects two years of negotiations with shippers and has the support of shippers transporting 75%+ of mainline volumes. This support reflects the competitiveness of the offering, which will support the best netbacks for shippers and secure long-term demand for Western Canadian crude oil.
In May, the CER issued a hearing order outlining the timelines for the regulatory review process which includes multiple rounds of intervenor and CER information requests, written evidence and Enbridge's replies, concluding in April 2021. The Company expects an oral hearing to occur sometime after April 2021, but a hearing date has not yet been set. If a replacement agreement is not in place by June 30, 2021, the CTS tolls will continue on an interim basis.
During the third quarter, Enbridge responded to information requests from the CER and intervenors. The evidence further supports our view that the proposed tolls meet the regulators fair return standards and that the contract offering will serve the public interest.
THIRD QUARTER 2020 FINANCIAL RESULTS
The following table summarizes the Company's GAAP reported results for segment EBITDA, earnings attributable to common shareholders and cash provided by operating activities for the third quarter of 2020.
GAAP SEGMENT EBITDA AND CASH FLOW FROM OPERATIONS
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Liquids Pipelines | 2,090 | 1,646 | 5,280 | 5,710 |
Gas Transmission and Midstream | 334 | 772 | 230 | 2,733 |
Gas Distribution and Storage | 298 | 252 | 1,285 | 1,304 |
Renewable Power Generation | 93 | 82 | 376 | 300 |
Energy Services | (34) | 91 | (12) | 318 |
Eliminations and Other | 207 | (40) | (498) | 315 |
EBITDA | 2,988 | 2,803 | 6,661 | 10,680 |
Earnings attributable to common shareholders | 990 | 949 | 1,208 | 4,576 |
Cash provided by operating activities | 2,302 | 2,735 | 7,527 | 7,405 |
For purposes of evaluating performance, the Company makes adjustments for unusual, infrequent or other non-operating factors to GAAP reported earnings, segment EBITDA, and cash flow provided by operating activities, which allow Management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
DISTRIBUTABLE CASH FLOW
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Liquids Pipelines | 1,732 | 1,826 | 5,395 | 5,321 |
Gas Transmission and Midstream | 945 | 944 | 3,017 | 2,920 |
Gas Distribution and Storage | 315 | 255 | 1,330 | 1,338 |
Renewable Power Generation | 93 | 82 | 361 | 305 |
Energy Services | (110) | 27 | (37) | 291 |
Eliminations and Other | 22 | (26) | 6 | (90) |
Adjusted EBITDA1,3 | 2,997 | 3,108 | 10,072 | 10,085 |
Maintenance capital | (256) | (293) | (595) | (741) |
Interest expense1 | (721) | (666) | (2,141) | (2,012) |
Current income tax1 | (83) | (94) | (325) | (305) |
Distributions to noncontrolling interests1 | (68) | (50) | (232) | (150) |
Cash distributions in excess of equity earnings1 | 197 | 144 | 479 | 427 |
Preference share dividends | (94) | (96) | (284) | (287) |
Other receipts of cash not recognized in revenue2 | 118 | 53 | 250 | 139 |
Other non-cash adjustments | (2) | (1) | 7 | 17 |
DCF3 | 2,088 | 2,105 | 7,231 | 7,173 |
Weighted average common shares outstanding | 2,021 | 2,018 | 2,020 | 2,017 |
1 | Presented net of adjusting items. |
2 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
3 | Schedules reconciling adjusted EBITDA and DCF are available as Appendices to this news release. |
Third quarter 2020 DCF decreased $17 million compared with the same period of 2019 primarily due to:
For further detail on business performance refer to Adjusted EBITDA by Segments.
ADJUSTED EARNINGS | Three months ended | Nine months ended | ||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Adjusted EBITDA1 | 2,997 | 3,108 | 10,072 | 10,085 |
Depreciation and amortization | (935) | (844) | (2,766) | (2,526) |
Interest expense2 | (708) | (651) | (2,099) | (1,962) |
Income taxes2 | (278) | (377) | (1,133) | (1,144) |
Noncontrolling interests2 | (21) | (16) | (28) | (53) |
Preference share dividends | (94) | (96) | (284) | (287) |
Adjusted earnings1 | 961 | 1,124 | 3,762 | 4,113 |
Adjusted earnings per common share | 0.48 | 0.56 | 1.86 | 2.04 |
1 | Schedules reconciling adjusted EBITDA and adjusted earnings are available as Appendices to this news release. |
2 | Presented net of adjusting items. |
Adjusted earnings decreased $163 million and adjusted earnings per share decreased $0.08 compared with the third quarter in 2019. The decrease in adjusted EBITDA was driven by the same factors impacting business performance and adjusted EBITDA as discussed under Distributable Cash Flow above, as well as the following factors:
ADJUSTED EBITDA BY SEGMENTS
Adjusted EBITDA by segment is reported on a Canadian dollar basis. Adjusted EBITDA generated from U.S. dollar denominated businesses was translated at a higher average Canadian dollar exchange rate in the third quarter of 2020 (C$1.33/US$) when compared with the corresponding 2019 period (C$1.32/US$).
A portion of the U.S. dollar earnings is hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
LIQUIDS PIPELINES
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Mainline System | 994 | 1,026 | 3,070 | 2,940 |
Regional Oil Sands System | 195 | 218 | 605 | 648 |
Gulf Coast and Mid-Continent System | 213 | 227 | 714 | 708 |
Other1 | 330 | 355 | 1,006 | 1,025 |
Adjusted EBITDA2 | 1,732 | 1,826 | 5,395 | 5,321 |
Operating Data (average deliveries – thousands of bpd) | ||||
Mainline System - ex-Gretna volume3 | 2,555 | 2,714 | 2,612 | 2,698 |
Regional Oil Sands System4 | 1,399 | 1,839 | 1,549 | 1,803 |
International Joint Tariff (IJT)5 | $4.27 | $4.21 | $4.23 | $4.17 |
1 | Included within Other are Southern Lights Pipeline, Express-Platte System, Bakken System and Feeder Pipelines & Other. |
2 | Schedules reconciling adjusted EBITDA are provided in the Appendices to this news release. |
3 | Mainline System throughput volume represents mainline system deliveries ex-Gretna, Manitoba which is made up of United States and eastern Canada deliveries originating from Western Canada. |
4 | Volumes are for the Athabasca mainline, Athabasca Twin, Waupisoo Pipeline and Woodland Pipeline and exclude laterals on the Regional Oil Sands System. |
5 | The IJT benchmark toll and its components are set in U.S. dollars and the majority of the Company's foreign exchange risk on the Canadian portion of the Mainline is hedged. The Canadian portion of the Mainline represents approximately 45% of total Mainline System revenue and the average effective FX rate for the Canadian portion of the Mainline during the third quarter of 2020 was C$1.20/US$ (Q3 2019: C$1.19/US$). |
The U.S. portion of the Mainline System is subject to FX translation similar to the Company's other U.S. based businesses, which are translated at the average spot rate for a given period. A portion of this U.S. dollar translation exposure is hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other. |
Liquids Pipelines adjusted EBITDA decreased $94 million compared to the third quarter of 2019 primarily due to:
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
US Gas Transmission1 | 762 | 716 | 2,417 | 2,133 |
Canadian Gas Transmission1 | 111 | 136 | 354 | 488 |
US Midstream | 36 | 43 | 116 | 146 |
Other | 36 | 49 | 130 | 153 |
Adjusted EBITDA2 | 945 | 944 | 3,017 | 2,920 |
1 | US Gas Transmission includes the Canadian portion of the Maritimes & Northeast Pipeline which was previously included in Canadian Gas Transmission. The comparable 2019 adjusted EBITDA has been restated to reflect this change. |
2 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Gas Transmission and Midstream adjusted EBITDA increased $1 million compared to the third quarter of 2019 primarily due to:
GAS DISTRIBUTION AND STORAGE
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Enbridge Gas Inc. (EGI) | 327 | 255 | 1,286 | 1,270 |
Other | (12) | — | 44 | 68 |
Adjusted EBITDA1 | 315 | 255 | 1,330 | 1,338 |
Operating Data | ||||
EGI | ||||
Volumes (billions of cubic feet) | 297 | 269 | 1,286 | 1,328 |
Number of active customers (thousands)2 | 3,760 | 3,731 | ||
Heating degree days3 | ||||
Actual | 90 | 60 | 2,423 | 2,699 |
Forecast based on normal weather4 | 94 | 97 | 2,533 | 2,535 |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
2 | Number of active customers is the number of natural gas consuming customers at the end of the reported period. |
3 | Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in EGI's distribution franchise areas. |
4 | Normal weather is the weather forecast by EGI in its legacy rate zones, using the forecasting methodologies approved by the Ontario Energy Board. |
Gas Distribution and Storage adjusted EBITDA will typically follow a seasonal profile. It is generally highest in the first and fourth quarters of the year reflecting greater volumetric demand during the heating season. The magnitude of the seasonal EBITDA fluctuations will vary from year-to-year reflecting the impact of colder or warmer than normal weather on distribution volumes.
Gas Distribution and Storage adjusted EBITDA increased $60 million compared to the third quarter of 2019 primarily due to:
RENEWABLE POWER GENERATION
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA1 | 93 | 82 | 361 | 305 |
1 Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Renewable Power Generation adjusted EBITDA increased $11 million compared to the third quarter of 2019 primarily due to:
ENERGY SERVICES
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA1 | (110) | 27 | (37) | 291 |
1 Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Energy Services adjusted EBITDA decreased $137 million compared to the third quarter of 2019 as a result of significant compression of location and quality differentials in certain markets which led to fewer opportunities to achieve profitable margins on capacity obligations.
ELIMINATIONS AND OTHER
Three months ended | Nine months ended | ||||
2020 | 2019 | 2020 | 2019 | ||
(unaudited, millions of Canadian dollars) | |||||
Operating and administrative recoveries | 58 | 24 | 166 | 76 | |
Realized foreign exchange hedge settlements | (36) | (50) | (160) | (166) | |
Adjusted EBITDA1 | 22 | (26) | 6 | (90) | |
1 Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Operating and administrative recoveries captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) inclusive of amounts recovered from business units for the provision of those services. Also, as previously noted, U.S. dollar denominated earnings within the segment results are translated at average foreign exchange rates during the quarter. The offsetting impact of settlements made under the Company's enterprise foreign exchange hedging program are captured in this segment.
Eliminations and Other adjusted EBITDA increased $48 million compared to the third quarter of 2019 due to:
CONFERENCE CALL
Enbridge will host a conference call and webcast on November 6, 2020 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to provide an enterprise wide business update and review 2020 third quarter financial results. Analysts, members of the media and other interested parties can access the call toll free at (877) 930-8043 or within and outside North America at (253) 336-7522 using the access code of 9737258#. The call will be audio webcast live at https://edge.media-server.com/mmc/p/youisrgo. It is recommended that participants dial in or join the audio webcast fifteen minutes prior to the scheduled start time. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available for seven days after the call toll-free (855) 859-2056 or within and outside North America at (404) 537-3406 (access code 9737258#).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
DIVIDEND DECLARATION
On November 3, 2020, the Company's Board of Directors declared the following quarterly dividends. All dividends are payable on December 1, 2020, to shareholders of record on November 13, 2020.
Dividend per share | ||
Common Shares1 | $0.81000 | |
Preference Shares, Series A | $0.34375 | |
Preference Shares, Series B | $0.21340 | |
Preference Shares, Series C2 | $0.15975 | |
Preference Shares, Series D | $0.27875 | |
Preference Shares, Series F | $0.29306 | |
Preference Shares, Series H | $0.27350 | |
Preference Shares, Series J | US$0.30540 | |
Preference Shares, Series L | US$0.30993 | |
Preference Shares, Series N | $0.31788 | |
Preference Shares, Series P | $0.27369 | |
Preference Shares, Series R | $0.25456 | |
Preference Shares, Series 1 | US$0.37182 | |
Preference Shares, Series 3 | $0.23356 | |
Preference Shares, Series 5 | US$0.33596 | |
Preference Shares, Series 7 | $0.27806 | |
Preference Shares, Series 9 | $0.25606 | |
Preference Shares, Series 113 | $0.24613 | |
Preference Shares, Series 134 | $0.19019 | |
Preference Shares, Series 155 | $0.18644 | |
Preference Shares, Series 17 | $0.32188 | |
Preference Shares, Series 19 | $0.30625 |
1 | The quarterly dividend per common share was increased 9.8% to $0.81 from $0.738, effective March 1, 2020. |
2 | The quarterly dividend per share paid on Series C was increased to $0.25458 from $0.25305 on March 1, 2020, was decreased to $0.16779 from $0.25458 on June 1, 2020 and was decreased to $0.15975 from $0.16779 on September 1, 2020, due to reset on a quarterly basis following the date of issuance of the Series C Preference Shares. |
3 | The quarterly dividend per share paid on Series 11 was decreased to $0.24613 from $0.275 on March 1, 2020, due to the reset of the annual dividend on March 1, 2020, and every five years thereafter. |
4 | The quarterly dividend per share paid on Series 13 was decreased to $0.19019 from $0.275 on June 1, 2020, due to the reset of the annual dividend on June 1, 2020, and every five years thereafter. |
5 | The quarterly dividend per share paid on Series 15 was decreased to $0.18644 from $0.275 on September 1, 2020, due to the reset of the annual dividend on September 1, 2020, and every five years thereafter. |
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: Enbridge's corporate vision and strategy, including strategic priorities and enablers; 2020 financial guidance; the COVID-19 pandemic and the duration and impact thereof; anticipated reductions in operating costs and deferrals of secured growth capital spend; emissions reduction targets; diversity and inclusion goals; the expected supply of, demand for and prices of crude oil, natural gas, natural gas liquids, liquified natural gas and renewable energy; anticipated utilization of our existing assets, including throughput on the Mainline; expected EBITDA and expected adjusted EBITDA; expected earnings/(loss) and adjusted earnings/(loss); expected earnings/(loss) and adjusted earnings/(loss) per share; expected DCF and DCF per share; expected future cash flows; expected performance of the Company's businesses; expected debt-to-EBITDA ratio; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected costs related to announced projects and projects under construction and for maintenance; expected in-service dates for announced projects and projects under construction; expected capital expenditures and capital allocation priorities; expected future growth and expansion opportunities, including self-power projects; expectations about the Company's joint ventures and our partners' ability to complete and finance announced projects and projects under construction; expected closing of acquisitions and dispositions and the timing thereof; expected benefits of transactions, including the realization of efficiencies and synergies; expected future actions of regulators and courts; toll and rate case discussions and filings, including Mainline Contracting and the anticipated benefits thereof; Line 3 Replacement Program; Line 5 dual pipelines, Great Lakes Tunnel Project and related matters; Line 10 of the Texas Eastern system; interest rates; and exchange rates.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the COVID-19 pandemic and the duration and impact thereof; anticipated reductions in operating costs and deferrals of secured growth; the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy, including the current weakness and volatility of such prices; anticipated utilization of our existing assets; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the timing and closing of acquisitions and dispositions; the realization of anticipated benefits and synergies of transactions; governmental legislation; litigation; impact of the Company's dividend policy on its future cash flows; credit ratings; capital project funding; hedging program; expected EBITDA and expected adjusted EBITDA; expected earnings/(loss) and adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation, interest rates and the COVID-19 pandemic impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected EBITDA, expected adjusted EBITDA, expected earnings/(loss), expected adjusted earnings/(loss), expected DCF and associated per share amounts, and estimated future dividends. The most relevant assumptions associated with forward-looking statements regarding announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; and the COVID-19 pandemic and the duration and impact thereof.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the realization of anticipated benefits and synergies of projects and transactions, successful execution of our strategic priorities, operating performance, the Company's dividend policy, regulatory parameters, changes in regulations applicable to the Company's business, litigation, acquisitions and dispositions and other transactions, project approval and support, renewals of rights-of-way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, political decisions, exchange rates, interest rates, commodity prices, supply of and demand for commodities and the COVID-19 pandemic, including but not limited to those risks and uncertainties discussed in this and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
ABOUT ENBRIDGE INC.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise part of this news release.
FOR FURTHER INFORMATION PLEASE CONTACT: | ||
Enbridge Inc. – Media | Enbridge Inc. – Investment Community | |
Jesse Semko | Jonathan Morgan | |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 | |
Email: media@enbridge.com | Email: investor.relations@enbridge.com |
NON-GAAP RECONCILIATIONS APPENDICES
This news release contains references to adjusted EBITDA, adjusted earnings, adjusted earnings per common share and DCF. Management believes the presentation of these metrics gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Adjusted EBITDA represents EBITDA adjusted for unusual, infrequent or other non-operating factors on both a consolidated and segmented basis. Management uses adjusted EBITDA to set targets and to assess the performance of the Company and its Business Units.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, infrequent or other non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, infrequent or other non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes and noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another measure of the Company's ability to generate earnings.
DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, infrequent or other non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
Reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly certain contingent liabilities, and non-cash unrealized derivative fair value losses and gains which are subject to market variability. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without unreasonable effort.
Our non-GAAP measures described above are not measures that have standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers.
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON-GAAP RECONCILIATIONS – ADJUSTED EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Liquids Pipelines | 2,090 | 1,646 | 5,280 | 5,710 |
Gas Transmission and Midstream | 334 | 772 | 230 | 2,733 |
Gas Distribution and Storage | 298 | 252 | 1,285 | 1,304 |
Renewable Power Generation | 93 | 82 | 376 | 300 |
Energy Services | (34) | 91 | (12) | 318 |
Eliminations and Other | 207 | (40) | (498) | 315 |
EBITDA | 2,988 | 2,803 | 6,661 | 10,680 |
Depreciation and amortization | (935) | (844) | (2,766) | (2,526) |
Interest expense | (718) | (644) | (2,105) | (1,966) |
Income tax expense | (231) | (255) | (273) | (1,275) |
Earnings attributable to noncontrolling interests | (20) | (15) | (25) | (50) |
Preference share dividends | (94) | (96) | (284) | (287) |
Earnings attributable to common shareholders | 990 | 949 | 1,208 | 4,576 |
ADJUSTED EBITDA TO ADJUSTED EARNINGS
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Liquids Pipelines | 1,732 | 1,826 | 5,395 | 5,321 |
Gas Transmission and Midstream | 945 | 944 | 3,017 | 2,920 |
Gas Distribution and Storage | 315 | 255 | 1,330 | 1,338 |
Renewable Power Generation | 93 | 82 | 361 | 305 |
Energy Services | (110) | 27 | (37) | 291 |
Eliminations and Other | 22 | (26) | 6 | (90) |
Adjusted EBITDA | 2,997 | 3,108 | 10,072 | 10,085 |
Depreciation and amortization | (935) | (844) | (2,766) | (2,526) |
Interest expense | (708) | (651) | (2,099) | (1,962) |
Income tax expense | (278) | (377) | (1,133) | (1,144) |
Earnings attributable to noncontrolling interests | (21) | (16) | (28) | (53) |
Preference share dividends | (94) | (96) | (284) | (287) |
Adjusted earnings | 961 | 1,124 | 3,762 | 4,113 |
Adjusted earnings per common share | 0.48 | 0.56 | 1.86 | 2.04 |
EBITDA TO ADJUSTED EARNINGS
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
EBITDA | 2,988 | 2,803 | 6,661 | 10,680 |
Adjusting items: | ||||
Change in unrealized derivative fair value (gain)/loss - Foreign exchange | (569) | 170 | 201 | (854) |
Change in unrealized derivative fair value (gain)/loss - Commodity prices | (73) | (66) | (24) | 56 |
Asset write-down loss - US Gas Transmission | — | 105 | — | 105 |
Equity investment impairment | 615 | — | 2,351 | — |
Equity investment asset and goodwill impairment - DCP Midstream | — | 62 | 324 | 62 |
Net inventory adjustment - Energy Services | (3) | 2 | (1) | (83) |
Texas Eastern re-establishment of EDIT regulated liability | — | — | 159 | — |
Employee severance, transition and transformation costs | 39 | 23 | 318 | 88 |
Other | — | 9 | 83 | 31 |
Total adjusting items | 9 | 305 | 3,411 | (595) |
Adjusted EBITDA | 2,997 | 3,108 | 10,072 | 10,085 |
Depreciation and amortization | (935) | (844) | (2,766) | (2,526) |
Interest expense | (718) | (644) | (2,105) | (1,966) |
Income tax expense | (231) | (255) | (273) | (1,275) |
Earnings attributable to noncontrolling interests | (20) | (15) | (25) | (50) |
Preference share dividends | (94) | (96) | (284) | (287) |
Adjusting items in respect of: | ||||
Interest expense | 10 | (7) | 6 | 4 |
Income tax expense | (47) | (122) | (860) | 131 |
Earnings attributable to noncontrolling interests | (1) | (1) | (3) | (3) |
Adjusted earnings | 961 | 1,124 | 3,762 | 4,113 |
Adjusted earnings per common share | 0.48 | 0.56 | 1.86 | 2.04 |
APPENDIX B
NON-GAAP RECONCILIATION – SEGMENTED EBITDA TO ADJUSTED EBITDA
LIQUIDS PIPELINES
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 1,732 | 1,826 | 5,395 | 5,321 |
Change in unrealized derivative fair value gain/(loss) | 360 | (180) | (90) | 390 |
Asset write-down loss | — | — | (13) | (1) |
Employee severance, transition and transformation costs | (2) | — | (9) | — |
Other | — | — | (3) | — |
Total adjustments | 358 | (180) | (115) | 389 |
EBITDA | 2,090 | 1,646 | 5,280 | 5,710 |
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 945 | 944 | 3,017 | 2,920 |
Asset write-down loss - US Gas Transmission | — | (105) | — | (105) |
Equity investment impairment | (615) | — | (2,351) | — |
Equity investment asset and goodwill impairment - DCP Midstream | — | (62) | (324) | (62) |
Texas Eastern re-establishment of EDIT regulated liability | — | — | (159) | — |
Equity earnings adjustment - DCP Midstream | (5) | (6) | 26 | (10) |
Employee severance, transition and transformation costs | (4) | — | (4) | — |
Other | 13 | 1 | 25 | (10) |
Total adjustments | (611) | (172) | (2,787) | (187) |
EBITDA | 334 | 772 | 230 | 2,733 |
GAS DISTRIBUTION AND STORAGE
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited; millions of Canadian dollars) | ||||
Adjusted EBITDA | 315 | 255 | 1,330 | 1,338 |
Change in unrealized derivative fair value gain | 11 | 1 | 2 | 9 |
Employee severance, transition and transformation costs | (28) | (4) | (43) | (43) |
Other | — | — | (4) | — |
Total adjustments | (17) | (3) | (45) | (34) |
EBITDA | 298 | 252 | 1,285 | 1,304 |
RENEWABLE POWER GENERATION
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 93 | 82 | 361 | 305 |
Change in unrealized derivative fair value gain | — | — | 2 | 2 |
Disposition - MATL transmission assets | — | — | 13 | — |
Other | — | — | — | (7) |
Total adjustments | — | — | 15 | (5) |
EBITDA | 93 | 82 | 376 | 300 |
ENERGY SERVICES
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted earnings/(loss) before interest, income taxes, | (110) | 27 | (37) | 291 |
Change in unrealized derivative fair value gain/(loss) | 73 | 66 | 24 | (56) |
Net inventory adjustment | 3 | (2) | 1 | 83 |
Total adjustments | 76 | 64 | 25 | 27 |
Earnings/(loss) before interest, income taxes and | (34) | 91 | (12) | 318 |
ELIMINATIONS AND OTHER
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted earnings/(loss) before interest, income taxes, | 22 | (26) | 6 | (90) |
Change in unrealized derivative fair value gain/(loss) | 198 | 9 | (115) | 453 |
Change in corporate guarantee obligation | — | — | (74) | — |
Investment write-down loss | — | — | (43) | — |
Employee severance, transition and transformation costs | (5) | (19) | (262) | (45) |
Other | (8) | (4) | (10) | (3) |
Total adjustments | 185 | (14) | (504) | 405 |
Earnings/(loss) before interest, income taxes and | 207 | (40) | (498) | 315 |
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING ACTIVITIES TO DCF
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Cash provided by operating activities | 2,302 | 2,735 | 7,527 | 7,405 |
Adjusted for changes in operating assets and liabilities1 | (110) | (228) | (213) | 451 |
2,192 | 2,507 | 7,314 | 7,856 | |
Distributions to noncontrolling interests4 | (68) | (50) | (232) | (150) |
Preference share dividends | (94) | (96) | (284) | (287) |
Maintenance capital expenditures2 | (256) | (293) | (595) | (741) |
Significant adjusting items: | ||||
Other receipts of cash not recognized in revenue3 | 118 | 53 | 250 | 139 |
Employee severance, transition and transformation costs | 25 | 20 | 304 | 91 |
Distributions from equity investments in excess of cumulative earnings4 | 159 | 17 | 412 | 207 |
Other items | 12 | (53) | 62 | 58 |
DCF | 2,088 | 2,105 | 7,231 | 7,173 |
1 | Changes in operating assets and liabilities, net of recoveries. |
2 | Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing pipeline system or that are necessary to maintain the service capability of the existing assets (including the replacement of components that are worn, obsolete or completing their useful lives). For the purpose of DCF, maintenance capital excludes expenditures that extend asset useful lives, increase capacities from existing levels or reduce costs to enhance revenues or provide enhancements to the service capability of the existing assets. |
3 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
4 | Presented net of adjusting items. |
View original content:http://www.prnewswire.com/news-releases/enbridge-reports-strong-third-quarter-and-reaffirms-2020-financial-guidance-301167690.html
SOURCE Enbridge Inc.
Article Date
11/6/202011/4/2020 - Enbridge Declares Quarterly Dividends
Enbridge Declares Quarterly Dividends
Source: PR Newswire
CALGARY, AB, Nov. 4, 2020 /PRNewswire/ - The Board of Directors of Enbridge Inc. (TSX: ENB) (NYSE: ENB) has declared a quarterly dividend of $0.81 per common share, payable on December 1, 2020 to shareholders of record on November 13, 2020. The amount of the dividend is consistent with the September 1, 2020 dividend.
The Board also declared the following quarterly dividends for Enbridge Inc. Preferred Shares. All dividends are payable on December 1, 2020 to shareholders of record on November 13, 2020. All amounts shown are in Canadian dollars unless otherwise specified.
Common Shares | $0.81 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C | $0.15975 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P | $0.27369 |
Preference Shares, Series R | $0.25456 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 3 | $0.23356 |
Preference Shares, Series 5 | US$0.33596 |
Preference Shares, Series 7 | $0.27806 |
Preference Shares, Series 9 | $0.25606 |
Preference Shares, Series 11 | $0.24613 |
Preference Shares, Series 13 | $0.19019 |
Preference Shares, Series 15 | $0.18644 |
Preference Shares, Series 17 | $0.321875 |
Preference Shares, Series 19 | $0.30625 |
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-declares-quarterly-dividends-301166399.html
SOURCE Enbridge Inc.
Article Date
11/4/2020Enbridge Inc. to Host Webcast to Discuss 2020 Third Quarter Results on November 6
Source: PR Newswire
CALGARY, AB, Oct. 13, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) will host a conference call and webcast to provide an enterprise-wide business update and review 2020 third quarter results on November 6, 2020, at 7:00 a.m. MT (9:00 a.m. ET).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
Enbridge will announce third quarter results before markets open on November 6, 2020.
2020 Third Quarter Earnings Webcast and Conference Call
When: | Friday Nov. 6, 2020 | |
7:00 a.m. MT (9:00 a.m. ET) | ||
Webcast: | ||
Call: | Dial-in # (Audio only – please dial in 10 minutes ahead): | |
North America Toll Free: | 1 (877) 930-8043 | |
Outside North America: | 1 (253) 336-7522 | |
Participant Passcode: | 9737258 | |
A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the company website within approximately 24 hours.
Replay: | Audio Replay # (Available for 7 days after call): | |
North America Toll Free: | 1 (855) 859-2056 | |
Outside North America: | 1 (404) 537-3406 | |
Replay Passcode: | 9737258 | |
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-to-host-webcast-to-discuss-2020-third-quarter-results-on-november-6-301151399.html
SOURCE Enbridge Inc.
Article Date
10/13/2020CEO Al Monaco to participate in virtual fireside chat with J.P. Morgan on Enbridge's industry leading approach to ESG
Source: PR Newswire
CALGARY, AB, Sept. 21, 2020 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX: ENB) announced that Al Monaco, President and Chief Executive Officer of Enbridge, will participate in a fireside chat later this morning hosted by J.P. Morgan's Jeremy Tonet focused on the Company's industry leading environmental, social and governance (ESG) practices and continued focus on growing its renewable power business through European offshore wind development.
An updated ESG investor presentation outlining the Company's approach and performance on the key areas of environmental, social and governance has been posted to Enbridge's website at 'Events and Presentations'.
For members of the public and media unable to attend the event, a video replay of the fireside chat will be posted to the Company's website at the following link ('Events and Presentations') within 48 hours.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
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SOURCE Enbridge Inc.
Article Date
9/21/2020Enbridge To Resume Operation of East Segment of Line 5 In the Straits of Mackinac
Source: PR Newswire
CALGARY, AB and LANSING, Mich., Sept. 9, 2020 /PRNewswire/ - Enbridge (TSX: ENB) (NYSE: ENB) will restart the east segment of Line 5 in the Straits of Mackinac after receiving authorization from the Pipeline and Hazardous Materials Safety Administration (PHMSA) and approval from the Michigan Circuit Court.
Vern Yu, Executive Vice President and President of Liquids Pipelines said, "The decision to allow the restart of the east segment of Line 5 is very positive for the many residents and businesses in Michigan and the Great Lakes region who depend on the energy Line 5 delivers. Enbridge will continue to focus on the safe operation of the dual Line 5 pipelines at the Straits of Mackinac, ensuring the Great Lakes are protected while also reliably delivering the energy and feedstock that helps to fuel Michigan's and the region's economy."
Enbridge has throughout this period kept the State of Michigan fully advised of the status of the west and east segment investigations and will continue to do so.
Following a review of the data from an in-line inspection of the east segment in the area around the damaged screw anchor, PHMSA indicated in a letter to Enbridge dated September 4, 2020, that, "The review by PHMSA and its independent third-party expert did not identify any integrity issues. As no integrity issues have been identified in the area around the displaced anchor, PHMSA has no objection to Enbridge restarting the east leg of Line 5."
The west segment returned to operation in July.
Line 5 has served Michiganders safely without incident at the Straits crossing for more than 65 years. Our focus remains on protecting the Great Lakes, the environment and all the people who use these waters while delivering energy that people rely on daily and that fuels our economy.
As safety and protecting the environment are as important to us as they are to all Michiganders, we continue to work toward and look forward to the day when a replacement for the Line 5 dual pipelines is encased safely in a tunnel below the waters of the Straits of Mackinac.
Forward Looking Information
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements in this news release with regards to the Line 5 dual pipelines include the impact of government and regulatory actions, approvals and litigation on ongoing and future operations.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-to-resume-operation-of-east-segment-of-line-5-in-the-straits-of-mackinac-301126893.html
SOURCE Enbridge Inc.
Article Date
9/9/2020Enbridge Announces Conversion Results for Series 15 Preferred Shares
Source: PR Newswire
CALGARY, AB, Aug. 17, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that none of its outstanding Cumulative Redeemable Preference Shares, Series 15 (Series 15 Shares) will be converted into Cumulative Redeemable Preference Shares, Series 16 of Enbridge (Series 16 Shares) on September 1, 2020.
After taking into account all conversion notices received from holders of its outstanding Series 15 Shares by the August 17, 2020 deadline for the conversion of the Series 15 Shares into Series 16 Shares, less than the 1,000,000 Series 15 Shares required to give effect to conversions into Series 16 Shares were tendered for conversion.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-conversion-results-for-series-15-preferred-shares-301113535.html
SOURCE Enbridge Inc.
Article Date
8/17/2020Enbridge Provides Notice of Series 15 Preferred Shares Conversion Right and Announces Reset Dividend Rates
Source: PR Newswire
CALGARY, AB, August 4, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series 15 (Series 15 Shares) (TSX: ENB.PF.G) on September 1, 2020. As a result, subject to certain conditions, the holders of the Series 15 Shares have the right to convert all or part of their Series 15 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 16 of Enbridge (Series 16 Shares) on September 1, 2020. Holders who do not exercise their right to convert their Series 15 Shares into Series 16 Shares will retain their Series 15 Shares.
The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series 15 Shares outstanding after September 1, 2020, then all remaining Series 15 Shares will automatically be converted into Series 16 Shares on a one-for-one basis on September 1, 2020; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 16 Shares outstanding after September 1, 2020, no Series 15 Shares will be converted into Series 16 Shares. There are currently 11,000,000 Series 15 Shares outstanding.
With respect to any Series 15 Shares that remain outstanding after September 1, 2020, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series 15 Shares for the five-year period commencing on September 1, 2020 to, but excluding, September 1, 2025 will be 2.983 percent, being equal to the five-year Government of Canada bond yield of 0.303 percent determined as of today plus 2.68 percent in accordance with the terms of the Series 15 Shares.
With respect to any Series 16 Shares that may be issued on September 1, 2020, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series 16 Shares for the three-month floating rate period commencing on September 1, 2020 to, but excluding, December 1, 2020 will be 0.70861 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 0.17 percent plus 2.68 percent in accordance with the terms of the Series 16 Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.
Beneficial holders of Series 15 Shares who wish to exercise their right of conversion during the conversion period, which runs from August 2, 2020 until 5:00 p.m. (EST) on August 17, 2020, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.
Forward-Looking Statements
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge, including statements with respect to the conversion of all or part of the Series 15 Shares into Series 16 Shares on September 1, 2020, the annual dividend rate that will apply to any outstanding Series 15 Shares on September 1, 2020, the quarterly dividend rate that will apply to any Series 16 Shares on September 1,2020, and the declaration of dividends by the Board of Directors of Enbridge. This information may not be appropriate for other purposes. Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and on processes used to prepare the information, such statements are not guarantees of future events and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual events to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about whether holders of Series 15 Shares will exercise their right to convert their Series 15 Shares into Series 16 Shares.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-provides-notice-of-series-15-preferred-shares-conversion-right-and-announces-reset-dividend-rates-301106018.html
SOURCE Enbridge Inc.
Article Date
8/4/20207/29/2020 - Enbridge Reports Strong Second Quarter
Enbridge Reports Strong Second Quarter
Source: PR Newswire
CALGARY, AB, July 29, 2020 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) today reported second quarter 2020 financial results and provided a quarterly business update.
Second Quarter 2020 Highlights
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
CEO COMMENT - Al Monaco, President and Chief Executive Officer
"The COVID-19 pandemic has had an unprecedented impact on our society, our economies and the global energy industry. At Enbridge, we responded quickly and effectively to ensure safe and uninterrupted energy delivery to our customers across North America while protecting the health of our people. As COVID unfolded early in the year, we enacted plans to further bolster our operational and financial strength to protect against a prolonged downturn, and to mitigate the impact of lower throughput on our liquids Mainline system. We have weathered the near-term effects of the pandemic on our business well - and I'm very proud of the entire Enbridge team and how we have met the challenge.
"Over the last three years we have been focused on building an even more resilient business, which put us in a strong position coming into 2020, pre-COVID. We've materially diversified the business mix to natural gas, sold our gas gathering and processing business and significantly reduced leverage while moving to an equity self-funding model. We have also simplified our corporate structure, reduced overhead and successfully executed $30 billion of capital projects.
"This year we're taking additional action to further reinforce our financial strength and flexibility. We took advantage of strong debt markets to raise $6.9 billion of capital at attractive rates, which addresses our 2020 growth capital needs, and available liquidity has been increased to $14 billion, which means we don't need to access the capital markets through 2021. We also have now fully enabled cost reductions for 2020.
"In the face of the worst energy downturn our industry has ever experienced, the strength and resilience of our assets was demonstrated once again in the second quarter, with solid financial results. We achieved DCF per share of $1.21, which exceeded our expectations for the second quarter and for the first half of the year. While there will be headwinds in the second half of 2020, which will temper favourable first half results, we expect to achieve our full year guidance range of $4.50 to $4.80 DCF per share.
"All of our business units performed well and contributed to the strong second quarter results. Most notably, Gas Transmission along with Gas Distribution and Storage both saw high utilization and favorable decisions on rates. In Liquids Pipelines, Mainline throughput was about 400 thousand barrels per day lower than our first quarter results however, throughput has been improving steadily and in-line with our expectations. This trend reflects the strong competitive position of the Midwest and Gulf Coast refineries that take Canadian heavy barrels off of our system.
"Despite the COVID disruption, we've made good progress on our strategic priorities this quarter. We are progressing our $11 billion secured capital program, including Line 3 in Minnesota, where we've now completed the regulatory process related to the Environmental Impact Statement, Certificate of Need and Route Permit. And, the Pollution Control Agency has established a firm timeline to finalize construction permits by November 14th.
"This quarter we sanctioned $1 billion of newly secured growth projects comprised of four gas utility projects and another European offshore wind project. Our Mainline contract application review is also in full swing; the CER issued a hearing order outlining the key steps in the process and we're providing evidence that demonstrates the value that Mainline contracting will deliver to customers and to ensure the value of western Canadian resources are maximized.
"In summary, the first half 2020 performance has been stronger than expected, highlighting the resiliency of our business and our ability to deliver solid results in difficult market conditions. We remain focused on executing our secured capital program, which combined with growth embedded within our business, is expected to deliver 5 to 7% annual DCF per share growth through 2022."
FINANCIAL RESULTS REVIEW AND 2020 FINANCIAL OUTLOOK
Financial results for three and six months ended June 30, 2020, are summarized in the table below:
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts; | ||||
GAAP Earnings attributable to common shareholders | 1,647 | 1,736 | 218 | 3,627 |
GAAP Earnings per common share | 0.82 | 0.86 | 0.11 | 1.80 |
Cash provided by operating activities | 2,416 | 2,494 | 5,225 | 4,670 |
Adjusted EBITDA1 | 3,312 | 3,208 | 7,075 | 6,977 |
Adjusted Earnings1 | 1,133 | 1,349 | 2,801 | 2,989 |
Adjusted Earnings per common share1 | 0.56 | 0.67 | 1.39 | 1.48 |
Distributable Cash Flow1 | 2,437 | 2,310 | 5,143 | 5,068 |
Weighted average common shares outstanding | 2,019 | 2,018 | 2,019 | 2,017 |
1 | Non-GAAP financial measures. Schedules reconciling adjusted EBITDA, adjusted earnings, adjusted earnings per common share and distributable cash flow are available as Appendices to this news release. |
GAAP earnings attributable to common shareholders for the second quarter of 2020 decreased by $89 million or $0.04 per share compared with the same period in 2019. The period-over-period comparability of earnings attributable to common shareholders was impacted by certain unusual, infrequent factors or other non-operating factors, which are noted in the reconciliation schedule included in Appendix A of this news release.
Adjusted EBITDA in the second quarter of 2020 increased by $104 million compared with the same period in 2019.The increase was driven by strong utilization in our Gas pipelines and utility, incremental earnings from positive rate settlements on Texas Eastern, contributions from new assets that were placed into service throughout 2019 and the first quarter of 2020 and Energy Services profits from favourable storage opportunities. These positive business factors were partially offset by lower earnings from Liquids Pipelines due to lower Mainline throughput related to COVID-19 and the absence of contributions from the federally regulated Canadian natural gas gathering and processing business sold on December 31, 2019.
Adjusted earnings in the second quarter of 2020 decreased by $216 million and on a per share basis by $0.11. The decrease was primarily driven by a reduction in capitalized interest and higher depreciation from new assets placed into service throughout 2019, primarily on the Canadian Line 3 replacement program, where the Company is currently earning an interim surcharge until the U.S. portion of Line 3 is completed.
DCF for the second quarter was $2,437 million, an increase of $127 million over the second quarter of 2019 driven largely by the net impact of the operating factors noted above as well as lower maintenance capital due to timing of spend in light of COVID-19. These factors are discussed in detail under Distributable Cashflow.
Detailed segmented financial information and analysis for the second quarter of 2020 can be found below under Adjusted EBITDA by Segments.
Re-affirming 2020 Financial Guidance
Based on its solid performance in the first half and the outlook for the second half, the Company still expects to generate DCF within our original guidance range of $4.50 to $4.80 per share. The Company's outperformance in the first half of the year is expected to be offset by headwinds unique to the second half of 2020. These include the pace and magnitude of recovery in Mainline throughput, a catch up in enterprise-wide maintenance spending consistent with 2020 guidance, lower revenues on the Texas Eastern system due to temporary operating capacity restrictions, and a lower contribution from Energy Services. In addition, the Company continues to expect a favourable U.S. dollar exchange rate which will benefit unhedged cash flows, low interest rates and related financing costs, and the realization of company-wide actions to reduce costs in 2020.
In the first quarter update, the Company provided a revised outlook for Mainline volumes due to the rapid decline in refined products demand brought about by COVID-19, and the resulting cuts to crude oil refining demand. The Company forecasted Mainline volumes to decline by 400 to 600 thousand barrels per day (kbpd) for the second quarter, and an average of 300 kbpd for the last nine months of the year from average expected annual throughput of 2.84 million barrels per day (mbpd). Actual Mainline throughput for the quarter was 2.44 mbpd, which reflects a slightly faster pace of recovery in demand for refined products and higher refinery utilizations, particularly in the U.S. Midwest.
Over the balance of 2020, the Company anticipates a continued but gradual recovery in demand, consistent with our throughput guidance, as travel and border restrictions are lifted and mobility returns to North America. This view is supported by our expectation that the refineries operating in Enbridge's core Mainline system markets (i.e. the United States Midwest, Ontario, Quebec and the United States Gulf Coast) will continue to experience higher utilization rates given their scale, complexity and cost competitiveness. The Company continues to expect that Mainline volumes will be under utilized by 200-400 kbpd in the third quarter and 100-300 kbpd in the fourth quarter, and return to full utilization in early 2021.
BUSINESS PERFORMANCE AND STRATEGIC PRIORITIES UPDATE
Executing on $11 billion of Secured Growth Capital
The Company now has an inventory of approximately $11 billion of secured projects at various stages of execution, including $0.3 billion of new projects announced in Gas Distribution and Storage and $0.7 billion in Renewable Power during the second quarter. Approximately $5 billion of the $11 billion secured growth capital remains to be spent through 2022, net of anticipated project level financing provided by third parties. Details on these newly secured projects are outlined in the "business updates" sections below.
Overall, these secured projects are scheduled to come into service between 2020 and 2023 and once placed in service will provide approximately $2.5 billion of incremental cash flows and drive highly transparent growth over the near to medium term horizon. The individual projects that make up the secured program are supported by long-term take-or-pay contracts, cost-of-service frameworks or similar low risk commercial arrangements and are diversified across a wide range of business platforms and regulatory jurisdictions.
During the second quarter, the Company has continued to advance the execution of several secured projects, while assuring that COVID-19 precautionary measures are in place to protect the health of construction crews. Execution progress includes:
Liquids Pipeline Update
Mainline Contracting
In May 2020, the CER announced its plans to immediately commence the regulatory review of the Company's application to implement contracts on the Liquids Canadian Mainline System. The proposed contract offering will replace the current Competitive Toll Settlement (CTS) that is in place until it expires on June 30, 2021.
The CER issued a hearing order outlining the timelines for the regulatory review process which includes two rounds of intervenor information requests, written evidence and Enbridge's replies, concluding in April 2021. The Company expects an oral hearing to occur sometime after April 2021, but a hearing date has not yet been set. If a replacement agreement is not in place by June 30, 2021, the CTS tolls will continue on an interim basis.
During the second quarter, Enbridge responded to its first round of information requests from the CER. The evidence further supports our view that the proposed tolls meet the regulators fair return standards and that the contract offering will serve the public interest. The Mainline contract offering supports the best netbacks for Western Canadian producers, thereby maximizing the value of Western Canadian crude. This is achieved by providing the lowest toll into the best markets and securing long-term demand for Canadian heavy and light barrels.
Line 3 Replacement
The $9 billion Line 3 Replacement Project is a critical integrity replacement project that will enhance the continued safe and reliable operations of our Mainline System well into the future and reflects the importance of protecting the environment.
In December of 2019, the Company placed the $5 billion Canadian segment of the pipeline replacement into service, with an interim surcharge of US$0.20 per barrel.
On the U.S. segment of the project, in the second quarter the MPUC issued its final order to approve the final environmental impact statement (FEIS) and reinstate the Certificate of Need and Route Permit, and subsequently denied all related petitions for reconsideration. This critical milestone substantially concludes the regulatory process and allows for construction of the pipeline, which is expected to take 6 to 9 months, following the issuance of required State and Federal permits.
The MPCA released a draft of the revised 401 Water Quality Certificate permit in February 2020. Following a public comment period, the MPCA announced on June 3, 2020 that it will conduct a contested case hearing regarding the 401 Water Quality Certificate permit. This contested case will be focused on construction methods at water crossings and the appropriate measurement of environmental impacts, rather than route and need for the project, which has already been determined by the MPUC. The contested case hearing is scheduled for August 24-28, 2020, followed by the Administrative Law Judge (ALJ) issuing their report on October 16, 2020. The ALJ's contested case hearing schedule confirms that in order to maintain jurisdiction the MPCA is required by the Clean Water Act to make a final decision regarding the 401 certification by November 14, 2020.
U.S. Army Corps of Engineers (USACE) and the Minnesota Department of Natural Resources (DNR) permitting processes are ongoing and continue to progress in parallel.
At this time, Enbridge cannot determine when all necessary permits to commence construction will be issued and as such has not provided an update to the in-service date for Line 3.
Line 5 Dual Pipelines
Great Lake Tunnel Project
As part of Enbridge's agreement with the State of Michigan, the Company plans to replace its existing Line 5 dual pipelines at the Straits of Mackinac with a pipeline secured in a state-of-the-art tunnel under the Straits. The Michigan Courts have now twice confirmed the constitutionality of the legislation underpinning the agreements and the State of Michigan did not file for leave to appeal to the Supreme Court of Michigan within the requisite time period so this lawsuit has concluded.
This project will make a safe pipeline even safer, demonstrating our ongoing commitment to protect Michigan and the Great Lakes' natural resource. The Company has completed an extensive geotechnical investigation and the engineering design of the tunnel continues to progress on schedule.
Enbridge has filed for all major regulatory and environmental permits, including the joint permit application (JPA) with the Michigan Department of Environment, Great Lakes and Energy (EGLE) and the Army Corps. The JPA covers wetlands and waterway permit requirements from both state and federal agencies and allows for concurrent review of the application by both agencies. In addition, the Company filed a regulatory application to the Michigan Public Service Commission for replacement of the Line 5 pipeline into a tunnel. The Commission has scheduled a public hearing date for August 24, 2020.
Upon receipt of all required permits Enbridge will begin construction of the Line 5 tunnel. Construction and commissioning of the tunnel and pipeline is expected to be completed in late 2024.
East Segment - Line 5
On June 18, 2020, during seasonal maintenance work on Line 5, Enbridge discovered that a screw anchor support had shifted from its original position on the east segment of the dual Straits crossing pipelines. As a preliminary precaution, both the east and west segment of the crossing were immediately shut down and the Company promptly notified the State and its federal regulator, the Pipeline and Hazardous Materials Safety Administration (PHMSA). Following the identification of the shifted anchor, the Company assessed the parallel west segment and the inspections confirmed that the west segment of the crossing is safe and fit for service. PHMSA was notified prior to normal operations commencing on the west segment of Line 5 on June 20, 2020 and did not object to the re-start.
Despite the Company following standard protocol and being in full compliance with its 1953 easement, the west segment was subsequently shut down on June 25, 2020 for five days due to a Temporary Restraining Order issued by the Michigan Circuit Court. On July 1, the Temporary Restraining Order was amended allowing Enbridge to resume service of the west segment and perform an in-line inspection which reconfirmed that the line is safe to operate as there was no damage to the pipeline. The east segment of Line 5 remains shut down as we work with the PHMSA to ensure all safety assessments are complete prior to restarting the east segment of Line 5.
Gas Transmission and Midstream Update
The Company has made several advancements on the regulatory front, further optimizing the base business by ensuring fair and timely cost recovery through rate proceedings. Following on the successful Texas Eastern settlement in the first quarter, the Company received approval from the FERC of its uncontested rate settlement on its Algonquin Gas Transmission pipeline, and approval by the CER of our uncontested rate settlement on the B.C. Pipeline, during the second quarter, resulting in a good outcome for both Enbridge and shippers. The Company has also initiated rate proceedings on East Tennessee Natural Gas and the U.S portions of both the Alliance Pipeline and the Maritimes & Northeast Pipeline.
On May 4, 2020, a rupture occurred on Line 10, a 30-inch natural gas pipeline that makes up part of the Texas Eastern natural gas pipeline system in Fleming County, Kentucky. There were no reported injuries or damaged structures as a result of the rupture. Texas Eastern crews isolated all three pipelines in this corridor as part of the initial incident response and investigation. The Line 25 36-inch pipeline has since been returned to service. The National Transportation Safety Board is working with the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Enbridge to investigate the incident. On June 1, 2020, the PHMSA issued an amendment to the Lincoln County Corrective Action Order (CAO) addressing the Fleming County rupture. Texas Eastern is currently performing precautionary integrity assessments in compliance with the CAO and the Company is focused on restoring the pipeline to full service by the winter heating season.
Gas Distribution and Storage Update
The Company announced today that it is proceeding with $0.3 billion of utility growth capital expenditures including regulated rate base system reinforcements and an enhancement of its unregulated storage facilities at Dawn, Ontario. These projects are expected to come into service between 2021 and 2023.
In May, Enbridge Gas Inc. (EGI) received a positive decision on its 2020 rate filing from the Ontario Energy Board which included approval of 2020 rates and the funding of two discrete incremental capital investments through the incremental capital funding (ICM) mechanism with a total capital cost of $0.1 billion. The ICM mechanism is a regulatory tool that allows for recovery of the revenue requirement for certain incremental capital additions, beyond what is funded through previously approved rates. This 2020 filing represents the second year of a five-year incentive rate structure.
The Company continues to advance the capture of synergies from the amalgamation of Enbridge Gas Distribution Inc. and Union Gas Limited.
Renewable Power Update
Enbridge has investments in 24 facilities in North America and now has several investments in offshore wind projects in Europe, both in the development stage as well as operational. In June of 2020, the Company announced that it is moving forward with the 500 MW Fécamp offshore wind farm, which is comprised of 71 wind turbines off the coast of northwest France, providing annual electricity to meet the power needs for 770,000 people.
Enbridge has a 35% interest in the project (17.9% after completion of the CPP Investment transaction discussed below) with partners EDF Renewables and wpd holding the remaining interest. The total project capital cost is estimated to be EUR2 billion, of which the majority will be financed through non-recourse project level debt. The project is underpinned by a 20-year fixed price power purchase agreement with the French State and project commissioning is expected in 2023.
In the first quarter, Enbridge announced the execution of agreements whereby 49% of an entity that holds Enbridge's 50% interest in Éolien Maritime France SAS (EMF) will be sold to CPP Investments. The Company's investment in Fécamp is held through its 50% interest in EMF. Completion of the transaction is subject to customary regulatory approvals and is anticipated to close in the fourth quarter of 2020.
STRONG FINANCIAL POSITION AND SELF FUNDING MODEL INTACT
The Company has exited the second quarter in a strong financial position with over $14 billion of liquidity and having completed its 2020 funding plan. The equity-self funding model remains intact and debt to EBITDA is expected to remain comfortably well-within the target range of 4.5x to 5.0x for the full year.
The Company continued to secure additional debt financing at attractive rates and proceeds from these offerings were primarily used to reduce existing indebtedness and partially fund capital projects.
In May, the Company raised $1.3 billion with a dual tranche offering of 5-year and 7-year notes in the Canadian debt capital markets at a weighted average coupon rate of 2.65%. In addition, subsequent to the second quarter, Enbridge raised an additional US$1.0 billion of 60-year hybrid subordinated notes in the United States debt capital markets. These hybrid notes qualify for 50% equity treatment from most rating agencies which further bolsters the Company's financial strength.
In late July, the Company successfully renegotiated and extended approximately $10 billion of its 364-day extendible credit facilities to July 2021, with the option of a term out date to July 2022.
The above actions have positioned the Company to fund all of our capital projects and any debt maturities through 2021 in the event capital markets are inaccessible.
EXECUTIVE LEADERSHIP CHANGES
The Company is announcing that Executive Vice President & Chief Development Officer, John Whelen, will retire, effective October 31. Over the last 28 years, Mr. Whelen has played a pivotal role in Enbridge's growth and evolution, holding several senior leadership roles in Finance and Corporate Development. From 2014 to 2019, Mr. Whelen held the role of Chief Financial Officer, where he oversaw the financial design and execution of several very significant funding and investment transactions, including Enbridge's $37 Billion acquisition of Spectra.
"Along the way John has played a key role in helping build Enbridge's financial foundation and laying the groundwork for our Company's growth and success", said President and CEO Al Monaco. "He will leave a lasting legacy at Enbridge, and we wish him and his family the very best in the future."
John's role will be filled by current members of our Executive Leadership Team. Matthew Akman will continue in his role as Senior Vice President, Strategy and Power, and Allen Capps will expand his corporate development portfolio to include our energy marketing business as Senior Vice President, Corporate Development and Energy Services. Both Mr. Akman and Mr. Capps will report directly to Al Monaco, President and Chief Executive Officer effective September 15.
SECOND QUARTER 2020 FINANCIAL RESULTS
The following table summarizes the Company's GAAP reported results for segment EBITDA, earnings attributable to common shareholders, and cash provided by operating activities for the second quarter of 2020.
GAAP SEGMENT EBITDA AND CASH FLOW FROM OPERATIONS
Three months ended | Six months ended | ||||
2020 | 2019 | 2020 | 2019 | ||
(unaudited, millions of Canadian dollars) | |||||
Liquids Pipelines | 2,340 | 1,992 | 3,190 | 4,064 | |
Gas Transmission and Midstream | 950 | 941 | (104) | 1,961 | |
Gas Distribution and Storage | 383 | 390 | 987 | 1,052 | |
Renewable Power Generation | 163 | 94 | 283 | 218 | |
Energy Services | (99) | 221 | 22 | 227 | |
Eliminations and Other | 261 | 107 | (705) | 355 | |
EBITDA | 3,998 | 3,745 | 3,673 | 7,877 | |
Earnings attributable to common shareholders | 1,647 | 1,736 | 218 | 3,627 | |
Cash provided by operating activities | 2,416 | 2,494 | 5,225 | 4,670 | |
For purposes of evaluating performance, the Company makes adjustments for unusual, infrequent or other non-operating factors to GAAP reported earnings, segment EBITDA, and cash flow provided by operating activities, which allow Management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
DISTRIBUTABLE CASH FLOW
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Liquids Pipelines | 1,744 | 1,766 | 3,663 | 3,495 |
Gas Transmission and Midstream | 975 | 936 | 2,072 | 1,976 |
Gas Distribution and Storage | 406 | 390 | 1,015 | 1,083 |
Renewable Power Generation | 150 | 100 | 268 | 223 |
Energy Services | 86 | 88 | 73 | 264 |
Eliminations and Other | (49) | (72) | (16) | (64) |
Adjusted EBITDA1,3 | 3,312 | 3,208 | 7,075 | 6,977 |
Maintenance capital | (135) | (269) | (339) | (448) |
Interest expense1 | (709) | (662) | (1,420) | (1,346) |
Current income tax1 | (134) | (53) | (242) | (211) |
Distributions to noncontrolling interests1 | (88) | (54) | (164) | (100) |
Cash distributions in excess of equity earnings1 | 210 | 189 | 282 | 283 |
Preference share dividends | (94) | (96) | (190) | (191) |
Other receipts of cash not recognized in revenue2 | 81 | 33 | 132 | 86 |
Other non-cash adjustments | (6) | 14 | 9 | 18 |
DCF3 | 2,437 | 2,310 | 5,143 | 5,068 |
Weighted average common shares outstanding | 2,019 | 2,018 | 2,019 | 2,017 |
1 | Presented net of adjusting items. |
2 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
3 | Schedules reconciling adjusted EBITDA and DCF are available as Appendices to this news release. |
Second quarter 2020 DCF increased $127 million compared with the same period of 2019. Key performance drivers of quarter-over-quarter increase included:
ADJUSTED EARNINGS | Three months ended | Six months ended | ||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Adjusted EBITDA2 | 3,312 | 3,208 | 7,075 | 6,977 |
Depreciation and amortization | (949) | (842) | (1,831) | (1,682) |
Interest expense1 | (695) | (643) | (1,391) | (1,311) |
Income taxes1 | (404) | (279) | (855) | (767) |
Noncontrolling interests1 | (37) | 1 | (7) | (37) |
Preference share dividends | (94) | (96) | (190) | (191) |
Adjusted earnings2 | 1,133 | 1,349 | 2,801 | 2,989 |
Adjusted earnings per common share | 0.56 | 0.67 | 1.39 | 1.48 |
1 | Presented net of adjusting items. |
2 | Schedules reconciling adjusted EBITDA and adjusted earnings are available as Appendices to this news release. |
Adjusted earnings decreased $216 million and adjusted earnings per share decreased $0.11 compared with the first quarter in 2019. Growth in adjusted EBITDA was driven by the same factors impacting business performance and adjusted EBITDA as discussed under Distributable Cash Flow above, partially offset by the following factors:
ADJUSTED EBITDA BY SEGMENTS
Adjusted EBITDA by segment is reported on a Canadian dollar basis. Adjusted EBITDA generated from U.S. dollar denominated businesses was translated at a higher average Canadian dollar exchange rate in the second quarter of 2020 (C$1.39/US$) when compared with the corresponding 2019 period (C$1.34/US$).
A portion of the U.S. dollar earnings is hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
LIQUIDS PIPELINES
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Mainline System1 | 969 | 950 | 2,076 | 1,914 |
Regional Oil Sands System | 199 | 203 | 410 | 430 |
Gulf Coast and Mid-Continent System | 257 | 265 | 501 | 481 |
Other2 | 319 | 348 | 676 | 670 |
Adjusted EBITDA3 | 1,744 | 1,766 | 3,663 | 3,495 |
Operating Data (average deliveries – thousands of bpd) | ||||
Mainline System - ex-Gretna volume4 | 2,439 | 2,661 | 2,641 | 2,689 |
Regional Oil Sands System5 | 1,399 | 1,818 | 1,632 | 1,785 |
International Joint Tariff (IJT)6 | $4.21 | $4.15 | $4.21 | $4.15 |
1 | Mainline System includes the Canadian Mainline and the Lakehead System, which were previously reported separately. |
2 | Included within Other are Southern Lights Pipeline, Express-Platte System, Bakken System and Feeder Pipelines & Other. |
3 | Schedules reconciling adjusted EBITDA are provided in the Appendices to this news release. |
4 | Mainline System throughput volume represents mainline system deliveries ex-Gretna, Manitoba which is made up of United States and eastern Canada deliveries originating from Western Canada. |
5 | Volumes are for the Athabasca mainline, Athabasca Twin, Waupisoo Pipeline and Woodland Pipeline and exclude laterals on the Regional Oil Sands System. |
6 | The IJT benchmark toll and its components are set in U.S. dollars and the majority of the Company's foreign exchange risk on the Canadian portion of the Mainline is hedged. The Canadian portion of the Mainline represents approximately 45% of total Mainline System revenue and the average effective FX rate for the Canadian portion of the Mainline during the second quarter of 2020 was C$1.17/US$ (Q2 2019: C$1.19/US$). |
The U.S. portion of the Mainline System is subject to FX translation similar to the Company's other U.S. based businesses, which are translated at the average spot rate for a given period. A portion of this U.S. dollar translation exposure is hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other. |
Liquids Pipelines adjusted EBITDA decreased $22 million compared to the second quarter of 2019 primarily as a result of the following factors:
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
US Gas Transmission1 | 791 | 672 | 1,655 | 1,417 |
Canadian Gas Transmission1 | 105 | 164 | 243 | 352 |
US Midstream | 35 | 51 | 80 | 103 |
Other | 44 | 49 | 94 | 104 |
Adjusted EBITDA2 | 975 | 936 | 2,072 | 1,976 |
1 | US Gas Transmission includes the Canadian portion of the Maritimes & Northeast Pipeline which was previously included in Canadian Gas Transmission. The comparable 2019 adjusted EBITDA has been restated to reflect this change. |
2 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Gas Transmission and Midstream adjusted EBITDA increased $39 million compared to the second quarter of 2019 primarily due to the following factors:
GAS DISTRIBUTION AND STORAGE
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Enbridge Gas Inc. (EGI) | 385 | 373 | 959 | 1,015 |
Other | 21 | 17 | 56 | 68 |
Adjusted EBITDA1 | 406 | 390 | 1,015 | 1,083 |
Operating Data | ||||
EGI | ||||
Volumes (billions of cubic feet) | 351 | 340 | 989 | 1,059 |
Number of active customers (thousands)2 | 3,750 | 3,723 | ||
Heating degree days3 | ||||
Actual | 606 | 593 | 2,333 | 2,639 |
Forecast based on normal weather4 | 516 | 516 | 2,439 | 2,438 |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
2 | Number of active customers is the number of natural gas consuming customers at the end of the reported period. |
3 | Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in EGI's distribution franchise areas. |
4 | Normal weather is the weather forecast by EGI in its legacy rate zones, using the forecasting methodologies approved by the Ontario Energy Board. |
Gas Distribution and Storage adjusted EBITDA will typically follow a seasonal profile. It is generally highest in the first and fourth quarters of the year reflecting greater volumetric demand during the heating season. The magnitude of the seasonal EBITDA fluctuations will vary from year-to-year reflecting the impact of colder or warmer than normal weather on distribution volumes.
Gas Distribution and Storage adjusted EBITDA increased $16 million compared to the second quarter of 2019 primarily due to:
The positive business factors above were partially offset by the absence of earnings in 2020 from Enbridge Gas New Brunswick and St. Lawrence Gas Company, Inc. which were sold on October 1, 2019, and November 1, 2019, respectively.
RENEWABLE POWER GENERATION
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA1 | 150 | 100 | 268 | 223 |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Renewable Power Generation adjusted EBITDA increased $50 million compared to second quarter of 2019 primarily due to:
These factors were partially offset by higher mechanical repair costs at certain United States wind facilities.
ENERGY SERVICES
Three months ended | Six months ended | ||||
2020 | 2019 | 2020 | 2019 | ||
(unaudited, millions of Canadian dollars) | |||||
Adjusted EBITDA1 | 86 | 88 | 73 | 264 | |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Energy Services adjusted EBITDA decreased $2 million compared to the second quarter of 2019 as a result of compression of location and quality differentials in certain markets which lead to fewer opportunities to achieve profitable margins on capacity obligations, partially offset by favorable storage opportunities.
ELIMINATIONS AND OTHER
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Operating and administrative recoveries | 29 | (11) | 108 | 52 |
Realized foreign exchange hedge settlements | (78) | (61) | (124) | (116) |
Adjusted EBITDA1 | (49) | (72) | (16) | (64) |
1 | Schedules reconciling adjuted EBITDA are available as Appendices to this news release. |
Operating and administrative recoveries captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) inclusive of amounts recovered from business units for the provision of those services. Also, as previously noted, U.S. dollar denominated earnings within the segment results are translated at average foreign exchange rates during the quarter. The offsetting impact of settlements made under the Company's enterprise foreign exchange hedging program are captured in this segment.
Eliminations and Other adjusted EBITDA increased $23 million compared with the second quarter of 2019. Key quarter-over-quarter performance drivers included:
CONFERENCE CALL
Enbridge will host a conference call and webcast on July 29, 2020 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to provide an enterprise wide business update and review 2020 second quarter financial results. Analysts, members of the media and other interested parties can access the call toll free at (877) 930-8043 or within and outside North America at (253) 336-7522 using the access code of 5290259#. The call will be audio webcast live at https://edge.media-server.com/mmc/p/ih678xin. It is recommended that participants dial in or join the audio webcast fifteen minutes prior to the scheduled start time. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available for seven days after the call toll-free (855) 859-2056 or within and outside North America at (404) 537-3406 (access code 5290259#).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
DIVIDEND DECLARATION
The Company's Board of Directors declared the following quarterly dividends, payable on September 1, 2020, to shareholders of record on August 14, 2020.
Dividend per share | |
Common Shares1 | $0.81000 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C2 | $0.16779 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P | $0.27369 |
Preference Shares, Series R | $0.25456 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 3 | $0.23356 |
Preference Shares, Series 5 | US$0.33596 |
Preference Shares, Series 7 | $0.27806 |
Preference Shares, Series 9 | $0.25606 |
Preference Shares, Series 113 | $0.24613 |
Preference Shares, Series 134 | $0.19019 |
Preference Shares, Series 15 | $0.27500 |
Preference Shares, Series 17 | $0.32188 |
Preference Shares, Series 19 | $0.30625 |
1 | The quarterly dividend per common share was increased 9.8% to $0.81 from $0.738, effective March 1, 2020. |
2 | The quarterly dividend per share paid on Series C was decreased to $0.16779 from $0.25458 on June 1, 2020 and was increased to $0.25458 from $0.25305 on March 1, 2020, due to reset on a quarterly basis following the date of issuance of the Series C Preference Shares. |
3 | The quarterly dividend per share paid on Series 11 was decreased to $0.24613 from $0.275 on March 1, 2020, due to the reset of the annual dividend on March 1, 2020, and every five years thereafter. |
4 | The quarterly dividend per share paid on Series 13 was decreased to $0.19019 from $0.275 on June 1, 2020, due to the reset of the annual dividend on June 1, 2020, and every five years thereafter. |
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: Enbridge's corporate vision and strategy, including strategic priorities and enablers; 2020 financial guidance; the COVID-19 pandemic and the duration and impact thereof; anticipated reductions in operating costs and deferrals of secured growth capital spend; the expected supply of, demand for and prices of crude oil, natural gas, natural gas liquids, liquified natural gas and renewable energy; anticipated utilization of our existing assets, including throughput on the Mainline; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected DCF or DCF per share; expected future cash flows; expected performance of the Company's businesses; expected debt-to-EBITDA ratio; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected costs related to announced projects and projects under construction and for maintenance; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected future growth and expansion opportunities; expectations about the Company's joint ventures and our partners' ability to complete and finance announced projects and projects under construction; expected closing of acquisitions and dispositions and the timing thereof; expected benefits of transactions, including the realization of efficiencies and synergies; expected future actions of regulators and courts; toll and rate case discussions and filings, including Mainline Contracting and the anticipated benefits thereof; United States Line 3 Replacement Program; Line 5 dual pipelines and related matters; Line 10 of the Texas Eastern system; interest rates; and exchange rates.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the COVID-19 pandemic and the duration and impact thereof; anticipated reductions in operating costs and deferrals of secured growth; the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy, including the current weakness and volatility of such prices; anticipated utilization of our existing assets; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the timing and closing of acquisitions and dispositions; the realization of anticipated benefits and synergies of transactions; governmental legislation; litigation; impact of the Company's dividend policy on its future cash flows; credit ratings; capital project funding; hedging program; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation, interest rates and the COVID-19 pandemic impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected EBITDA, expected adjusted EBITDA, earnings/(loss), expected adjusted earnings/(loss), expected DCF and associated per share amounts, or estimated future dividends. The most relevant assumptions associated with forward-looking statements regarding announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; and the COVID-19 pandemic and the duration and impact thereof.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the realization of anticipated benefits and synergies of projects and transactions; successful execution of our strategic priorities, operating performance, the Company's dividend policy, regulatory parameters, changes in regulations applicable to the Company's business, litigation, acquisitions and dispositions and other transactions, project approval and support, renewals of rights-of-way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, political decisions, exchange rates, interest rates, commodity prices, supply of and demand for commodities and the COVID-19 pandemic, including but not limited to those risks and uncertainties discussed in this and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
ABOUT ENBRIDGE INC.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise part of this news release.
FOR FURTHER INFORMATION PLEASE CONTACT: | |
Enbridge Inc. – Media | Enbridge Inc. – Investment Community |
Jesse Semko | Jonathan Morgan |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com | Email: investor.relations@enbridge.com |
NON-GAAP RECONCILIATIONS APPENDICES
This news release contains references to adjusted EBITDA, adjusted earnings, adjusted earnings per common share, and DCF. Management believes the presentation of these metrics gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Adjusted EBITDA represents EBITDA adjusted for unusual, infrequent or other non-operating factors on both a consolidated and segmented basis. Management uses adjusted EBITDA to set targets and to assess the performance of the Company and its Business Units.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, infrequent or other non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, infrequent or other non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes, and noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another measure of the Company's ability to generate earnings.
DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, infrequent or other non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
Reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly certain contingent liabilities, and non-cash unrealized derivative fair value losses and gains which are subject to market variability. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without unreasonable effort.
Our non-GAAP measures described above are not measures that have standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers.
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON-GAAP RECONCILIATIONS – ADJUSTED EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Liquids Pipelines | 2,340 | 1,992 | 3,190 | 4,064 |
Gas Transmission and Midstream | 950 | 941 | (104) | 1,961 |
Gas Distribution and Storage | 383 | 390 | 987 | 1,052 |
Renewable Power Generation | 163 | 94 | 283 | 218 |
Energy Services | (99) | 221 | 22 | 227 |
Eliminations and Other | 261 | 107 | (705) | 355 |
EBITDA | 3,998 | 3,745 | 3,673 | 7,877 |
Depreciation and amortization | (949) | (842) | (1,831) | (1,682) |
Interest expense | (681) | (637) | (1,387) | (1,322) |
Income tax expense | (591) | (436) | (42) | (1,020) |
(Earnings)/loss attributable to noncontrolling interests | (36) | 2 | (5) | (35) |
Preference share dividends | (94) | (96) | (190) | (191) |
Earnings attributable to common shareholders | 1,647 | 1,736 | 218 | 3,627 |
ADJUSTED EBITDA TO ADJUSTED EARNINGS
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Liquids Pipelines | 1,744 | 1,766 | 3,663 | 3,495 |
Gas Transmission and Midstream | 975 | 936 | 2,072 | 1,976 |
Gas Distribution and Storage | 406 | 390 | 1,015 | 1,083 |
Renewable Power Generation | 150 | 100 | 268 | 223 |
Energy Services | 86 | 88 | 73 | 264 |
Eliminations and Other | (49) | (72) | (16) | (64) |
Adjusted EBITDA | 3,312 | 3,208 | 7,075 | 6,977 |
Depreciation and amortization | (949) | (842) | (1,831) | (1,682) |
Interest expense | (695) | (643) | (1,391) | (1,311) |
Income tax expense | (404) | (279) | (855) | (767) |
(Earnings)/loss attributable to noncontrolling interests | (37) | 1 | (7) | (37) |
Preference share dividends | (94) | (96) | (190) | (191) |
Adjusted earnings | 1,133 | 1,349 | 2,801 | 2,989 |
Adjusted earnings per common share | 0.56 | 0.67 | 1.39 | 1.48 |
EBITDA TO ADJUSTED EARNINGS
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
EBITDA | 3,998 | 3,745 | 3,673 | 7,877 |
Adjusting items: | ||||
Change in unrealized derivative fair value (gain)/loss - Foreign exchange | (1,186) | (424) | 770 | (1,024) |
Change in unrealized derivative fair value (gain)/loss - Commodity prices | 525 | (139) | 49 | 122 |
Equity investment impairment - DCP Midstream | — | — | 1,736 | — |
Equity investment asset and goodwill impairment - DCP Midstream | — | — | 324 | — |
Net inventory adjustment - Energy Services | (340) | 6 | 2 | (85) |
Employee severance, transition and transformation costs | 268 | 21 | 279 | 65 |
Texas Eastern re-establishment of EDIT regulated liability | — | — | 159 | — |
Other | 47 | (1) | 83 | 22 |
Total adjusting items | (686) | (537) | 3,402 | (900) |
Adjusted EBITDA | 3,312 | 3,208 | 7,075 | 6,977 |
Depreciation and amortization | (949) | (842) | (1,831) | (1,682) |
Interest expense | (681) | (637) | (1,387) | (1,322) |
Income tax expense | (591) | (436) | (42) | (1,020) |
(Earnings)/loss attributable to noncontrolling interests | (36) | 2 | (5) | (35) |
Preference share dividends | (94) | (96) | (190) | (191) |
Adjusting items in respect of: | ||||
Interest expense | (14) | (6) | (4) | 11 |
Income tax expense | 187 | 157 | (813) | 253 |
(Earnings)/loss attributable to noncontrolling interests | (1) | (1) | (2) | (2) |
Adjusted earnings | 1,133 | 1,349 | 2,801 | 2,989 |
Adjusted earnings per common share | 0.56 | 0.67 | 1.39 | 1.48 |
APPENDIX B
NON-GAAP RECONCILIATION – SEGMENTED EBITDA TO ADJUSTED EBITDA
LIQUIDS PIPELINES
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 1,744 | 1,766 | 3,663 | 3,495 |
Change in unrealized derivative fair value gain/(loss) | 616 | 227 | (450) | 570 |
Asset write-down loss | (13) | (1) | (13) | (1) |
Employee severance, transition and transformation costs | (7) | — | (7) | — |
Other | — | — | (3) | — |
Total adjustments | 596 | 226 | (473) | 569 |
EBITDA | 2,340 | 1,992 | 3,190 | 4,064 |
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 975 | 936 | 2,072 | 1,976 |
Equity investment impairment - DCP Midstream | — | — | (1,736) | — |
Equity investment asset and goodwill impairment - DCP Midstream | — | — | (324) | — |
Equity earnings adjustment - DCP Midstream | (22) | 9 | 31 | (4) |
Texas Eastern re-establishment of EDIT regulated liability | — | — | (159) | — |
Other | (3) | (4) | 12 | (11) |
Total adjustments | (25) | 5 | (2,176) | (15) |
Earnings/(loss) before interest, income taxes and depreciation and amortization | 950 | 941 | (104) | 1,961 |
GAS DISTRIBUTION AND STORAGE
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited; millions of Canadian dollars) | ||||
Adjusted EBITDA | 406 | 390 | 1,015 | 1,083 |
Change in unrealized derivative fair value gain/(loss) | (15) | 4 | (9) | 8 |
Employee severance, transition and transformation costs | (8) | (4) | (15) | (39) |
Other | — | — | (4) | — |
Total adjustments | (23) | — | (28) | (31) |
EBITDA | 383 | 390 | 987 | 1,052 |
RENEWABLE POWER GENERATION
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 150 | 100 | 268 | 223 |
Change in unrealized derivative fair value gain | — | 1 | 2 | 2 |
Disposition - MATL transmission assets | 13 | — | 13 | — |
Other | — | (7) | — | (7) |
Total adjustments | 13 | (6) | 15 | (5) |
EBITDA | 163 | 94 | 283 | 218 |
ENERGY SERVICES
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 86 | 88 | 73 | 264 |
Change in unrealized derivative fair value gain/(loss) | (525) | 139 | (49) | (122) |
Net inventory adjustment | 340 | (6) | (2) | 85 |
Total adjustments | (185) | 133 | (51) | (37) |
Earnings/(loss) before interest, income taxes and depreciation and amortization | (99) | 221 | 22 | 227 |
ELIMINATIONS AND OTHER
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted loss before interest, income taxes, and depreciation and amortization | (49) | (72) | (16) | (64) |
Change in unrealized derivative fair value gain/(loss) | 585 | 192 | (313) | 444 |
Change in corporate guarantee obligation | — | — | (74) | — |
Investment write-down loss | — | — | (43) | — |
Employee severance, transition and transformation costs | (253) | (17) | (257) | (26) |
Other | (22) | 4 | (2) | 1 |
Total adjustments | 310 | 179 | (689) | 419 |
Earnings/(loss) before interest, income taxes and depreciation and amortization | 261 | 107 | (705) | 355 |
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING ACTIVITIES TO DCF
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||||
Cash provided by operating activities | 2,416 | 2,494 | 5,225 | 4,670 |
Adjusted for changes in operating assets and liabilities1 | 91 | 12 | (103) | 679 |
2,507 | 2,506 | 5,122 | 5,349 | |
Distributions to noncontrolling interests4 | (88) | (54) | (164) | (100) |
Preference share dividends | (94) | (96) | (190) | (191) |
Maintenance capital expenditures2 | (135) | (269) | (339) | (448) |
Significant adjusting items: | ||||
Other receipts of cash not recognized in revenue3 | 81 | 33 | 132 | 86 |
Employee severance, transition and transformation costs | 268 | 27 | 279 | 71 |
Distributions from equity investments in excess of cumulative earnings4 | 176 | 129 | 253 | 190 |
Other items | (278) | 34 | 50 | 111 |
DCF | 2,437 | 2,310 | 5,143 | 5,068 |
1 | Changes in operating assets and liabilities, net of recoveries. |
2 | Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing pipeline system or that are necessary to maintain the service capability of the existing assets (including the replacement of components that are worn, obsolete or completing their useful lives). For the purpose of DCF, maintenance capital excludes expenditures that extend asset useful lives, increase capacities from existing levels or reduce costs to enhance revenues or provide enhancements to the service capability of the existing assets. |
3 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
4 | Presented net of adjusting items. |
View original content:http://www.prnewswire.com/news-releases/enbridge-reports-strong-second-quarter-301101740.html
SOURCE Enbridge Inc.
Article Date
7/29/20207/22/2020 - Enbridge Declares Quarterly Dividends
Enbridge Declares Quarterly Dividends
Source: PR Newswire
CALGARY, AB, July 22, 2020 /PRNewswire/ - The Board of Directors of Enbridge Inc. (TSX: ENB) (NYSE: ENB) has declared a quarterly dividend of $0.81 per common share, payable on September 1, 2020 to shareholders of record on August 14, 2020. The amount of the dividend is consistent with the June 1, 2020 dividend.
The Board also declared the following quarterly dividends for Enbridge Inc. Preferred Shares. All dividends are payable on September 1, 2020 to shareholders of record on August 14, 2020. All amounts shown are in Canadian dollars unless otherwise specified.
Common Shares | $0.81 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C | $0.16779 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P | $0.27369 |
Preference Shares, Series R | $0.25456 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 3 | $0.23356 |
Preference Shares, Series 5 | US$0.33596 |
Preference Shares, Series 7 | $0.27806 |
Preference Shares, Series 9 | $0.25606 |
Preference Shares, Series 11 | $0.24613 |
Preference Shares, Series 13 | $0.19019 |
Preference Shares, Series 15 | $0.27500 |
Preference Shares, Series 17 | $0.321875 |
Preference Shares, Series 19 | $0.30625 |
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-declares-quarterly-dividends-301097474.html
SOURCE Enbridge Inc.
Article Date
7/22/2020Enbridge Receives FERC Approval of Rate Settlement on Algonquin Gas Transmission system
Source: PR Newswire
HOUSTON, July 2, 2020 /PRNewswire/ - Enbridge Inc. (Enbridge) (TSX: ENB) (NYSE: ENB) announced today that Algonquin Gas Transmission, LLC (Algonquin) has received approval from the Federal Energy Regulatory Commission (FERC) of its uncontested rate settlement with customers. Additionally, this uncontested Settlement resolves all issues in Docket No. RP19-57-000 and therefore terminated Algonquin's FERC Form No. 501-G proceeding. Algonquin and its customers collaborated to effectively resolve this matter in a mutually satisfactory manner.
Algonquin, an Enbridge-owned natural gas pipeline asset, delivers critical energy supply to New England consumers and surrounding markets, and interconnects with Enbridge-owned Texas Eastern and Maritimes & Northeast pipelines.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-receives-ferc-approval-of-rate-settlement-on-algonquin-gas-transmission-system-301087942.html
SOURCE Enbridge Inc.
Article Date
7/3/2020Enbridge Resumes Partial Operation of Line 5 Dual Pipelines
Source: PR Newswire
CALGARY, AB and LANSING, MI, July 1, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) – Today the Ingham County Circuit Court of the State of Michigan amended its temporary restraining order requiring Enbridge to temporarily shut down the west segment of the Line 5 dual pipelines through the Straits of Mackinac.
Enbridge will now begin safely restarting the west segment and anticipates operations will soon return to normal. Pursuant to the court order, we will conduct an inline inspection tool run on the west segment and share our findings with the State in accordance with the court's orders.
The east segment of Line 5 will remain shut down as we work with our safety regulator, the Pipeline and Hazardous Materials Safety Administration, to ensure all of the safety assessments are complete and data provided prior to restarting the east segment.
Enbridge is committed to sharing this information with the State of Michigan to keep them informed regarding our inspections of the east segment.
Enbridge's Line 5 has served Michiganders safely without incident at the Straits crossing for more than 65 years. We remain willing to work with the State going forward to address issues of concern about the safety of Line 5 and its ultimate replacement with The Great Lakes Tunnel that will contain a new section of pipeline. Enbridge is currently seeking permit approval of the tunnel which, upon completion, will make a safe pipeline even safer.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with regards to the Line 5 dual pipelines, restart of the west segment and regulatory and permitting process, actions, decisions, and the effects thereof.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements in this news release with regards to the Line 5 dual pipelines include the impact of government and regulatory actions, approvals and litigation on ongoing and future operations.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-resumes-partial-operation-of-line-5-dual-pipelines-301087289.html
SOURCE Enbridge Inc.
Article Date
7/1/2020MPUC rules Line 3 Replacement Project's Environmental Impact statement, Certificate of Need and Route Permit are Valid
Source: PR Newswire
CALGARY, AB and DULUTH, Minn., June 26, 2020 /PRNewswire/ - Enbridge Inc. (NYSE: ENB) (TSX: ENB) – The Minnesota Public Utilities Commission (MPUC) voted to deny petitions for reconsideration filed on May 21, 2020 in the Line 3 Replacement Project (L3RP) environmental impact statement (EIS), certificate of need (CN) and route permit (RP) dockets.
"The MPUC's decision to deny the petitions for reconsideration is yet another important step forward for the Line 3 Replacement Project. This decision properly reflects the extensive and complete review that the project has undergone," said Vern Yu, Enbridge Executive Vice-President and President, Liquids Pipelines.
L3RP not only meets Minnesota's energy needs, it replaces an aging pipeline with one built to the newest standards and using modern construction techniques. This is the safest and best option for protecting the environment and communities. Enbridge will continue to work with other permitting agencies towards the timely issuance of the remaining permits and construction is expected to take 6 to 9 months once all permits have been received.
This project is immediately poised to provide significant economic benefits for counties, small businesses, and Native American communities. L3RP is a shovel-ready, US$2.9 billion private investment that will bring 4,200 union construction jobs, millions of dollars in local spending and tax revenues at a time when Northern Minnesota needs it most.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. . Forward-looking information or statements in this news release include statements with respect to the L3RPand expected regulatory and permitting actions and decisions, capital expenditures, construction schedules and anticipated economic and other benefits.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction such as the L3RP, including estimated completion dates and expected capital expenditures, include the following: the COVID-19 pandemic and the duration and impact thereof; the impact of customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; the availability and price of labor and construction materials; the effects of inflation and foreign exchange rates on labor and material costs; the effects of interest rates on borrowing costs; and the impact of weather.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc.is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include liquids pipelines, which transports approximately 25 percent of the crude oil produced in North America; gas transmission and midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; gas distribution and storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and renewable power generation, which generates approximately 1,750 mw of net renewable power in North America and Europe. The company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
View original content:http://www.prnewswire.com/news-releases/mpuc-rules-line-3-replacement-projects-environmental-impact-statement-certificate-of-need-and-route-permit-are-valid-301084224.html
SOURCE Enbridge Inc.
Article Date
6/26/2020Enbridge Responds to Temporary Ruling on Line 5 Operations
Source: PR Newswire
CALGARY, AB and LANSING, MI, June 25, 2020 /PRNewswire/ -Today a Michigan Circuit Court issued a Temporary Restraining Order requiring Enbridge (TSX: ENB) (NYSE: ENB) to shut down Line 5 through the Straits of Mackinac within 24 hours until a hearing on the State's request for preliminary injunction can be held Tuesday, June 30, 2020 and a ruling made on the preliminary injunction.
Vern Yu, Executive Vice President and President of Liquids Pipelines said: "Enbridge is disappointed in the court's ruling as we believe that Line 5 is safe; however, the west leg of Line 5 has been shut down."
The federal Pipeline and Hazardous Materials Safety Administration (PHMSA) has regulatory oversight of the pipeline's operations and fitness for service. Enbridge will be providing the court with the information it has requested relating to PHMSA's approach to assessing the current situation with Line 5, including restart planning for the west leg.
"Inspections have determined that the west segment of Line 5 crossing the Straits is safe for operations and which PHMSA did not object to restarting; we had shut down the east segment of the pipeline pending a review of a disturbance that was discovered on one of the screw anchors and an assessment of the east leg's fitness for service," Yu said.
Enbridge is committed to protecting the environment and the waters of the Great Lakes, while keeping energy flowing safely and reliably to the people who need it.
An extended shutdown of Line 5 would threaten fuel supplies in Michigan and Ohio resulting in critical gasoline supply shortages and gasoline price increases for consumers in Michigan and the surrounding region.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with regards to the Line 5 dual pipelines and their shutdown, current and possible litigation with respect thereto and the effects thereof, regulatory and permitting actions and decisions, and the effects of any shutdown.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements in this news release with regards to the Line 5 dual pipelines include the impact of government and regulatory actions, approvals and litigation on ongoing and future operations.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-responds-to-temporary-ruling-on-line-5-operations-301084116.html
SOURCE Enbridge Inc.
Article Date
6/25/20206/23/2020 - Enbridge says Line 5 Injunction Unnecessary
Enbridge says Line 5 Injunction Unnecessary
Source: PR Newswire
Inspections show no damage to twin pipelines
CALGARY, AB and LANSING, Mich., June 22, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) said today the temporary restraining order and preliminary injunction sought by the Attorney General of Michigan is legally unsupportable, unnecessary, and will be vigorously opposed by Enbridge.
Enbridge understands the importance of the Great Lakes to the State and the need to protect the Straits, the environment and people. As part of its thorough maintenance and inspection program, Enbridge first noted a disturbance to an anchor support on the east leg last Thursday and immediately shut down both legs of the Line 5 dual pipelines crossing the Straits of Mackinac as a precautionary measure. The east leg pipeline remains shut down, while the west leg was restarted after a thorough review and consultation with our safety regulator.
"We have been working very closely with the Pipeline and Hazardous Materials Safety Administration (PHMSA), to ensure it is able to assess the safety of the dual pipelines. This included informing them of our completion of Remote Operated Vehicle inspections of the west leg of the line, which confirmed there was no mechanical damage to the pipeline or any support-anchors. We have also provided engineering assessments and other materials to State officials." said Vern Yu, Enbridge's Executive Vice-President and President, Liquids Pipelines. "We continue to work with PHMSA to answer their questions about our assessments of the dual pipelines."
Line 5 is a critical source of 540,000 barrels per day of propane and crude oil supply for Michigan and surrounding areas that make up the regional supply network for the State, producing transportation fuels and consumer goods. Line 5 has operated reliably and safely in the Straits since 1953 and continues to do so today.
A copy of Enbridge CEO Al Monaco's June 21, 2020 letter to Governor Whitmer which chronicles communication with the State on June 20 and 21, as well as undertakings to provide all findings to both the State and PHMSA, is attached to this release.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to the Line 5 dual pipelines and any expected or possible litigation and the effects thereof, regulatory and permitting actions and decisions, and economic and other benefits.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements in this news release with regards to the Line 5 dual pipelines include the impact of government and regulatory actions, approvals and litigation on ongoing operations.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/enbridge-says-line-5-injunction-unnecessary-301081478.html
SOURCE Enbridge Inc.
Article Date
6/23/2020Enbridge Announces Passing of Board Member Charles W. Fischer
Source: PR Newswire
CALGARY, AB, June 22, 2020 /PRNewswire/ - It is with sadness that Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) announces that Charles W. Fischer, a long-standing member of its Board of Directors, passed away on Wednesday, June 17, 2020.
"The passing of Charlie Fischer is a great loss for the Enbridge Board and the energy industry," said Greg Ebel, Chair of Enbridge's Board of Directors. "Charlie was an icon in the energy industry and a true leader. On behalf of the Enbridge Board, we express our deepest sympathies and condolences to the Fischer family for their loss."
A member of Enbridge's Board of Directors since July 2009, Mr. Fischer also served on the Board's Audit, Finance & Risk Committee and was Chair of the Safety & Reliability Committee.
"Charlie was an exceptional person and a thought leader in the industry and all facets of business, policy and community. He was a mentor and a friend and his deep commitment to the community will have a lasting impact," said Al Monaco, Enbridge President & Chief Executive Officer.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-passing-of-board-member-charles-w-fischer-301080732.html
SOURCE Enbridge Inc.
Article Date
6/22/2020Enbridge Appoints Stephen S. Poloz to its Board
Source: PR Newswire
CALGARY, AB, June 4, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) is pleased to announce that its Board of Directors has appointed Stephen S. Poloz as a Director of Enbridge.
Mr. Poloz was Governor of the Bank of Canada from 2013 until the conclusion of his tenure on June 2, 2020. As Governor, he was also Chairman of the Board of Directors of the Bank of Canada and a member of the Board of Directors of the Bank for International Settlements. Mr. Poloz was President & CEO of Export Development Canada from 2011 to 2013.
"On behalf of the Board of Directors of Enbridge, we are very pleased to welcome Stephen to the Enbridge Board. He has extensive business and financial experience, as well as expertise in global economics and public policy. He will be an excellent addition to our Board and we look forward to his contributions," stated Greg Ebel, Chair of the Board of Directors.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-appoints-stephen-s-poloz-to-its-board-301070475.html
SOURCE Enbridge Inc.
Article Date
6/4/2020MPCA To Conduct Contested Case Hearing for Line 3 Replacement Project
Source: PR Newswire
CALGARY, AB and DULUTH, MN, June 3, 2020 /PRNewswire/ - On February 26, 2020 the Minnesota Pollution Control Agency (MPCA) issued the draft 401 Water Quality Certificate permit for the Line 3 Replacement Project. Following a public comment period, the MPCA announced today that it will conduct a contested case hearing regarding the 401 permit.
The timeline for the contested case hearing will be established after an Administrative Law Judge is assigned to the case. While the MPCA previously stated its intention to meet the US Army Corps of Engineers' August 15, 2020 deadline, that date has been extended to November 14, 2020 which is within the one-year anniversary of our application, as required by statute.
Enbridge Inc. (NYSE: ENB) (TSX: ENB) will continue to work with other permitting agencies towards the timely issuance of the remaining permits in order to allow for the start of construction before year end 2020. We now expect the majority of the remaining US$1.5 billion of capital spending to occur in 2021, with spending related to early construction preparation in 2020. The company will continue to advance pre-construction activities, to ensure an efficient schedule is maintained.
"While the contested case has caused a delay to the permitting process, we believe this additional step will strengthen the MPCA's decision record," said Vern Yu, President of Liquids Pipelines. "We have planned for various permitting scenarios with the objective of accelerating and completing construction of this important safety and maintenance driven project within six to nine months after we receive final permits."
Enbridge's Line 3 Replacement Project is the most studied pipeline in Minnesota's history. It has already undergone an extensive contested case hearing process lasting nearly five years as part of the Minnesota Public Utilities Commission's review and approval of the project. There have been numerous public comment opportunities both written and in-person, including 70 public meetings. The Project's Environmental Impact Statement, Certificate of Need and Route Permit were re-approved by the Commission on February 4, 2020. In addition, Enbridge has agreed to numerous permit conditions, as a result of stakeholder input during the process, and we have committed to spend US$100 million on Tribal business and employment.
This project is immediately poised to provide significant economic benefits for counties, small businesses, Native American communities, and union members. Line 3 is a shovel ready US$2.9 billion private investment that will bring 4,200 family-sustaining construction jobs, millions of dollars in local spending and tax revenues at a time when Northern Minnesota needs it most.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. . Forward-looking information or statements in this news release include statements with respect to the Line 3 Replacement Project and expected regulatory and permitting actions and decisions, capital expenditures, construction schedules and anticipated economic benefits.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction such as the Line 3 Replacement Project, including estimated completion dates and expected capital expenditures, include the following: the COVID-19 pandemic and the duration and impact thereof; the impact of customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; and the impact of weather.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Juli Kellner
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/mpca-to-conduct-contested-case-hearing-for-line-3-replacement-project-301070206.html
SOURCE Enbridge Inc.
Article Date
6/3/2020EDF Renewables, Enbridge and wpd start construction of the Fécamp Offshore Wind Farm
Source: PR Newswire
PARIS, June 2, 2020 /PRNewswire/ - EDF Renewables, a subsidiary of the EDF Group, Enbridge Inc. (TSX:ENB) (NYSE:ENB), a leading energy infrastructure company in North America, and wpd, a European renewable energy company, announced today the launch of the Fécamp offshore wind farm following the finalisation of financing agreements between the consortium and its financial partners during the weekend.
The 500 MW Fécamp offshore wind farm will be comprised of 71 wind turbines located between 13km and 22km from the coast of northwest France. Project commissioning is scheduled in 2023. The power generated by the wind farm will provide enough annual electricity to meet the power needs for 770,000 people, or over 60% of the Seine-Maritime department's population. The construction of the project will create over 1,400 local jobs in total. During its 25-year service life, approximately 100 local ongoing full-time jobs based at the port of Fécamp will also be created to maintain the wind farm.
The total project capital cost is estimated to be EUR2 billion, of which the majority will be financed through non-recourse project level debt. Fécamp offshore wind farm is underpinned by a 20-year power purchase agreement (PPA) granted by the state in June 2018.
The consortium has sealed equipment supply contracts with top-tier suppliers, including:
RTE, responsible for connecting the wind farm from the substation to the coast and then to Normandy's electricity grid, will start its onshore work in June.
SGRE's new turbine manufacturing plant in Le Havre, at which construction is set to begin this summer, will create 750 jobs. The manufacturing of the gravitational foundations for the wind turbines will commence this summer at the Grand Port Maritime site, providing work for around 600 people. The wind turbines will be assembled at the Port of Cherbourg. These orders come at a time when the country intends to boost its activity after two months of containment.
This project has been guided by extensive consultation carried out over 10 years with local stakeholders (state services, elected officials from the region, the Department, coastal municipalities, and non-government organisations) and is supported by in-depth environmental studies undertaken with local environmental associations. Specific work was also carried out in close collaboration with the fishing industry to ensure the coexistence of various maritime activities on the site.
Bruno Bensasson, EDF Group Senior Executive Vice-President Renewable Energies and Chairman and Chief Executive Officer of EDF Renewables commented: "I am delighted to announce today the construction of the second French offshore wind farm in Fécamp. I want to salute the professionalism of our teams and the mobilization of local stakeholders who have been working for years together to meet the energy and economic challenges facing the Normandy area. With already four offshore wind projects won in France and two of which currently under construction, EDF consolidates its leadership in the sector in France. We are thrilled to have contributed to the creation of an industrial sector that creates value and employment for the territories. These large-scale projects fit with EDF's strategy, under which it aims to double its renewable energy capacity worldwide between 2015 and 2030 to 50 GW net. This is how we will build a CO2-neutral energy future as well."
John Whelen, EVP & Chief Development Officer, Enbridge, added: "We are pleased to mark this important milestone with our partners. The start of construction of Fécamp demonstrates our continued commitment to offshore wind development in Europe and further positions us as a diversified energy infrastructure leader. This investment is underpinned by a long-term power purchase agreement that is in line with our low-risk business model. Enbridge now has several investments in offshore wind projects in various stages of development in France, as well as investments in three offshore wind projects currently operating in Germany and the U.K."
Achim Berge Olsen, wpd Group Executive director and CEO of wpd offshore declared: "This is a big step for offshore wind power in Normandy and for the wpd group, highly committed to this project. More than 10 years ago now, when offshore wind energy was only just starting in France, our team began a broad consultation with all stakeholders, on this excellent area for offshore wind, in order to build a real territorial project. By achieving financial & industrial closing, we can now run for the project's construction, which will make France the 3rd country where wpd is engaged in offshore wind, after Germany & our recent achievements in Taiwan."
All the project partners possess considerable experience in offshore wind farms and in the delivery of large-scale industrial projects:
For more information, go to: http://parc-eolien-en-mer-de-fecamp.fr/
Enbridge Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries and affiliates' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included in this news release include, but are not limited to, statements with respect to the Fécamp offshore wind farm (the "Project"), including the benefits, anticipated employment, costs and timing of the Project and its expected power generation capacity.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for energy, and the prices thereof, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for Enbridge's services and for the Project. Similarly, exchange rates, inflation, interest rates and the COVID-19 pandemic impact the economies and business environments in which Enbridge operates and may impact levels of demand for Enbridge's services and the Project as well as the cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction such as the Project, including estimated completion dates and expected capital expenditures, include the following: the COVID-19 pandemic and the duration and impact thereof; the impact of customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather; and the ability of our joint venture partners to complete and finance proposed projects, including the Project.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this press release and in Enbridge's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on Enbridge's behalf, are expressly qualified in their entirety by these cautionary statements.
About EDF Renewables
EDF Renewables is a leading international player in renewable energies, with gross installed capacity of 12.6 GW worldwide. Its development is mainly focused on wind and solar photovoltaic power. EDF Renewables operates mostly in Europe and North America but is continuing to grow by moving into promising emerging regions such as Brazil, China, India, South Africa and the Gulf. The company has strong positions in offshore wind power, but also in other areas of the renewable energies industry such as energy storage. EDF Renewables develops, builds, operates and maintains renewable energies projects, both for itself and for third parties. Most of its international subsidiaries bear the EDF Renewables brand. EDF Renewables is the EDF Group subsidiary specialising in developing solar and wind power.
For more information, visit: www.edf-renewables.com
Follow us on LinkedIn: https://www.linkedin.com/company/edf-renewables and on Twitter (@EDF_RE in French and @EDF_Renewables in English).
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
About wpd AG
wpd AG develops and operates wind farms on- and offshore and solar farms. The Bremen-based German company operates in 25 countries worldwide and has realized wind energy projects with around 2,270 wind turbines and an output of 4,720 MW. The project pipeline comprises a total of 11,300 MW wind onshore, 7,400 MW wind offshore and 1,150 MW of solar energy.
FOR FURTHER INFORMATION PLEASE CONTACT:
EDF Renewables:
Manon de Cassini-Hérail
Mobile: +33 (0)1 40 90 48 22
Email: manon.decassini-herail@edf-re.fr
Enbridge:
Mandy Dinning
Toll Free: (888) 992-0997
Email: media@enbridge.com
wpd AG:
Alison Aguilé
Email: a.aguile@wpd.fr
View original content:http://www.prnewswire.com/news-releases/edf-renewables-enbridge-and-wpd-start-construction-of-the-fecamp-offshore-wind-farm-301068862.html
SOURCE Enbridge Inc.
Article Date
6/2/2020CER Establishes Mainline Contracting Regulatory Process
Source: PR Newswire
CALGARY, May 19, 2020 /PRNewswire/ - Today, the Canada Energy Regulator (CER) announced that the regulatory process for Enbridge Inc.'s (TSX: ENB) (NYSE: ENB) proposal to offer contracted transportation service on the Mainline pipeline system will proceed in a single phase hearing process that balances the need to address pandemic-related challenges and the Commission's mandate to adjudicate in an appropriately expeditious manner.
"Mainline contracts will provide shippers with priority access to the best markets, at competitive and stable tolls, ensuring certainty of demand for Canadian light and heavy crude oil over the long-term and supporting the best netbacks for Western Canadian producers, said Vern Yu, Enbridge Executive Vice President and President of Liquids Pipelines. "Mainline contracting was developed and refined over a two-year period in response to customer input and negotiation. The offering has strong support from a wide cross-section of producers and refiners representing greater than 70 percent of the Mainline's current throughput."
Forward-Looking Statement
Forward-looking information, or forward-looking statements, have been included or incorporated by reference in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' and affiliates' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the proposed Mainline contract offering, including the benefits and timing thereof and the process and timetable to receive applicable governmental, regulatory and other approvals, including the approval of the Canada Energy Regulator.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates, and the COVID-19 pandemic and the duration and impact thereof, affect the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to customer and regulatory approvals and the COVID-19 pandemic, and other risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT: | |
Media | Investment Community |
Jesse Semko | Jonathan Morgan |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com | Email: investor.relations@enbridge.com |
View original content:http://www.prnewswire.com/news-releases/cer-establishes-mainline-contracting-regulatory-process-301062241.html
SOURCE Enbridge Inc.
Article Date
5/20/2020Enbridge Announces Conversion Results for Series 13 Preferred Shares
Source: PR Newswire
CALGARY, May 19, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that none of its outstanding Cumulative Redeemable Preference Shares, Series 13 (Series 13 Shares) will be converted into Cumulative Redeemable Preference Shares, Series 14 of Enbridge (Series 14 Shares) on June 1, 2020.
After taking into account all conversion notices received from holders of its outstanding Series 13 Shares by the May 19, 2020 deadline for the conversion of the Series 13 Shares into Series 14 Shares, less than the 1,000,000 Series 13 Shares required to give effect to conversions into Series 14 Shares were tendered for conversion.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: Investor.Relations@Enbridge.Com
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-conversion-results-for-series-13-preferred-shares-301062218.html
SOURCE Enbridge Inc.
Article Date
5/19/2020Enbridge Reports Strong First Quarter 2020 Results; Re-affirms Outlook
Source: PR Newswire
CALGARY, May 7, 2020 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB) (NYSE:ENB) today reported first quarter 2020 financial results and provided a quarterly business update.
First Quarter 2020 Highlights
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
CEO COMMENT - Al Monaco, President and Chief Executive Officer
"Our responsibility to deliver energy safely and reliably is even more critical in these challenging times. Our pipeline networks assure energy security for North America and the vital fuel supplies that keep our economy and supply chains moving and support the production of equipment and delivery of services needed to fight COVID-19.
"Our teams responded to this unprecedented challenge, quickly and effectively. In January we initiated comprehensive business continuity measures to protect the health of our employees, contractors and the communities we operate in. Our people have once again shown their professionalism and dedication to their work in keeping our critical functions operating safely and reliably in this difficult time.
"While the full economic impact of COVID-19 and pace of global recovery is still uncertain, we're confident that Enbridge will persevere through the difficult conditions being faced by all of us today. That's because resiliency has always been a hallmark of how we manage our business; our strategically located assets, diversified cash flows, strong commercial underpinnings, and a strong balance sheet, allow us to withstand economic downturns and stay well-positioned for the future.
"In the first quarter, all our businesses performed well. Despite warmer than normal weather and lower contribution from energy services, our operating and financial results came in better than expected because of record volumes on the Liquids Mainline, strong utilization on our Texas Eastern gas transmission system, and great progress on synergy capture within our Gas Distribution and Storage business.
"We also advanced our strategic priorities this quarter. We sold $0.4 billion of assets, providing more financial flexibility and demonstrating our commitment to capital discipline. We put new rates into effect on Texas Eastern, reflecting the settlement we reached with customers. Finally, in Liquids Pipelines permitting continues to advance on the Line 3 Replacement project, a critical safety and integrity project.
"This solid performance underscores the strength and resiliency of our diversified asset portfolio which will serve us well in the face of the challenges emerging from the global response to the COVID-19 pandemic. However, there's no doubt that the impacts of the pandemic on society as a whole, and the energy industry, are unprecedented. The global economy has severely contracted and we're experiencing energy demand disruption on a scale that we haven't seen before. While Enbridge's business is resilient and our financial position is strong, we don't expect to be entirely immune to COVID-19 impacts in the near term.
"Our Liquids Mainline system has historically operated at or close to full capacity, generating highly predictable cashflows through commodity cycles, industry downturns and financial market disruptions; in fact, the Mainline has been apportioned for several years. However, the large and rapid decline in gasoline and jet fuel consumption, brought about by COVID-19, has resulted in sharp cuts to refinery runs and crude oil production. We've started to see some impacts on the Mainline: throughput was down approximately 400 thousand barrels per day in April, compared to average Q1 throughput of 2.84 million barrels per day. We expect similarly lower utilization rates will likely continue through the end of the second quarter.
"We currently believe that volumes will recover in the second half of the year as COVID-19 related travel restrictions are slowly lifted and mobility gradually returns to North America in the third and fourth quarter of this year. This view is supported by our belief that that the refineries operating in our core Mainline markets (i.e. the U.S. Midwest, Eastern Canada and the U.S. Gulf Coast) will be among the first to ramp back up given their scale, complexity and cost competitiveness.
"With the near-term reduction in Mainline volumes (Mainline accounts for 30% of EBITDA), it's important to remember that Enbridge's cash flows are well diversified across many businesses, geographies and have strong commercial structures. For instance, at this time, the financial performance of our Gas Transmission, Gas Distribution and Storage, and Renewable Power businesses is not expected to experience a meaningful impact from COVID. Our Gas Transmission business accounts for about 30% of 2020 expected EBITDA and is anchored by utility customers with firm reservation-based load which is expected to remain relatively stable.
"Revenues from our Gas Distribution utility and Power businesses account for approximately 17% of 2020 expected EBITDA and are underpinned by strong regulatory and contractual frameworks and predominately derived from a large and diversified residential customer base whose utilization rates are not expected to be impacted materially by the pandemic.
"While results from a few of our smaller businesses with direct commodity exposure (accounting for approximately 3% of EBITDA), such as Energy Services, DCP Midstream and our Aux Sable fractionation business, are likely to be weaker than budgeted, we also expect upside to our full year financial forecast from lower interest rates and a weaker Canadian dollar that improves translated results of our significant U.S. cash flows.
"We've initiated additional actions to further bolster our resiliency, while assuring that the safety and reliability of our operations remains our first priority. After a comprehensive review of our operating expenditures, we plan to reduce 2020 costs by approximately $300 million. These actions include company-wide compensation reductions, including for myself, the Board of Directors, and the rest of the management team. In addition, we've already increased our excess liquidity to $14 billion, which ensures we can fund our capital program well into 2021, even in the absence of further access to debt capital markets. Finally, we're deferring about $1 billion of 2020 secured growth capital spending to reflect refined execution schedules in light of COVID-19.
"Our full year financial performance will be impacted by the degree and pace of recovery of Mainline throughput. However, given the strength and stability of our broader business portfolio, and accounting for our current assessment of headwinds, tail winds and cost reduction actions, we continue to expect to generate DCF within our original guidance range of $4.50 to 4.80 per share.
"Finally, we remain focused on executing our $10 billion 3-year (2020 - 2022) secured growth capital program, of which approximately $5.5 billion remains to be spent (net of project level financing). Once in service, these low risk, highly capital efficient organic projects will drive solid growth over the near to medium term and advance our strategic priorities. Importantly, the actions we've taken to bolster our balance sheet and liquidity provides us with the continued financial flexibility to self-fund this growth."
FINANCIAL RESULTS SUMMARY
Financial results for three months ended March 31, 2020, are summarized in the table below:
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts; number of shares in millions) | ||
GAAP Earnings/(loss) attributable to common shareholders | (1,429) | 1,891 |
GAAP Earnings/(loss) per common share | (0.71) | 0.94 |
Cash provided by operating activities | 2,809 | 2,176 |
Adjusted EBITDA1 | 3,763 | 3,769 |
Adjusted Earnings1 | 1,668 | 1,640 |
Adjusted Earnings per common share1 | 0.83 | 0.81 |
Distributable Cash Flow1 | 2,706 | 2,758 |
Weighted average common shares outstanding | 2,019 | 2,016 |
1 | Non-GAAP financial measures. Schedules reconciling adjusted EBITDA, adjusted earnings, adjusted earnings per common share and distributable cash flow are available as Appendices to this news release. |
GAAP earnings attributable to common shareholders for the first quarter of 2020 decreased by $3,320 million or $1.65 per share compared with the same period in 2019. The period-over-period comparability of earnings attributable to common shareholders was impacted by certain unusual, infrequent factors or other non-operating factors, including a non-cash impairment of the Company's investment in DCP Midstream of $1,736 million and non-cash unrealized derivative fair value losses of $1,956 million, which are noted in the reconciliation schedule included in Appendix A of this news release.
Adjusted earnings in the first quarter 2020 increased by $28 million and on a per share basis by $0.02. The increase was primarily driven by a reduction in earnings attributable to non-controlling interests (NCI) and lower current income taxes, offset by increased depreciation expenses on new assets put into service throughout 2019 and increased interest expense as a result of debt issued to fund capital expenditures as well as the reduction in capitalized interest associated with the Canadian portion of Line 3 which was put into service in the fourth quarter of 2019.
DCF for the first quarter was $2,706 million, a decrease of $52 million over the first quarter of 2019 driven largely by the operating factors noted above. These factors are discussed in detail under Distributable Cashflow.
Detailed segmented financial information and analysis for the first quarter 2020 can be found below under Adjusted EBITDA by Segments.
PROJECT EXECUTION UPDATE
Enbridge currently has under development $10 billion of secured growth capital projects, net of the sale of 49% of our interest in the Saint Nazaire offshore wind project announced today. Once in service, these projects will provide approximately $2.5 billion of incremental cash flows and drive highly transparent growth over the near to medium term horizon. Approximately $5.5 billion of the secured growth capital program remains to be spent through 2022, net of anticipated project level financing provided by third parties.
The individual projects that make up the secured program are all supported by long-term take-or-pay contracts, cost-of-service frameworks or similar low-risk commercial arrangements and are diversified across a wide range of business platforms and regulatory jurisdictions.
The Company is experiencing a natural slowing of 2020 secured growth capital spending in light of the COVID-19 pandemic and the health and safety measures put place by federal and regional governments. After a review of capital execution schedules, it's expected that 2020 expenditures will be approximately $1 billion lower than budgeted. The deferred capital will be shifted into 2021, and it's anticipated that the impact to in-service dates will be immaterial as scheduling efficiencies and contingencies are largely expected to offset delayed spending.
On April 22, the Sabal Trail Pipeline Phase 2 expansion project received FERC approval for the additional capacity and on May 1 was placed into service. The project is underpinned by long-term take-or-pay contracts. Enbridge holds a 50% interest in the Sabal Trail Pipeline, and its investment in the expansion project is $0.1 billion.
The Company also announced a transaction with CPP Investments to sell 49% of its 50% interest in the Saint Nazaire offshore wind project off the coast of France, which reached a positive final investment decision in 2019. This transaction reduces the Company's equity investment in the Saint Nazaire project to $0.2 billion from $0.3 billion and reduces the Company's secured capital program (inclusive of the Company's proportionate share of project level financing) to $0.9 billion from $1.8 billion. It's expected the transaction will improve the Company's equity returns from the project, reflecting a continued emphasis on disciplined capital allocation. The transaction is discussed more fully in the Update on Financing Activities and Asset Sales section below.
Line 3 Replacement
The $9 billion Line 3 Replacement Project is a critical integrity replacement project that will enhance the continued safe and reliable operations of our Mainline System well into the future and reflects the importance of protecting the environment.
The $5 billion Canadian segment of the pipeline replacement was placed into service on December 1, 2019, with an interim surcharge of $US$0.20 per barrel.
On the U.S. segment of the project, in Minnesota, the MPUC approved the adequacy of the FEIS and reinstated the Certificate of Need and Route Permit, allowing for construction of the pipeline to commence following the issuance of required permits. State and Federal environmental agencies are advancing the permitting process, including the issuance of the draft 401 Water Quality Certification by the Minnesota Pollution Control Agency, as well as the completion of the relevant public consultation processes. According to the PCA permitting schedule, the next critical phase is focused on the PCA reviewing and considering public comments before making a certification decision.
At this time, Enbridge cannot determine when all necessary permits to commence construction will be issued. Depending on the final in-service date, there is a risk that the project may exceed the Company's total cost estimate of $9 billion for the combined Line 3 Replacement Project. However, a significant portion of the capital spend relates to the Canadian segment of the Line 3 replacement project, which is currently in service and came in slightly below budget at around $5 billion. At this time, the Company does not anticipate any capital cost impacts that would be material to Enbridge's financial position and outlook.
OTHER BUSINESS UPDATES
Company Cost Reduction Actions
The Company has initiated actions to reduce costs by approximately $300 million in 2020. The actions will not impact the safety and reliability of our operations, which remains our number one priority. The cost management program will include reductions to outside services and supply chain costs, company-wide salary rollbacks and a voluntary workforce reductions program. Salary rollbacks include a 10% reduction for the Executive Leadership Team and a 15% reduction for the President & Chief Executive Officer and the Board of Directors. These actions bolster Enbridge's resilience and align with the interests of our stakeholders.
Mainline Contracting
On December 19, 2019, the Company submitted an application to the Canada Energy Regulator (CER) to implement contracts on the Liquids Canadian Mainline System. The application for contracted and uncommitted service included the associated terms, conditions and tolls for each service, which would be offered in an open season following approval by the CER. The tolls and services will replace the current Competitive Toll Settlement (CTS) that is in place until it expires on June 30, 2021. If a replacement agreement is not in place by that time, the CTS tolls will continue on an interim basis.
The application that the Company filed is the result of two years of extensive negotiations with a diverse group of shippers and has been designed to align the interests of its shippers and Enbridge. Shippers representing approximately 75% of the current Mainline system throughput have filed letters supporting the application with the CER demonstrating the strong shipper backing for the offering.
The application highlights the benefits of the Mainline contract offering for both shippers and the public, including the following:
On February 24, 2020, the CER issued a Notice of Public Hearing which outlined the process for participation in the hearing and identified a list of issues for discussion in the proceeding.
In March, letters were filed with the CER by a group of potential intervenors that requested the CER delay setting hearing dates associated with the Mainline contract filing. Subsequently, the CER issued a letter requesting comments on the potential delay of proceedings. Enbridge filed its response with the CER on May 1, 2020, submitting that the CER should proceed with issuing a hearing order and not delay the proceedings as the written portion does not require physical gatherings and the oral portion is not likely to occur until the fall.
Line 5 Tunnel
As part of Enbridge's agreement with the State of Michigan, the Company plans to replace its existing Line 5 dual pipelines at the Straits of Mackinac with a pipeline secured in an underground tunnel, under the Straits, making a safe pipeline even safer. In 2019, the Company completed geotechnical work which supports the suitability of this state-of-the-art tunnel, with enhanced safety features, and further demonstrates Enbridge's commitment to protecting Michigan and the Great Lakes' natural resources. Enbridge has filed for all major environmental permits, including the Joint Permit Application with the EGLE and the USACE, as well as an independent application to the Michigan Public Service Commission.
The joint application covers permit requirements from both state and federal agencies and allowing for the simultaneous review of permitting activities by both agencies.
Upon receipt of all required permits, Enbridge expects to begin construction of the Line 5 tunnel, with the expected completion of construction, testing and commissioning to be completed sometime in 2024.
Gas Transmission and Midstream Rate Cases
In February, the Company received approval from the FERC of its uncontested rate case settlement between Texas Eastern and its customers, further optimizing the base business. Upon approval, Texas Eastern recognized revenues in the first quarter of 2020 reflecting settlement terms and put into effect its settled rates on April 1, 2020.
FINANCING UPDATE & ASSET SALES
In the first quarter of 2020, prior to the debt capital market disruption, the Company secured over $3 billion of debt financing at attractive rates, including a US$750 million floating rate note and US$1.5 billion of bank term loans. Proceeds were used to re-finance maturing debt and fund new growth projects. Subsequent to the first quarter, Enbridge Gas Inc. was one of the first corporate issuers back in the Canadian debt capital markets given its low risk business model and strong credit rating. It issued 10-year and 30-year notes for total proceeds of $1.2 billion at a weighted average coupon of 3.3%, representing the largest Enbridge Gas Inc. offering to date.
In addition, Enbridge secured $3 billion of new committed credit facilities which further increased the Company's available liquidity to over $14 billion. This liquidity position provides significant financial flexibility and would be more than sufficient to meet the Company's financing needs, net of internally generated cash flows, through 2021 in the absence of further capital markets access.
The Company continues to maintain strong leverage ratios, and expects that its Debt to EBITDA metric will remain well within its target range of 4.5x to 5.0x through 2020.
On April 1, 2020, the Company closed the sale of our Ozark Gas Transmission and Ozark Gas Gathering assets for proceeds of approximately $0.1 billion. In addition, on May 1, 2020, Enbridge closed the previously announced sale of our Montana-Alberta Tie Line transmission assets for proceeds of approximately $0.2 billion.
On May 1, 2020, the Company and CPP Investments executed agreements whereby 49% of the Company's 50% interest in Éolien Maritime France SAS (EMF) will be sold to CPP Investments in return for a payment which will include a project promote as well as 49% of all development capital spent by Enbridge since inception to the date of close. The total payment at close is anticipated to exceed $100 million. Post closing, CPP Investments will contribute its pro-rata 49% share of all ongoing future development capital. Completion of the transaction is subject to customary regulatory approvals and is anticipated to close in the fourth quarter of 2020. After the transaction closes, through the Company's investment in EMF, Enbridge will own equity interests in three French offshore wind projects, including, Saint Nazaire (25.5%), Fecamp (17.9%), and Courseulles (21.7%).
In 2019, the Saint Nazaire offshore wind project reached a positive final investment decision while the remaining projects are expected to reach a final investment decision by next year.
These divestiture transactions, which total $0.4 billion, further strengthen the Company's financial position and highlight its disciplined approach to capital allocation.
FIRST QUARTER 2020 FINANCIAL RESULTS
The following table summarizes the Company's GAAP reported results for segment EBITDA, earnings attributable to common shareholders, and cash provided by operating activities for the first quarter of 2020.
GAAP SEGMENT EBITDA AND CASH FLOW FROM OPERATIONS
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
Liquids Pipelines | 850 | 2,072 |
Gas Transmission and Midstream | (1,054) | 1,020 |
Gas Distribution and Storage | 604 | 662 |
Renewable Power Generation | 120 | 124 |
Energy Services | 121 | 6 |
Eliminations and Other | (966) | 248 |
EBITDA | (325) | 4,132 |
Earnings (loss) attributable to common shareholders | (1,429) | 1,891 |
Cash provided by operating activities | 2,809 | 2,176 |
For purposes of evaluating performance, the Company makes adjustments for unusual, infrequent or other non-operating factors to GAAP reported earnings, segment EBITDA, and cash flow provided by operating activities, which allow Management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
DISTRIBUTABLE CASH FLOW
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||
Liquids Pipelines | 1,919 | 1,729 |
Gas Transmission and Midstream | 1,097 | 1,040 |
Gas Distribution and Storage | 609 | 693 |
Renewable Power Generation | 118 | 123 |
Energy Services | (13) | 176 |
Eliminations and Other | 33 | 8 |
Adjusted EBITDA1,3 | 3,763 | 3,769 |
Maintenance capital | (204) | (179) |
Interest expense1 | (711) | (684) |
Current income tax1 | (108) | (158) |
Distributions to noncontrolling interests1 | (76) | (46) |
Cash distributions in excess of equity earnings1 | 72 | 94 |
Preference share dividends | (96) | (95) |
Other receipts of cash not recognized in revenue2 | 51 | 53 |
Other non-cash adjustments | 15 | 4 |
DCF3 | 2,706 | 2,758 |
Weighted average common shares outstanding | 2,019 | 2,016 |
1 | Presented net of adjusting items. |
2 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
3 | Schedules reconciling adjusted EBITDA and DCF are available as Appendices to this news release. |
First quarter 2020 DCF decreased $52 million compared with the same period of 2019. Key performance drivers of quarter-over-quarter decline included:
Partially offsetting the factors noted above was lower current income tax due newly enacted Canadian tax legislation coming into effect in the second half of 2019.
In the first quarter of 2020, DCP Midstream, LP (DCP) announced it would reduce its quarterly distribution by 50%, beginning with the first quarter distribution which will be paid in May. Enbridge's DCF in the first quarter of 2020 includes DCP's distribution from the fourth quarter of 2019 which was declared and paid prior to the DCP's announced distribution reduction.
ADJUSTED EARNINGS | Three months ended | |
2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||
Adjusted EBITDA2 | 3,763 | 3,769 |
Depreciation and amortization | (882) | (840) |
Interest expense1 | (696) | (668) |
Income taxes1 | (451) | (488) |
Noncontrolling interests1 | 30 | (38) |
Preference share dividends | (96) | (95) |
Adjusted earnings2 | 1,668 | 1,640 |
Adjusted earnings per common share | 0.83 | 0.81 |
1 | Presented net of adjusting items. |
2 | Schedules reconciling adjusted EBITDA and adjusted earnings are available as Appendices to this news release. |
Adjusted earnings increased $28 million and adjusted earnings per share increased $0.02 compared with the first quarter in 2019. Growth in adjusted earnings was driven by the same factors impacting business performance and adjusted EBITDA as discussed under Distributable Cash Flow above, partially offset by the following factors:
The increase in the weighted average outstanding common shares did not have a significant impact on adjusted earnings per common share.
ADJUSTED EBITDA BY SEGMENTS
Adjusted EBITDA by segment is reported on a Canadian dollar basis. Adjusted EBITDA generated from U.S. dollar denominated businesses was translated at a higher average Canadian dollar exchange rate in the first quarter of 2020 (C$1.35/US$) when compared with the corresponding 2019 period (C$1.33/US$).
A portion of the U.S. dollar earnings is hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
LIQUIDS PIPELINES
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
Mainline System1 | 1,107 | 964 |
Regional Oil Sands System | 211 | 227 |
Gulf Coast and Mid-Continent System | 244 | 216 |
Other2 | 357 | 322 |
Adjusted EBITDA3 | 1,919 | 1,729 |
Operating Data (average deliveries – thousands of bpd) | ||
Mainline System - ex-Gretna volume4 | 2,842 | 2,717 |
Regional Oil Sands System5 | 1,865 | 1,751 |
International Joint Tariff (IJT)6 | $4.21 | $4.15 |
1 | Mainline System includes the Canadian Mainline and the Lakehead System, which were previously reported separately. |
2 | Included within Other are Southern Lights Pipeline, Express-Platte System, Bakken System and Feeder Pipelines & Other. |
3 | Schedules reconciling adjusted EBITDA are provided in the Appendices to this news release. |
4 | Mainline System throughput volume represents mainline system deliveries ex-Gretna, Manitoba which is made up of United States and eastern Canada deliveries originating from Western Canada. |
5 | Volumes are for the Athabasca mainline, Athabasca Twin, Waupisoo Pipeline and Woodland Pipeline and exclude laterals on the Regional Oil Sands System. |
6 | The IJT benchmark toll and its components are set in U.S. dollars and the majority of the Company's foreign exchange risk on the Canadian portion of the Mainline is hedged. The Canadian portion of the Mainline represents approximately 45% of total Mainline System revenue and the average effective FX rate for the Canadian portion of the Mainline during the first quarter of 2019, was C$1.20/US$ (Q1 2019: C$1.19/US$). |
Liquids Pipelines adjusted EBITDA increased $190 million compared to the first quarter of 2019 primarily as a result of the following factors:
GAS TRANSMISSION AND MIDSTREAM
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
US Gas Transmission1 | 864 | 745 |
Canadian Gas Transmission1 | 138 | 188 |
US Midstream | 45 | 52 |
Other | 50 | 55 |
Adjusted EBITDA2 | 1,097 | 1,040 |
1 | US Gas Transmission includes the Canadian portion of the Maritimes & Northeast Pipeline which was previously included in Canadian Gas Transmission. The comparable 2019 adjusted EBITDA has been restated to reflect this change. |
2 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Gas Transmission and Midstream adjusted EBITDA increased $57 million compared to the first quarter of 2019 primarily due to the following factors:
GAS DISTRIBUTION AND STORAGE
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
Enbridge Gas Inc. (EGI) | 574 | 642 |
Other | 35 | 51 |
Adjusted EBITDA1 | 609 | 693 |
Operating Data | ||
EGI | ||
Volumes (billions of cubic feet) | 638 | 719 |
Number of active customers (thousands)2 | 3,748 | 3,722 |
Heating degree days3 | ||
Actual | 1,727 | 2,046 |
Forecast based on normal weather4 | 1,923 | 1,922 |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
2 | Number of active customers is the number of natural gas consuming customers at the end of the reported period. |
3 | Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in EGI's distribution franchise areas. |
4 | Normal weather is the weather forecast by EGI in its legacy rate zones, using the forecasting methodologies approved by the Ontario Energy Board. |
Gas Distribution and Storage adjusted EBITDA will typically follow a seasonal profile. It is generally highest in the first and fourth quarters of the year reflecting greater volumetric demand during the heating season and lowest in the third quarter as there is generally less volumetric demand during the summer. The magnitude of the seasonal EBITDA fluctuations will vary from year-to-year reflecting the impact of colder or warmer than normal weather on distribution volumes.
Gas Distribution and Storage adjusted EBITDA decreased $84 million compared to the first quarter of 2019 primarily due to warmer weather in EGI's franchise areas which led to lower utilization. The warmer weather in the first quarter of 2020 when compared with the normal weather forecast embedded in rates negatively impacted adjusted EBITDA by approximately $41 million while first quarter 2019 EBITDA was positively impacted by colder than normal weather by approximately $33 million. This decrease in adjusted EBITDA was partially offset by higher distribution charges resulting from increases in customer base, as well as synergy captures realized from the amalgamation of Enbridge Gas Distribution Inc. and Union Gas Limited. Other Gas Distribution and Storage adjusted EBITDA decreased due to closing of the sale of Enbridge Gas New Brunswick on October 1, 2019, and St. Lawrence Gas Company, Inc. on November 1, 2019.
RENEWABLE POWER GENERATION
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted EBITDA1 | 118 | 123 |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Renewable Power Generation adjusted EBITDA decreased $5 million compared to first quarter of 2019 primarily due to lower contributions from Canadian wind facilities due to weaker wind resources, partially offset by adjusted EBITDA contributions from the Hohe See Offshore Wind Project and the adjacent expansion project, Albatros. Hohe See reached full operating capacity in October 2019 and Albatros came into service in January 2020.
ENERGY SERVICES
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted earnings/(loss) before interest, income taxes, and depreciation | ||
and amortization1 | (13) | 176 |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Energy Services adjusted EBITDA decreased $189 million compared to the first quarter of 2019 as a result of significant compression of location and quality differentials in certain markets resulting in fewer opportunities to achieve profitable margins on capacity obligations. The first quarter of 2019 was an exceptionally strong due to favourable location and quality differentials in the second half of 2018 that resulted in profitable margins realized in the first quarter of 2019.
ELIMINATIONS AND OTHER
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
Operating and administrative recoveries | 79 | 63 |
Realized foreign exchange hedge settlements | (46) | (55) |
Adjusted EBITDA1 | 33 | 8 |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Operating and administrative costs captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) inclusive of amounts recovered from business units for the provision of those services. Also, as previously noted, U.S. dollar denominated earnings within the segment results are translated at average foreign exchange rates during the quarter. The offsetting impact of settlements made under the Company's enterprise foreign exchange hedging program are captured in this segment.
Eliminations and Other adjusted EBITDA increased $25 million compared with the first quarter of 2019. Key quarter-over-quarter performance drivers included:
CONFERENCE CALL
Enbridge will host a conference call and webcast on May 7, 2020 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to provide an enterprise wide business update and review 2020 first quarter financial results. Analysts, members of the media and other interested parties can access the call toll free at (877) 930-8043 or within and outside North America at (253) 336-7522 using the access code of 5545476#. The call will be audio webcast live at https://edge.media-server.com/mmc/p/kzjwa9bx. It is recommended that participants dial in or join the audio webcast fifteen minutes prior to the scheduled start time. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available for seven days after the call toll-free (855) 859-2056 or within and outside North America at (404) 537-3406 (access code 5545476#).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
DIVIDEND DECLARATION
On May 5, 2020, our Board of Directors declared the following quarterly dividends. All dividends are payable on June 1, 2020, to shareholders of record on May 15, 2020.
Dividend per | |
Common Shares1 | $0.81000 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C2 | $0.25458 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P | $0.27369 |
Preference Shares, Series R | $0.25456 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 3 | $0.23356 |
Preference Shares, Series 5 | US$0.33596 |
Preference Shares, Series 7 | $0.27806 |
Preference Shares, Series 9 | $0.25606 |
Preference Shares, Series 113 | $0.24613 |
Preference Shares, Series 13 | $0.27500 |
Preference Shares, Series 15 | $0.27500 |
Preference Shares, Series 17 | $0.32188 |
Preference Shares, Series 19 | $0.30625 |
1 | The quarterly dividend per common share was increased 9.8% to $0.81 from $0.738, effective March 1, 2020. |
2 | The quarterly dividend per share paid on Series C was increased to $0.25458 from $0.25305 on March 1, 2020 due to reset on a quarterly basis following the date of issuance of the Series C Preference Shares. |
3 | The quarterly dividend per share paid on Series 11 was decreased to $0.24613 from $0.275 on March 1, 2020, due to the reset of the annual dividend on March 1, 2020, and every five years thereafter. |
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: Enbridge's corporate vision and strategy, including strategic priorities and enablers; 2020 financial guidance; the COVID-19 pandemic and the duration and impact thereof; anticipated reductions in operating costs and deferrals of secured growth capital spend; the expected supply of, demand for and prices of crude oil, natural gas, natural gas liquids, liquified natural gas and renewable energy; anticipated utilization of our existing assets, including throughput on the Mainline; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected DCF or DCF per share; expected future cash flows; expected performance of the Company's businesses; expected debt-to-EBITDA ratio; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected future growth and expansion opportunities; expectations about the Company's joint ventures and our partners' ability to complete and finance announced projects and projects under construction; expected closing of acquisitions and dispositions and the timing thereof; expected benefits of transactions, including the realization of efficiencies and synergies; expected future actions of regulators and courts; toll and rate case discussions and filings, including Mainline Contracting and the anticipated benefits thereof; anticipated competition; United States Line 3 Replacement Program; Line 5 tunnel and related matters; interest rates; and exchange rates.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the COVID-19 pandemic and the duration and impact thereof; anticipated reductions in operating costs and deferrals of secured growth capital spend; the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy, including the current weakness and volatility of such prices; anticipated utilization of our existing assets; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the timing and closing of acquisitions and dispositions; the realization of anticipated benefits and synergies of transactions; governmental legislation; litigation; impact of the Company's dividend policy on its future cash flows; credit ratings; capital project funding; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation, interest rates and the COVID-19 pandemic impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected EBITDA, expected adjusted EBITDA, earnings/(loss), expected adjusted earnings/(loss), expected DCF and associated per share amounts, or estimated future dividends. The most relevant assumptions associated with forward-looking statements regarding announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; and the COVID-19 pandemic and the duration and impact thereof.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the realization of anticipated benefits and synergies of projects and transactions; successful execution of our strategic priorities, operating performance, the Company's dividend policy, regulatory parameters, changes in regulations applicable to the Company's business, acquisitions and dispositions and other transactions, project approval and support, renewals of rights-of-way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, political decisions, exchange rates, interest rates, commodity prices, supply of and demand for commodities and the COVID-19 pandemic, including but not limited to those risks and uncertainties discussed in this and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
ABOUT ENBRIDGE INC.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise part of this news release.
FOR FURTHER INFORMATION PLEASE CONTACT: | |
Enbridge Inc. – Media | Enbridge Inc. – Investment Community |
Jesse Semko | Jonathan Morgan |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com | Email: investor.relations@enbridge.com |
NON-GAAP RECONCILIATIONS APPENDICES
This news release contains references to adjusted EBITDA, adjusted earnings, adjusted earnings per common share, and DCF. Management believes the presentation of these metrics gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Adjusted EBITDA represents EBITDA adjusted for unusual, infrequent or other non-operating factors on both a consolidated and segmented basis. Management uses adjusted EBITDA to set targets and to assess the performance of the Company and its Business Units.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, infrequent or other non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, infrequent or other non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes, and noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another measure of the Company's ability to generate earnings.
DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, infrequent or other non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
Reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly certain contingent liabilities, and non-cash unrealized derivative fair value losses and gains which are subject to market variability. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without unreasonable effort.
Our non-GAAP measures described above are not measures that have standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers.
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON-GAAP RECONCILIATIONS – ADJUSTED EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
Liquids Pipelines | 850 | 2,072 |
Gas Transmission and Midstream | (1,054) | 1,020 |
Gas Distribution and Storage | 604 | 662 |
Renewable Power Generation | 120 | 124 |
Energy Services | 121 | 6 |
Eliminations and Other | (966) | 248 |
EBITDA | (325) | 4,132 |
Depreciation and amortization | (882) | (840) |
Interest expense | (706) | (685) |
Income tax recovery/(expense) | 549 | (584) |
(Earnings)/loss attributable to noncontrolling interests | 31 | (37) |
Preference share dividends | (96) | (95) |
Earnings/(loss) attributable to common shareholders | (1,429) | 1,891 |
ADJUSTED EBITDA TO ADJUSTED EARNINGS
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||
Liquids Pipelines | 1,919 | 1,729 |
Gas Transmission and Midstream | 1,097 | 1,040 |
Gas Distribution and Storage | 609 | 693 |
Renewable Power Generation | 118 | 123 |
Energy Services | (13) | 176 |
Eliminations and Other | 33 | 8 |
Adjusted EBITDA | 3,763 | 3,769 |
Depreciation and amortization | (882) | (840) |
Interest expense | (696) | (668) |
Income tax expense | (451) | (488) |
(Earnings)/loss attributable to noncontrolling interests | 30 | (38) |
Preference share dividends | (96) | (95) |
Adjusted earnings | 1,668 | 1,640 |
Adjusted earnings per common share | 0.83 | 0.81 |
EBITDA TO ADJUSTED EARNINGS
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||
EBITDA | (325) | 4,132 |
Adjusting items: | ||
Change in unrealized derivative fair value (gain)/loss - Foreign exchange | 1,956 | (600) |
Change in unrealized derivative fair value (gain)/loss - Commodity prices | (551) | 160 |
Equity investment impairment - DCP Midstream | 1,736 | — |
Equity investment asset and goodwill impairment - DCP Midstream | 324 | — |
Write-down of inventory to the lower of cost or market | 417 | 10 |
Texas Eastern re-establishment of EDIT regulated liability | 159 | — |
Employee severance, transition and transformation costs | 11 | 44 |
Other | 36 | 23 |
Total adjusting items | 4,088 | (363) |
Adjusted EBITDA | 3,763 | 3,769 |
Depreciation and amortization | (882) | (840) |
Interest expense | (706) | (685) |
Income tax recovery/(expense) | 549 | (584) |
(Earnings)/loss attributable to noncontrolling interests | 31 | (37) |
Preference share dividends | (96) | (95) |
Adjusting items in respect of: | ||
Interest expense | 10 | 17 |
Income tax recovery/(expense) | (1,000) | 96 |
(Earnings)/loss attributable to noncontrolling interests | (1) | (1) |
Adjusted earnings | 1,668 | 1,640 |
Adjusted earnings per common share | 0.83 | 0.81 |
APPENDIX B
NON-GAAP RECONCILIATION – SEGMENTED EBITDA TO ADJUSTED EBITDA
LIQUIDS PIPELINES
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted EBITDA | 1,919 | 1,729 |
Change in unrealized derivative fair value gain/(loss) | (1,066) | 343 |
Other | (3) | — |
Total adjustments | (1,069) | 343 |
EBITDA | 850 | 2,072 |
GAS TRANSMISSION AND MIDSTREAM
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted EBITDA | 1,097 | 1,040 |
Equity investment impairment - DCP Midstream | (1,736) | — |
Equity investment asset and goodwill impairment - DCP Midstream | (324) | — |
Texas Eastern re-establishment of EDIT regulated liability | (159) | — |
Equity earnings adjustment - DCP Midstream | 53 | (14) |
Other | 15 | (6) |
Total adjustments | (2,151) | (20) |
EBITDA | (1,054) | 1,020 |
GAS DISTRIBUTION AND STORAGE
Three months ended | ||
2020 | 2019 | |
(unaudited; millions of Canadian dollars) | ||
Adjusted EBITDA | 609 | 693 |
Change in unrealized derivative fair value gain | 6 | 4 |
Employee severance, transition and transformation costs | (7) | (35) |
Other | (4) | — |
Total adjustments | (5) | (31) |
EBITDA | 604 | 662 |
RENEWABLE POWER GENERATION
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted EBITDA | 118 | 123 |
Change in unrealized derivative fair value gain | 2 | 1 |
EBITDA | 120 | 124 |
ENERGY SERVICES
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted earnings/(loss) before interest, income taxes and depreciation and | ||
amortization | (13) | 176 |
Change in unrealized derivative fair value gain/(loss) | 551 | (160) |
Write-down of inventory to the lower of cost or market | (417) | (10) |
Total adjustments | 134 | (170) |
EBITDA | 121 | 6 |
ELIMINATIONS AND OTHER
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted EBITDA | 33 | 8 |
Change in unrealized derivative fair value gain/(loss) | (898) | 252 |
Change in corporate guarantee obligation | (74) | — |
Investment write-down loss | (43) | — |
Employee severance, transition and transformation costs | (4) | (9) |
Other | 20 | (3) |
Total adjustments | (999) | 240 |
EBITDA | (966) | 248 |
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING ACTIVITIES TO DCF
Three months ended | ||
2020 | 2019 | |
(unaudited, millions of Canadian dollars) | ||
Cash provided by operating activities | 2,809 | 2,176 |
Adjusted for changes in operating assets and liabilities1 | (194) | 667 |
2,615 | 2,843 | |
Distributions to noncontrolling interests4 | (76) | (46) |
Preference share dividends | (96) | (95) |
Maintenance capital expenditures2 | (204) | (179) |
Significant adjusting items: | ||
Other receipts of cash not recognized in revenue3 | 51 | 53 |
Employee severance, transition and transformation costs | 11 | 44 |
Distributions from equity investments in excess of cumulative earnings4 | 77 | 61 |
Write-down of inventory to the lower of cost or market | 417 | (10) |
Other items | (89) | 87 |
DCF | 2,706 | 2,758 |
1 | Changes in operating assets and liabilities, net of recoveries. |
2 | Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing pipeline system or that are necessary to maintain the service capability of the existing assets (including the replacement of components that are worn, obsolete or completing their useful lives). For the purpose of DCF, maintenance capital excludes expenditures that extend asset useful lives, increase capacities from existing levels or reduce costs to enhance revenues or provide enhancements to the service capability of the existing assets. |
3 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
4 | Presented net of adjusting items. |
View original content:http://www.prnewswire.com/news-releases/enbridge-reports-strong-first-quarter-2020-results-re-affirms-outlook-301054573.html
SOURCE Enbridge Inc.
Article Date
5/7/2020Enbridge Inc. Announces Election of Directors
Source: PR Newswire
CALGARY, May 5, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) held its Annual Meeting of Shareholders today. On a vote by ballot during the regular business proceedings at the Meeting, shareholders approved the election of all 11 nominated directors proposed by management as listed in the Management Information Circular dated March 2, 2020. The detailed results of the vote for the election of directors are set out below.
Votes For | Votes Withheld | ||||||
# | % | # | % | ||||
Pamela L. Carter | 1,063,972,780 | 85.23 | 184,364,864 | 14.77 | |||
Marcel R. Coutu | 1,111,694,748 | 89.05 | 136,642,897 | 10.95 | |||
Susan M. Cunningham | 1,215,551,787 | 97.37 | 32,785,858 | 2.63 | |||
Gregory L. Ebel | 1,145,661,628 | 91.77 | 102,676,016 | 8.23 | |||
J. Herb England | 1,207,631,489 | 96.74 | 40,706,156 | 3.26 | |||
Charles W. Fischer | 1,229,841,306 | 98.52 | 18,496,314 | 1.48 | |||
Gregory J. Goff | 1,243,004,440 | 99.57 | 5,333,452 | 0.43 | |||
V. Maureen Kempston Darkes | 1,213,976,217 | 97.25 | 34,361,673 | 2.75 | |||
Teresa S. Madden | 1,230,756,098 | 98.59 | 17,581,793 | 1.41 | |||
Al Monaco | 1,223,260,251 | 97.99 | 25,077,641 | 2.01 | |||
Dan C. Tutcher | 1,221,007,826 | 97.81 | 27,330,023 | 2.19 | |||
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-announces-election-of-directors-301053492.html
SOURCE Enbridge Inc.
Article Date
5/6/20205/5/2020 - Enbridge Declares Quarterly Dividends
Enbridge Declares Quarterly Dividends
Source: PR Newswire
CALGARY, May 5, 2020 /PRNewswire/ - The Board of Directors of Enbridge Inc. (TSX, NYSE: ENB) has declared a quarterly dividend of $0.81 per common share, payable on June 1, 2020 to shareholders of record on May 15, 2020. The amount of the dividend is consistent with the March 1, 2020 dividend.
The Board also declared the following quarterly dividends for Enbridge Inc. Preferred Shares. All dividends are payable on June 1, 2020 to shareholders of record on May 15, 2020. All amounts shown are in Canadian dollars unless otherwise specified.
Common Shares | $0.81 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C | $0.25458 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P | $0.27369 |
Preference Shares, Series R | $0.25456 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 3 | $0.23356 |
Preference Shares, Series 5 | US$0.33596 |
Preference Shares, Series 7 | $0.27806 |
Preference Shares, Series 9 | $0.25606 |
Preference Shares, Series 11 | $0.24613 |
Preference Shares, Series 13 | $0.27500 |
Preference Shares, Series 15 | $0.27500 |
Preference Shares, Series 17 | $0.321875 |
Preference Shares, Series 19 | $0.30625 |
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-declares-quarterly-dividends-301053180.html
SOURCE Enbridge Inc.
Article Date
5/5/2020Enbridge Provides Notice of Series 13 Preferred Shares Conversion Right and Announces Reset Dividend Rates
Source: PR Newswire
CALGARY, May 4, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series 13 (Series 13 Shares) (TSX: ENB.PF.E) on June 1, 2020. As a result, subject to certain conditions, the holders of the Series 13 Shares have the right to convert all or part of their Series 13 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 14 of Enbridge (Series 14 Shares) on June 1, 2020. Holders who do not exercise their right to convert their Series 13 Shares into Series 14 Shares will retain their Series 13 Shares.
The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series 13 Shares outstanding after June 1, 2020, then all remaining Series 13 Shares will automatically be converted into Series 14 Shares on a one-for-one basis on June 1, 2020; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 14 Shares outstanding after June 1, 2020, no Series 13 Shares will be converted into Series 14 Shares. There are currently 14,000,000 Series 13 Shares outstanding.
With respect to any Series 13 Shares that remain outstanding after June 1, 2020, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series 13 Shares for the five-year period commencing on June 1, 2020 to, but excluding, June 1, 2025 will be 3.043 percent, being equal to the five-year Government of Canada bond yield of 0.383 percent determined as of today plus 2.66 percent in accordance with the terms of the Series 13 Shares.
With respect to any Series 14 Shares that may be issued on June 1, 2020, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series 14 Shares for the three-month floating rate period commencing on June 1, 2020 to, but excluding, September 1, 2020 will be 0.73650 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 0.27 percent plus 2.66 percent in accordance with the terms of the Series 14 Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.
Beneficial holders of Series 13 Shares who wish to exercise their right of conversion during the conversion period, which runs from May 1, 2020 until 5:00 p.m. (EST) on May 19, 2020, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.
Forward-Looking Statements
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge, including statements with respect to the conversion of all or part of the Series 13 Shares into Series 14 Shares on June 1, 2020, the annual dividend rate that will apply to any outstanding Series 13 Shares on June 1, 2020, the quarterly dividend rate that will apply to any Series 14 Shares on June 1, 2020, and the declaration of dividends by the Board of Directors of Enbridge. This information may not be appropriate for other purposes. Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and on processes used to prepare the information, such statements are not guarantees of future events and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual events to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about whether holders of Series 13 Shares will exercise their right to convert their Series 13 Shares into Series 14 Shares.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-provides-notice-of-series-13-preferred-shares-conversion-right-and-announces-reset-dividend-rates-301052400.html
SOURCE Enbridge Inc.
Article Date
5/4/2020Enbridge Inc. to Hold Annual Meeting of Shareholders on May 5
Source: PR Newswire
CALGARY, April 13, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) will hold its Annual Meeting of Shareholders on May 5, 2020.
Annual Meeting of Shareholders
When: | Tuesday, May 5, 2020 |
1:30 p.m. MT | |
Where: | Virtual only meeting via live audio webcast online at: |
A webcast replay will be available on the Company's website.
Additional information on the Annual Meeting of Shareholders, including details on how to vote and meeting participation, is available on the Company's website at https://www.enbridge.com/investment-center/corporate-governance/shareholder-meetings.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-to-hold-annual-meeting-of-shareholders-on-may-5-301039652.html
SOURCE Enbridge Inc.
Article Date
4/13/2020Enbridge Inc. to Host Webcast to Discuss 2020 First Quarter Results on May 7
Source: PR Newswire
CALGARY, April 13, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) will host a conference call and webcast to provide an enterprise-wide business update and review 2020 first quarter results on May 7, 2020 at 7:00 a.m. MT (9:00 a.m. ET).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
Enbridge will announce first quarter results before markets open on May 7, 2020.
2020 First Quarter Earnings Webcast and Conference Call
When: | Thursday, May 7, 2020 | |
7:00 a.m. MT (9:00 a.m. ET) | ||
Webcast: | ||
Call: | Dial-in # (Audio only – please dial in 10 minutes ahead): | |
North America Toll Free: | 1 (877) 930-8043 | |
Outside North America: | 1 (253) 336-7522 | |
Participant Passcode: | 5545476 | |
A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the company website within approximately 24 hours.
Replay: | Audio Replay # (Available for 7 days after call): | |
North America Toll Free: | 1 (855) 859-2056 | |
Outside North America: | 1 (404) 537-3406 | |
Replay Passcode: | 5545476 | |
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-to-host-webcast-to-discuss-2020-first-quarter-results-on-may-7-301039625.html
SOURCE Enbridge Inc.
Article Date
4/13/2020Enbridge Files 2019 Year End Disclosure Documents
Source: PR Newswire
CALGARY, Feb. 14, 2020 /PRNewswire/ - Enbridge Inc. (TSX:ENB) (NYSE:ENB) has filed its Form 10-K for the year ended December 31, 2019, with the United States Securities and Exchange Commission. Enbridge has also filed its audited Consolidated Financial Statements and related Management's Discussion and Analysis for the year ended December 31, 2019, with Canadian securities regulatory authorities.
Copies of these documents are available electronically at www.sec.gov (U.S. filings) or www.sedar.com (Canadian filings) or the Company's website at http://www.enbridge.com/investment-center/reports-and-sec-filings/sec-filings and http://www.enbridge.com/investment-center/reports-and-sec-filings/investor-documents-and-filings. Printed copies of the Consolidated Financial Statements and Management's Discussion and Analysis are available on request by calling 1-800-481-2804 or writing the Company's Investor Relations department at:
Enbridge Inc.
Investor Relations
Suite 200, 425 - 1st Street S.W.
Calgary, Alberta, Canada T2P 3L8
Enbridge's Notice of Annual Meeting and Proxy Statement are expected to be mailed to Enbridge common shareholders at the end of March. Enbridge's Annual Meeting of Shareholders will be held at 1:30 p.m. (ET) on Tuesday, May 5, 2020, in the Queen's Park Ballroom, Shangri-La Hotel, 188 University Avenue, Toronto, Ontario. A live webcast of the meeting will be available at www.enbridge.com.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-files-2019-year-end-disclosure-documents-301004990.html
SOURCE Enbridge Inc.
Article Date
2/14/20202/14/2020 - Enbridge Appoints New Director to its Board
Enbridge Appoints New Director to its Board
Source: PR Newswire
CALGARY, Feb. 14, 2020 /PRNewswire/ - Enbridge Inc. (TSX:ENB) (NYSE:ENB) is pleased to announce that its Board of Directors has appointed Gregory J. Goff as a director of Enbridge.
Mr. Goff has more than 30 years of energy industry experience, most recently as Executive Vice Chairman of Marathon Petroleum Corporation. Prior thereto, he was President and Chief Executive Officer of Andeavor until October 2018. Mr. Goff is currently a director of PolyOne Corporation.
"On behalf of the Board of Directors of Enbridge, we are very pleased to welcome Greg to the Enbridge Board. His extensive energy industry experience makes him a strong addition to our Board and we look forward to his contributions on behalf of our investors," stated Greg Ebel, the Chair of the Board of Directors of Enbridge.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-appoints-new-director-to-its-board-301005022.html
SOURCE Enbridge Inc.
Article Date
2/14/2020Enbridge Inc. Reports Strong Fourth Quarter & Full Year 2019 Results
Source: PR Newswire
CALGARY, Feb. 14, 2020 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB) (NYSE:ENB) today reported fourth quarter and full year 2019 financial results and provided a quarterly business update.
HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
CEO COMMENT
"2019 was a successful year for Enbridge", commented Al Monaco, President and Chief Executive Officer of Enbridge. "Our low risk pipeline-utility model continued to deliver strong financial results and we advanced our strategic priorities on many fronts.
"Each of our core businesses delivered solid results in 2019 that translated into full-year DCF per share at the top-end of our guidance range. The Liquids Mainline System achieved record annual throughput, our gas pipelines were highly utilized, and we're capturing synergies through the amalgamation of our Ontario Utility businesses. In addition to strong business performance, we placed a further $9 billion of new projects into service, including the Canadian segment of the Line 3 Replacement. Our focus on optimizing our base business and executing on our secured growth program continues to drive highly predictable and growing cash flows, which resulted in exceptional annual dividend growth for our shareholders of 10% in 2019 and 9.8% in 2020.
"Despite strong utilization and financial performance across our businesses, we experienced a major incident on our natural gas system in Kentucky. The safety of our systems is always our number one priority and we're re-doubling our efforts to ensure our pipelines continue to be the safest in the industry.
"In the Liquids Pipeline segment, we delivered on our plan for 100 kbpd of throughput optimizations on the Mainline system by the end of 2019. We're planning for a further 50 kbpd of Mainline optimizations and we're moving forward with a 50 kbpd expansion of the Express Pipeline in 2020. These actions will provide WCSB producers with at least 200 kbpd of much needed additional pipeline capacity.
"On the U.S. portion of our Line 3 Replacement Project, on February 3 the MPUC approved the FEIS and reinstated the Certificate of Need and Route Permit. This important decision by the MPUC reflects the most comprehensive review of a pipeline project in Minnesota history and reaffirms the need for the pipeline to be replaced. We'll continue to work closely with State and Federal permitting agencies to secure all necessary permits prior to commencing construction.
"In addition, following almost two years of extensive negotiation with our shippers, we filed the Mainline Contract Offering with the Canada Energy Regulator (CER). The priority access offering is in direct response to what our shippers have asked us for and balances their diverse needs. Ultimately, contracting the Mainline will provide all shippers with priority access at competitive tolls, and supports further improvement in netbacks for WCSB producers. Most notably, it secures long-term demand for Canadian crude oil, while ensuring that all interested shippers can participate in a fair and transparent open season process. For example, we've made this offering accessible to smaller producers by reducing the minimum volume required to contract on the system and introducing a Requirements Contract with very attractive terms. We expect the CER will conduct a thorough review of our application which will include input from Enbridge and the industry. Importantly, we included in our application 13 letters from the shippers representing well over 70 percent of the Mainline volumes to demonstrate the support we have for the offering.
"We've also been advancing our liquids strategy to extend our integrated value chain from Western Canada down to the U.S. Gulf Coast. We're moving ahead with developing a terminal at Jones Creek, Texas, which will be fully integrated with our Seaway pipeline system and will provide connectivity and services to local refineries as well as export facilities. We've also secured an option to purchase an ownership interest in an offshore VLCC-capable oil export terminal, further advancing our energy export strategy in the U.S. Gulf Coast.
"Our Gas Transmission and Midstream business is awaiting a decision from the FERC on a settlement agreement on the Texas Eastern rate case and are entering rate proceedings on several other pipelines this year. These are important milestones as they will allow us to rebase our rates and set us up for recovery of future modernization costs.
"Also, in Gas Transmission and Midstream, we've again advanced our LNG supply strategy by leveraging our incumbent position in the U.S. Gulf Coast, with the announcement of the agreements to supply both the Annova LNG facility and the Rio Grande LNG facility, along with acquiring the Rio Bravo pipeline development project.
Finally, in the fourth quarter, we closed the second phase of the divestiture of our Canadian midstream assets, which completes our $8 billion asset sale program. These non-core asset sales have further strengthened our balance sheet and focused our business on our low risk pipeline-utility model.
"In summary, we're pleased with the Company's performance in 2019 and the successful completion of the 3-year plan we announced in early 2017 following the Spectra merger. As we look ahead to our new 3-year plan through 2022, our strategic priorities for the business remain focused on optimizing our base business, executing our secured growth program and growing the business through in-franchise, capital efficient investment. The combination of our strong financial position, disciplined capital allocation, and low-risk business model, positions us well to sustain attractive shareholder returns well into the future," concluded Mr. Monaco.
FINANCIAL RESULTS SUMMARY
Financial results for the three and twelve months ended December 31, 2019, are summarized in the table below:
Three months ended | Twelve months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars, except per share amounts; | |||||
number of shares in millions) | |||||
GAAP Earnings attributable to common shareholders | 746 | 1,089 | 5,322 | 2,515 | |
GAAP Earnings per common share | 0.37 | 0.60 | 2.64 | 1.46 | |
Cash provided by operating activities | 1,993 | 2,503 | 9,398 | 10,502 | |
Adjusted EBITDA1 | 3,186 | 3,320 | 13,271 | 12,849 | |
Adjusted Earnings1 | 1,228 | 1,166 | 5,341 | 4,568 | |
Adjusted Earnings per common share1 | 0.61 | 0.65 | 2.65 | 2.65 | |
Distributable Cash Flow1 | 2,051 | 1,863 | 9,224 | 7,618 | |
Weighted average common shares outstanding | 2,018 | 1,806 | 2,017 | 1,724 | |
1 | Non-GAAP financial measures. Schedules reconciling adjusted EBITDA, adjusted earnings, adjusted earnings per common share and distributable cash flow are available as Appendices to this news release. |
GAAP earnings attributable to common shareholders for the fourth quarter of 2019 decreased by $343 million or $0.23 per share compared with the same period in 2018. The period-over-period comparability of earnings attributable to common shareholders was impacted by certain unusual, infrequent factors or other non-operating factors, which are noted in the reconciliation schedule included in Appendix A of this news release.
Adjusted earnings in the fourth quarter 2019 increased by $62 million. The increase was primarily driven by strong operating results across many of the Company's business units and from new projects placed into service in 2019, partially offset by weaker performance in Energy Services due to the narrowing of certain location and quality differentials. On a per share basis, adjusted earnings decreased by $0.04 per share compared with the same period in 2018, reflecting the same operating factors noted above, partially offset by a higher share count which reflected common shares issued by the Company to buy-in the public interests in its sponsored vehicles during the fourth quarter of 2018.
Adjusted earnings for the year ended 2019 increased by $773 million compared with the year ended 2018. The increase is primarily due to strong operating results across many of the Company's business units, as well as new projects placed into service in 2019 and in late 2018. These factors were partially offset by the disposition of certain Gas Transmission and Midstream assets, which included the provincially regulated portion of the Canadian natural gas gathering and processing assets sold on October 1, 2018, as well as the disposition of Midcoast Operating, L.P., sold on August 1, 2018.
DCF for the fourth quarter was $2,051 million, an increase of $188 million over the comparable prior period in 2018, while DCF for the year ended 2019 was $9,224 million, which is an increase of $1,606 million over 2018. The increased DCF in 2019 for both the fourth quarter and full year over the comparable periods in 2018 was driven largely by the operating factors noted above, as well as lower distributions to noncontrolling interests following the completion of the Company's buy-in of the publicly held interest in its sponsored vehicles.
Detailed segmented financial information and analysis can be found below under Adjusted EBITDA by Segments.
PROJECT EXECUTION UPDATE
Over the course of 2019, the Company placed $9 billion of secured growth projects into service, including $7 billion in the fourth quarter. These projects further strengthen Enbridge's footprint in all business lines, including enhancing the safety of the Liquids Mainline, advancing the Company's U.S. Gulf Coast Liquids competitive position, expanding and extending its gas pipelines, completing its largest offshore wind project in Europe, and investing in its Utilities business to reinforce the distribution system and connect new customers. The successful execution of the Company's secured growth program in 2019 contributes reliable earnings and cash flow growth and advances the Company's strategic priorities.
In the fourth quarter, several projects were placed into service, including:
Enbridge continues to make progress on its $11 billion secured growth capital program, which includes projects at various stages of execution across all businesses. These projects are supported by long-term take-or-pay contracts, cost-of-service frameworks or similar low-risk commercial arrangements and are diversified across a wide range of regulatory jurisdictions.
U.S. Gulf Coast LNG Strategy
Enbridge announced yesterday that it had executed a Purchase and Sale Agreement with NextDecade to acquire the Rio Bravo Pipeline development project. In addition, Enbridge and NextDecade have negotiated a precedent agreement, to be executed at closing, under which Enbridge will provide firm transportation capacity on the Rio Bravo Pipeline to NextDecade's Rio Grande LNG export facility for a term of at least twenty years. The capital cost of the pipeline is approximately US$1.2 billion with opportunities for further expansion, subject to FID and the final design specifications for the LNG facility.
The Company also announced that it has signed a Precedent Agreement to supply the Annova LNG facilities in the Port of Brownsville, Texas for a term of at least twenty years, by expanding Enbridge's existing Valley Crossing system. The expansion will be subject to the Annova facility reaching FID. The capital cost of the expansion is expected to be approximately US$0.5 billion subject to the final design specifications of the LNG facility.
Line 3 Replacement
The $9 billion Line 3 Replacement Project is a significant component of the Company's secured project inventory. It is a critical integrity replacement project that will enhance the safety and reliability of Enbridge's Liquids Mainline System.
The Company placed the Canadian segment of the Line 3 Replacement into service on December 1, 2019, with an interim surcharge of US$0.20 per barrel. This safety-driven maintenance project reflects the importance of protecting the environment and ensuring the continued safe and reliable operations of our Canadian Mainline System well into the future. The capital cost for the Canadian portion of Line 3 Replacement Project came in slightly below budget.
In Minnesota, the Department of Commerce issued a FEIS on December 9 and the MPUC gathered public comment through January 16, 2020. On February 3, 2020, the MPUC approved the adequacy of the FEIS and reinstated the Certificate of Need and Route Permit, clearing the way for construction of the pipeline to commence following the issuance of required permits. The State and Federal environmental permitting agencies have continued to advance their work, including the initiation of public consultation processes, in parallel with the ongoing MPUC process.
Depending on the final in-service date, there is a risk that the project may exceed the Company's total cost estimate of $9 billion for the combined Line 3 Replacement Project. However, at this time, the Company does not anticipate any capital cost impacts that would be material to Enbridge's financial position and outlook.
OTHER BUSINESS UPDATES
Mainline Contracting
On December 19, 2019, the Company submitted an application to the CER to implement term contracts on the Liquids Canadian Mainline System. The application for contracted and uncommitted service included the associated terms, conditions and tolls of each service, which would be offered in an open season following approval by the CER. The tolls and services will replace the current Competitive Toll Settlement (CTS) that is in place until June 30, 2021. If a replacement agreement is not in place by that time, the CTS tolls will continue on an interim basis.
The application that the Company filed is the result of two years of extensive negotiations with a diverse group of shippers and has been designed to align the interests of its shippers and Enbridge. Shippers representing well over 70% of the current Mainline system throughput have filed letters supporting the application with the CER demonstrating the strong shipper backing for the offering.
The application highlights benefits of the Mainline contract offering for both shippers and the public, including the following:
On January 16, 2020, the CER issued a letter inviting comments from interested persons to identify issues to be considered during the regulatory proceeding and on procedural matters, such as processes the CER may establish to consider the application efficiently. On February 7, 2020, Enbridge replied to the letters solicited by the CER and we expect a thorough regulatory process to continue through substantially all of 2020.
Line 5 Tunnel
On October 31, 2019, the Michigan Court of Claims ruled in favor of Enbridge, recognizing the constitutionality of the legislation underpinning the tunnel agreement with the State of Michigan. As part of Enbridge's agreement with the State of Michigan, the Company plans to replace its existing Line 5 dual pipelines at the Straits of Mackinac with a pipeline secured in an underground tunnel, deep under the Straits, making a safe pipeline even safer. This state-of-the-art tunnel, with enhanced safety features, demonstrates Enbridge's commitment to protecting Michigan's natural resources. Enbridge plans to begin filing permit applications with the State to proceed with constructing the tunnel across the Line 5 Straits in the first quarter of 2020.
Gas Transmission and Midstream Rate Cases
One of the Company's strategic priorities is to ensure timely and fair returns on the Company's U.S. natural gas transmission systems. Following extensive negotiations with shippers on the Texas Eastern rate case, Enbridge filed a settlement agreement on October 28, 2019, with the FERC. On January 13, 2020, the Administrative Law Judge certified this uncontested settlement agreement to the FERC and the Company expects a decision from the FERC in the second quarter of 2020. The Company has also commenced rate discussions with Algonquin and East Tennessee Natural Gas customers. If a pre-packaged settlement on these pipelines is not reached, Algonquin will file a Section 4 rate case by March 31, 2020, and East Tennessee will file in the second quarter of this year. Additionally, rate proceedings are planned on the Alliance U.S. pipeline and on Maritimes and Northeast U.S. pipeline in the second quarter of 2020.
NON-CORE ASSET SALES & FINANCING UPDATE
In December 2019, Enbridge closed the sale of its federally regulated Canadian midstream assets, completing the second phase of the $4.3 billion transaction. In aggregate, the Company has now received total proceeds of approximately $8 billion from previously announced non-core asset sales. In addition to that, in January 2020, Enbridge entered into an agreement for the sale of the MATL transmission assets for $0.2 billion subject to certain regulatory approvals and customary closing conditions. The transaction is expected to close in the first quarter of 2020. These sales provide the Company with further financial flexibility to self-fund its secured growth program.
On the financing front, the Company continued to execute on its funding plan with term debt issuances in the fourth quarter exceeding $3.5 billion. These included a $1 billion single tranche offering of 10-year notes by Enbridge Inc. in the Canadian debt capital markets and a US$2 billion three-tranche offering of 5-year, 10-year and 30-year fixed rate notes in the U.S. debt capital markets. Proceeds were used to re-finance maturing debt and fund new growth projects within the Company's financial capacity.
As of December 31, 2019, the Company's consolidated Debt-to-EBITDA ratio was 4.5x on a trailing twelve month basis. This is at the low end of the Company's long-term target credit metric range of 4.5x to below 5.0x Debt-to-EBITDA.
2020 GUIDANCE AND LONGER TERM GROWTH OUTLOOK
At its December 2019 investor conference the Company highlighted that its key strategic priorities are focused on optimizing existing operations while preserving financial flexibility and prudently growing its three world-class core franchises: Liquids Pipelines, Gas Transmission and Midstream, and Gas Distribution and Storage. Specific priorities include:
Enbridge provided its financial guidance for 2020 including EBITDA of approximately $13.7 billion and a projected range of 2020 DCF of $4.50 to $4.80 per share. The Company also announced a 9.8% dividend increase for 2020 to a quarterly dividend of $0.81 per share, commencing with the dividend payable on March 1, 2020, to shareholders of record on February 14, 2020. Post 2020, the Company re-affirmed expected annual DCF per share growth rate in the range of 5-7%, driven by a operating efficiencies and a significant opportunity to invest in new low risk growth projects within its core franchises.
FOURTH QUARTER AND YEAR-END 2019 FINANCIAL RESULTS
The following table summarizes the Company's GAAP reported results for segment EBITDA, earnings attributable to common shareholders, and cash provided by operating activities for the fourth quarter and full year of 2019.
GAAP SEGMENT EBITDA AND CASH FLOW FROM OPERATIONS
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Liquids Pipelines | 1,971 | 978 | 7,681 | 5,331 |
Gas Transmission and Midstream | 638 | 1,254 | 3,371 | 2,334 |
Gas Distribution and Storage | 443 | 449 | 1,747 | 1,711 |
Renewable Power Generation | (189) | 83 | 111 | 369 |
Energy Services | (68) | 374 | 250 | 482 |
Eliminations and Other | 114 | (340) | 429 | (708) |
EBITDA | 2,909 | 2,798 | 13,589 | 9,519 |
Earnings attributable to common shareholders | 746 | 1,089 | 5,322 | 2,515 |
Cash provided by operating activities | 1,993 | 2,503 | 9,398 | 10,502 |
For purposes of evaluating performance, the Company makes adjustments for unusual, infrequent or other non-operating factors to GAAP reported earnings, segment EBITDA, and cash flow provided by operating activities, which allow Management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of the underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
DISTRIBUTABLE CASH FLOW
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Liquids Pipelines | 1,720 | 1,728 | 7,041 | 6,617 |
Gas Transmission and Midstream | 948 | 952 | 3,868 | 4,068 |
Gas Distribution and Storage | 481 | 452 | 1,819 | 1,726 |
Renewable Power Generation | 119 | 98 | 424 | 435 |
Energy Services | (22) | 73 | 269 | 167 |
Eliminations and Other | (60) | 17 | (150) | (164) |
Adjusted EBITDA1,3 | 3,186 | 3,320 | 13,271 | 12,849 |
Maintenance capital | (342) | (361) | (1,083) | (1,144) |
Interest expense1 | (704) | (675) | (2,716) | (2,735) |
Current income tax1 | (81) | (156) | (386) | (384) |
Distributions to noncontrolling interests and redeemable | ||||
noncontrolling interests1 | (54) | (281) | (204) | (1,182) |
Cash distributions in excess of equity earnings1 | 107 | 51 | 534 | 318 |
Preference share dividends | (96) | (96) | (383) | (364) |
Other receipts of cash not recognized in revenue2 | 30 | 51 | 169 | 208 |
Other non-cash adjustments | 5 | 10 | 22 | 52 |
DCF3 | 2,051 | 1,863 | 9,224 | 7,618 |
Weighted average common shares outstanding | 2,018 | 1,806 | 2,017 | 1,724 |
1 | Presented net of adjusting items. |
2 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
3 | Schedules reconciling adjusted EBITDA and DCF are available as Appendices to this news release. |
Fourth quarter 2019 DCF increased $188 million compared with the same period of 2018. Key performance drivers of quarter-over-quarter growth included:
DCF increased $1,606 million for the year ended December 31, 2019, compared to the year ended December 31, 2018, due to the same factors discussed above as well as:
ADJUSTED EARNINGS | Three months ended | Twelve months ended | ||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars, except per share | ||||
Adjusted EBITDA2 | 3,186 | 3,320 | 13,271 | 12,849 |
Depreciation and amortization | (865) | (794) | (3,391) | (3,246) |
Interest expense1 | (687) | (656) | (2,649) | (2,637) |
Income taxes1 | (237) | (421) | (1,381) | (1,122) |
Noncontrolling interests and redeemable | ||||
noncontrolling interests1 | (73) | (188) | (126) | (909) |
Preference share dividends | (96) | (95) | (383) | (367) |
Adjusted earnings2 | 1,228 | 1,166 | 5,341 | 4,568 |
Adjusted earnings per common share | 0.61 | 0.65 | 2.65 | 2.65 |
1 | Presented net of adjusting items. |
2 | Schedules reconciling adjusted EBITDA and adjusted earnings are available as Appendices to this news release. |
Adjusted earnings increased $62 million for the fourth quarter of 2019 compared with the same period in 2018. Growth in adjusted earnings was driven by the same factors impacting business performance and adjusted EBITDA as discussed under Distributable Cash Flow above, partially offset by the following factors:
Adjusted earnings per share for the fourth quarter of 2019 decreased $0.04 compared with the fourth quarter of 2018. The increase in adjusted earnings noted above was more than offset on a per share basis by the issuance during the fourth quarter of 2018 of approximately 297 million common shares to acquire, in separate transactions, all of the outstanding equity securities of the Company's sponsored vehicles not beneficially owned by Enbridge.
For the year ended December 31, 2019, adjusted earnings increased $773 million over the same period in 2018. The increase is primarily driven by the increased adjusted EBITDA from strong asset performance, as well as lower distributions to noncontrolling and redeemable noncontrolling interests following the completion of Enbridge's buy-in of the publicly held interests in its sponsored vehicles as discussed under Distributable Cash Flow above. The increase to adjusted earnings was offset by increased income tax expense, in part due to higher earnings before tax and a higher effective income tax rate. The period-over-period increase in the effective income tax rate is partly due to the buy-in of the U.S. Master Limited Partnerships (MLP), Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP, which resulted in the Company being taxed on 100% of the MLP earnings rather than the Company's proportionate share of their earnings.
Adjusted earnings per share for the year of 2019 are the same as in 2018 as a result of the increased adjusted earnings discussed above being offset on a per share basis by the increase in common shares issued to acquire the outstanding equity securities of the Company's sponsored vehicles, also discussed above.
ADJUSTED EBITDA BY SEGMENTS
Adjusted EBITDA by segment is reported on a Canadian dollar basis. Adjusted EBITDA generated from U.S. dollar denominated businesses was translated at the same average Canadian dollar exchange rates in the fourth quarter of 2019 (C$1.32/US$) when compared with the corresponding 2018 period (C$1.32/US$).
On a full year basis, adjusted EBITDA generated from U.S. dollar denominated businesses for the year ended December 31, 2019, was translated at a weaker Canadian exchange rate of C$1.33/US$ compared with C$1.30/US$ for the year ended December 31, 2018.
A portion of the U.S. dollar earnings is hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
LIQUIDS PIPELINES
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Mainline System1 | 960 | 997 | 3,900 | 3,847 |
Regional Oil Sands System | 208 | 209 | 856 | 851 |
Gulf Coast and Mid-Continent System | 214 | 201 | 922 | 709 |
Other2 | 338 | 321 | 1,363 | 1,210 |
Adjusted EBITDA3 | 1,720 | 1,728 | 7,041 | 6,617 |
Operating Data (average deliveries – thousands of bpd) | ||||
Mainline System - ex-Gretna volume4 | 2,728 | 2,685 | 2,705 | 2,631 |
Regional Oil Sands System5 | 1,864 | 1,856 | 1,817 | 1,830 |
International Joint Tariff (IJT)6 | $4.21 | $4.15 | $4.18 | $4.11 |
1 | Mainline System includes the Canadian Mainline and the Lakehead System, which were previously reported separately. |
2 | Included within Other are Southern Lights Pipeline, Express-Platte System, Bakken System and Feeder Pipelines & Other. |
3 | Schedules reconciling adjusted EBITDA are provided in the Appendices to this news release. |
4 | Mainline System throughput volume represents mainline system deliveries ex-Gretna, Manitoba which is made up of United States and eastern Canada deliveries originating from Western Canada. |
5 | Volumes are for the Athabasca mainline, Athabasca Twin, Waupisoo Pipeline and Woodland Pipeline and exclude laterals on the Regional Oil Sands System. |
6 | The IJT benchmark toll and its components are set in U.S. dollars and the majority of the Company's foreign exchange risk on the Canadian portion of the Mainline is hedged. The Canadian portion of the Mainline represents approximately 45% of total Mainline System revenue and the average effective FX rate for the Canadian portion of the Mainline during the fourth quarter of 2019 as well as full year, was C$1.19/US$ (Q4 and full year 2018: C$1.26/US$). |
Liquids Pipelines adjusted EBITDA decreased $8 million for the fourth quarter of 2019 compared with the same period of 2018. Key quarter-over-quarter performance drivers included:
Liquids Pipelines adjusted EBITDA increased $424 million for the year ended 2019 compared with 2018. In addition to factors discussed above, key year-over-year performance drivers included:
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
US Gas Transmission | 678 | 646 | 2,730 | 2,625 |
Canadian Gas Transmission1 | 191 | 208 | 760 | 983 |
US Midstream | 48 | 54 | 194 | 319 |
Other | 31 | 44 | 184 | 141 |
Adjusted EBITDA2 | 948 | 952 | 3,868 | 4,068 |
1 | Canadian Gas Transmission includes Alliance Pipeline, which was previously reported separately. |
2 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Gas Transmission and Midstream adjusted EBITDA decreased $4 million for the fourth quarter of 2019 compared with the same period of 2018. Key quarter-over-quarter performance drivers included:
Gas Transmission and Midstream adjusted EBITDA decreased $200 million for the year ended 2019 compared with 2018. In addition to factors discussed above, key year-over-year performance included:
GAS DISTRIBUTION AND STORAGE
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Enbridge Gas Inc. (EGI) | 444 | 407 | 1,714 | 1,598 |
Other | 37 | 45 | 105 | 128 |
Adjusted EBITDA1 | 481 | 452 | 1,819 | 1,726 |
Operating Data | ||||
EGI | ||||
Volumes (billions of cubic feet) | 532 | 531 | 1,860 | 1,821 |
Number of active customers (thousands)2 | 3,755 | 3,713 | ||
Heating degree days3 | ||||
Actual | 1,383 | 1,406 | 4,082 | 3,932 |
Forecast based on normal weather4 | 1,314 | 1,310 | 3,849 | 3,843 |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
2 | Number of active customers at the end of the reported period. |
3 | Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in EGI's distribution franchise areas. |
4 | As per Ontario Energy Board approved methodology used in setting rates. |
Enbridge Gas Distribution (EGD) and Union Gas were amalgamated on January 1, 2019. The amalgamated company is named Enbridge Gas Inc. (EGI). Post amalgamation the financial results of EGI reflect the combined performance of the two legacy utility operations.
Gas Distribution and Storage adjusted EBITDA will typically follow a seasonal profile. It is generally highest in the first and fourth quarters of the year reflecting greater volumetric demand during the heating season and lowest in the third quarter as there is generally less volumetric demand during the summer. The magnitude of the seasonal EBITDA fluctuations will vary from year-to-year reflecting the impact of colder or warmer than normal weather on distribution volumes.
Gas Distribution and Storage adjusted EBITDA increased $29 million for the fourth quarter 2019 compared with the same period of 2018. Key quarter-over-quarter performance drivers included:
Gas Distribution and Storage adjusted EBITDA increased $93 million for the year ended 2019 compared with 2018. The key year-over-year performance drivers reflected the same factors discussed above in the fourth quarter analysis as well as the impact of colder weather in EGI's franchise areas in 2019 when compared to 2018, which drove higher demand.
For the year ended December 31, 2019, Adjusted EBITDA at EGI was positively impacted by $67 million due to colder weather experienced in the franchise area relative to the assumptions for normal weather embedded in customer rates.
RENEWABLE POWER GENERATION
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA1 | 119 | 98 | 424 | 435 |
1 | Shedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Renewable Power Generation adjusted EBITDA increased $21 million for the fourth quarter of 2019 compared with the same period of 2018. Key quarter-over-quarter performance drivers included:
Renewable Power Generation adjusted EBITDA decreased $11 million for the year ended 2019 compared with 2018. In addition to factors discussed above, key year-over-year performance drivers included:
ENERGY SERVICES
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted earnings/(loss) before interest, income | ||||
taxes, and depreciation and amortization1 | (22) | 73 | 269 | 167 |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Energy Services adjusted EBITDA decreased $95 million for the fourth quarter of 2019 compared with the same period of 2018. Key quarter-over-quarter performance drivers included:
Full year 2019 Adjusted EBITDA results for Energy Services increased $102 million compared with full year results of 2018 primarily due to higher EBITDA contributions from Energy Services crude operations as a result of widening of certain location and quality differentials during the second half of 2018 and the first half of 2019, which increased opportunities to generate profitable margins that were realized during 2019.
ELIMINATIONS AND OTHER
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Operating and administrative (expenses)/recoveries | (10) | 82 | 66 | 55 |
Realized foreign exchange hedge settlements | (50) | (65) | (216) | (219) |
Adjusted earnings/(loss) before interest, income | ||||
taxes, and depreciation and amortization1 | (60) | 17 | (150) | (164) |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Operating and administrative costs captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) inclusive of amounts recovered from business units for the provision of those services. Also, as previously noted, U.S. dollar denominated earnings within the segment results are translated at average foreign exchange rates during the quarter. The offsetting impact of settlements made under the Company's enterprise foreign exchange hedging program are captured in this segment.
Eliminations and Other adjusted EBITDA decreased $77 million for the fourth quarter of 2019, compared with the same period of 2018. Key quarter-over-quarter performance drivers included:
Eliminations and Other adjusted EBITDA increased $14 million for the year ended 2019 compared with the same period of 2018. This increase was a result of:
CONFERENCE CALL
Enbridge will host a conference call and webcast on February 14, 2020 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to provide an enterprise wide business update and review 2019 fourth quarter and full-year 2019 financial results. Analysts, members of the media and other interested parties can access the call toll free at (877) 930-8043 or within and outside North America at (253) 336-7522 using the access code of 7174457#. The call will be audio webcast live at https://edge.media-server.com/mmc/p/nkzon3c7. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available for seven days after the call toll-free (855) 859-2056 or within and outside North America at (404) 537-3406 (access code 7174457#).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
DIVIDEND DECLARATION
On December 9, 2019, the Company's Board of Directors declared the following quarterly dividends. All dividends are payable on March 1, 2020 to shareholders of record on February 14, 2020.
Common Shares1 | $0.81000 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C2 | $0.25305 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P3 | $0.27369 |
Preference Shares, Series R4 | $0.25456 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 35 | $0.23356 |
Preference Shares, Series 56 | US$0.33596 |
Preference Shares, Series 77 | $0.27806 |
Preference Shares, Series 98 | $0.25606 |
Preference Shares, Series 11 | $0.27500 |
Preference Shares, Series 13 | $0.27500 |
Preference Shares, Series 15 | $0.27500 |
Preference Shares, Series 17 | $0.32188 |
Preference Shares, Series 19 | $0.30625 |
1 | The quarterly dividend per common share was increased 9.8% to $0.81000 from $0.73800, effective March 1, 2020. |
2 | The quarterly dividend per share paid on Series C was decreased to $0.25395 from $0.25459 on March 1, 2019, increased to $0.25647 from $0.25395 on June 1, 2019, decreased to $0.25243 from $0.25647 on September 1, 2019, and increased to $0.25305 from $0.25243 on December 1, 2019, due to reset on a quarterly basis following the date of issuance of the Series C Preference Shares. |
3 | The quarterly dividend per share paid on Series P was increased to $0.27369 from $0.25000 on March 1, 2019, due to reset of the annual dividend on March 1, 2019, and every five years thereafter. |
4 | The quarterly dividend per share paid on Series R was increased to $0.25456 from $0.25000 on June 1, 2019, due to the reset of the annual dividend on June 1, 2019, and every five year thereafter. |
5 | The quarterly dividend per share paid on Series 3 was decreased to $0.23356 from $0.25000 on September 1, 2019, due to the reset of the annual dividend on September 1, 2019, and every five year thereafter. |
6 | The quarterly dividend per share paid on Series 5 was increased to US $0.33596 from US $0.27500 on March 1, 2019, due to reset of the annual dividend on March 1, 2019, and every five years thereafter. |
7 | The quarterly dividend per share paid on Series 7 was increased to $0.27806 from $0.27500 on March 1, 2019, due to reset of the annual dividend on March 1, 2019, and every five years thereafter. |
8 | The quarterly dividend per share paid on Series 9 was decreased to $0.25606 from $0.27500 on December 1, 2019, due to the reset of the annual dividend on December 1, 2019, and every five years thereafter. |
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected DCF or DCF per share; expected future cash flows; expected performance of the Company's businesses; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected credit metrics and debt to EBITDA levels; expected cost of capital and costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected equity funding requirements for the Company's commercially secured growth program; expected future growth and expansion opportunities, including optimization plans; expectations about the Company's joint ventures and our partners' ability to complete and finance announced projects and projects under construction; expected closing of acquisitions and dispositions and the timing thereof; expected future actions of regulators and courts; expectations regarding commodity prices; supply forecasts; expectations regarding the impact of transactions; plans to launch binding open seasons, including the terms and timing thereof; toll and rate case discussions and filings, including Mainline Contracting and the anticipated benefits thereof; and dividend growth and dividend payout expectation.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the timing and closing of acquisitions and dispositions; the realization of anticipated benefits and synergies of transactions; governmental legislation; litigation; the success of integration plans; impact of the Company's dividend policy on its future cash flows; credit ratings; capital project funding; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the expected EBITDA, expected adjusted EBITDA, earnings/(loss), expected adjusted earnings/(loss), expected DCF and associated per share amounts, or estimated future dividends. The most relevant assumptions associated with forward-looking statements regarding announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the realization of anticipated benefits and synergies of projects and transactions, operating performance, the Company's dividend policy, regulatory parameters, changes in regulations applicable to the Company's business, acquisitions and dispositions, litigation, project approval and support, renewals of rights of way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
ABOUT ENBRIDGE INC.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise part of this news release.
FOR FURTHER INFORMATION PLEASE | ||
Enbridge Inc. – Media | Enbridge Inc. – Investment Community | |
Jesse Semko | Jonathan Morgan | |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 | |
Email: media@enbridge.com |
NON-GAAP RECONCILIATIONS APPENDICES
This news release contains references to adjusted EBITDA, adjusted earnings, adjusted earnings per common share, and DCF. Management believes the presentation of these metrics gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Adjusted EBITDA represents EBITDA adjusted for unusual, infrequent or other non-operating factors on both a consolidated and segmented basis. Management uses adjusted EBITDA to set targets and to assess the performance of the Company and its Business Units.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, infrequent or other non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, infrequent or other non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes, noncontrolling interests and redeemable noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another measure of the Company's ability to generate earnings.
DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests and redeemable noncontrolling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, infrequent or other non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
Reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly certain contingent liabilities, and non-cash unrealized derivative fair value losses and gains which are subject to market variability. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without unreasonable effort.
Our non-GAAP measures described above are not measures that have standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers.
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON-GAAP RECONCILIATIONS – ADJUSTED EBITDA AND ADJUSTED
EARNINGS
CONSOLIDATED EARNINGS
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Liquids Pipelines | 1,971 | 978 | 7,681 | 5,331 |
Gas Transmission and Midstream | 638 | 1,254 | 3,371 | 2,334 |
Gas Distribution and Storage | 443 | 449 | 1,747 | 1,711 |
Renewable Power Generation | (189) | 83 | 111 | 369 |
Energy Services | (68) | 374 | 250 | 482 |
Eliminations and Other | 114 | (340) | 429 | (708) |
EBITDA | 2,909 | 2,798 | 13,589 | 9,519 |
Depreciation and amortization | (865) | (794) | (3,391) | (3,246) |
Interest expense | (697) | (661) | (2,663) | (2,703) |
Income tax expense | (433) | (60) | (1,708) | (237) |
Earnings attributable to noncontrolling interests and | ||||
redeemable noncontrolling interests | (72) | (99) | (122) | (451) |
Preference share dividends | (96) | (95) | (383) | (367) |
Earnings attributable to common shareholders | 746 | 1,089 | 5,322 | 2,515 |
ADJUSTED EBITDA TO ADJUSTED EARNINGS
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Liquids Pipelines | 1,720 | 1,728 | 7,041 | 6,617 |
Gas Transmission and Midstream | 948 | 952 | 3,868 | 4,068 |
Gas Distribution and Storage | 481 | 452 | 1,819 | 1,726 |
Renewable Power Generation | 119 | 98 | 424 | 435 |
Energy Services | (22) | 73 | 269 | 167 |
Eliminations and Other | (60) | 17 | (150) | (164) |
Adjusted EBITDA | 3,186 | 3,320 | 13,271 | 12,849 |
Depreciation and amortization | (865) | (794) | (3,391) | (3,246) |
Interest expense | (687) | (656) | (2,649) | (2,637) |
Income taxes | (237) | (421) | (1,381) | (1,122) |
Earnings attributable to noncontrolling interests and | ||||
redeemable noncontrolling interests | (73) | (188) | (126) | (909) |
Preference share dividends | (96) | (95) | (383) | (367) |
Adjusted earnings | 1,228 | 1,166 | 5,341 | 4,568 |
Adjusted earnings per common share | 0.61 | 0.65 | 2.65 | 2.65 |
EBITDA TO ADJUSTED EARNINGS
Three months ended | Twelve months ended | ||||||
2019 | 2018 | 2019 | 2018 | ||||
(unaudited, millions of Canadian dollars, except per share amounts) | |||||||
EBITDA | 2,909 | 2,798 | 13,589 | 9,519 | |||
Adjusting items: | |||||||
Change in unrealized derivative fair value (gain)/loss | (754) | 378 | (1,806) | 660 | |||
Hedging program pre-settlement payment | 310 | — | 310 | — | |||
Asset write-down loss | 318 | 32 | 423 | 2,118 | |||
(Gain)/loss on sale of assets | 278 | (72) | 278 | 22 | |||
Employee severance, transition and transformation | |||||||
costs | 52 | 60 | 140 | 203 | |||
Asset monetization transaction costs | — | 23 | — | 88 | |||
Equity investment asset impairment | 34 | 14 | 96 | 47 | |||
Write-down of inventory to the lower of cost or market | 17 | 291 | 188 | 327 | |||
Regulatory liability adjustment | — | (223) | — | (223) | |||
Other | 22 | 19 | 53 | 88 | |||
Total adjusting items | 277 | 522 | (318) | 3,330 | |||
Adjusted EBITDA | 3,186 | 3,320 | 13,271 | 12,849 | |||
Depreciation and amortization | (865) | (794) | (3,391) | (3,246) | |||
Interest expense | (697) | (661) | (2,663) | (2,703) | |||
Income tax expense | (433) | (60) | (1,708) | (237) | |||
Earnings attributable to noncontrolling interests and | |||||||
redeemable noncontrolling interests | (72) | (99) | (122) | (451) | |||
Preference share dividends | (96) | (95) | (383) | (367) | |||
Adjusting items in respect of: | |||||||
Interest expense | 10 | 5 | 14 | 66 | |||
Income taxes | 196 | (361) | 327 | (885) | |||
Earnings attributable to noncontrolling interests and | |||||||
redeemable noncontrolling interests | (1) | (89) | (4) | (458) | |||
Adjusted earnings | 1,228 | 1,166 | 5,341 | 4,568 | |||
Adjusted earnings per common share | 0.61 | 0.65 | 2.65 | 2.65 | |||
APPENDIX B
NON-GAAP RECONCILIATION – SEGMENTED EBITDA TO ADJUSTED EBITDA
LIQUIDS PIPELINES
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 1,720 | 1,728 | 7,041 | 6,617 |
Change in unrealized derivative fair value gain/(loss) | 586 | (715) | 976 | (1,077) |
Hedging program pre-settlement payment | (310) | — | (310) | — |
Asset write-down loss | (21) | (32) | (21) | (186) |
Employee severance, transition and transformation | ||||
costs | — | (1) | — | (26) |
Other | (4) | (2) | (5) | 3 |
Total adjustments | 251 | (750) | 640 | (1,286) |
EBITDA | 1,971 | 978 | 7,681 | 5,331 |
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 948 | 952 | 3,868 | 4,068 |
Change in unrealized derivative fair value gain/(loss) | — | (1) | — | 24 |
Asset write-down loss - US Midstream | — | — | — | (1,932) |
Asset write-down loss - US Gas Transmission | — | — | (105) | — |
Equity investment asset impairment | (24) | — | (86) | — |
Gain/(loss) on sale of assets | (268) | 72 | (268) | (2) |
Asset monetization transaction costs | — | — | — | (20) |
Employee severance, transition and transformation | ||||
costs | (5) | (3) | (5) | (13) |
Regulatory liability adjustment | — | 223 | — | 223 |
Other | (13) | 11 | (33) | (14) |
Total adjustments | (310) | 302 | (497) | (1,734) |
EBITDA | 638 | 1,254 | 3,371 | 2,334 |
GAS DISTRIBUTION AND STORAGE
Three months ended | Twelve months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited; millions of Canadian dollars) | |||||
Adjusted EBITDA | 481 | 452 | 1,819 | 1,726 | |
Change in unrealized derivative fair value gain/(loss) | (21) | 3 | (12) | 6 | |
Loss on sale of assets | (10) | — | (10) | — | |
Noverco Inc. equity earnings adjustment | — | — | — | (9) | |
Employee severance, transition and transformation | |||||
costs | (8) | (6) | (51) | (12) | |
Other | 1 | — | 1 | — | |
Total adjustments | (38) | (3) | (72) | (15) | |
EBITDA | 443 | 449 | 1,747 | 1,711 | |
RENEWABLE POWER GENERATION
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 119 | 98 | 424 | 435 |
Change in unrealized derivative fair value gain/(loss) | — | (1) | 2 | 1 |
Asset write-down loss | (297) | — | (297) | — |
Equity investment asset impairment | (10) | (14) | (10) | (47) |
Loss on sale of assets | — | — | — | (20) |
Other | (1) | — | (8) | — |
Total adjustments | (308) | (15) | (313) | (66) |
EBITDA | (189) | 83 | 111 | 369 |
ENERGY SERVICES
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | (22) | 73 | 269 | 167 |
Change in unrealized derivative fair value gain/(loss) | (29) | 592 | 169 | 642 |
Write-down of inventory to the lower of cost or market | (17) | (291) | (188) | (327) |
Total adjustments | (46) | 301 | (19) | 315 |
EBITDA | (68) | 374 | 250 | 482 |
ELIMINATIONS AND OTHER
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | (60) | 17 | (150) | (164) |
Change in unrealized derivative fair value gain/(loss) | 218 | (256) | 671 | (256) |
Asset monetization transaction costs | — | (23) | — | (68) |
Employee severance, transition and transformation | ||||
costs | (39) | (50) | (84) | (152) |
Other | (5) | (28) | (8) | (68) |
Total adjustments | 174 | (357) | 579 | (544) |
EBITDA | 114 | (340) | 429 | (708) |
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING
ACTIVITIES TO DCF
Three months ended | Twelve months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Cash provided by operating activities | 1,993 | 2,503 | 9,398 | 10,502 |
Adjusted for changes in operating assets and liabilities1 | (192) | 28 | 259 | (915) |
1,801 | 2,531 | 9,657 | 9,587 | |
Distributions to noncontrolling interests and redeemable | ||||
noncontrolling interests4 | (54) | (281) | (204) | (1,182) |
Preference share dividends | (96) | (96) | (383) | (364) |
Maintenance capital expenditures2 | (342) | (361) | (1,083) | (1,144) |
Significant adjusting items: | ||||
Other receipts of cash not recognized in revenue3 | 30 | 51 | 169 | 208 |
Employee severance, transition and transformation | ||||
costs | 52 | 59 | 143 | 248 |
Asset monetization costs | — | 23 | — | 107 |
Distributions from equity investments in excess of | ||||
cumulative earnings4 | 154 | 35 | 361 | 326 |
Regulatory liability adjustment | — | (223) | — | (223) |
Hedging program pre-settlement payment | 310 | — | 310 | — |
Other items | 196 | 125 | 254 | 55 |
DCF | 2,051 | 1,863 | 9,224 | 7,618 |
1 | Changes in operating assets and liabilities, net of recoveries. |
2 | Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing pipeline system or that are necessary to maintain the service capability of the existing assets (including the replacement of components that are worn, obsolete or completing their useful lives). For the purpose of DCF, maintenance capital excludes expenditures that extend asset useful lives, increase capacities from existing levels or reduce costs to enhance revenues or provide enhancements to the service capability of the existing assets. |
3 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
4 | Presented net of adjusting items. |
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-reports-strong-fourth-quarter--full-year-2019-results-301005108.html
SOURCE Enbridge Inc.
Article Date
2/14/2020NextDecade and Enbridge Sign Definitive Agreement Regarding Rio Bravo Pipeline
Source: PR Newswire
HOUSTON, Feb. 13, 2020 /PRNewswire/ - NextDecade Corporation (NextDecade) (NASDAQ: NEXT) and Enbridge Inc. (Enbridge) (TSX: ENB) (NYSE: ENB) announced today that they have entered into a definitive agreement whereby Enbridge will acquire Rio Bravo Pipeline Company, LLC (RBPL) from NextDecade for a cash purchase price not to exceed $25 million, with $15 million paid at closing and the balance paid upon NextDecade's reaching a positive final investment decision (FID) on its Rio Grande LNG export facility in the Port of Brownsville, Texas.
Upon closing of the transaction, Enbridge will own one hundred percent of RBPL and assume all responsibility for the development, financing, construction, and operations of the Rio Bravo Pipeline. NextDecade will continue to be responsible for the development, financing, construction, and operations of its Rio Grande LNG export facility.
In addition, Enbridge and NextDecade have negotiated a precedent agreement, to be executed at closing, whereby NextDecade will retain its rights to the natural gas firm transportation capacity on the Rio Bravo Pipeline for a term of at least twenty years to supply NextDecade's Rio Grande LNG export facility.
"This agreement with Enbridge further enhances our commitment to our global LNG customers, natural gas suppliers and other stakeholders to deliver our Rio Grande LNG project on time and on budget," said Matt Schatzman, NextDecade's Chairman and Chief Executive Officer. "As one of North America's leading energy infrastructure companies, Enbridge brings extensive natural gas pipeline experience to execute the Rio Bravo Pipeline, and we are delighted to have them involved in supporting the delivery of our Rio Grande LNG project."
"We are excited to move forward with this transaction," said Bill Yardley, Enbridge's Executive Vice President and President of Gas Transmission and Midstream. "Enbridge's commitment to the development of the Rio Bravo Pipeline in support of NextDecade's Rio Grande LNG project further strengthens our ability to serve the expanding LNG export market and fits squarely within our low-risk business model."
The Rio Bravo Pipeline is designed to transport up to 4.5 billion cubic feet per day of natural gas from the Agua Dulce supply area to NextDecade's Rio Grande LNG project in Brownsville, Texas. In November 2019, the Federal Energy Regulatory Commission (FERC) issued an order authorizing the siting, construction, and operation of NextDecade's Rio Grande LNG project and the Rio Bravo Pipeline. In January 2020, FERC issued a final order on rehearing for the Rio Grande LNG project and the Rio Bravo Pipeline.
The agreement has been approved by the Boards of Directors of both companies. Subject to the satisfaction of certain conditions, the transaction is expected to close in the first quarter of 2020.
About NextDecade Corporation
NextDecade is a LNG development company focused on LNG export projects and associated pipelines in Texas. NextDecade intends to develop the largest LNG export solution linking Permian Basin associated gas to the global LNG market, creating value for producers, customers, and stockholders. Its portfolio of LNG projects includes the 27 mtpa Rio Grande LNG export facility in Brownsville, Texas and the 4.5 Bcf/d Rio Bravo Pipeline that would transport natural gas from the Agua Dulce area to Rio Grande LNG. NextDecade's common stock is listed on the Nasdaq Stock Market under the symbol "NEXT." NextDecade is headquartered in Houston, Texas. For more information, visit www.next-decade.com.
NextDecade Forward-Looking Information
This press release contains forward-looking statements within the meaning of U.S. federal securities laws. The words "anticipate," "contemplate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "might," "will," "would," "could," "should," "can have," "likely," "continue," "design" and other words and terms of similar expressions are intended to identify forward-looking statements, and these statements may relate to the business of NextDecade and its subsidiaries. These statements have been based on NextDecade's current assumptions, expectations, and projections about future events and trends and involve a number of known and unknown risks, which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements. These risks include uncertainties about progress in the development of NextDecade's LNG liquefaction and export projects and the timing of that progress; government approval of construction and operation of NextDecade's Rio Grande LNG and Rio Bravo Pipeline projects terminal at the Port of Brownsville in southern Texas (the "Terminal") and an associated 137-mile pipeline to supply gas to the Terminal (the "Pipeline" and together with the Terminal, the "Project") and the timing of that approval; the successful completion of the Project by third-party contractors; our ability to secure additional debt and equity financing in the future to complete the Project; the accuracy of estimated costs for the Project; statements that the Project, when completed, will have certain characteristics, including amounts of liquefaction capacities; NextDecade's anticipated competitive advantage and technological innovation which may render its anticipated competitive advantage obsolete; the global demand for and price of natural gas (versus the price of imported LNG); the availability of LNG vessels worldwide; negotiations for the Terminal site lease and right-of-way options for the Pipeline route; changes in legislation and regulations relating to the LNG industry, including environmental laws and regulations that impose significant compliance costs and liabilities; risks related to doing business in and having counterparties in foreign countries; changes adversely affecting the business in which NextDecade is engaged; management of growth; general economic conditions; NextDecade's ability to generate cash; compliance with environmental laws and regulations; the result of future financing efforts and applications for customary tax incentives; and other matters discussed in the "Risk Factors" section of NextDecade's Annual Report on Form 10-K for the year ended December 31, 2018 and other subsequent reports filed with the Securities and Exchange Commission, all of which are incorporated herein by reference.
Additionally, any development of the Project remains contingent upon completing required commercial agreements, acquiring all necessary permits and approval, securing all financing commitments and potential tax incentives, achieving other customary conditions and making a final investment decision to proceed. The forward-looking statements in this press release speak as of the date of this release. Although NextDecade believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that the expectations will prove to be correct. NextDecade may from time to time voluntarily update its prior forward-looking statements, however, it disclaims any commitment to do so except as required by securities laws.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
Enbridge Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this press release to provide information about Enbridge and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included in this press release include, but are not limited to, statements with respect to NextDecade's Rio Grande LNG and Rio Bravo Pipeline projects terminal at the Port of Brownsville in southern Texas (the "Terminal") and an associated 137-mile pipeline to supply gas to the Terminal (the "Pipeline" and together with the Terminal, the "Project"), including the acquisition of RBPL by Enbridge; the benefits, risks, costs and timing of the transaction and the Project; and the expected capacity and characteristics of the Pipeline.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas and LNG, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for Enbridge's services and for the Project. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which Enbridge operates and may impact levels of demand for Enbridge's services and the Project and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the impact of customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather; and the ability of our joint venture partners to complete and finance proposed projects, including the Terminal.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this press release and in Enbridge's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on Enbridge's behalf, are expressly qualified in their entirety by these cautionary statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media - NextDecade
communications@next-decade.com
+ 1 (281) 249 5453
Investors - NextDecade
ir@next-decade.com
+ 1 (832) 910 8629
Media – Enbridge
Email: media@enbridge.com
Toll Free: (888) 992-0997
Investment Community - Enbridge
Email: investor.relations@enbridge.com
Toll Free: (800) 481-2804
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SOURCE Enbridge Inc.
Article Date
2/14/2020Minnesota Public Utilities Commission Approves/Accepts Line 3RP Revised FEIS and Reaffirms Certificate of Need and Routing Permits
Source: PR Newswire
Pipeline replacement project to move forward
CALGARY and DULUTH, MN, Feb. 3, 2020 /PRNewswire/ - Enbridge Inc. (NYSE: ENB) (TSX: ENB) said it is pleased with today's ruling by the Minnesota Public Utilities Commission (MPUC) that the Line 3 Replacement Project (L3RP)'s second revised Final Environmental Impact Statement (FEIS) is adequate. The MPUC also reaffirmed L3RP's applications for a certificate of need and pipeline routing permit.
"After nearly five years of community engagement, environmental review, regulatory and legal review, it's good to see the Line 3 Replacement Project move forward," said Vern Yu, Executive Vice President, Liquids Pipelines. "It is a $2.6 billion investment in the state's critical energy infrastructure, but from the start of the project has been about improving safety and reliability for communities and the environment. We now look forward to next steps on the project's remaining permits." The replacement of Line 3 is the most studied pipeline project in Minnesota history.
Enbridge will continue to work with the State and Federal permitting agencies to finalize the permits required to start construction.
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to L3RP and expected regulatory and permitting actions and decisions.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/minnesota-public-utilities-commission-approvesaccepts-line-3rp-revised-feis-and-reaffirms-certificate-of-need-and-routing-permits-300998089.html
SOURCE Enbridge Inc.
Article Date
2/4/20201/31/2020 - Enbridge Provides Notice of Series 11 Preferred Shares Conversion Right and Announces Reset Dividend Rates
Enbridge Provides Notice of Series 11 Preferred Shares Conversion Right and Announces Reset Dividend Rates
Source: PR Newswire
CALGARY, Jan. 31, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series 11 (Series 11 Shares) (TSX: ENB.PF.C) on March 1, 2020. As a result, subject to certain conditions, the holders of the Series 11 Shares have the right to convert all or part of their Series 11 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 12 of Enbridge (Series 12 Shares) on March 1, 2020. Holders who do not exercise their right to convert their Series 11 Shares into Series 12 Shares will retain their Series 11 Shares.
The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series 11 Shares outstanding after March 1, 2020, then all remaining Series 11 Shares will automatically be converted into Series 12 Shares on a one-for-one basis on March 1, 2020; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 12 Shares outstanding after March 1, 2020, no Series 11 Shares will be converted into Series 12 Shares. There are currently 20,000,000 Series 11 Shares outstanding.
With respect to any Series 11 Shares that remain outstanding after March 1, 2020, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series 11 Shares for the five-year period commencing on March 1, 2020 to, but excluding, March 1, 2025 will be 3.938 percent, being equal to the five-year Government of Canada bond yield of 1.298 percent determined as of today plus 2.64 percent in accordance with the terms of the Series 11 Shares.
With respect to any Series 12 Shares that may be issued on March 1, 2020, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series 12 Shares for the three-month floating rate period commencing on March 1, 2020 to, but excluding, June 1, 2020 will be 1.07879 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 1.64 percent plus 2.64 percent in accordance with the terms of the Series 12 Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.
Beneficial holders of Series 11 Shares who wish to exercise their right of conversion during the conversion period, which runs from January 31, 2020 until 5:00 p.m. (EST) on February 18, 2020, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.
Forward-Looking Statements
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge, including statements with respect to the conversion of all or part of the Series 11 Shares into Series 12 Shares on March 1, 2020, the annual dividend rate that will apply to any outstanding Series 11 Shares on March 1, 2020, the quarterly dividend rate that will apply to any Series 12 Shares on March 1, 2020, and the declaration of dividends by the Board of Directors of Enbridge. This information may not be appropriate for other purposes. Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and on processes used to prepare the information, such statements are not guarantees of future events and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual events to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about whether holders of Series 11 Shares will exercise their right to convert their Series 11 Shares into Series 12 Shares.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-provides-notice-of-series-11-preferred-shares-conversion-right-and-announces-reset-dividend-rates-300997113.html
SOURCE Enbridge Inc.
Article Date
1/31/20201/22/2020 - Enbridge Inc. to Host Webcast to Discuss 2019 Fourth Quarter and Full-Year Results on February 14
Enbridge Inc. to Host Webcast to Discuss 2019 Fourth Quarter and Full-Year Results on February 14
Source: PR Newswire
CALGARY, Jan. 22, 2020 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) will host a conference call and webcast to provide an enterprise-wide business update and review 2019 fourth quarter and full-year results on February 14, 2020 at 7:00 a.m. MT (9:00 a.m. ET).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
Enbridge will announce its financial results before markets open on February 14, 2020.
2019 Fourth Quarter Earnings Webcast and Conference Call
When: | Friday February 14, 2020 | |
7:00 a.m. MT (9:00 a.m. ET) | ||
Webcast: | ||
Call: | Dial-in (Audio only – please dial in 10 minutes ahead): | |
North America Toll Free: | 1 (877) 930-8043 | |
Outside North America: | 1 (253) 336-7522 | |
Participant Passcode: | 7174457 | |
A webcast replay will be available approximately two hours after the conclusion of the event and a transcript will be posted to the company website within approximately 24 hours.
Replay: | Audio Replay # (Available for 7 days after call): | |
North America Toll Free: | 1 (855) 859-2056 | |
Outside North America: | 1 (404) 537-3406 | |
Replay Passcode: | 7174457 | |
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-to-host-webcast-to-discuss-2019-fourth-quarter-and-full-year-results-on-february-14-300991692.html
SOURCE Enbridge Inc.
Article Date
1/22/2020Enbridge Closes the Federally Regulated Portion of the Previously Announced Sale of Natural Gas Gathering & Processing Assets in Northern British Columbia to Brookfield Infrastructure
Source: PR Newswire
CALGARY, Dec. 31, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) today announced the closing of the agreement through which Enbridge has sold a number of federally-regulated natural gas gathering and processing assets in British Columbia ("G&P Business") to Brookfield Infrastructure (NYSE: BIP) (TSX: BIP.UN) and its institutional partners (collectively, "Brookfield"). These federally-regulated assets represent the second phase of the $4.3 B transaction, previously announced on July 4, 2018.
Enbridge has now closed the complete sale of the Canadian G&P Business, which includes 19 provincially and federally-regulated natural gas processing plants and 3,550 kilometres of natural gas gathering pipelines in British Columbia and Alberta. Under Brookfield's ownership, the G&P Business is named NorthRiver Midstream Inc.
In addition, the Company has now received total proceeds of approximately $8 billion from previously announced non-core asset sales. These transactions have further focused Enbridge's business on low risk pipeline and utility assets, strengthened Enbridge's balance sheet and provided the Company with additional financial flexibility.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Tracie Kenyon
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:SOURCE Enbridge Inc.
Article Date
12/31/201912/24/2019 - Correction Notice to Press Release Regarding Dividend Amount on Preference Shares, Series 9
Correction Notice to Press Release Regarding Dividend Amount on Preference Shares, Series 9
Source: PR Newswire
CALGARY, Dec. 23, 2019 /PRNewswire/ - Enbridge Inc. (TSX, NYSE: ENB) (Enbridge or the Company) announced today a correction to its press release issued on December 10, 2019 in respect of the dividend amount declared on its Preference Shares, Series 9 only. In the press release, the dividend amount payable March 1, 2020 to shareholders of record on February 14, 2020 was misstated as $0.26926. The correct amount is $0.25606.
About Enbridge Inc
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Tracie Kenyon
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/correction-notice-to-press-release-regarding-dividend-amount-on-preference-shares-series-9-300979150.html
SOURCE Enbridge Inc.
Article Date
12/24/201912/19/2019 - Enbridge Files Regulatory Application in Support of Contracting its Mainline Pipeline System
Enbridge Files Regulatory Application in Support of Contracting its Mainline Pipeline System
Source: PR Newswire
CALGARY, Dec. 19, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) submitted today an application to the Canada Energy Regulator (CER) to implement contracting on the company's Mainline pipeline system.
The application for contracted and uncommitted service includes the associated terms, conditions and tolls of each service which would be offered in an open season following approval by the CER. The tolls and services will replace the current tolling settlement that is in place until June 30, 2021.
"We are moving to a contracted Mainline system in response to what our customers have been asking us for and for the benefit of the entire industry," said Guy Jarvis, Enbridge Executive Vice President, Liquids Pipelines. "Today's application is based on significant input and advice from every corner of our industry and almost two years of extensive negotiation with shippers to recognize the needs of various customers in a balanced way."
"Shippers representing approximately 70 per cent of the Mainline's current throughput support our approach, as evidenced by the letters included within our application", said Jarvis. "The most important part of this offering will be to secure long-term demand for Canadian crude oil while ensuring that all interested shippers can participate in a fair and transparent open season process."
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included or incorporated by reference in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' and affiliates' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the proposed Canadian Mainline contract offering, including the benefits and timing thereof and the process and timetable to receive applicable governmental, regulatory and other approvals, including the approval of the Canada Energy Regulator.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to customer and regulatory approvals and other risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements
About Enbridge Inc
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Tracie Kenyon
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/enbridge-files-regulatory-application-in-support-of-contracting-its-mainline-pipeline-system-300977932.html
SOURCE Enbridge Inc.
Article Date
12/19/201912/10/2019 - Enbridge Increases Dividend by 9.8%, Announces 2020 Financial Guidance and Provides Update on Strategic Priorities
Enbridge Increases Dividend by 9.8%, Announces 2020 Financial Guidance and Provides Update on Strategic Priorities
Source: PR Newswire
CALGARY, Dec. 10, 2019 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB)(NYSE:ENB) announced its 2020 dividend and financial guidance and provided an update on its strategic priorities, which will be further discussed at the Company's investor conference today in New York.
Highlights
Strategic Plan
In 2019, Enbridge successfully completed the 3-year strategic plan it set out following the acquisition of Spectra Energy in early 2017. Since the acquisition, the Company has fully integrated the Spectra assets, streamlined its business portfolio through $8 billion of non-core asset sales, substantially simplified its corporate structure through the buy-in of four sponsored vehicles, and significantly enhanced its financial strength and flexibility, all while continuing to deliver solid operating and financial performance. Today, Enbridge's low risk profile, diversified business mix and strategically located assets generate highly reliable cash flows and the Company is well positioned for continued growth.
In its 2020 Strategic Plan, the Company is focused on maintaining resilience and prudently growing its three world-class core franchises: Liquids Pipelines, Gas Transmission, and Gas Distribution and Storage. Specific priorities include:
CEO Comment
Commenting on the strategic plan, Al Monaco, President and CEO of Enbridge noted: "Our assets are essential to meeting North America's standard of living and economic growth. With the significant repositioning of the Company now complete following the Spectra transaction, our asset base and low risk business model position us very well for the future.
"While we make changes to our plans and priorities to adapt to the business environment, one thing that will always stay the same is our focus on the safety and reliability of our systems – this is the single most important priority for everyone at Enbridge.
"In the near term, our emphasis will be on capital efficient in-franchise growth and executing our secured capital projects. We'll continue to maximize operational and financial performance to provide unique value to our customers. Over the medium to longer term, Enbridge's diversified asset base, integrated infrastructure networks and extensive reach provide us with many opportunities to extend growth. Post 2020, we expect embedded growth and new organic opportunities to generate annual DCF/share growth of 5-7%, on average, within a self-funded model.
"We will maintain a disciplined approach to capital allocation. Our near-term priorities on that front are unchanged, as we focus on preserving our strong balance sheet, returning capital to shareholders through our dividend and executing on low risk, capital efficient organic growth opportunities.
"For the last 25 years, we've reliably grown the business and returned capital to shareholders through our dividend, which has consistently grown by 11% annually on average over this time frame. We are pleased to be providing our shareholders with another strong dividend increase for 2020, which reflects the strength of our business, our confidence in the future and our ability to meet the needs of our customers during both attractive and challenging commodity cycles and industry conditions."
2020 Financial Outlook
Enbridge provided updated guidance for earnings before interest, taxes, depreciation and amortization (EBITDA) for 2020 of approximately $13.7 billion and an updated guidance range of distributable cash flow per share (DCF/share) for 2020 of $4.50 to $4.80 per share.
Separately, Enbridge announced that the quarterly dividend for 2020 will be increased by 9.8% to $0.81 per share, commencing with the dividend payable on March 1, 2020, to shareholders of record on February 14, 2020.
Business Development Updates
Liquids USGC Strategy
Yesterday, Enbridge announced a letter of intent with Enterprise Products Partners L.P. to jointly develop the U.S. Gulf Coast (USGC) deep-water Sea Port Oil Terminal export facility capable of fully loading Very Large Crude Carriers, subject to the facility receiving a deep-water port license. In addition, Enbridge will advance the development of the Jones Creek Crude Oil Terminal, which will be fully integrated with the Seaway pipeline system and will provide connectivity to local refineries as well as export facilities. In addition to already announced plans to consider an expansion of the Seaway system, these initiatives represent a significant step in Enbridge's USGC strategy to provide customers with enhanced flexibility and last mile connectivity for light and heavy crude shipments to export markets and local refineries.
Line 3 Replacement
On December 1, Enbridge began service on the Canadian segment of the Line 3 Replacement project. This will enhance the safety and reliability of the system in Canada while providing additional Mainline flexibility.
On December 9, the MPUC advised that the Minnesota Department of Commerce has issued an amended FEIS to reflect additional spill modelling work as directed by the Minnesota Court of Appeals. The MPUC has initiated a public comment period on the adequacy of the FEIS and what actions the MPUC should take with respect to the Certificate of Need and Route Permit. The public comment period closes on January 16, 2020 and provides for a one-day oral comment session for the public on December 19, 2019.
The Company will require further clarity on regulatory and permitting process and timing before it is in a position to assess the implications to the in-service date of the U.S. segment of the pipeline.
Mainline Contracting
Today, Enbridge notified the Canada Energy Regulator that it intends to file a regulatory application for contracting the Mainline system before the end of the year. Enbridge has strong support for this application from a cross section of producers, integrated producers and refiners representing a significant share of current system throughput and through its evidence will demonstrate that its proposed contract offering addresses customer needs and serves the public intertest.
Details of Enbridge's Investor Conference
Enbridge will hold its annual investor conference to discuss the Company's strategic plan and financial outlook at 8:00 a.m. ET on Tuesday, December 10th, in New York City.
The conference will be webcast live on the Company's website and can be accessed via the following link: Sign-up
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge and its subsidiaries and affiliates, including management's assessment of our and our subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate", "believe", "estimate", "expect", "forecast", "intend", "likely", "plan", "project", "target" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected earnings before interest, income taxes and depreciation and amortization (EBITDA); expected earnings/(loss); expected earnings/(loss) per share; expected future cash flows and distributable cash flow (DCF) per share; expected future dividends; expected performance of the Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation and Transmission, and Energy Services businesses; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected equity funding requirements for our commercially secured growth program; expected future growth and expansion opportunities; expectations about our joint venture partners' ability to complete and finance projects under construction; expected closing of acquisitions and dispositions and expected timing thereof; expected future actions of regulators and related court proceedings; expectations regarding commodity prices; supply forecasts; expectations regarding the impact of the stock-for-stock merger transaction completed on February 27, 2017 between Enbridge and Spectra Energy Corp (the Merger Transaction) including our combined scale, financial flexibility, growth program, future business prospects and performance; the transactions undertaken to simplify our corporate structure; Line 3 Replacement Program, including matters relating to the Minnesota Public Utilities Commission and other regulators; Mainline System contracting and the regulatory application with respect thereto; our dividend payout policy; dividend growth and dividend payout expectation; and expectations resulting from the successful execution of our 2020 Strategic Plan.
Although we believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labor and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for our projects; anticipated in-service dates; weather; the timing and closing of acquisitions and dispositions; the realization of anticipated benefits and synergies of the Merger Transaction; governmental legislation; the success of integration plans; impact of the dividend policy on our future cash flows; credit ratings; capital project funding; expected EBITDA; expected earnings/(loss); expected earnings/(loss) per share; expected future cash flows and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for our services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which we operate and may impact levels of demand for our services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected EBITDA, expected earnings/(loss), expected earnings/(loss) per share, expected future cash flows and DCF per share and estimated future dividends. The most relevant assumptions associated with forward-looking statements regarding announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labor and construction materials; the effects of inflation and foreign exchange rates on labor and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Our forward-looking statements are subject to risks and uncertainties pertaining to operating performance, regulatory parameters, changes in regulations applicable to our business, acquisitions and dispositions, the realization of anticipated benefits and synergies of the Merger Transaction and the transactions undertaken to simplify our corporate structure, our dividend policy, project approval and support, renewals of rights-of-way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in our other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent 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 applicable law, Enbridge Inc. assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to us or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements.
Non-GAAP Measures
This news release makes reference to non-GAAP measures, including distributable cash flow (DCF) and DCF per share. DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to non-controlling interests and redeemable non-controlling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management uses DCF to assess performance of the Company and to set its dividend payout target. Management believes the presentation of these measures gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly certain contingent liabilities and non-cash unrealized derivative fair value losses and gains which are subject to market variability. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without unreasonable effort.
The non-GAAP measures described above are not measures that have a standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers. A reconciliation of historical non-GAAP measures to the most directly comparable GAAP measures is available on the Company's website. Additional information on non-GAAP measures may be found on the Company's website, www.sedar.com or www.sec.gov.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-increases-dividend-by-9-8-announces-2020-financial-guidance-and-provides-update-on-strategic-priorities-300971774.html
SOURCE Enbridge Inc.
Article Date
12/10/2019Enbridge Inc. Announces 9.8 Percent Quarterly Dividend Increase for 2020
Source: PR Newswire
CALGARY, Dec. 10, 2019 /PRNewswire/ - Enbridge Inc. (TSX, NYSE: ENB) (Enbridge or the Company) announced today that its Board of Directors has declared a quarterly dividend of $0.81 per common share, payable on March 1, 2020 to shareholders of record on February 14, 2020. The declared dividend represents a 9.8 percent increase from the prior quarterly rate and the twenty-fifth consecutive year in which the Company has increased its common share dividend.
DIVIDEND DECLARATION
On December 9, 2019, the Enbridge Board of Directors declared the following quarterly dividends. All dividends are payable on March 1, 2020 to shareholders of record on February 14, 2020.
Common Shares | $0.81 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C | $0.25305 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P | $0.27369 |
Preference Shares, Series R | $0.25456 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 3 | $0.23356 |
Preference Shares, Series 5 | US$0.33596 |
Preference Shares, Series 7 | $0.27806 |
Preference Shares, Series 9 | $0.26926 |
Preference Shares, Series 11 | $0.27500 |
Preference Shares, Series 13 | $0.27500 |
Preference Shares, Series 15 | $0.27500 |
Preference Shares, Series 17 | $0.321875 |
Preference Shares, Series 19 | $0.30625 |
ABOUT ENBRIDGE INC.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Tracie Kenyon
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-announces-9-8-percent-quarterly-dividend-increase-for-2020--300971775.html
SOURCE Enbridge Inc.
Article Date
12/10/2019Enbridge and Enterprise Products to Jointly Develop Deepwater Port; Enbridge moves forward with development of new Houston-area storage Terminal
Source: PR Newswire
HOUSTON, Dec. 9, 2019 /PRNewswire/ - Enbridge Inc. (TSX:ENB)(NYSE:ENB) (Enbridge) and Enterprise Products Partners L.P. (NYSE: EPD) (Enterprise) announced today they have agreed to jointly develop and market a deep-water offshore crude oil export terminal capable of fully loading Very Large Crude Carriers (VLCCs).
Under the terms of the Letter of Intent (LOI), Enbridge and Enterprise will work to finalize an equity participation agreement (Agreement). The Agreement would allow Enbridge an option to purchase an ownership interest in Enterprise's Sea Port Oil Terminal (SPOT), subject to SPOT receiving a deep-water port license. The parties intend to initially focus commercial development efforts on seeking customer support to fully utilize SPOT. As the crude oil export market continues to grow, Enbridge anticipates that its Texas COLT deep-water port will be well positioned to proceed.
"We are pleased to be teaming up with Enterprise to bring large scale, integrated export solutions to the market," said Enbridge President and CEO Al Monaco. "This collaboration leverages our jointly owned and highly competitive Seaway system and capitalizes on each of our capabilities to drive out highly capital efficient export infrastructure for our customers. For Enbridge, it's also a key part of our priority to provide our North American light and heavy crude customers with highly efficient access to the Houston-area refining markets and growing global demand."
Enbridge also announced that it will advance the development of a new wholly-owned Jones Creek Crude Oil Storage Terminal. The terminal will have ultimate capability of up to 15 million barrels of storage; access to crude oil from all major North American production basins and will be fully integrated with the Seaway Pipeline system to allow for access to Houston-area refineries, existing export facilities and other facilities in the future.
Seaway announced on November 25, 2019, a plan to proceed with an open season to secure interest in a potential 200,000 barrels per day expansion of the system. Seaway is well-positioned as a highly competitive option to transport Cushing volumes to a fully integrated network of pipelines, storage facilities, and export terminals along the US Gulf Coast.
"The combination of the proposed Seaway expansion, the development of our Jones Creek Storage Terminal and our expanded offshore VLCC, positions us nicely and advances our strategy to enhance and extend North America's premiere crude oil value chain – one that stretches from western Canada, to the Midwest and through to the Midcontinent and US Gulf Coast. It also fits very well with our broader goal to further build out our export infrastructure position in both crude oil and natural gas," said Monaco.
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to proposed projects to develop a deep-water offshore export terminal with Enterprise, SPOT, Texas COLT and the Jones Creek Terminal, including the benefits, risks, costs and timing thereof, the receipt of applicable permits and governmental, regulatory, customer and other approvals, and other related matters.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the impact of customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather; and the ability of our joint venture partners to complete and finance proposed projects.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT: | |
Media | Investment Community |
Michael Barnes | Jonathan Morgan |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com | |
View original content:http://www.prnewswire.com/news-releases/enbridge-and-enterprise-products-to-jointly-develop-deepwater-port-enbridge-moves-forward-with-development-of-new-houston-area-storage-terminal-300970784.html
SOURCE Enbridge Inc.
Article Date
12/9/2019Enbridge to host Investor Conference on December 10
Source: PR Newswire
CALGARY, Dec. 3, 2019 /PRNewswire/ - Enbridge Inc. (TSX:ENB)(NYSE:ENB) (Enbridge or the Company) will hold an investor conference on Tuesday, December 10 in New York, NY to discuss the Company's strategic plan and financial outlook.
The conference will be webcast live at Enbridge.com.
Details of the webcast:
When: Tuesday, December 10, 2019
8:00 a.m. ET (6:00 a.m. MT) to 12:30 p.m. ET (10:30 a.m. MT)
Webcast: Sign-up
The webcast format will be listen-only mode.
Presentations and supporting materials will be posted to Enbridge's website in 'Events and Presentations' at 7:30 a.m. ET on Tuesday, December 10.
Participants attending in person are encouraged to download the materials prior to the event as hard copies will not be provided. Wifi will be available at the venue.
A webcast replay will be available approximately two hours after the conclusion of the event and a transcript will be posted to Enbridge's website approximately 24 hours after the event.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Tracie Kenyon
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-to-host-investor-conference-on-december-10-300968474.html
SOURCE Enbridge Inc.
Article Date
12/3/2019Enbridge Announces Conversion Results for Series 9 Preferred Shares
Source: PR Newswire
CALGARY, Nov. 18, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that none of its outstanding Cumulative Redeemable Preference Shares, Series 9 (Series 9 Shares) will be converted into Cumulative Redeemable Preference Shares, Series 10 of Enbridge (Series 10 Shares) on December 1, 2019.
After taking into account all conversion notices received from holders of its outstanding Series 9 Shares by the November 18, 2019 deadline for the conversion of the Series 9 Shares into Series 10 Shares, less than the 1,000,000 Series 9 Shares required to give effect to conversions into Series 10 Shares were tendered for conversion.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media | Investment Community |
Tracie Kenyon | Jonathan Morgan |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com |
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-conversion-results-for-series-9-preferred-shares-300960412.html
SOURCE Enbridge Inc.
Article Date
11/18/2019Enbridge Inc. Reports Strong Third Quarter 2019 Results
Source: PR Newswire
CALGARY, Nov. 8, 2019 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB) (NYSE:ENB) today reported third quarter 2019 financial results and provided a quarterly business update.
THIRD QUARTER 2019 HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
CEO COMMENT
"We delivered another strong quarter of operating and financial results," commented Al Monaco, President and Chief Executive Officer of Enbridge. "The continued strength of our operating performance reflects the quality and predictability of our business model. Once again, we saw strong throughput on our Mainline system during the quarter, with demand for crude volumes out of Western Canada and the Bakken through to U.S. Gulf Coast markets. In addition, our gas transmission business remained in high demand and our Ontario gas utility continued to realize operating synergies following the amalgamation earlier this year.
"Record third quarter EBITDA and DCF was further bolstered by reliable and growing cash flow from new capital projects placed into service over the past year. As a result, we remain confident in achieving our financial guidance for 2019, despite the delay of the Line 3 Replacement Project, with full year results expected to exceed the midpoint of our 2019 DCF guidance range of $4.30 to $4.60 per share.
"In addition to delivering strong financial results, we advanced key initiatives in each of our business units during the quarter. In Liquids Pipelines, we've reached commercial agreement to place the Canadian portion of the Line 3 Replacement Project into service later this year, which will further enhance the safety and reliability of our Mainline system.
"Liquids Pipelines is also moving forward with around 100 kbpd of optimizations that we'll be implementing by year end and in addition to that we have successfully completed an open season supporting a 50 kbpd expansion of the Express Pipeline. Together, these actions provide much needed additional takeaway capacity out of the WCSB.
"On the U.S. portion of our Line 3 Replacement Project, the Minnesota Supreme Court rejected the remaining appeals on the EIS, and the MPUC has now directed the Minnesota Department of Commerce to complete the necessary spill modelling work to remediate the EIS. We're pleased that this regulatory process is moving forward so we can bring this integrity replacement project into service as soon as possible.
"On our Liquids Mainline contract offering, the CER's decision, despite 18 months of negotiations with customers which resulted in substantial capacity commitments from shippers, was a significant departure from precedent. We continue to have strong support for a priority access offering from shippers, including refiners, producers and marketers that represent a significant majority of current throughput. Our Mainline system provides a vital connection for these shippers serving over 3 mbpd of refining demand and downstream contracted capacity. The Mainline provides the most economic tolls to the best markets, resulting in the strongest netback for Western Canadian crude. We remain committed to our offering and plan to file an application to the regulator as soon as practical.
"Within the Gas Transmission business, we filed a settlement agreement with the FERC on the Texas Eastern rate case and continue to advance rate case discussions on the Algonquin systems, further optimizing our base business. In addition to recently announced U.S. Gulf Coast LNG pipeline projects, we entered into a MOU to jointly pursue the development of the Rio Bravo Pipeline and other natural gas pipelines in South Texas to move natural gas to NextDecade's Rio Grande LNG project in Brownsville, TX. We continue to see significant opportunities to expand and extend our competitively positioned gas pipeline network to serve the U.S. Gulf Coast LNG market.
"Execution of our $19 billion secured growth capital program remains on track. This includes our US$0.7 billion investment in the Gray Oak pipeline, stretching from the Permian and Eagle Ford to the Texas Gulf Coast, which is expected to come into service before the end of the year and our $1.1 billion Hohe See offshore wind power project in Germany which has now completed installation of all turbines and the facility is expected to be fully operational in the fourth quarter.
"On the financing front, we've raised over $4 billion of term debt at favourable rates in the Canadian and U.S. markets this year, the bulk of which has been used to refinance maturing long term debt. As a result, our consolidated Debt to EBITDA in the third quarter remained at 4.6x, well within our longer-term target range.
"Lastly, we remain focused on our key priorities for the year, which include achieving strong operating and financial results, adding to the secured project inventory, maintaining our financial strength and the continued self-funding of new growth. We believe that these actions, along with our enhanced focus on capital allocation, growth and return on capital, will maximize shareholder value and deliver on our attractive investor value proposition.
"In summary, it was another strong quarter for the Company and we're pleased with the performance across each of the business units as well as the progress being made on key priorities," concluded Mr. Monaco.
FINANCIAL RESULTS SUMMARY
Financial results for the three and nine months ended September 30, 2019, are summarized in the table below:
Three months ended | Nine months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars, except per share amounts; | |||||
number of shares in millions) | |||||
GAAP Earnings attributable to common shareholders | 949 | (90) | 4,576 | 1,426 | |
GAAP Earnings per common share | 0.47 | (0.05) | 2.27 | 0.84 | |
Cash provided by operating activities | 2,735 | 1,461 | 7,405 | 7,999 | |
Adjusted EBITDA1 | 3,108 | 2,958 | 10,085 | 9,529 | |
Adjusted Earnings1 | 1,124 | 933 | 4,113 | 3,402 | |
Adjusted Earnings per common share1 | 0.56 | 0.55 | 2.04 | 2.01 | |
Distributable Cash Flow1 | 2,105 | 1,585 | 7,173 | 5,755 | |
Weighted average common shares outstanding | 2,018 | 1,705 | 2,017 | 1,695 | |
1 | Non-GAAP financial measures. Schedules reconciling adjusted EBITDA, adjusted earnings, adjusted earnings per common share |
GAAP earnings attributable to common shareholders for the third quarter of 2019 increased by $1,039 million or $0.52 per share compared to the same period in 2018. The period-over-period comparability of earnings attributable to common shareholders was impacted by certain unusual and infrequent factors, the most prominent being the absence of a goodwill impairment charge of $1,019 million after-tax recognized in 2018 resulting from the classification of the Canadian natural gas gathering and processing businesses as being held for sale. Partially offsetting the increase in GAAP earnings attributable to common shareholders was the change in non-cash derivative fair value gains and losses between periods.
Adjusted earnings in the third quarter 2019 increased by $191 million. The increase was primarily driven by strong operating results across many of the Company's business units and from new projects placed into service in late 2018, partially offset by the loss of contributions from assets that were sold during 2018. On a per share basis, adjusted earnings increased by $0.01 per share compared to the same period in 2018, reflecting the same operating factors noted above, partially offset by a higher share count which reflected Enbridge's common equity financed acquisitions during the fourth quarter of 2018 of all of the outstanding equity securities of its sponsored vehicles not beneficially owned.
DCF for the third quarter was $2,105 million, an increase of $520 million over the comparable prior period in 2018, driven largely by the operating factors noted above as well as lower distributions to noncontrolling interests following the completion of Enbridge's buy-in of the publicly held interest in its sponsored vehicles, which were completed in the fourth quarter of 2018.
Detailed segmented financial information and analysis can be found below under Adjusted EBITDA by Segments.
PROJECT EXECUTION UPDATE
Enbridge continues to make good progress advancing its $19 billion of secured growth capital program, which includes approximately $2.5 billion of projects secured year to date, which will drive highly transparent growth over the near to medium term horizon. The individual projects that make up the secured program are all supported by long-term take-or-pay contracts, cost-of-service frameworks or similar low-risk commercial arrangements and are diversified across a wide range of business platforms and regulatory jurisdictions.
The Company continues to anticipate that several growth projects will be placed into service in 2019, including the US$0.7 billion investment in the Gray Oak pipeline and the $1.1 billion HoHe See offshore wind power project in Germany and the Canadian portion of the Line 3 replacement project at interim tolls (discussed further below).
The Gray Oak pipeline is on track for completion by the end of the year, with volumes expected to ramp up in the first quarter of 2020, providing incremental crude pipeline capacity out of the Permian basin, and is underpinned by take-or-pay contracts.
The 497MW HoHe See Offshore Wind project, located in the German North Sea, commenced operations in October with turbines connected and feeding electricity into the grid. The adjacent 112MW expansion, Albatros, continues to advance as planned with all wind turbines installed and is expected to be fully operational by the end of the year. Power generated by the project will receive long-term fixed pricing for 20 years, providing strong returns underpinned by a low-risk commercial model.
Line 3 Replacement
The $9 billion Line 3 Replacement Project is a significant component of the Company's secured project inventory. It is a critical integrity replacement project that will enhance the safety and reliability of Enbridge's Liquids Mainline System.
The Company reached a commercial agreement with its shippers on an interim surcharge until the US portion of the line is completed and it plans to move ahead to place the Canadian segment of the Line 3 Replacement in service on December 1, 2019. This agreement reaffirms the Company's commitment to construct and operate a safe new state of the art pipeline. The capital cost for the Line 3 Replacement Project came in slightly below budget in Canada.
On September 17, the Minnesota Supreme Court denied all remaining appeals of the EIS, thus returning jurisdiction to the MPUC to address the one narrow deficiency in the EIS that was previously identified. The MPUC had indicated that the agency will seek public comment and work expeditiously to address the EIS deficiency. Consistent with this statement, at a hearing on October 1, the MPUC directed the Department of Commerce to complete the additional spill modelling work and submit a revised EIS by December 9. At this time, Enbridge cannot determine when all necessary permits will be issued pending receipt of further information from the MPUC on a timeline to finalize the EIS and reaffirm the Certificate of Need and Route Permit. The State environmental permitting agencies have continued to advance their work, to the extent possible, in parallel with the ongoing EIS process. The Company expects to hear from the MPUC regarding further updated process and timelines after which the agencies are expected to reset their schedules to align with the MPUC process.
Depending on the final in-service date, there is a risk that the project may exceed the Company's total cost estimate of $9 billion for the combined Line 3 Replacement Project. However, at this time, the Company does not anticipate any capital cost impacts that would be material to Enbridge's financial position and outlook.
OTHER BUSINESS UPDATES
Mainline Contracting
On September 27, in light of select producer complaints, the Canada Energy Regulator (CER) decided that Enbridge may not offer firm service to prospective shippers on the Liquids Mainline System until such firm service has been approved by the CER. While this decision was a significant departure from past regulatory precedents, the CER noted that its decision to hold a regulatory review prior to the open season does not prejudice Enbridge's ability to offer long term priority access contracts on the Mainline system.
Enbridge's Mainline contract offering is the result of 18 months of extensive negotiations with its diverse customer base and was formulated in direct response to its core customer base who want toll certainty and priority access. These shippers, which represent the majority of Mainline throughput, continue to support the offering.
As a result, Enbridge plans to file an application to the CER seeking approval of a firm service offering as soon as practical.
WCSB Egress Initiatives
By the end of this year, the Company expects to deliver approximately 100 kbpd of incremental Mainline capacity. This additional capacity will be achieved within the Company's current system capacity and operating parameters through crude delivery and receipt window efficiencies further enhanced by the operational flexibility of bringing the Canadian segment of Line 3 Replacement into service, optimization of crude quality slates, as well as the recovery of existing capacity. Together, these capital efficient initiatives will provide much needed and cost effective near-term egress for Western Canadian Sedimentary Basin (WCSB) production.
The Company successfully completed an open season resulting in a 50 kbpd expansion of the Express pipeline. This expansion will provide additional takeaway capacity out of the WCSB to serve the PADD IV market and is expected to ramp up in the first half of 2020.
Market Access Initiatives
Seaway Pipeline announced its intention to launch an open season for up to 200 kbpd of incremental light crude capacity on Seaway's existing system originating in Cushing, Oklahoma and extending to the Texas Gulf Coast area. This highly cost effective expansion would de-bottleneck and optimize the system principally through pump upgrades. Initial expansion capacity could be available by mid-2020, with the expansion expected to be fully in-service in 2022.
In the Bakken, the binding open season on the Dakota Access Pipeline that was launched this summer has recently been extended and modified to include HFOTCO as a destination for shippers. This open season will solicit additional shipper commitments for transportation service that would further support a capacity optimization of up to 1.1 million barrels per day.
Gas Transmission Rate Cases
One of the Company's strategic priorities is to ensure timely and fair returns on existing and new capital additions to the Company's U.S. natural gas transmission systems. Following extensive negotiations on the Texas Eastern rate case, Enbridge reached an agreement with shippers and filed the Stipulation and Agreement on October 28 with the Federal Energy Regulatory Commission (FERC) and expects an approval in the second quarter of next year. The Company has also commenced rate discussions with Algonquin customers with the expectation of a pre-packaged settlement on that system.
Utilities Update
During the quarter, the Company received a Decision and Order from the Ontario Energy Board (OEB) on its application for 2019 rates. The 2019 rate application was filed in December 2018 in accordance with the parameters of the Company's OEB approved incentive based regulatory framework and represents the first year of a five-year term. The Decision and Order approved an effective date for base rates of April 1, 2019, and the inclusion of incremental capital module amounts to allow for the recovery of incremental capital investments.
ASSET SALES & FINANCING UPDATE
In 2018, Enbridge reached agreements to sell over $7.8 billion of non-core assets. Enbridge has now received total proceeds of $6.1 billion, including $0.4 billion from the closing of the sale of Enbridge Gas New Brunswick on October 1, 2019 and St. Lawrence Gas Company on November 1, 2019. Enbridge anticipates the remaining proceeds related to the close of the CER regulated Canadian gas gathering and processing assets in the fourth quarter of 2019. These sales provide the Company with further financial flexibility to self-fund its secured growth program, including $2.5 billion of newly secured projects in 2019. As of September 30, the Company's consolidated Debt-to-EBITDA ratio was 4.6x on a trailing twelve month basis. This is well within the Company's long term target credit metric range of 4.5x to below 5.0x Debt-to-EBITDA.
The Company continued to execute on its capital funding plan in the third quarter with total year to date term debt issuances exceeding $4 billion. The bulk of these issuances have been to re-finance maturing debt at significantly lower coupon rates. Notably, in August, Enbridge Gas Inc. completed its inaugural term debt offerings in the Canadian debt capital markets for a total of $700 million. Also in August, Algonquin Gas Transmission, LLC issued US$500 million of 10 year notes through a private placement transaction. In early October, Enbridge Inc. completed a $1 billion single tranche offering of 10 year notes in the Canadian debt capital markets.
EXECUTIVE LEADERSHIP CHANGES
Today, Enbridge announced the following executive leadership changes, effective February 28, 2020. Guy Jarvis, Executive Vice President, Liquids Pipelines, has decided to retire at the end of February 2020, after close to 20 years with Enbridge.
Guy has been in the energy business for over 33 years. His career with Enbridge began as VP, Gas Services and over the years he has held numerous leadership roles in Liquids Pipelines, Investor Relations & Enterprise Risk, and as President, Enbridge Gas Distribution and President, Liquids Pipelines & Major Projects.
"Several of Guy's accomplishments stand out", said President & CEO Al Monaco. "His extensive efforts to optimize throughput on the Mainline system resulting in record volumes while also driving record pipeline safety performance; execution of our regional oil sands strategy; delivering the Line 3 Replacement Project in Canada and navigating the US portion through a challenging process; and leading the execution of our US Gulf Coast strategy."
In alignment with our long-standing commitment to succession planning, Vern Yu, President and Chief Operating Officer Liquids Pipelines, who has been developed as successor for this role, will assume responsibilities as the Executive Vice President & President Liquids Pipelines.
In June 2019, Vern was appointed President & Chief Operating Officer, Liquids Pipelines accountable for Operations, Engineering and Asset Management, and Pipeline Control for Liquids Pipelines. Prior to this, Vern was Executive Vice President & Chief Development Officer. During his 25+ years with Enbridge, Vern has held leadership roles in Finance and Corporate Development as well as leading the business and market development activities for Liquids Pipelines. Vern is a professional engineer and has a Master of Business Administration and Bachelor of Applied Science (Engineering).
"Among his achievements Vern led Liquids Pipelines through the largest slate of organic growth projects in Enbridge history. As Chief Development Officer, he led the $37B acquisition of Spectra Energy and in 2018 executed our priority of selling non-core assets and simplifying the corporate structure," said President & CEO Al Monaco.
THIRD QUARTER 2019 FINANCIAL RESULTS
The following table summarizes the Company's GAAP reported results for segment EBITDA, earnings attributable to common shareholders, and cash provided by operating activities for the third quarter of 2019.
GAAP SEGMENT EBITDA AND CASH FLOW FROM OPERATIONS
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Liquids Pipelines | 1,646 | 1,875 | 5,710 | 4,353 |
Gas Transmission and Midstream | 772 | (60) | 2,733 | 1,080 |
Gas Distribution | 252 | 256 | 1,304 | 1,262 |
Renewable Power Generation and Transmission | 82 | 51 | 300 | 286 |
Energy Services | 91 | (96) | 318 | 108 |
Eliminations and Other | (40) | 29 | 315 | (368) |
EBITDA | 2,803 | 2,055 | 10,680 | 6,721 |
Earnings attributable to common shareholders | 949 | (90) | 4,576 | 1,426 |
Cash provided by operating activities | 2,735 | 1,461 | 7,405 | 7,999 |
For purposes of evaluating performance, the Company makes adjustments for unusual, non-recurring or non-operating factors to GAAP reported earnings, segment EBITDA, and cash flow provided by operating activities, which allow Management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of the underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per common share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
DISTRIBUTABLE CASH FLOW
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Liquids Pipelines | 1,826 | 1,633 | 5,321 | 4,889 |
Gas Transmission and Midstream | 944 | 1,038 | 2,920 | 3,116 |
Gas Distribution | 255 | 259 | 1,338 | 1,274 |
Renewable Power Generation and Transmission | 82 | 73 | 305 | 337 |
Energy Services | 27 | 10 | 291 | 94 |
Eliminations and Other | (26) | (55) | (90) | (181) |
Adjusted EBITDA1,3 | 3,108 | 2,958 | 10,085 | 9,529 |
Maintenance capital | (293) | (324) | (741) | (783) |
Interest expense1 | (666) | (705) | (2,012) | (2,060) |
Current income tax1 | (94) | (71) | (305) | (228) |
Distributions to noncontrolling interests and redeemable | ||||
noncontrolling interests1 | (50) | (302) | (150) | (901) |
Cash distributions in excess of equity earnings1 | 144 | 90 | 427 | 267 |
Preference share dividends | (96) | (94) | (287) | (268) |
Other receipts of cash not recognized in revenue2 | 53 | 53 | 139 | 157 |
Other non-cash adjustments | (1) | (20) | 17 | 42 |
DCF3 | 2,105 | 1,585 | 7,173 | 5,755 |
Weighted average common shares outstanding | 2,018 | 1,705 | 2,017 | 1,695 |
1 | Presented net of adjusting items. |
2 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
3 | Schedules reconciling adjusted EBITDA and DCF are available as Appendices to this news release. |
Third quarter 2019 DCF increased by $520 million compared to the same period in 2018. The key drivers of quarter-over-quarter growth are summarized below:
Partially offsetting the DCF growth drivers noted above:
ADJUSTED EARNINGS | Three months ended | Nine months ended | ||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Adjusted EBITDA2 | 3,108 | 2,958 | 10,085 | 9,529 |
Depreciation and amortization | (844) | (799) | (2,526) | (2,452) |
Interest expense1 | (651) | (682) | (1,962) | (1,981) |
Income taxes1 | (377) | (212) | (1,144) | (701) |
Noncontrolling interests and redeemable | ||||
noncontrolling interests1 | (16) | (238) | (53) | (721) |
Preference share dividends | (96) | (94) | (287) | (272) |
Adjusted earnings2 | 1,124 | 933 | 4,113 | 3,402 |
Adjusted earnings per common share | 0.56 | 0.55 | 2.04 | 2.01 |
1 | Presented net of adjusting items. |
2 | Schedules reconciling adjusted EBITDA and adjusted earnings are available as Appendices to this news release. |
Adjusted earnings increased by $191 million for the third quarter of 2019 compared to the same period in 2018. Growth in adjusted earnings was driven by the same factors impacting business performance and adjusted EBITDA as discussed under Distributable Cash Flow above, partially offset by the following factors:
Adjusted earnings per share for the third quarter of 2019 increased by $0.01 compared with the third quarter of 2018. The increase in adjusted earnings noted above was partially offset on a per share basis by the issuance of approximately 297 million common shares to acquire, in separate transactions, all of the outstanding equity securities of the Company's sponsored vehicles not beneficially owned by Enbridge during the fourth quarter of 2018.
ADJUSTED EBITDA BY SEGMENTS
Adjusted EBITDA by segment is reported on a Canadian dollar basis. Adjusted EBITDA generated from U.S. dollar denominated businesses were translated at weaker average Canadian dollar exchange rates in the third quarter of 2019 (C$1.32/$US) when compared to the corresponding 2018 period (C$1.31/$US). A portion of the U.S. dollar earnings are hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
LIQUIDS PIPELINES
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Mainline System1 | 1,026 | 952 | 2,940 | 2,850 |
Regional Oil Sands System | 218 | 214 | 648 | 642 |
Gulf Coast and Mid-Continent System | 227 | 169 | 708 | 508 |
Other2 | 355 | 298 | 1,025 | 889 |
Adjusted EBITDA3 | 1,826 | 1,633 | 5,321 | 4,889 |
Operating Data (average deliveries – thousands of bpd) | ||||
Mainline System - ex-Gretna volume4 | 2,714 | 2,578 | 2,698 | 2,613 |
Regional Oil Sands System5 | 1,839 | 1,863 | 1,803 | 1,789 |
International Joint Tariff (IJT)6 | $4.21 | $4.15 | $4.17 | $4.10 |
1 | Mainline System includes the Canadian Mainline and the Lakehead System, which were previously reported separately. |
2 | Included within Other are Southern Lights Pipeline, Express-Platte System, Bakken System and Feeder Pipelines & Other. |
3 | Schedules reconciling adjusted EBITDA are provided in the Appendices to this news release. |
4 | Mainline System throughput volume represents mainline system deliveries ex-Gretna, Manitoba which is made up of United |
5 | Volumes are for the Athabasca mainline, Athabasca Twin, Waupisoo Pipeline and Woodland Pipeline and exclude laterals on the |
6 | The IJT benchmark toll and its components are set in U.S. dollars and the majority of the Company's foreign exchange risk on the |
Liquids Pipelines adjusted EBITDA increased by $193 million for the third quarter of 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
US Gas Transmission | 689 | 661 | 2,052 | 1,979 |
Canadian Gas Transmission1 | 163 | 249 | 569 | 775 |
US Midstream | 43 | 97 | 146 | 265 |
Other | 49 | 31 | 153 | 97 |
Adjusted EBITDA2 | 944 | 1,038 | 2,920 | 3,116 |
1 | Canadian Gas Transmission includes Alliance Pipeline, which was previously reported separately. |
2 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Gas Transmission and Midstream adjusted EBITDA decreased by $94 million for the third quarter of 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
GAS DISTRIBUTION
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Enbridge Gas Inc. (EGI) | 255 | 258 | 1,270 | 1,191 |
Other | — | 1 | 68 | 83 |
Adjusted EBITDA1 | 255 | 259 | 1,338 | 1,274 |
Operating Data | ||||
EGI | ||||
Volumes (billions of cubic feet) | 269 | 271 | 1,328 | 1,290 |
Number of active customers (thousands)2 | 3,731 | 3,689 | ||
Heating degree days3 | ||||
Actual | 60 | 69 | 2,699 | 2,526 |
Forecast based on normal weather4 | 97 | 96 | 2,535 | 2,533 |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
2 | Number of active customers at the end of the reported period. |
3 | Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating |
4 | As per Ontario Energy Board approved methodology used in setting rates. |
Enbridge Gas Distribution and Union Gas were amalgamated on January 1, 2019. The amalgamated company has been renamed Enbridge Gas Inc. (EGI). Post amalgamation the financial results of EGI reflect the combined performance of the two legacy utility operations.
Gas Distribution adjusted EBITDA will typically follow a seasonal profile. It is generally highest in the first and fourth quarters of the year reflecting greater volumetric usage during the heating season, and lowest in the third quarter as there is generally less volumetric usage during the summer. The magnitude of the seasonal EBITDA fluctuations will vary from year-to-year reflecting the impact of colder or warmer than normal weather on distribution volumes in a given quarter.
Gas Distribution adjusted EBITDA decreased by $4 million for the third quarter 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
On October 1, 2019, the Company completed the sale of Enbridge Gas New Brunswick.
RENEWABLE POWER GENERATION AND TRANSMISSION
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA1 | 82 | 73 | 305 | 337 |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Renewable Power Generation and Transmission adjusted EBITDA increased by $9 million for the third quarter of 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
ENERGY SERVICES
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA1 | 27 | 10 | 291 | 94 |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Energy Services adjusted EBITDA increased by $17 million for the third quarter of 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
ELIMINATIONS AND OTHER
Three months ended | Nine months ended | |||||
2019 | 2018 | 2019 | 2018 | |||
(unaudited, millions of Canadian dollars) | ||||||
Operating and administrative | 24 | 4 | 76 | (27) | ||
Realized foreign exchange hedge settlements | (50) | (59) | (166) | (154) | ||
Adjusted loss before interest, income taxes, and | ||||||
depreciation and amortization1 | (26) | (55) | (90) | (181) | ||
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Operating and administrative costs captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) inclusive of amounts recovered from business units for the provision of those services. Also, as previously noted, U.S. dollar denominated earnings within the segment results are translated at average foreign exchange rates during the quarter. The offsetting impact of settlements made under the Company's enterprise foreign exchange hedging program is captured in this segment.
Eliminations and Other adjusted loss before interest, income taxes and depreciation and amortization decreased by $29 million for the third quarter of 2019, when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
CONFERENCE CALL
Enbridge will host a conference call and webcast on November 8, 2019 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to provide an enterprise wide business update and review 2019 third quarter financial results. Analysts, members of the media and other interested parties can access the call toll free at (877) 930-8043 or within and outside North America at (253) 336-7522 using the access code of 1219978#. The call will be audio webcast live at https://edge.media-server.com/mmc/p/2zy7rez2. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available for seven days after the call toll-free (855) 859-2056 or within and outside North America at (404) 537-3406 (access code 1219978#).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
DIVIDEND DECLARATION
On November 5, 2019, the Company's Board of Directors declared the following quarterly dividends. All dividends are payable on December 1, 2019, to shareholders of record on November 15, 2019.
Dividend per | |
Common Shares | $0.73800 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C1 | $0.25243 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P2 | $0.27369 |
Preference Shares, Series R3 | $0.25456 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 34 | $0.23356 |
Preference Shares, Series 55 | US$0.33596 |
Preference Shares, Series 76 | $0.27806 |
Preference Shares, Series 9 | $0.27500 |
Preference Shares, Series 11 | $0.27500 |
Preference Shares, Series 13 | $0.27500 |
Preference Shares, Series 15 | $0.27500 |
Preference Shares, Series 17 | $0.32188 |
Preference Shares, Series 19 | $0.30625 |
1 | The quarterly dividend per share paid on Series C was decreased to $0.25395 from $0.25459 on March 1, 2019, was increased |
2 | The quarterly dividend per share paid on Series P was increased to $0.27369 from $0.25000 on March 1, 2019, due to reset of |
3 | The quarterly dividend per share paid on Series R was increased to $0.25456 from $0.25000 on June 1, 2019, due to the reset of |
4 | The quarterly dividend per share paid on Series 3 was decreased to $0.23356 from $0.25000 on September 1, 2019, due to the |
5 | The quarterly dividend per share paid on Series 5 was increased to US$0.33596 from US$0.27500 on March 1, 2019, due to |
6 | The quarterly dividend per share paid on Series 7 was increased to $0.27806 from $0.27500 on March 1, 2019, due to reset of t |
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected DCF or DCF per share; expected future cash flows; expected performance of the Company's businesses; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected credit metrics and debt to EBITDA levels; expected cost of capital and costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected equity funding requirements for the Company's commercially secured growth program; expected future growth and expansion opportunities, including optimization plans; expectations about the Company's joint venture partners' ability to complete and finance projects under construction; expected closing of acquisitions and dispositions and the timing thereof; expected future actions of regulators and courts; expectations regarding commodity prices; supply forecasts; expectations regarding the impact of transactions, including the transactions undertaken to simplify the Company's corporate structure; plans to launch binding open seasons, including the terms and timing thereof; toll and rate case discussions and filings, including Mainline Contracting; and dividend growth and dividend payout expectation.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the timing and closing of acquisitions and dispositions; the realization of anticipated benefits and synergies of transactions; governmental legislation; litigation; the success of integration plans; impact of the Company's dividend policy on its future cash flows; credit ratings; capital project funding; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the expected EBITDA, expected adjusted EBITDA, earnings/(loss), expected adjusted earnings/(loss), expected DCF and associated per share amounts, or estimated future dividends. The most relevant assumptions associated with forward-looking statements regarding announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the realization of anticipated benefits and synergies of projects and transactions, operating performance, the Company's dividend policy, regulatory parameters, changes in regulations applicable to the Company's business, acquisitions and dispositions, litigation, project approval and support, renewals of rights of way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
ABOUT ENBRIDGE INC.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise part of this news release.
FOR FURTHER INFORMATION PLEASE CONTACT: | ||
Enbridge Inc. – Media | Enbridge Inc. – Investment Community | |
Jesse Semko | Jonathan Morgan | |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 | |
Email: media@enbridge.com |
NON-GAAP RECONCILIATIONS APPENDICES
This news release contains references to adjusted EBITDA, adjusted earnings, adjusted earnings per common share, and DCF. Management believes the presentation of these metrics gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Adjusted EBITDA represents EBITDA adjusted for unusual, non-recurring or non-operating factors on both a consolidated and segmented basis. Management uses adjusted EBITDA to set targets and to assess the performance of the Company and its Business Units.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, non-recurring or non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, non-recurring or non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes, noncontrolling interests and redeemable noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another measure of the Company's ability to generate earnings.
DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests and redeemable noncontrolling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
Reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly certain contingent liabilities, and non-cash unrealized derivative fair value losses and gains which are subject to market variability. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without unreasonable effort.
Our non-GAAP measures described above are not measures that have standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers.
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON-GAAP RECONCILIATIONS – ADJUSTED EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Liquids Pipelines | 1,646 | 1,875 | 5,710 | 4,353 |
Gas Transmission and Midstream | 772 | (60) | 2,733 | 1,080 |
Gas Distribution | 252 | 256 | 1,304 | 1,262 |
Renewable Power Generation and Transmission | 82 | 51 | 300 | 286 |
Energy Services | 91 | (96) | 318 | 108 |
Eliminations and Other | (40) | 29 | 315 | (368) |
EBITDA | 2,803 | 2,055 | 10,680 | 6,721 |
Depreciation and amortization | (844) | (799) | (2,526) | (2,452) |
Interest expense | (644) | (696) | (1,966) | (2,042) |
Income tax expense | (255) | (347) | (1,275) | (177) |
Earnings attributable to noncontrolling interests and | ||||
redeemable noncontrolling interests | (15) | (209) | (50) | (352) |
Preference share dividends | (96) | (94) | (287) | (272) |
Earnings/(loss) attributable to common | 949 | (90) | 4,576 | 1,426 |
ADJUSTED EBITDA TO ADJUSTED EARNINGS
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Liquids Pipelines | 1,826 | 1,633 | 5,321 | 4,889 |
Gas Transmission and Midstream | 944 | 1,038 | 2,920 | 3,116 |
Gas Distribution | 255 | 259 | 1,338 | 1,274 |
Renewable Power Generation and Transmission | 82 | 73 | 305 | 337 |
Energy Services | 27 | 10 | 291 | 94 |
Eliminations and Other | (26) | (55) | (90) | (181) |
Adjusted EBITDA | 3,108 | 2,958 | 10,085 | 9,529 |
Depreciation and amortization | (844) | (799) | (2,526) | (2,452) |
Interest expense | (651) | (682) | (1,962) | (1,981) |
Income taxes | (377) | (212) | (1,144) | (701) |
Noncontrolling interests and redeemable noncontrolling | ||||
interests | (16) | (238) | (53) | (721) |
Preference share dividends | (96) | (94) | (287) | (272) |
Adjusted earnings | 1,124 | 933 | 4,113 | 3,402 |
Adjusted earnings per common share | 0.56 | 0.55 | 2.04 | 2.01 |
EBITDA TO ADJUSTED EARNINGS
Three months ended | Nine months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars, except per share amounts) | |||||
EBITDA | 2,803 | 2,055 | 10,680 | 6,721 | |
Adjusting items: | |||||
Change in unrealized derivative fair value (gain)/loss | 79 | (264) | (1,052) | 295 | |
Asset write-down loss | 105 | 1,019 | 105 | 2,086 | |
Loss on sale of assets | — | 94 | — | 94 | |
Employee severance, transition and transformation | |||||
costs | 23 | 17 | 88 | 143 | |
Asset monetization transaction costs | — | 45 | — | 65 | |
Equity investment asset impairment | 62 | — | 62 | 33 | |
Write-down of inventory to the lower of cost or market | 27 | 7 | 171 | 23 | |
Other | 9 | (15) | 31 | 69 | |
Total adjusting items | 305 | 903 | (595) | 2,808 | |
Adjusted EBITDA | 3,108 | 2,958 | 10,085 | 9,529 | |
Depreciation and amortization | (844) | (799) | (2,526) | (2,452) | |
Interest expense | (644) | (696) | (1,966) | (2,042) | |
Income tax expense | (255) | (347) | (1,275) | (177) | |
Earnings attributable to noncontrolling interests and | |||||
redeemable noncontrolling interests | (15) | (209) | (50) | (352) | |
Preference share dividends | (96) | (94) | (287) | (272) | |
Adjusting items in respect of: | |||||
Interest expense | (7) | 14 | 4 | 61 | |
Income taxes | (122) | 135 | 131 | (524) | |
Noncontrolling interests and redeemable | |||||
noncontrolling interests | (1) | (29) | (3) | (369) | |
Adjusted earnings | 1,124 | 933 | 4,113 | 3,402 | |
Adjusted earnings per common share | 0.56 | 0.55 | 2.04 | 2.01 | |
APPENDIX B
NON-GAAP RECONCILIATION – SEGMENTED EBITDA TO ADJUSTED EBITDA
LIQUIDS PIPELINES
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 1,826 | 1,633 | 5,321 | 4,889 |
Change in unrealized derivative fair value gain/(loss) | (180) | 211 | 390 | (362) |
Asset write-down loss - asset held for sale | — | — | — | (154) |
Gain on sale of pipe | — | 28 | — | 28 |
Employee severance, transition and transformation costs | — | 3 | — | (25) |
Other | — | — | (1) | (23) |
Total adjustments | (180) | 242 | 389 | (536) |
EBITDA | 1,646 | 1,875 | 5,710 | 4,353 |
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 944 | 1,038 | 2,920 | 3,116 |
Change in unrealized derivative fair value gain | — | 23 | — | 25 |
Asset write-down loss - US Midstream | — | (1,019) | — | (1,932) |
Asset write-down loss - US Gas Transmission | (105) | — | (105) | — |
Equity investment asset impairment | (62) | — | (62) | — |
Loss on sale of assets | — | (74) | — | (74) |
Asset monetization transaction costs | — | (20) | — | (20) |
Employee severance, transition and transformation | ||||
costs | — | (3) | — | (10) |
Other | (5) | (5) | (20) | (25) |
Total adjustments | (172) | (1,098) | (187) | (2,036) |
EBITDA | 772 | (60) | 2,733 | 1,080 |
GAS DISTRIBUTION
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited; millions of Canadian dollars) | ||||
Adjusted EBITDA | 255 | 259 | 1,338 | 1,274 |
Change in unrealized derivative fair value gain | 1 | — | 9 | 3 |
Noverco Inc. equity earnings adjustment | — | — | — | (9) |
Employee severance, transition and transformation | ||||
costs | (4) | (3) | (43) | (6) |
Total adjustments | (3) | (3) | (34) | (12) |
EBITDA | 252 | 256 | 1,304 | 1,262 |
RENEWABLE POWER GENERATION AND TRANSMISSION
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 82 | 73 | 305 | 337 |
Change in unrealized derivative fair value gain/(loss) | — | (2) | 2 | 2 |
Equity investment asset impairment | — | — | — | (33) |
Loss on sale of assets | — | (20) | — | (20) |
Other | — | — | (7) | — |
Total adjustments | — | (22) | (5) | (51) |
EBITDA | 82 | 51 | 300 | 286 |
ENERGY SERVICES
Three months ended | Nine months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 27 | 10 | 291 | 94 |
Change in unrealized derivative fair value gain/(loss) | 91 | (99) | 198 | 37 |
Write-down of inventory to the lower of cost or market | (27) | (7) | (171) | (23) |
Total adjustments | 64 | (106) | 27 | 14 |
EBITDA | 91 | (96) | 318 | 108 |
ELIMINATIONS AND OTHER
Three months ended | Nine months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars) | |||||
Adjusted earnings/(loss) before interest, income taxes, | |||||
and depreciation and amortization | (26) | (55) | (90) | (181) | |
Change in unrealized derivative fair value gain | 9 | 131 | 453 | — | |
Asset monetization transaction costs | — | (25) | — | (45) | |
Employee severance, transition and transformation | |||||
costs | (19) | (14) | (45) | (102) | |
Other | (4) | (8) | (3) | (40) | |
Total adjustments | (14) | 84 | 405 | (187) | |
Earnings/(loss) before interest, income taxes, and | |||||
depreciation and amortization | (40) | 29 | 315 | (368) | |
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING
ACTIVITIES TO DCF
Three months ended | Nine months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars) | |||||
Cash provided by operating activities | 2,735 | 1,461 | 7,405 | 7,999 | |
Adjusted for changes in operating assets and liabilities1 | (228) | 657 | 451 | (943) | |
2,507 | 2,118 | 7,856 | 7,056 | ||
Distributions to noncontrolling interests and redeemable | |||||
noncontrolling interests4 | (50) | (302) | (150) | (901) | |
Preference share dividends | (96) | (94) | (287) | (268) | |
Maintenance capital expenditures2 | (293) | (324) | (741) | (783) | |
Significant adjusting items: | |||||
Other receipts of cash not recognized in revenue3 | 53 | 53 | 139 | 157 | |
Employee severance, transition and transformation | |||||
costs | 20 | 19 | 91 | 189 | |
Asset monetization costs | — | 64 | — | 84 | |
Distributions from equity investments in excess of | |||||
cumulative earnings4 | 17 | 112 | 207 | 312 | |
Other items | (53) | (61) | 58 | (91) | |
DCF | 2,105 | 1,585 | 7,173 | 5,755 | |
1 | Changes in operating assets and liabilities, net of recoveries. |
2 | Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing |
3 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue |
4 | Presented net of adjusting items. |
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-reports-strong-third-quarter-2019-results-300954574.html
SOURCE Enbridge Inc.
Article Date
11/8/201911/6/2019 - Enbridge Declares Quarterly Dividends
Enbridge Declares Quarterly Dividends
Source: PR Newswire
CALGARY, Nov. 6, 2019 /PRNewswire/ - The Board of Directors for Enbridge Inc. (TSX, NYSE: ENB) has declared a quarterly dividend of $0.73800 per common share, payable on December 1, 2019 to shareholders of record on November 15, 2019. The amount of the dividend is consistent with the September 1, 2019 dividend.
The Board also declared the following quarterly dividends for Enbridge Inc. Preferred Shares. All dividends are payable on December 1, 2019 to shareholders of record on November 15, 2019.
Common Shares | $0.73800 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C | $0.25243 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P | $0.27369 |
Preference Shares, Series R | $0.25456 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 3 | $0.23356 |
Preference Shares, Series 5 | US$0.33596 |
Preference Shares, Series 7 | $0.27806 |
Preference Shares, Series 9 | $0.27500 |
Preference Shares, Series 11 | $0.27500 |
Preference Shares, Series 13 | $0.27500 |
Preference Shares, Series 15 | $0.27500 |
Preference Shares, Series 17 | $0.321875 |
Preference Shares, Series 19 | $0.30625 |
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,600 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-declares-quarterly-dividends-300952446.html
SOURCE Enbridge Inc.
Article Date
11/6/201911/1/2019 - Enbridge Provides Notice of Series 9 Preferred Shares Conversion Right and Announces Reset Dividend Rates
Enbridge Provides Notice of Series 9 Preferred Shares Conversion Right and Announces Reset Dividend Rates
Source: PR Newswire
CALGARY, Nov. 1, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series 9 (Series 9 Shares) (TSX: ENB.PF.A) on December 1, 2019. As a result, subject to certain conditions, the holders of the Series 9 Shares have the right to convert all or part of their Series 9 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 10 of Enbridge (Series 10 Shares) on December 1, 2019. Holders who do not exercise their right to convert their Series 9 Shares into Series 10 Shares will retain their Series 9 Shares.
The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series 9 Shares outstanding after December 1, 2019, then all remaining Series 9 Shares will automatically be converted into Series 10 Shares on a one-for-one basis on December 1, 2019; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 10 Shares outstanding after December 1, 2019, no Series 9 Shares will be converted into Series 10 Shares. There are currently 11,000,000 Series 9 Shares outstanding.
With respect to any Series 9 Shares that remain outstanding after December 1, 2019, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series 9 Shares for the five-year period commencing on December 1, 2019 to, but excluding, December 1, 2024 will be 4.097 percent, being equal to the five-year Government of Canada bond yield of 1.437 percent determined as of today plus 2.66 percent in accordance with the terms of the Series 9 Shares.
With respect to any Series 10 Shares that may be issued on December 1, 2019, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series 10 Shares for the three-month floating rate period commencing on December 1, 2019 to, but excluding, March 1, 2020 will be 1.07704 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 1.66 percent plus 2.66 percent in accordance with the terms of the Series 10 Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.
Beneficial holders of Series 9 Shares who wish to exercise their right of conversion during the conversion period, which runs from November 1, 2019 until 5:00 p.m. (EST) on November 18, 2019, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.
Forward-Looking Statements
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge, including statements with respect to the conversion of all or part of the Series 9 Shares into Series 10 Shares on December 1, 2019, the annual dividend rate that will apply to any outstanding Series 9 Shares on December 1, 2019, the quarterly dividend rate that will apply to any Series 10 Shares on December 1, 2019, and the declaration of dividends by the Board of Directors of Enbridge. This information may not be appropriate for other purposes. Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and on processes used to prepare the information, such statements are not guarantees of future events and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual events to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about whether holders of Series 9 Shares will exercise their right to convert their Series 9 Shares into Series 10 Shares.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,600 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media | Investment Community |
Jesse Semko | Jonathan Morgan |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com | Email: investor.relations@enbridge.com |
View original content:http://www.prnewswire.com/news-releases/enbridge-provides-notice-of-series-9-preferred-shares-conversion-right-and-announces-reset-dividend-rates-300950145.html
SOURCE Enbridge Inc.
Article Date
11/1/2019Enbridge Completes Sale of New Brunswick Gas Business
Source: PR Newswire
CALGARY, Oct. 1, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) ("Enbridge" or the "Company") today announced it has closed the previously announced transaction to sell Enbridge Gas New Brunswick Limited Partnership along with its general partner Enbridge Gas New Brunswick Inc. (together "New Brunswick Gas") to Liberty Utilities (Canada) LP, a wholly-owned subsidiary of Algonquin Power & Utilities Corp., for a cash purchase price of CAD $331 million, subject to certain customary adjustments.
This asset sale demonstrates the continued execution of Enbridge's business strategy to focus on core pipeline and utility assets. The transaction proceeds will provide the Company with further flexibility to fund its attractive secured growth program.
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario, Quebec and New Brunswick, and generates approximately 1,600 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-completes-sale-of-new-brunswick-gas-business-300929248.html
SOURCE Enbridge Inc.
Article Date
10/1/2019Enbridge Re-affirms Plan to Proceed with Contracting of the Mainline System and File Regulatory Application by Year End
Source: PR Newswire
CALGARY, Sept. 29, 2019 /PRNewswire/ - On September 27, the Canada Energy Regulator (CER) ordered that Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) may not offer firm service to prospective shippers on the Mainline until such firm service, including all associated tolls and terms and conditions of service, has been approved by the CER.
Although this decision changes the timing of the open season, Enbridge today re-affirmed its plan to proceed with contracting of its Mainline system in response to its customers' needs through an expected filing of a regulatory application seeking approval of firm service, on terms and conditions approved by the CER.
"Our Mainline contract offering is the result of 18 months of extensive negotiations with our diverse customer base and enjoys strong support from a cross section of shippers on our system," said Guy Jarvis, Executive Vice President, Liquids Pipelines, Enbridge. "The offering includes a number of features and enhancements to accommodate shippers' needs and priorities. Customers representing a significant percentage of capacity on the Mainline support the approach."
"Friday's decision by the CER is a departure from the decades of precedent and commercial practice in our industry. Although the CER decision results in a change to the process of securing commercial support through an open season in advance of the regulatory application, it does not change our plans to respond to the desires of our customers for priority access to Mainline capacity, toll certainty and access to the best markets that contract carriage offers."
Enbridge will file an application with the CER seeking approval of a firm service offering as soon as practical.
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included or incorporated by reference in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' and affiliates' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the proposed contract offering of the Canadian Mainline pipeline system, including the benefits and timing thereof and the process and timetable to file and receive applicable governmental, regulatory and other approvals, including any approvals of the Canada Energy Regulator.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to customer and regulatory approvals and other risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario, Quebec and New Brunswick, and generates approximately 1,600 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-re-affirms-plan-to-proceed-with-contracting-of-the-mainline-system-and-file-regulatory-application-by-year-end-300927376.html
SOURCE Enbridge Inc.
Article Date
9/29/2019Minnesota Supreme Court Rejects Line 3R FEIS Appeals
Source: PR Newswire
Pipeline replacement project to move ahead
CALGARY and DULUTH, MN, Sept. 17, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) today said it supports today's ruling by the Minnesota Supreme Court that a further review of the Line 3 Replacement Project (L3RP)'s Final Environmental Impact Statement (FEIS) is not necessary.
"We agree with this decision from the Minnesota Supreme Court which now allows the Minnesota Public Utilities Commission to move forth with the permitting process for the Line 3 replacement," said Guy Jarvis, Executive Vice President, Liquids Pipelines. "We look forward to the MPUC providing their guidance on the remaining process and schedule."
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick, and generates approximately 1,600 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/minnesota-supreme-court-rejects-line-3r-feis-appeals-300920251.html
SOURCE Enbridge Inc.
Article Date
9/17/2019Enbridge provides update on Canadian Mainline open season process
Source: PR Newswire
CALGARY, Sept. 5, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) provided an update today on the Canadian Mainline open season regulatory process.
On August 2, 2019, Enbridge commenced an open season, offering firm capacity on its crude oil Mainline system, effective upon expiry of the Competitive Toll Settlement that is in place until July 1, 2021. The open season is the first stage of Enbridge determining whether there is sufficient commercial interest for its offering to provide priority access on the Mainline for terms of 8 – 20 years.
The Mainline offering is in direct response to customers' desire for low cost transportation to important downstream markets and guaranteed access to the Enbridge Mainline, for the benefit of our industry and all stakeholders. The offering reflected in the open season terms is based on significant consultation with the entire industry over a period of 18 months and reflects numerous enhancements proposed by potential shippers.
Since embarking on the open season, certain parties, including shippers and non-shippers, have filed letters and an application to the Canada Energy Regulator (CER) requesting among other things that the CER declare that Enbridge may not offer contract carriage on the Mainline system until the terms, conditions and tolls of the contract offering are approved by the CER, and if it is not possible for the CER to issue such a decision by September 18, 2019, that it stay the open season pending a decision.
The CER established an expedited process and timetable for other interested parties to submit comments by noon today and for Enbridge to respond to those submissions by September 11, 2019. The CER process centers around determining whether the CER has the authority to stay the open season pending the CER's decision on the submissions and whether an open season should be held before or after the CER has decided on any future application that may be filed by Enbridge for firm service.
Enbridge believes that its open season is entirely appropriate and consistent with a well-established practice of ensuring commercial support before seeking regulatory approval, a view that is shared by a range of customers who have submitted letters to the CER today. These letters indicate support for contract carriage on the Mainline, acknowledge Enbridge's willingness to negotiate the terms and conditions of service in developing the open season offering, and support the open season proceeding as planned to ensure that its results can fully inform any application that Enbridge may file with the CER.
The attached background provides additional information and key aspects of the offering.
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included or incorporated by reference in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' and affiliates' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the open season for transportation services on the Canadian Mainline pipeline system, including the benefits and timing thereof and the process and timetable to receive applicable governmental, regulatory and other approvals, including any approvals of the Canadian Energy Regulator.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario, Quebec and New Brunswick, and generates approximately 1,600 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/enbridge-provides-update-on-canadian-mainline-open-season-process-300912926.html
SOURCE Enbridge Inc.
Article Date
9/5/20198/30/2019 - Enbridge Reaches Agreement with Shippers to Place the Line 3 Replacement Pipeline into Service in Canada
Enbridge Reaches Agreement with Shippers to Place the Line 3 Replacement Pipeline into Service in Canada
Source: PR Newswire
CALGARY, Aug. 30, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) today announced that it has reached a commercial agreement with shippers to place the Canadian portion of the Line 3 replacement pipeline into service by the end of this year. This agreement reflects the importance of this safety-driven maintenance project to protecting our environment and ensuring the continued safe and reliable operation of the pipeline well into the future.
Enbridge will be filing a tariff with the Canada Energy Regulator for a temporary surcharge with a proposed effective date of December 1, 2019. This tariff will be superseded by the full negotiated Line 3 tariff upon completion of the U.S. segment of the pipeline.
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included or incorporated by reference in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' and affiliates' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the Canadian portion of the Line 3 replacement pipeline ("L3R"), including the benefits and timing thereof, the expected in-service date and the application for and receipt of applicable governmental, regulatory and other approvals.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements with respect to projects such as L3R, including estimated completion and in service dates, include the following: the impact of customer, government, regulatory and court approvals on construction and in-service schedules and cost recovery regimes; the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; and the impact of weather.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario, Quebec and New Brunswick, and generates approximately 1,600 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-reaches-agreement-with-shippers-to-place-the-line-3-replacement-pipeline-into-service-in-canada-300909927.html
SOURCE Enbridge Inc.
Article Date
8/30/2019Enbridge Announces Conversion Results for Series 3 Preferred Shares
Source: PR Newswire
CALGARY, Aug. 19, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that none of its outstanding Cumulative Redeemable Preference Shares, Series 3 (Series 3 Shares) will be converted into Cumulative Redeemable Preference Shares, Series 4 of Enbridge (Series 4 Shares) on September 1, 2019.
After taking into account all conversion notices received from holders of its outstanding Series 3 Shares by the August 19, 2019 deadline for the conversion of the Series 3 Shares into Series 4 Shares, less than the 1,000,000 Series 3 Shares required to give effect to conversions into Series 4 Shares were tendered for conversion.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario, Quebec and New Brunswick, and generates approximately 1,600 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Media | Investment Community |
Tracie Kenyon | Jonathan Gould |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com | Email: investor.relations@enbridge.com |
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-conversion-results-for-series-3-preferred-shares-300903933.html
SOURCE Enbridge Inc.
Article Date
8/19/2019Enbridge Provides Notice of Series 3 Preferred Shares Conversion Right and Announces Reset Dividend Rates
Source: PR Newswire
CALGARY, Aug. 2, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series 3 (Series 3 Shares) (TSX: ENB.PR.Y) on September 1, 2019. As a result, subject to certain conditions, the holders of the Series 3 Shares have the right to convert all or part of their Series 3 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 4 of Enbridge (Series 4 Shares) on September 1, 2019. Holders who do not exercise their right to convert their Series 3 Shares into Series 4 Shares will retain their Series 3 Shares.
The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series 3 Shares outstanding after September 1, 2019, then all remaining Series 3 Shares will automatically be converted into Series 4 Shares on a one-for-one basis on September 1, 2019; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 4 Shares outstanding after September 1, 2019, no Series 3 Shares will be converted into Series 4 Shares. There are currently 24,000,000 Series 3 Shares outstanding.
With respect to any Series 3 Shares that remain outstanding after September 1, 2019, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series 3 Shares for the five-year period commencing on September 1, 2019 to, but excluding, September 1, 2024 will be 3.737 percent, being equal to the five-year Government of Canada bond yield of 1.357 percent determined as of today plus 2.38 percent in accordance with the terms of the Series 3 Shares.
With respect to any Series 4 Shares that may be issued on September 1, 2019, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series 4 Shares for the three-month floating rate period commencing on September 1, 2019 to, but excluding, December 1, 2019 will be 1.00474 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 1.65 percent plus 2.38 percent in accordance with the terms of the Series 4 Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.
Beneficial holders of Series 3 Shares who wish to exercise their right of conversion during the conversion period, which runs from August 2, 2019 until 5:00 p.m. (EST) on August 19, 2019, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.
Forward-Looking Statements
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge, including statements with respect to the conversion of all or part of the Series 3 Shares into Series 4 Shares on September 1, 2019, the annual dividend rate that will apply to any outstanding Series 3 Shares on September 1, 2019, the quarterly dividend rate that will apply to any Series 4 Shares on September 1, 2019, and the declaration of dividends by the Board of Directors of Enbridge. This information may not be appropriate for other purposes. Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and on processes used to prepare the information, such statements are not guarantees of future events and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual events to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about whether holders of Series 3 Shares will exercise their right to convert their Series 3 Shares into Series 4 Shares.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario, Quebec and New Brunswick, and generates approximately 1,600 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
FOR FURTHER INFORMATION PLEASE CONTACT: | |
Media | Investment Community |
Jesse Semko | Jonathan Morgan |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com | |
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SOURCE Enbridge Inc.
Article Date
8/2/2019Enbridge Inc. Reports Strong Second Quarter 2019 Results
Source: PR Newswire
CALGARY, Aug, 2, 2019 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB) (NYSE:ENB) today reported second quarter 2019 financial results and provided a quarterly business update.
SECOND QUARTER 2019 HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
CEO COMMENT
"We're very pleased to deliver another strong quarter of operating and financial results," commented Al Monaco, President and Chief Executive Officer of Enbridge. "Operationally, all of our core systems continue to run close to full capacity. We saw strong demand to move crude volumes on our system from Western Canada and the Bakken through to U.S. Gulf Coast markets; our gas transmission business remained in high demand; the Ontario gas utility saw high volumes during a colder than normal second quarter; and, we also benefited from attractive optimization opportunities in our Energy Services business. Importantly, we've added $2.5 billion of secured capital projects this year, across our businesses, with attractive commercial frameworks that align well with our low risk pipeline-utility model and extend our growth beyond 2020.
"Our operating performance, in combination with new projects that came into service over the past year, drove record second quarter EBITDA and DCF. As a result, we continue to anticipate full year results to be about the middle of our 2019 DCF guidance range of $4.30 to $4.60 per share.
"In addition to the strong results, we advanced key initiatives in each of our business units during the quarter. Liquids Pipelines launched an open season today for contracted capacity on the Mainline. Liquids Pipelines is also moving forward with Mainline system optimizations that will be ready later this year, as well as an expansion of the Express pipeline to be placed into service in early 2020.
"On the U.S. portion of our Line 3 Replacement Project execution, in Minnesota, we're awaiting further guidance from the Public Utilities Commission on the process and timing to address the Environmental Impact Statement deficiency identified by the Minnesota Appeals Court in June. The Minnesota PUC has publicly stated that it can deal with this matter expeditiously and the State permitting agencies have indicated their commitment to keep their permitting processes moving forward during this period, which we view positively.
"In Gas Transmission we continue to advance rate case discussions for the Texas Eastern and Algonquin systems. In the U.S. Gulf Coast, we are actively pursuing opportunities to support LNG development by leveraging our incumbent pipeline position in the region; a good example being our recent selection by Venture Global to provide transportation services to their Plaquemines LNG project in Louisiana.
"Within the Gas Utility business we've recently secured two new capital projects, totaling $0.2 billion, to reinforce the distribution network within our existing franchise area, which will deliver strong cost of service utility returns. We also continue to implement initiatives to drive efficiencies from the recent amalgamation.
"In our Power business, we also announced today that we're moving forward on the first of our four offshore wind farms under development in France, with our partner EDF Renouvelables. The 480MW Saint-Nazaire offshore wind farm will be located off the northwest French coast. Our $1.8 billion gross investment is underpinned by a fixed price power purchase agreement that is right in-line with our low risk business model, while providing a strong equity return. Looking ahead, we see significant potential to grow our European offshore renewable power generation business, which will help to further extend the Company's growth post-2020.
"Strategically, the actions we took over the past year to streamline, strengthen the balance sheet and move to a pure pipeline and utility model, have further de-risked the business and put us in a position of strength to capitalize on opportunities going forward. We remain focused on our key priorities for the year, which include strong operating and financial results, delivering reliable returns, adding to the secured project inventory, maintaining our financial strength and the continued self-funding of new growth capital. In seeking to extend growth, we plan to place an even greater emphasis on capturing the very best of a large suite of in-franchise organic growth opportunities. We believe that these actions will maximize shareholder value and deliver on our attractive investor value proposition.
"Finally, yesterday we experienced a rupture on one of our Texas Eastern natural gas pipelines near Danville, Kentucky. There has been one confirmed fatality, and we're deeply saddened by this. Our first concern is for those impacted by this incident and ensuring the safety of the community. Our team is on-site providing necessary support and resources to the community. In addition, the National Transportation Safety Board is on-site conducting an investigation and we are actively supporting their work. The impacted pipeline will not be returned into service until it is absolutely safe to do so. This serves as a critical reminder as to why the safety of our systems has and always will remain our number one priority.
"In summary, it was another strong quarter for the Company and we're pleased with the performance across each of the business units as well as the progress being made on key priorities," concluded Mr. Monaco.
FINANCIAL RESULTS SUMMARY
Financial results for the three and six months ended June 30, 2019, are summarized in the table below:
Three months ended | Six months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars, except per share amounts; number of shares in millions) | |||||
GAAP Earnings attributable to common shareholders | 1,736 | 1,071 | 3,627 | 1,516 | |
GAAP Earnings per common share | 0.86 | 0.63 | 1.80 | 0.90 | |
Cash provided by operating activities | 2,494 | 3,344 | 4,670 | 6,538 | |
Adjusted EBITDA1 | 3,208 | 3,165 | 6,977 | 6,571 | |
Adjusted Earnings1 | 1,349 | 1,094 | 2,989 | 2,469 | |
Adjusted Earnings per common share1 | 0.67 | 0.65 | 1.48 | 1.47 | |
Distributable Cash Flow1 | 2,310 | 1,858 | 5,068 | 4,170 | |
Weighted average common shares outstanding | 2,018 | 1,695 | 2,017 | 1,690 | |
1 | Non-GAAP financial measures. Schedules reconciling adjusted EBITDA, adjusted earnings, adjusted earnings per common share and distributable cash flow are available as Appendices to this news release. |
GAAP earnings attributable to common shareholders for the second quarter of 2019 increased by $665 million or $0.23 per share compared to the same period in 2018. The period-over-period comparability of earnings attributable to common shareholders was impacted by certain unusual and infrequent factors, the most prominent being the change in non-cash derivative fair value gains and losses between periods. Partially offsetting the increase in GAAP earnings attributable to common shareholders was a non-cash, write-down of crude oil and natural gas inventories to the lower of cost or market in the Energy Services business.
Adjusted earnings in the second quarter 2019 increased by $255 million. The increase was primarily driven by strong operating results across many of the Company's business units and from new projects placed into service in late 2018, partially offset by the loss of contributions from assets that were sold during 2018. On a per share basis, adjusted earnings increased by $0.02 per share compared to the same period in 2018, reflecting a higher share count after Enbridge's common equity financed acquisition of all of the outstanding equity securities of its sponsored vehicles not beneficially owned during the fourth quarter of 2018.
DCF for the second quarter was $2,310 million, an increase of $452 million over the comparable prior period in 2018, driven largely by the same factors noted above.
Detailed segmented financial information and analysis can be found below under Adjusted EBITDA by Segments.
SECURED PROJECT UPDATE
The Company announced today that it is proceeding with $2 billion of new growth projects across several business units, which in combination with projects announced in the first quarter, provides further visibility to the Company's growth post 2020.
Enbridge Gas Inc. (EGI) will proceed with $0.2 billion of system modernization and reinforcement work in Windsor and Owen Sound, Ontario. These new capital projects will earn a cost of service return under the newly approved incentive based rate-making structure. These projects are expected to come into service in the fourth quarter 2020.
The Company is also moving forward with its first offshore wind project in France. The Saint-Nazaire project is backed by a 20-year fixed price power purchase agreement with the French State, with unique power production protection, providing for a strong return underpinned by a solid commercial model. Enbridge is a 50% partner in the development company with EDF Renouvelables. The Company's share of the total investment in the project is $1.8 billion. Enbridge's equity contribution will be $0.3 billion, with the remainder of the construction financed through non-recourse project level debt. This project is expected to come into service in late 2022.
In the Gas Transmission business, although not included in the Company's secured capital, Enbridge recently secured the rights to serve Venture Global's Plaquemines LNG project in Louisiana through a $0.5 billion reversal and expansion of a Texas Eastern lateral pipeline, subject to achieving a positive final investment decision on the LNG plant.
MAINLINE CONTRACTING
On August 2, following several months of consultations and negotiations with the Company's shippers, Enbridge launched an open season for transportation services on the Liquids Mainline System. Following completion of the Line 3 Replacement project, Mainline capacity will be 3.225 mbpd, of which up to 2.9 mbpd will be contracted with the remaining 325 kbpd remaining in spot service. The open season will provide shippers with the opportunity to enter into long-term contracts for priority access on the Mainline System upon maturity of the current CTS agreement on June 30, 2021.
Key terms of the offering include:
The offering has been structured to ensure a fair and transparent process for all potential shippers, including small volume producers. The open season will run through October 2, 2019.
WCSB EGRESS INITIATIVES
In late 2019, the Company expects to deliver approximately 85 kbpd of incremental Mainline throughput, which is near the top of its previously guided range of 50-100 kbpd. This additional throughput will be achieved within the Company's current system capacity and operating parameters through crude delivery and receipt window efficiencies, optimization of crude quality slates, as well as the recovery of Line 4 capacity, which had been previously planned for in early 2020. Together, these capital efficient initiatives will provide much needed and cost effective near-term egress for Western Canadian Sedimentary Basin (WCSB) production.
On July 3, the Company launched an open season to support a 50 kbpd expansion of the Express pipeline. This expansion will provide additional takeaway capacity out of the WCSB to serve the PADD IV market and is expected to be available by the first quarter of 2020.
PROJECT EXECUTION UPDATE
The Company now has an inventory of approximately $19 billion of secured projects at various stages of execution, which includes approximately $2.5 billion of projects secured year to date. The individual projects that make up the secured program are all supported by long-term take-or-pay contracts, cost-of-service frameworks or similar low-risk commercial arrangements and are diversified across a wide range of business platforms and regulatory jurisdictions.
In the second quarter, the Company brought the US$0.2 billion Texas Eastern Stratton Ridge mainline expansion project into service. The project is underpinned by a long-term take-or-pay contracts and further advances the Company's U.S. Gulf Coast LNG export strategy.
Of the remaining projects targeted for completion in 2019, the two largest are the US$0.7 billion investment in the Gray Oak pipeline and the $1.1 billion HoHe See offshore wind power project in Germany. The Gray Oak pipeline is on track for completion by the end of the year, with volumes expected to ramp up in the first quarter of 2020 given the pressing need for incremental crude export capacity out of the Permian basin.
Execution of the 497MW HoHe See project continues to advance as planned with first power achieved in mid-July and full operations expected in the fourth quarter of 2019 as the remaining turbines are connected to the grid.
Line 3 Replacement
The $9 billion Line 3 Replacement Project is a significant component of the Company's secured project inventory. It is a critical integrity replacement project that will enhance the safety and reliability of Enbridge's Liquids Mainline System.
The Canadian segment of the pipeline replacement work is now substantially complete. In Wisconsin the replacement pipeline was placed into service in 2018 and the remainder of the U.S. portion in North Dakota, which is substantially permitted, and Minnesota is still to be constructed. In Minnesota, the permitting process is under way with all relevant federal and state agencies, including the U.S. Army Corps of Engineers, the Minnesota Department of Natural Resources, the Minnesota Pollution Control Agency, as well as other local government agencies in Minnesota.
On June 3, 2019, the Minnesota Court of Appeals rendered a decision on the Minnesota Public Utilities Commission's (MPUC) adequacy determination of the Environmental Impact Statement (EIS). While denying eight of the nine appealed items, the Minnesota Court of Appeals identified one issue that led them to reverse the adequacy determination. The Court remanded and directed the MPUC to perform spill modeling analysis within the Lake Superior Watershed. On July 3, 2019, several parties to the original appeal of the EIS, petitioned for Minnesota Supreme Court review of the Minnesota Court of Appeals June 3, 2019 decision. The MPUC and Enbridge responded to those petitions on July 23, 2019 and the Minnesota Supreme Court is expected to decide whether to accept or decline further review by September 3, 2019.
As for environmental permits, the spill modelling required by the Court of Appeals is a prerequisite to finalizing other state permits. At this time, Enbridge cannot determine when all necessary permits will be issued pending receipt of further information from the MPUC on a timeline to complete this work. The MPUC's statement on July 3, 2019 indicated that the agency will seek public comment and work expeditiously to address the EIS deficiency. Additionally, the State permitting agencies have confirmed they will continue to advance their permitting work in parallel with MPUC process. The Company expects to hear from the MPUC regarding their updated process and timelines, after which the Company expects permitting agencies to re-align their timelines to the MPUC process.
Depending on the final in-service date, there is a risk that the project may exceed the Company's total cost estimate of $9 billion for the combined Line 3 replacement project. However, at this time, the Company does not anticipate any capital cost impacts that would be material to Enbridge's financial position and outlook.
GAS TRANSMISSION REGULATORY PROCESS UPDATE
One of the Company's strategic priorities is to ensure timely and fair returns on existing and new capital additions to the Company's U.S. natural gas transmission systems. Enbridge continues to actively work with the Federal Energy Regulatory Commission (FERC) and with customers and intervenors to advance rate proceedings and settlement discussions on Texas Eastern, Algonquin and East Tennessee. For Texas Eastern, settlement discussions continue, with the expectation of achieving a negotiated settlement or commencing a rate case hearing. In either case the path to resolution is expected to be determined before the end of the year. The Company has also commenced early stage rate discussions with Algonquin customers with the expectation of a pre-packaged settlement on that system. Lastly, for East Tennessee, a settlement agreement was filed on May 23, 2019 and an order from the FERC is expected shortly.
FINANCING UPDATE
In 2018, Enbridge reached agreements to sell over $7.8 billion of non-core assets. Proceeds from these asset sales have provided the Company with significant additional financial flexibility to further strengthen the balance sheet and self-fund its secured growth program, including $2 billion of newly secured projects in the second quarter. As of June 30, 2019, the Company's consolidated Debt-to-EBITDA ratio was 4.6x on a trailing twelve month basis. This is well within the Company's long term target credit metric range of 4.5x to below 5.0x Debt-to-EBITDA.
The delay in the Line 3 Replacement project in-service date from late 2019 is not expected to have a material impact on leverage ratios. While the trajectory of further leverage reduction below the target credit metric range, absent new investments, may shift out slightly, credit metrics are expected to remain well within the Company's long-term guidance range.
SECOND QUARTER 2019 FINANCIAL RESULTS
The following table summarizes the Company's GAAP reported results for segment EBITDA, earnings attributable to common shareholders, and cash provided by operating activities for the second quarter of 2019.
GAAP SEGMENT EBITDA AND CASH FLOW FROM OPERATIONS
Three months ended | Six months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars) | |||||
Liquids Pipelines | 1,992 | 1,322 | 4,064 | 2,478 | |
Gas Transmission and Midstream | 941 | 1,014 | 1,961 | 1,140 | |
Gas Distribution | 390 | 370 | 1,052 | 1,006 | |
Renewable Power Generation and Transmission | 94 | 126 | 218 | 235 | |
Energy Services | 221 | 35 | 227 | 204 | |
Eliminations and Other | 107 | (118) | 355 | (397) | |
EBITDA | 3,745 | 2,749 | 7,877 | 4,666 | |
Earnings attributable to common shareholders | 1,736 | 1,071 | 3,627 | 1,516 | |
Cash provided by operating activities | 2,494 | 3,344 | 4,670 | 6,538 | |
For purposes of evaluating performance, the Company makes adjustments for unusual, non-recurring or non-operating factors to GAAP reported earnings, segment EBITDA, and cash flow provided by operating activities, which allow Management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of the underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per common share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
DISTRIBUTABLE CASH FLOW
Three months ended | Six months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars, except per share amounts) | |||||
Liquids Pipelines | 1,766 | 1,629 | 3,495 | 3,256 | |
Gas Transmission and Midstream | 936 | 1,032 | 1,976 | 2,078 | |
Gas Distribution | 390 | 369 | 1,083 | 1,015 | |
Renewable Power Generation and Transmission | 100 | 125 | 223 | 264 | |
Energy Services | 88 | 62 | 264 | 84 | |
Eliminations and Other | (72) | (52) | (64) | (126) | |
Adjusted EBITDA1,3 | 3,208 | 3,165 | 6,977 | 6,571 | |
Maintenance capital | (269) | (294) | (448) | (459) | |
Interest expense1 | (662) | (703) | (1,346) | (1,355) | |
Current income tax1 | (53) | (82) | (211) | (157) | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (54) | (306) | (100) | (599) | |
Cash distributions in excess of equity earnings1 | 189 | 114 | 283 | 177 | |
Preference share dividends | (96) | (87) | (191) | (174) | |
Other receipts of cash not recognized in revenue2 | 33 | 28 | 86 | 104 | |
Other non-cash adjustments | 14 | 23 | 18 | 62 | |
DCF3 | 2,310 | 1,858 | 5,068 | 4,170 | |
Weighted average common shares outstanding | 2,018 | 1,695 | 2,017 | 1,690 | |
1 | Presented net of adjusting items. |
2 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
3 | Schedules reconciling adjusted EBITDA and DCF are available as Appendices to this news release. |
Second quarter 2019 DCF increased by $452 million compared to the same period in 2018. The key drivers of quarter-over-quarter growth are summarized below:
ADJUSTED EARNINGS | Three months ended | Six months ended | |||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars, except per share amounts) | |||||
Adjusted EBITDA2 | 3,208 | 3,165 | 6,977 | 6,571 | |
Depreciation and amortization | (842) | (829) | (1,682) | (1,653) | |
Interest expense1 | (643) | (677) | (1,311) | (1,299) | |
Income taxes1 | (279) | (233) | (767) | (489) | |
Noncontrolling interests and redeemable noncontrolling interests1 | 1 | (243) | (37) | (483) | |
Preference share dividends | (96) | (89) | (191) | (178) | |
Adjusted earnings2 | 1,349 | 1,094 | 2,989 | 2,469 | |
Adjusted earnings per common share | 0.67 | 0.65 | 1.48 | 1.47 | |
1 | Presented net of adjusting items. |
2 | Schedules reconciling adjusted EBITDA and adjusted earnings are available as Appendices to this news release. |
Adjusted earnings increased by $255 million for the second quarter of 2019 compared to the same period in 2018. Growth in adjusted earnings was driven by the same factors impacting business performance and adjusted EBITDA as discussed under Distributable Cash Flow above. Other notable quarter-over-quarter drivers were:
Adjusted earnings per share for the second quarter of 2019 increased by $0.02 compared with the second quarter of 2018. The increase in adjusted earnings noted above, was partially offset on a per share basis by the issuance of approximately 297 million common shares to acquire, in separate transactions, all of the outstanding equity securities of its sponsored vehicles not beneficially owned by Enbridge during the fourth quarter of 2018.
ADJUSTED EBITDA BY SEGMENTS
Adjusted EBITDA by segment is reported on a Canadian dollar basis. Adjusted EBITDA generated from U.S. dollar denominated businesses were translated at stronger average Canadian dollar exchange rates in the second quarter of 2019 (C$1.34/$US) when compared to the corresponding 2018 period (C$1.29/$US). A portion of the U.S. dollar earnings are hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
LIQUIDS PIPELINES
Three months ended | Six months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars) | |||||
Mainline System1 | 950 | 956 | 1,914 | 1,898 | |
Regional Oil Sands System | 203 | 207 | 430 | 428 | |
Gulf Coast and Mid-Continent System | 265 | 161 | 481 | 339 | |
Other2 | 348 | 305 | 670 | 591 | |
Adjusted EBITDA3 | 1,766 | 1,629 | 3,495 | 3,256 | |
Operating Data (average deliveries – thousands of bpd) | |||||
Mainline System - ex-Gretna volume4 | 2,661 | 2,636 | 2,689 | 2,631 | |
Regional Oil Sands System5 | 1,818 | 1,719 | 1,785 | 1,751 | |
International Joint Tariff (IJT)6 | $4.15 | $4.07 | $4.15 | $4.07 | |
1 | Mainline System includes the Canadian Mainline and the Lakehead System, which were previously reported separately. |
2 | Included within Other are Southern Lights Pipeline, Express-Platte System, Bakken System and Feeder Pipelines & Other. |
3 | Schedules reconciling adjusted EBITDA are provided in the Appendices to this news release. |
4 | Mainline System throughput volume represents mainline system deliveries ex-Gretna, Manitoba which is made up of United States and eastern Canada deliveries originating from Western Canada. |
5 | Volumes are for the Athabasca mainline, Athabasca Twin, Waupisoo Pipeline and Woodland Pipeline and exclude laterals on the Regional Oil Sands System. |
6 | The IJT benchmark toll and its components are set in U.S. dollars and the majority of the Company's foreign exchange risk on the Canadian portion of the Mainline is hedged. The Canadian portion of the Mainline represents approximately 45% of total Mainline System revenue and the average effective FX rate for the Canadian portion of the Mainline during the second quarter of 2019 was US$1.19 (Q2 2018: US$1.26). |
The US portion of the Mainline System is subject to FX translation similar to the Company's other US based businesses, which are translated at the average spot rate for a given period. A portion of this US dollar translation exposure is hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other. |
Liquids Pipelines adjusted EBITDA increased by $137 million for the second quarter of 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Six months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars) | |||||
US Gas Transmission | 645 | 668 | 1,363 | 1,318 | |
Canadian Gas Transmission1 | 191 | 245 | 406 | 526 | |
US Midstream | 51 | 86 | 103 | 168 | |
Other | 49 | 33 | 104 | 66 | |
Adjusted EBITDA2 | 936 | 1,032 | 1,976 | 2,078 | |
1 | Canadian Gas Transmission includes Alliance Pipeline, which was previously reported separately. |
2 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Gas Transmission and Midstream adjusted EBITDA decreased by $96 million for the second quarter of 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
GAS DISTRIBUTION
Three months ended | Six months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars) | |||||
Enbridge Gas Inc. (EGI) | 373 | 354 | 1,015 | 926 | |
Other | 17 | 15 | 68 | 89 | |
Adjusted EBITDA1 | 390 | 369 | 1,083 | 1,015 | |
Operating Data | |||||
EGI | |||||
Volumes (billions of cubic feet) | 340 | 350 | 1,059 | 1,019 | |
Number of active customers (thousands)2 | 3,723 | 3,679 | |||
Heating degree days3 | |||||
Actual | 593 | 557 | 2,639 | 2,457 | |
Forecast based on normal weather4 | 516 | 517 | 2,438 | 2,437 | |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
2 | Number of active customers at the end of the reported period. |
3 | Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in EGI's distribution franchise areas. |
4 | As per Ontario Energy Board approved methodology used in setting rates. |
Enbridge Gas Distribution and Union Gas were amalgamated on January 1, 2019. The amalgamated company has been renamed Enbridge Gas Inc. (EGI). Post amalgamation the financial results of EGI reflect the combined performance of the two legacy utility operations.
Gas Distribution adjusted EBITDA will typically follow a seasonal profile. It is generally highest in the first and fourth quarters of the year reflecting greater volumetric usage during the heating season, and lowest in the third quarter as there is generally less volumetric usage during the summer. The magnitude of the seasonal EBITDA fluctuations will vary from year-to-year reflecting the impact of colder or warmer than normal weather on distribution volumes in a given quarter.
Gas Distribution adjusted EBITDA increased by $21 million for the second quarter 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
RENEWABLE POWER GENERATION AND TRANSMISSION
Three months ended | Six months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars) | |||||
Adjusted EBITDA1 | 100 | 125 | 223 | 264 | |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Renewable Power Generation and Transmission adjusted EBITDA decreased by $25 million for the second quarter of 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
ENERGY SERVICES
Three months ended | Six months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars) | |||||
Adjusted EBITDA1 | 88 | 62 | 264 | 84 | |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Energy Services adjusted EBITDA increased by $26 million for the second quarter of 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
ELIMINATIONS AND OTHER
Three months ended | Six months ended | ||||
2019 | 2018 | 2019 | 2018 | ||
(unaudited, millions of Canadian dollars) | |||||
Operating and administrative | (11) | 1 | 52 | (31) | |
Realized foreign exchange hedge settlements | (61) | (53) | (116) | (95) | |
Adjusted loss before interest, income taxes, and | |||||
depreciation and amortization1 | (72) | (52) | (64) | (126) | |
1 | Schedules reconciling adjusted EBITDA are available as Appendices to this news release. |
Operating and administrative costs captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) net of amounts recovered from business units for the provision of those services. Also, as previously noted, U.S. dollar denominated earnings within the segment results are translated at average foreign exchange rates during the quarter. The offsetting impact of settlements made under the Company's enterprise foreign exchange hedging program is captured in this segment.
Eliminations and Other adjusted loss before interest, income taxes and depreciation and amortization decreased by $20 million for the second quarter of 2019, when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
CONFERENCE CALL
Enbridge will host a conference call and webcast on August 2, 2019 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to provide an enterprise wide business update and review 2019 second quarter financial results. Analysts, members of the media and other interested parties can access the call toll free at (877) 930-8043 or within and outside North America at (253) 336-7522 using the access code of 8543168#. The call will be audio webcast live at https://edge.media-server.com/mmc/p/jiy5jnxx. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available for seven days after the call toll-free (855) 859-2056 or within and outside North America at (404) 537-3406 (access code 8543168#).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected DCF or DCF per share; expected future cash flows; expected performance of the Company's businesses; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected credit metrics and debt to EBITDA levels; expected cost of capital and costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected equity funding requirements for our commercially secured growth program; expected future growth and expansion opportunities, including optimization plans; expectations about the Company's joint venture partners' ability to complete and finance projects under construction; expected closing of acquisitions and dispositions and the timing thereof; expected future actions of regulators and courts; expectations regarding commodity prices; supply forecasts; expectations regarding the impact of transactions, including the transactions undertaken to simplify our corporate structure; plans to launch binding open seasons, including the terms and timing thereof; toll and rate case discussions and filings; and dividend growth and dividend payout expectation.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the timing and closing of acquisitions and dispositions; the realization of anticipated benefits and synergies of transactions; governmental legislation; litigation; the success of integration plans; impact of our dividend policy on the Company's future cash flows; credit ratings; capital project funding; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the expected EBITDA, expected adjusted EBITDA, earnings/(loss), expected adjusted earnings/(loss), expected DCF and associated per share amounts, or estimated future dividends. The most relevant assumptions associated with forward-looking statements regarding announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the realization of anticipated benefits and synergies of projects and transactions, operating performance, our dividend policy, regulatory parameters, changes in regulations applicable to our business, acquisitions and dispositions, litigation, project approval and support, renewals of rights of way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
ABOUT ENBRIDGE INC.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick, and generates approximately 1,600 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise part of this news release.
FOR FURTHER INFORMATION PLEASE CONTACT: | |
Enbridge Inc. – Media | Enbridge Inc. – Investment Community |
Jesse Semko | Jonathan Morgan |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com |
DIVIDEND DECLARATION
On August 1, 2019, the Company's Board of Directors declared the following quarterly dividends. All dividends are payable on September 1, 2019, to shareholders of record on August 15, 2019.
Dividend per | |
Common Shares | $0.73800 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C1 | $0.25647 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P2 | $0.27369 |
Preference Shares, Series R3 | $0.25456 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 3 | $0.25000 |
Preference Shares, Series 54 | US$0.33596 |
Preference Shares, Series 75 | $0.27806 |
Preference Shares, Series 9 | $0.27500 |
Preference Shares, Series 11 | $0.27500 |
Preference Shares, Series 13 | $0.27500 |
Preference Shares, Series 15 | $0.27500 |
Preference Shares, Series 17 | $0.32188 |
Preference Shares, Series 19 | $0.30625 |
1 | The quarterly dividend per share paid on Series C was decreased to $0.25395 from $0.25459 on March 1, 2019 and was increased to $0.25647 from $0.25395 on June 1, 2019, due to reset on a quarterly basis following the date of issuance of the Series C Preference Shares |
2 | The quarterly dividend per share paid on Series P was increased to $0.27369 from $0.25000 on March 1, 2019, due to reset of the annual dividend on March 1, 2019, and every five years thereafter |
3 | The quarterly dividend per share paid on Series R was increased to $0.25456 from $0.25000 on June 1, 2019, due to the reset of the annual dividend on June 1, 2019, and every five years thereafter |
4 | The quarterly dividend per share paid on Series 5 was increased to US$0.33596 from US$0.27500 on March 1, 2019, due to reset of the annual dividend on March 1, 2019, and every five years thereafter |
5 | The quarterly dividend per share paid on Series 7 was increased to $0.27806 from $0.27500 on March 1, 2019, due to reset of the annual dividend on March 1, 2019, and every five years thereafter |
NON-GAAP RECONCILIATIONS APPENDICES
This news release contains references to adjusted EBITDA, adjusted earnings, adjusted earnings per common share, and DCF. Management believes the presentation of these metrics gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Adjusted EBITDA represents EBITDA adjusted for unusual, non-recurring or non-operating factors on both a consolidated and segmented basis. Management uses adjusted EBITDA to set targets and to assess the performance of the Company and its Business Units.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, non-recurring or non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, non-recurring or non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes, noncontrolling interests and redeemable noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another measure of the Company's ability to generate earnings.
DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests and redeemable noncontrolling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
Reconciliations of forward looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly certain contingent liabilities, and non-cash unrealized derivative fair value losses and gains which are subject to market variability. Because of those challenges, a reconciliation of forward looking non-GAAP financial measures is not available without unreasonable effort.
Our non-GAAP measures described above are not measures that have standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers.
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON-GAAP RECONCILIATIONS – ADJUSTED EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
Three months ended | Six months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Liquids Pipelines | 1,992 | 1,322 | 4,064 | 2,478 |
Gas Transmission and Midstream | 941 | 1,014 | 1,961 | 1,140 |
Gas Distribution | 390 | 370 | 1,052 | 1,006 |
Renewable Power Generation and Transmission | 94 | 126 | 218 | 235 |
Energy Services | 221 | 35 | 227 | 204 |
Eliminations and Other | 107 | (118) | 355 | (397) |
EBITDA | 3,745 | 2,749 | 7,877 | 4,666 |
Depreciation and amortization | (842) | (829) | (1,682) | (1,653) |
Interest expense | (637) | (690) | (1,322) | (1,346) |
Income tax (expense)/recovery | (436) | 97 | (1,020) | 170 |
(Earnings)/loss attributable to noncontrolling interests and | ||||
redeemable noncontrolling interests | 2 | (167) | (35) | (143) |
Preference share dividends | (96) | (89) | (191) | (178) |
Earnings attributable to common shareholders | 1,736 | 1,071 | 3,627 | 1,516 |
ADJUSTED EBITDA TO ADJUSTED EARNINGS
Three months ended | Six months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Liquids Pipelines | 1,766 | 1,629 | 3,495 | 3,256 |
Gas Transmission and Midstream | 936 | 1,032 | 1,976 | 2,078 |
Gas Distribution | 390 | 369 | 1,083 | 1,015 |
Renewable Power Generation and Transmission | 100 | 125 | 223 | 264 |
Energy Services | 88 | 62 | 264 | 84 |
Eliminations and Other | (72) | (52) | (64) | (126) |
Adjusted EBITDA | 3,208 | 3,165 | 6,977 | 6,571 |
Depreciation and amortization | (842) | (829) | (1,682) | (1,653) |
Interest expense | (643) | (677) | (1,311) | (1,299) |
Income taxes | (279) | (233) | (767) | (489) |
Noncontrolling interests and redeemable noncontrolling interests | 1 | (243) | (37) | (483) |
Preference share dividends | (96) | (89) | (191) | (178) |
Adjusted earnings | 1,349 | 1,094 | 2,989 | 2,469 |
Adjusted earnings per common share | 0.67 | 0.65 | 1.48 | 1.47 |
EBITDA TO ADJUSTED EARNINGS
Three months ended | Six months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
EBITDA | 3,745 | 2,749 | 7,877 | 4,666 |
Adjusting items: | ||||
Change in unrealized derivative fair value (gain)/loss | (695) | 282 | (1,131) | 559 |
Asset write-down loss | — | 10 | — | 1,067 |
Employee severance, transition and transformation costs | 21 | 29 | 65 | 126 |
Equity investment asset impairment | — | — | — | 33 |
Asset monetization costs | — | 20 | — | 20 |
Write-down of inventory to the lower of cost or market | 138 | 16 | 144 | 16 |
Other | (1) | 59 | 22 | 84 |
Total adjusting items | (537) | 416 | (900) | 1,905 |
Adjusted EBITDA | 3,208 | 3,165 | 6,977 | 6,571 |
Depreciation and amortization | (842) | (829) | (1,682) | (1,653) |
Interest expense | (637) | (690) | (1,322) | (1,346) |
Income tax (expense)/recovery | (436) | 97 | (1,020) | 170 |
(Earnings)/loss attributable to noncontrolling interests | ||||
and redeemable noncontrolling interests | 2 | (167) | (35) | (143) |
Preference share dividends | (96) | (89) | (191) | (178) |
Adjusting items in respect of: | ||||
Interest expense | (6) | 13 | 11 | 47 |
Income taxes | 157 | (330) | 253 | (659) |
Noncontrolling interests and redeemable noncontrolling interests | (1) | (76) | (2) | (340) |
Adjusted earnings | 1,349 | 1,094 | 2,989 | 2,469 |
Adjusted earnings per common share | 0.67 | 0.65 | 1.48 | 1.47 |
APPENDIX B
NON-GAAP RECONCILIATION – SEGMENTED EBITDA TO ADJUSTED EBITDA
LIQUIDS PIPELINES
Three months ended | Six months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 1,766 | 1,629 | 3,495 | 3,256 |
Change in unrealized derivative fair value gain/(loss) | 227 | (275) | 570 | (573) |
Asset write-down loss - asset held for sale | — | (10) | — | (154) |
Employee severance, transition and transformation costs | — | (2) | — | (28) |
Other | (1) | (20) | (1) | (23) |
Total adjustments | 226 | (307) | 569 | (778) |
EBITDA | 1,992 | 1,322 | 4,064 | 2,478 |
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Six months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 936 | 1,032 | 1,976 | 2,078 |
Change in unrealized derivative fair value gain/(loss) | — | (4) | — | 2 |
Asset write-down loss - US Midstream | — | — | — | (913) |
Employee severance, transition and transformation costs | — | — | — | (7) |
Other | 5 | (14) | (15) | (20) |
Total adjustments | 5 | (18) | (15) | (938) |
EBITDA | 941 | 1,014 | 1,961 | 1,140 |
GAS DISTRIBUTION
Three months ended | Six months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited; millions of Canadian dollars) | ||||
Adjusted EBITDA | 390 | 369 | 1,083 | 1,015 |
Change in unrealized derivative fair value gain | 4 | 2 | 8 | 3 |
Noverco Inc. equity earnings adjustment | — | — | — | (9) |
Employee severance, transition and transformation costs | (4) | (1) | (39) | (3) |
Total adjustments | — | 1 | (31) | (9) |
EBITDA | 390 | 370 | 1,052 | 1,006 |
RENEWABLE POWER GENERATION AND TRANSMISSION
Three months ended | Six months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 100 | 125 | 223 | 264 |
Change in unrealized derivative fair value gain | 1 | 1 | 2 | 4 |
Equity investment asset impairment | — | — | — | (33) |
Other | (7) | — | (7) | — |
Total adjustments | (6) | 1 | (5) | (29) |
EBITDA | 94 | 126 | 218 | 235 |
ENERGY SERVICES
Three months ended | Six months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA | 88 | 62 | 264 | 84 |
Change in unrealized derivative fair value gain/(loss) | 271 | (11) | 107 | 136 |
Write-down of inventory to the lower of cost or market | (138) | (16) | (144) | (16) |
Total adjustments | 133 | (27) | (37) | 120 |
EBITDA | 221 | 35 | 227 | 204 |
ELIMINATIONS AND OTHER
Three months ended | Six months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted loss before interest, income taxes, and | ||||
depreciation and amortization | (72) | (52) | (64) | (126) |
Change in unrealized derivative fair value gain/(loss) | 192 | 5 | 444 | (131) |
Asset monetization costs | — | (20) | — | (20) |
Employee severance, transition and transformation costs | (17) | (26) | (26) | (88) |
Other | 4 | (25) | 1 | (32) |
Total adjustments | 179 | (66) | 419 | (271) |
Earnings/(loss) before interest, income taxes, and | ||||
depreciation and amortization | 107 | (118) | 355 | (397) |
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING ACTIVITIES TO DCF
Three months ended | Six months ended | |||
2019 | 2018 | 2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||||
Cash provided by operating activities | 2,494 | 3,344 | 4,670 | 6,538 |
Adjusted for changes in operating assets and liabilities1 | 12 | (978) | 679 | (1,600) |
2,506 | 2,366 | 5,349 | 4,938 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (54) | (306) | (100) | (599) |
Preference share dividends | (96) | (87) | (191) | (174) |
Maintenance capital expenditures2 | (269) | (294) | (448) | (459) |
Significant adjusting items: | ||||
Other receipts of cash not recognized in revenue3 | 33 | 28 | 86 | 104 |
Employee severance, transition and transformation costs | 27 | 38 | 71 | 170 |
Distributions from equity investments in excess of cumulative earnings4 | 129 | 75 | 190 | 188 |
Other items | 34 | 38 | 111 | 2 |
DCF | 2,310 | 1,858 | 5,068 | 4,170 |
1 | Changes in operating assets and liabilities, net of recoveries. |
2 | Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing pipeline system or that are necessary to maintain the service capability of the existing assets (including the replacement of components that are worn, obsolete or completing their useful lives). For the purpose of DCF, maintenance capital excludes expenditures that extend asset useful lives, increase capacities from existing levels or reduce costs to enhance revenues or provide enhancements to the service capability of the existing assets. |
3 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
4 | Presented net of adjusting items. |
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-reports-strong-second-quarter-2019-results-300895540.html
SOURCE Enbridge Inc.
Article Date
8/2/20198/2/2019 - Enbridge To Hold Open Season for Transportation Services on Canadian Mainline Pipeline System
Enbridge To Hold Open Season for Transportation Services on Canadian Mainline Pipeline System
Source: PR Newswire
CALGARY, Aug. 2, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) today announced it will be holding an open season for transportation services on the Canadian Mainline pipeline system.
The Canadian Mainline is a common carrier pipeline system with 100% of its transportation capacity currently available to shippers on a spot, or uncommitted, basis. The Competitive Tolling Settlement (CTS) that governs transportation tolls on the Mainline will expire on June 30, 2021. In advance of CTS expiration, Enbridge has spent considerable time negotiating with its shippers and is holding an open season in order to provide shippers with the opportunity to enter into long-term contracts for priority transportation service on the Canadian Mainline, with at least 10% of capacity reserved for uncommitted volumes at all times.
Highlights of the open season offering include:
Enbridge is seeking to have Canadian Mainline contracting take effect on July 1, 2021, subject to regulatory approval.
Following completion of the Line 3 Replacement project, Mainline capacity will be 3.225 million bpd, of which up to 2.9 million bpd will be contracted with the remaining 325 kbpd remaining in spot service.
The open season will begin at 8:00 a.m. MDT August 2, 2019 and end at 12:00 p.m. MDT on October 2, 2019.
Bona fide potential shippers that desire to receive copies of the open season documents, including open season procedures and transportation service agreements, are required to execute a confidentiality agreement (CA).
All shipper inquiries about the open season or CA submissions should be directed to:
Brent Heinz
Director Mainline Contracting Execution
Phone: (403) 508-3158
Email: brent.heinz@enbridge.com
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the proposed open season for transportation services on the Canadian Mainline pipeline system, including the benefits and timing thereof.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also generates approximately 1,600 MW of net renewable energy power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media | Investment Community |
Jesse Semko | Jonathan Morgan |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com |
View original content:http://www.prnewswire.com/news-releases/enbridge-to-hold-open-season-for-transportation-services-on-canadian-mainline-pipeline-system-300895511.html
SOURCE Enbridge Inc.
Article Date
8/2/2019Enbridge Inc. to Host Webcast to Discuss 2019 Second Quarter Results on August 2
Source: PR Newswire
CALGARY, July 12, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) will host a conference call and webcast to provide an enterprise-wide business update and review 2019 second quarter results on August 2, 2019 at 7:00 a.m. MT (9:00 a.m. ET).
Enbridge will announce second quarter results before markets open on August 2, 2019.
2019 Second Quarter Earnings Webcast and Conference Call
When: | Friday August 2, 2019 | |
7:00 a.m. MT (9:00 a.m. ET) | ||
Webcast: | ||
Call: | Dial-in (Audio only – please dial in 10 minutes ahead): | |
North America Toll Free: | 1 (877) 930-8043 | |
Outside North America: | 1 (253) 336-7522 | |
Participant Passcode: | 8543168 | |
A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the company website within approximately 24 hours.
Replay: | Audio Replay # (Available for 7 days after call): | |
North America Toll Free: | 1 (855) 859-2056 | |
Outside North America: | 1 (404) 537-3406 | |
Replay Passcode: | 8543168 | |
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also generates approximately 1,600 MW of net renewable energy power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Tracie Kenyon
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-to-host-webcast-to-discuss-2019-second-quarter-results-on-august-2-300884178.html
SOURCE Enbridge Inc.
Article Date
7/12/2019Enbridge To Hold Open Seasons for Priority Service on Express Pipeline
Source: PR Newswire
CALGARY, July 2, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) today announced it will be holding Open Seasons on the Express Pipeline Limited Partnership pipeline in Canada, for existing and expanded capacities, for service originating at Hardisty, Alberta, with delivery points on the Express Pipeline LLC pipeline in the United States.
"Given the shortage of pipeline capacity out of the Western Canadian Sedimentary Basin, Enbridge has been exploring options to provide industry with incremental near term capacity," said Guy Jarvis Executive Vice President Liquids Pipelines. "The efficient expansion capacity on the Express Pipeline being offered in this open season will provide additional takeaway capacity, which we believe will be well received by the shipping community."
The Open Season for existing capacity will begin at 8 a.m. MDT on July 3, 2019 and end at 12 p.m. MDT on August 7, 2019.
The Open Season for expanded capacity will begin at 8 a.m. MDT on July 3, 2019 and end at 12 p.m. MDT on August 23, 2019.
Bona fide potential shippers that desire to receive copies of the Open Season documents, including Open Season Procedures and Transportation Service Agreements, are required to execute a confidentiality agreement (CA).
All inquiries about the open season or CA submissions should be directed to:
Brad Heidt
Manager BD & AP
Phone: (403) 266-7889
Email: brad.heidt@enbridge.com
Vadim Parshintsev
Senior Advisor BD & AP
Phone: (403) 718-3518
Email: vadim.parshintsev@enbridge.com
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the proposed open seasons on the Express Pipeline Limited Partnership pipeline, including the benefits and timing thereof.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also generates approximately 1,600 MW of net renewable energy power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Tracie Kenyon
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-to-hold-open-seasons-for-priority-service-on-express-pipeline-300879453.html
SOURCE Enbridge Inc.
Article Date
7/2/2019Enbridge CEO Al Monaco to Present at J.P. Morgan Energy Conference
Source: PR Newswire
CALGARY, June 14, 2019 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) announced today that Al Monaco, President and Chief Executive Officer of Enbridge, is scheduled to present at the J.P. Morgan Conference in New York, NY on Tuesday, June 18, 2019.
Presentation slides will be posted to Enbridge's website at 'Events and Presentations' in advance of the scheduled presentation.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers in excess of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,600 MW of net renewable generating capacity in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Morgan
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-ceo-al-monaco-to-present-at-jp-morgan-energy-conference-300867892.html
SOURCE Enbridge Inc.
Article Date
6/14/2019Enbridge Reaffirms Commitment to Michigan Environment & Energy Security
Source: PR Newswire
CALGARY, June 5, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) today confirmed it is proceeding with preparations to advance its 2019 plan in support of constructing a tunnel to house the Straits of Mackinac crossing of the Company's Line 5 pipeline. These preparations have continued to advance further since our last update and include detailed engineering, geotechnical analysis, undertaking pre-application consultation, and filing of permit applications.
As previously announced, Enbridge believes the tunnel can be under construction in 2021 and in service as soon as early 2024, assuming no delays in the permitting process. Enbridge has further committed that operation of the existing Straits Line 5 crossing would cease immediately following the placement into service of the replacement pipeline in the tunnel. This plan would avoid significant impacts to the State's energy supply, including higher energy costs, supply shortages for propane and transportation fuels and constrained supplies for regional refineries which would result if the line was shut down sooner than the new tunnel being completed as the State has suggested.
These impacts, and Enbridge's tunnel plan and related commitments have been discussed with the State in May and earlier this week. A May 24 letter summarizing Enbridge's proposed plan and benefits to Michiganders is available by clicking here.
Enbridge looks forward to continue engaging the State on a path forward in support of this tunnel plan which achieves:
Enbridge takes its responsibility seriously to protect the environment while safely delivering critical and undisrupted energy that is essential and vital to Michiganders. That is why we are proceeding with these preparations in support of a $500-million investment to build the tunnel that provides the people of Michigan with even greater protection of the Strait's crossing and reduces risk to as near zero as humanly possible.
A backgrounder is available here.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included or incorporated by reference in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the proposed underground tunnel to house a replacement of the existing Line 5 pipeline ("Line 5"), including the benefits, risks, costs and timing thereof, the receipt of applicable permits and governmental, regulatory and other approvals, and related matters such as additional protective measures and other program commitments.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements with respect to projects such as the replacement of Line 5, including estimated completion dates and expected capital expenditures, include the following: the impact of customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; and the impact of weather.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also generates approximately 1,600 MW of net renewable energy power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT: | |
Media | Investment Community |
Ryan Duffy | Jonathan Gould |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com | Email: investor.relations@enbridge.com |
View original content:http://www.prnewswire.com/news-releases/enbridge-reaffirms-commitment-to-michigan-environment--energy-security-300862843.html
SOURCE Enbridge Inc.
Article Date
6/5/2019Enbridge Statement on Future of Line 5 in Michigan
Source: PR Newswire
CALGARY, May 30, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) today addressed statements made yesterday by the Michigan Attorney General and Governor about our joint efforts with the State on the proposed construction of an underground tunnel that would ultimately house a replacement of the existing Line 5 pipelines across the Straits of Mackinac, which have always operated safely.
In recent meetings and in a letter to the Governor, Enbridge has reiterated its shared vision with Michigan of further reducing risk and how we believe constructing a tunnel to house the Straits pipelines is the most effective and timely way to remove the existing Line 5 while ensuring the critical energy needs of Michiganders are met. Enbridge has committed to construct the tunnel as quickly as prudently possible and to advance a number of additional protective measures while we construct the tunnel. Given the Attorney General's opinion that the previous administration tunnel authority is invalid, Enbridge engaged and has continued to engage the State about alternatives to address that concern.
Discussions with the State along with additional commitments from Enbridge mean we can get the tunnel under construction and complete sooner than previously anticipated. Assuming we are able to move through the permitting process without delay, we believe the tunnel can be under construction in 2021 and in service as soon as early 2024. As previously committed, operation of the current Line 5 would cease immediately following the placement into service of the replacement pipeline in the tunnel. Enbridge has also committed to provide additional safety measures surrounding its operation during that interim period while the tunnel is being permitted and constructed.
Line 5 continues to be a critical piece of infrastructure. It currently serves the propane needs of the Upper Peninsula and Northern Michigan, providing roughly 55 percent of the entire state's propane needs for heating homes while supporting agriculture and manufacturing needs. Michigan is also a net-importer of transportation fuels and Line 5 provides feedstock not just to the Detroit refinery but those in neighboring states that are critical to meeting the state's energy needs. These same refineries supply a large proportion of the aviation fuel at the Detroit Metropolitan Airport, a vital contributor to basic transportation and the state's economy.
According to the U.S. Department of Transportation, pipelines are the safest way to move energy. It would take 2,150 tanker trucks – 90 leaving the terminal every hour, 24 hours a day – or more than 800 rail cars each day to deliver the amount of energy carried by Line 5.
Enbridge takes its responsibility to deliver vital products to Michigan communities and customers seriously, and is prepared to invest $500 million to build this tunnel solution.
Line 5 is safe and critical to Michigan and we therefore continue to operate it. As referenced in the attached backgrounder, independent analysis commissioned by the State of Michigan and the Pipeline and Hazardous Materials Safety Administration have confirmed the safety of the existing pipeline. This includes an independent scientific study in 2017 that determined there are no feasible alternative routes for a new pipeline, and no better alternative mode of transporting the energy that Line 5 carries. Further, a State-commissioned report, Alternatives Analysis for the Straits Pipelines, concluded the risk of a release into the Great Lakes from a replacement pipeline built within the proposed underground tunnel would be "negligible" and "un-quantifiably low."
Notwithstanding the safety of Line 5, it is our view the tunnel represents a practical approach to meeting the state's energy needs while providing the people of Michigan with even greater protection of this crossing to as near zero risk as humanly possible. Moreover, Enbridge has undertaken numerous added measures that exceed regulatory requirements.
Geo-technical activities in support of the 2019 work plan necessary to preserve the 2021 construction start have commenced, with increasing commitments to contractors ramping up leading into the summer months. Enbridge is fully prepared to proceed with the 2019 program, necessary permitting and construction of the tunnel but it is awaiting the State's decision on supporting that path forward.
Line 5 was originally built to serve the energy needs of Michigan in a safe and reliable way and that objective remains today. We look forward to further collaboration with the state to ensure an orderly and diligent permitting process so that we can continue with design and construction planning for the Straits tunnel.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the proposed underground tunnel to house a replacement of the existing Line 5 pipelines ("Line 5"), including the benefits, risks, costs and timing thereof, the receipt of applicable permits and governmental, regulatory and other approvals, and other related matters such as additional protective measures and commitments.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements with respect to projects such as the replacement of Line 5, including estimated completion dates and expected capital expenditures, include the following: the impact of customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; and the impact of weather.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also generates approximately 1,600 MW of net renewable energy power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
LINE 5 BACKGROUNDER AND TIMELINE
Line 5 Critical to Michigan's Energy Needs
Line 5 Can Operate Safely for Decades
Tunnel Makes Safe Pipeline Even Safer
Timeline
July 14, 2015
The Michigan Petroleum Pipeline Task Force delivers its report to the State which recommends the creation of the Michigan Pipeline Safety Advisory Board (PSAB).
September 3, 2015
Enbridge signs agreement to re-affirm its previous commitments to continue to not ship heavy crude through Line 5.
June 18, 2017
Enbridge completes a hydrotest of the Straits section of Line 5.
October 26, 2017
The independent Alternatives Analysis for the Straits Pipelines Report [LINK TO REPORT], commissioned by the PSAB, is released.
November 27, 2017
First Agreement with the State of Michigan.
June 14, 2018
Enbridge releases a report on the feasibility of a Straits tunnel project. [LINK TO REPORT]
October 3, 2018
Second Agreement with the State of Michigan.
December 19, 2018
Third Agreement with the State of Michigan and Tunnel Agreement.
May 21, 2019
On-shore rock and soil sampling work begins on the South shore of the Straits.
June 2019
Underwater rock and soil sampling work begins.
July 2019
Deep water rock and soil sampling work begins.
2020
Concurrent contracting with tunnel design/construction company and completion of final tunnel design.
2020
Procurement and construction of unique tunnel boring machine.
2020-2021
18 to 24 months anticipated to obtain all necessary federal, state and local permits.
Fourth quarter 2021
Boring and construction of the tunnel begins.
2021-2023
Approximately two years to bore and construct the tunnel at an anticipated average of 40 feet per day
First half 2024
Testing and commissioning of new Line 5 crossing at the Straits contained within the new tunnel.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Michael Barnes
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-statement-on-future-of-line-5-in-michigan-300859511.html
SOURCE Enbridge Inc.
Article Date
5/30/2019Enbridge Announces Conversion Results for Series R Preferred Shares
Source: PR Newswire
CALGARY, May 17, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that none of Enbridge's outstanding Cumulative Redeemable Preference Shares, Series R (Series R Shares) will be converted into Cumulative Redeemable Preference Shares, Series S of Enbridge (Series S Shares) on June 1, 2019.
After taking into account all conversion notices received from holders of its outstanding Series R Shares by the May 17, 2019 deadline for the conversion of the Series R Shares into Series S Shares, less than the 1,000,000 Series R Shares required to give effect to conversions into Series S Shares were tendered for conversion.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also generates approximately 1,600 MW of net renewable energy power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Tracie Kenyon
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-conversion-results-for-series-r-preferred-shares-300852752.html
SOURCE Enbridge Inc.
Article Date
5/17/2019Enbridge Inc. Reports Strong First Quarter 2019 Results
Source: PR Newswire
CALGARY, May 10, 2019 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB) (NYSE:ENB) today reported first quarter 2019 financial results and provided a quarterly business update.
FIRST QUARTER 2019 HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
CEO COMMENT
"We're very pleased with our strong start to 2019," commented Al Monaco, President and Chief Executive Officer of Enbridge. "Operationally, all of our systems are running well and near capacity. In fact, we hit record throughput levels this quarter on the Liquids Mainline System. In addition, our gas transmission systems were in high demand given the colder weather we experienced in our franchises this winter, and the Ontario gas utility business hit record dispatch days in January and February. We also benefited from strong margins in our Energy Services business this quarter.
"This strong operating performance, in combination with new projects that came into service this past year, drove record EBITDA in the first quarter, although the Line 3 in-service delay to 2020, relative to our full year 2019 budget, will offset this first quarter strength. Our 2019 DCF guidance range is unchanged at $4.30 to $4.60 per share.
"Each of the business units demonstrated progress on key initiatives this quarter. Our Liquids Pipelines team continued discussions with customers on the terms of a new commercial framework for the Liquids Mainline System to replace the existing CTS tolling agreement expiring in 2021. We expect to be in a position to launch an open season in mid-July, with the goal of bringing forward a new toll filing to the regulator by year-end.
"Our Gas Transmission team has been advancing rate case discussions for the Texas Eastern system, and the business development group is active in the US Gulf Coast right now assessing opportunities to support LNG development.
"Within the Gas Utility business, this was the first quarter of combined operations and we've begun driving out efficiencies. We've also secured an additional expansion of the Dawn to Parkway transmission system, a low risk organic growth project that supports increasing gas flows into our franchise areas and further into the U.S. northeast.
"We're also pleased with the ongoing execution progress being made on the Line 3 replacement project. Firstly, in Canada, we expect to have construction complete on this segment of the line by the end of May. And in Minnesota, we now have permitting timelines from the state's agencies that support issuance of the environmental permitting by November. We're working closely with these agencies and we expect to bring the full project into service within the second half of 2020, subject to timely permitting approvals.
"Finally, from a strategic standpoint, the actions we've taken over the past year have put us in a position of strength going forward, and we're seeing the benefits of this already. The operating and financial performance of our core low risk businesses have been strong and reliable. Our balance sheet has been reinforced and we now have significant financial flexibility which has, among other things, enabled us to eliminate our DRIP and move to a self-funded growth model. And we're also seeing significant efficiencies take hold, namely, elimination of our sponsored vehicles, amalgamation of our two Ontario utilities, and debt restructuring from the structural streamlining that has taken place.
"In summary, it was another strong quarter for Enbridge across all of the business units. We're pleased with the operational and financial performance, and we'll continue to advance our key strategic priorities throughout the balance of the year, with an enhanced focus on capital allocation, growth and return on investment to maximize shareholder value," concluded Mr. Monaco.
FINANCIAL RESULTS SUMMARY
Financial results for the three months ended March 31, 2019, are summarized in the table below:
Three months ended | ||||
2019 | 2018 | |||
(unaudited, millions of Canadian dollars, except per share amounts; number of shares in millions) | ||||
GAAP Earnings attributable to common shareholders | 1,891 | 445 | ||
GAAP Earnings per common share | 0.94 | 0.26 | ||
Cash provided by operating activities | 2,176 | 3,194 | ||
Adjusted EBITDA1 | 3,769 | 3,406 | ||
Adjusted Earnings1 | 1,640 | 1,375 | ||
Adjusted Earnings per common share1 | 0.81 | 0.82 | ||
Distributable Cash Flow1 | 2,758 | 2,312 | ||
Weighted average common shares outstanding | 2,016 | 1,685 | ||
1 Non-GAAP financial measures. Schedules reconciling adjusted EBITDA, adjusted earnings, adjusted earnings per common | ||||
GAAP earnings attributable to common shareholders for the first quarter of 2019 increased by $1,446 million or $0.68 per share compared to the same period in 2018. The period-over-period comparability of earnings attributable to common shareholders was impacted by certain unusual and infrequent factors, including the absence in 2019 of a non-cash charge resulting from the write down of assets held for sale in 2018 and the change in non-cash derivative fair value gains and losses. Also driving higher GAAP earnings was the impact of stronger business performance as described below.
Adjusted earnings in the first quarter 2019 increased by $265 million. The increase was primarily driven by strong operating results and operating cost efficiencies across many of the Company's business units, partially offset by the loss of contributions from assets which were sold during 2018. On a per share basis, adjusted earnings decreased by $0.01 per share compared to the same period in 2018, reflecting a higher share count after Enbridge's common equity financed acquisition of all of the outstanding equity securities of its sponsored vehicles not beneficially owned during the fourth quarter of 2018.
DCF for the first quarter was $2,758 million, an increase of $446 million over the comparable prior period in 2018, driven largely by the same factors noted above.
Detailed segmented financial information and analysis can be found below under Adjusted EBITDA by Segments.
SECURED PROJECT UPDATE
The Company announced today that it is proceeding with a $0.2 billion expansion of the Dawn to Parkway gas transmission system in Ontario. This expansion is underpinned by a successful open season that generated roughly 75 mmcf/d of incremental capacity commitments over a 15-year term to meet growing demand in Ontario and the U.S. Northeast. The Company will apply for cost of service regulatory treatment under the Incremental Capital Module of its new incentive framework approved by the Ontario Energy Board (OEB). The project is expected to come into service by the end of 2021.
In the first quarter, the Company had also announced $0.3 billion of new pipeline and utility growth capital projects, which included the East-West Tie (EWT) Transmission Project and the acquisition of the Generation Pipeline.
The EWT Transmission Project will add capacity between Wawa and Thunder Bay to support electricity supply to Northwest Ontario. Enbridge currently has a 25% equity interest in EWT and plans to invest approximately $0.2 billion for its share of the project. The project is supported by a cost of service framework and is expected to be in service in late 2021. All major permitting is now secured and the construction phase is proceeding with work along the right of way expected to begin in June.
Generation Pipeline is a 355 million cubic feet a day pipeline that serves power generation and industrial load in northern Ohio and will interconnect with the Nexus Pipeline. Enbridge's share of the acquisition is approximately US$0.1 billion and the pipeline is fully contracted with long term agreements. The transaction is expected to close in the second half of 2019.
PROJECT EXECUTION UPDATE
The Company now has a $16 billion inventory of secured projects at various stages of execution which are scheduled to come into service between 2019 and 2023. The individual projects that make up the secured program are all supported by long-term take-or-pay contracts, cost-of-service frameworks or similar low-risk commercial arrangements and are diversified across a wide range of business platforms and regulatory jurisdictions.
Of these projects, roughly $3 billion are expected to come into service later in 2019. This includes the Gray Oak pipeline, of which Enbridge holds a 22.8% ownership interest. Project execution forecasts have been refreshed to reflect updated construction cost estimates and timing. Gray Oak is expected to come into service in the fourth quarter of 2019 with Enbridge's share of the capital cost expected to be US$0.7 billion. This project continues to have an attractive risk/return profile and forms a part of Enbridge's strategy to further build out its pipeline network in the US Gulf Coast.
LINE 3 REPLACEMENT UPDATE
The Line 3 Replacement Project is a critical integrity replacement project that will enhance the safety and reliability of the Enbridge Liquids Mainline System.
Construction on the Canadian segment of the pipeline is expected to be completed by the end of May. The pipeline replacement work in Wisconsin is complete and was placed into service in 2018. Regulatory and permitting work in North Dakota is complete and construction is expected to be undertaken in 2020 in conjunction with adjacent construction spreads.
In Minnesota, the MPUC has finalized all of its written orders and has denied all petitions to reconsider its regulatory decisions. The permitting process is under way with all relevant federal and state agencies, including the U.S. Army Corps of Engineers, the Minnesota Department of Natural Resources (DNR), the Minnesota Pollution Control Agency (PCA), as well as other local government agencies in Minnesota. During the quarter, the DNR and the PCA published processes and timelines for issuing their environmental permitting by November 2019. Enbridge anticipates that the remaining Federal permits will be finalized approximately 30 to 60 days thereafter. This new permitting schedule updates the Company's prior expectation for the receipt of final State permits in the second quarter of 2019, which underpinned an expected in-service date before the end of 2019. In light of this new permitting timeline, the Company is developing a revised construction schedule and related cost estimates for the Line 3 Replacement Project. However, as previously disclosed, based on the new permitting timeline, the Company expects an in-service date during the second half of 2020.
Construction costs for the Line 3 Replacement Project are tracking below budget in Canada and above budget in the U.S. due to permitting delays in Minnesota. Depending on the final in service date, there is a risk that the project will exceed the Company's total cost estimate of $9 billion. However, the Company does not anticipate any capital cost impacts that are material to Enbridge's financial position and outlook.
OTHER BUSINESS UPDATES
Enbridge has been advancing discussions with industry on the terms of a new commercial framework for the Liquids Mainline System to replace the existing Competitive Toll Settlement that expires in June 2021. The Company plans to launch an open season in mid-July 2019, with the goal of bringing forward a toll filing to its regulator, the National Energy Board (NEB), by year-end.
One of the Company's strategic priorities is to ensure timely and fair returns on existing and new capital additions to the Company's U.S. natural gas transmission systems. Enbridge continues to actively work with the Federal Energy Regulatory Commission (FERC) and with customers to advance all outstanding rate proceedings. Discussions continue on the Section 4 rate case previously initiated for the Texas Eastern system, with the expectation of having a negotiated settlement in place before the end of the year. Enbridge is nearing an agreement in principle with customers on a Section 5 settlement on the East Tennessee system resulting in an immaterial revenue reduction. A Section 4 rate case proceeding is planned for the first half of next year on this system. The Company is also preparing to enter into early stage rate discussions with customers on the Algonquin system in the coming months. FERC's 501-G processes on all of the Company's other pipelines have been closed out or settled with no material impact to revenue.
FINANCING UPDATE
In 2018 the Company reached agreements to sell over $7.8 billion of non-core assets. The Company has now received proceeds from asset sales of approximately $5.7 billion, with the balance expected by mid-2019. These proceeds have provided the Company with significant additional financial flexibility to further strengthen the balance sheet and fund the secured growth program. As of March 31, 2019, the Company's consolidated Debt to EBITDA ratio was 4.7x on a trailing twelve month basis. This is in line with its updated long term target credit metric range of 4.5x to comfortably below 5.0x Debt to EBITDA.
The sponsored vehicle buy-ins completed in the fourth quarter of 2018 have also provided an opportunity to simplify the Company's debt financing structure and strategy. Actions subsequently taken include:
The Company believes that these changes to its debt funding structure and financing strategy have substantially reduced structural subordination, will further enhance the credit profile of the consolidated Enbridge group and will reduce its cost of capital over the longer term.
On January 25, 2019, Moody's Investors Service announced that it had upgraded Enbridge Inc.'s senior unsecured debt rating to Baa2 with a positive outlook. Each of Standard & Poor's, Fitch and DBRS have recently reaffirmed Enbridge Inc.'s senior unsecured debt rating at BBB+, BBB+ and BBB High, respectively.
Given the progress on leverage reduction, the Company announced in the fourth quarter of 2018 that it would suspend its DRIP effective with the dividend payment on December 1, 2018, which was earlier than originally contemplated. With this action, the Company has now moved to a fully self-funded financing model and will no longer require external equity to support its growth program going forward.
EXECUTIVE LEADERSHIP CHANGES
Today Enbridge announced the following executive leadership changes, effective June 1, 2019. Colin Gruending is appointed Executive Vice President & Chief Financial Officer. In this role Colin will have accountability for Enbridge's finance and accounting functions inclusive of: Corporate Accounting, Financial Planning and Analysis, Treasury, Tax, Risk and Insurance, Audit and Investor Relations. Colin most recently held the position of Senior Vice President, Corporate Development & Investment Review. During his 20+ years with Enbridge, Colin has held a series of senior finance and accounting leadership positions. Colin has a Bachelor of Commerce, is a Chartered Professional Accountant and a Chartered Financial Analyst.
John Whelen is appointed Executive Vice President & Chief Development Officer. In this role, he will be responsible for Corporate Development, Strategic Planning and Investment Review. In addition, he will provide executive oversight of our Renewable Power Generation & Transmission and Energy Services business units. John most recently held the position of Executive Vice President & Chief Financial Officer since 2014. During his 26+ years with Enbridge, John has held a series of executive positions in both finance and corporate development. John has a Master of Business Administration and a Bachelor of Science (Economics).
Vern Yu is appointed President & Chief Operating Officer, Liquids Pipelines and will report to Guy Jarvis, Executive Vice President, Liquids Pipelines. In this role, Vern will be accountable for Operations (US and Canada), Engineering and Asset Management, and Pipeline Control of the Liquid Pipelines business unit. Prior to this role, Vern was Executive Vice President & Chief Development Officer. During his 25+ year tenure with Enbridge Vern has held executive roles in finance and corporate development as well as leading the business and market development activities for Liquids Pipelines. Vern has a Master of Business Administration, Bachelor of Applied Science (Engineering) and is a Professional Engineer.
These key internal appointments reinforce the effectiveness of executive succession and highlights Enbridge's approach to developing and progressing internal talent.
FIRST QUARTER 2019 FINANCIAL RESULTS
The following table summarizes the Company's GAAP reported results for segment EBITDA, earnings attributable to common shareholders, and cash provided by operating activities for the first quarter of 2019.
GAAP SEGMENT EBITDA AND CASH FLOW FROM OPERATIONS
Three months ended | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
Liquids Pipelines | 2,072 | 1,156 |
Gas Transmission and Midstream | 1,020 | 126 |
Gas Distribution | 662 | 636 |
Renewable Power Generation and Transmission | 124 | 109 |
Energy Services | 6 | 169 |
Eliminations and Other | 248 | (279) |
EBITDA | 4,132 | 1,917 |
Earnings attributable to common shareholders | 1,891 | 445 |
Cash provided by operating activities | 2,176 | 3,194 |
For purposes of evaluating performance, the Company makes adjustments for unusual, non-recurring or non-operating factors to GAAP reported earnings, segment EBITDA, and cash flow provided by operating activities, which allow Management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of the underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per common share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
DISTRIBUTABLE CASH FLOW
Three months ended | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||
Liquids Pipelines | 1,729 | 1,627 |
Gas Transmission and Midstream | 1,040 | 1,046 |
Gas Distribution | 693 | 646 |
Renewable Power Generation and Transmission | 123 | 139 |
Energy Services | 176 | 22 |
Eliminations and Other | 8 | (74) |
Adjusted EBITDA1,3 | 3,769 | 3,406 |
Maintenance capital | (179) | (165) |
Interest expense1 | (684) | (652) |
Current income tax1 | (158) | (75) |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (46) | (293) |
Cash distributions in excess of equity earnings1 | 94 | 63 |
Preference share dividends | (95) | (87) |
Other receipts of cash not recognized in revenue2 | 53 | 76 |
Other non-cash adjustments | 4 | 39 |
DCF3 | 2,758 | 2,312 |
Weighted average common shares outstanding | 2,016 | 1,685 |
1 | Presented net of adjusting items. |
2 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
3 | Schedules reconciling adjusted EBITDA and DCF are available as an Appendix to this news release. |
First quarter 2019 DCF increased by $446 million compared to the same period in 2018. The key drivers of quarter-over-quarter growth are summarized below:
Partially offsetting the DCF growth drivers noted above were:
ADJUSTED EARNINGS | Three months | |
2019 | 2018 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||
Adjusted EBITDA2 | 3,769 | 3,406 |
Depreciation and amortization | (840) | (824) |
Interest expense1 | (668) | (622) |
Income taxes1 | (488) | (256) |
Noncontrolling interests and redeemable noncontrolling interests1 | (38) | (240) |
Preference share dividends | (95) | (89) |
Adjusted earnings2 | 1,640 | 1,375 |
Adjusted earnings per common share | 0.81 | 0.82 |
1 | Presented net of adjusting items. |
2 | Schedules reconciling adjusted EBITDA and adjusted earnings are available as an Appendix to this news release. |
Adjusted earnings increased by $265 million for the first quarter of 2019 compared to the same period in 2018. Growth in adjusted earnings was driven by the same factors impacting business performance and adjusted EBITDA as discussed under Distributable Cash Flow above. Other notable quarter-over-quarter drivers were:
Partially offsetting the adjusted earnings growth drivers noted above:
Adjusted earnings per share for the first quarter of 2019 decreased by $0.01 compared with the first quarter of 2018. The increase in adjusted earnings noted above, was offset on a per share basis by the issuance of approximately 297 million common shares to acquire, in separate transactions, all of the outstanding equity securities of its sponsored vehicles not beneficially owned by Enbridge during the fourth quarter of 2018.
ADJUSTED EBITDA BY SEGMENTS
Adjusted EBITDA by segment is reported on a Canadian dollar basis. Adjusted EBITDA generated from United States dollar denominated businesses were translated at stronger average Canadian dollar exchange rates in the first quarter of 2019 (C$1.33/$US) when compared to the corresponding 2018 period (C$1.26/$US). A portion of the United States dollar earnings are hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
LIQUIDS PIPELINES
Three months ended | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
Mainline System1 | 964 | 942 |
Regional Oil Sands System | 227 | 222 |
Gulf Coast and Mid-Continent System | 216 | 178 |
Other2 | 322 | 285 |
Adjusted EBITDA3 | 1,729 | 1,627 |
Operating Data (average deliveries – thousands of bpd) | ||
Mainline System - ex-Gretna volume4 | 2,717 | 2,625 |
Regional Oil Sands System5 | 1,751 | 1,629 |
International Joint Tariff (IJT)6 | $4.15 | $4.07 |
1 | Mainline System includes the Canadian Mainline and the Lakehead System, which were previously reported separately. |
2 | Included within Other are Southern Lights Pipeline, Express-Platte System, Bakken System and Feeder Pipelines & Other. |
3 | Schedules reconciling adjusted EBITDA are provided in the Appendices to this news release. |
4 | Mainline System throughput volume represents mainline system deliveries ex-Gretna, Manitoba which is made up of United States and eastern Canada deliveries originating from western Canada. |
5 | Volumes are for the Athabasca mainline, Athabasca Twin, Waupisoo Pipeline and Woodland Pipeline and exclude laterals on the Regional Oil Sands System. |
6 | The IJT benchmark toll and its components are set in United States dollars and the majority of the Company's foreign exchange risk on the Canadian portion of the Mainline is hedged. The Canadian portion of the Mainline represents approximately 45% of total Mainline System revenue and the average effective FX rate for the Canadian portion of the Mainline during the first quarter of 2019 was US$1.19 (Q1 2018: US$1.25). |
The US portion of the Mainline System is subject to FX translation similar to the Company's other US based businesses, which are translated at the average spot rate for a given period. A portion of this US dollar translation exposure is hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other. |
Liquids Pipelines adjusted EBITDA increased by $102 million for the first quarter of 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
GAS TRANSMISSION AND MIDSTREAM
Three months ended | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
US Gas Transmission | 718 | 650 |
Canadian Gas Transmission1 | 215 | 281 |
US Midstream | 52 | 82 |
Other | 55 | 33 |
Adjusted EBITDA2 | 1,040 | 1,046 |
1 | Canadian Gas Transmission includes Alliance Pipeline, which was previously reported separately. |
2 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Gas Transmission and Midstream adjusted EBITDA decreased by $6 million for the first quarter of 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
GAS DISTRIBUTION
Three months ended | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
Enbridge Gas Inc. (EGI) | 642 | 573 |
Other | 51 | 73 |
Adjusted EBITDA1 | 693 | 646 |
Operating Data | ||
EGI | ||
Volumes (billions of cubic feet) | 719 | 669 |
Number of active customers (thousands)2 | 3,722 | 3,677 |
Heating degree days3 | ||
Actual | 2,046 | 1,900 |
Forecast based on normal weather4 | 1,922 | 1,920 |
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
2 | Number of active customers at the end of the reported period. |
3 | Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in EGI's distribution franchise areas. |
4 | As per OEB approved methodology used in setting rates. |
Enbridge Gas Distribution (EGD) and Union Gas (UG) were amalgamated on January 1, 2019. The amalgamated company has been renamed Enbridge Gas Inc. (EGI). Post amalgamation the financial results of EGI reflect the combined performance of the two legacy utility operations.
Gas Distribution adjusted EBITDA will typically follow a seasonal profile. It is generally highest in the first and fourth quarters of the year reflecting greater volumetric usage during the heating season, and lowest in the third quarter as there is generally less volumetric usage during the summer. The magnitude of the seasonal EBITDA fluctuations will vary from year-to-year reflecting the impact of colder or warmer than normal weather on distribution volumes in a given quarter.
Gas Distribution adjusted EBITDA increased by $47 million for the first quarter 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
RENEWABLE POWER GENERATION AND TRANSMISSION
Three months | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted EBITDA1 | 123 | 139 |
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Renewable Power Generation and Transmission adjusted EBITDA decreased by $16 million for the first quarter of 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
ENERGY SERVICES
Three months ended | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted EBITDA1 | 176 | 22 |
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Energy Services adjusted EBITDA increased by $154 million for the first quarter of 2019 when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
ELIMINATIONS AND OTHER
Three months | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
Operating and administrative | 63 | (32) |
Realized foreign exchange hedge settlements | (55) | (42) |
Adjusted earnings/(loss) before interest, income taxes, | ||
and depreciation and amortization1 | 8 | (74) |
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Operating and administrative costs captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) net of amounts recovered from business units for the provision of those services. Also, as previously noted, US dollar denominated earnings within the segment results are translated at average foreign exchange rates during the quarter. The offsetting impact of settlements made under the Company's enterprise foreign exchange hedging program is captured in this segment.
Eliminations and Other adjusted EBITDA increased by $82 million for the first quarter of 2019, when compared to the same period in 2018. The key quarter-over-quarter performance drivers are summarized below:
CONFERENCE CALL
Enbridge will host a conference call and webcast on May 10, 2019 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to provide an enterprise wide business update and review 2019 first quarter financial results. Analysts, members of the media and other interested parties can access the call toll free at (877) 930-8043 or within and outside North America at (253) 336-7522 using the access code of 4987355#. The call will be audio webcast live at https://edge.media-server.com/m6/p/u7by2zc5. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available for seven days after the call toll-free (855) 859-2056 or within and outside North America at (404) 537-3406 (access code 4987355#).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected DCF or DCF per share; expected future cash flows; expected performance of the Company's businesses; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected credit metrics and debt to EBITDA levels; expected cost of capital and costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected equity funding requirements for our commercially secured growth program; our United States Line 3 Replacement Program; expected future growth and expansion opportunities; expectations about the Company's joint venture partners' ability to complete and finance projects under construction; expected closing of acquisitions and dispositions and the timing thereof; expected future actions of regulators; expectations regarding commodity prices; supply forecasts; expectations regarding the impact of the stock-for-stock merger transaction between Enbridge and Spectra Energy Corp (the Merger Transaction) including the combined Company's scale, financial flexibility, growth program, future business prospects and performance and streamlining opportunities; the transactions undertaken to simplify our corporate structure; plans to launch a binding open season for the Liquids Mainline System; toll and rate case discussions and filings; dividend growth and dividend payout expectation; and expectations resulting from the successful execution of our 2018-2020 Strategic Plan.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the timing and closing of dispositions; the realization of anticipated benefits and synergies of the Merger Transaction; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of our dividend policy on the Company's future cash flows; credit ratings; capital project funding; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the impact of the Merger Transaction on the Company, expected EBITDA, expected adjusted EBITDA, earnings/(loss), expected adjusted earnings/(loss) and associated per share amounts, or estimated future dividends. The most relevant assumptions associated with forward-looking statements regarding announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the realization of anticipated benefits and synergies of the Merger Transaction, operating performance, regulatory parameters, changes in regulations applicable to our business, acquisitions and dispositions, the transactions undertaken to simplify our corporate structure, our dividend policy, project approval and support, renewals of rights of way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
ABOUT ENBRIDGE INC.
Enbridge Inc. (the Company) is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,750 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise part of this news release.
FOR FURTHER INFORMATION PLEASE CONTACT: | |
Enbridge Inc. – Media | Enbridge Inc. – Investment Community |
Jesse Semko | Jonathan Gould |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com |
DIVIDEND DECLARATION
On April 23, 2019, our Board of Directors declared the following quarterly dividends. All dividends are payable on June 1, 2019, to shareholders of record on May 15, 2019.
Dividend per | |
Common Shares | $0.73800 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C1 | $0.25395 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P2 | $0.27369 |
Preference Shares, Series R | $0.25000 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 3 | $0.25000 |
Preference Shares, Series 53 | US$0.33596 |
Preference Shares, Series 74 | $0.27806 |
Preference Shares, Series 9 | $0.27500 |
Preference Shares, Series 11 | $0.27500 |
Preference Shares, Series 13 | $0.27500 |
Preference Shares, Series 15 | $0.27500 |
Preference Shares, Series 17 | $0.32188 |
Preference Shares, Series 19 | $0.30625 |
1 | The quarterly dividend per share paid on Series C was decreased to $0.25395 from $0.25459 on March 1, 2019, due to reset on a quarterly basis following the date of issuance of the Series C Preference Shares. |
2 | The quarterly dividend per share paid on Series P was increased to $0.27369 from $0.25000 on March 1, 2019, due to reset of the annual dividend on March 1, 2019, and every five years thereafter. |
3 | The quarterly dividend per share paid on Series 5 was increased to US$0.33596 from US$0.27500 on March 1, 2019, due to reset of the annual dividend on March 1, 2019, and every five years thereafter. |
4 | The quarterly dividend per share paid on Series 7 was increased to $0.27806 from $0.27500 on March 1, 2019, due to reset of the annual dividend on March 1, 2019, and every five years thereafter. |
NON-GAAP RECONCILIATIONS APPENDICES
This news release contains references to adjusted EBITDA, adjusted earnings, adjusted earnings per common share, and DCF. Management believes the presentation of these metrics gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Adjusted EBITDA represents EBITDA adjusted for unusual, non-recurring or non-operating factors on both a consolidated and segmented basis. Management uses adjusted EBITDA to set targets and to assess the performance of the Company and its Business Units.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, non-recurring or non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, non-recurring or non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes, noncontrolling interests and redeemable noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another measure of the Company's ability to generate earnings.
DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests and redeemable noncontrolling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
Reconciliations of forward looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly certain contingent liabilities, and non-cash unrealized derivative fair value losses and gains which are subject to market variability. Because of those challenges, a reconciliation of forward looking non-GAAP financial measures is not available without unreasonable effort.
Our non-GAAP measures described above are not measures that have standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers.
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON-GAAP RECONCILIATIONS – ADJUSTED EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
Three months ended | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
Liquids Pipelines | 2,072 | 1,156 |
Gas Transmission and Midstream | 1,020 | 126 |
Gas Distribution | 662 | 636 |
Renewable Power Generation and Transmission | 124 | 109 |
Energy Services | 6 | 169 |
Eliminations and Other | 248 | (279) |
EBITDA | 4,132 | 1,917 |
Depreciation and amortization | (840) | (824) |
Interest expense | (685) | (656) |
Income tax (expense)/recovery | (584) | 73 |
(Earnings)/loss attributable to noncontrolling interests and redeemable | ||
noncontrolling interests | (37) | 24 |
Preference share dividends | (95) | (89) |
Earnings attributable to common shareholders | 1,891 | 445 |
ADJUSTED EBITDA TO ADJUSTED EARNINGS
Three months ended | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||
Liquids Pipelines | 1,729 | 1,627 |
Gas Transmission and Midstream | 1,040 | 1,046 |
Gas Distribution | 693 | 646 |
Renewable Power Generation and Transmission | 123 | 139 |
Energy Services | 176 | 22 |
Eliminations and Other | 8 | (74) |
Adjusted EBITDA | 3,769 | 3,406 |
Depreciation and amortization | (840) | (824) |
Interest expense | (668) | (622) |
Income taxes | (488) | (256) |
Noncontrolling interests and redeemable noncontrolling interests | (38) | (240) |
Preference share dividends | (95) | (89) |
Adjusted earnings | 1,640 | 1,375 |
Adjusted earnings per common share | 0.81 | 0.82 |
EBITDA TO ADJUSTED EARNINGS
Three months | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||
EBITDA | 4,132 | 1,917 |
Adjusting items: | ||
Change in unrealized derivative fair value (gain)/loss | (436) | 277 |
Asset write-down loss | — | 1,057 |
Employee severance, transition and transformation costs | 44 | 97 |
Equity investment asset impairment | — | 33 |
Other | 29 | 25 |
Total adjusting items | (363) | 1,489 |
Adjusted EBITDA | 3,769 | 3,406 |
Depreciation and amortization | (840) | (824) |
Interest expense | (685) | (656) |
Income tax (expense)/recovery | (584) | 73 |
(Earnings)/loss attributable to noncontrolling interests and redeemable | ||
noncontrolling interests | (37) | 24 |
Preference share dividends | (95) | (89) |
Adjusting items in respect of: | ||
Interest expense | 17 | 34 |
Income taxes | 96 | (329) |
Noncontrolling interests and redeemable noncontrolling interests | (1) | (264) |
Adjusted earnings | 1,640 | 1,375 |
Adjusted earnings per common share | 0.81 | 0.82 |
APPENDIX B
NON-GAAP RECONCILIATION – SEGMENTED EBITDA TO ADJUSTED EBITDA
LIQUIDS PIPELINES
Three months ended | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted EBITDA | 1,729 | 1,627 |
Change in unrealized derivative fair value gain/(loss) | 343 | (298) |
Asset write-down loss - asset held for sale | — | (144) |
Employee severance, transition and transformation costs | — | (26) |
Other | — | (3) |
Total adjustments | 343 | (471) |
EBITDA | 2,072 | 1,156 |
GAS TRANSMISSION AND MIDSTREAM
Three months ended | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted EBITDA | 1,040 | 1,046 |
Change in unrealized derivative fair value gain | — | 6 |
Asset write-down loss - US Midstream | — | (913) |
Employee severance, transition and transformation costs | — | (7) |
Other | (20) | (6) |
Total adjustments | (20) | (920) |
EBITDA | 1,020 | 126 |
GAS DISTRIBUTION
Three months | ||
2019 | 2018 | |
(unaudited; millions of Canadian dollars) | ||
Adjusted EBITDA | 693 | 646 |
Change in unrealized derivative fair value gain | 4 | 1 |
Noverco Inc. equity earnings adjustment | — | (9) |
Employee severance, transition and transformation costs | (35) | (2) |
Total adjustments | (31) | (10) |
EBITDA | 662 | 636 |
RENEWABLE POWER GENERATION AND TRANSMISSION
Three months ended | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted EBITDA | 123 | 139 |
Change in unrealized derivative fair value gain | 1 | 3 |
Equity investment asset impairment | — | (33) |
Total adjustments | 1 | (30) |
EBITDA | 124 | 109 |
ENERGY SERVICES
Three months | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted EBITDA | 176 | 22 |
Change in unrealized derivative fair value gain/(loss) | (164) | 147 |
Write-down of inventory to the lower of cost or market | (6) | — |
Total adjustments | (170) | 147 |
EBITDA | 6 | 169 |
ELIMINATIONS AND OTHER
Three months ended | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
Adjusted earnings/(loss) before interest, income taxes, and depreciation and | ||
amortization | 8 | (74) |
Change in unrealized derivative fair value gain/(loss) | 252 | (136) |
Employee severance, transition and transformation costs | (9) | (62) |
Other | (3) | (7) |
Total adjustments | 240 | (205) |
Earnings/(loss) before interest, income taxes, and depreciation and | ||
amortization | 248 | (279) |
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING ACTIVITIES TO DCF
Three months ended | ||
2019 | 2018 | |
(unaudited, millions of Canadian dollars) | ||
Cash provided by operating activities | 2,176 | 3,194 |
Adjusted for changes in operating assets and liabilities1 | 667 | (622) |
2,843 | 2,572 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (46) | (293) |
Preference share dividends | (95) | (87) |
Maintenance capital expenditures2 | (179) | (165) |
Significant adjusting items: | ||
Other receipts of cash not recognized in revenue3 | 53 | 76 |
Employee severance, transition and transformation costs | 44 | 132 |
Distributions from equity investments in excess of cumulative earnings4 | 61 | 57 |
Other items | 77 | 20 |
DCF | 2,758 | 2,312 |
1 | Changes in operating assets and liabilities, net of recoveries. |
2 | Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing pipeline system or that are necessary to maintain the service capability of the existing assets (including the replacement of components that are worn, obsolete or completing their useful lives). For the purpose of DCF, maintenance capital excludes expenditures that extend asset useful lives, increase capacities from existing levels or reduce costs to enhance revenues or provide enhancements to the service capability of the existing assets. |
3 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
4 | Presented net of adjusting items. |
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-reports-strong-first-quarter-2019-results-300847894.html
SOURCE Enbridge Inc.
Article Date
5/10/2019Enbridge Inc. Announces Election of Directors
Source: PR Newswire
CALGARY, May 8, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) held its Annual Meeting of Shareholders today. On a vote by ballot during the regular business proceedings at the Meeting, shareholders approved the election of all 11 nominated directors proposed by management as listed in the Proxy Statement dated March 4, 2019. The candidacy of Michael Phelps was withdrawn due to his passing on April 20, 2019. The detailed results of the vote for the election of directors are set out below.
Votes For | Votes Withheld | ||||||
# | % | # | % | ||||
Pamela L. Carter | 989,827,674 | 93.80 | 65,417,105 | 6.20 | |||
Marcel R. Coutu | 927,127,374 | 87.86 | 128,117,406 | 12.14 | |||
Susan M. Cunningham | 1,019,121,651 | 96.58 | 36,123,029 | 3.42 | |||
Gregory L. Ebel | 934,784,290 | 88.58 | 120,460,460 | 11.42 | |||
J. Herb England | 1,021,936,848 | 96.84 | 33,307,932 | 3.16 | |||
Charles W. Fischer | 1,042,684,312 | 98.81 | 12,560,467 | 1.19 | |||
V. Maureen Kempston Darkes | 1,017,852,119 | 96.46 | 37,392,657 | 3.54 | |||
Teresa S. Madden | 1,044,466,466 | 98.98 | 10,778,312 | 1.02 | |||
Al Monaco | 1,043,169,386 | 98.86 | 12,075,395 | 1.14 | |||
Dan C. Tutcher | 1,039,987,266 | 98.55 | 15,257,513 | 1.45 | |||
Catherine L. Williams | 1,013,397,232 | 96.03 | 41,847,550 | 3.97 | |||
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers in excess of 3 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-announces-election-of-directors-300846819.html
SOURCE Enbridge Inc.
Article Date
5/8/2019Enbridge Provides Notice of Series R Preferred Shares Conversion Right and Announces Reset Dividend Rates
Source: PR Newswire
CALGARY, May 2, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series R (Series R Shares) (TSX: ENB.PR.T) on June 1, 2019. As a result, subject to certain conditions, the holders of the Series R Shares have the right to convert all or part of their Series R Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series S of Enbridge (Series S Shares) on June 1, 2019. Holders who do not exercise their right to convert their Series R Shares into Series S Shares will retain their Series R Shares.
The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series R Shares outstanding after June 1, 2019, then all remaining Series R Shares will automatically be converted into Series S Shares on a one-for-one basis on June 1, 2019; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series S Shares outstanding after June 1, 2019, no Series R Shares will be converted into Series S Shares. There are currently 16,000,000 Series R Shares outstanding.
With respect to any Series R Shares that remain outstanding after June 1, 2019, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series R Shares for the five-year period commencing on June 1, 2019 to, but excluding, June 1, 2024 will be 4.073 percent, being equal to the five-year Government of Canada bond yield of 1.573 percent determined as of today plus 2.50 percent in accordance with the terms of the Series R Shares.
With respect to any Series S Shares that may be issued on June 1, 2019, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series S Shares for the three-month floating rate period commencing on June 1, 2019 to, but excluding, September 1, 2019 will be 1.05107 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 1.67 percent plus 2.50 percent in accordance with the terms of the Series S Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.
Beneficial holders of Series R Shares who wish to exercise their right of conversion during the conversion period, which runs from May 2, 2019 until 5:00 p.m. (EST) on May 17, 2019, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.
Forward-Looking Statements
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge, including statements with respect to the conversion of all or part of the Series R Shares into Series S Shares on June 1, 2019, the annual dividend rate that will apply to any outstanding Series R Shares on June 1, 2019, the quarterly dividend rate that will apply to any Series S Shares on June 1, 2019, and the declaration of dividends by the Board of Directors of Enbridge. This information may not be appropriate for other purposes. Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and on processes used to prepare the information, such statements are not guarantees of future events and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual events to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about whether holders of Series R Shares will exercise their right to convert their Series R Shares into Series S Shares.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers in excess of 3 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-provides-notice-of-series-r-preferred-shares-conversion-right-and-announces-reset-dividend-rates-300843282.html
SOURCE Enbridge Inc.
Article Date
5/2/2019Enbridge Announces Passing of Board Member Michael E.J. Phelps
Source: PR Newswire
CALGARY, April 25, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) announced that Michael E.J. Phelps, a member of its Board of Directors, passed away Saturday, April 20, 2019.
"Michael was a valued member of the Board, colleague and friend, and we are deeply saddened by the news of his passing," said Al Monaco, Enbridge President and CEO. "On behalf of Enbridge and the entire team, we extend our deepest sympathies and condolences to Michael's family."
A member of Enbridge's Board of Directors since February 2017, Mr. Phelps also served on the Board's Corporate Social Responsibility, Governance, and Human Resources and Compensation committees. From 1988 to 2002, he served as President and Chief Executive Officer, and subsequently as Chairman and Chief Executive Officer, of Westcoast Energy Inc. In 2001, he was appointed as an Officer of the Order of Canada. In 2003, the Canadian government appointed him as Chairman of the Wise Persons' Committee, a panel developed to review Canada's system of securities regulation.
"The passing of Michael E.J. Phelps is a great loss for the Enbridge Board and the energy industry," said Greg Ebel, Chairman of Enbridge's Board of Directors. "Michael was an icon in the energy industry, having served for many decades in numerous leadership roles in its upstream, midstream, downstream and retail segments.
"He was ever vigilant about the industry and the company's standing in the communities and was a proud supporter of the thousands of employees he worked beside. Michael was also looked to by governments of all stripes as a source of counsel on energy policy and always remained focused on delivering returns for investors. He will be greatly missed, both professionally and personally, by us all.
"On behalf of the Enbridge Board, we wish to offer our sincere thoughts and condolences to his family and friends."
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers in excess of 3 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-passing-of-board-member-michael-ej-phelps-300838421.html
SOURCE Enbridge Inc.
Article Date
4/25/20194/23/2019 - Enbridge Declares Quarterly Dividends
Enbridge Declares Quarterly Dividends
Source: PR Newswire
CALGARY, April 23, 2019 /PRNewswire/ - The Board of Directors for Enbridge Inc. (TSX, NYSE: ENB) has declared a quarterly dividend of $0.73800 per common share, payable on June 1, 2019 to shareholders of record on May 15, 2019. The amount of the dividend is consistent with the March 1, 2019 dividend.
The Board also declared the following quarterly dividends for Enbridge Inc. Preferred Shares. All dividends are payable on June 1, 2019 to shareholders of record on May 15, 2019.
Common Shares | $0.73800 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C | $0.25395 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P | $0.27369 |
Preference Shares, Series R | $0.25000 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 3 | $0.25000 |
Preference Shares, Series 5 | US$0.33596 |
Preference Shares, Series 7 | $0.27806 |
Preference Shares, Series 9 | $0.27500 |
Preference Shares, Series 11 | $0.27500 |
Preference Shares, Series 13 | $0.27500 |
Preference Shares, Series 15 | $0.27500 |
Preference Shares, Series 17 | $0.321875 |
Preference Shares, Series 19 | $0.30625 |
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers in excess of 3 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-declares-quarterly-dividends-300836940.html
SOURCE Enbridge Inc.
Article Date
4/23/2019Enbridge Inc. to Host Webcast to Discuss 2019 First Quarter Results on May 10
Source: PR Newswire
CALGARY, April 17, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) will host a conference call and webcast to provide an enterprise-wide business update and review 2019 first quarter results on May 10, 2019 at 7:00 a.m. MT (9:00 a.m. ET).
Enbridge will announce first quarter results before markets open on May 10, 2019.
2019 First Quarter Earnings Webcast and Conference Call
When: Friday, May 10, 2019
7:00 a.m. MT (9:00 a.m. ET)
Webcast: Sign-up
Call: Dial-in # (Audio only – please dial in 10 minutes ahead):
North America Toll Free: 1 (877) 930-8043
Outside North America: 1 (253) 336-7522
Participant Passcode: 4987355
A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the company website within approximately 24 hours.
Replay: Audio Replay # (Available for 7 days after call):
North America Toll Free: 1 (855) 859-2056
Outside North America: 1 (404) 537-3406
Replay Passcode: 4987355
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers in excess of 3 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-to-host-webcast-to-discuss-2019-first-quarter-results-on-may-10-300834201.html
SOURCE Enbridge Inc.
Article Date
4/17/2019Enbridge Inc. to Hold Annual Meeting of Shareholders on May 8, 2019
Source: PR Newswire
CALGARY, April 17, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) will hold its Annual Meeting of Shareholders in Calgary, Alberta on Wednesday, May 8, 2019.
Annual Meeting of Shareholders
When: Wednesday, May 8, 2019
1:30 p.m. MT (3:30 p.m. ET)
Where: Calgary Marriott Downtown Hotel
110-9th Avenue S.E., Kensington Room
Calgary, Alberta
Live audio webcast: Click here
A webcast replay will be available on the Company's website approximately two hours following the event. An mp3 and transcript will be posted to the website shortly thereafter.
Members of the media attending in person are asked to register in advance by contacting the Enbridge Media Line at 888-992-0997 or media@enbridge.com.
For additional information on the Annual Meeting of Shareholders, including voting and attendance procedures please refer to enbridge.com/agminfo.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers in excess of 3 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-to-hold-annual-meeting-of-shareholders-on-may-8-2019-300834108.html
SOURCE Enbridge Inc.
Article Date
4/17/20193/28/2019 - Enbridge Responds to Michigan Attorney General's Opinion and Governor's Executive Directive
Enbridge Responds to Michigan Attorney General's Opinion and Governor's Executive Directive
Source: PR Newswire
CALGARY, March 28, 2019 /PRNewswire/ - After reviewing the statement issued by Michigan Attorney General Nessel and Governor Whitmer's executive directive, Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) is surprised and disappointed they have taken this position with respect to the legislation when the Straits tunnel project will further enhance the safety and reliability of a critical piece of infrastructure that supports the State, its communities and the environment.
We intend to seek clarification from the Administration on a path forward. Line 5 will continue to safely operate, as it has for more than 60 years. Numerous independent reviews have concluded that the line is safe.
"Enbridge worked in good faith with the Michigan government on the tunnel project," said Enbridge Chief Legal Officer Bob Rooney. "We disagree with the Attorney General's opinion and continue to believe in the benefits of the tunnel."
The benefits of a tunnel under the Straits of Mackinac include:
Enbridge is committed to protecting the waters of the Great Lakes while ensuring families, manufacturers and other businesses safely receive the energy transported through Line 5. We are deeply committed to being part of Michigan's future – protecting communities and the environment while safely meeting Michigan's energy needs.
Forward Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included in this news release include, but are not limited to, statements with respect to the status, operations and benefits of Line 5 and the Straits tunnel project and expected plans or actions with regards thereto.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions, risks and uncertainties include regulatory parameters and changes in regulations applicable to our business; customer and regulatory approvals and support for the Company's projects; governmental legislation and political decisions; operational reliability and performance; and other factors, including, but not limited to those risks and uncertainties discussed in the Company's filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers in excess of 3 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT: | |
Media | Investment Community |
Michael Barnes | Jonathan Gould |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com | |
View original content:http://www.prnewswire.com/news-releases/enbridge-responds-to-michigan-attorney-generals-opinion-and-governors-executive-directive-300820776.html
SOURCE Enbridge Inc.
Article Date
3/28/2019State of Minnesota Provides Permitting Timeline for Line 3 Replacement Project
Source: PR Newswire
CALGARY, March 1, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced that the State of Minnesota (the "State") has today provided Enbridge the permitting timeline for its agencies' remaining environmental permits for the Line 3 Replacement Project.
The permitting timeline indicates that the certifications on all remaining State permits required for the construction of Line 3 will be provided by this November. Enbridge anticipates that the remaining Federal permits will be finalized approximately 30 to 60 days thereafter.
"We now have a firm schedule from the State on the timing of the remaining permits for our Line 3 Replacement project," said Al Monaco, President and Chief Executive Officer of Enbridge. "We support a robust and transparent permitting process that includes opportunity for public input. We'll continue to work closely with State officials during this process."
This new permitting schedule updates the Company's prior expectation for the receipt of final State permits in the second quarter of 2019, which underpinned an expected in-service date before the end of this year. In light of this permitting timeline, the Company is developing a revised construction schedule for the Line 3 Replacement Project, but now expects an in-service date during the second half of 2020. More specific timing on the in-service date, as well as any potential impacts on the 2020 financial outlook, will be provided once the revised construction schedule is finalized. The Company's 2019 distributable cash flow guidance range of $4.30 to $4.60/share remains unchanged as a result of this permitting schedule.
"We appreciate the State's ongoing efforts in this regard and will continue to work with the State agencies and the Administration to ensure that this critical safety-driven project is completed in a timely manner. We also want to thank all stakeholders, including resident Tribes in Minnesota, various labour groups, local landowners, and the many counties and municipalities along the right of way for their continued support."
Background
The $9 billion Line 3 Replacement Project is a critical integrity replacement project that will enhance the safety and reliability of the Enbridge Liquids Mainline System. The project has received overwhelming support from stakeholders in Minnesota.
The Minnesota Public Utilities Commission approved the Certificate of Need and Route Permit in June 2018 and unanimously denied petitions to reconsider the decisions. In addition, agreement was reached with the Fond du Lac Band of Lake Superior Chippewa granting a new 20-year easement for the entire Mainline including the Line 3 Replacement Project through their Reservation.
In October 2018, Enbridge submitted all permit applications to the various federal and State agencies, including the U.S. Army Corps of Engineers, the Minnesota Department of Natural Resources, the Minnesota Pollution Control Agency and other local government agencies in Minnesota.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers in excess of 3 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Tracie Kenyon
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/state-of-minnesota-provides-permitting-timeline-for-line-3-replacement-project-300805367.html
SOURCE Enbridge Inc.
Article Date
3/2/2019Enbridge Files 2018 Year End Disclosure Documents
Source: PR Newswire
CALGARY, Feb. 15, 2019 /PRNewswire/ - Enbridge Inc. (TSX:ENB) (NYSE:ENB) has filed its Form 10-K for the year ended December 31, 2018, with the United States Securities and Exchange Commission. Enbridge has also filed its audited Consolidated Financial Statements and related Management's Discussion and Analysis for the year ended December 31, 2018, with Canadian securities regulatory authorities.
Copies of these documents are available electronically at www.sec.gov (U.S. filings) or www.sedar.com (Canadian filings) or the Company's website at http://www.enbridge.com/investment-center/reports-and-sec-filings/sec-filings and http://www.enbridge.com/investment-center/reports-and-sec-filings/investor-documents-and-filings. Printed copies of the Consolidated Financial Statements and Management's Discussion and Analysis are available on request by calling 1-800-481-2804 or writing the Company's Investor Relations department at:
Enbridge Inc.
Investor Relations
Suite 200, 425 - 1st Street S.W.
Calgary, Alberta, Canada T2P 3L8
Enbridge's Notice of Annual Meeting and Proxy Statement are expected to be mailed to Enbridge common shareholders at the end of March. Enbridge's Annual Meeting of Shareholders will be held at 1:30 p.m. (MDT) on Wednesday, May 8, 2019, in the Kensington Room, Calgary Marriott Downtown Hotel, 110-9th Avenue SE, Calgary. A live audio webcast of the meeting will be available at www.enbridge.com.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers in excess of 3 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-files-2018-year-end-disclosure-documents-300796519.html
SOURCE Enbridge Inc.
Article Date
2/15/20192/15/2019 - Enbridge Appoints New Directors to its Board
Enbridge Appoints New Directors to its Board
Source: PR Newswire
CALGARY, Feb. 15, 2019 /PRNewswire/ - Enbridge Inc. (TSX:ENB) (NYSE:ENB) is pleased to announce that its Board of Directors has appointed Teresa S. Madden and Susan M. Cunningham as Directors of Enbridge.
Ms. Madden has more than 30 years of power and utility industry experience, most recently as the former Executive Vice President and Chief Financial Officer of Xcel Energy, Inc., an electric and natural gas utility. She brings extensive industry, business and financial experience to the Board. Ms. Madden is currently a director of Peabody Energy Corporation.
Ms. Cunningham has more than 35 years of oil and gas industry experience in various executive leadership positions, most recently as former Executive Vice President of Noble Energy, Inc., an independent oil and natural gas exploration and production company. She brings extensive industry, technical and business experience to the Board. Ms. Cunningham is currently a director of Oil Search Ltd.
Ms. Madden and Ms. Cunningham are strong additions to the Enbridge Board.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers in excess of 3 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-appoints-new-directors-to-its-board-300796360.html
SOURCE Enbridge Inc.
Article Date
2/15/2019Enbridge Inc. Reports Strong Fourth Quarter and Full Year 2018 Results
Source: PR Newswire
CALGARY, Feb. 15, 2019 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB) (NYSE:ENB) today reported fourth quarter and full year 2018 financial results and provided a quarterly business update.
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
CEO COMMENT
"It was a strong year for Enbridge, both from a financial and strategic perspective," commented Al Monaco, President and Chief Executive Officer of Enbridge.
"Financially, record operating performance across our natural gas and liquids businesses translated into full year DCF per share results near the top of our guidance range. We are pleased with the 20% DCF per share increase over last year, which reflects strong contributions from each of our core businesses driven by operating performance, optimization of throughput on existing assets, synergy realization from the Spectra acquisition and successfully bringing $7 billion of new projects into service in 2018.
"Strategically, we achieved the key priorities laid out in our three year business plan that was rolled out at the end of 2017, ahead of schedule. In addition to delivering strong cash flow and earnings per share growth, we executed significant non-core asset sales, accelerated balance sheet de-leveraging and simplified the corporate structure.
"We've received close to $6 billion of proceeds from the $7.8 billion of non-core asset sales announced through 2018. These sales allowed us to fully focus attention on our low risk pipeline and utility assets. The proceeds were applied to debt repayment so that at year-end, our consolidated Debt to EBITDA metric was down to 4.7x, well ahead of our original target of 5.0x.
"In addition, in the fourth quarter we completed the buy-in of all four of our sponsored vehicles. This now brings all of our core assets together under the Enbridge roof which allows us to retain more cash flow to re-invest in the business and for financial flexibility, as well as significantly enhancing our credit profile.
"It was another successful year for project execution, $7 billion of pipeline and utility assets were brought into service, including the Nexus and the Valley Crossing natural gas pipelines. Both are supported by long term take or pay contracts with strong customers and are perfect examples of our low-risk pipeline and utility model.
"We made great progress on the Line 3 replacement project. Construction is nearing completion in Canada, and with key approvals now received from the MPUC, we've moved into the permitting phase of the project in Minnesota. We continue to expect to bring the full project into service before the end of 2019. This critical integrity enhancement project will support reliable energy supply to local and regional refiners and restore much needed additional pipeline egress for Western Canadian producers.
"Lastly, the $1.8 billion of new secured growth projects that we announced at our investor conference in December illustrates the types of opportunities available across our businesses. We expect to capitalize on strong global energy fundamentals to extend and expand our networks, particularly in support of North American energy exports. In fact, post 2020 we expect to be able to deploy $5-6 billion per year on organic growth on a self-funded basis while maintaining prudent debt metrics. However, we'll continue to take a disciplined approach to investment decisions, comparing each to alternative capital allocation options in order to maximize shareholder value.
"In summary, we're pleased with the accomplishments we made on our key strategic priorities in 2018. We ended the year as a much stronger, lower risk, and simpler company than where we started the year. We're now well positioned to drive the business forward beyond 2020 as the lowest risk company in our sector with a strong balance sheet, reliable cash flows and a very attractive longer-term growth outlook," concluded Mr. Monaco.
FINANCIAL RESULTS SUMMARY
Financial results for the three and twelve months ended December 31, 2018, are summarized in the table below:
Three months ended | Year ended | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
(unaudited, millions of Canadian dollars, except per share amounts; number of shares in millions) | |||||||||
GAAP Earnings attributable to common shareholders | 1,089 | 207 | 2,515 | 2,529 | |||||
GAAP Earnings per common share | 0.60 | 0.13 | 1.46 | 1.66 | |||||
Cash provided by operating activities | 2,503 | 1,341 | 10,502 | 6,658 | |||||
Adjusted EBITDA1 | 3,320 | 2,963 | 12,849 | 10,317 | |||||
Adjusted Earnings1 | 1,166 | 1,013 | 4,568 | 2,982 | |||||
Adjusted Earnings per common share1 | 0.65 | 0.61 | 2.65 | 1.96 | |||||
Distributable Cash Flow1,2 | 1,863 | 1,741 | 7,618 | 5,614 | |||||
Weighted average common shares outstanding | 1,806 | 1,652 | 1,724 | 1,525 | |||||
1 Non-GAAP financial measures. Schedules reconciling adjusted EBITDA, adjusted earnings, adjusted earnings per common share and distributable cash flow are available as an Appendix to this news release. | |||||||||
2 Formerly referred to as Available Cash Flow From Operations (ACFFO). Calculation methodology remains unchanged. | |||||||||
GAAP earnings attributable to common shareholders increased by $882 million or $0.47 per share for the fourth quarter of 2018 and decreased by $14 million or $0.20 per share for the year ended 2018 compared to the same periods in 2017. In addition to the factors discussed in Adjusted Earnings below, the year-over-year and fourth quarter-over-quarter comparability of GAAP earnings attributable to common shareholders were impacted by a number of unusual, non-recurring or non-operating factors, which are noted in the reconciliation schedules included in Appendix A of this news release.
Adjusted earnings in the fourth quarter of 2018 increased by $153 million or $0.04 per share compared to the same period in 2017. The increase was primarily driven by strong operating results and operating cost efficiencies across many of the Company's business units, new projects coming into service in the Liquids Pipelines, Gas Transmission and Midstream, Green Power and Transmission and Gas Distribution segments since the fourth quarter of 2017 and synergy realization from the Spectra Energy acquisition.
Adjusted earnings for the year ended 2018 increased by $1,586 million or $0.69 per share compared to the same period in 2017. The increase is in large part due to the timing of the merger with Spectra Energy Corp (the Merger Transaction) which closed on February 27, 2017.
DCF for the fourth quarter of 2018 was $1,863 million and for the year ended 2018 was $7,618 million, increases of $122 million and $2,004 million respectively over the comparable prior periods in 2017, driven largely by the same factors noted above.
Detailed segmented financial information and analysis can be found below under Adjusted EBITDA by Segments.
PROJECT EXECUTION UPDATE
In 2018, the Company completed $7 billion of growth projects, substantially on time and on budget. These were comprised of almost a dozen projects across all business units, including expansions to the existing Canadian and US gas transmission systems, the Company's first European offshore wind project and ongoing capital investment to support customer growth within the utility franchises. Most recently in the fourth quarter, the US$1.3 billion (Enbridge's share) NEXUS and the associated US$0.2 billion TEAL natural gas pipeline projects were brought into service, providing much needed export capacity out of the Marcellus and Utica basins into the upper Midwest and Eastern Canadian markets. In addition, the US$1.6 billion Valley Crossing natural gas pipeline project entered service on October 31. All of these pipeline projects are underpinned by long-term take-or-pay transportation contracts.
Enbridge continues to make good progress executing the remainder of its secured growth capital program. The Company has a $16 billion inventory of secured projects at various stages of execution which are scheduled to come into service between 2019 and 2023. The individual projects that make up the secured program are all supported by long-term take-or-pay contracts, cost-of-service frameworks or similar low-risk commercial arrangements and are diversified across a wide range of business platforms and regulatory jurisdictions, the largest being the Line 3 Replacement Project as discussed below.
LINE 3 REPLACEMENT UPDATE
The $9 billion Line 3 Replacement Project is a critical integrity replacement project that will enhance the safety and reliability of the Enbridge Liquids Mainline System and provide incremental export capacity to Western Canadian producers and increased security of supply for key refining markets along the Mainline system as well as to markets further downstream.
Several important milestones were achieved in 2018. In Canada, the entire 1,100 kilometers of pipeline has now been laid and remaining construction activities on pump stations and terminal tie-ins are on schedule for completion by mid-2019. In the U.S., the pipeline replacement work in Wisconsin was completed and has been placed into service.
In Minnesota, the MPUC approved the Certificate of Need and Route Permit and denied petitions to reconsider the decisions. All related Certificate conditions have been finalized and are being addressed. In addition, agreement was reached with the Fond du Lac Band of Lake Superior Chippewa granting a new 20 year easement for the entire Mainline including the Line 3 Replacement Project through their Reservation. The remaining permit applications have been submitted to the various federal and state agencies, including the U.S. Army Corps of Engineers, the Minnesota Department of Natural Resources, the Minnesota Pollution Control Agency and other local government agencies in Minnesota. The Company anticipates that the agencies will process all of these applications in the coming months, and with timely approvals continues to expect an in-service date for the project before the end of 2019.
OTHER BUSINESS UPDATES
On October 15, 2018, the Company announced that it was moving forward with the amalgamation of Enbridge Gas Distribution Inc. and Union Gas Limited, its two natural gas utility franchises in Ontario. The amalgamation, under the terms of a new Ontario Energy Board approved incentive rate regulation framework, took effect January 1, 2019. This will enable significant efficiencies in operations benefiting both ratepayers and shareholders while maintaining a focus on the safe and reliable distribution of energy.
On December 11, 2018, the Company announced $1.8 billion of new accretive growth capital investments:
In January 2019, the Company secured an additional $0.3 billion of attractive and low-risk pipeline and utility growth capital projects:
SIMPLIFICATION OF CORPORATE STRUCTURE
In the fourth quarter, the Company acquired, in separate combination transactions, all of the outstanding equity securities of Enbridge Income Fund Holdings Inc. (ENF), Enbridge Energy Partners, L.P. (EEP), Enbridge Energy Management, L.L.C (EEQ), and Spectra Energy Partners, LP (SEP) not beneficially owned by Enbridge. The buy-ins are strategically and economically attractive Enbridge shareholders and provide substantial benefits, including:
ASSET SALE AND FINANCING UPDATE
The Company reached agreements to sell over $7.8 billion of non-core assets in 2018, well in excess of the $3 billion targeted in the financing plan. The Company has now received proceeds from asset sales of approximately $5.7 billion, with the balance expected by mid-2019. These proceeds will provide the Company with significant additional financial flexibility to further strengthen the balance sheet and fund the secured growth program. As of the end of the year, the Company's consolidated Debt to EBITDA ratio was 4.7x on a trailing twelve month basis. This is in line with its updated long term target credit metric range of 4.5x to comfortably below 5.0x Debt to EBITDA.
On January 25, 2019, Moody's Investors Service announced that it had upgraded Enbridge Inc.'s senior unsecured debt rating to Baa2 with a positive outlook. Each of Standard & Poors, Fitch and DBRS have recently reaffirmed Enbridge Inc.'s senior unsecured debt rating at BBB+, BBB+ and BBB High, respectively.
Given the progress on leverage reduction, the Company announced in the fourth quarter that it would suspend its DRIP effective with the dividend payment on December 1, 2018, which was earlier than originally contemplated. With this action, the Company has now moved to a fully self-funded financing model and will no longer require external equity to support its growth program going forward.
The sponsored vehicle buy-ins have also provided an opportunity to simplify the Company's debt financing structure and strategy. A number of actions have been taken:
The Company believes that these changes to its debt funding structure and financing strategy has substantially reduced structural subordination, will further enhance the credit profile of the consolidated Enbridge group and reduce its cost of capital over the longer term.
GUIDANCE AND LONGER TERM GROWTH OUTLOOK
At its December 2018 investor conference, Enbridge highlighted that its key strategic priorities for 2019 and beyond remain largely unchanged:
The Company further re-iterated its guidance for the mid-point of the projected range of 2019 and 2020 DCF per share of $4.45 per share and $5.00 per share, respectively. With this robust outlook, Enbridge has announced a 10% dividend increase for 2019 and anticipates another 10% increase for 2020. The 2019 quarterly dividend of $0.738 per share will be payable on March 1, 2019, to shareholders of record on February 15, 2019.
Beyond 2020, Enbridge is targeting to achieve annual DCF per share growth in the range of 5%-7%, driven by an attractive suite of organic growth prospects within its three core businesses that can be self-funded using available cash generated by these businesses and managing leverage within targets designed to maintain strong investment grade credit ratings.
FOURTH QUARTER AND YEAR-END 2018 FINANCIAL RESULTS
The following table summarizes the Company's GAAP reported results for segment EBITDA, earnings attributable to common shareholders, and cash provided by operating activities for the fourth quarter and full year 2018.
GAAP SEGMENT EBITDA AND CASH FLOW FROM OPERATIONS
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
Liquids Pipelines | 978 | 1,555 | 5,331 | 6,395 | |||
Gas Transmission and Midstream | 1,254 | (3,532) | 2,334 | (1,269) | |||
Gas Distribution | 449 | 453 | 1,711 | 1,390 | |||
Green Power and Transmission | 83 | 102 | 369 | 372 | |||
Energy Services | 374 | (252) | 482 | (263) | |||
Eliminations and Other | (340) | (149) | (708) | (337) | |||
EBITDA | 2,798 | (1,823) | 9,519 | 6,288 | |||
Earnings attributable to common shareholders | 1,089 | 207 | 2,515 | 2,529 | |||
Cash provided by operating activities | 2,503 | 1,341 | 10,502 | 6,658 | |||
For purposes of evaluating performance, the Company makes adjustments for unusual, non-recurring or non-operating factors to GAAP reported earnings, segment EBITDA, and cash provided by operating activities, which allow Management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of the underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per common share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
DISTRIBUTABLE CASH FLOW
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars, except per share amounts) | |||||||
Liquids Pipelines | 1,728 | 1,482 | 6,617 | 5,484 | |||
Gas Transmission and Midstream | 952 | 1,020 | 4,068 | 3,350 | |||
Gas Distribution | 452 | 450 | 1,726 | 1,379 | |||
Green Power and Transmission | 98 | 109 | 435 | 379 | |||
Energy Services | 73 | (21) | 167 | (52) | |||
Eliminations and Other | 17 | (77) | (164) | (223) | |||
Adjusted EBITDA1 | 3,320 | 2,963 | 12,849 | 10,317 | |||
Maintenance capital | (361) | (345) | (1,144) | (1,261) | |||
Interest expense1 | (675) | (665) | (2,735) | (2,421) | |||
Current income tax1 | (156) | (49) | (384) | (154) | |||
Distributions to noncontrolling interests and redeemable noncontrolling interests | (281) | (272) | (1,182) | (1,042) | |||
Cash distributions in excess of equity earnings1 | 51 | 118 | 318 | 279 | |||
Preference share dividends | (96) | (84) | (364) | (330) | |||
Other receipts of cash not recognized in revenue2 | 51 | 25 | 208 | 196 | |||
Other non-cash adjustments | 10 | 50 | 52 | 30 | |||
DCF | 1,863 | 1,741 | 7,618 | 5,614 | |||
Weighted average common shares outstanding | 1,806 | 1,652 | 1,724 | 1,525 | |||
1 | Presented net of adjusting items. |
2 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
Fourth quarter 2018 DCF increased by $122 million compared to the fourth quarter of 2017. The key drivers of quarter-over-quarter growth are summarized below:
Partially offsetting the DCF growth drivers noted above was:
For the year ended December 31, 2018, DCF has increased by $2,004 million compared to the comparative 2017 period. The increase is in large part attributable to the timing of the Merger Transaction which closed on February 27, 2017; the 2017 results reflect only ten months contributions from Spectra Energy assets where the 2018 results reflect a full twelve months of contribution.
ADJUSTED EARNINGS | Three months ended | Year ended | |||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars, except per share amounts) | |||||||
Adjusted EBITDA | 3,320 | 2,963 | 12,849 | 10,317 | |||
Depreciation and amortization | (794) | (764) | (3,246) | (3,152) | |||
Interest expense1 | (656) | (638) | (2,637) | (2,305) | |||
Income taxes1 | (421) | (252) | (1,122) | (805) | |||
Noncontrolling interests and redeemable noncontrolling interests1 | (188) | (212) | (909) | (743) | |||
Preference share dividends | (95) | (84) | (367) | (330) | |||
Adjusted earnings | 1,166 | 1,013 | 4,568 | 2,982 | |||
Adjusted earnings per common share | 0.65 | 0.61 | 2.65 | 1.96 | |||
1 | Presented net of adjusting items. |
Adjusted earnings increased by $153 million for the three months ended December 31, 2018, compared with the respective 2017 period. The key drivers of quarter-over-quarter growth are summarized below:
Partially offsetting the adjusted earnings growth drivers noted above was:
Adjusted earnings per share for the three months ended December 31, 2018 increased by $0.04 over the fourth quarter of 2017. The increase reflected the factors noted above, partially offset by a higher average number of shares outstanding following the offering of approximately 33 million of the Company's common shares in December 2017. Additionally, in the fourth quarter of 2018, the Company issued approximately 297 million common shares to acquire, in separate transactions, all of the outstanding equity securities of its sponsored vehicles not beneficially owned by Enbridge.
For the year ended December 31, 2018, adjusted earnings increased by $1,586 million compared to the comparative 2017 year. The increase is in large part attributed to the timing of the Merger Transaction. Consequently, the 2017 results reflect only ten months contributions from Spectra Energy assets.
Adjusted earnings per share for the year ended December 31, 2018 increased by $0.69 over 2017. The increases reflected the factors noted above, partially offset by a higher average number of shares outstanding. 2018 reflected the full year impact of shares issued in the Merger Transaction and the approximately 33 million shares issued in a follow-on offering in December 2017. Also impacting the increase in the weighted average share count was the incremental shares issued in December 2018 related to the Sponsored Vehicle buy-in transactions.
ADJUSTED EBITDA BY SEGMENTS
LIQUIDS PIPELINES
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
Canadian Mainline | 572 | 367 | 2,105 | 1,342 | |||
Lakehead System | 425 | 441 | 1,742 | 1,786 | |||
Regional Oil Sands System | 209 | 182 | 851 | 600 | |||
Gulf Coast and Mid-Continent | 201 | 200 | 709 | 681 | |||
Other1 | 321 | 292 | 1,210 | 1,075 | |||
Adjusted EBITDA2 | 1,728 | 1,482 | 6,617 | 5,484 | |||
Operating Data (average deliveries – thousands of bpd) | |||||||
Canadian Mainline3 | 2,685 | 2,586 | 2,631 | 2,530 | |||
Lakehead System4 | 2,833 | 2,724 | 2,775 | 2,673 | |||
Regional Oil Sands System5 | 1,856 | 1,392 | 1,830 | 1,301 | |||
International Joint Tariff (IJT) | $4.15 | $4.07 | $4.11 | $4.06 | |||
Lakehead System Local Toll | $2.23 | $2.43 | $2.27 | $2.47 | |||
Canadian Mainline IJT Residual Toll | $1.92 | $1.64 | $1.84 | $1.59 | |||
Canadian Mainline Apportionment6 | 45% | 10% | 45% | 20% | |||
Canadian Mainline Effective FX Rate | $1.27 | $1.07 | $1.26 | $1.06 | |||
1 | Included within Other are Southern Lights Pipeline, Express-Platte System, Bakken System and Feeder Pipelines & Other. |
2 | Schedules reconciling adjusted EBITDA are provided in the Appendices to this news release. |
3 | Canadian Mainline throughput volume represents mainline system deliveries ex-Gretna, Manitoba which is made up of United States and eastern Canada deliveries originating from western Canada. |
4 | Lakehead System throughput volume represents mainline system deliveries to the United States mid-west and eastern Canada. |
5 | Volumes are for the Athabasca mainline, Athabasca Twin, Waupisoo Pipeline and Woodland Pipeline and exclude laterals on the Regional Oil Sands System. |
6 | Heavy apportionment on Canadian Mainline. |
Liquids Pipelines adjusted EBITDA increased by $246 million for the fourth quarter of 2018 when compared to the same period in 2017. The key quarter-over-quarter performance drivers are summarized below:
Liquids Pipelines adjusted EBITDA increased by $1,133 million for the year ended 2018 when compared to 2017. The key year-over-year performance drivers reflected the same factors discussed above in the fourth quarter analysis as well as the following:
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
US Gas Transmission | 646 | 650 | 2,625 | 2,215 | |||
Canadian Gas Transmission & Midstream | 149 | 196 | 755 | 575 | |||
Alliance Pipeline | 59 | 56 | 228 | 205 | |||
US Midstream | 54 | 69 | 319 | 218 | |||
Other | 44 | 49 | 141 | 137 | |||
Adjusted EBITDA1 | 952 | 1,020 | 4,068 | 3,350 | |||
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Gas Transmission and Midstream adjusted EBITDA decreased by $68 million for the fourth quarter of 2018 when compared to the same period in 2017. The key quarter-over-quarter performance drivers are summarized below:
Gas Transmission and Midstream adjusted EBITDA increased by $718 million for the year ended 2018 when compared to 2017. The key year-over-year performance drivers reflected the same factors discussed above in the fourth quarter analysis as well as the following:
GAS DISTRIBUTION
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
Enbridge Gas Distribution Inc. (EGD) | 191 | 201 | 803 | 701 | |||
Union Gas Limited (Union Gas) | 217 | 208 | 782 | 551 | |||
Other | 44 | 41 | 141 | 127 | |||
Adjusted EBITDA1 | 452 | 450 | 1,726 | 1,379 | |||
Operating Data | |||||||
EGD | |||||||
Volumes (billions of cubic feet) | 141 | 135 | 449 | 421 | |||
Number of active customers (thousands)3 | 2,216 | 2,190 | 2,216 | 2,190 | |||
Heating degree days4 | |||||||
Actual | 1,332 | 1,285 | 3,728 | 3,499 | |||
Forecast based on normal weather | 1,246 | 1,226 | 3,642 | 3,639 | |||
Union Gas2 | |||||||
Volumes (billions of cubic feet) | 391 | 370 | 1,372 | 944 | |||
Number of active customers (thousands)3 | 1,497 | 1,475 | 1,497 | 1,475 | |||
Heating degree days4 | |||||||
Actual | 1,463 | 1,433 | 4,147 | 2,688 | |||
Forecast based on normal weather | 1,376 | 1,377 | 4,064 | 2,636 | |||
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
2 | Reflects operating data post-Merger Transaction. |
3 | Number of active customers at the end of the reported period. |
4 | Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in EGD's and Union Gas' franchise area. It is calculated by accumulating, for the fiscal period, the total number of degrees each day by which the daily mean temperature falls below 18 degrees Celsius. |
Gas Distribution adjusted EBITDA will typically follow a seasonal profile. It is generally highest in the first and fourth quarters of the year reflecting greater volumetric usage during the heating season, and lowest in the third quarter as there is generally less volumetric usage during the summer. The magnitude of the seasonal EBITDA fluctuations will vary from year-to-year reflecting the impact of colder or warmer than normal weather on distribution volumes in a given quarter.
Gas Distribution adjusted EBITDA increased by $2 million for the fourth quarter 2018 when compared to the same period in 2017. The key quarter-over-quarter performance drivers are summarized below:
Gas Distribution adjusted EBITDA increased by $347 million for the year ended 2018 when compared to the same period in 2017. The key year-over-year performance drivers reflected the same factors as discussed above in the fourth quarter analysis as well as:
For the twelve months ended December 31, 2018, Adjusted EBITDA for EGD and Union Gas has been positively impacted by $35 million due to colder weather experienced in the franchise area relative to the assumptions for normal weather embedded in customer rates.
EGD and Union Gas were amalgamated on January 1, 2019. The amalgamated company has continued from this date as Enbridge Gas Inc. (Enbridge Gas). Post amalgamation the financial results of Enbridge Gas Inc. will reflect the combined performance of the two legacy utility operations.
The Company has reached an agreement to sell Enbridge Gas New Brunswick and St. Lawrence Gas Company Inc., subject to receipt of regulatory approvals and other customary closing considerations, the transactions are expected to close in 2019.
GREEN POWER AND TRANSMISSION
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
Adjusted EBITDA1 | 98 | 109 | 435 | 379 | |||
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Green Power and Transmission adjusted EBITDA decreased by $11 million for the fourth quarter of 2018 when compared to the same period in 2017. The key quarter-over-quarter performance drivers are summarized below:
Green Power and Transmission adjusted EBITDA increased by $56 million for the year ended 2018 when compared to 2017. The key year-over-year performance drivers are summarized below:
On August 1, 2018, the Company finalized a transaction to sell a 49% interest in certain North American onshore renewable power assets and 49% of the Company's interests in two German offshore wind farms under development (collectively, the Renewable Assets JV). Enbridge maintains a 51% controlling interest in the Renewable Assets JV, and continues to manage, operate and provide administrative services for these assets. The consolidated results generated by these assets will continue to be reported by the Green Power and Transmission segment. Earnings and cash flows attributed to the third party investors in these assets will be reported as non-controlling interests in the Company's consolidated statements of earnings and distributable cash flow.
ENERGY SERVICES
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
Adjusted EBITDA1 | 73 | (21) | 167 | (52) | |||
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Energy Services adjusted EBITDA increased by $94 million and $219 million for the fourth quarter and full year of 2018 compared to the respective 2017 periods. The increase was primarily driven by wider crude oil and natural gas location differentials which provided greater opportunity to generate profitable margins.
ELIMINATIONS AND OTHER
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
Operating and administrative | 82 | (52) | 55 | (39) | |||
Realized foreign exchange hedge settlements | (65) | (25) | (219) | (184) | |||
Adjusted EBITDA1 | 17 | (77) | (164) | (223) | |||
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Operating and administrative costs captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) net of amounts recovered from business units for the provision of those services. Also, as previously noted, US dollar denominated earnings within the segment results are translated at average foreign exchange rates during the quarter. The offsetting impact of settlements made under the Company's enterprise foreign exchange hedging program is captured in this segment.
Eliminations and Other adjusted EBITDA increased by $94 million for the fourth quarter of 2018, when compared to the same period in 2017. The key quarter-over-quarter performance drivers are summarized below:
Eliminations and Other adjusted loss before interest, income taxes, and depreciation and amortization increased by $59 million for the year ended 2018, when compared to the same period in 2017. The key year-over-year performance drivers are summarized below:
CONFERENCE CALL
Enbridge will hold a conference call and webcast on February 15, 2019 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to provide an enterprise wide business update and review 2018 fourth quarter and year end financial results. Analysts, members of the media and other interested parties can access the call toll free at (877) 930-8043 or within and outside North America at (253) 336-7522 using the access code of 3577747#. The call will be audio webcast live at https://edge.media-server.com/m6/p/wxannnzi. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available for seven days after the call toll-free (855) 859-2056 or within and outside North America at (404) 537-3406 (access code 3577747#).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected DCF or DCF per share; expected future cash flows; expected performance of the Company's businesses; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected credit metrics and debt to EBITDA levels; expected costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected impact on cash flows of the Company's commercially secured growth program; expected future growth and expansion opportunities; expectations about the Company's joint venture partners' ability to complete and finance projects under construction; expected closing of acquisitions and dispositions; expected future actions of regulators; expected costs related to leak remediation and potential insurance recoveries; expectations regarding commodity prices; supply forecasts; expectations regarding the impact of the Merger Transaction, buy-in transactions and other corporate simplification initiatives; estimated future dividends; dividend payout policy; and dividend growth and dividend payout expectation; expectations on impact of our hedging program; and expectations resulting from the successful execution of our 2018-2020 Strategic Plan.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the timing and closing of dispositions; the realization of anticipated benefits and synergies of the Merger Transaction; buy-in transactions and other corporate simplification initiatives; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of capital project execution on the Company's future cash flows; credit ratings; capital project funding; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the impact of the Merger Transaction buy-in transactions and corporate simplification initiatives on the Company, expected future DCF and DCF per share; and estimated future dividends. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the realization of anticipated benefits and synergies of the Merger Transaction, buy-in transactions and corporate simplification initiatives, operating performance, regulatory parameters, changes in regulations applicable to our business, acquisitions and dispositions, dividend policy, project approval and support, renewals of rights of way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities and other factors, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
ABOUT ENBRIDGE INC.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers in excess of 3 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 18% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise part of this news release.
FOR FURTHER INFORMATION PLEASE CONTACT: | ||
Enbridge Inc. – Media | Enbridge Inc. – Investment Community | |
Jesse Semko | Jonathan Gould | |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 | |
Email: media@enbridge.com |
DIVIDEND DECLARATION
Our Board of Directors has declared the following quarterly dividends. All dividends are payable on March 1, 2019 to shareholders of record on February 15, 2019.
Common Shares1 | $0.73800 | |
Preference Shares, Series A | $0.34375 | |
Preference Shares, Series B | $0.21340 | |
Preference Shares, Series C2 | $0.25459 | |
Preference Shares, Series D3 | $0.27875 | |
Preference Shares, Series F4 | $0.29306 | |
Preference Shares, Series H5 | $0.27350 | |
Preference Shares, Series J | US$0.30540 | |
Preference Shares, Series L | US$0.30993 | |
Preference Shares, Series N6 | $0.31788 | |
Preference Shares, Series P | $0.25000 | |
Preference Shares, Series R | $0.25000 | |
Preference Shares, Series 17 | US$0.37182 | |
Preference Shares, Series 3 | $0.25000 | |
Preference Shares, Series 5 | US$0.27500 | |
Preference Shares, Series 7 | $0.27500 | |
Preference Shares, Series 9 | $0.27500 | |
Preference Shares, Series 11 | $0.27500 | |
Preference Shares, Series 13 | $0.27500 | |
Preference Shares, Series 15 | $0.27500 | |
Preference Shares, Series 17 | $0.32188 | |
Preference Shares, Series 198 | $0.30625 |
1 | The quarterly dividend per common share was increased 10% to $0.73800 from $0.67100, effective March 1, 2019. |
2 | The floating dividend on the Series C Preference Shares is reset each quarter. The quarterly dividend amount of Series C increased to $0.22685 from $0.20342 on March 1, 2018, increased to $0.22748 from $0.22685 on June 1, 2018, increased to $0.23934 from $0.22748 on September 1, 2018 and increased to $0.25459 from $0.23934 on December 1, 2018. |
3 | The quarterly dividend amount of Series D increased to $0.27875 from $0.25000 on March 1, 2018, due to the reset of the annual dividend on every fifth anniversary of the date of issuance of the Series D Preference Shares. |
4 | The quarterly dividend amount of Series F increased to $0.29306 from $0.25000 on June 1, 2018, due to the reset of the annual dividend on every fifth anniversary of the date of issuance of the Series F Preference Shares. |
5 | The quarterly dividend amount of Series H increased to $0.27350 from $0.25000 on September 1, 2018, due to the reset of the annual dividend on every fifth anniversary of the date of issuance of the Series H Preference Shares. |
6 | The quarterly dividend amount of Series N increased to $0.31788 from $0.25000 on December 1, 2018, due to the reset of the annual dividend on every fifth anniversary of the date of issuance of the Series N Preference Shares. |
7 | The quarterly dividend amount of Series 1 increased to US$0.37182 from US$0.25000 on June 1, 2018, due to the reset of the annual dividend on every fifth anniversary of the date of issuance of the Series 1 Preference Shares. |
8 | The quarterly dividend amount of Series 19 increased from the first dividend of $0.26850 payable on March 1, 2018 to the regular quarterly dividend of $0.30625, effective June 1, 2018 |
NON-GAAP RECONCILATIONS APPENDICES
This news release contains references to adjusted EBITDA, adjusted earnings, adjusted earnings per common share, and DCF. Management believes the presentation of these metrics gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Adjusted EBITDA represents EBITDA adjusted for unusual, non-recurring or non-operating factors on both a consolidated and segmented basis. Management uses adjusted EBITDA to set targets and to assess the performance of the Company and its Business Units.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, non-recurring or non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, non-recurring or non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes, noncontrolling interests and redeemable noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another measure of the Company's ability to generate earnings.
DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests and redeemable noncontrolling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
Reconciliations of forward looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability of estimating some of the items, particularly certain contingent liabilities, and non-cash unrealized derivative fair value losses and gains and ineffectiveness on hedges which are subject to market variability. Because of these challenges, a reconciliation of forward looking non-GAAP financial measures is not available without unreasonable effort.
Our non-GAAP measures described above are not measures that have standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers.
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON-GAAP RECONCILATIONS – ADJUSTED EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
Liquids Pipelines | 978 | 1,555 | 5,331 | 6,395 | |||
Gas Transmission and Midstream | 1,254 | (3,532) | 2,334 | (1,269) | |||
Gas Distribution | 449 | 453 | 1,711 | 1,390 | |||
Green Power and Transmission | 83 | 102 | 369 | 372 | |||
Energy Services | 374 | (252) | 482 | (263) | |||
Eliminations and Other | (340) | (149) | (708) | (337) | |||
EBITDA | 2,798 | (1,823) | 9,519 | 6,288 | |||
Depreciation and amortization | (794) | (775) | (3,246) | (3,163) | |||
Interest expense | (661) | (852) | (2,703) | (2,556) | |||
Income taxes | (60) | 3,515 | (237) | 2,697 | |||
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests | (99) | 226 | (451) | (407) | |||
Preference share dividends | (95) | (84) | (367) | (330) | |||
Earnings/(loss) attributable to common shareholders | 1,089 | 207 | 2,515 | 2,529 | |||
ADJUSTED EBITDA TO ADJUSTED EARNINGS
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars, except per share amounts) | |||||||
Liquids Pipelines | 1,728 | 1,482 | 6,617 | 5,484 | |||
Gas Transmission and Midstream | 952 | 1,020 | 4,068 | 3,350 | |||
Gas Distribution | 452 | 450 | 1,726 | 1,379 | |||
Green Power and Transmission | 98 | 109 | 435 | 379 | |||
Energy Services | 73 | (21) | 167 | (52) | |||
Eliminations and Other | 17 | (77) | (164) | (223) | |||
Adjusted EBITDA | 3,320 | 2,963 | 12,849 | 10,317 | |||
Depreciation and amortization | (794) | (764) | (3,246) | (3,152) | |||
Interest expense | (656) | (638) | (2,637) | (2,305) | |||
Income taxes | (421) | (252) | (1,122) | (805) | |||
Noncontrolling interests and redeemable noncontrolling interests | (188) | (212) | (909) | (743) | |||
Preference share dividends | (95) | (84) | (367) | (330) | |||
Adjusted earnings | 1,166 | 1,013 | 4,568 | 2,982 | |||
Adjusted earnings per common share | 0.65 | 0.61 | 2.65 | 1.96 | |||
EBITDA TO ADJUSTED EARNINGS
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars, except per share amounts) | |||||||
EBITDA | 2,798 | (1,823) | 9,519 | 6,288 | |||
Adjusting items: | |||||||
Change in unrealized derivative fair value (gain)/loss | 576 | 130 | 894 | (1,109) | |||
(Gain)/loss on sale of assets | (72) | 9 | 35 | 9 | |||
Asset write-down loss | 125 | 4,552 | 2,211 | 4,552 | |||
(Gain)/loss on sale of pipe and project wind-down costs | 1 | (6) | (27) | (99) | |||
Employee severance, transition and transformation costs | 60 | 70 | 203 | 354 | |||
Transaction costs | — | — | — | 180 | |||
Asset monetization costs | 23 | — | 88 | — | |||
Regulatory liability adjustment | (223) | — | (223) | — | |||
Other | 32 | 31 | 149 | 142 | |||
Total adjusting items | 522 | 4,786 | 3,330 | 4,029 | |||
Adjusted EBITDA | 3,320 | 2,963 | 12,849 | 10,317 | |||
Depreciation and amortization | (794) | (775) | (3,246) | (3,163) | |||
Interest expense | (661) | (852) | (2,703) | (2,556) | |||
Income taxes | (60) | 3,515 | (237) | 2,697 | |||
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests | (99) | 226 | (451) | (407) | |||
Preference share dividends | (95) | (84) | (367) | (330) | |||
Adjusting items in respect of: | |||||||
Depreciation and amortization | — | 11 | — | 11 | |||
Interest expense | 5 | 214 | 66 | 251 | |||
Income taxes | (361) | (3,767) | (885) | (3,502) | |||
Noncontrolling interests and redeemable noncontrolling interests | (89) | (438) | (458) | (336) | |||
Adjusted earnings | 1,166 | 1,013 | 4,568 | 2,982 | |||
Adjusted earnings per common share | 0.65 | 0.61 | 2.65 | 1.96 | |||
APPENDIX B
NON-GAAP RECONCILIATION – SEGMENTED EBITDA TO ADJUSTED EBITDA
LIQUIDS PIPELINES
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
Adjusted EBITDA | 1,728 | 1,482 | 6,617 | 5,484 | |||
Change in unrealized derivative fair value gain/(loss) | (715) | 94 | (1,077) | 875 | |||
Asset write-down loss | (32) | — | (186) | — | |||
Gain/(loss) on sale of pipe and project wind-down costs | (1) | 6 | 27 | 99 | |||
Leak remediation costs, net of leak insurance recoveries | — | (1) | — | (10) | |||
Project development costs | (1) | 2 | (4) | (4) | |||
Employee severance, transition and transformation costs | (1) | (9) | (26) | (30) | |||
Regulatory asset adjustment | — | — | (20) | — | |||
Other | — | (19) | — | (19) | |||
Total adjustments | (750) | 73 | (1,286) | 911 | |||
EBITDA | 978 | 1,555 | 5,331 | 6,395 | |||
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
Adjusted EBITDA | 952 | 1,020 | 4,068 | 3,350 | |||
Change in unrealized derivative fair value gain/(loss) | (1) | (8) | 24 | (1) | |||
Gain/(loss) on sale of assets | 72 | — | (2) | — | |||
Asset write-down loss | — | (4,552) | (1,932) | (4,552) | |||
Pipeline inspection and other | — | 26 | (2) | (8) | |||
Regulatory liability adjustment | 223 | — | 223 | — | |||
DCP Midstream equity earnings adjustment | 11 | (7) | (12) | (28) | |||
Transaction costs | — | — | — | (6) | |||
Asset monetization costs | — | — | (20) | — | |||
Employee severance, transition and transformation costs | (3) | (11) | (13) | (24) | |||
Total adjustments | 302 | (4,552) | (1,734) | (4,619) | |||
Earnings/(loss) before interest, income taxes, and depreciation and amortization | 1,254 | (3,532) | 2,334 | (1,269) | |||
GAS DISTRIBUTION
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited; millions of Canadian dollars) | |||||||
Adjusted EBITDA | 452 | 450 | 1,726 | 1,379 | |||
Change in unrealized derivative fair value gain | 3 | 3 | 6 | 16 | |||
Noverco Inc. equity earnings adjustment | — | — | (9) | — | |||
Employee severance, transition and transformation costs | (6) | — | (12) | (5) | |||
Total adjustments | (3) | 3 | (15) | 11 | |||
EBITDA | 449 | 453 | 1,711 | 1,390 | |||
GREEN POWER AND TRANSMISSION
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
Adjusted EBITDA | 98 | 109 | 435 | 379 | |||
Change in unrealized derivative fair value gain/(loss) | (1) | 2 | 1 | 2 | |||
Loss on sale of assets | — | (9) | (20) | (9) | |||
Equity investment asset impairment | (14) | — | (47) | — | |||
Total adjustments | (15) | (7) | (66) | (7) | |||
EBITDA | 83 | 102 | 369 | 372 | |||
ENERGY SERVICES
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
Adjusted earnings/(loss) before interest, income taxes, and depreciation and amortization | 73 | (21) | 167 | (52) | |||
Change in unrealized derivative fair value gain/(loss) | 394 | (222) | 408 | (200) | |||
Inventory write-down | (93) | — | (93) | — | |||
Employee severance, transition and transformation costs | — | (1) | — | (3) | |||
Other | — | (8) | — | (8) | |||
Total adjustments | 301 | (231) | 315 | (211) | |||
Earnings/(loss) before interest, income taxes, and depreciation and amortization | 374 | (252) | 482 | (263) | |||
ELIMINATIONS AND OTHER
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
Adjusted earnings/(loss) before interest, income taxes, and depreciation and amortization | 17 | (77) | (164) | (223) | |||
Change in unrealized derivative fair value gain/(loss) | (256) | 1 | (256) | 417 | |||
Unrealized intercompany foreign exchange loss | (12) | (9) | (23) | (29) | |||
Asset impairment | — | (13) | (6) | (13) | |||
Loss on sale of assets | — | — | (13) | — | |||
Asset monetization costs | (23) | — | (68) | — | |||
Project development costs | (6) | (2) | (11) | (23) | |||
Transaction costs | — | — | — | (174) | |||
Sponsored vehicle buy-in costs | (10) | — | (15) | — | |||
Employee severance, transition and transformation costs | (50) | (49) | (152) | (292) | |||
Total adjustments | (357) | (72) | (544) | (114) | |||
Loss before interest, income taxes, and depreciation and amortization | (340) | (149) | (708) | (337) | |||
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING ACTIVITIES TO DCF
Three months ended | Year ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(unaudited, millions of Canadian dollars) | |||||||
Cash provided by operating activities | 2,503 | 1,341 | 10,502 | 6,658 | |||
Adjusted for changes in operating assets and liabilities1 | 28 | 461 | (915) | 338 | |||
2,531 | 1,802 | 9,587 | 6,996 | ||||
Distributions to noncontrolling interests and redeemable noncontrolling interests2 | (281) | (272) | (1,182) | (1,042) | |||
Preference share dividends | (96) | (84) | (364) | (330) | |||
Maintenance capital expenditures3 | (361) | (345) | (1,144) | (1,261) | |||
Significant adjusting items: | |||||||
Pre-issuance hedge settlement4 | — | 431 | — | 431 | |||
Other receipts of cash not recognized in revenue5 | 51 | 25 | 208 | 196 | |||
Transaction costs | — | — | — | 178 | |||
Regulatory liability adjustment | (223) | — | (223) | — | |||
Employee severance, transition and transformation costs | 59 | 81 | 248 | 359 | |||
Asset monetization costs | 23 | — | 107 | — | |||
Distributions from equity investments in excess of cumulative earnings | 35 | 63 | 326 | 125 | |||
Other items | 125 | 40 | 55 | (38) | |||
DCF | 1,863 | 1,741 | 7,618 | 5,614 | |||
1 | Changes in operating assets and liabilities include changes in environmental liabilities, net of recoveries. |
2 | Presented net of adjusting items. |
3 | Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing pipeline system or that are necessary to maintain the service capability of the existing assets (including the replacement of components that are worn, obsolete or completing their useful lives). For the purpose of DCF, maintenance capital excludes expenditures that extend asset useful lives, increase capacities from existing levels or reduce costs to enhance revenues or provide enhancements to the service capability of the existing assets. |
4 | Related to termination of interest rate swaps as not highly probable to issue long-term debt. |
5 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-reports-strong-fourth-quarter-and-full-year-2018-results-300796456.html
SOURCE Enbridge Inc.
Article Date
2/15/2019Enbridge Announces Conversion Results for Series P Preferred Shares
Source: PR Newswire
CALGARY, Feb. 14, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that none of Enbridge's outstanding Cumulative Redeemable Preference Shares, Series P (Series P Shares) will be converted into Cumulative Redeemable Preference Shares, Series Q of Enbridge (Series Q Shares) on March 1, 2019.
After taking into account all conversion notices received from holders of its outstanding Series P Shares by the February 14, 2019 deadline for the conversion of the Series P Shares into Series Q Shares, less than the 1,000,000 Series P Shares required to give effect to conversions into Series Q Shares were tendered for conversion.
About Enbridge Inc.
Enbridge is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-conversion-results-for-series-p-preferred-shares-300796396.html
SOURCE Enbridge Inc.
Article Date
2/15/2019Enbridge Announces Conversion Results for Series 7 Preferred Shares
Source: PR Newswire
CALGARY, Feb. 14, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that none of Enbridge's outstanding Cumulative Redeemable Preference Shares, Series 7 (Series 7 Shares) will be converted into Cumulative Redeemable Preference Shares, Series 8 of Enbridge (Series 8 Shares) on March 1, 2019.
After taking into account all conversion notices received from holders of its outstanding Series 7 Shares by the February 14, 2019 deadline for the conversion of the Series 7 Shares into Series 8 Shares, less than the 1,000,000 Series 7 Shares required to give effect to conversions into Series 8 Shares were tendered for conversion.
About Enbridge Inc.
Enbridge is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-conversion-results-for-series-7-preferred-shares-300796394.html
SOURCE Enbridge Inc.
Article Date
2/15/2019Enbridge Announces Conversion Results for Series 5 Preferred Shares
Source: PR Newswire
CALGARY, Feb. 14, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that none of Enbridge's outstanding Cumulative Redeemable Preference Shares, Series 5 (Series 5 Shares) will be converted into Cumulative Redeemable Preference Shares, Series 6 of Enbridge (Series 6 Shares) on March 1, 2019.
After taking into account all conversion notices received from holders of its outstanding Series 5 Shares by the February 14, 2019 deadline for the conversion of the Series 5 Shares into Series 6 Shares, less than the 1,000,000 Series 5 Shares required to give effect to conversions into Series 6 Shares were tendered for conversion.
About Enbridge Inc.
Enbridge is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-conversion-results-for-series-5-preferred-shares-300796393.html
SOURCE Enbridge Inc.
Article Date
2/15/2019Texas COLT Submits Application with MARAD for Deepwater Port Project
Source: PR Newswire
HOUSTON, Jan. 31, 2019 /PRNewswire/ - Texas COLT, a proposed joint venture among Enbridge Inc. (NYSE: ENB) (TSX: ENB), Kinder Morgan, Inc. (NYSE: KMI) and Oiltanking, today announced that it has submitted an application with the U.S. Maritime Administration (MARAD) to construct and operate a deepwater crude oil export port located off the coast of Freeport, TX.
The Texas COLT Project includes an offshore platform and two offshore loading single point mooring buoys capable of fully loading a 2-million-barrel Very Large Crude Carrier (VLCC) in approximately 24 hours. The offshore facilities will be connected by a 42" pipeline to an onshore tank farm that will have up to 15 million barrels of storage capacity.
Today's submittal with MARAD begins the application process for Texas COLT which is planned to be in-service by 2022.
Forward-Looking Statement
Forward-looking information, or forward-looking statements, has been included in this news release to provide information about Texas COLT. Forward-looking information or statements included in this news release include descriptions of the Texas COLT project. Although Texas COLT believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results to differ materially from those expressed or implied by such statements. Except to the extent required by applicable law, Texas COLT assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Texas COLT or persons acting on Texas COLT's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Kinder Morgan
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. We own an interest in or operate approximately 84,000 miles of pipelines and 157 terminals. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and our terminals transload and store liquid commodities including petroleum products, ethanol and chemicals, and bulk products, including petroleum coke, metals and ores.
For more information please visit www.kindermorgan.com.
About Oiltanking
Oiltanking GmbH is a subsidiary of Marquard & Bahls, a Hamburg-based company that operates in the fields of energy supply, trading and logistics. Oiltanking is one of the largest independent tank storage providers for petroleum products, chemicals and gases worldwide. The company owns and operates 73 terminals in 24 countries within Europe, North America, Latin America, the Middle East, Africa, India, and the Asia-Pacific region. Oiltanking has an overall storage capacity of 20 million cbm.
FOR FURTHER INFORMATION PLEASE CONTACT:
Enbridge Inc.
Media
Devin Hotzel
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
Kinder Morgan, Inc.
Media
Dave Conover
(713)-420-6397
newsroom@kindermorgan.com
Investment Community
Investor Relations
(800) 348-7320
km_ir@kindermorgan.com
Oiltanking
Media
Karl Henrik Dahl
+49 40 37004-744
karl.dahl@oiltanking.com
Jerry Hardman
281-457-7940
jerry.hardman@oiltanking.com
View original content:http://www.prnewswire.com/news-releases/texas-colt-submits-application-with-marad-for-deepwater-port-project-300787922.html
SOURCE Enbridge Inc.
Article Date
1/31/20191/30/2019 - Enbridge Provides Notice of Series 5 Preferred Shares Conversion Right and Announces Reset Dividend Rates
Enbridge Provides Notice of Series 5 Preferred Shares Conversion Right and Announces Reset Dividend Rates
Source: PR Newswire
CALGARY, Jan. 30, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series 5 (Series 5 Shares) (TSX: ENB.PF.V) on March 1, 2019. As a result, subject to certain conditions, the holders of the Series 5 Shares have the right to convert all or part of their Series 5 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 6 of Enbridge (Series 6 Shares) on March 1, 2019. Holders who do not exercise their right to convert their Series 5 Shares into Series 6 Shares will retain their Series 5 Shares.
The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series 5 Shares outstanding after March 1, 2019, then all remaining Series 5 Shares will automatically be converted into Series 6 Shares on a one-for-one basis on March 1, 2019; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 6 Shares outstanding after March 1, 2019, no Series 5 Shares will be converted into Series 6 Shares. There are currently 8,000,000 Series 5 Shares outstanding.
With respect to any Series 5 Shares that remain outstanding after March 1, 2019, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series 5 Shares for the five-year period commencing on March 1, 2019 to, but excluding, March 1, 2024 will be 5.3753 percent, being equal to the five-year United States Treasury bond yield of 2.5553 percent determined as of today plus 2.82 percent in accordance with the terms of the Series 5 Shares.
With respect to any Series 6 Shares that may be issued on March 1, 2019, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series 6 Shares for the three-month floating rate period commencing on March 1, 2019 to, but excluding, June 1, 2019 will be 1.34597 percent, based on the annual rate on three month United States Government treasury bills for the most recent treasury bills auction of 2.52 percent plus 2.82 percent in accordance with the terms of the Series 6 Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.
Beneficial holders of Series 5 Shares who wish to exercise their right of conversion during the conversion period, which runs from January 30, 2019 until 5:00 p.m. (EST) on February 14, 2019, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.
About Enbridge Inc.
Enbridge is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-provides-notice-of-series-5-preferred-shares-conversion-right-and-announces-reset-dividend-rates-300787127.html
SOURCE Enbridge Inc.
Article Date
1/30/20191/30/2019 - Enbridge Provides Notice of Series 7 Preferred Shares Conversion Right and Announces Reset Dividend Rates
Enbridge Provides Notice of Series 7 Preferred Shares Conversion Right and Announces Reset Dividend Rates
Source: PR Newswire
CALGARY, Jan. 30, 2019 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series 7 (Series 7 Shares) (TSX: ENB.PR.J) on March 1, 2019. As a result, subject to certain conditions, the holders of the Series 7 Shares have the right to convert all or part of their Series 7 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 8 of Enbridge (Series 8 Shares) on March 1, 2019. Holders who do not exercise their right to convert their Series 7 Shares into Series 8 Shares will retain their Series 7 Shares.
The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series 7 Shares outstanding after March 1, 2019, then all remaining Series 7 Shares will automatically be converted into Series 8 Shares on a one-for-one basis on March 1, 2019; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 8 Shares outstanding after March 1, 2019, no Series 7 Shares will be converted into Series 8 Shares. There are currently 10,000,000 Series 7 Shares outstanding.
With respect to any Series 7 Shares that remain outstanding after March 1, 2019, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series 7 Shares for the five-year period commencing on March 1, 2019 to, but excluding, March 1, 2024 will be 4.449 percent, being equal to the five-year Government of Canada bond yield of 1.879 percent determined as of today plus 2.57 percent in accordance with the terms of the Series 7 Shares.
With respect to any Series 8 Shares that may be issued on March 1, 2019, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series 8 Shares for the three-month floating rate period commencing on March 1, 2019 to, but excluding, June 1, 2019 will be 1.05863 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 1.63 percent plus 2.57 percent in accordance with the terms of the Series 8 Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.
Beneficial holders of Series 7 Shares who wish to exercise their right of conversion during the conversion period, which runs from January 30, 2019 until 5:00 p.m. (EST) on February 14, 2019, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.
About Enbridge Inc.
Enbridge is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-provides-notice-of-series-7-preferred-shares-conversion-right-and-announces-reset-dividend-rates-300787123.html
SOURCE Enbridge Inc.
Article Date
1/30/20191/22/2019 - Enbridge Inc. to Hold Webcast to Discuss 2018 Fourth Quarter and Full-Year Results on February 15
Enbridge Inc. to Hold Webcast to Discuss 2018 Fourth Quarter and Full-Year Results on February 15
Source: PR Newswire
CALGARY, Jan. 22, 2019 /PRNewswire/ - Enbridge Inc. (TSX, NYSE: ENB) (Enbridge) will hold a conference call and webcast to provide an enterprise-wide business update and review 2018 fourth quarter and full-year results on February 15, 2019 at 7:00 a.m. MST (9:00 a.m. EST).
Enbridge will report its financial results before markets open on February 15, 2019.
2018 Fourth Quarter Earnings Webcast and Conference Call
When: | Friday, February 15, 2019 | |
7:00 a.m. MST (9:00 a.m. EST) | ||
Webcast: | ||
Call: | Dial-in # (Audio only – please dial in 10 minutes ahead): | |
North America Toll Free: | 1 (877) 930-8043 | |
Outside North America: | 1 (253) 336-7522 | |
Participant Passcode: | 3577747 | |
A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the company's website within approximately 24 hours.
Replay: | Audio Replay # (Available for 7 days after call): | |
North America Toll Free: | 1 (855) 859-2056 | |
Outside North America: | 1 (404) 537-3406 | |
Replay Passcode: | 3577747 | |
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
About Enbridge Inc.
Enbridge is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-to-hold-webcast-to-discuss-2018-fourth-quarter-and-full-year-results-on-february-15-300782223.html
SOURCE Enbridge Inc.
Article Date
1/22/2019Enbridge Inc. Announces Successful Completion of Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP Consent Solicitations and Implementation of Guarantees
Source: PR Newswire
HOUSTON, TX, Jan. 22, 2019 /PRNewswire/ - Enbridge Inc. ("Enbridge") today announced that its wholly owned subsidiaries, Enbridge Energy Partners, L.P. ("EEP") and Spectra Energy Partners, LP ("SEP" and, together with EEP, the "Partnerships"), received the requisite consents with respect to, and have completed, the previously announced consent solicitations relating to the series of notes listed in the table below (collectively, the "Consenting EEP and SEP Notes"). Each Partnership expects to promptly enter into supplemental indentures to effect the proposed amendments described in the Consent Solicitation Statement dated January 8, 2019 (the "Statement") with respect to each series of the Consenting EEP and SEP Notes and, together with Enbridge, to enter into supplemental indentures to implement the unconditional guarantee of each series of Consenting EEP and SEP Notes by Enbridge as described in the Statement.
Consenting EEP and SEP Notes
ENBRIDGE ENERGY PARTNERS, L.P. | SPECTRA ENERGY PARTNERS, LP | |
9.875% Notes due 2019 (CUSIP No. 29250R AR7) | Floating Rate Senior Notes due 2020 (CUSIP No. 84756N AJ8) | |
5.200% Notes due 2020 (CUSIP No. 29250R AS5) | 4.600% Senior Notes due 2021 (CUSIP No. 84756N AB5) | |
4.375% Notes due 2020 (CUSIP No. 29250R AV8) | 4.750% Senior Notes due 2024 (CUSIP No. 84756N AD1) | |
4.200% Notes due 2021 (CUSIP No. 29250R AU0) | 3.500% Senior Notes due 2025 | |
5.875% Notes due 2025 | 3.375% Senior Notes due 2026 | |
5.950% Notes due 2033 | 5.950% Senior Notes due 2043 | |
6.300% Notes due 2034 | 4.500% Senior Notes due 2045 | |
7.500% Notes due 2038 | ||
5.500% Notes due 2040 | ||
7.375% Notes due 2045 |
The consent solicitations with respect to each series of Consenting EEP and SEP Notes expired at 5:00 p.m., New York City Time, on January 18, 2019 (the "Expiration Date"), and revocation rights with respect to consents validly delivered in respect of the Consenting EEP and SEP Notes have terminated. Subject to the terms and conditions set forth in the Statement, each Partnership will pay eligible holders of the Consenting EEP and SEP Notes who validly delivered and did not revoke consents on or prior to the Expiration Date a cash payment equal to $1.00 for each $1,000 aggregate principal amount of Consenting EEP and SEP Notes for which such holders validly delivered and did not revoke consents (the "Consent Fee"). Each Partnership will deliver its respective Consent Fee to Depository Trust Company ("DTC") on January 22, 2019, and they expect distribution of such fee by DTC to consenting holders to occur promptly afterward.
The supplemental indentures to be executed in connection with the completion of the consent solicitations will bind all holders of the Consenting EEP and SEP Notes, including those that did not give their consent, but holders who did not deliver consents prior to the Expiration Date (or delivered consents but properly revoked them) will not receive the Consent Fee.
Questions concerning the consent solicitations may be directed to the solicitation agents, J.P. Morgan Securities LLC at (866) 834-4666 (toll free) or (212) 834-3424 (collect) and MUFG Securities Americas Inc. (877) 744-4532 (toll free), (212) 405-7481 (collect) or (44) 207-577-4048/4218 (int'l), or D. F. King, by calling (212) 269-5550 (collect for banks and brokers) or (800) 398-1247 (toll free for all others).
In addition, each Partnership expects to promptly enter into a subsidiary guarantee agreement pursuant to which the Partnerships will jointly and severally guarantee the following series of notes (collectively, the "Subsidiary Guaranteed Enbridge Notes") issued by Enbridge:
Subsidiary Guaranteed Enbridge Notes
US DOLLAR DENOMINATED | CANADIAN DOLLAR DENOMINATED | |
Senior Floating Rate Notes due 2020 | 4.100% Senior Notes due 2019 | |
Senior Floating Rate Notes due 2020 | Senior Floating Rate Notes due 2019 | |
2.900% Senior Notes due 2022 | 4.770% Senior Notes due 2019 | |
4.000% Senior Notes due 2023 | 4.530% Senior Notes due 2020 | |
3.500% Senior Notes due 2024 | 4.850% Senior Notes due 2020 | |
4.250% Senior Notes due 2026 | 4.260% Senior Notes due 2021 | |
3.700% Senior Notes due 2027 | 3.160% Senior Notes due 2021 | |
4.500% Senior Notes due 2044 | 4.850% Senior Notes due 2022 | |
5.500% Senior Notes due 2046 | 3.190% Senior Notes due 2022 | |
3.940% Senior Notes due 2023 | ||
3.940% Senior Notes due 2023 | ||
3.950% Senior Notes due 2024 | ||
3.200% Senior Notes due 2027 | ||
6.100% Senior Notes due 2028 | ||
7.220% Senior Notes due 2030 | ||
7.200% Senior Notes due 2032 | ||
5.570% Senior Notes due 2035 | ||
5.750% Senior Notes due 2039 | ||
5.120% Senior Notes due 2040 | ||
4.240% Senior Notes due 2042 | ||
4.570% Senior Notes due 2044 | ||
4.870% Senior Notes due 2044 (CUSIP No. 29251Z BR7) | ||
4.560% Senior Notes due 2064 (CUSIP No. 29251Z BH9) |
This announcement is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consents with respect to any securities. The consent solicitations were made solely pursuant to the Statement and subject to the terms and conditions stated therein.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words "assumes," "believes," "estimates," "expects," "guidance," "intends," "plans," "projects," and similar expressions that do not relate to historical matters. All statements other than statements of historical fact are forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond our control and could materially affect actual results, performance, or achievements. Important risk factors that may affect the consent solicitations and our business, results of operations and financial position are detailed in the Statement and in the reports we file with the U.S. Securities and Exchange Commission. Actual operating results may differ materially from what is expressed or forecast in this press release. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.
About Enbridge Inc.
Enbridge is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
About Enbridge Energy Partners, L.P.
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil transportation systems in the United States. Its principal crude oil system is the largest pipeline transporter of growing oil production from western Canada and the North Dakota Bakken formation. The system's deliveries to refining centers and connected carriers in the United States account for approximately 25 percent of total U.S. oil imports. Information about EEP is available on its website at www.enbridgepartners.com.
About Spectra Energy Partners, LP
Spectra Energy Partners, LP connects growing supply areas to high-demand markets for natural gas and crude oil. Its assets include approximately 16,000 miles of transmission pipelines, approximately 170 billion cubic feet of natural gas storage, and approximately 5.6 million barrels of crude oil storage. Information about SEP is available on its website at www.spectraenergypartners.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Michael Barnes
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:SOURCE Enbridge Inc.
Article Date
1/22/2019Enbridge Inc. Announces that Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP Have Launched Consent Solicitations with Respect to Certain of their Outstanding Notes
Source: PR Newswire
HOUSTON, Jan. 8, 2019 /PRNewswire/ - Enbridge Inc. ("Enbridge") today announced that its wholly owned subsidiaries, Enbridge Energy Partners, L.P. ("EEP") and Spectra Energy Partners, LP ("SEP" and, together with EEP, the "Partnerships"), have commenced consent solicitations (the "Consent Solicitations") to holders of the following series of notes (collectively, the "Notes") to amend (the "Amendments") the respective indentures governing the Notes:
ENBRIDGE ENERGY PARTNERS, L.P. (the "EEP Notes") | SPECTRA ENERGY PARTNERS, LP (the "SEP Notes") | |
9.875% Notes due 2019 (CUSIP No. 29250R AR7) | Floating Rate Senior Notes due 2020 (CUSIP No. 84756N AJ8), | |
5.200% Notes due 2020 (CUSIP No. 29250R AS5) | 4.600% Senior Notes due 2021 (CUSIP No. 84756N AB5), | |
4.375% Notes due 2020 (CUSIP No. 29250R AV8) | 4.750% Senior Notes due 2024 (CUSIP No. 84756N AD1), | |
4.200% Notes due 2021 (CUSIP No. 29250R AU0) | 3.500% Senior Notes due 2025 (CUSIP No. 84756N AF6), | |
5.875% Notes due 2025 (CUSIP No. 29250R AW6) | 3.375% Senior Notes due 2026 (CUSIP No. 84756N AH2), | |
5.950% Notes due 2033 (CUSIP No. 29250R AD8) | 5.950% Senior Notes due 2043 (CUSIP No. 84756N AE9) and | |
6.300% Notes due 2034 (CUSIP No. 29250R AG1) | 4.500% Senior Notes due 2045 (CUSIP No. 84756N AG4) | |
7.500% Notes due 2038 (CUSIP No. 29250R AP1) | ||
5.500% Notes due 2040 (CUSIP No. 29250R AT3) | ||
7.375% Notes due 2045 (CUSIP No. 29250R AX4) |
Each Partnership will make a cash payment of $1.00 for each $1,000 principal amount of a series of its Notes (such payments, collectively, the "Consent Fee") to each holder of record of that series of Notes who has delivered (and not revoked) a consent to the applicable Amendments at or prior to the Expiration Time (as defined below) if such Partnership receives valid consents from the holders of at least a majority in principal amount of that series of outstanding Notes (the "Requisite Consents") and the other conditions to the Consent Solicitations are satisfied or waived, including the condition that the Requisite Consents shall have been obtained with respect to each other series of Notes. If the Requisite Consents with respect to a series of Notes are not received at the Expiration Time or the applicable Partnership abandons or terminates its Consent Solicitation with respect to that series of Notes prior to receiving the Requisite Consents as to that series of Notes, any consents received will be voided and no Consent Fee will be paid to the holders of that series of Notes. The Consent Solicitations will expire at 5:00 p.m., New York City time, on January 18, 2019 (the "Expiration Time"), unless extended by the applicable Partnership with respect to one or more series of Notes.
The purpose of the Consent Solicitations is to amend the indenture governing the EEP Notes and the indenture governing to the SEP Notes to modify the reporting covenant contained in each indenture with respect to each series of EEP Notes and SEP Notes to provide that, in the event Enbridge guarantees a series of such Notes, then in lieu of the respective Partnership's current reporting obligations under its indenture with respect to such series of Notes, Enbridge would be subject to reporting obligations under such indenture similar to those in the indenture governing Enbridge's U.S. dollar denominated senior notes. The Amendments will also add provisions, in the event Enbridge guarantees a series of Notes, implementing the unconditional guarantee of such series of Notes by Enbridge.
Each Partnership will be deemed to have accepted all consents delivered (and not revoked) by the holders of record of a series of its Notes upon execution of a supplemental indenture containing the applicable Amendments relating to that series of Notes as described in the Consent Solicitation Statement. Upon execution of such a supplemental indenture, all holders of record of that series of Notes, including non-consenting holders and all subsequent holders of that series of Notes, will be bound by the Amendments to such indenture.
This press release does not set forth all of the terms and conditions of the Consent Solicitations. Holders should carefully read the Consent Solicitation Statement related to the Consent Solicitations and any accompanying materials for a complete description of all terms and conditions of the Consent Solicitations before making any decision with respect to the Consent Solicitations. Additional information concerning the terms and conditions of the Consent Solicitations, and the procedure for delivering consents, may be obtained from the solicitation agents, J.P. Morgan Securities LLC at (866) 834-4666 (toll free) or (212) 834-3424 (collect) and MUFG Securities Americas Inc. (877) 744-4532 (toll free), (212) 405-7481 (collect) or (44) 207-577-4048/4218 (int'l). Copies of the Consent Solicitation Statement and related documents may be obtained from the information agent, D. F. King & Co., Inc., by calling (212) 269-5550 (collect for banks and brokers) or (800) 398-1247 (toll free for all others), or sending an email message to enbridge@dfking.com and requesting that a copy be provided to you.
Neither of the Partnerships, the applicable trustees, J.P. Morgan Securities LLC, MUFG Securities Americas Inc., D. F. King & Co., Inc. or any of their respective affiliates is making any recommendation as to whether or not holders of any series of Notes should deliver their consent to the applicable Amendments.
This announcement is for informational purposes only and is neither an offer to sell nor a solicitation of an offer to buy Notes or any other securities. This announcement is also not a solicitation of consents with respect to the Amendments or any securities. Each Partnership reserves the right to modify or terminate each of its Consent Solicitations and may do so without modifying or terminating any other Consent Solicitation. The solicitations of consents are not being made in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such solicitations under applicable state or foreign securities or "blue sky" laws.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words "assumes," "believes," "estimates," "expects," "guidance," "intends," "plans," "projects," and similar expressions that do not relate to historical matters. All statements other than statements of historical fact are forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond our control and could materially affect actual results, performance, or achievements. Important risk factors that may affect the Consent Solicitations and our business, results of operations and financial position are detailed in the Consent Solicitation Statement and in the reports we file with the U.S. Securities and Exchange Commission. Actual operating results may differ materially from what is expressed or forecast in this press release. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.
About Enbridge Inc.
Enbridge is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
About Enbridge Energy Partners, L.P.
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil transportation systems in the United States. Its principal crude oil system is the largest pipeline transporter of growing oil production from western Canada and the North Dakota Bakken formation. The system's deliveries to refining centers and connected carriers in the United States account for approximately 25 percent of total U.S. oil imports. Information about EEP is available on its website at www.enbridgepartners.com.
About Spectra Energy Partners, LP
Spectra Energy Partners, LP connects growing supply areas to high-demand markets for natural gas and crude oil. Its assets include approximately 16,000 miles of transmission pipelines, approximately 170 billion cubic feet of natural gas storage, and approximately 5.6 million barrels of crude oil storage. Information about SEP is available on its website at www.spectraenergypartners.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Michael Barnes
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:SOURCE Enbridge Inc.
Article Date
1/8/2019Enbridge Inc. and Enbridge Income Fund Announce Completion of the Exchange of Certain Enbridge Income Fund Medium Term Notes for Newly-Issued Enbridge Inc. Medium Term Notes
Source: PR Newswire
CALGARY, Dec. 21, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) and Enbridge Income Fund (the Fund) today announced the completion of a previously announced transaction to exchange certain series of the Fund's outstanding medium term notes (Fund Notes) for an equal principal amount of newly issued medium term notes of Enbridge (Enbridge Notes), having financial terms that are the same as the financial terms of the Fund Notes (the Note Exchange Transaction).
The following Enbridge Notes were issued in exchange for the previously held Fund Notes:
The completion of the Note Exchange Transaction further advances Enbridge's strategy to simplify and streamline its corporate funding structure and reduce structural subordination.
BMO Capital Markets acted as Solicitation Agent for the transaction, AST Trust Company (Canada) acted as the Tabulation Agent and D.F. King Canada acted as the Information Agent.
FORWARD-LOOKING STATEMENTS
Forward-looking information, or forward-looking statements, has been included in this news release to provide information about Enbridge and the Fund, including statements with respect to Enbridge's strategy to simplify and streamline its corporate funding structure and reduce structural subordination following completion of the Note Exchange Transaction. This information may not be appropriate for other purposes. Although Enbridge and the Fund believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual result, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the business and financial strength of Enbridge compared to that of the Fund.
Enbridge's and the Fund's forward-looking statements are subject to risks and uncertainties pertaining to the completion of the Note Exchange Transaction. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's and the Fund's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge and the Fund assume no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or the Fund or persons acting on their behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Enbridge Income Fund
The Fund is an unincorporated open-ended trust established by a trust indenture under the laws of the Province of Alberta. Through its indirect investment in Enbridge Income Partners LP (EIPLP), the Fund indirectly holds high quality, low risk energy infrastructure assets. EIPLP's assets consist of a portfolio of Canadian liquids transportation and storage assets, including the Canadian Mainline, the Regional Oil Sands System, the Canadian segment of the Southern Lights Pipeline, Class A units entitling the holder to receive defined cash flows from the U.S. segment of the Southern Lights Pipeline, and a 50% interest in the Alliance Pipeline, which transports natural gas from Canada to the U.S., and interests in more than 1,400 MW of renewable and alternative power generation assets. Further information about Enbridge Income Fund is available at www.enbridgeincomefund.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:SOURCE Enbridge Inc.
Article Date
12/21/201812/20/2018 - Enbridge Inc. Completes Mergers with Enbridge Energy Partners, L.P. and Enbridge Energy Management, L.L.C.
Enbridge Inc. Completes Mergers with Enbridge Energy Partners, L.P. and Enbridge Energy Management, L.L.C.
Source: PR Newswire
CALGARY and HOUSTON, Dec. 20, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge), on behalf of itself and certain of its wholly owned U.S. subsidiaries, Enbridge Energy Partners, L.P. (NYSE: EEP) (EEP) and Enbridge Energy Management, L.L.C. (NYSE: EEQ) (EEQ), today announced that they have completed the previously announced respective merger (the EEP Merger) of EEP with a wholly owned subsidiary of Enbridge, and the merger (the EEQ Merger) of EEQ with a wholly owned subsidiary of Enbridge, each pursuant to an Agreement and Plan of Merger dated as of September 17, 2018 (the EEP Merger Agreement and the EEQ Merger Agreement, respectively). The EEP Merger resulted in Enbridge (through a wholly owned subsidiary of Enbridge) acquiring all of the outstanding public Class A common units of EEP, and EEP becoming an indirect, wholly owned subsidiary of Enbridge, and the EEQ Merger resulted in Enbridge (through a wholly owned subsidiary of Enbridge) acquiring all of the outstanding public Listed Shares of EEQ, and EEQ becoming a direct, wholly owned subsidiary of Enbridge. The EEP Merger and EEQ Merger were approved by EEP unitholders and EEQ shareholders, respectively, at special meetings held on December 17, 2018.
Effective today, EEP unitholders of record as of the close of business on November 5, 2018 (other than Enbridge and its subsidiaries) are entitled to receive from Enbridge pursuant to the EEP Merger Agreement, for each EEP Class A common unit held, 0.3350 common shares of Enbridge, and EEQ shareholders of record as of the close of business on November 5, 2018 (other than Enbridge and its subsidiaries) are entitled to receive from Enbridge pursuant to the EEQ Merger Agreement, for each EEQ Listed Share held, 0.3350 common shares of Enbridge.
Also effective today, the EEP Class A common units and the EEQ Listed Shares will be suspended from trading on, and delisted from, the New York Stock Exchange (NYSE). Common shares of Enbridge will continue to trade on both the NYSE and the Toronto Stock Exchange under the symbol "ENB".
Forward Looking Statements
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project" and similar words and expressions are intended to identify such forward-looking statements. All statements other than statements of historical fact may constitute forward-looking statements. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the suspension of the EEP Class A common units and the EEQ Listed Shares from trading on, and delisted from, the NYSE. Although Enbridge, EEP and EEQ believe these statements are based on information and assumptions which are current, reasonable and complete, these statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward looking statements. By their nature, these statements involve a variety of assumptions, risks and uncertainties which may cause actual results to differ from those expressed or implied by such statements. Material assumptions include assumptions about the satisfaction of all conditions to the suspension from trading and delisting of the EEP Class A common units and the EEQ Listed Shares. While Enbridge, EEP and EEQ make these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge, EEP and EEQ assume no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Enbridge Energy Partners, L.P.
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil transportation systems in the United States. Its principal crude oil system is the largest pipeline transporter of growing oil production from western Canada and the North Dakota Bakken formation. The system's deliveries to refining centers and connected carriers in the United States account for approximately 25 percent of total U.S. oil imports. Information about Enbridge Energy Partners, L.P. is available on its website at www.enbridgepartners.com.
About Enbridge Energy Management, L.L.C.
Enbridge Energy Management, L.L.C. manages the business and affairs of Enbridge Energy Partners, L.P., and its sole asset is an approximate 21 percent limited partner interest in Enbridge Energy Partners, L.P. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. of Calgary, Alberta, Canada (NYSE: ENB) (TSX: ENB) is the general partner of Enbridge Energy Partners, L.P. and holds an approximate 35 percent interest in Enbridge Energy Partners, L.P. Enbridge Energy Management, L.L.C. is the delegate of the general partner of Enbridge Energy Partners, L.P.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Michael Barnes
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-completes-mergers-with-enbridge-energy-partners-lp-and-enbridge-energy-management-llc-300769267.html
SOURCE Enbridge Inc.
Article Date
12/20/2018Enbridge Energy Partners, L.P. and Enbridge Energy Management, L.L.C. Announce Approval of Proposed Mergers with Enbridge Inc.
Source: PR Newswire
HOUSTON, Dec. 17, 2018 /PRNewswire/ - Enbridge Energy Partners, L.P. (NYSE: EEP) (EEP or the Partnership) and Enbridge Energy Management, L.L.C. (NYSE: EEQ) (EEQ) today announced that EEP unitholders and EEQ shareholders, at special meetings held earlier today, respectively approved the previously announced separate merger agreements with respect to the merger (the EEP Merger) of EEP with a wholly owned subsidiary of Enbridge Inc. (TSX:ENB) (NYSE: ENB) (Enbridge), and the merger (the EEQ Merger) of EEQ with a wholly owned subsidiary of Enbridge, respectively.
Subject to customary closing conditions in the respective merger agreements, both the EEP Merger and the EEQ Merger are expected to close on December 20, 2018.
Pursuant to the Agreement and Plan of Merger, dated as of September 17, 2018, for the EEP Merger, Enbridge (through a wholly owned subsidiary) will acquire all of the outstanding public Class A common units of EEP, resulting in EEP becoming an indirect, wholly owned subsidiary of Enbridge. At the closing, each public Class A unit common of EEP will be exchanged for 0.335 common shares of Enbridge.
Pursuant to the Agreement and Plan of Merger, dated as of September 17, 2018, for the EEQ Merger, Enbridge (through a wholly owned subsidiary) will acquire all outstanding public Listed Shares of EEQ, resulting in EEQ becoming a direct, wholly owned subsidiary of Enbridge. At the closing, each public Listed Share of EEQ will be exchanged for 0.335 common shares of Enbridge.
A final report of the voting results for the EEP Merger will be made available on an EEP Current Report on Form 8-K filed on EDGAR at www.sec.gov., and a final report of the voting results for the EEQ Merger will be made available on an EEQ Current Report on Form 8-K filed on EDGAR at www.sec.gov.
Forward Looking Statements
This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements are based on the beliefs and assumptions of Enbridge, EEP, EEQ, Spectra Energy Partners, LP ("SEP"), and Enbridge Income Fund Holdings Inc. ("ENF" and, together with EEP, EEQ and SEP, the "Sponsored Vehicles"). These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast and similar expressions and include, but are not limited to, statements regarding the expected closing, consummation, completion, timing and benefits of the acquisitions of the Sponsored Vehicles (collectively, the "Proposed Transactions"), the expected synergies and equity holder value to result from the combined companies, the expected levels of cash distributions or dividends by the Sponsored Vehicles to their respective shareholders or unitholders, the expected levels of dividends by Enbridge to its shareholders, the expected financial results of Enbridge and its Sponsored Vehicles and their respective affiliates, and the future credit ratings, financial condition and business strategy of Enbridge, its Sponsored Vehicles and their respective affiliates.
Although Enbridge and its Sponsored Vehicles believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids ("NGL") and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labor and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for projects; anticipated in-service dates; weather; the timing and closing of dispositions; the realization of anticipated benefits and synergies of the Proposed Transactions; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of capital project execution on future cash flows; credit ratings; capital project funding; expected earnings; expected future cash flows; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for Enbridge's and its Sponsored Vehicles' services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments and may impact levels of demand for Enbridge's and its Sponsored Vehicles' services and cost of inputs, and are therefore inherent in all forward looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the impact of the Proposed Transactions, expected earnings and cash flow or estimated future dividends.
Forward looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. There are a number of important factors that could cause actual results to differ materially from those indicated in any forward looking statement including, but not limited to: the risk that the Proposed Transactions do not occur; negative effects from the pendency of the Proposed Transactions; the ability to realize expected cost savings and benefits from the Proposed Transactions; the timing to consummate the Proposed Transactions; whether the Sponsored Vehicles or Enbridge will produce sufficient cash flows to provide the level of cash distributions they expect with respect to their respective units or shares; outcomes of litigation and regulatory investigations, proceedings or inquiries; operating performance of Enbridge and its Sponsored Vehicles; regulatory parameters regarding Enbridge and its Sponsored Vehicles; other Enbridge dispositions; project approval and support; renewals of rights of way; weather, economic and competitive conditions; public opinion; changes in tax laws and tax rates; changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities; and any other risks and uncertainties discussed herein or in Enbridge's or its Sponsored Vehicles' other filings with Canadian and United States securities regulators. All forward-looking statements in this communication are made as of the date hereof and, except to the extent required by applicable law, neither Enbridge nor any of the Sponsored Vehicles assume any obligation to publicly update or revise any forward looking statements made in this communication or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward looking statements, whether written or oral, attributable to Enbridge, its Sponsored Vehicles or persons acting on their behalf, are expressly qualified in their entirety by these cautionary statements. The factors described above, as well as additional factors that could affect Enbridge's or any of its Sponsored Vehicles' respective forward looking statements, are described under the headings "Risk Factors" and "Cautionary Statement Regarding Forward Looking Information" in Enbridge's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which was filed with the U.S. Securities and Exchange Commission ("SEC") and Canadian securities regulators on February 16, 2018, each of EEP's, EEQ's and SEP's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which were filed with the SEC on February 16, 2018, ENF's Management's Discussion and Analysis for the year ended December 31, 2017, which was filed with Canadian securities regulators on February 16, 2018, and in Enbridge's and its Sponsored Vehicles' respective other filings made with the SEC and Canadian securities regulators, which are available via the SEC's website at http://www.sec.gov and at http://www.sedar.com, as applicable.
Additional Information about Enbridge and the Proposed Transactions and Where to Find It
This communication may be deemed solicitation material in respect of the Proposed Transactions. The registration statements of Enbridge in respect of the EEP, EEQ and SEP transactions were declared effective on November 9, 2018 and definitive proxy statements/consent statements, along with the applicable written consents or forms of proxy, of EEP, EEQ and SEP were filed with the SEC on November 9, 2018 and mailed to the respective security holders of EEP, EEQ and SEP on or about November 13, 2018. INVESTORS AND SECURITY HOLDERS OF ENBRIDGE AND ITS SPONSORED VEHICLES ARE URGED TO READ THE APPLICABLE REGISTRATION STATEMENT, DEFINITIVE PROXY OR CONSENT SOLICITATION STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS THAT ARE OR WILL BE FILED WITH THE SEC OR CANADIAN SECURITIES REGULATORS, AS APPLICABLE, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTIONS. Investors, shareholders and unitholders can obtain free copies of such documents containing important information about Enbridge and its Sponsored Vehicles, through the website maintained by the SEC at http://www.sec.gov or with Canadian securities regulators through the SEDAR website at http://www.sedar.com, as applicable. Copies can also be obtained, without charge, by directing a request to Enbridge Inc., 200, 425 – 1st Street S.W., Calgary, Alberta, Canada T2P 3L8, Attention: Investor Relations.
Participants in the Solicitations
Enbridge, each of its Sponsored Vehicles, and certain of their respective directors and executive officers, may be deemed participants in the solicitation of consents or proxies from the holders of equity securities of the Sponsored Vehicles in connection with the Proposed Transactions. Information about the directors and executive officers of Enbridge is set forth in its definitive proxy statement filed with the SEC on April 5, 2018. Information about the directors and executive officers of EEP, EEQ and SEP is set forth in EEP's, EEQ's and SEP's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, respectively, each of which was filed with the SEC on February 16, 2018. Information about the directors and executive officers of ENF is set forth in ENF's Annual Information Form for the fiscal year ended December 31, 2017, which was filed with Canadian securities regulators on February 16, 2018. Each of these documents can be obtained free of charge from the sources indicated above. Other information regarding the participants in any consent or proxy solicitation with respect to the Proposed Transactions and a description of their direct and indirect interests, by security holdings or otherwise, are contained in the relevant definitive proxy or consent statement/prospectus filed by Enbridge/EEP/EEQ and SEP with the SEC on November 9, 2018.
About Enbridge Energy Partners, L.P.
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil transportation systems in the United States. Its principal crude oil system is the largest pipeline transporter of growing oil production from western Canada and the North Dakota Bakken formation. The system's deliveries to refining centers and connected carriers in the United States account for approximately 25 percent of total U.S. oil imports. Enbridge Energy Partners, L.P. is traded on the New York Stock Exchange under the symbol EEP; information about the partnership is available on its website at www.enbridgepartners.com.
About Enbridge Energy Management, L.L.C.
Enbridge Energy Management, L.L.C. manages the business and affairs of the Partnership, and its sole asset is an approximate 21 percent limited partner interest in the Partnership. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. of Calgary, Alberta, Canada (NYSE: ENB) (TSX: ENB) is the general partner of the Partnership and holds an approximate 35 percent interest in the Partnership. Enbridge Management is the delegate of the general partner of the Partnership.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media | Investment Community |
Michael Barnes | Jonathan Gould |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com |
View original content:http://www.prnewswire.com/news-releases/enbridge-energy-partners-lp-and-enbridge-energy-management-llc-announce-approval-of-proposed-mergers-with-enbridge-inc-300767576.html
SOURCE Enbridge Energy Partners, L.P.
Article Date
12/17/2018Enbridge Inc. and Spectra Energy Partners, LP Complete Merger
Source: PR Newswire
CALGARY and HOUSTON, Dec. 17, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge), on behalf of itself and certain of its wholly owned U.S. subsidiaries, and Spectra Energy Partners, LP (NYSE: SEP) (SEP) today announced that they have completed the previously announced merger (the Merger) pursuant to an Agreement and Plan of Merger dated as of August 24, 2018 (the Merger Agreement). The Merger resulted in Enbridge (through a wholly owned subsidiary) acquiring all of the outstanding public common units of SEP and SEP becoming an indirect, wholly owned subsidiary of Enbridge.
Effective today, SEP unitholders of record as of the close of business on November 5, 2018 (other than Enbridge and its subsidiaries) are entitled to receive from Enbridge pursuant to the Merger Agreement, for each SEP common unit held, 1.111 common shares of Enbridge.
Also effective today, the SEP common units will be suspended from trading on, and delisted from, the New York Stock Exchange (NYSE). Common shares of Enbridge will continue to trade on both the NYSE and the Toronto Stock Exchange under the symbol "ENB".
Forward Looking Statements
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project" and similar words and expressions are intended to identify such forward-looking statements. All statements other than statements of historical fact may constitute forward-looking statements Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the suspension of the SEP common units from trading on, and delisting from, the NYSE. Although Enbridge and SEP believe these statements are based on information and assumptions which are current, reasonable and complete, these statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, risks and uncertainties which may cause actual results to differ from those expressed or implied by such statements. Material assumptions include assumptions about the satisfaction of all conditions to the suspension from trading and delisting of the SEP common units. While Enbridge and SEP make these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge and SEP assume no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Spectra Energy Partners, LP
Spectra Energy Partners, LP is one of the largest pipeline master limited partnerships in the United States and connects growing supply areas to high-demand markets for natural gas and crude oil. These assets include approximately 16,000 miles of transmission pipelines, approximately 170 billion cubic feet of natural gas storage, and approximately 5.6 million barrels of crude oil storage. Information about Spectra Energy Partners, LP is available on its website at www.spectraenergypartners.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Michael Barnes
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-and-spectra-energy-partners-lp-complete-merger-300767348.html
SOURCE Enbridge Inc.
Article Date
12/17/2018Enbridge Energy Partners Expected to be Removed from the Alerian Index Series
Source: PR Newswire
DALLAS, Dec. 13, 2018 /PRNewswire/ -- Alerian announced today that Enbridge Energy Partners (NYSE: EEP) is expected to be removed from the Alerian Midstream Energy Index (AMNA), Alerian US Midstream Energy Index (AMUS), Alerian MLP Index (AMZ), Alerian MLP Equal Weight Index (AMZE), and Alerian MLP Infrastructure Index (AMZI) in a special rebalancing.
Special rebalancings are triggered by corporate actions such as mergers, bankruptcies, and liquidations. Pending shareholder approval, EEP will cease to trade due to its merger with Enbridge Inc (TSX: ENB). If approved, the rebalancing will take place after market close on Wednesday, December 19.
Each index will be rebalanced in accordance with its existing methodology. Constituent additions to and deletions from an index do not reflect an opinion by Alerian on the investment merits of the respective securities.
For more information about Alerian's indices, including methodology, please visit: www.alerian.com/indices.
About Alerian
Alerian equips investors to make informed decisions about energy infrastructure and Master Limited Partnerships (MLPs). Its benchmarks are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of November 30, 2018, over $13 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. Visit alerian.com to learn more.
View original content:http://www.prnewswire.com/news-releases/enbridge-energy-partners-expected-to-be-removed-from-the-alerian-index-series-300765343.html
SOURCE Alerian
Article Date
12/13/2018Enbridge Inc. Announces 10 Percent Quarterly Dividend Increase for 2019
Source: PR Newswire
CALGARY, Dec. 11, 2018 /PRNewswire/ - Enbridge Inc. (TSX, NYSE: ENB) (Enbridge or the Company) announced today that its Board of Directors has declared a quarterly dividend of $0.73800 per common share, payable on March 1, 2019 to shareholders of record on February 15, 2019. The declared dividend represents a 10 percent increase from the prior quarterly rate and the twenty-fourth consecutive year in which the Company has increased its common share dividend.
DIVIDEND DECLARATION
On December 10, 2018, the Enbridge Board of Directors declared the following quarterly dividends. All dividends are payable on March 1, 2019 to shareholders of record on February 15, 2019.
Common Shares | $0.73800 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C | $0.25459 |
Preference Shares, Series D | $0.27875 |
Preference Shares, Series F | $0.29306 |
Preference Shares, Series H | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.31788 |
Preference Shares, Series P | $0.25000 |
Preference Shares, Series R | $0.25000 |
Preference Shares, Series 1 | US$0.37182 |
Preference Shares, Series 3 | $0.25000 |
Preference Shares, Series 5 | US$0.27500 |
Preference Shares, Series 7 | $0.27500 |
Preference Shares, Series 9 | $0.27500 |
Preference Shares, Series 11 | $0.27500 |
Preference Shares, Series 13 | $0.27500 |
Preference Shares, Series 15 | $0.27500 |
Preference Shares, Series 17 | $0.321875 |
Preference Shares, Series 19 | $0.30625 |
About Enbridge Inc.
Enbridge is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media | Investment Community |
Jesse Semko | Jonathan Gould |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com |
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-announces-10-percent-quarterly-dividend-increase-for-2019-300763088.html
SOURCE Enbridge Inc.
Article Date
12/11/2018Enbridge Completes 2018 Strategic and Financial Outlook; Reaffirms 10% Annual Growth Guidance Through 2020 and Announces 10% Dividend Increase for 2019
Source: PR Newswire
CALGARY, Dec. 11, 2018 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB)(NYSE:ENB) today announced an update to its strategic plan and longer range financial outlook. The following summarizes the key elements of the updated plan and related actions, which will be further discussed at the Company's investor conference today in New York.
Highlights
Strategic Priorities
Enbridge established several strategic priorities last year in order to complete its transformation to a low-risk regulated pipeline and utility profile. In 2018, the company re-focused on its three strong core businesses, each with a best-in-class asset base: Gas Transmission, Liquids Pipelines, and Regulated Gas Distribution. Accelerated de-leveraging actions and targets were achieved ahead of schedule while the Company continued to execute one of the pipeline industry's largest commercially secured growth capital programs. Enbridge's key strategic priorities for 2019 and beyond remain largely unchanged:
Commenting on the strategic plan and outlook, Al Monaco, President and CEO of Enbridge noted: "2018 has been a year of significant accomplishments for our Company. We shed non-core lines of business, de-levered the balance sheet, advanced our secured growth projects, streamlined our corporate structure, and with all that we expect to generate DCF per share in the upper half of our 2018 guidance range and maintain our previous three-year guidance range through 2020."
"Our strategic positioning as a low-risk regulated pipeline and utility business, combined with the strategic priorities we established last year, are bearing fruit. We will remain focused on these priorities while placing an even greater emphasis on capturing the very best of a large suite of potential organic growth opportunities that we see being driven by our great strategic position and excellent energy fundamentals, particularly growing energy exports from North America.
"We'll continue to apply the same type of discipline around capital allocation that we exercised this year as we created financial flexibility by selling assets that weren't core to our strategy at strong valuations.
"We'll also look to continue to optimize the performance of our core business. It's a top priority to further extend the consistent long-term growth track record of our Liquids business by providing new win-win tolling options and low-cost throughput enhancements on our Mainline."
In summarizing the strategic update, Mr. Monaco commented, "We will stay focused on our strategic priorities as we look to build on the success of 2018. We're confident our best-in-class assets and low-risk business model will generate shareholder value as we continue to deliver on our plans."
Guidance, Dividend Increase and Long-Term Growth Outlook
Enbridge continues to expect 2018 DCF per share in the upper half of its guidance range of $4.15 to $4.45 per share. The 2019 and 2020 mid-point of the projected range of DCF is unchanged from last year at $4.45 per share and $5.00 per share, respectively. With this robust outlook, Enbridge has announced a 10% dividend increase for 2019 and anticipates another 10% increase for 2020. The 2019 quarterly dividend of $0.738 per share will be payable on March 1, 2019, to shareholders of record on February 15, 2019.
Beyond 2020, Enbridge is targeting to achieve annual DCF per share growth in the range of 5%-7%, driven by an attractive suite of organic growth prospects within its three core businesses that can be self-funded using available cash generated by these businesses and managing leverage within targets designed to maintain strong investment grade credit ratings.
Liquids Mainline Tolling and Pipeline Throughput Enhancements
Enbridge is working hard to provide solutions for Western Canadian pipeline capacity shortages while offering shippers greater long-term certainty. The company is in discussions with its shippers for a new Mainline tolling agreement to replace the current 10-year Competitive Tolling Settlement (CTS) that expires in mid-2021. Key features of the toll proposal under discussion include priority access for contracted volume, contract terms of up to 20 years, and spot capacity availability of at least 10%. Discussions will continue in 2019 with a targeted implementation date aligning with the expiry of the CTS agreement in mid-2021.
Enbridge is also developing several low-cost throughput enhancements as potential solutions for the Western Canadian crude oil transportation bottleneck. The Company believes that it can increase throughput by 50 to 100 kbpd on a short-term basis by the end of the first half of 2019. Completion of the Line 3 replacement project will create another 370 kbpd of capacity late next year. Beyond that, the Company is advancing another 450 kbpd of throughput optimization initiatives, capacity restoration and supply access for Western Canadian Sedimentary Basin barrels.
Mr. Monaco commented, "Enbridge has a strong track record of delivering additional throughput to the basin, through creative solutions. We've created 450 kbpd of enhancements since 2015. These types of projects are attractive to both our customers and our shareholders as they are low-cost, carry minimal permitting risk and have a much shorter development cycle. I'm confident that beyond 2020, further optimization and market extensions to the U.S. Gulf Coast will drive continued sustained growth for our Liquids Pipelines business."
New Growth Capital Investments
Today Enbridge is announcing $1.8 billion of new accretive growth capital investments:
"These investments are directly in the middle of our investment fairway and strategy," said Mr. Monaco. "They further build out our liquids and natural gas franchises under contracted low-risk commercial frameworks. In combination with currently secured growth projects and organic expansion opportunities under development, they will support the near-term and post-2020 outlook."
Structural Simplification
Enbridge continues to make progress on the buy-in of the public's interest in its Sponsored Vehicles and related debt restructuring. The buy-in of Enbridge Income Fund Holdings (ENF) was completed on November 8, 2018. The buy-in of Spectra Energy Partners LP (SEP) will close the week of December 17, 2018, in accordance with the consent solicitation process established for that transaction. The unitholder and shareholder votes for Enbridge Energy Partners, L.P. (EEP) and Enbridge Energy Management, LLC (EEQ) are scheduled for December 17.
The buy-ins provide an opportunity for the Company to further simplify its debt financing structure and strategy upon elimination of the public's interest in its Sponsored Vehicles. As announced last week, a majority of holders of $1.6 billion of term debt securities of Enbridge Income Fund have agreed to exchange their notes for notes of Enbridge Inc. with identical coupons and terms to maturity. The completion of this debt exchange is expected to occur prior to year-end. After the exchange, Enbridge Income Fund will no longer raise debt externally from third parties.
Upon closing of their respective buy-in transactions, external debt issuance by SEP and EEP would also be discontinued. Subject to the buy-in transactions being completed, the Company also plans to implement a cross guarantee arrangement whereby remaining outstanding senior term debt obligations of EEP and SEP would be guaranteed by Enbridge Inc., while each of SEP and EEP would each provide "upstream" guarantees of Enbridge Inc.'s senior term debt obligations.
The cross guarantees would be implemented in conjunction with a consent solicitation process to amend certain covenants in the EEP and SEP term debt trust indentures. The Company believes that these changes to its debt issuance structure and funding strategy will substantially reduce structural subordination and further enhance the credit profile of the consolidated Enbridge group.
Details of Enbridge's Investor Conference:
Enbridge will hold its annual investor conference to discuss the Company's strategic plan and financial outlook at 8:30 a.m. ET on Tuesday, December 11 in New York City.
The conference will be webcast live on the Company's website and can be accessed via the following link: https://www.enbridge.com/investment-center/events-and-presentations
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
Forward Looking Information
This news release includes certain forward looking statements and information (FLI) to provide potential investors and shareholders of Enbridge Inc. (Enbridge or the Company) with information about Enbridge and its subsidiaries and affiliates, including management's assessment of their future plans and operations, which FLI may not be appropriate for other purposes. FLI is typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words suggesting future outcomes or statements regarding an outlook. All statements other than statements of historical fact may be FLI. In particular, this presentation contains FLI pertaining to, but not limited to, information with respect to the following: strategic priorities and guidance; expected DCF and DCF/share; expected free cash flow; annual dividend growth and anticipated dividend increases; financial flexibility; funding requirements and strategy; financing sources, plans and targets; credit profile; capital allocation; secured growth projects and future growth, development and expansion program and opportunities; future business prospects and performance, including organic growth outlook; closing of announced financing, acquisitions, dispositions, amalgamations and corporate simplification and sponsored vehicle transactions, including sponsored vehicle debt restructuring, and the timing, expected benefits and impact thereof; synergies, integration and streamlining plans; project execution, including capital costs, expected construction and in service dates and expected regulatory approvals; system throughput, capacity, expansions and potential future capacity solutions, including optimizations and reversals; tolling proposals and the timing and impact thereof; and industry and market conditions.
Although we believe that the FLI is reasonable based on the information available today and processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. By its nature, FLI involves a variety of assumptions, which are based upon factors that may be difficult to predict and that may involve known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by the FLI, including, but not limited to, the following: expected future DCF and DCF per share; estimated future dividends; financial strength and flexibility; debt and equity market conditions, including the ability to access capital markets on favourable terms or at all; cost of debt and equity capital; credit ratings; capital project funding; the expected supply of, demand for and prices of crude oil, natural gas, natural gas liquids and renewable energy; economic and competitive conditions; exchange rates; inflation; interest rates; changes in tax laws and tax rates; changes in trade agreements; completion of growth projects; anticipated construction and in-service dates; availability and price of labour and construction materials; operational reliability and performance; changes in tariff rates; customer and regulatory approvals; maintenance of customer and other stakeholder support and regulatory approvals for projects; weather; governmental legislation; announced and potential financing, acquisition, disposition, amalgamation and corporate simplification transactions, and the timing and impact thereof; impact of capital project execution on the Company's future cash flows; the ability of management to execute key priorities; and the effectiveness of various actions resulting from the Company's strategic priorities. We caution that the foregoing list of factors is not exhaustive. Additional information about these and other assumptions, risks and uncertainties can be found in applicable filings with Canadian and U.S. securities regulators (including the most recently filed Form 10-K and any subsequently filed Form 10-Q, as applicable). Due to the interdependencies and correlation of these factors, as well as other factors, the impact of any one assumption, risk or uncertainty on FLI cannot be determined with certainty.
Except to the extent required by applicable law, we assume no obligation to publicly update or revise any FLI made in this presentation or otherwise, whether as a result of new information, future events or otherwise. All FLI in this presentation and all subsequent FLI, whether written or oral, attributable to Enbridge, or any of its subsidiaries or affiliates, or persons acting on their behalf, are expressly qualified in its entirety by these cautionary statements.
Non-GAAP Measures
This news release makes reference to non-GAAP measures, including distributable cash flow (DCF) and DCF per share. DCF is defined as cash flow provided by operating activities before changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to non-controlling interests and redeemable non-controlling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management uses DCF to assess performance and to set its dividend or distribution payout target. Management believes the presentation of these measures gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of Enbridge and its subsidiaries and affiliates. Reconciliations of forward looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly with estimates for certain contingent liabilities, and estimating non-cash unrealized derivative fair value losses and gains and ineffectiveness on hedges which are subject to market variability and therefore a reconciliation is not available without unreasonable effort.
These measures are not measures that have a standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and may not be comparable with similar measures presented by other issuers. A reconciliation of historical non-GAAP measures to the most directly comparable GAAP measures is available on the Company's website. Additional information on non-GAAP measures may be found in the Company's earnings news releases or in additional information on the Company's website, www.sedar.com or www.sec.gov.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media | Investment Community |
Jesse Semko | Jonathan Gould |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 |
Email: media@enbridge.com |
View original content:SOURCE Enbridge Inc.
Article Date
12/11/201812/6/2018 - Spectra Energy Partners, LP Unitholder Consent Solicitation Period to Expire on December 12, 2018
Spectra Energy Partners, LP Unitholder Consent Solicitation Period to Expire on December 12, 2018
Source: PR Newswire
HOUSTON, TX, Dec. 6, 2018 /PRNewswire/ - Spectra Energy Partners, LP (NYSE: SEP) (SEP) today announced that the period for unitholders of SEP to return their written consents with respect to the merger (the Merger) of SEP and a wholly owned subsidiary of Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) will expire on December 12, 2018.
The Merger will be effected pursuant to an Agreement and Plan of Merger dated as of August 24, 2018 (the Merger Agreement) and will result in Enbridge (through a wholly owned subsidiary) acquiring all of the outstanding public common units of SEP and SEP becoming an indirect, wholly owned subsidiary of Enbridge. Pursuant to the Merger Agreement, at the closing, each public common unit of SEP will be exchanged for 1.111 common shares of Enbridge.
The Board of Directors of the general partner of SEP recommends that SEP unitholders approve the Merger and the Merger Agreement. In addition, Institutional Shareholder Services Inc. (ISS), a leading independent proxy advisory firm, has also recommended that SEP unitholders approve the Merger and the Merger Agreement.
SEP unitholders of record as of the close of business on November 5, 2018, are entitled to execute and deliver to SEP a written consent with respect to the Merger and the Merger Agreement. SEP encourages its unitholders to return their written consents as soon as possible but no later than 11:59 p.m. (Eastern Time) on December 12, 2018. Copies of the consent solicitation statement/prospectus related to the transaction and related documents are available on EDGAR at www.sec.gov.
Unitholders who have questions or require assistance in submitting their written consents may direct their inquiry to the proxy solicitation agent, D.F. King & Co., Inc., by calling toll free in North America at (888) 777-0320 or by email at enbridge@dfking.com.
The transaction is expected to close December 17, 2018, pursuant to the terms of the Merger Agreement.
FORWARD-LOOKING INFORMATION
This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements are based on the beliefs and assumptions of Enbridge, Enbridge Energy Partners, L.P. ("EEP"), Enbridge Energy Management, L.L.C. ("EEQ"), SEP, and Enbridge Income Fund Holdings Inc. ("ENF" and, together with EEP, EEQ and SEP, the "Sponsored Vehicles"). These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast and similar expressions and include, but are not limited to, statements regarding the expected closing, consummation, completion, timing and benefits of the acquisitions of the Sponsored Vehicles (collectively, the "Proposed Transactions"), the expected synergies and equityholder value to result from the combined companies, the expected levels of cash distributions or dividends by the Sponsored Vehicles to their respective shareholders or unitholders, the expected levels of dividends by Enbridge to its shareholders, the expected financial results of Enbridge and its Sponsored Vehicles and their respective affiliates, and the future credit ratings, financial condition and business strategy of Enbridge, its Sponsored Vehicles and their respective affiliates.
Although Enbridge and its Sponsored Vehicles believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids ("NGL") and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labor and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for projects; anticipated in-service dates; weather; the timing and closing of dispositions; the realization of anticipated benefits and synergies of the Proposed Transactions; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of capital project execution on future cash flows; credit ratings; capital project funding; expected earnings; expected future cash flows; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for Enbridge's and its Sponsored Vehicles' services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments and may impact levels of demand for Enbridge's and its Sponsored Vehicles' services and cost of inputs, and are therefore inherent in all forward looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the impact of the Proposed Transactions, expected earnings and cash flow or estimated future dividends.
Forward looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. There are a number of important factors that could cause actual results to differ materially from those indicated in any forward looking statement including, but not limited to: the risk that the Proposed Transactions do not occur; negative effects from the pendency of the Proposed Transactions; the ability to realize expected cost savings and benefits from the Proposed Transactions; the timing to consummate the Proposed Transactions; whether the Sponsored Vehicles or Enbridge will produce sufficient cash flows to provide the level of cash distributions they expect with respect to their respective units or shares; outcomes of litigation and regulatory investigations, proceedings or inquiries; operating performance of Enbridge and its Sponsored Vehicles; regulatory parameters regarding Enbridge and its Sponsored Vehicles; other Enbridge dispositions; project approval and support; renewals of rights of way; weather, economic and competitive conditions; public opinion; changes in tax laws and tax rates; changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities; and any other risks and uncertainties discussed herein or in Enbridge's or its Sponsored Vehicles' other filings with Canadian and United States securities regulators. All forward-looking statements in this communication are made as of the date hereof and, except to the extent required by applicable law, neither Enbridge nor any of the Sponsored Vehicles assume any obligation to publicly update or revise any forward looking statements made in this communication or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward looking statements, whether written or oral, attributable to Enbridge, its Sponsored Vehicles or persons acting on their behalf, are expressly qualified in their entirety by these cautionary statements. The factors described above, as well as additional factors that could affect Enbridge's or any of its Sponsored Vehicles' respective forward looking statements, are described under the headings "Risk Factors" and "Cautionary Statement Regarding Forward Looking Information" in Enbridge's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which was filed with the U.S. Securities and Exchange Commission ("SEC") and Canadian securities regulators on February 16, 2018, each of EEP's, EEQ's and SEP's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which were filed with the SEC on February 16, 2018, ENF's Management's Discussion and Analysis for the year ended December 31, 2017, which was filed with Canadian securities regulators on February 16, 2018, and in Enbridge's and its Sponsored Vehicles' respective other filings made with the SEC and Canadian securities regulators, which are available via the SEC's website at http://www.sec.gov and at http://www.sedar.com, as applicable.
Additional Information about Enbridge and the Proposed Transactions and Where to Find It
This communication may be deemed solicitation material in respect of the Proposed Transactions. The registration statements of Enbridge in respect of the EEP, EEQ and SEP transactions were declared effective on November 9, 2018 and definitive proxy statements/consent statements, along with the applicable written consents or forms of proxy, of EEP, EEQ and SEP were filed with the SEC on November 9, 2018 and mailed to the respective security holders of EEP, EEQ and SEP on or about November 13, 2018. INVESTORS AND SECURITY HOLDERS OF ENBRIDGE AND ITS SPONSORED VEHICLES ARE URGED TO READ THE APPLICABLE REGISTRATION STATEMENT, DEFINITIVE PROXY OR CONSENT SOLICITATION STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS THAT ARE OR WILL BE FILED WITH THE SEC OR CANADIAN SECURITIES REGULATORS, AS APPLICABLE, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTIONS. Investors, shareholders and unitholders can obtain free copies of such documents containing important information about Enbridge and its Sponsored Vehicles, through the website maintained by the SEC at http://www.sec.gov or with Canadian securities regulators through the SEDAR website at http://www.sedar.com, as applicable. Copies can also be obtained, without charge, by directing a request to Enbridge Inc., 200, 425 – 1st Street S.W., Calgary, Alberta, Canada T2P 3L8, Attention: Investor Relations.
Participants in the Solicitations
Enbridge, each of its Sponsored Vehicles, and certain of their respective directors and executive officers, may be deemed participants in the solicitation of consents or proxies from the holders of equity securities of the Sponsored Vehicles in connection with the Proposed Transactions. Information about the directors and executive officers of Enbridge is set forth in its definitive proxy statement filed with the SEC on April 5, 2018. Information about the directors and executive officers of EEP, EEQ and SEP is set forth in EEP's, EEQ's and SEP's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, respectively, each of which was filed with the SEC on February 16, 2018. Information about the directors and executive officers of ENF is set forth in ENF's Annual Information Form for the fiscal year ended December 31, 2017, which was filed with Canadian securities regulators on February 16, 2018. Each of these documents can be obtained free of charge from the sources indicated above. Other information regarding the participants in any consent or proxy solicitation with respect to the Proposed Transactions and a description of their direct and indirect interests, by security holdings or otherwise, are contained in the relevant definitive proxy or consent statement/prospectus filed by Enbridge/EEP/EEQ and SEP with the SEC on November 9, 2018.
About Spectra Energy Partners, LP
Spectra Energy Partners, LP is one of the largest pipeline master limited partnerships in the United States and connects growing supply areas to high-demand markets for natural gas and crude oil. These assets include approximately 16,000 miles of transmission pipelines, approximately 170 billion cubic feet of natural gas storage, and approximately 5.6 million barrels of crude oil storage. Spectra Energy Partners, LP is traded on the New York Stock Exchange under the symbol SEP; information about the company is available on its website at www.spectraenergypartners.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Michael Barnes
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/spectra-energy-partners-lp-unitholder-consent-solicitation-period-to-expire-on-december-12-2018-300761487.html
SOURCE Spectra Energy Partners, LP
Article Date
12/6/2018Enbridge Announces Conversion Results for Series N Preferred Shares
Source: PR Newswire
CALGARY, Nov. 16, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that none of Enbridge's outstanding Cumulative Redeemable Preference Shares, Series N (Series N Shares) will be converted into Cumulative Redeemable Preference Shares, Series O of Enbridge (Series O Shares) on December 1, 2018.
After taking into account all conversion notices received from holders of its outstanding Series N Shares by the November 16, 2018 deadline for the conversion of the Series N Shares into Series O Shares, less than the 1,000,000 Series N Shares required to give effect to conversions into Series O Shares were tendered for conversion.
About Enbridge Inc.
Enbridge is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-conversion-results-for-series-n-preferred-shares-300752426.html
SOURCE Enbridge Inc.
Article Date
11/16/2018Enbridge Inc. and Enbridge Income Fund Announce Proposal to Exchange Enbridge Income Fund Medium Term Notes for Newly-Issued Enbridge Inc. Medium Term Notes
Source: PR Newswire
CALGARY, Nov. 14, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) and Enbridge Income Fund (the Fund) today announced that they are seeking the approval of the holders (Fund Noteholders) of certain series of the Fund's medium term notes referenced below (Fund Notes) to exchange Fund Notes for an equal principal amount of newly issued medium term notes of Enbridge (Enbridge Notes), having financial terms that are the same as the financial terms of the Fund Notes (the Note Exchange Transaction). The Enbridge Notes will be governed by the Enbridge medium term note trust indenture (Enbridge MTN Indenture) dated October 20, 1997, as amended and supplemented, which governs Enbridge's other senior Canadian dollar unsecured debt securities.
The Note Exchange Transaction follows the completion, on November 8, 2018, of the plan of arrangement (the Arrangement) between Enbridge and Enbridge Income Fund Holdings Inc. (ENF) pursuant to which Enbridge acquired all of the issued and outstanding ENF shares not already owned by Enbridge, resulting in ENF becoming a wholly-owned subsidiary of Enbridge. The Note Exchange Transaction is a natural follow on step that will further advance Enbridge's strategy to simplify and streamline its corporate funding structure and reduce structural subordination.
The Fund believes the Note Exchange Transaction will be beneficial to holders of the Fund Notes for a number of reasons:
The Fund is soliciting consents and proxies from Fund Noteholders, as a single class, to pass an extraordinary resolution to approve the Note Exchange Transaction (the Note Exchange Resolution):
The following Fund Notes will be eligible to participate:
The Fund will mail a management information circular and consent solicitation statement (the Circular) and related proxy and consent solicitation materials to holders of Fund Notes in connection with the Consent Solicitation and Meeting. The Fund will file these materials today with the applicable Canadian securities regulatory authorities which will then be made available on SEDAR at www.sedar.com.
Fund Noteholders are asked to submit a proxy and consent solicitation form by noon (ET) on Wednesday, December 5, 2018 and all voting Fund Noteholders will receive a payment of $0.25 for each $1,000.00 principal amount of Fund Notes held if the Note Exchange Resolution is approved and the Note Exchange Transaction is completed, regardless of whether or not each Fund Noteholder consented and/or voted in favour of the Note Exchange Resolution.
Other Information
BMO Capital Markets is the Solicitation Agent for the transaction, AST Trust Company (Canada) is retained as the Tabulation Agent and D.F. King Canada is retained as the Information Agent.
Fund Noteholders with questions may contact the Information Agent by calling toll free in North America at 1-800-294-5107 (1-212-771-1133 by collect call) or by email at inquiries@dfking.com. Copies of the Circular and any other proxy and consent solicitation materials may also be obtained free of charge upon request made to the Information Agent.
FORWARD-LOOKING STATEMENTS
Forward-looking information, or forward-looking statements, has been included in this news release to provide information about the Fund, including statements with respect to: the date and timing of the Meeting, the mailing of the Circular and related proxy and consent solicitation materials to Fund Noteholders, the approval by Fund Noteholders of the Note Exchange Resolution, the completion of the Note Exchange Transaction, the expected benefits of the Note Exchange Transaction to the Fund Noteholders, the terms of the Enbridge Notes to be issued to Fund Noteholders in exchange for their Fund Notes, and the payment to be made to Fund Noteholders who vote on the Note Exchange Resolution, if the Note Exchange Resolution is approved and the Note Exchange Transaction is completed. This information may not be appropriate for other purposes. Although the Fund believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual result, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the approval of the Note Exchange Resolution, the completion of the Note Exchange Transaction and the business and financial strength of Enbridge compared to that of the Fund.
The Fund's forward-looking statements are subject to risks and uncertainties pertaining to the approval of the Note Exchange Resolution and the completion of the Note Exchange Transaction. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and the Fund's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, the Fund assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to the Fund or persons acting on the Fund's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Enbridge Income Fund
The Fund is an unincorporated open-ended trust established by a trust indenture under the laws of the Province of Alberta. Through its indirect investment in Enbridge Income Partners LP (EIPLP), the Fund indirectly holds high quality, low risk energy infrastructure assets. EIPLP's assets consist of a portfolio of Canadian liquids transportation and storage assets, including the Canadian Mainline, the Regional Oil Sands System, the Canadian segment of the Southern Lights Pipeline, Class A units entitling the holder to receive defined cash flows from the U.S. segment of the Southern Lights Pipeline, and a 50% interest in the Alliance Pipeline, which transports natural gas from Canada to the U.S., and interests in more than 1,400 MW of renewable and alternative power generation assets. Further information about Enbridge Income Fund is available at www.enbridgeincomefund.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:SOURCE Enbridge Inc.
Article Date
11/14/201811/2/2018 - Enbridge Inc. Reports Strong Third Quarter 2018 Results and Significant Progress on Strategic Priorities
Enbridge Inc. Reports Strong Third Quarter 2018 Results and Significant Progress on Strategic Priorities
Source: PR Newswire
CALGARY, Nov. 2, 2018 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB) (NYSE:ENB) today reported third quarter 2018 financial results and provided a quarterly business update.
THIRD QUARTER 2018 HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
CEO COMMENT
"It was another very productive quarter, both from a financial and strategic perspective," commented Al Monaco, President and Chief Executive Officer of Enbridge.
"The strong financial results in the third quarter underscores the quality and predictability of our business model. The 13% year over year increase in distributable cash flow reflects a growing contribution from each of our core businesses driven by strong operating performance, optimization of throughput on existing assets, synergy realization from the Spectra acquisition and the successful execution of new projects. As a result, we remain confident in achieving our financial guidance for 2018, and expect to end up in the top half of the DCF per share guidance range.
"From a strategic standpoint, we've made great progress in achieving the key priorities that we laid out in our three year business plan last November. In addition to delivering solid distributable cash flow and earnings per share growth, those priorities included executing significant non-core asset sales, accelerating balance sheet de-leveraging and simplifying the overall corporate structure.
"This past quarter we received close to $6 billion of proceeds from the $7.5 billion of non-core asset sales agreements announced this year. These sales will further focus our business on low risk pipeline and utility assets and a significant portion of the proceeds will immediately be put towards debt repayment. At quarter-end our consolidated Debt to EBITDA metric was down to 4.7x, well ahead of our year end target of 5.0x.
"In addition, we reached agreement with each of the Independent Committees on terms for the buy-in of our sponsored vehicles. These transactions are good for sponsored vehicle unitholders and Enbridge shareholders, all of whom will benefit from bringing in these core assets under one simpler corporate structure with greater diversification, more retained cash flow, and an enhanced credit profile.
"Execution of our $22 billion secured capital program also remains nicely on track. We're very pleased that the Nexus natural gas pipeline was placed into service in October and the Valley Crossing natural gas pipeline is now complete and available for service as of this week. These two projects are good examples of the growth from the premium natural gas franchise we acquired through the Spectra transaction.
"The Minnesota PUC has now issued its Written Orders for the Certificate of Need and Route Permit for the Line 3 Replacement Project. We expect to begin construction activities in Minnesota in the first quarter of 2019, bringing the full project into service in the second half of the year.
"Finally, the pipeline rupture on the T-South segment of our BC Pipeline System in early October serves as an important reminder as to why the safety of our systems has and always will remain our number one priority. Fortunately there were no injuries or long-term environmental impacts to the site and we were able to quickly restore partial service to our customers. I'd like to thank the emergency responders for their efforts and the communities and First Nations in the region for their support and cooperation throughout the incident response.
"In summary, thanks to our ongoing strong business performance and the progress we're making on our strategic priorities, including the execution of the Line 3 project, we continue to expect a 10% compound annual growth in cash flow and dividends per share through 2020. We look forward to a more in-depth update to the investment community on our business and financial outlook at our annual investor conference on December 11th," concluded Mr. Monaco.
FINANCIAL RESULTS SUMMARY
Financial results for the three and nine months ended September 30, 2018, are summarized in the table below:
Three months ended | Nine months ended | |||||
2018 | 2017 | 2018 | 2017 | |||
(unaudited, millions of Canadian dollars, except per share amounts; number of shares in millions) | ||||||
GAAP Earnings attributable to common shareholders | (90) | 765 | 1,426 | 2,322 | ||
GAAP Earnings per common share | (0.05) | 0.47 | 0.84 | 1.57 | ||
Cash provided by operating activities | 1,461 | 1,568 | 7,999 | 5,315 | ||
Adjusted EBITDA1 | 2,958 | 2,586 | 9,529 | 7,354 | ||
Adjusted Earnings1 | 933 | 632 | 3,402 | 1,969 | ||
Adjusted Earnings per common share1 | 0.55 | 0.39 | 2.01 | 1.33 | ||
Distributable Cash Flow1,2 | 1,585 | 1,334 | 5,755 | 3,873 | ||
Weighted average common shares outstanding | 1,705 | 1,635 | 1,695 | 1,482 | ||
1 Non-GAAP financial measures. Schedules reconciling adjusted EBITDA, adjusted earnings, adjusted earnings per common | |||||||||
2 Formerly referred to as Available Cash Flow From Operations (ACFFO). Calculation methodology remains unchanged. |
GAAP earnings attributable to common shareholders for the third quarter of 2018 decreased by $855 million or $0.52 per share compared to the same period in 2017, as a result of a number of unusual, non-recurring or non-operating factors, including a non-cash charge of $1,019 million after-tax resulting from the classification of the Canadian natural gas gathering and processing businesses as held for sale, partially offset by the impact of stronger business performance as described below.
Adjusted earnings in the third quarter of 2018 increased by $301 million or $0.16 per share compared to the same period in 2017. The increase was primarily driven by strong operating results from all of the Company's business units, new projects coming into service in the Liquids Pipelines, Gas Transmission and Midstream, Green Power and Transmission and Gas Distribution segments in the fourth quarter 2017 and the first nine months of 2018, synergy realization from the Spectra Energy acquisition and more favourable foreign exchange hedge rates.
DCF for the third quarter was $1,585 million, an increase of $251 million over the comparable prior period in 2017, driven largely by the same factors noted above.
Detailed segmented financial information and analysis can be found below under Adjusted EBITDA by Segments.
PROJECT EXECUTION UPDATE
Enbridge continues to make good progress executing its $22 billion secured growth capital program for 2018 to 2020. The individual projects that make up the secured program are all supported by long-term take-or-pay contracts, cost-of-service frameworks or similar low-risk commercial arrangements and are diversified across a wide range of business platforms and regulatory jurisdictions.
The company has now completed the bulk of its $7 billion of growth projects scheduled to come into service in 2018, substantially on time and on budget. This is comprised of almost a dozen projects across all business units, including expansions to the existing Canadian and US gas transmission systems, the Company's first European offshore wind project and ongoing capital expansion within the utility franchises. Most recently in October, the US$1.3 billion (Enbridge's share) NEXUS and the associated US$0.2 billion TEAL natural gas pipeline projects were brought into service, providing much needed export capacity out of the Marcellus and Utica basins into the upper Midwest and Eastern Canadian markets. In addition, the US$1.6 billion Valley Crossing natural gas pipeline project entered service on October 31, supported by take-or-pay transportation contracts. Volumes have begun to flow in the header system at Agua Dulce, however, exports to Mexico will not begin until the third party downstream Mexican pipeline is placed in service.
LINE 3 REPLACEMENT UPDATE
The $9 billion Line 3 Replacement Project is a critical integrity replacement project that will enhance the safety and reliability of the Enbridge Liquids Mainline System and provide incremental export capacity to Western Canadian producers and increased security of supply for key refining markets along the Mainline system as well as to markets further downstream.
The project continues to progress well on several fronts. In Canada, the 2018 construction season is well under way, with over 60% of the pipe now laid. Remaining construction activities in Canada are on plan for completion mid-2019. In the U.S., the pipeline replacement work in Wisconsin is now complete and has been placed into service.
In Minnesota, the pipeline route was finalized in August when an agreement was reached with the Fond du Lac Band of Lake Superior Chippewa granting the Line 3 Replacement Project an easement through their Reservation. Importantly, this agreement also renews the existing Mainline System easement for a new 20 year term. Following verbal approval of the project in June, the Minnesota Public Utilities Commission recently issued its Written Orders for the Certificate of Need and Route Permit for the Project and all related conditions are being finalized. The remaining permit applications have been submitted to the various federal and state agencies, including the U.S. Army Corps of Engineers, the Minnesota Department of Natural Resources, the Minnesota Pollution Control Agency and other local government agencies in Minnesota. The Company anticipates the receipt of such permits in time to begin construction activities during the first quarter of 2019, and continues to anticipate an in-service date for the project in the second half of 2019.
OTHER BUSINESS UPDATES
On October 15, the Company announced that it is moving forward with the amalgamation of Enbridge Gas Distribution Inc. and Union Gas Limited, its two natural gas utility franchises in Ontario. The terms of the amalgamation have been approved by the OEB. The new incentive rate regulation framework will take effect January 1, 2019, and will enable efficiencies in operations benefiting both ratepayers and shareholders while maintaining a focus on the safe and reliable distribution of energy.
On October 9, a rupture occurred on one of two natural gas lines in Enbridge's BC Pipeline system, approximately 13.5 kilometers north of Prince George. There were no injuries as a result of the incident nor is there any long-term environmental damage to the site. The Company was able to respond quickly and after receiving National Energy Board (NEB) approval and completing a comprehensive integrity assessment was able to get the other unaffected pipeline back into service at reduced pressure. The affected 36-inch pipeline has also now been repaired and placed back into service at reduced pressure. The Company is cooperating with the regulator in its investigation to determine the root cause of the incident as it works to safely restore the system to its full capacity.
FINANCING UPDATE
In late November of 2017, Enbridge released its strategic plan and outlook which included, among other things, a renewed focus on low risk pipeline and utility businesses. It also set out a plan with respect to financing the current $22 billion secured growth capital program through 2020. The plan included common and hybrid equity issuances as well as $3 billion of non-core asset sales in 2018 in order to accelerate planned de-leveraging and achieve a consolidated Debt to EBITDA ratio of 5.0x by the end of 2018.
With the announcement of over $7.5 billion of non-core asset sales this year, well in excess of the $3 billion targeted in the financing plan, Enbridge has effectively satisfied all of its equity funding requirements for its secured growth program through 2020. This quarter, the Company has received proceeds from asset sales of approximately $5.7 billion, with the balance expected by mid-2019. These proceeds will provide the Company with significant additional financial flexibility to further strengthen the balance sheet and fund the secured growth program. As of the end of the third quarter, the Company's consolidated Debt to EBITDA ratio was 4.7x on a trailing twelve month basis, below its target for 2018 of 5.0x.
Given this progress on leverage reduction, the Company announced earlier today that it would suspend its DRIP effective with the dividend payment on December 1, 2018, which is earlier than contemplated when funding plans for the current planning cycle were communicated last November.
SIMPLIFICATION OF CORPORATE STRUCTURE
The Company has now reached agreement with the Independent Committees of its sponsored vehicles, Spectra Energy Partners, LP (NYSE: SEP), Enbridge Energy Partners, L.P. (NYSE: EEP), Enbridge Energy Management, L.L.C (NYSE: EEQ) and Enbridge Income Fund Holdings Inc. (TSX: ENF), to acquire, in separate combination transactions, all of the outstanding equity securities of those sponsored vehicles not beneficially owned by Enbridge.
The buy-ins are strategically and economically attractive to current and future Enbridge shareholders and provide substantial benefits, including:
ENF has filed its Management Information Circular. The proxy voting materials have been distributed to the shareholders ahead of the shareholder meeting date which has been scheduled for November 6, 2018. Closing would be targeted for shortly thereafter, subject to shareholder vote and the Court of Queen's Bench of Alberta approval.
In the case of SEP, Enbridge holds sufficient SEP common units to approve the SEP merger and the related merger agreement though a written consent process. This process will occur in the fourth quarter with the transaction closing targeted for mid-December.
In the case of EEP and EEQ, a unit/shareholder vote date is targeted for December 17, 2018, with the transactions expected to close in late December, subject to unit/shareholder approval.
Proxy materials for SEP, EEP and EEQ are expected to be distributed by mid-November.
After taking into consideration these sponsored vehicle buy-ins, previously announced asset sales and other developments, there is no change to Enbridge's current three year financial guidance, including 10% compound annual dividend growth from 2018 to 2020. Management will provide its updated strategic and financial outlook at its upcoming investment community conference on December 11, 2018 in New York.
OTHER MATTERS
The Board of Directors announced that it had accepted, with regret, the resignation of Michael McShane, a Director since February 27, 2017 and a former director with Spectra Energy Corp, due to increasing personal and professional commitments.
THIRD QUARTER 2018 FINANCIAL RESULTS
The following table summarizes the Company's GAAP reported results for segment EBITDA, earnings attributable to common shareholders, and cash provided by operating activities for the third quarter of 2018.
GAAP SEGMENT EBITDA AND CASH FLOW FROM OPERATIONS
Three months ended | Nine months ended | |||
2018 | 2017 | 2018 | 2017 | |
(unaudited, millions of Canadian dollars) | ||||
Liquids Pipelines | 1,875 | 1,703 | 4,353 | 4,840 |
Gas Transmission and Midstream | (60) | 856 | 1,080 | 2,263 |
Gas Distribution | 256 | 240 | 1,262 | 937 |
Green Power and Transmission | 51 | 68 | 286 | 270 |
Energy Services | (96) | (150) | 108 | (11) |
Eliminations and Other | 29 | 126 | (368) | (188) |
EBITDA | 2,055 | 2,843 | 6,721 | 8,111 |
Earnings attributable to common shareholders | (90) | 765 | 1,426 | 2,322 |
Cash provided by operating activities | 1,461 | 1,568 | 7,999 | 5,315 |
For purposes of evaluating performance, the Company makes adjustments for unusual, non-recurring or non-operating factors to GAAP reported earnings, segment EBITDA, and cash flow provided by operating activities, which allow Management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of the underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per common share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
DISTRIBUTABLE CASH FLOW
Three months ended | Nine months ended | |||
2018 | 2017 | 2018 | 2017 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Liquids Pipelines | 1,633 | 1,353 | 4,889 | 4,002 |
Gas Transmission and Midstream | 1,038 | 941 | 3,116 | 2,330 |
Gas Distribution | 259 | 238 | 1,274 | 929 |
Green Power and Transmission | 73 | 68 | 337 | 270 |
Energy Services | 10 | (24) | 94 | (31) |
Eliminations and Other | (55) | 10 | (181) | (146) |
Adjusted EBITDA1 | 2,958 | 2,586 | 9,529 | 7,354 |
Maintenance capital | (324) | (360) | (783) | (916) |
Interest expense1 | (705) | (646) | (2,060) | (1,756) |
Current income tax1 | (71) | (22) | (228) | (105) |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (302) | (267) | (901) | (770) |
Cash distributions in excess of equity earnings1 | 90 | 67 | 267 | 161 |
Preference share dividends | (94) | (82) | (268) | (246) |
Other receipts of cash not recognized in revenue2 | 53 | 60 | 157 | 171 |
Other non-cash adjustments | (20) | (2) | 42 | (20) |
DCF | 1,585 | 1,334 | 5,755 | 3,873 |
Weighted average common shares outstanding | 1,705 | 1,635 | 1,695 | 1,482 |
1 | Presented net of adjusting items. |
2 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
For the nine months ending September 30, 2018, the Company's key financial metrics, DCF, adjusted EBITDA and adjusted earnings have increased compared to the comparative 2017 period due in part to the timing of the merger with Spectra Energy Corp (the Merger Transaction) which closed on February 27, 2017. Given the impact of the timing of the merger on reported year to date performance versus the prior year the discussion of comparative year over year results focuses on the third quarter.
Third quarter 2018 DCF increased by $251 million compared to the same period in 2017. The key drivers of quarter-over-quarter growth are summarized below:
Partially offsetting the DCF growth drivers noted above were:
ADJUSTED EARNINGS | Three months ended | Nine months ended | |||
2018 | 2017 | 2018 | 2017 | ||
(unaudited, millions of Canadian dollars, except per share amounts) | |||||
Adjusted EBITDA | 2,958 | 2,586 | 9,529 | 7,354 | |
Depreciation and amortization | (799) | (848) | (2,452) | (2,388) | |
Interest expense1 | (682) | (614) | (1,981) | (1,667) | |
Income taxes1 | (212) | (215) | (701) | (553) | |
Noncontrolling interests and redeemable noncontrolling interests1 | (238) | (195) | (721) | (531) | |
Preference share dividends | (94) | (82) | (272) | (246) | |
Adjusted earnings | 933 | 632 | 3,402 | 1,969 | |
Adjusted earnings per common share | 0.55 | 0.39 | 2.01 | 1.33 | |
1 Presented net of adjusting items. |
Adjusted earnings increased by $301 million for the third quarter of 2018 compared to the same period in 2017. Growth in adjusted earnings was driven by the same factors impacting business performance and adjusted EBITDA as discussed under Distributable Cash Flow above. Other notable quarter-over-quarter drivers were:
Adjusted earnings per share for the third quarter of 2018 increased by $0.16 over the third quarter of 2017 reflecting the factors noted above, partially offset by a higher average number of shares outstanding following the offering of approximately 33 million of the Company's common shares in December 2017.
ADJUSTED EBITDA BY SEGMENTS
LIQUIDS PIPELINES
Three months ended | Nine months ended | |||
2018 | 2017 | 2018 | 2017 | |
(unaudited, millions of Canadian dollars) | ||||
Canadian Mainline | 537 | 348 | 1,533 | 975 |
Lakehead System | 415 | 406 | 1,317 | 1,345 |
Regional Oil Sands System | 214 | 152 | 642 | 418 |
Gulf Coast and Mid-Continent | 169 | 165 | 508 | 481 |
Other1 | 298 | 282 | 889 | 783 |
Adjusted EBITDA2 | 1,633 | 1,353 | 4,889 | 4,002 |
Operating Data (average deliveries – thousands of bpd) | ||||
Canadian Mainline3 | 2,578 | 2,492 | 2,613 | 2,511 |
Lakehead System4 | 2,727 | 2,620 | 2,756 | 2,657 |
Regional Oil Sands System5 | 1,863 | 1,329 | 1,789 | 1,262 |
International Joint Tariff (IJT) | $4.15 | $4.07 | $4.10 | $4.06 |
Lakehead System Local Toll | $2.23 | $2.43 | $2.28 | $2.48 |
Canadian Mainline IJT Residual Toll | $1.92 | $1.64 | $1.82 | $1.58 |
Canadian Mainline Apportionment6 | 45% | 3% | 45% | 23% |
Canadian Mainline Effective FX Rate | $1.26 | $1.07 | $1.26 | $1.05 |
1 | Included within Other are Southern Lights Pipeline, Express-Platte System, Bakken System and Feeder Pipelines & Other. |
2 | Schedules reconciling adjusted EBITDA are provided in the Appendices to this news release. |
3 | Canadian Mainline throughput volume represents mainline system deliveries ex-Gretna, Manitoba which is made up of United States and eastern Canada deliveries originating from western Canada. |
4 | Lakehead System throughput volume represents mainline system deliveries to the United States mid-west and eastern Canada. |
5 | Volumes are for the Athabasca mainline, Athabasca Twin, Waupisoo Pipeline and Woodland Pipeline and exclude laterals on the Regional Oil Sands System. |
6 | Heavy apportionment on Canadian Mainline. |
Liquids Pipelines adjusted EBITDA increased by $280 million for the third quarter of 2018 when compared to the same period in 2017. The key quarter-over-quarter performance drivers are summarized below:
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Nine months ended | |||
2018 | 2017 | 2018 | 2017 | |
(unaudited, millions of Canadian dollars) | ||||
US Gas Transmission | 661 | 636 | 1,979 | 1,565 |
Canadian Gas Transmission & Midstream | 196 | 154 | 606 | 379 |
Alliance Pipeline | 53 | 48 | 169 | 149 |
US Midstream | 97 | 74 | 265 | 149 |
Other | 31 | 29 | 97 | 88 |
Adjusted EBITDA1 | 1,038 | 941 | 3,116 | 2,330 |
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Gas Transmission and Midstream adjusted EBITDA increased by $97 million for the third quarter of 2018 when compared to the same period in 2017. The key quarter-over-quarter performance drivers are summarized below:
The Company has entered into an agreement to sell its Canadian natural gas gathering and processing business but will retain the Westcoast gas transmission system in British Columbia. The sale of the provincially regulated assets which comprise roughly 60% of the total sale proceeds closed on October 1, 2018. The sale of the remaining NEB regulated assets is expected to close by mid-2019.
GAS DISTRIBUTION
Three months ended | Nine months ended | |||||
2018 | 2017 | 2018 | 2017 | |||
(unaudited, millions of Canadian dollars) | ||||||
Enbridge Gas Distribution Inc. (EGD) | 127 | 116 | 612 | 500 | ||
Union Gas Limited (Union Gas) | 124 | 110 | 565 | 343 | ||
Other | 8 | 12 | 97 | 86 | ||
Adjusted EBITDA1 | 259 | 238 | 1,274 | 929 | ||
Operating Data | ||||||
EGD | ||||||
Volumes (billions of cubic feet) | 42 | 43 | 308 | 286 | ||
Number of active customers (thousands)3 | 2,198 | 2,172 | 2,198 | 2,172 | ||
Heating degree days4 | ||||||
Actual | 49 | 66 | 2,396 | 2,214 | ||
Forecast based on normal weather | 76 | 62 | 2,396 | 2,413 | ||
Union Gas2 | ||||||
Volumes (billions of cubic feet) | 229 | 203 | 981 | 574 | ||
Number of active customers (thousands)3 | 1,491 | 1,470 | 1,491 | 1,470 | ||
Heating degree days4 | ||||||
Actual | 130 | 162 | 2,684 | 1,255 | ||
Forecast based on normal weather | 167 | 170 | 2,687 | 1,260 | ||
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
2 | Reflects operating data post-Merger Transaction. |
3 | Number of active customers at the end of the reported period. |
4 | Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in EGD's and Union Gas' franchise area. It is calculated by accumulating, for the fiscal period, the total number of degrees each day by which the daily mean temperature falls below 18 degrees Celsius. |
Gas Distribution adjusted EBITDA will typically follow a seasonal profile. It is generally highest in the first and fourth quarters of the year reflecting greater volumetric usage during the heating season, and lowest in the third quarter as there is generally less volumetric usage during the summer. The magnitude of the seasonal EBITDA fluctuations will vary from year-to-year reflecting the impact of colder or warmer than normal weather on distribution volumes in a given quarter.
Gas Distribution adjusted EBITDA increased by $21 million for the third quarter 2018 when compared to the same period in 2017. The key quarter-over-quarter performance drivers are summarized below:
For the nine months ended September 30, 2018, Adjusted EBITDA for EGD and Union Gas has been positively impacted by $10 million due to colder weather experienced in the franchise area relative to the assumptions for normal weather embedded in customer rates.
GREEN POWER AND TRANSMISSION
Three months ended | Nine months ended | |||
2018 | 2017 | 2018 | 2017 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted EBITDA1 | 73 | 68 | 337 | 270 |
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Green Power and Transmission adjusted EBITDA increased by $5 million for the third quarter of 2018 when compared to the same period in 2017. The key quarter-over-quarter performance drivers are summarized below:
On August 1, the Company finalized the transaction to sell a 49% interest in certain North American onshore renewable power assets and 49% of the Company's interests in two German offshore wind farms under development (collectively, the Renewable Assets JV). Enbridge will maintain a 51% controlling interest in the Renewable Assets JV, and will continue to manage, operate and provide administrative services for these assets. The consolidated results generated by these assets will continue to be reported by the Green Power and Transmission segment. Earnings and cash flows attributed to the third party investors in these assets will be reported as non-controlling interests in the Company's consolidated statements of earnings and distributable cash flow schedules.
ENERGY SERVICES
Three months ended | Nine months ended | |||
2018 | 2017 | 2018 | 2017 | |
(unaudited, millions of Canadian dollars) | ||||
Adjusted earnings/(loss) before interest, income taxes, | 10 | (24) | 94 | (31) |
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Energy Services adjusted EBITDA increased by $34 million for the third quarter of 2018 when compared to the same period in 2017. The increase was primarily driven by wider crude oil and natural gas location differentials which provided greater opportunity to generate profitable margins.
ELIMINATIONS AND OTHER
Three months ended | Nine months ended | |||
2018 | 2017 | 2018 | 2017 | |
(unaudited, millions of Canadian dollars) | ||||
Operating and administrative | 4 | 27 | (27) | 13 |
Realized foreign exchange hedge settlements | (59) | (17) | (154) | (159) |
Adjusted earnings/(loss) before interest, income taxes, | (55) | 10 | (181) | (146) |
1 | Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Operating and administrative costs captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) net of amounts recovered from business units for the provision of those services. Also, as previously noted US dollar denominated earnings within the segment results are translated at average foreign exchange rates during the quarter. The offsetting impact of the Company's enterprise foreign exchange hedging program is captured in this segment.
Eliminations and Other adjusted loss before interest, income taxes, and depreciation and amortization increased by $65 million for the third quarter of 2018, when compared to the same period in 2017. The key quarter-over-quarter performance drivers are summarized below:
CONFERENCE CALL
Enbridge will host a joint conference call and webcast on November 2, 2018 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) with Enbridge Income Fund Holdings Inc., Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP to provide an enterprise wide business update and review 2018 third quarter financial results. Analysts, members of the media and other interested parties can access the call toll free at (877) 930-8043 or within and outside North America at (253) 336-7522 using the access code of 6465399#. The call will be audio webcast live at https://edge.media-server.com/m6/p/tsy478oc. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available for seven days after the call toll-free (855) 859-2056 or within and outside North America at (404) 537-3406 (access code 6465399#).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected DCF or DCF per share; expected future cash flows; expected performance of the Company's businesses; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected credit metrics and debt to EBITDA levels; expected costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected impact on cash flows of the Company's commercially secured growth program; expected future growth and expansion opportunities; expectations about the Company's joint venture partners' ability to complete and finance projects under construction; expected closing of acquisitions and dispositions; estimated future dividends; expected future actions of regulators; expectations regarding commodity prices; supply forecasts; expectations regarding the impact of the Merger Transaction including the combined Company's scale, financial flexibility, growth program, future business prospects and performance and streamlining opportunities; expected impact of United States Tax Reform; expected impact of the FERC policy on treatment of income taxes; the sponsored vehicle strategy, including the proposed simplification of our corporate structure; dividend payout policy; and dividend growth and dividend payout expectation.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the timing and closing of dispositions; the realization of anticipated benefits and synergies of the Merger Transaction; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of capital project execution on the Company's future cash flows; credit ratings; capital project funding; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the impact of the Merger Transaction on the Company, expected EBITDA, adjusted EBITDA, earnings/(loss), adjusted earnings/(loss) and associated per share amounts, or estimated future dividends. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the realization of anticipated benefits and synergies of the Merger Transaction, operating performance, regulatory parameters, dispositions, the proposed simplification of our corporate structure, dividend policy, project approval and support, renewals of rights of way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
ABOUT ENBRIDGE INC.
Enbridge Inc. (the Company) is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise part of this news release.
FOR FURTHER INFORMATION PLEASE CONTACT: | ||
Enbridge Inc. – Media | Enbridge Inc. – Investment Community | |
Jesse Semko | Jonathan Gould | |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 | |
Email: media@enbridge.com |
DIVIDEND DECLARATION
Our Board of Directors has declared the following quarterly dividends. All dividends are payable on December 1, 2018, to shareholders of record on November 15, 2018.
Dividend per | |
Common Shares | $0.67100 |
Preference Shares, Series A | $0.34375 |
Preference Shares, Series B | $0.21340 |
Preference Shares, Series C1 | $0.23934 |
Preference Shares, Series D2 | $0.27875 |
Preference Shares, Series F3 | $0.29306 |
Preference Shares, Series H4 | $0.27350 |
Preference Shares, Series J | US$0.30540 |
Preference Shares, Series L | US$0.30993 |
Preference Shares, Series N | $0.25000 |
Preference Shares, Series P | $0.25000 |
Preference Shares, Series R | $0.25000 |
Preference Shares, Series 15 | US$0.37182 |
Preference Shares, Series 3 | $0.25000 |
Preference Shares, Series 5 | US$0.27500 |
Preference Shares, Series 7 | $0.27500 |
Preference Shares, Series 9 | $0.27500 |
Preference Shares, Series 11 | $0.27500 |
Preference Shares, Series 13 | $0.27500 |
Preference Shares, Series 15 | $0.27500 |
Preference Shares, Series 17 | $0.32188 |
Preference Shares, Series 196 | $0.30625 |
1 | The quarterly dividend per share paid on Series C was increased to $0.22685 from $0.20342 on March 1, 2018, was increased to $0.22748 from $0.22685 on June 1, 2018, and was increased to $0.23934 from $0.22748 on September 1, 2018, due to reset on a quarterly basis following the date of issuance of the Series C Preference Shares. |
2 | The quarterly dividend per share paid on Series D was increased to $0.27875 from $0.25000 on March 1, 2018, due to reset of the annual dividend on March 1, 2018, under the dividend rate reset provisions applicable to this series. |
3 | The quarterly dividend per share paid on Series F was increased to $0.29306 from $0.25000 on June 1, 2018, due to reset of the annual dividend on June 1, 2018, under the dividend rate reset provisions applicable to this series. |
4 | The quarterly dividend per share paid on Series H was increased to $0.27350 from $0.25000 on September 1, 2018, due to reset of the annual dividend on September 1, 2018, and every five years thereafter. |
5 | The quarterly dividend per share paid on Series 1 was increased to US$0.37182 from US$0.25000 on June 1, 2018, due to reset of the annual dividend on June 1, 2018, under the dividend rate reset provisions applicable to this series. |
6 | The dividend per share on Series 19 increased from $0.26850 to the regular quarterly dividend of $0.30625, effective June 1, 2018. |
NON-GAAP RECONCILATIONS APPENDICES
This news release contains references to adjusted EBITDA, adjusted earnings, adjusted earnings per common share, and DCF. Management believes the presentation of adjusted EBITDA, adjusted earnings, adjusted earnings per common share and DCF gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Adjusted EBITDA represents EBITDA adjusted for unusual, non-recurring or non-operating factors on both a consolidated and segmented basis. Management uses adjusted EBITDA to set targets and to assess the performance of the Company.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, non-recurring or non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, non-recurring or non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes, noncontrolling interests and redeemable noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another measure of the Company's ability to generate earnings.
DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests and redeemable noncontrolling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
Reconciliations of forward looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly certain contingent liabilities, and non-cash unrealized derivative fair value losses and gains and ineffectiveness on hedges which are subject to market variability and therefore a reconciliation is not available without unreasonable effort.
Our non-GAAP measures described above are not measures that have standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers.
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON-GAAP RECONCILATIONS – ADJUSTED EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
Three months ended | Nine months ended | |||
2018 | 2017 | 2018 | 2017 | |
(unaudited, millions of Canadian dollars) | ||||
Liquids Pipelines | 1,875 | 1,703 | 4,353 | 4,840 |
Gas Transmission and Midstream | (60) | 856 | 1,080 | 2,263 |
Gas Distribution | 256 | 240 | 1,262 | 937 |
Green Power and Transmission | 51 | 68 | 286 | 270 |
Energy Services | (96) | (150) | 108 | (11) |
Eliminations and Other | 29 | 126 | (368) | (188) |
EBITDA | 2,055 | 2,843 | 6,721 | 8,111 |
Depreciation and amortization | (799) | (848) | (2,452) | (2,388) |
Interest expense | (696) | (653) | (2,042) | (1,704) |
Income taxes | (347) | (327) | (177) | (818) |
Earnings attributable to noncontrolling interests and | (209) | (168) | (352) | (633) |
Preference share dividends | (94) | (82) | (272) | (246) |
Earnings/(loss) attributable to common shareholders | (90) | 765 | 1,426 | 2,322 |
ADJUSTED EBITDA TO ADJUSTED EARNINGS
Three months ended | Nine months ended | |||
2018 | 2017 | 2018 | 2017 | |
(unaudited, millions of Canadian dollars, except per share amounts) | ||||
Liquids Pipelines | 1,633 | 1,353 | 4,889 | 4,002 |
Gas Transmission and Midstream | 1,038 | 941 | 3,116 | 2,330 |
Gas Distribution | 259 | 238 | 1,274 | 929 |
Green Power and Transmission | 73 | 68 | 337 | 270 |
Energy Services | 10 | (24) | 94 | (31) |
Eliminations and Other | (55) | 10 | (181) | (146) |
Adjusted EBITDA | 2,958 | 2,586 | 9,529 | 7,354 |
Depreciation and amortization | (799) | (848) | (2,452) | (2,388) |
Interest expense | (682) | (614) | (1,981) | (1,667) |
Income taxes | (212) | (215) | (701) | (553) |
Noncontrolling interests and redeemable noncontrolling interests | (238) | (195) | (721) | (531) |
Preference share dividends | (94) | (82) | (272) | (246) |
Adjusted earnings | 933 | 632 | 3,402 | 1,969 |
Adjusted earnings per common share | 0.55 | 0.39 | 2.01 | 1.33 |
EBITDA TO ADJUSTED EARNINGS
Three months ended | Nine months ended | ||||
2018 | 2017 | 2018 | 2017 | ||
(unaudited, millions of Canadian dollars, except per share amounts) | |||||
EBITDA | 2,055 | 2,843 | 6,721 | 8,111 | |
Adjusting items: | |||||
Change in unrealized derivative fair value (gain)/loss | (257) | (362) | 318 | (1,239) | |
Loss on sale of assets | 94 | — | 107 | — | |
Asset write-down loss | 1,019 | — | 2,086 | — | |
Gain on sale of pipe and project wind-down costs | (28) | (31) | (28) | (93) | |
Employee severance, transition and transformation costs | 17 | 76 | 143 | 284 | |
Transaction costs | — | 2 | — | 180 | |
Asset monetization costs | 45 | — | 65 | — | |
Project development costs | 1 | 2 | 8 | 27 | |
Other | 12 | 56 | 109 | 84 | |
Total adjusting items | 903 | (257) | 2,808 | (757) | |
Adjusted EBITDA | 2,958 | 2,586 | 9,529 | 7,354 | |
Depreciation and amortization | (799) | (848) | (2,452) | (2,388) | |
Interest expense | (696) | (653) | (2,042) | (1,704) | |
Income taxes | (347) | (327) | (177) | (818) | |
Earnings attributable to noncontrolling interests and redeemable noncontrolling | (209) | (168) | (352) | (633) | |
Preference share dividends | (94) | (82) | (272) | (246) | |
Adjusting items in respect of: | |||||
Interest expense | 14 | 39 | 61 | 37 | |
Income taxes | 135 | 112 | (524) | 265 | |
Noncontrolling interests and redeemable noncontrolling interests | (29) | (27) | (369) | 102 | |
Adjusted earnings | 933 | 632 | 3,402 | 1,969 | |
Adjusted earnings per common share | 0.55 | 0.39 | 2.01 | 1.33 | |
APPENDIX B
NON-GAAP RECONCILIATION – SEGMENTED EBITDA TO ADJUSTED EBITDA
LIQUIDS PIPELINES
Three months ended | Nine months ended | ||||
2018 | 2017 | 2018 | 2017 | ||
(unaudited, millions of Canadian dollars) | |||||
Adjusted EBITDA | 1,633 | 1,353 | 4,889 | 4,002 | |
Change in unrealized derivative fair value gain/(loss) | 211 | 342 | (362) | 781 | |
Asset write-down loss | — | — | (154) | — | |
Gain on sale of pipe and project wind-down costs | 28 | 31 | 28 | 93 | |
Leak remediation costs, net of leak insurance recoveries | — | — | — | (9) | |
Project development costs | — | (2) | (3) | (6) | |
Employee severance, transition and transformation costs | 3 | (21) | (25) | (21) | |
United States tax reform - regulatory asset adjustment | — | — | (20) | — | |
Total adjustments | 242 | 350 | (536) | 838 | |
EBITDA | 1,875 | 1,703 | 4,353 | 4,840 | |
GAS TRANSMISSION AND MIDSTREAM
Three months ended | Nine months ended | ||||
2018 | 2017 | 2018 | 2017 | ||
(unaudited, millions of Canadian dollars) | |||||
Adjusted EBITDA | 1,038 | 941 | 3,116 | 2,330 | |
Change in unrealized derivative fair value gain/(loss) | 23 | (20) | 25 | 7 | |
Loss on sale of assets | (74) | — | (74) | — | |
Asset write-down loss | (1,019) | — | (1,932) | — | |
Pipeline inspection and other | (1) | (25) | (2) | (34) | |
DCP Midstream equity earnings adjustment | (4) | (25) | (23) | (21) | |
Transaction costs | — | (2) | — | (6) | |
Asset monetization transaction costs | (20) | — | (20) | — | |
Employee severance, transition and transformation costs | (3) | (13) | (10) | (13) | |
Total adjustments | (1,098) | (85) | (2,036) | (67) | |
Earnings/(loss) before interest, income taxes, and | (60) | 856 | 1,080 | 2,263 | |
GAS DISTRIBUTION
Three months ended | Nine months ended | |||||
2018 | 2017 | 2018 | 2017 | |||
(unaudited; millions of Canadian dollars) | ||||||
Adjusted EBITDA | 259 | 238 | 1,274 | 929 | ||
Change in unrealized derivative fair value gain | — | 3 | 3 | 13 | ||
Noverco Inc. equity earnings adjustment | — | — | (9) | — | ||
Employee severance, transition and transformation costs | (3) | (1) | (6) | (5) | ||
Total adjustments | (3) | 2 | (12) | 8 | ||
EBITDA | 256 | 240 | 1,262 | 937 | ||
GREEN POWER AND TRANSMISSION
Three months ended | Nine months ended | ||||
2018 | 2017 | 2018 | 2017 | ||
(unaudited, millions of Canadian dollars) | |||||
Adjusted EBITDA | 73 | 68 | 337 | 270 | |
Change in unrealized derivative fair value gain/(loss) | (2) | — | 2 | — | |
Loss on sale of assets | (20) | — | (20) | — | |
Equity investment asset impairment | — | — | (33) | — | |
Total adjustments | (22) | — | (51) | — | |
EBITDA | 51 | 68 | 286 | 270 | |
ENERGY SERVICES
Three months ended | Nine months ended | ||||
2018 | 2017 | 2018 | 2017 | ||
(unaudited, millions of Canadian dollars) | |||||
Adjusted earnings/(loss) before interest, income taxes, | 10 | (24) | 94 | (31) | |
Change in unrealized derivative fair value gain/(loss) | (106) | (124) | 14 | 22 | |
Employee severance, transition and transformation costs | — | (2) | — | (2) | |
Total adjustments | (106) | (126) | 14 | 20 | |
Earnings/(loss) before interest, income taxes, and | (96) | (150) | 108 | (11) | |
ELIMINATIONS AND OTHER
Three months ended | Nine months ended | ||||
2018 | 2017 | 2018 | 2017 | ||
(unaudited, millions of Canadian dollars) | |||||
Adjusted earnings/(loss) before interest, income taxes, | (55) | 10 | (181) | (146) | |
Change in unrealized derivative fair value gain | 131 | 161 | — | 416 | |
Unrealized intercompany foreign exchange loss | (2) | (6) | (11) | (20) | |
Asset impairment | — | — | (6) | — | |
Loss on sale of assets | — | — | (13) | — | |
Asset monetization costs | (25) | — | (45) | — | |
Project development costs | (1) | — | (5) | (21) | |
Transaction costs | — | — | — | (174) | |
Sponsored vehicle roll-up costs | (5) | — | (5) | — | |
Employee severance, transition and transformation costs | (14) | (39) | (102) | (243) | |
Total adjustments | 84 | 116 | (187) | (42) | |
Earnings/(loss) before interest, income taxes, and | 29 | 126 | (368) | (188) | |
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING ACTIVITIES TO DCF
Three months ended | Nine months ended | |||
2018 | 2017 | 2018 | 2017 | |
(unaudited, millions of Canadian dollars) | ||||
Cash provided by operating activities | 1,461 | 1,568 | 7,999 | 5,315 |
Adjusted for changes in operating assets and liabilities | 657 | 376 | (943) | (121) |
2,118 | 1,944 | 7,056 | 5,194 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (302) | (267) | (901) | (770) |
Preference share dividends | (94) | (82) | (268) | (246) |
Maintenance capital expenditures1 | (324) | (360) | (783) | (916) |
Significant adjusting items: | ||||
Other receipts of cash not recognized in revenue2 | 53 | 60 | 157 | 171 |
Employee severance, transition and transformation costs | 19 | 72 | 189 | 278 |
Transaction costs | — | 2 | — | 201 |
Asset monetization costs | 64 | — | 84 | — |
Other items | 51 | (35) | 221 | (39) |
DCF | 1,585 | 1,334 | 5,755 | 3,873 |
1 | Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing pipeline system or that are necessary to maintain the service capability of the existing assets (including the replacement of components that are worn, obsolete or completing their useful lives). For the purpose of DCF, maintenance capital excludes expenditures that extend asset useful lives, increase capacities from existing levels or reduce costs to enhance revenues or provide enhancements to the service capability of the existing assets. |
2 | Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
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SOURCE Enbridge Inc.
Article Date
11/2/2018Enbridge Suspends Dividend Reinvestment and Share Purchase Plan
Source: PR Newswire
CALGARY, Nov. 2, 2018 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) announced today that the Company has determined to suspend, effective immediately, its dividend reinvestment and share purchase plan (DRIP) until further notice. As a result, shareholders only receive dividends in cash effective with the dividend currently scheduled to be paid on December 1, 2018, to shareholders of record on November 15, 2018. If Enbridge elects to reinstate the DRIP in the future, the shareholders that were enrolled in the DRIP at suspension and remained enrolled at reinstatement will automatically resume participation in the DRIP.
The Company has elected to suspend the DRIP at this time given substantial progress on its funding and asset sales plan, which will allow it to meet any remaining equity requirement for the balance of its currently secured growth program.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, has been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: the Company's expected future cash flows, financial strength and flexibility, equity requirements, funding plans and asset sales.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the timing and closing of asset sales; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of capital project execution on the Company's future cash flows; credit ratings; capital project funding; and expected future cash flows. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to operating performance, regulatory parameters, asset sales, dividend policy, project approval and support, renewals of rights of way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
| ||
Media | Investment Community | |
Jesse Semko | Jonathan Gould | |
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 | |
Email: media@enbridge.com |
View original content:http://www.prnewswire.com/news-releases/enbridge-suspends-dividend-reinvestment-and-share-purchase-plan-300742377.html
SOURCE Enbridge Inc.
Article Date
11/2/201811/1/2018 - Enbridge Provides Notice of Series N Preferred Shares Conversion Right and Announces Reset Dividend Rates
Enbridge Provides Notice of Series N Preferred Shares Conversion Right and Announces Reset Dividend Rates
Source: PR Newswire
CALGARY, Nov. 1, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series N (Series N Shares) (TSX: ENB.PR.N) on December 1, 2018. As a result, subject to certain conditions, the holders of the Series N Shares have the right to convert all or part of their Series N Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series O of Enbridge (Series O Shares) on December 1, 2018. Holders who do not exercise their right to convert their Series N Shares into Series O Shares will retain their Series N Shares.
The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series N Shares outstanding after December 1, 2018, then all remaining Series N Shares will automatically be converted into Series O Shares on a one-for-one basis on December 1, 2018; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series O Shares outstanding after December 1, 2018, no Series N Shares will be converted into Series O Shares. There are currently 18,000,000 Series N Shares outstanding.
With respect to any Series N Shares that remain outstanding after December 1, 2018, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series N Shares for the five-year period commencing on December 1, 2018 to, but excluding, December 1, 2023 will be 5.086 percent, being equal to the five-year Government of Canada bond yield of 2.436 percent determined as of today plus 2.65 percent in accordance with the terms of the Series N Shares.
With respect to any Series O Shares that may be issued on December 1, 2018, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series O Shares for the three-month floating rate period commencing on December 1, 2018 to, but excluding, March 1, 2019 will be 1.08 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 1.73 percent plus 2.65 percent in accordance with the terms of the Series O Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.
Beneficial holders of Series N Shares who wish to exercise their right of conversion during the conversion period, which runs from November 1, 2018 until 5:00 p.m. (EST) on November 16, 2018, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.
About Enbridge Inc.
Enbridge Inc. (the Company) is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 62% of U.S.-bound Canadian crude oil exports; and moves approximately 22% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,700 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-provides-notice-of-series-n-preferred-shares-conversion-right-and-announces-reset-dividend-rates-300742775.html
SOURCE Enbridge Inc.
Article Date
11/1/2018Enbridge Gas Distribution Inc. and Union Gas Limited to Amalgamate
Source: PR Newswire
Combined utility to deliver outstanding energy value for consumers
CALGARY, Oct. 15, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) announced it will move forward with the amalgamation of its Ontario based utilities, Enbridge Gas Distribution Inc. (Enbridge Gas Distribution) and Union Gas Limited (Union Gas), with an expected effective date of January 1, 2019.
This decision follows a detailed review of the parameters of the regulatory approval received from the Ontario Energy Board on August 30, 2018, and the approvals of the board of directors of each of Enbridge, Enbridge Gas Distribution and Union Gas.
"Energy affordability and the safe, reliable delivery of natural gas are important to Ontario natural gas customers," noted Cynthia Hansen, Executive Vice President, Utilities and Power Operations, adding, "Union Gas and Enbridge Gas Distribution have long been leaders in delivering exceptional energy value for consumers through an unrelenting focus on safety, operational efficiency and reliability of service. Combining these utilities and leveraging their strengths is an opportunity to do what's best for customers and to position the combined company for future growth and success."
Forward Looking Statements
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project" and similar words and expressions are intended to identify such forward-looking statements. All statements other than statements of historical fact may constitute forward-looking statements Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the completion of the amalgamation, and the timing and expected benefits with respect thereto. Although Enbridge believes these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to the completion, timing and benefits of the transaction, including satisfaction of certain conditions precedent to the transaction, the focus of management time and attention on the transaction and other disruptions arising from the transaction, and economic and competitive conditions.. A further discussion of the risks and uncertainties facing Enbridge can be found in its filings with Canadian and United States securities regulators. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 1,400 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Enbridge Gas Distribution
Enbridge Gas Distribution Inc. has a more than 165-year history and is Canada's largest natural gas distribution company. It is owned by Enbridge Inc., a Canadian-based leader in energy transportation and distribution, and has ranked as one of the Global 100 Most Sustainable Corporations for the past eight years. Enbridge Gas Distribution distributes natural gas to over two million customers in Ontario.
About Union Gas
Union Gas Limited, is a major Canadian natural gas storage, transmission and distribution company based in Ontario with over 100 years of experience and service to customers. The distribution business serves about 1.5 million residential, commercial and industrial customers in more than 400 communities across Ontario. Union Gas, an Enbridge Company-one of Canada's Top 100 Employers for 2018-has assets of $8.9 billion and approximately 2,300 employees. For more information, visit uniongas.com or find us on Facebook: facebook.com/uniongas, LinkedIn: linkedIn.com/uniongas, Twitter: twitter.com/uniongas and YouTube: youtube.com/user/uniongas.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: jesse.semko@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-gas-distribution-inc-and-union-gas-limited-to-amalgamate-300730839.html
SOURCE Enbridge Inc.
Article Date
10/15/2018Enbridge and Brookfield Infrastructure Announce Closing of the Provincially Regulated Portion of the Previously Announced Natural Gas Gathering & Processing Transaction
Source: PR Newswire
CALGARY, Oct. 1, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) ("Enbridge") and Brookfield Infrastructure (NYSE: BIP) (TSX: BIP.UN) and its institutional partners (collectively, "Brookfield"), today announced the closing of the provincially regulated portion of the agreement through which Enbridge will sell its Canadian natural gas gathering and processing business in the Montney, Peace River Arch, Horn River and Liard basins in British Columbia and Alberta ("G&P Business") to Brookfield. The provincially regulated business represents $2.5 billion of the $4.31 billion transaction, previously announced on July 4, 2018.
The G&P Business includes 19 provincially and federally regulated natural gas processing plants and 3,550 kilometers of natural gas gathering pipelines in British Columbia and Alberta. Under Brookfield's ownership, the G&P Business will be named NorthRiver Midstream Inc.
"This investment expands our portfolio of high quality midstream assets with the addition of one of the leading gas gathering and processing businesses in North America," said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure. "We are pleased to acquire these assets through a seamless transition that will allow us to provide uninterrupted service to customers."
"We are pleased to have reached this important milestone in our agreement with Brookfield," said Bill Yardley, Executive Vice President and President, Gas Transmission and Midstream of Enbridge. "We remain committed to the safe and reliable operation of the federally regulated assets during the transition period."
The sale of the remaining federally regulated assets is expected to close in mid-2019.
Forward-Looking Statements
Certain information provided in this news release constitutes forward-looking statements and information within the meaning of applicable Canadian securities laws and within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended and "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 ("FLI"). The words "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words and expressions are intended to identify such FLI. All statement other than statements of historical fact may be FLI. FLI included or incorporated by reference in this news release include, but are not limited to, information with respect to the following: the timing of closing of the transaction in respect the federally regulated facilities; the consideration and the expected net proceeds from the transaction; Enbridge's financial strength and flexibility; intentions regarding the holding of Enbridge's regulated natural gas pipeline investments and Brookfield's intentions post-closing of the transaction; and the transition of the Canadian G&P operations. Although Enbridge and/or Brookfield, as applicable, believes that the FLI is based on information which is current, reasonable and complete, by its nature FLI is necessarily subject to a variety of assumptions, risks and uncertainties pertaining but not limited to the timing and completion of the transactions, including receipt of regulatory approvals and satisfaction of other conditions precedent; the focus of management time and attention on the transaction and other disruptions arising from the transaction; estimated future cash flow, financial strength and flexibility; and economic and competitive conditions. A further discussion of the risks and uncertainties facing each of Enbridge and Brookfield can be found in their respective filings with Canadian and United States securities regulators. While Enbridge and Brookfield each provides the FLI in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge and Brookfield, jointly or severally, assume no obligation to publicly update or revise any FLI provided herein or otherwise, whether as a result of new information, future events or otherwise. All FLI in this news release is expressly qualified in its entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. (the Company) is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Brookfield Infrastructure
Brookfield Infrastructure Partners is a leading global infrastructure company that owns and operates high quality, long-life assets in the utilities, transport, energy and data infrastructure sectors across North and South America, Asia Pacific and Europe. We are focused on assets that generate stable cash flows and require minimal maintenance capital expenditures. Brookfield Infrastructure Partners is listed on the New York and Toronto stock exchanges. Further information is available at www.brookfieldinfrastructure.com.
Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a leading global alternative asset manager with approximately $285 billion of assets under management. For more information, go to www.brookfield.com
FOR FURTHER INFORMATION, PLEASE CONTACT:
Enbridge | Brookfield |
Media Jesse Semko Toll Free: (888) 992-0997 Email: media@enbridge.com | Media Claire Holland (416) 369-8236 |
Investor Relations Jonathan Gould Toll Free: (800) 481-2804 | Investor Relations Melissa Low (416) 956-5239 |
View original content:SOURCE Enbridge Inc.
Article Date
10/1/2018Enbridge Announces Definitive Agreements to Acquire All Public Equity of Enbridge Energy Partners and Enbridge Energy Management, Achieves Significant Milestones Toward Corporate Structure Simplification
Source: PR Newswire
CALGARY and HOUSTON, Sept. 18, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge), on behalf of itself and certain of its wholly owned U.S. subsidiaries, Enbridge Energy Partners, L.P. (NYSE: EEP) (EEP) and Enbridge Energy Management, L.L.C. (NYSE: EEQ) (EEQ) today announced that they have entered into separate definitive agreements (Agreements) under which Enbridge will acquire all of the outstanding public Class A common units of EEP and all of the outstanding public Listed Shares of EEQ. The acquired equity of the combined transactions is valued at US$3.5 billion based on the closing price of Enbridge's common shares on the New York Stock Exchange (NYSE) on September 17, 2018.
Pursuant to the Agreement for the EEP buy-in, EEP public unitholders will receive 0.3350 common shares of Enbridge for each Class A common unit of EEP (EEP Exchange Ratio), which represents an 8.7% increase to the exchange ratio proposed by Enbridge on May 17, 2018, of 0.3083 Enbridge common shares per EEP Class A common unit. Pursuant to the Agreement for the EEQ buy-in, EEQ public shareholders will receive 0.3350 common shares of Enbridge for each Listed Share of EEQ (EEQ Exchange Ratio), which is at parity with the EEP Exchange Ratio.
These Agreements, in conjunction with the definitive agreement reached with Enbridge Income Fund Holdings Inc. (TSX: ENF) (ENF) announced today, and the previously announced definitive agreement reached with Spectra Energy Partners, LP (NYSE: SEP) (SEP) on August 24, 2018, represent the achievement of significant milestones in the simplification of Enbridge's corporate structure. Upon closing of these buy-in transactions, the rollup of these sponsored vehicles will streamline Enbridge's corporate and capital structures and brings all of the core liquids and gas pipeline assets under the umbrella of a single publicly-traded entity to the benefit of all shareholders and unitholders.
Benefits and Considerations for EEP Unitholders and EEQ Shareholders
Significant weakening of the U.S. Master Limited Partnership (MLP) capital markets has adversely affected the growth opportunities for MLPs, including EEP. MLPs are dependent on consistent access to capital markets at an effective cost of capital to fund projects to grow their distributions. The respective March 15 and July 18, 2018 income tax allowance policy announcement and order by the Federal Energy Regulatory Commission (FERC), and the regulatory rate impact from the U.S. Tax Cuts and Jobs Act have had a net significant adverse impact on EEP. If EEP were to continue as a stand-alone entity, after taking into account its lower revenue and weak MLP capital markets, it would be required to transition to a self-funding model with no cost effective access to equity capital. EEP's priority would be to strengthen its balance sheet, which would require near term incremental Enbridge support, and reduce its distributions, which would have corresponding negative implications to EEQ. The transaction premiums are attractive to EEP unitholders and EEQ shareholders, particularly in light of EEP's expected distribution reduction as a stand-alone entity. The EEP Exchange Ratio and EEQ Exchange Ratio represent an 8.7% and 16.0%, respectively, increase to the exchange ratio proposed by Enbridge on May 17, 2018.
These transactions offer EEP public unitholders and EEQ public shareholders a superior investment proposition in Enbridge common shares, including:
Benefits and Considerations for Enbridge Shareholders
The buy-ins of EEP and EEQ are strategically and economically attractive to current and future Enbridge shareholders and provide substantial benefits, including:
Considering these transactions, in combination with the ENF and SEP buy-ins, there is no change to Enbridge's current three year financial guidance, including the 10% dividend growth rate through 2020, supported by several positive developments in the business, including the success of Enbridge's recent asset divestiture program which has exceeded expectations.
Other Information
As a result of the mergers provided for under the Agreements, Enbridge would acquire all of the 215.7 million public outstanding Class A common units of EEP and all of the public outstanding Listed Shares of EEQ at the time of the closing, which currently total 87.1 million shares, at an agreed exchange ratio of 0.3350 common shares of Enbridge for each Class A common unit of EEP and each Listed Share of EEQ. In aggregate, based on these fixed exchange ratios, Enbridge would issue an estimated 101.4 million Enbridge common shares in connection with these transactions, representing approximately 6% of the total number of Enbridge common shares outstanding. Following consummation of the mergers, EEP and EEQ will become wholly owned subsidiaries of Enbridge.
A more detailed description of the Agreements will be set forth in an Enbridge Current Report on Form 8-K that it expects to file with the Securities and Exchange Commission (SEC) after markets close on September 18, 2018.
The transactions have been approved by the board of directors of Enbridge and certain of its wholly owned U.S. subsidiaries. The board of directors of EEQ, in its capacity as the delegate of the general partner of EEP (in such capacity, EEP Board) and the board of directors of EEQ (EEQ Board) delegated to their respective special committees consisting solely of independent directors (EEP Special Committee and EEQ Special Committee), the authority to review, evaluate and negotiate the proposed buy-in on behalf of EEP and EEQ, respectively. The respective EEP and EEQ Special Committees unanimously approved the respective EEP and EEQ buy-in transactions and recommended approval of the transactions to the EEP and EEQ Boards. The EEP transaction has been approved by the EEP Board based on the recommendation, and the EEQ transaction has been approved by the EEQ Board based on the recommendation. Each of the EEP Board and the EEQ Board unanimously recommends that the EEP unitholders and EEQ shareholders vote in favor of the respective Agreements.
Pursuant to the agreement for the EEP buy-in transaction, approval of (i) at least two-thirds of the outstanding limited partner units of EEP and (ii) a majority of the outstanding Class A common units of EEP (other than Class A common units held by Enbridge and its affiliates) and the outstanding I-Units of EEP held by EEQ (other than I-Units voted at the direction of Enbridge and its affiliates), voting as a single class, is required to close that transaction.
Pursuant to the Agreement for the EEQ buy-in transaction, approval of a majority of the outstanding Listed Shares of EEQ (other than the Listed Shares held by Enbridge and its affiliates) is required to close the transaction. The closing of the EEP buy-in transaction is a condition to close the EEQ buy-in transaction. Voting is to occur in person or by proxy at respective special EEP unitholder and EEQ shareholder meetings called to consider the Agreements, targeted to be held late in the fourth quarter of 2018.
The respective closing of the EEP and EEQ buy-in transactions are also targeted to occur late in the fourth quarter, and in each case, will be subject to securing the respective EEP unitholder and EEQ shareholder approvals referenced above and other customary closing conditions. Therefore, subject to EEQ Board approval, EEP is expected to pay a cash distribution to its unitholders and EEQ is expected to pay a stock dividend to its shareholders in the fourth quarter consistent with previously disclosed distribution and dividend guidance.
After being filed, EEP unitholders and EEQ shareholders will be able to obtain copies of the proxy statement/prospectus related to the EEP buy-in transaction and the proxy statement/prospectus related to the EEQ buy-in transaction, without charge, at the SEC's internet site (http://www.sec.gov).
BofA Merrill Lynch and Scotiabank acted as financial advisors to Enbridge. McCarthy Tetrault LLP, Sullivan & Cromwell LLP and Vinson & Elkins LLP acted as Canadian legal and tax, U.S. legal and U.S. tax advisors, respectively, to Enbridge.
Evercore acted as financial advisor to the EEP Special Committee and Goldman Sachs &Co. LLC acted as financial advisor to the EEQ Special Committee, while Bracewell LLP and Morris, Nichols, Arsht & Tunnell LLP acted as legal advisor to the EEP Special Committee and the EEQ Special Committee.
Forward-Looking Statements
This communication includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward‑looking statements are based on the beliefs and assumptions of Enbridge Inc. ("Enbridge"), Enbridge Energy Partners, L.P. ("EEP"), Enbridge Energy Management, L.L.C. ("EEQ"), Spectra Energy Partners, LP ("SEP"), and Enbridge Income Fund Holdings Inc. ("ENF" and, together with EEP, EEQ and SEP, the "Sponsored Vehicles"). These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast and similar expressions and include, but are not limited to, statements regarding the expected closing, consummation, completion, timing and benefits of the proposed acquisitions of the Sponsored Vehicles (collectively , the "Proposed Transactions"), the expected synergies and equity holder value to result from the combined companies, the expected levels of cash distributions or dividends by the Sponsored Vehicles to their respective shareholders or unitholders, the expected levels of dividends by Enbridge to its shareholders, the expected financial results of Enbridge and its Sponsored Vehicles and their respective affiliates, and the future credit ratings, financial condition and business strategy of Enbridge, its Sponsored Vehicles and their respective affiliates.
Although Enbridge and its Sponsored Vehicles believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids ("NGL") and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labor and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for projects; anticipated in-service dates; weather; the timing and closing of dispositions; the realization of anticipated benefits and synergies of the Proposed Transactions; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of capital project execution on future cash flows; credit ratings; capital project funding; expected earnings; expected future cash flows; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for Enbridge's and its Sponsored Vehicles' services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments and may impact levels of demand for Enbridge's and its Sponsored Vehicles' services and cost of inputs, and are therefore inherent in all forward‑looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the impact of the Proposed Transactions, expected earnings and cash flow or estimated future dividends.
Forward‑looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. There are a number of important factors that could cause actual results to differ materially from those indicated in any forward‑looking statement including, but not limited to: the risk that the Proposed Transactions do not occur; negative effects from the pendency of the Proposed Transactions; the ability to realize expected cost savings and benefits from the Proposed Transactions; the timing to consummate the Proposed Transactions; whether the Sponsored Vehicles or Enbridge will produce sufficient cash flows to provide the level of cash distributions they expect with respect to their respective units or shares; outcomes of litigation and regulatory investigations, proceedings or inquiries; operating performance of Enbridge and its Sponsored Vehicles; regulatory parameters regarding Enbridge and its Sponsored Vehicles; other Enbridge dispositions; project approval and support; renewals of rights of way; weather, economic and competitive conditions; public opinion; changes in tax laws and tax rates; changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities; and any other risks and uncertainties discussed herein or in Enbridge's or its Sponsored Vehicles' other filings with Canadian and United States securities regulators. All forward-looking statements in this communication are made as of the date hereof and, except to the extent required by applicable law, neither Enbridge nor any of the Sponsored Vehicles assume any obligation to publicly update or revise any forward‑looking statements made in this communication or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward‑looking statements, whether written or oral, attributable to Enbridge, its Sponsored Vehicles or persons acting on their behalf, are expressly qualified in their entirety by these cautionary statements. The factors described above, as well as additional factors that could affect Enbridge's or any of its Sponsored Vehicles' respective forward‑looking statements, are described under the headings "Risk Factors" and "Cautionary Statement Regarding Forward‑Looking Information" in Enbridge's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which was filed with the U.S. Securities and Exchange Commission ("SEC") and Canadian securities regulators on February 16, 2018, each of EEP's, EEQ's and SEP's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which were filed with the SEC on February 16, 2018, ENF's Management's Discussion and Analysis for the year ended December 31, 2017, which was filed with Canadian securities regulators on February 16, 2018, and in Enbridge's and its Sponsored Vehicles' respective other filings made with the SEC and Canadian securities regulators, which are available via the SEC's website at www.sec.gov and at www.sedar.com, as applicable.
Additional Information about Enbridge and the Proposed Transactions and Where to Find It
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any proxies or approval. The Proposed Transactions will be submitted to the shareholders of EEQ or ENF or unitholders of EEP or SEP, as applicable, for their consideration. Enbridge will file with the SEC proxy statements of EEQ and EEP, respectively, and a consent statement of SEP, each of which will also constitute a prospectus of Enbridge. Enbridge and its Sponsored Vehicles also plan to file other documents with the SEC and Canadian securities regulators regarding the Proposed Transactions. INVESTORS AND SECURITY HOLDERS OF ENBRIDGE AND ITS SPONSORED VEHICLES ARE URGED TO READ THE APPLICABLE REGISTRATION STATEMENT, PROXY OR CONSENT SOLICITATION STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS THAT WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTIONS. Investors, shareholders and unitholders will be able to obtain free copies of such documents containing important information about Enbridge and its Sponsored Vehicles once such documents are filed with the SEC, through the website maintained by the SEC at http://www.sec.gov. Copies can also be obtained, without charge, by directing a request to Enbridge Inc., 200, 425 – 1st Street S.W., Calgary, Alberta, Canada T2P 3L8, Attention: Investor Relations.
Participants in the Solicitations
Enbridge, each of its Sponsored Vehicles, and certain of their respective directors and executive officers, may be deemed participants in the solicitation of consents or proxies from the holders of equity securities of the Sponsored Vehicles in connection with the Proposed Transactions. Information about the directors and executive officers of Enbridge is set forth in its definitive proxy statement filed with the SEC on April 5, 2018. Information about the directors and executive officers of EEP, EEQ and SEP is set forth in EEP's, EEQ's and SEP's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, respectively, each of which was filed with the SEC on February 16, 2018. Information about the directors and executive officers of ENF is set forth in ENF's Annual Information Form for the fiscal year ended December 31, 2017, which was filed with Canadian securities regulators on February 16, 2018. Each of these documents can be obtained free of charge from the sources indicated above. Other information regarding the participants in any consent or proxy solicitation with respect to the Proposed Transactions and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the relevant materials to be filed by Enbridge and the Sponsored Vehicles with the SEC when they become available.
About Enbridge Inc.
Enbridge Inc. (the Company) is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Enbridge Energy Partners, L.P.
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil transportation systems in the United States. Its principal crude oil system is the largest pipeline transporter of growing oil production from western Canada and the North Dakota Bakken formation. The system's deliveries to refining centers and connected carriers in the United States account for approximately 25 percent of total U.S. oil imports. Enbridge Energy Partners, L.P. is traded on the New York Stock Exchange under the symbol EEP; information about the partnership is available on its website at www.enbridgepartners.com.
About Enbridge Energy Management, L.L.C.
Enbridge Energy Management, L.L.C. manages the business and affairs of Enbridge Energy Partners, L.P. (EEP), and its sole asset is an approximate 21 percent limited partner interest in EEP. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. of Calgary, Alberta, Canada (NYSE: ENB) (TSX: ENB) is the general partner of EEP and holds an approximate 35 percent interest in the partnership. Enbridge Energy Management is the delegate of the general partner of EEP.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media:
Michael Barnes
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community:
Enbridge Inc.
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
Enbridge Energy Partners, L.P. & Enbridge Energy Management, L.L.C.
Roni Cappadonna
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:SOURCE Enbridge Inc.
Article Date
9/18/2018Enbridge Announces Definitive Agreement to Acquire All Public Equity of Enbridge Income Fund Holdings Inc., Achieves Significant Milestones Toward Corporate Structure Simplification
Source: PR Newswire
CALGARY, Sept. 18, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) and Enbridge Income Fund Holdings Inc. (TSX: ENF) (ENF) today announced that they have entered into a definitive arrangement agreement (the Agreement) under which Enbridge will acquire all of the issued and outstanding public common shares of ENF (the Arrangement), subject to the approval of ENF shareholders.
Under the terms of the Agreement, each common share of ENF (ENF Share) will be exchanged for 0.7350 (the Agreed Exchange Ratio) of a common share of Enbridge (Enbridge Shares) and cash of $0.45 per ENF Share (the Cash Component). ENF shareholders will also be entitled to receive the Enbridge fourth quarter dividend as described below. The Agreed Exchange Ratio represents an increase of 9.8% relative to the unaffected ENF exchange ratio on May 16, 2018, and 11.3% inclusive of the Cash Component. The total transaction is valued at $4.7 billion, based on the closing price of the Enbridge Shares on the Toronto Stock Exchange (TSX) on September 17, 2018.
This Agreement, in conjunction with the definitive agreements reached with Enbridge Energy Partners, L.P. (NYSE: EEP) (EEP) and Enbridge Energy Management, L.L.C. (NYSE: EEQ) (EEQ) announced today, and the previously announced Spectra Energy Partners, LP (NYSE: SEP) (SEP) transaction on August 24, 2018, represent the achievement of significant milestones in the simplification of Enbridge's corporate structure. Upon closing of these buy-in transactions, the rollup of these sponsored vehicles will streamline Enbridge's corporate and capital structures and brings all of the core liquids and gas pipeline assets under the umbrella of a single publicly-traded entity to the benefit of all shareholders and unitholders.
Benefits and Considerations for ENF Shareholders
ENF's sole asset is its investment in Enbridge Income Fund (the Fund) which owns interests in high quality liquids and gas pipeline systems controlled by Enbridge, including the Canadian Mainline Pipeline System. ENF shareholders will participate in a much larger and more diversified portfolio of assets and opportunities within Enbridge, providing exposure to a higher expected dividend growth rate post-2020 as well as enhanced dividend coverage and liquidity.
The Arrangement offers ENF public shareholders a compelling investment proposition in Enbridge Shares, including:
Also, as noted above, ENF shareholders will be entitled to Enbridge's fourth quarter dividend and ENF's monthly dividends through to closing of the Arrangement, subject to the adjustments as follows. If the Arrangement closes as expected before the record date for Enbridge's fourth quarter dividend, expected to be November 15, 2018, to be paid in early December (the ENB December Dividend), an ENF shareholder will receive, as an ENB shareholder, the ENB December Dividend and the ENF dividend to be paid in November to ENF shareholders of record on October 31, 2018. In the event the Arrangement closes after the record date for the ENB December Dividend, the Cash Component will be increased for the ENB December Dividend based upon the Agreed Exchange Ratio less any dividends paid by ENF to its shareholders after November 30, 2018.
In addition, based on the closing price of the Enbridge Shares on the TSX on September 17, 2018, the Agreed Exchange Ratio together with the Cash Component represents an approximate 19% premium to the closing price of an ENF Share on the TSX on May 16, 2018, which was the last trading day immediately before the announcement of Enbridge's offer to acquire the ENF Shares held by the public.
Benefits and Considerations for Enbridge Shareholders
The buy-in of ENF is strategically and economically attractive to current and future Enbridge shareholders and provides substantial benefits, including:
Considering this transaction, in combination with the SEP, EEP and EEQ buy-ins, there is no change to Enbridge's current three-year financial guidance, including the 10% dividend growth rate through 2020, supported by several positive developments in the business, including the success of Enbridge's recent asset divestiture program which has exceeded expectations.
Other Information
As a result of the Arrangement, Enbridge would acquire all of the issued and outstanding public ENF Shares, which currently total 141.3 million shares, at the fixed Agreed Exchange Ratio of 0.7350 of an Enbridge Share for each ENF Share, plus the Cash Component of $0.45 per ENF Share. Based on the Agreed Exchange Ratio and current ENF Shares outstanding, Enbridge would issue an estimated 103.9 million Enbridge Shares in connection with the Arrangement, representing approximately 6% of the total number of Enbridge Shares outstanding.
A description of the Agreement will be set forth in Enbridge's Current Report on Form 8-K that it expects to file with the Securities and Exchange Commission (the SEC) on EDGAR at www.sec.gov and with Canadian securities regulators on SEDAR at www.sedar.com, as well as in ENF's Material Change Report to be filed on SEDAR.
The Arrangement has been approved by the board of directors of Enbridge. The board of directors of ENF (ENF Board) delegated to a special committee consisting solely of independent directors (ENF Special Committee) the authority to, among other things, review, evaluate and negotiate the Arrangement on behalf of ENF. The ENF Special Committee unanimously approved the Arrangement and recommended approval of the Arrangement to the ENF Board. In addition, Tudor, Pickering, Holt & Co., acting as financial advisor to the ENF Special Committee, has provided its opinion to the ENF Special Committee (subject to assumptions and qualifications) that the consideration to be received by ENF shareholders (other than Enbridge) pursuant to the Arrangement is fair, from a financial point of view, to such ENF shareholders (the Fairness Opinion). After considering, among other things, the recommendation of the ENF Special Committee and its receipt of the Fairness Opinion, the ENF Board has unanimously (with one director who is an officer of Enbridge abstaining) determined that the Arrangement is in the best interests of ENF and fair to the ENF shareholders (other than Enbridge) and unanimously (with one director who is an officer of Enbridge abstaining) recommends that such ENF shareholders vote in favor of the Arrangement.
The Arrangement is subject to the approval (i) by 66 2/3% of the votes cast by ENF shareholders present in person or by proxy at a special shareholders meeting (the Meeting) called to consider the Arrangement, and (ii) by a majority of the votes cast by ENF shareholders, present in person or by proxy at the Meeting, after excluding the votes cast by Enbridge, its affiliates and certain other related parties.
Closing of the Arrangement is expected to occur in mid-November 2018, subject to ENF shareholder approval at the Meeting to be scheduled later in the fourth quarter of 2018, the approval of the Court of Queen's Bench of Alberta, regulatory approvals as required and other customary closing conditions.
A copy of the Agreement will be filed by Enbridge with the U.S. Securities and Exchange Commission and Canadian securities regulators, and will be available for viewing at www.sec.gov and at www.sedar.com. ENF shareholders will receive a copy of the Management Information Circular with respect to the Meeting. The Management Information Circular, as well as other filings containing information about the Arrangement including the Agreement, will also be available, without charge, on ENF's website, www.enbridgeincomefund.com, and on www.sedar.com.
Scotiabank and BofA Merrill Lynch are acting as financial advisors to Enbridge. McCarthy Tétrault LLP, Sullivan & Cromwell LLP and Vinson & Elkins LLP are acting as Canadian, U.S. legal and tax advisors, respectively, to Enbridge.
Tudor, Pickering, Holt & Co. acted as financial advisor to the ENF Special Committee, while Norton Rose Fulbright Canada LLP acted as legal advisor to the ENF Special Committee.
Forward-Looking Statements
This communication includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward‑looking statements are based on the beliefs and assumptions of Enbridge Inc. ("Enbridge"), Enbridge Energy Partners, L.P. ("EEP"), Enbridge Energy Management, L.L.C. ("EEQ"), Spectra Energy Partners, LP ("SEP"), and Enbridge Income Fund Holdings Inc. ("ENF" and, together with EEP, EEQ and SEP, the "Sponsored Vehicles"). These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast and similar expressions and include, but are not limited to, statements regarding the expected closing, consummation, completion, timing and benefits of the proposed acquisitions of the Sponsored Vehicles (collectively the "Proposed Transactions"), the expected synergies and equity holder value to result from the combined companies, the expected levels of cash distributions or dividends by the Sponsored Vehicles to their respective shareholders or unitholders, the expected levels of dividends by Enbridge to its shareholders, the expected financial results of Enbridge and its Sponsored Vehicles and their respective affiliates, and the future credit ratings, financial condition and business strategy of Enbridge, its Sponsored Vehicles and their respective affiliates.
Although Enbridge and its Sponsored Vehicles believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids ("NGL") and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labor and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for projects; anticipated in-service dates; weather; the timing and closing of dispositions; the realization of anticipated benefits and synergies of the Proposed Transactions; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of capital project execution on future cash flows; credit ratings; capital project funding; expected earnings; expected future cash flows; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for Enbridge's and its Sponsored Vehicles' services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments and may impact levels of demand for Enbridge's and its Sponsored Vehicles' services and cost of inputs, and are therefore inherent in all forward‑looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the impact of the Proposed Transactions, expected earnings and cash flow or estimated future dividends.
Forward‑looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. There are a number of important factors that could cause actual results to differ materially from those indicated in any forward‑looking statement including, but not limited to: the risk that the Proposed Transactions do not occur; negative effects from the pendency of the Proposed Transactions; the ability to realize expected cost savings and benefits from the Proposed Transactions; the timing to consummate the Proposed Transactions; whether the Sponsored Vehicles or Enbridge will produce sufficient cash flows to provide the level of cash distributions they expect with respect to their respective units or shares; outcomes of litigation and regulatory investigations, proceedings or inquiries; operating performance of Enbridge and its Sponsored Vehicles; regulatory parameters regarding Enbridge and its Sponsored Vehicles; other Enbridge dispositions; project approval and support; renewals of rights of way; weather, economic and competitive conditions; public opinion; changes in tax laws and tax rates; changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities; and any other risks and uncertainties discussed herein or in Enbridge's or its Sponsored Vehicles' other filings with Canadian and United States securities regulators. All forward-looking statements in this communication are made as of the date hereof and, except to the extent required by applicable law, neither Enbridge nor any of the Sponsored Vehicles assume any obligation to publicly update or revise any forward‑looking statements made in this communication or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward‑looking statements, whether written or oral, attributable to Enbridge, its Sponsored Vehicles or persons acting on their behalf, are expressly qualified in their entirety by these cautionary statements. The factors described above, as well as additional factors that could affect Enbridge's or any of its Sponsored Vehicles' respective forward‑looking statements, are described under the headings "Risk Factors" and "Cautionary Statement Regarding Forward‑Looking Information" in Enbridge's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which was filed with the U.S. Securities and Exchange Commission ("SEC") and Canadian securities regulators on February 16, 2018, each of EEP's, EEQ's and SEP's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which were filed with the SEC on February 16, 2018, ENF's Management's Discussion and Analysis for the year ended December 31, 2017, which was filed with Canadian securities regulators on February 16, 2018, and in Enbridge's and its Sponsored Vehicles' respective other filings made with the SEC and Canadian securities regulators, which are available via the SEC's website at www.sec.gov and at www.sedar.com, as applicable.
Additional Information about Enbridge and the Proposed Transactions and Where to Find It
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any proxies or approval. The Proposed Transactions will be submitted to the shareholders of EEQ or ENF or unitholders of EEP or SEP, as applicable, for their consideration. Enbridge will file with the SEC proxy statements of EEQ and EEP, respectively, and a consent statement of SEP, each of which will also constitute a prospectus of Enbridge. Enbridge and its Sponsored Vehicles also plan to file other documents with the SEC and Canadian securities regulators regarding the Proposed Transactions. INVESTORS AND SECURITY HOLDERS OF ENBRIDGE AND ITS SPONSORED VEHICLES ARE URGED TO READ THE APPLICABLE REGISTRATION STATEMENT, PROXY OR CONSENT SOLICITATION STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS THAT WILL BE FILED WITH THE SEC OR CANADIAN SECURITIES REGULATORS, AS APPLICABLE, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTIONS. Investors, shareholders and unitholders will be able to obtain free copies of such documents containing important information about Enbridge and its Sponsored Vehicles once such documents are filed with the SEC, through the website maintained by the SEC at http://www.sec.gov or with Canadian securities regulators through the SEDAR website at www.sedar.com, as applicable. Copies can also be obtained, without charge, by directing a request to Enbridge Inc., 200, 425 – 1st Street S.W., Calgary, Alberta, Canada T2P 3L8, Attention: Investor Relations.
Participants in the Solicitations
Enbridge, each of its Sponsored Vehicles, and certain of their respective directors and executive officers, may be deemed participants in the solicitation of consents or proxies from the holders of equity securities of the Sponsored Vehicles in connection with the Proposed Transactions. Information about the directors and executive officers of Enbridge is set forth in its definitive proxy statement filed with the SEC on April 5, 2018. Information about the directors and executive officers of EEP, EEQ and SEP is set forth in EEP's, EEQ's and SEP's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, respectively, each of which was filed with the SEC on February 16, 2018. Information about the directors and executive officers of ENF is set forth in ENF's Annual Information Form for the fiscal year ended December 31, 2017, which was filed with Canadian securities regulators on February 16, 2018. Each of these documents can be obtained free of charge from the sources indicated above. Other information regarding the participants in any consent or proxy solicitation with respect to the Proposed Transactions and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the relevant materials to be filed by Enbridge and the Sponsored Vehicles with the SEC when they become available.
About Enbridge Inc.
Enbridge Inc. (the Company) is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Enbridge Income Fund Holdings Inc.
Enbridge Income Fund Holdings Inc., through its investment in Enbridge Income Fund, indirectly holds high quality, low-risk energy infrastructure assets. The Fund's assets consist of a portfolio of Canadian liquids transportation and storage businesses, including the Canadian Mainline, the Regional Oil Sands System, the Canadian segment of the Southern Lights Pipeline, Class A units entitling the holder to receive defined cash flows from the United States segment of the Southern Lights Pipeline, a 50 percent interest in the Alliance Pipeline, which transports natural gas from Canada to the United States, and interests in more than 1,400 megawatts of renewable and alternative power generation assets. Enbridge Income Fund Holdings Inc. is a publicly traded corporation on the Toronto stock exchange under the symbol ENF; information about the Company is available on the Company's website at www.enbridgeincomefund.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media:
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community:
Enbridge Inc.
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
Enbridge Income Fund Holdings Inc.
Nafeesa Kassam
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:SOURCE Enbridge Inc.
Article Date
9/18/2018Decision Received from the Ontario Energy Board on Enbridge Gas Distribution and Union Gas Limited Amalgamation
Source: PR Newswire
CALGARY, Aug. 30, 2018 /PRNewswire/ - Today, Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) received a decision from the Ontario Energy Board (OEB) approving the amalgamation of Enbridge Gas Distribution and Union Gas Limited.
This decision from the OEB is an important step in determining how, and if, Enbridge Gas Distribution and Union Gas will amalgamate. Enbridge will undertake a detailed review of the OEB's decision, and approved parameters, and make a final determination on the amalgamation of its utilities.
About Enbridge Inc.
Enbridge Inc. (the Company) is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media:
Michael Barnes
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community:
Enbridge Inc.
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/decision-received-from-the-ontario-energy-board-on-enbridge-gas-distribution-and-union-gas-limited-amalgamation-300705242.html
SOURCE Enbridge Inc.
Article Date
8/31/2018Enbridge Announces Definitive Agreement to Acquire All Public Equity of Spectra Energy Partners, Advances Corporate Structure Simplification
Source: PR Newswire
CALGARY and HOUSTON, TX, Aug. 24, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) on behalf of itself and certain of its wholly owned US subsidiaries and Spectra Energy Partners, LP (NYSE:SEP) (SEP) today announced that they have entered into a definitive agreement ("Agreement") under which Enbridge will acquire all of the outstanding public common units of SEP on the basis of 1.111 common shares of Enbridge for each common unit of SEP ("Agreed Exchange Ratio"). The Agreed Exchange Ratio represents a 9.8% increase to the exchange ratio offered by Enbridge on May 17, 2018 of 1.0123 Enbridge common shares per SEP common unit. The transaction is valued at US $3.3 billion / CAN $4.3 billion based on the closing price of Enbridge's common shares on the New York Stock Exchange (NYSE) / Toronto Stock Exchange (TSX) on August 23, 2018.
Benefits and Considerations for SEP Unitholders
Significant weakening of the US Master Limited Partnership (MLP) capital markets has adversely affected the growth opportunities for MLPs, including SEP. MLPs are dependent on consistent access to the capital markets at a reasonable cost of capital to grow their distributions. If SEP were to continue as a stand-alone entity in such an environment, it would be required to transition to a self-funding model using internally generated cash flow. SEP's priority would be to strengthen its balance sheet thereby limiting future distribution growth.
This transaction offers SEP public unitholders a superior investment proposition in Enbridge common shares, including:
The transaction also provides SEP unitholders an attractive value reflecting, among other factors, the July 18, 2018 FERC Order on Rehearing, which clarified its revised policy on the treatment of income taxes for MLPs. The clarification could potentially improve SEP's position relative to its cost of service assets given the magnitude of SEP's historical deferred income tax balances, and is therefore uniquely positive for SEP among the Enbridge family of sponsored vehicles.
The transaction premium is attractive particularly in light of SEP's limited future capacity for distribution growth. Also, for SEP unitholders, the value received removes uncertainty overhang created by the FERC policy announcements.
Benefits and Considerations for Enbridge Shareholders
The buy-in of SEP is strategically and economically attractive to current and future Enbridge shareholders and provides substantial benefits, including:
Other Information
As a result of the merger, Enbridge would acquire all of the 81.9 million public outstanding common units of SEP at a fixed exchange ratio of 1.111 common shares of Enbridge for each common unit of SEP. In aggregate, based on the Agreed Exchange Ratio, Enbridge would issue an estimated 91.0 million Enbridge common shares in connection with the transaction, representing approximately 5 percent of the total number of Enbridge common shares outstanding.
A more detailed description of the Agreement will be set forth in Enbridge's Current Report on Form 8-K that it expects to file with the Securities and Exchange Commission (the SEC) on August 24, 2018.
The transaction has been approved by the board of directors of Enbridge and certain of its wholly owned US subsidiaries. The board of directors of the general partner of SEP (SEP Board) delegated to a conflicts committee consisting solely of independent directors (SEP Conflicts Committee) the authority to review, evaluate and negotiate the transaction on behalf of SEP. The SEP Conflicts Committee unanimously approved the transaction and recommended approval of the transaction to the SEP Board. The transaction has been approved by the SEP Board based on that recommendation. Pursuant to the Agreement, Enbridge has irrevocably and unconditionally agreed to deliver its consent, with respect to all of the SEP common units owned by its wholly-owned subsidiaries, in favor of approval of the transaction. As the majority SEP unitholder (83% of total SEP common units outstanding), Enbridge's approval by consent will constitute the requisite SEP unitholder vote required to approve the transaction.
Closing of the transaction is expected to occur in the fourth quarter of 2018 and will be subject to customary closing conditions. If the transaction does not close before the record date for SEP's distribution to be paid in the fourth quarter of 2018, and subject to SEP Board approval, SEP is expected to pay a cash distribution to its unitholders in the fourth quarter consistent with previously disclosed distribution guidance. Based on an expected fourth quarter closing date for the transaction, a SEP unitholder will receive either a SEP cash distribution or an Enbridge cash dividend.
After being filed, SEP unitholders will be able to obtain a copy of the consent solicitation statement/prospectus related to the transaction, as well as other filings containing information about the proposed transaction, without charge, at the SEC's internet site (http://www.sec.gov).
BofA Merrill Lynch and Scotiabank are acting as financial advisors to Enbridge. McCarthy Tetrault LLP, Sullivan & Cromwell LLP and Vinson & Elkins LLP are acting as Canadian, U.S. legal and tax advisors, respectively, to Enbridge.
Jefferies LLC acted as financial advisor to the SEP Conflicts Committee, while Sidley Austin LLP acted as legal advisor to the SEP Conflicts Committee.
FORWARD-LOOKING INFORMATION
This communication includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward‑looking statements are based on Enbridge's and SEP's respective beliefs and assumptions. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast and similar expressions and include, but are not limited to, statements regarding the expected closing, consummation, completion, timing and benefits of the proposed merger of SEP and Autumn Acquisition Sub, LLC, a Delaware limited liability company and a wholly‑owned subsidiary of Enbridge (the "Proposed Merger"), the expected synergies and shareholder value to result from the combined company, the expected levels of cash distributions by SEP with respect to its common units, the expected levels of dividends by Enbridge to its shareholders, the expected financial results of Enbridge, SEP and their affiliates, future credit ratings, financial condition and business strategy of Enbridge, SEP and their affiliates.
Although SEP and Enbridge believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids ("NGL") and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labor and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for projects; anticipated in-service dates; weather; the timing and closing of dispositions; the realization of anticipated benefits and synergies of the Proposed Merger; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of capital project execution on future cash flows; credit ratings; capital project funding; expected earnings; expected future cash flows; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for SEP's and Enbridge's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments and may impact levels of demand for SEP's and Enbridge's services and cost of inputs, and are therefore inherent in all forward‑looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the impact of the Proposed Merger, expected earnings and cash flow or estimated future dividends. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labor and construction materials; the effects of inflation and foreign exchange rates on labor and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Forward‑looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. Factors that could cause actual results to differ materially from those indicated in any forward‑looking statement include, but are not limited to: the risk that the Proposed Merger does not occur; negative effects from the pendency of the Proposed Merger; the ability to realize expected cost savings and benefits; the timing to consummate the Proposed Merger; whether SEP will produce sufficient cash flows to provide the level of cash distributions SEP expects with respect to its common units; whether Enbridge will produce sufficient cash flows to provide the level of dividends Enbridge expects with respect to its common shares; outcomes of litigation and regulatory investigations, proceedings or inquiries; operating performance of SEP and Enbridge; regulatory parameters regarding SEP and Enbridge; other Enbridge dispositions; the proposed simplification of Enbridge's corporate structure; project approval and support; renewals of rights of way; weather, economic and competitive conditions; public opinion; changes in tax laws and tax rates; changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities; and any other risks and uncertainties discussed herein or in Enbridge's and SEP's other filings with Canadian and United States securities regulators. Except to the extent required by applicable law, Enbridge and SEP assume no obligation to publicly update or revise any forward‑looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge, SEP or persons acting on their behalf, are expressly qualified in their entirety by these cautionary statements. These factors, as well as additional factors that could affect Enbridge's or SEP's respective forward‑looking statements, are described under the headings "Risk Factors" and "Cautionary Statement Regarding Forward‑Looking Information" in Enbridge's 2017 Form 10‑K, filed with the U.S. Securities and Exchange Commission ("SEC") and Canadian securities regulators on February 16, 2018, SEP's 2017 Form 10‑K, filed with the SEC on February 16, 2018, and in Enbridge's and SEP's respective other filings made with the SEC and Canadian securities regulators, which are available via the SEC's website at www.sec.gov and at www.sedar.com, as applicable. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than Enbridge or SEP has described. All forward-looking statements in this release are made as of the date hereof and neither Enbridge nor SEP undertakes any obligation to publicly update or revise any forward-looking statements in this release, whether as a result of new information, future events or otherwise.
IMPORTANT NOTICE TO INVESTORS
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any consent or approval. The proposed merger between Enbridge and SEP will be submitted to the unitholders of SEP for their consideration. Enbridge will file with the SEC a consent solicitation statement of SEP that also constitutes a prospectus of Enbridge. Enbridge and SEP also plan to file other documents with the SEC regarding the proposed merger. INVESTORS AND SECURITY HOLDERS OF ENBRIDGE AND SEP ARE URGED TO READ THE CONSENT SOLICITATION STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS THAT WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER. Investors and unitholders will be able to obtain free copies of the consent solicitation statement/prospectus and other documents containing important information about Enbridge and SEP once such documents are filed with the SEC, through the website maintained by the SEC at http://www.sec.gov. Copies of the consent solicitation statement/prospectus and the filings with the SEC that will be incorporated by reference in the consent solicitation statement/prospectus can also be obtained, without charge, by directing a request either to Enbridge Inc., 200, 425 – 1st Street S.W., Calgary, Alberta, Canada T2P 3L8, Attention: Investor Relations or to Spectra Energy Partners, LP, 5400 Westheimer Court, Houston, Texas 77056, Attention: Investor Relations.
Participants in the Solicitation
Enbridge, and certain of its directors and executive officers, SEP, and certain of the directors and executive officers of GP, LLC, which manages the business and affairs of SEP, may be deemed participants in the solicitation of consent from the holders of SEP Common Units in connection with the Merger. Information about the directors and executive officers of Enbridge is set forth in its definitive proxy statement filed with the SEC on April 5, 2018. Information about the directors and executive officers of GP, LLC is set forth in SEP's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which was filed with the SEC on February 16, 2018. These documents can be obtained free of charge from the sources indicated above. Other information regarding the participants in the consent solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the consent solicitation statement/prospectus and other relevant materials to be filed with the SEC when they become available.
About Enbridge Inc.
Enbridge Inc. (the Company) is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Spectra Energy Partners
Spectra Energy Partners, LP is one of the largest pipeline master limited partnerships in the United States and connects growing supply areas to high-demand markets for natural gas and crude oil. These assets include approximately 16,000 miles of transmission pipelines, approximately 170 billion cubic feet of natural gas storage, and approximately 5.6 million barrels of crude oil storage. Spectra Energy Partners, LP is traded on the New York Stock Exchange under the symbol SEP; information about the company is available on its website at www.spectraenergypartners.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media:
Michael Barnes
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community:
Enbridge Inc.
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
Spectra Energy Partners, LP
Roni Cappadonna
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-definitive-agreement-to-acquire-all-public-equity-of-spectra-energy-partners-advances-corporate-structure-simplification-300701990.html
SOURCE Enbridge Inc.
Article Date
8/24/2018Enbridge Inc. Reports Strong Second Quarter 2018 Results and Significant Progress on Strategic Priorities
Source: PR Newswire
CALGARY, Aug. 3, 2018 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB) (NYSE:ENB) today reported second quarter 2018 financial results and provided a quarterly business update.
SECOND QUARTER 2018 HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
CEO COMMENT
"We're very pleased with our strong financial results this quarter and the year is shaping up well," commented Al Monaco, President and Chief Executive Officer of Enbridge. "The results reflect strong operational performance across all of our core businesses, including the Liquids Mainline System where we moved record average volumes. We're also seeing increasing cash flow from the more than $12 billion of new projects brought into service over the past year. The solid financial performance and diversity of growth from our recently acquired natural gas transmission and utility businesses, together with the continued realization of cost synergies, is clearly proving out the value of the Spectra Energy acquisition completed last year. At the mid-point of the year, we remain confident in achieving our financial guidance for 2018, and we now expect to be in the top half of our DCF per share guidance range.
"We're equally pleased with the progress we've made on our strategic priorities since we announced the post-acquisition long range strategic plan last November. In the past three months alone we've entered into agreements to sell or monetize $7.5 billion in non-core assets at strong valuations, which more than doubles our original plan target of $3 billion. In addition, we've made significant progress on accelerating de-leveraging of our balance sheet and we've announced the intention to simplify our corporate structure. Proposals have been delivered to the Boards of our Sponsored Vehicles to purchase all of the outstanding public ownership in each. These proposed transactions would bring in all of the core assets under one publicly traded vehicle, Enbridge Inc., with greater diversification, increased trading liquidity, an enhanced credit profile and greater transparency of cash flows.
"Execution of our $22 billion secured capital program is also nicely on track. With the Minnesota PUC approval of the Certificate of Need and Route Permit on the Line 3 Replacement Project, we reached a critical milestone for Enbridge and our customers, and we remain on track with cost and schedule. Our $7 billion slate of 2018 projects are also advancing as planned, with the Valley Crossing and Nexus gas transmission lines due to come into service in the second half of the year.
"In summary, it was a busy and productive quarter. We continue to deliver strong and reliable operating and financial performance from the base businesses and we're executing on the strategic priorities that will position Enbridge for success going forward. We believe that these actions will surface significant value from what we see as the premium energy infrastructure assets in North America," concluded Mr. Monaco.
FINANCIAL RESULTS SUMMARY
Financial results for the three and six months ended June 30, 2018, are summarized in the table below:
|
Three months ended |
Six months ended | ||||
|
2018 |
2017 |
2018 |
2017 | ||
|
(millions of Canadian dollars, except per share amounts; number of shares in millions) |
|||||
|
GAAP Earnings attributable to common shareholders |
1,071 |
919 |
1,516 |
1,557 | |
|
GAAP Earnings per common share |
0.63 |
0.56 |
0.90 |
1.11 | |
|
Cash provided by operating activities |
3,344 |
1,971 |
6,538 |
3,747 | |
|
Adjusted EBITDA1 |
3,165 |
2,581 |
6,571 |
4,768 | |
|
Adjusted Earnings1 |
1,094 |
662 |
2,469 |
1,337 | |
|
Adjusted Earnings per common share1 |
0.65 |
0.41 |
1.47 |
0.95 | |
|
Distributable Cash Flow1,2 |
1,858 |
1,324 |
4,170 |
2,539 | |
|
Weighted average common shares outstanding |
1,695 |
1,628 |
1,690 |
1,404 | |
|
1 |
Non-GAAP financial measures. Schedules reconciling adjusted EBITDA, adjusted earnings, adjusted earnings per common | ||||
|
2 |
Formerly referred to as Available Cash Flow From Operations (ACFFO). Calculation methodology remains unchanged. | ||||
GAAP earnings attributable to common shareholders for the second quarter of 2018, increased by $152 million or $0.07 per share compared to the same period in 2017, as a result of strong business performance described below, partially offset by the impact of a number of unusual, non-recurring or non-operating factors.
Adjusted earnings in the second quarter of 2018 increased by $432 million or $0.24 per share compared to the same period in 2017. The increase was primarily driven by strong operating results from all of the Company's business units, new projects coming into service in the Liquids Pipelines, Gas Transmission and Midstream, Green Power and Gas Distribution segments, lower operating costs, synergy realization from the Spectra Energy acquisition and more favourable foreign exchange hedge rates.
DCF for the second quarter was $1,858 million, an increase of $534 million over the comparable prior period in 2017, driven largely by the same factors noted above.
Detailed segmented financial information and analysis can be found below under the section Adjusted EBITDA by Segments.
PROJECT EXECUTION UPDATE
Enbridge continues to make good progress executing its $22 billion secured growth capital program. The individual projects that make up the secured program are all supported by long-term take-or-pay contracts, cost-of-service frameworks or similar low-risk commercial arrangements and are diversified across a wide range of business platforms and regulatory jurisdictions.
In the first half of 2018, the Company brought $1.6 billion of commercially secured projects into service, substantially on time and on budget. This included the US$0.2 billion Stampede Offshore oil lateral in the Gulf of Mexico that extends the Company's offshore footprint in the Green Canyon corridor, the $0.4 billion High Pine and the $0.2 billion Wyndwood pipeline expansions to enhance natural gas transmission capacity on the T-North section of the B.C. pipeline system, and most recently, the $0.8 billion (Enbridge's 24.9% share of the total project cost) Rampion offshore wind farm in the U.K. Rampion is the first of Enbridge's investments in European offshore wind projects to commence operations. The Company worked closely with project lead E.ON in the development and construction of this facility and is applying this expertise to the development and execution of its offshore generation projects.
In total, $7 billion of projects are expected to come into service this year, including two of significant size. The US$1.3 billion (Enbridge's 50% share of the total project cost) NEXUS natural gas pipeline that will transport gas from the Marcellus and Utica basins to the upper Midwest and Canadian markets is progressing well with construction well advanced in Ohio and Michigan and remains on track for completion late in the third quarter. The US$1.6 billion Valley Crossing project, which will supply 2.6 Bcf of gas into the Mexican market, has substantially completed its onshore and offshore pipeline installation and is on track to go into service in the fourth quarter of 2018.
LINE 3 REPLACEMENT UPDATE
The $9 billion Line 3 Replacement Project is a critical integrity replacement project that will enhance the safety and reliability of the Enbridge Liquids Mainline System and provide incremental export capacity to Western Canadian producers and increased security of supply for key refining markets along the Mainline system, as well as to markets further downstream.
The project continues to progress well on several fronts. In Canada, the first phase of pipeline construction is complete, with approximately 40% of the pipe now laid, and the remaining segments to advance construction later this year. In the U.S., the pipeline replacement work in Wisconsin is now complete and has been placed into service.
In Minnesota, on June 28, the MPUC voted in favor of issuing a Certificate of Need and a Route Permit for the project. A written order documenting the MPUC's rulings in these dockets is expected to be issued by September 2018. In addition to the MPUC's approval, permits are also required from the U.S. Army Corps of Engineers, state agencies (including the Minnesota Department of Natural Resources and the Minnesota Pollution Control Agency) and local governments in Minnesota. The Company anticipates the receipt of such permits in time to begin construction activities during the first quarter of 2019, and continues to anticipate an in-service date for the project in the second half of 2019.
FINANCING UPDATE
In late November of 2017, Enbridge released the details of its updated strategic plan and outlook which included, among other things, a renewed focus on low risk pipeline and utility businesses. It also set out a clear plan with respect to financing the current $22 billion secured growth capital program through 2020. The plan included common and hybrid equity issuances as well as $3 billion of non-core asset sales in 2018 in order to accelerate planned de-leveraging and achieve a long-term target Debt:EBITDA ratio of 5x by the end of 2018.
Midway through 2018, the Company has substantially accomplished this financing plan. Since December 2017, Enbridge has issued $1.5 billion of common equity, $3.1 billion of hybrid instruments in institutional and retail markets in Canada and the U.S., and has used a significant portion of these proceeds to fund the growth capital program and pay down senior debt.
The Company has now announced over $7.5 billion of non-core asset sales and monetizations, well in excess of the $3 billion targeted in the financing plan. On July 4, the Company entered into definitive agreements to sell its Canadian natural gas gathering and processing business (Canadian G&P) in the Montney, Peace River Arch, Horn River and Liard basins in B.C. and Alberta to Brookfield Infrastructure Partners L.P. for a cash purchase price of $4.31 billion. The transaction is expected to close in two steps, with roughly 60% of the proceeds expected to be received later this year and the remainder in mid-2019. This follows announcements by the Company in May of agreements to sell its U.S. natural gas gathering and processing business and a portion of the renewables business for gross proceeds of approximately $1.4 billion (US$1.1 billion) and $1.75 billion, respectively. Both of these transactions closed on August 1.
The sale of the Canadian G&P assets will provide the Company with significant additional financial flexibility to strengthen the balance sheet and fund the secured growth program. Use of proceeds will ultimately be determined closer to closing of the Canadian G&P transaction, and could include further debt repayment, replacement of other financings or elimination of the DRIP earlier than anticipated within the current planning horizon.
REVISED FERC POLICY ON TREATMENT OF INCOME TAXES
On March 15, 2018, the Federal Energy Regulatory Commission (FERC) revised a long standing policy announcing that it would no longer permit entities organized as Master Limited Partnerships (MLPs) to recover an income tax allowance for interstate pipeline assets with cost-of-service rates. The announcement of the Revised Policy Statement was accompanied by: (i) a Notice of Proposed Rulemaking proposing interstate natural gas pipelines file a one-time report to quantify the impact of the federal income tax rate reduction and the impact of the revised Policy Statement on each pipeline; and (ii) a Notice of Inquiry seeking comment on how FERC should address changes related to accumulated deferred income taxes and bonus depreciation.
We hold our United States liquids and natural gas pipelines through a number of different ownership structures, including MLPs. SEP and EEP have responded to the FERC announcement regarding tax allowance, both directly and through industry associations, objecting to the change in FERC policy and requesting a re-hearing. On April 27, 2018, the FERC issued a tolling order for the purpose of affording it additional time for consideration of matters raised on rehearing. These FERC announcements have adversely affected MLPs generally.
On July 18, 2018, the FERC issued an Order that: (1) dismissed all requests for rehearing of its March 15, 2018 revised policy statement and explained that its revised policy statement does not establish a binding rule, but is instead an expression of general policy that the Commission intends to follow in the future; and (2) provides guidance that if an MLP or other tax pass-through pipeline eliminates its income tax allowance from its cost of service pursuant to FERC's Revised Policy Statement, then Accumulated Deferred Income Taxes (ADIT) will similarly be removed from its cost of service and MLP pipelines may also eliminate previously-accumulated sums in ADIT instead of flowing ADIT balances back to ratepayers. As a statement of general policy, the FERC will consider alternative application of its tax allowance and ADIT policy on a case-by-case basis.
There are many uncertainties with regards to the implementation of the recent FERC actions, including the potential for different outcomes as the result of a rate case or customer challenges. While there will be varying impacts to each of our sponsored vehicles, on a consolidated basis Enbridge does not expect a material impact to its results of operations or cash flows over the 2018 to 2020 horizon. Under the International Joint Toll mechanism on the Mainline System, anticipated reductions in the EEP tariff arising from the FERC order would create an offsetting revenue increase on the Canadian Mainline system owned by the Fund Group. At SEP, if implemented as announced, and ultimately supported through a rate case, the ability to eliminate ADIT from cost of service would likely offset the elimination of an income tax allowance in cost of service rates.
SIMPLIFICATION OF CORPORATE STRUCTURE
On May 17, the Company announced it had made, on behalf of itself and certain of its wholly owned US subsidiaries, separate all-share proposals to the respective boards of directors of its sponsored vehicles, Spectra Energy Partners, LP (NYSE: SEP), Enbridge Energy Partners, L.P. (NYSE: EEP), Enbridge Energy Management, L.L.C (NYSE: EEQ) and Enbridge Income Fund Holdings Inc. (TSX: ENF), to acquire, in separate combination transactions, all of the outstanding equity securities of those sponsored vehicles not beneficially owned by Enbridge.
The July 18 FERC Order does not alter Enbridge's strategy to pursue the corporate simplification. The proposals remain unchanged and are currently with the Independent Committees of the boards for their consideration. The Company believes that the fixed equity exchange ratios continue to reflect fair value for the equity securities of each vehicle. At the valuations proposed, these transactions are expected to be approximately neutral to Enbridge's three-year financial guidance and positive to Enbridge's post-2020 outlook due to tax and other synergies.
SECOND QUARTER 2018 FINANCIAL RESULTS
The following table summarizes the Company's GAAP reported results for segment EBITDA, earnings attributable to common shareholders, and cash provided by operating activities for the second quarter of 2018.
GAAP SEGMENT EBITDA AND CASH FLOW FROM OPERATIONS
|
Three months ended |
Six months ended | ||||
|
2018 |
2017 |
2018 |
2017 | ||
|
(unaudited, millions of Canadian dollars) |
|||||
|
Liquids Pipelines |
1,322 |
1,657 |
2,478 |
3,137 | |
|
Gas Transmission and Midstream |
1,014 |
932 |
1,140 |
1,407 | |
|
Gas Distribution |
370 |
310 |
1,006 |
697 | |
|
Green Power and Transmission |
126 |
101 |
235 |
202 | |
|
Energy Services |
35 |
(17) |
204 |
139 | |
|
Eliminations and Other |
(118) |
(16) |
(397) |
(314) | |
|
EBITDA |
2,749 |
2,967 |
4,666 |
5,268 | |
|
Earnings attributable to common shareholders |
1,071 |
919 |
1,516 |
1,557 | |
|
Cash provided by operating activities |
3,344 |
1,971 |
6,538 |
3,747 | |
For purposes of evaluating performance, the Company makes adjustments for unusual, non-recurring or non-operating factors to GAAP reported earnings, segment EBITDA, and cash flow provided by operating activities, which allow Management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of the underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per common share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
DISTRIBUTABLE CASH FLOW
|
Three months ended |
Six months ended | ||||
|
2018 |
2017 |
2018 |
2017 | ||
|
(unaudited, millions of Canadian dollars, except per share amounts) |
|||||
|
Liquids Pipelines |
1,629 |
1,324 |
3,256 |
2,649 | |
|
Gas Transmission and Midstream |
1,032 |
917 |
2,078 |
1,389 | |
|
Gas Distribution |
369 |
310 |
1,015 |
691 | |
|
Green Power and Transmission |
125 |
101 |
264 |
202 | |
|
Energy Services |
62 |
(3) |
84 |
(7) | |
|
Eliminations and Other |
(52) |
(68) |
(126) |
(156) | |
|
Adjusted EBITDA1 |
3,165 |
2,581 |
6,571 |
4,768 | |
|
Maintenance capital |
(294) |
(374) |
(459) |
(556) | |
|
Interest expense1 |
(703) |
(631) |
(1,355) |
(1,110) | |
|
Current income tax1 |
(82) |
(42) |
(157) |
(83) | |
|
Distributions to noncontrolling interests and redeemable noncontrolling interests |
(306) |
(258) |
(599) |
(503) | |
|
Cash distributions in excess of equity earnings1 |
114 |
96 |
177 |
94 | |
|
Preference share dividends |
(87) |
(81) |
(174) |
(164) | |
|
Other receipts of cash not recognized in revenue2 |
28 |
64 |
104 |
111 | |
|
Other non-cash adjustments |
23 |
(31) |
62 |
(18) | |
|
DCF |
1,858 |
1,324 |
4,170 |
2,539 | |
|
Weighted average common shares outstanding |
1,695 |
1,628 |
1,690 |
1,404 | |
|
1 |
Presented net of adjusting items. |
|
2 |
Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
For the first half of 2018, the Company's key financial metrics, DCF, adjusted EBITDA and adjusted earnings have increased compared to the comparative 2017 period due in part to the timing of the merger with Spectra Energy Corp (the Merger Transaction) which closed on February 27, 2017.
The second quarter of 2018 reflects the first full period which allows for a consistent year-over-year comparison post Merger Transaction for all of the key financial metrics. As such, this news release will primarily focus on variance analysis and explanations for the second quarter results.
Second quarter 2018 DCF increased by $534 million compared to the same period in 2017. The key drivers of quarter-over-quarter growth are summarized below:
Partially offsetting the DCF growth drivers noted above were:
ADJUSTED EARNINGS
|
Three months ended |
Six months ended | |||||
|
2018 |
2017 |
2018 |
2017 | |||
|
(unaudited, millions of Canadian dollars, except per share amounts) |
||||||
|
Adjusted EBITDA |
3,165 |
2,581 |
6,571 |
4,768 | ||
|
Depreciation and amortization |
(829) |
(868) |
(1,653) |
(1,540) | ||
|
Interest expense1 |
(677) |
(588) |
(1,299) |
(1,053) | ||
|
Income taxes1 |
(233) |
(194) |
(489) |
(338) | ||
|
Noncontrolling interests and redeemable noncontrolling interests1 |
(243) |
(188) |
(483) |
(336) | ||
|
Preference share dividends |
(89) |
(81) |
(178) |
(164) | ||
|
Adjusted earnings |
1,094 |
662 |
2,469 |
1,337 | ||
|
Adjusted earnings per common share |
0.65 |
0.41 |
1.47 |
0.95 | ||
|
1 |
Presented net of adjusting items. |
Adjusted earnings increased by $432 million for the second quarter of 2018 compared to the same period in 2017. Growth in adjusted earnings was driven by the same factors impacting business performance and adjusted EBITDA as discussed under Distributable Cash Flow above. Other notable quarter-over-quarter drivers were:
Adjusted earnings per share for the second quarter of 2018 increased by $0.24 over the second quarter of 2017 reflecting the factors noted above, partially offset by a higher average number of shares outstanding following the offering of approximately 33 million of the Company's common shares in December 2017.
ADJUSTED EBITDA BY SEGMENTS
Adjusted EBITDA by segment is reported on a Canadian dollar basis. Adjusted EBITDA generated from United States dollar denominated businesses were translated at stronger average Canadian dollar exchange rates in the second quarter of 2018 (C$1.29/$US) when compared to the corresponding 2017 period (C$1.34/$US), negatively impacting comparable results. A portion of the United States dollar earnings are hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
LIQUIDS PIPELINES
|
Three months ended |
Six months ended | ||||
|
2018 |
2017 |
2018 |
2017 | ||
|
(unaudited, millions of Canadian dollars) |
|||||
|
Canadian Mainline |
514 |
312 |
996 |
627 | |
|
Lakehead System |
442 |
426 |
902 |
939 | |
|
Regional Oil Sands System |
207 |
135 |
428 |
266 | |
|
Gulf Coast and Mid-Continent |
161 |
164 |
339 |
316 | |
|
Other1 |
305 |
287 |
591 |
501 | |
|
Adjusted EBITDA2 |
1,629 |
1,324 |
3,256 |
2,649 | |
|
Operating Data (average deliveries – thousands of bpd) |
|||||
|
Canadian Mainline3 |
2,636 |
2,449 |
2,631 |
2,521 | |
|
Lakehead System4 |
2,777 |
2,604 |
2,771 |
2,675 | |
|
Regional Oil Sands System5 |
1,719 |
1,171 |
1,751 |
1,228 | |
|
International Joint Tariff (IJT) |
$4.07 |
$4.05 |
$4.07 |
$4.05 | |
|
Lakehead System Local Toll |
$2.18 |
$2.43 |
$2.30 |
$2.50 | |
|
Canadian Mainline IJT Residual Toll |
$1.89 |
$1.62 |
$1.77 |
$1.55 | |
|
Canadian Mainline Apportionment6 |
46% |
28% |
45% |
33% | |
|
Canadian Mainline Effective FX Rate |
$1.26 |
$1.04 |
$1.26 |
$1.04 | |
|
1 |
Included within Other are Southern Lights Pipeline, Express-Platte System, Bakken System and Feeder Pipelines & Other. |
|
2 |
Schedules reconciling adjusted EBITDA are provided in the Appendices to this news release. |
|
3 |
Canadian Mainline throughput volume represents mainline system deliveries ex-Gretna, Manitoba which is made up of United States and eastern Canada deliveries originating from western Canada. |
|
4 |
Lakehead System throughput volume represents mainline system deliveries to the United States mid-west and eastern Canada. |
|
5 |
Volumes are for the Athabasca mainline, Athabasca Twin, Waupisoo Pipeline and Woodland Pipeline and exclude laterals on the Regional Oil Sands System. |
|
6 |
Heavy apportionment on Canadian Mainline. |
Liquids Pipelines adjusted EBITDA increased by $305 million for the second quarter of 2018 when compared to the same period in 2017. The key quarter-over-quarter performance drivers are summarized below:
The IJT and the index component of the Lakehead toll increased to US$4.15 per barrel and US$2.23 per barrel, respectively. As a result, the Canadian Mainline IJT residual toll has increased from US$1.89 per barrel to US$1.92 per barrel. These tolls were effective July 1, 2018.
GAS TRANSMISSION AND MIDSTREAM
|
Three months ended |
Six months ended | ||||
|
2018 |
2017 |
2018 |
2017 | ||
|
(unaudited, millions of Canadian dollars) |
|||||
|
US Gas Transmission |
668 |
674 |
1,318 |
929 | |
|
Canadian Gas Transmission & Midstream |
192 |
137 |
410 |
225 | |
|
Alliance Pipeline |
53 |
44 |
116 |
101 | |
|
US Midstream |
86 |
33 |
168 |
75 | |
|
Other |
33 |
29 |
66 |
59 | |
|
Adjusted EBITDA1 |
1,032 |
917 |
2,078 |
1,389 | |
|
1 |
Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Gas Transmission and Midstream adjusted EBITDA increased by $115 million for the second quarter of 2018 when compared to the same period in 2017. The key quarter-over-quarter performance drivers are set out below:
As announced in May 2018, the Company entered into an agreement to sell Midcoast Operating, L.P. This transaction closed on August 1, 2018. In addition, as announced in July 2018, the Company has entered into an agreement to sell its Canadian natural gas gathering and processing business but will retain the Westcoast gas transmission system in British Columbia. The sale of the provincially regulated assets which comprise roughly 60% of the proceeds is expected to close in the fourth quarter of 2018, while the remaining National Energy Board regulated assets are expected to close by mid-2019.
GAS DISTRIBUTION
|
Three months ended |
Six months ended | |||||||
|
2018 |
2017 |
2018 |
2017 | |||||
|
(unaudited, millions of Canadian dollars) |
||||||||
|
Enbridge Gas Distribution Inc. (EGD) |
188 |
163 |
485 |
384 | ||||
|
Union Gas Limited (Union Gas) |
166 |
146 |
441 |
233 | ||||
|
Other |
15 |
1 |
89 |
74 | ||||
|
Adjusted EBITDA1 |
369 |
310 |
1,015 |
691 | ||||
|
Operating Data |
||||||||
|
EGD |
||||||||
|
Volumes (billions of cubic feet) |
79 |
71 |
266 |
242 | ||||
|
Number of active customers (thousands)3 |
2,193 |
2,167 |
2,193 |
2,167 | ||||
|
Heating degree days4 |
||||||||
|
Actual |
522 |
462 |
2,347 |
2,148 | ||||
|
Forecast based on normal weather |
488 |
476 |
2,320 |
2,351 | ||||
|
Union Gas2 |
||||||||
|
Volumes (billions of cubic feet) |
270 |
222 |
752 |
371 | ||||
|
Number of active customers (thousands)3 |
1,486 |
1,465 |
1,486 |
1,465 | ||||
|
Heating degree days4 |
||||||||
|
Actual |
568 |
492 |
2,554 |
1,093 | ||||
|
Forecast based on normal weather |
517 |
514 |
2,520 |
1,090 | ||||
|
1 |
Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
|
2 |
Reflects operating data post-Merger Transaction. |
|
3 |
Number of active customers is the number of EGD and Union Gas customers at the end of the period. |
|
4 |
Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in EGD's and Union Gas' franchise area. It is calculated by accumulating, for the fiscal period, the total number of degrees each day by which the daily mean temperature falls below 18 degrees Celsius. |
Gas Distribution adjusted EBITDA will typically follow a seasonal profile. It is generally highest in the first and fourth quarters of the year reflecting greater volumetric usage during the heating season. The magnitude of the seasonal EBITDA fluctuations will vary from year-to-year reflecting the impact of colder or warmer than normal weather on distribution volumes in a given quarter.
Gas Distribution adjusted EBITDA increased by $59 million for the second quarter 2018 when compared to the same period in 2017. The key quarter-over-quarter performance drivers were:
Due to a colder winter and spring within the utility franchise area, EBITDA has been positively impacted by $15 million for the second quarter and $10 million for the first half of 2018 relative to the assumption for normal weather embedded in forecasted rates.
GREEN POWER AND TRANSMISSION
|
Three months ended |
Six months ended | ||||
|
2018 |
2017 |
2018 |
2017 | ||
|
(unaudited, millions of Canadian dollars) |
|||||
|
Adjusted EBITDA1 |
125 |
101 |
264 |
202 | |
|
1 |
Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Green Power and Transmission adjusted EBITDA increased by $24 million for the second quarter of 2018 when compared to the same period in 2017. The key quarter-over-quarter performance drivers were:
As announced in May 2018, the Company has entered into an agreement to sell a 49% interest in certain North American onshore renewable power assets and 49% of the Company's interests in two German offshore wind farms under development (collectively, the Renewable Assets). The transaction closed on August 1, 2018. Enbridge will continue to maintain a controlling interest in the Renewable Assets, and will reflect the EBITDA generated by these assets in the results reported by the Green Power and Transmission segment. Earnings attributable to the noncontrolling interest will be captured within Earnings and Adjusted Earnings.
ENERGY SERVICES
|
Three months ended |
Six months ended | ||||
|
2018 |
2017 |
2018 |
2017 | ||
|
(unaudited, millions of Canadian dollars) |
|||||
|
Adjusted earnings/(loss) before interest, income taxes, and depreciation and amortization1 |
62 |
(3) |
84 |
(7) | |
|
1 |
Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Energy Services adjusted EBITDA increased by $65 million for the second quarter of 2018 when compared to the same period in 2017, driven primarily by a widening of crude oil location and quality differentials which provided greater opportunity to generate profitable margins.
ELIMINATIONS AND OTHER
|
Three months ended |
Six months ended | ||||
|
2018 |
2017 |
2018 |
2017 | ||
|
(unaudited, millions of Canadian dollars) |
|||||
|
Operating and administrative |
1 |
2 |
(31) |
(14) | |
|
Realized foreign exchange hedge settlements |
(53) |
(70) |
(95) |
(142) | |
|
Adjusted loss before interest, income taxes, and depreciation and amortization1 |
(52) |
(68) |
(126) |
(156) | |
|
1 |
Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Eliminations and Other adjusted loss before interest, income taxes, and depreciation and amortization decreased by $16 million for the second quarter of 2018, when compared to the same period in 2017. The quarter-over-quarter improvement is primarily driven by reduced losses on hedge settlements due to more favourable hedge rates and a stronger Canadian dollar in the second quarter of 2018.
Operating and administrative costs captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) net of amounts recovered from business units for the provision of those services.
CONFERENCE CALL
Enbridge will host a joint conference call and webcast on August 3, 2018 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) with Enbridge Income Fund Holdings Inc., Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP to provide an enterprise wide business update and review 2018 second quarter financial results. Analysts, members of the media and other interested parties can access the call toll free at (877) 930-8043 or within and outside North America at (253) 336-7522 using the access code of 5369238#. The call will be audio webcast live at https://edge.media-server.com/m6/p/ijz44wew. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available for seven days after the call toll-free (855) 859-2056 or within and outside North America at (404) 537-3406 (access code 5369238#).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected DCF or DCF per share; expected future cash flows; expected performance of the Company's businesses; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected credit metrics and debt to EBITDA levels; expected costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected impact on cash flows of the Company's commercially secured growth program; expected future growth and expansion opportunities; expectations about the Company's joint venture partners' ability to complete and finance projects under construction; expected closing of acquisitions and dispositions; estimated future dividends; expected future actions of regulators; expectations regarding commodity prices; supply forecasts; expectations regarding the impact of the Merger Transaction including the combined Company's scale, financial flexibility, growth program, future business prospects and performance and streamlining opportunities; expected impact of United States Tax Reform; the sponsored vehicle strategy, including the proposed simplification of our corporate structure; dividend payout policy; and dividend growth and dividend payout expectation.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the timing and closing of dispositions; the realization of anticipated benefits and synergies of the Merger Transaction; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of capital project execution on the Company's future cash flows; credit ratings; capital project funding; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the impact of the Merger Transaction on the Company, expected EBITDA, adjusted EBITDA, earnings/(loss), adjusted earnings/(loss) and associated per share amounts, or estimated future dividends. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the impact of the Merger Transaction, operating performance, regulatory parameters, dispositions, the proposed simplification of our corporate structure, dividend policy, project approval and support, renewals of rights of way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
ABOUT ENBRIDGE INC.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.9 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise part of this news release.
|
FOR FURTHER INFORMATION PLEASE CONTACT: |
||
|
Enbridge Inc. – Media |
Enbridge Inc. – Investment Community | |
|
Jesse Semko |
Jonathan Gould | |
|
Toll Free: (888) 992-0997 |
Toll Free: (800) 481-2804 | |
|
Email: media@enbridge.com |
Email: investor.relations@enbridge.com |
DIVIDEND DECLARATION
Our Board of Directors has declared the following quarterly dividends. All dividends are payable on September 1, 2018, to shareholders of record on August 15, 2018.
|
Dividend per share | ||
|
Common Shares |
$0.67100 | |
|
Preference Shares, Series A |
$0.34375 | |
|
Preference Shares, Series B |
$0.21340 | |
|
Preference Shares, Series C1 |
$0.22748 | |
|
Preference Shares, Series D2 |
$0.27875 | |
|
Preference Shares, Series F3 |
$0.29306 | |
|
Preference Shares, Series H |
$0.25000 | |
|
Preference Shares, Series J |
US$0.30540 | |
|
Preference Shares, Series L |
US$0.30993 | |
|
Preference Shares, Series N |
$0.25000 | |
|
Preference Shares, Series P |
$0.25000 | |
|
Preference Shares, Series R |
$0.25000 | |
|
Preference Shares, Series 14 |
US$0.37182 | |
|
Preference Shares, Series 3 |
$0.25000 | |
|
Preference Shares, Series 5 |
US$0.27500 | |
|
Preference Shares, Series 7 |
$0.27500 | |
|
Preference Shares, Series 9 |
$0.27500 | |
|
Preference Shares, Series 11 |
$0.27500 | |
|
Preference Shares, Series 13 |
$0.27500 | |
|
Preference Shares, Series 15 |
$0.27500 | |
|
Preference Shares, Series 17 |
$0.32188 | |
|
Preference Shares, Series 195 |
$0.30625 | |
|
1 |
The quarterly dividend per share paid on Series C was increased to $0.22685 from $0.20342 on March 1, 2018, and was increased to $0.22748 from $0.22685 on June 1, 2018, under the dividend rate reset provisions applicable to this series. |
|
2 |
The quarterly dividend per share paid on Series D was increased to $0.27875 from $0.25000 on March 1, 2018, due to reset of the annual dividend on March 1, 2018, under the dividend rate reset provisions applicable to this series. |
|
3 |
The quarterly dividend per share paid on Series F was increased to $0.29306 from $0.25000 on June 1, 2018, due to reset of the annual dividend on June 1, 2018, under the dividend rate reset provisions applicable to this series. |
|
4 |
The quarterly dividend per share paid on Series 1 was increased to US$0.37182 from US$0.25000 on June 1, 2018, due to reset of the annual dividend on June 1, 2018, under the dividend rate reset provisions applicable to this series. |
|
5 |
The dividend per share on Series 19 increased from $0.26850 to the regular quarterly dividend of $0.30625, effective June 1, 2018. |
NON-GAAP RECONCILATIONS APPENDICES
This news release contains references to adjusted EBITDA, adjusted earnings, adjusted earnings per common share, and DCF. Management believes the presentation of adjusted EBITDA, adjusted earnings, adjusted earnings per common share and DCF gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Adjusted EBITDA represents EBITDA adjusted for unusual, non-recurring or non-operating factors on both a consolidated and segmented basis. Management uses adjusted EBITDA to set targets and to assess the performance of the Company.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, non-recurring or non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, non-recurring or non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes, noncontrolling interests and redeemable noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another measure of the Company's ability to generate earnings.
DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests and redeemable noncontrolling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
Reconciliations of forward looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly certain contingent liabilities, and non-cash unrealized derivative fair value losses and gains and ineffectiveness on hedges which are subject to market variability and therefore a reconciliation is not available without unreasonable effort.
Our non-GAAP measures described above are not measures that have standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers.
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON-GAAP RECONCILATIONS – ADJUSTED EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
|
Three months ended |
Six months ended | ||||
|
2018 |
2017 |
2018 |
2017 | ||
|
(millions of Canadian dollars) |
|||||
|
Liquids Pipelines |
1,322 |
1,657 |
2,478 |
3,137 | |
|
Gas Transmission and Midstream |
1,014 |
932 |
1,140 |
1,407 | |
|
Gas Distribution |
370 |
310 |
1,006 |
697 | |
|
Green Power and Transmission |
126 |
101 |
235 |
202 | |
|
Energy Services |
35 |
(17) |
204 |
139 | |
|
Eliminations and Other |
(118) |
(16) |
(397) |
(314) | |
|
EBITDA |
2,749 |
2,967 |
4,666 |
5,268 | |
|
Depreciation and amortization |
(829) |
(868) |
(1,653) |
(1,540) | |
|
Interest expense |
(690) |
(565) |
(1,346) |
(1,051) | |
|
Income taxes |
97 |
(293) |
170 |
(491) | |
|
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests |
(167) |
(241) |
(143) |
(465) | |
|
Preference share dividends |
(89) |
(81) |
(178) |
(164) | |
|
Earnings attributable to common shareholders |
1,071 |
919 |
1,516 |
1,557 | |
ADJUSTED EBITDA TO ADJUSTED EARNINGS
|
Three months ended |
Six months ended | |||||
|
2018 |
2017 |
2018 |
2017 | |||
|
(unaudited, millions of Canadian dollars, except per share amounts) |
||||||
|
Liquids Pipelines |
1,629 |
1,324 |
3,256 |
2,649 | ||
|
Gas Transmission and Midstream |
1,032 |
917 |
2,078 |
1,389 | ||
|
Gas Distribution |
369 |
310 |
1,015 |
691 | ||
|
Green Power and Transmission |
125 |
101 |
264 |
202 | ||
|
Energy Services |
62 |
(3) |
84 |
(7) | ||
|
Eliminations and Other |
(52) |
(68) |
(126) |
(156) | ||
|
Adjusted EBITDA |
3,165 |
2,581 |
6,571 |
4,768 | ||
|
Depreciation and amortization |
(829) |
(868) |
(1,653) |
(1,540) | ||
|
Interest expense |
(677) |
(588) |
(1,299) |
(1,053) | ||
|
Income taxes |
(233) |
(194) |
(489) |
(338) | ||
|
Noncontrolling interests and redeemable noncontrolling interests |
(243) |
(188) |
(483) |
(336) | ||
|
Preference share dividends |
(89) |
(81) |
(178) |
(164) | ||
|
Adjusted earnings |
1,094 |
662 |
2,469 |
1,337 | ||
|
Adjusted earnings per common share |
0.65 |
0.41 |
1.47 |
0.95 | ||
EBITDA TO ADJUSTED EARNINGS
|
Three months ended |
Six months ended | ||||||
|
2018 |
2017 |
2018 |
2017 | ||||
|
(unaudited, millions of Canadian dollars, except per share amounts) |
|||||||
|
EBITDA |
2,749 |
2,967 |
4,666 |
5,268 | |||
|
Adjusting items: |
|||||||
|
Change in unrealized derivative fair value (gain)/loss |
298 |
(461) |
575 |
(877) | |||
|
Asset write-down loss |
10 |
— |
1,067 |
— | |||
|
Gain on sale of pipe and project wind-down costs |
— |
(67) |
— |
(62) | |||
|
Employee severance, transition and transformation costs |
29 |
79 |
126 |
208 | |||
|
Transaction costs |
— |
26 |
— |
178 | |||
|
Asset monetization costs |
20 |
— |
20 |
— | |||
|
Project development costs |
4 |
24 |
7 |
25 | |||
|
Other |
55 |
13 |
110 |
28 | |||
|
Total adjusting items |
416 |
(386) |
1,905 |
(500) | |||
|
Adjusted EBITDA |
3,165 |
2,581 |
6,571 |
4,768 | |||
|
Depreciation and amortization |
(829) |
(868) |
(1,653) |
(1,540) | |||
|
Interest expense |
(690) |
(565) |
(1,346) |
(1,051) | |||
|
Income taxes |
97 |
(293) |
170 |
(491) | |||
|
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests |
(167) |
(241) |
(143) |
(465) | |||
|
Preference share dividends |
(89) |
(81) |
(178) |
(164) | |||
|
Adjusting items in respect of: |
|||||||
|
Interest expense |
13 |
(23) |
47 |
(2) | |||
|
Income taxes |
(330) |
99 |
(659) |
153 | |||
|
Noncontrolling interests and redeemable noncontrolling interests |
(76) |
53 |
(340) |
129 | |||
|
Adjusted earnings |
1,094 |
662 |
2,469 |
1,337 | |||
|
Adjusted earnings per common share |
0.65 |
0.41 |
1.47 |
0.95 | |||
APPENDIX B
NON-GAAP RECONCILIATION – SEGMENTED EBITDA TO ADJUSTED EBITDA
LIQUIDS PIPELINES
|
Three months ended |
Six months ended | |||||
|
2018 |
2017 |
2018 |
2017 | |||
|
(unaudited, millions of Canadian dollars) |
||||||
|
Adjusted EBITDA |
1,629 |
1,324 |
3,256 |
2,649 | ||
|
Change in unrealized derivative fair value gain/(loss) |
(275) |
274 |
(573) |
438 | ||
|
Asset write-down loss |
(10) |
— |
(154) |
— | ||
|
Gain on sale of pipe and project wind-down costs |
— |
67 |
— |
62 | ||
|
Leak remediation costs, net of leak insurance recoveries |
— |
(5) |
— |
(8) | ||
|
Project development costs |
— |
(3) |
(3) |
(4) | ||
|
Employee severance, transition and transformation costs |
(2) |
— |
(28) |
— | ||
|
United States tax reform - regulatory asset adjustment |
(20) |
— |
(20) |
— | ||
|
Total adjustments |
(307) |
333 |
(778) |
488 | ||
|
EBITDA |
1,322 |
1,657 |
2,478 |
3,137 | ||
GAS TRANSMISSION AND MIDSTREAM
|
Three months ended |
Six months ended | |||||
|
2018 |
2017 |
2018 |
2017 | |||
|
(unaudited, millions of Canadian dollars) |
||||||
|
Adjusted EBITDA |
1,032 |
917 |
2,078 |
1,389 | ||
|
Change in unrealized derivative fair value gain/(loss) |
(4) |
17 |
2 |
27 | ||
|
Asset write-down loss |
— |
— |
(913) |
— | ||
|
Pipeline inspection and other |
1 |
(7) |
(1) |
(9) | ||
|
DCP Midstream equity earnings adjustment |
(15) |
6 |
(19) |
4 | ||
|
Transaction costs |
— |
(1) |
— |
(4) | ||
|
Employee severance, transition and transformation costs |
— |
— |
(7) |
— | ||
|
Total adjustments |
(18) |
15 |
(938) |
18 | ||
|
EBITDA |
1,014 |
932 |
1,140 |
1,407 | ||
GAS DISTRIBUTION
|
Three months ended |
Six months ended | |||||
|
2018 |
2017 |
2018 |
2017 | |||
|
(unaudited; millions of Canadian dollars) |
||||||
|
Adjusted EBITDA |
369 |
310 |
1,015 |
691 | ||
|
Change in unrealized derivative fair value gain |
2 |
— |
3 |
10 | ||
|
Noverco Inc. equity earnings adjustment |
— |
— |
(9) |
— | ||
|
Employee severance, transition and transformation costs |
(1) |
— |
(3) |
(4) | ||
|
Total adjustments |
1 |
— |
(9) |
6 | ||
|
EBITDA |
370 |
310 |
1,006 |
697 | ||
GREEN POWER AND TRANSMISSION
|
Three months ended |
Six months ended | |||||
|
2018 |
2017 |
2018 |
2017 | |||
|
(unaudited, millions of Canadian dollars) |
||||||
|
Adjusted EBITDA |
125 |
101 |
264 |
202 | ||
|
Change in unrealized derivative fair value gain |
1 |
— |
4 |
— | ||
|
Equity investment asset impairment |
— |
— |
(33) |
— | ||
|
Total adjustments |
1 |
— |
(29) |
— | ||
|
EBITDA |
126 |
101 |
235 |
202 | ||
ENERGY SERVICES
|
Three months ended |
Six months ended | |||||
|
2018 |
2017 |
2018 |
2017 | |||
|
(unaudited, millions of Canadian dollars) |
||||||
|
Adjusted earnings/(loss) before interest, income taxes, and depreciation and amortization |
62 |
(3) |
84 |
(7) | ||
|
Change in unrealized derivative fair value gain/(loss) |
(27) |
(14) |
120 |
146 | ||
|
Total adjustments |
(27) |
(14) |
120 |
146 | ||
|
Earnings/(loss) before interest, income taxes, and depreciation and amortization |
35 |
(17) |
204 |
139 | ||
ELIMINATIONS AND OTHER
|
Three months ended |
Six months ended | ||||||
|
2018 |
2017 |
2018 |
2017 | ||||
|
(unaudited, millions of Canadian dollars) |
|||||||
|
Adjusted loss before interest, income taxes, and depreciation and amortization |
(52) |
(68) |
(126) |
(156) | |||
|
Change in unrealized derivative fair value gain/(loss) |
5 |
184 |
(131) |
256 | |||
|
Unrealized intercompany foreign exchange loss |
(8) |
(7) |
(9) |
(15) | |||
|
Asset impairment |
— |
— |
(6) |
— | |||
|
Loss on sale |
(13) |
— |
(13) |
— | |||
|
Asset monetization costs |
(20) |
— |
(20) |
— | |||
|
Project development costs |
(4) |
(21) |
(4) |
(21) | |||
|
Transaction costs |
— |
(25) |
— |
(174) | |||
|
Employee severance, transition and transformation costs |
(26) |
(79) |
(88) |
(204) | |||
|
Total adjustments |
(66) |
52 |
(271) |
(158) | |||
|
Loss before interest, income taxes, and depreciation and amortization |
(118) |
(16) |
(397) |
(314) | |||
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING ACTIVITIES TO DCF
|
Three months ended |
Six months ended | ||||||
|
2018 |
2017 |
2018 |
2017 | ||||
|
(unaudited, millions of Canadian dollars) |
|||||||
|
Cash provided by operating activities |
3,344 |
1,971 |
6,538 |
3,747 | |||
|
Adjusted for changes in operating assets and liabilities |
(978) |
(157) |
(1,600) |
(497) | |||
|
2,366 |
1,814 |
4,938 |
3,250 | ||||
|
Distributions to noncontrolling interests and redeemable noncontrolling interests |
(306) |
(258) |
(599) |
(503) | |||
|
Preference share dividends |
(87) |
(81) |
(174) |
(164) | |||
|
Maintenance capital expenditures1 |
(294) |
(374) |
(459) |
(556) | |||
|
Significant adjusting items: |
|||||||
|
Other receipts of cash not recognized in revenue2 |
28 |
64 |
104 |
111 | |||
|
Transaction costs |
— |
47 |
— |
199 | |||
|
Employee severance, transition and transformation costs |
38 |
79 |
170 |
206 | |||
|
Other items |
113 |
33 |
190 |
(4) | |||
|
DCF |
1,858 |
1,324 |
4,170 |
2,539 | |||
|
1 |
Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing pipeline system or that are necessary to maintain the service capability of the existing assets (including the replacement of components that are worn, obsolete or completing their useful lives). For the purpose of DCF, maintenance capital excludes expenditures that extend asset useful lives, increase capacities from existing levels or reduce costs to enhance revenues or provide enhancements to the service capability of the existing assets. |
|
2 |
Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-reports-strong-second-quarter-2018-results-and-significant-progress-on-strategic-priorities-300691607.html
SOURCE Enbridge Inc.
Article Date
8/3/2018ArcLight Acquires Midcoast Operating, L.P. from Enbridge
Source: PR Newswire
BOSTON, Aug. 1, 2018 /PRNewswire/ -- ArcLight Capital Partners announced today that one of its affiliates has acquired Midcoast Operating, L.P. from Enbridge Inc. (TSX: ENB) (NYSE: ENB) for approximately $1.1 billion in cash.
Midcoast consists of three large, legacy gathering and processing systems in Texas and Oklahoma, a long-haul NGL transmission system delivering NGLs from multiple supply areas (including the DJ and Permian basins) to Mont Belvieu, Texas, and a marketing and logistics business. Assets include:
Midcoast will be led by an executive team consisting of Rob Bond as CEO, Tommy Stone as COO, and Mike Moran as CCO. Rob, Tommy and Mike have worked together for the better part of the past two decades, most recently as members of the senior leadership team at PennTex Midstream Partners. ArcLight and senior management intend to retain the existing Midcoast field and corporate workforce currently in place. Midcoast will continue to be based in Houston, Texas.
"We are very excited to add the Midcoast platform to our portfolio of midstream investments," said Dan Revers, Founder and Managing Partner of ArcLight. "We believe Midcoast represents a rare opportunity to acquire a large scale, diversified midstream business with exciting commercial and growth capital investment opportunities. We are likewise excited to partner with a management team that has demonstrated their ability to deliver successful results and prioritize safe and reliable operations in the midstream segment."
"Midcoast owns a premier set of midstream assets that provide excellent Gulf Coast connectivity for natural gas and NGLs, bridging wide basis differentials that have arisen between producing basins and coastal demand centers. We look forward to leading Midcoast as it pursues these and other exciting opportunities," added Rob Bond, who will become CEO of the company under ArcLight's ownership. "Above all, Midcoast enjoys a deep bench of talented executives and employees, and Tommy, Mike and I are excited to work with this team to take Midcoast forward in its next chapter as an independent, growth-oriented company."
About ArcLight
ArcLight is one of the leading private equity firms focused on energy infrastructure investments. Founded in 2001, the firm helped pioneer an asset-based private equity approach to investing in the dynamic energy sector. ArcLight has invested more than $20 billion in over 100 transactions since inception. Based in Boston, the firm's investment team employs a hands-on value creation strategy that utilizes its in-house technical, operational, and commercial specialists as well as the firm's 850-person asset management affiliate. More information about ArcLight, and a complete list of ArcLight's portfolio companies, can be found at www.arclightcapital.com.
View original content:http://www.prnewswire.com/news-releases/arclight-acquires-midcoast-operating-lp-from-enbridge-300690614.html
SOURCE ArcLight
Article Date
8/1/2018Enbridge Inc. to Host a Joint Webcast with Enbridge Income Fund Holdings Inc., Enbridge Energy Partners, L.P. & Spectra Energy Partners, LP to Discuss 2018 Second Quarter Results on August 3
Source: PR Newswire
CALGARY, July 12, 2018 /PRNewswire/ - Enbridge Inc. (TSX, NYSE: ENB) (Enbridge) will host a joint conference call and webcast with Enbridge Income Fund Holdings Inc. (TSX: ENF), Enbridge Energy Partners, L.P. (NYSE: EEP) and Spectra Energy Partners, LP (NYSE: SEP) to provide an enterprise-wide business update and review 2018 second quarter results on August 3, 2018 at 7:00 a.m. MT (9:00 a.m. ET).
Enbridge and Enbridge Income Fund Holdings Inc. will announce second quarter results before markets open on August 3, 2018, while Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP will announce second quarter results after markets close on August 2, 2018.
2018 Second Quarter Earnings Webcast and Conference Call
|
When: |
Friday, August 3, 2018 |
|
7:00 a.m. MT (9:00 a.m. ET) | |
|
Webcast: |
|
|
Call: |
Dial-in # (Audio only – please dial in 10 minutes ahead): |
|
North America Toll Free: 1 (877) 930-8043 | |
|
Outside North America: 1 (253) 336-7522 | |
|
Participant Passcode: 5369238 |
A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the company websites within approximately 24 hours after the event.
|
Replay: |
Audio Replay # (Available for 7 days after call): |
|
North America Toll Free: 1 (855) 859-2056 | |
|
Outside North America: 1 (404) 537-3406 | |
|
Replay Passcode: 5369238 |
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
Forward-Looking Statements Advisory
The conference call will cover each of Enbridge Inc., Enbridge Income Fund Holdings Inc., Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP's (collectively, the Entities) most recent financial results and may contain forward-looking statements. When used in the call, words such as "anticipate", "expect", "project", and similar expressions are intended to identify such forward-looking statements. Although each of the Entities believes that its respective statements are or will be based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, economic conditions, commodity prices and other matters. You can find a discussion of those assumptions, risks and uncertainties in the Canadian securities law and/or American SEC filings for the applicable Entity. While each Entity makes its respective forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, no Entity assumes any obligation to publicly update or revise any forward-looking statements made herein, on the call or otherwise, whether as a result of new information, future events or otherwise.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Enbridge Income Fund Holdings Inc.
Enbridge Income Fund Holdings Inc. is a publicly traded corporation. The Company, through its investment in Enbridge Income Fund indirectly holds high quality, low-risk energy infrastructure assets. The Fund's assets consist of a portfolio of Canadian liquids transportation and storage businesses, including the Canadian Mainline, the Regional Oil Sands System, the Canadian segment of the Southern Lights Pipeline, Class A units entitling the holder to receive defined cash flows from the US segment of the Southern Lights Pipeline, and a 50 percent interest in the Alliance Pipeline, which transports natural gas from Canada to the U.S., and interests in more than 1,400 MW of renewable and alternative power generation assets. Enbridge Income Fund Holdings Inc. trades on the Toronto Stock Exchange under the symbol ENF; information about the Company is available on the Company's website www.enbridgeincomefund.com.
About Enbridge Energy Partners, L.P.
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil transportation systems in the United States. Its principal crude oil system is the largest pipeline transporter of growing oil production from western Canada and the North Dakota Bakken formation. The system's deliveries to refining centers and connected carriers in the United States account for approximately 25 percent of total U.S. oil imports. Enbridge Energy Partners, L.P. is traded on the New York Stock Exchange under the symbol EEP; information about the partnership is available on its website at www.enbridgepartners.com.
About Spectra Energy Partners, LP
Spectra Energy Partners, LP is one of the largest pipeline master limited partnerships in the United States and connects growing supply areas to high-demand markets for natural gas and crude oil. These assets include more than 16,000 miles of transmission pipelines, approximately 170 billion cubic feet of natural gas storage, and approximately 5.6 million barrels of crude oil storage. Spectra Energy Partners, LP is traded on the New York Stock Exchange under the symbol SEP; information about the company is available on its website at www.spectraenergypartners.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media:
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community:
Enbridge Inc.
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
Enbridge Income Fund Holdings Inc.
Nafeesa Kassam
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
Spectra Energy Partners, LP & Enbridge Energy Partners, L.P.
Roni Cappadonna
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:SOURCE Enbridge Inc.
Article Date
7/12/20187/4/2018 - Enbridge Announces Sale of Canadian Natural Gas Gathering & Processing Businesses for $4.31 Billion
Enbridge Announces Sale of Canadian Natural Gas Gathering & Processing Businesses for $4.31 Billion
Source: PR Newswire
CALGARY, July 4, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) today announced that it has entered into definitive agreements to sell its Canadian natural gas gathering and processing business in the Montney, Peace River Arch, Horn River and Liard basins in British Columbia (B.C.) and Alberta (the "G&P Business") to Brookfield Infrastructure (NYSE: BIP; TSX: BIP.UN) and its institutional partners (collectively, "Brookfield") for a cash purchase price of CAN $4.31 billion, subject to customary closing adjustments and receipt of regulatory approvals.
The G&P Business includes 19 natural gas processing plants and liquids handling facilities, with a total operating capacity of 3.3 Bcf/d and 3,550 km of natural gas gathering pipelines.
"When combined with asset monetizations announced in May, the sale of our Canadian G&P Business significantly advances our strategic priority of moving to a pure play regulated pipeline and utility business model." said Al Monaco, President and Chief Executive Officer of Enbridge. It also demonstrates our focus on prudent capital allocation and ensuring the continued strength of our balance sheet and funding flexibility. With a total of roughly $7.5 billion in asset monetizations announced in 2018, we have more than doubled our initial target of $3 billion."
Separate sale agreements have been entered into for those facilities currently governed by provincial regulations (Alberta and B.C.), and those governed by federal National Energy Board regulations. The transaction involving the sale of the provincially regulated facilities is expected to close in 2018, while the transaction involving the sale of the federally regulated facilities is anticipated to close in mid-2019.
Proceeds from these transactions provide significant additional financing flexibility going forward as the Company continues to execute on its current portfolio of secured growth projects. The Company's outlook for DCF/share through 2020 and its target credit metrics remain unchanged as a result of these asset sales.
Enbridge will continue to hold its highly strategic long haul regulated natural gas transmission assets which include the Westcoast transmission system in British Columbia and the Alliance pipeline that carries natural gas from western Canada to the Chicago market.
Brookfield intends to maintain the Canadian G&P workforce and anticipates that they will remain with the G&P business upon transaction close.
"I'd like to thank our colleagues at the G&P Business, who have done an exceptional job building and expanding a substantial gathering and processing franchise while operating the business safely and reliably day-in and day-out." added Mr. Monaco. Enbridge will work with Brookfield to ensure a safe and orderly transition of the G&P business' operations.
RBC Capital Markets acted as financial advisor and Torys LLP acted as legal advisors to Enbridge on the transaction.
Forward-Looking Statements
Certain information provided in this news release constitutes forward-looking statements and information ("FLI"). The words "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words and expressions are intended to identify such FLI. All statement other than statements of historical fact may be FLI. FLI included or incorporated by reference in this news release include, but are not limited to, information with respect to the following: the proposed transaction; the timing of closing of the transaction in respect of each of the provincially and federally regulated facilities; the consideration and the expected net proceeds from the transaction; use of proceeds from the transaction; Enbridge's financial strength and flexibility; intentions regarding the holding of Enbridge's regulated natural gas pipeline investments; intentions regarding the Canadian G&P workforce; and the transition of the Canadian G&P operations. Although Enbridge believes that the FLI is based on information which is current, reasonable and complete, by its nature FLI is necessarily subject to a variety of assumptions, risks and uncertainties pertaining but not limited to the timing and completion of the transactions, including receipt of regulatory approvals and satisfaction of other conditions precedent; the focus of management time and attention on the transaction and other disruptions arising from the transaction; estimated future cash flow, financial strength and flexibility; and economic and competitive conditions. A further discussion of the risks and uncertainties facing Enbridge can be found in its filings with Canadian and United States securities regulators. While Enbridge provides the FLI in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge assumes no obligation to publicly update or revise any FLI provided herein or otherwise, whether as a result of new information, future events or otherwise. All FLI in this news release is expressly qualified in its entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR MORE INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-announces-sale-of-canadian-natural-gas-gathering--processing-businesses-for-4-31-billion-300676284.html
SOURCE Enbridge Inc.
Article Date
7/4/20185/18/2018 - Enbridge Energy Management, L.L.C. Acknowledges Enbridge Inc. Offer and Establishes a Special Committee
Enbridge Energy Management, L.L.C. Acknowledges Enbridge Inc. Offer and Establishes a Special Committee
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, TX, May 18, 2018 /PRNewswire/ - Enbridge Energy Management, L.L.C. (NYSE: EEQ) (Enbridge Management) today announced that it has received a non-binding offer from Enbridge Inc. (Enbridge) (TSX, NYSE: ENB) to acquire all of the outstanding equity securities of EEQ not currently beneficially owned by Enbridge.
The board of directors of Enbridge Management (the EEM Board) has established a special committee of independent directors to review and consider the proposal.
The proposed transaction is subject to the review and recommendation by the special committee of the EEM Board, final approvals by the boards of directors of Enbridge Management and Enbridge, and negotiation of a definitive agreement. Any definitive agreement is expected to contain customary closing conditions, including standard regulatory notifications and approvals. There can be no assurance that any agreement will be reached or that a transaction will be consummated.
Shareholders of EEQ do not need to take any action with respect to the proposal at this time.
FORWARD-LOOKING INFORMATION
This communication includes certain forward looking statements and information (FLI) to provide EEQ shareholders and potential investors with information about EEQ and its subsidiaries and affiliates. FLI is typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words suggesting future outcomes or statements regarding an outlook. All statements other than statements of historical fact may be FLI. In particular, this news release contains FLI pertaining to, but not limited to, information with respect to a proposed transaction between EEQ and Enbridge.
Although we believe that the FLI is reasonable based on the information available today and processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. By its nature, FLI involves a variety of assumptions, which are based upon factors that may be difficult to predict and that may involve known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by these FLI, including, but not limited to, the following: the negotiation and execution, and the terms and conditions, of definitive agreements relating to the proposed transaction and the ability of Enbridge or EEQ to enter into or consummate such agreement; the risk that the proposed merger does not occur; negative effects from the pendency of the proposed merger; failure to obtain the required vote of EEQ's shareholders or board support; the timing to consummate the proposed transaction; the focus of management time and attention on the proposed transaction and other disruptions arising from the proposed transaction; potential changes in the Enbridge share price which may negatively impact the value of consideration offered to EEQ shareholders; expected supply and demand for crude oil, natural gas, natural gas liquids and renewable energy; prices of crude oil, natural gas, natural gas liquids and renewable energy; economic and competitive conditions; expected exchange rates; inflation; interest rates; tax rates and changes; completion of growth projects; anticipated in-service dates; capital project funding; success of hedging activities; the ability of management of EEQ, its subsidiaries and affiliates to execute key priorities, including those in connection with the proposed transactions; customer, shareholder, regulatory and other stakeholder approvals and support; and regulatory and legislative decisions and actions.
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 Enbridge Management's filings with the U.S. Securities and Exchange Commission (the SEC), including its most recently filed 2017 Annual Report on Form 10-K dated February 16, 2018 and Quarterly Report on Form 10-Q for additional factors that may affect results. These filings are available to the public over the Internet at the SEC's website (www.sec.gov) and at the Partnership's website.
IMPORTANT NOTICE TO INVESTORS
This press release is not a solicitation of a proxy, an offer to purchase nor a solicitation of an offer to sell listed shares of EEQ, and it is not a substitute for any proxy statement or other filings that may be made with the Securities and Exchange Commission (SEC) should these proposed transactions go forward. If such documents are filed with the SEC, investors will be urged to thoroughly review and consider them because they will contain important information, including risk factors. Any such documents, once filed, will be available free of charge at the SEC's website (www.sec.gov) and from Enbridge and EEQ, as applicable.
About Enbridge Energy Management, L.L.C.
Enbridge Energy Management, L.L.C. manages the business and affairs of the Partnership, and its sole asset is an approximate 20 percent limited partner interest in the Partnership. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. of Calgary, Alberta, Canada (NYSE: ENB) (TSX: ENB) is the general partner of the Partnership and holds an approximate 35 percent interest in the Partnership. Enbridge Management is the delegate of the general partner of the Partnership.
About Enbridge Energy Partners, L.P.
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil transportation systems in the United States. Its principal crude oil system is the largest pipeline transporter of growing oil production from western Canada and the North Dakota Bakken formation. The system's deliveries to refining centers and connected carriers in the United States account for approximately 25 percent of total U.S. oil imports. Enbridge Energy Partners, L.P. is traded on the New York Stock Exchange under the symbol EEP; information about the company is available on its website at www.enbridgepartners.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
|
Enbridge Energy Partners, L.P. |
|
|
Media |
Investment Community |
|
Michael Barnes |
Roni Cappadonna |
|
Toll Free: (877) 496-8142 |
Toll Free: (800) 481-2804 |
|
Email: michael.barnes@enbridge.com |
View original content:http://www.prnewswire.com/news-releases/enbridge-energy-management-llc-acknowledges-enbridge-inc-offer-and-establishes-a-special-committee-300650845.html
SOURCE Enbridge Energy Management L.L.C.
Article Date
5/18/20185/18/2018 - Enbridge Energy Partners, L.P. Acknowledges Enbridge Inc. Offer and Establishes a Special Committee
Enbridge Energy Partners, L.P. Acknowledges Enbridge Inc. Offer and Establishes a Special Committee
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, TX, May 18, 2018 /PRNewswire/ - Enbridge Energy Partners, L.P. (NYSE: EEP) (EEP or the Partnership) today announced that it has received a non-binding offer from Enbridge Inc. (Enbridge) (TSX, NYSE: ENB) and Enbridge (U.S.) Inc. to acquire all of the outstanding equity securities of EEP not currently beneficially owned by Enbridge.
The board of directors of Enbridge Energy Management, L.L.C., as the delegate of the general partner of the Partnership (the EEP Board), has established a special committee of independent directors to review and consider the proposal.
The proposed transaction is subject to the review and recommendation by the special committee of the EEP Board, final approvals by the EEP Board and the boards of directors of Enbridge and Enbridge (U.S.) Inc., and negotiation of a definitive agreement. Any definitive agreement is expected to contain customary closing conditions, including standard regulatory notifications and approvals. There can be no assurance that any agreement will be reached or that a transaction will be consummated.
Unitholders of EEP do not need to take any action with respect to the proposal at this time.
FORWARD-LOOKING INFORMATION
This communication includes certain forward looking statements and information (FLI) to provide EEP unitholders and potential investors with information about EEP and its subsidiaries and affiliates. FLI is typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words suggesting future outcomes or statements regarding an outlook. All statements other than statements of historical fact may be FLI. In particular, this news release contains FLI pertaining to, but not limited to, information with respect to a proposed transaction between EEP and Enbridge.
Although we believe that the FLI is reasonable based on the information available today and processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. By its nature, FLI involves a variety of assumptions, which are based upon factors that may be difficult to predict and that may involve known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by these FLI, including, but not limited to, the following: the negotiation and execution, and the terms and conditions, of definitive agreements relating to the proposed transactions and the ability of Enbridge or EEP to enter into or consummate such agreements; the risk that the proposed merger does not occur; negative effects from the pendency of the proposed merger; failure to obtain the required vote of EEP's unitholders; the timing to consummate the proposed transaction; the focus of management time and attention on the proposed transaction and other disruptions arising from the proposed transaction; potential changes in the Enbridge share price which may negatively impact the value of consideration offered to EEP unitholders; expected supply and demand for crude oil, natural gas, natural gas liquids and renewable energy; prices of crude oil, natural gas, natural gas liquids and renewable energy; economic and competitive conditions; expected exchange rates; inflation; interest rates; tax rates and changes; completion of growth projects; anticipated in-service dates; capital project funding; success of hedging activities; the ability of management of EEP, its subsidiaries and affiliates to execute key priorities, including those in connection with the proposed transactions; customer, shareholder, regulatory and other stakeholder approvals and support; and regulatory and legislative decisions and actions.
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 most recently filed 2017 Annual Report on Form 10-K dated February 16, 2018 and Quarterly Report on Form 10-Q for additional factors that may affect results. These filings are available to the public over the Internet at the SEC's website (www.sec.gov) and at the Partnership's website.
IMPORTANT NOTICE TO INVESTORS
This press release is not a solicitation of a proxy, an offer to purchase nor a solicitation of an offer to sell Class A common units of EEP, and it is not a substitute for any proxy statement or other filings that may be made with the Securities and Exchange Commission (SEC) should these proposed transactions go forward. If such documents are filed with the SEC, investors will be urged to thoroughly review and consider them because they will contain important information, including risk factors. Any such documents, once filed, will be available free of charge at the SEC's website (www.sec.gov) and from Enbridge and EEP, as applicable.
ABOUT ENBRIDGE ENERGY PARTNERS, L.P.
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil transportation systems in the United States. Its principal crude oil system is the largest pipeline transporter of growing oil production from western Canada and the North Dakota Bakken formation. The system's deliveries to refining centers and connected carriers in the United States account for approximately 25 percent of total U.S. oil imports. Enbridge Energy Partners, L.P. is traded on the New York Stock Exchange under the symbol EEP; information about the Partnership is available on its website at www.enbridgepartners.com.
ABOUT ENBRIDGE ENERGY MANAGEMENT, L.L.C.
Enbridge Energy Management, L.L.C. manages the business and affairs of the Partnership, and its sole asset is an approximate 20 percent limited partner interest in the Partnership. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. of Calgary, Alberta, Canada (NYSE: ENB) (TSX: ENB) is the General Partner of the Partnership and holds an approximate 35 percent interest in the Partnership. Enbridge Management is the delegate of the General Partner of the Partnership.
FOR FURTHER INFORMATION PLEASE CONTACT:
Enbridge Energy Partners, L.P.
|
Media |
Investment Community |
|
Michael Barnes |
Roni Cappadonna |
|
Toll Free: (888) 992-0997 |
Toll Free: (800) 481-2804 |
|
Email: michael.barnes@enbridge.com |
View original content:http://www.prnewswire.com/news-releases/enbridge-energy-partners-lp-acknowledges-enbridge-inc-offer-and-establishes-a-special-committee-300650889.html
SOURCE Enbridge Energy Partners, L.P.
Article Date
5/18/20185/10/2018 - Enbridge Inc. Reports First Quarter 2018 Results
Enbridge Inc. Reports First Quarter 2018 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
CALGARY, May 10, 2018 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB) (NYSE:ENB) today reported first quarter 2018 financial results and provided a quarterly business update.
FIRST QUARTER HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
FINANCIAL RESULTS SUMMARY
Financial results for the three months ended March 31, 2018, are summarized in the table below:
|
Three months ended | ||
|
2018 |
2017 | |
|
(millions of Canadian dollars, except per share amounts; number of shares in millions) |
||
|
GAAP Earnings |
445 |
638 |
|
GAAP Earnings per common share |
0.26 |
0.54 |
|
Cash provided by operating activities |
3,194 |
1,776 |
|
Adjusted EBITDA1 |
3,406 |
2,187 |
|
Adjusted Earnings1 |
1,375 |
675 |
|
Adjusted Earnings per common share1 |
0.82 |
0.57 |
|
Distributable Cash Flow1,2 |
2,312 |
1,215 |
|
Weighted average common shares outstanding |
1,685 |
1,177 |
|
1 Schedules reconciling adjusted EBITDA, adjusted earnings, adjusted earnings per common share and distributable cash flow | ||
|
2 Formerly referred to as Adjusted Cash Flow From Operations (ACFFO). Calculation methodology remains unchanged. | ||
GAAP earnings attributable to common shareholders for the period ended March 31, 2018 decreased by $193 million relative to 2017, as a result of the impact of a number of unusual, non-recurring or non-operating factors, including a write-down of certain U.S. midstream assets held for sale. The period-over-period comparability of GAAP earnings attributable to common shareholders is further impacted by the fact that the first quarter of 2017 results only reflect one full month of the Merger Transaction.
Adjusted earnings in the first quarter of 2018 increased by $700 million or $0.25 per share compared to the same period in 2017. The 2018 increase was primarily driven by strong operating results, including higher contributions from Enbridge's new natural gas, liquids pipelines and utilities assets, stronger crude oil throughput on the Mainline system enabled by capacity optimization initiatives, new projects coming into service in the Liquids Pipelines, Gas Transmission & Midstream and Gas Distribution segments, lower operating and maintenance costs and more favourable realized settlements on foreign exchange hedges.
DCF for the first quarter was $2,312 million, an increase of $1,097 million over the comparable prior period in 2017, driven largely by the same factors noted above.
Detailed segmented financial information and analysis can be found in the Adjusted EBITDA by Segments section below.
CEO COMMENT
"We're very pleased with the significant progress that we've made in the first quarter of the year towards achieving our 2018 strategic priorities", commented Al Monaco, President and Chief Executive Officer of Enbridge. "Our earnings and cash flows have grown significantly year over year, we've raised over $3 billion of hybrid securities and have now announced over $3 billion of asset sales, all consistent with our strategy to focus on a low-risk pipeline and utility business model and to accelerate funding of our secured capital program.
"Our strong financial results for the first quarter of 2018 clearly demonstrate the quality of the assets, predictability of cash flows and the accretive nature of the Spectra Energy merger that we completed last year. Adjusted earnings per share is up over 40% this quarter relative to the first quarter of last year. We're now benefiting from the significant financial synergies that we have captured to date from the deal and other efficiency efforts, and, as expected, we are seeing reliable and growing cash flow and earnings from the $12 billion in new capital projects that we brought into service through 2017.
"Operationally and financially, all of our major business segments performed well this quarter, with the Liquids Pipelines Mainline System delivering its highest ever quarterly volume. The Gas Transmission business again provided solid results through a colder winter across the US and our gas utilities delivered cash flow growth on the strength of new assets coming into service. We also saw a nice uptick in Green Power and Energy Services. The strong performance in the first quarter gives us confidence, four months into the year, that our financial results for 2018 should end up within the full year guidance range that we provided last November.
"We also continued to advance the execution of our $22 billion inventory of secured capital growth projects, bringing almost $1 billion of projects into service this quarter, substantially on time and on budget. Although we're pleased with the report from the ALJ who concluded that there was clear need for our Line 3 Replacement project in Minnesota, we disagree with the ALJ's recommendation of an in-trench replacement along the existing route. Enbridge's route would have less environmental impact, is safer to execute, respects Tribal sovereignty, and would have minimal disruption to local crude oil supply and downstream refinery operations, which would otherwise negatively impact gasoline prices. We've publicly filed these and other exceptions to the ALJ's recommendation and will vigorously advocate for our route heading into the MPUC vote on the project's Certificate of Need and Route Permit which is scheduled for later in June."
Mr. Monaco continued, "On the financing front, we've made good progress on our commitment to accelerate deleveraging in 2018 while we continue to build out our secured growth program. We're well ahead of schedule, having already raised close to 75% of our targeted hybrid equity funding for the year by the end of April. This progress de-risks the execution of the financing plan while locking in equity-equivalent capital at attractive rates.
"The $3.2 billion of asset monetizations will give us more financial flexibility and move us closer to the pure pipeline and utility-like business model that we laid out in our strategic plan. Given the strong interest we've received in certain other non-core assets, we're looking closely at further asset sales this year to provide additional financing flexibility if the valuations are attractive.
"In summary, we're making good progress towards delivering on the priorities that we set out when we announced our strategic plan in December last year. We're on track to deliver full year financial results within the guidance range, and we're well ahead of the game with respect to funding initiatives for 2018. We believe that we have the right strategic plan in place to position the Company for success and surface the significant value from what we believe are the premium energy infrastructure assets in North America, and we remain keenly focused on executing that plan over the remainder of the year."
PROJECT EXECUTION UPDATE
Enbridge continues to make good progress executing its secured growth capital program. The individual projects that make up the secured program are all supported by long-term take-or-pay contracts, cost-of-service frameworks or similar low-risk commercial arrangements and are diversified across a wide range of business platforms and regulatory jurisdictions.
In the first quarter of 2018, the Company brought $0.8 billion of commercially secured projects into service, substantially on time and on budget. This included the US$0.2 billion Stampede Offshore oil lateral in the Gulf of Mexico that extends the Company's offshore footprint in the Green Canyon corridor and the $0.4 billion High Pine and the $0.2 billion Wyndwood pipeline expansions, to enhance the natural gas transmission capacity on the T-North section of the B.C. pipeline system.
In total, $7 billion of projects are expected to come into service this year, including three of significant size. The $0.8 billion Rampion Offshore wind power generation facility in the UK is substantially complete and will begin delivering full power to the grid in the second quarter. The US$1.3 billion Nexus natural gas pipeline that will transport gas from the Marcellus and Utica basins to the upper Midwest and Canadian markets is progressing well with construction under way in Ohio and remains on track for completion late in the third quarter. Finally, the US$1.6 billion Valley Crossing project which will supply 2.6 Bcf of gas into the Mexican market has substantially completed its onshore pipeline installation and continues to advance the offshore portion for a fourth quarter 2018 in-service date.
LINE 3 REPLACEMENT UPDATE
The $9 billion Line 3 Replacement project is a critical integrity replacement project that will enhance the safety and reliability of the Enbridge liquids Mainline System and provide incremental export capacity to Western Canadian producers and increased security of supply for key refining markets along the Mainline system as well as to markets further downstream.
The project continues to progress well on several fronts. In Canada, the first phase of pipeline construction is now complete, with approximately 40% of the pipe now laid. In the U.S., the pipeline replacement work in Wisconsin is complete and that segment of the line is expected to be commissioned in May.
In Minnesota, on April 23rd an Administrative Law Judge issued Findings of Fact, Conclusions of Law and Recommendation to the MPUC in connection with the Company's applications for a Certificate and Route Permit. The ALJ recommended that the MPUC grant the Company's application for a Certificate of Need, but only if the MPUC also selects a route that would require in-trench replacement of the existing Line 3, which is not the Company's preferred route. The ALJ's recommendation is not binding on the MPUC.
The Company continues to believe that its preferred route remains the best solution for Minnesota and intends to continue its effort to secure approval of its preferred route by the MPUC. On May 9, 2018 Enbridge filed its exceptions to the ALJ Report with the MPUC, setting out its proposed revisions to the ALJ's summary of the evidentiary record, as well as Enbridge's points of disagreement with the conclusions on route recommendation. The MPUC is expected to issue a ruling on the Certificate of Need and Route Permit dockets at the end of the second quarter of 2018. Management continues to anticipate an in-service date for the project in the second half of 2019.
ACTIONS BY THE FERC
On March 15, 2018, the Federal Energy Regulatory Commission (FERC) revised a long standing policy announcing that it would no longer permit entities organized as Master Limited Partnerships (MLP) to recover an income tax allowance for interstate pipeline assets with cost of service rates. The announcement of the Revised Policy Statement was accompanied by: (i) a Notice of Proposed Rulemaking proposing interstate natural gas pipelines file a one-time report to quantify the impact of the federal income tax rate reduction and the impact of the revised Policy Statement on each pipeline; and (ii) a Notice of Inquiry seeking comment on how FERC should address changes related to accumulated deferred income taxes (ADIT) and bonus depreciation.
Enbridge holds U.S. liquids and natural gas pipelines through a number of different ownership structures including MLPs. Many MLPs, including Spectra Energy Partners LP (SEP) and Enbridge Energy Partners, L.P. (EEP) both of which Enbridge sponsors and retains an equity interest in, have responded to the FERC announcement regarding tax allowance, both directly and through industry associations, objecting to the change in FERC policy and requesting a re-hearing. On April 27, 2018, the FERC issued a tolling order for the purpose of affording it additional time for consideration of matters raised on rehearing.
While there will likely be varying impacts to each of the sponsored vehicles, on a consolidated basis, we do not expect a material impact to previously disclosed financial guidance over the 2018 to 2020 horizon. Under the International Joint Toll mechanism on the Mainline System, any reductions in the EEP tariff would create an offsetting revenue increase on the Canadian Mainline system owned by the Fund Group. In addition, the impact to distributable cash flow at SEP is not expected to be material to Enbridge on a consolidated basis.
STRATEGIC & FINANCIAL UPDATE
In late November of 2017, Enbridge released the details of its updated strategic plan and outlook. The plan sets out the Company's broader intention to focus on a pure regulated pipeline and utility business model over time, emphasizing low risk and strong growth in three core businesses: liquids pipelines and terminals, natural gas transmission and storage and natural gas utilities. It also set out a clear plan with respect to how it will finance its current secured growth capital program through 2020 while strengthening its balance sheet. The financing plan is designed to accelerate deleveraging and provide financial flexibility to ensure maintenance of strong, investment grade credit metrics. It targets a reduction in the Company's consolidated Debt to EBITDA metric to 5.0x by the end of 2018, and below that level going forward. The deleveraging would be accomplished through, among other things, the issuance of $4 billion of hybrid instruments as well as the disposition of $3 billion of non-core assets in 2018.
Four months into 2018, the Company has made significant progress on its plan. Since December 2017, Enbridge has issued close to $3.1 billion of hybrid instruments (approximately 75% of its planned target) in institutional and retail markets in Canada and the US, the proceeds of which have been used to pay down senior debt. Demand for these instruments continues to be strong and Management believes that the remainder of hybrid security issuance planned for 2018 can readily be executed in North American and/or Global markets.
The Company continues to have strong access to debt capital markets, completing successful offerings for the Texas Eastern Pipeline Company and Sabal Trail Transmission totaling US$2.3 billion, the proceeds of which were primarily used to repay debt at Spectra Energy Partners.
Subsequent to the end of the quarter, Enbridge also announced over $3 billion of non-core asset monetizations. The Company has entered into a definitive agreement with ArcLight Capital Partners to sell Midcoast Operating, L.P. and its subsidiaries, which conducts the Company's U.S. natural gas and natural gas liquids gathering, processing, transportation and marketing businesses, serving established basins in Texas, Oklahoma and Louisiana, for a cash purchase price of US$1.120 billion (approximately C$1.4 billion), subject to customary closing adjustments. The transaction is expected to close in the third quarter of 2018, subject to receipt of customary regulatory approvals and satisfaction of other customary closing conditions. This transaction supports the Company's strategy to focus on a lower risk pipeline and utility business model.
Separately, Enbridge also announced that it had entered into an agreement with the Canadian Pension Plan Investment Board (CPPIB) whereby CPPIB will acquire a 49% interest in all of Enbridge's Canadian renewable energy generation assets, 49% of two large US renewable assets and 49% of the Company's interest in the Hohe See wind farm and its subsequent expansion, both currently in construction in Germany. Initial proceeds from the transaction are $1.75 billion. In addition, CPPIB will fund their pro-rata share of the remaining capital on the Hohe See project, which will reduce Enbridge's future funding requirement by roughly $500 million. Enbridge also announced a further joint venture with CPPIB to co-invest in any future European offshore renewable projects. This partnership will provide a reliable source of alternative capital for the future development of this platform.
Given this strong funding plan progress in early 2018, the Company continues to believe that the balance of any equity required to fund the Company's consolidated secured growth program through 2020 can be readily met through a combination of additional hybrid equity, asset monetizations or issuances of common shares under the Company's DRIP program.
FIRST QUARTER 2018 FINANCIAL RESULTS
The following table includes the Company's GAAP reported results for segment EBITDA, earnings attributable to common shareholders, and cash provided by operating activities for the first quarter 2018.
GAAP EBITDA AND CASH FLOW FROM OPERATIONS
|
Three months ended | ||
|
2018 |
2017 | |
|
(millions of Canadian dollars) |
||
|
Liquids Pipelines |
1,156 |
1,480 |
|
Gas Transmission and Midstream |
126 |
475 |
|
Gas Distribution |
636 |
387 |
|
Green Power and Transmission |
109 |
101 |
|
Energy Services |
169 |
156 |
|
Eliminations and Other |
(279) |
(298) |
|
Earnings before interest, income taxes, depreciation and amortization |
1,917 |
2,301 |
|
Earnings |
445 |
638 |
|
Cash provided by operating activities |
3,194 |
1,776 |
For purposes of evaluating performance, the Company makes adjustments for unusual, non-recurring or non-operating factors to GAAP reported earnings, segment EBITDA, and cash flow provided by operating activities, as it allows Management and investors to more accurately compare the Company's performance across periods and the factors being adjusted for are not indicative of the underlying performance and cash flows of the business. These tables follow below. Schedules reconciling adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per common share and distributable cash flow to their closest GAAP equivalent are available as an Appendix to this news release.
DISTRIBUTABLE CASH FLOW
|
Three months ended | |||
|
2018 |
2017 | ||
|
(unaudited, millions of Canadian dollars, except per share amounts) |
|||
|
Liquids Pipelines |
1,627 |
1,325 | |
|
Gas Transmission and Midstream |
1,046 |
472 | |
|
Gas Distribution |
646 |
381 | |
|
Green Power and Transmission |
139 |
101 | |
|
Energy Services |
22 |
(4) | |
|
Eliminations and Other |
(74) |
(88) | |
|
Adjusted EBITDA1 |
3,406 |
2,187 | |
|
Maintenance Capital |
(165) |
(182) | |
|
Interest expense1 |
(652) |
(479) | |
|
Current income tax1 |
(75) |
(41) | |
|
Distributions to noncontrolling interests and redeemable noncontrolling interests |
(293) |
(245) | |
|
Cash distributions in excess of equity earnings1 |
63 |
(2) | |
|
Preference share dividends |
(87) |
(83) | |
|
Other receipts of cash not recognized in revenue2 |
76 |
47 | |
|
Other non-cash adjustments |
39 |
13 | |
|
Distributable cash flow |
2,312 |
1,215 | |
|
Weighted average common shares outstanding |
1,685 |
1,177 | |
|
1 Presented net of adjusting items. | |||
|
2 Consists of cash received net of revenue recognized for contracts under make-up rights, contribution in aid of construction and | |||
Distributable Cash Flow (DCF) increased by $1,097 million for the first quarter 2018, compared to the same period in 2017. Period-over-period comparability is difficult as the majority of items included in the build-up to DCF reflect only a partial quarter impact in 2017 from the merger with Spectra Energy (the Merger Transaction) as the Merger Transaction closed on February 27, 2017. Other notable period-over-period variance drivers were:
ADJUSTED EARNINGS
|
Three months ended | |||
|
2018 |
2017 | ||
|
(unaudited, millions of Canadian dollars, except per share amounts) |
|||
|
Adjusted EBITDA |
3,406 |
2,187 | |
|
Depreciation and amortization expense |
(824) |
(672) | |
|
Interest expense |
(622) |
(465) | |
|
Income taxes |
(256) |
(144) | |
|
Noncontrolling interests and redeemable noncontrolling interests |
(240) |
(148) | |
|
Preference share dividends |
(89) |
(83) | |
|
Adjusted earnings |
1,375 |
675 | |
|
Adjusted earnings per common share |
0.82 |
0.57 | |
Adjusted earnings increased by $700 million for the first quarter of 2018, compared to the same period in 2017. Growth in Adjusted Earnings was driven by the same business performance and factors and timing of the Merger Transaction as discussed in Distributable Cash Flow above. Other notable period-over-period drivers were:
Adjusted earnings per share reflects the factors noted above as well as the impact of approximately 691 million of common shares issued in connection with the share exchange executed on closing of the Merger Transaction in February 2017 and a follow on offering of approximately 33 million of the Company's common shares in December 2017.
ADJUSTED EBITDA BY SEGMENTS
The following adjusted EBITDA by segment is reported on a Canadian dollar basis. Adjusted EBITDA generated from US dollar denominated businesses were translated at stronger average Canadian dollar exchange rates in the first of quarter 2018 (C$1.26/$US) when compared to the corresponding 2017 period (C$1.32/$US), negatively impacting results. A portion of the US dollar earnings are hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
LIQUIDS PIPELINES
|
Three months ended | ||
|
2018 |
2017 | |
|
(millions of Canadian dollars) |
||
|
Canadian Mainline |
481 |
315 |
|
Lakehead System |
461 |
513 |
|
Regional Oil Sands System |
222 |
131 |
|
Gulf Coast and Mid-Continent |
178 |
152 |
|
Other1 |
285 |
214 |
|
Adjusted EBITDA2 |
1,627 |
1,325 |
|
Operating Data (average deliveries – thousands of bpd) |
||
|
Canadian Mainline3 |
2,625 |
2,593 |
|
Lakehead System4 |
2,766 |
2,748 |
|
Regional Oil Sands System5 |
1,629 |
1,318 |
|
International Joint Tariff |
$4.07 |
$4.05 |
|
Lakehead System Local Toll |
$2.43 |
$2.58 |
|
Canadian Mainline IJT Residual Toll |
$1.64 |
$1.47 |
|
Canadian Mainline Apportionment6 |
44% |
37% |
|
Canadian Mainline Effective FX Rate |
$1.25 |
$1.04 |
|
1 |
Included within Other are Southern Lights Pipeline, Express-Platte System, Bakken System and Feeder Pipelines & Other |
|
2 |
Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
|
3 |
Canadian Mainline throughput volume represents mainline system deliveries ex-Gretna, Manitoba which is made up of United States and eastern Canada deliveries originating from western Canada |
|
4 |
Lakehead System throughput volume represents mainline system deliveries to the United States mid-west and eastern Canada |
|
5 |
Volumes are for the Athabasca mainline, Athabasca Twin, Waupisoo Pipeline and Woodland Pipeline and exclude laterals on the Regional Oil Sands System |
|
6 |
Heavy apportionment on Canadian Mainline |
Liquids Pipelines adjusted EBITDA increased by $302 million for the first quarter of 2018 when compared to the same period in 2017. The key period-over-period performance drivers were:
GAS TRANSMISSION AND MIDSTREAM
|
Three months ended | ||
|
2018 |
2017 | |
|
(millions of Canadian dollars) |
||
|
US Gas Transmission |
650 |
255 |
|
Canadian Gas Transmission & Midstream |
218 |
88 |
|
Alliance Pipeline |
63 |
57 |
|
US Midstream |
82 |
42 |
|
Other |
33 |
30 |
|
Adjusted EBITDA1 |
1,046 |
472 |
|
1 Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
GAS DISTRIBUTION
|
Three months ended | ||||
|
2018 |
2017 | |||
|
(millions of Canadian dollars) |
||||
|
Enbridge Gas Distribution Inc. (EGD) |
296 |
221 | ||
|
Union Gas Limited (Union Gas) |
277 |
87 | ||
|
Other Gas Distribution and Storage |
73 |
73 | ||
|
Adjusted EBITDA1 |
646 |
381 | ||
|
Operating Data |
||||
|
Enbridge Gas Distribution |
||||
|
Volumes (billions of cubic feet) |
187 |
171 | ||
|
Number of active customers (thousands)3 |
2,197 |
2,168 | ||
|
Heating degree days4 |
||||
|
Actual |
1,825 |
1,686 | ||
|
Forecast based on normal weather |
1,832 |
1,875 | ||
|
Union Gas2 |
||||
|
Volumes (billions of cubic feet) |
482 |
149 | ||
|
Number of active customers (thousands)3 |
1,480 |
1,461 | ||
|
Heating degree days4, 2 |
||||
|
Actual |
1,986 |
601 | ||
|
Forecast based on normal weather |
2,003 |
576 | ||
|
1 |
Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
|
2 |
Reflects operating data post-Spectra Merger. |
|
3 |
Number of active customers is the number of EGD and Union Gas customers at the end of the period. |
|
4 |
Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in EGD's and Union Gas's franchise area. It is calculated by accumulating, for the fiscal period, the total number of degrees each day by which the daily mean temperature falls below 18 degrees Celsius. |
Gas Distribution adjusted EBITDA will typically follow a seasonal profile. It is generally highest in the first and fourth quarters of the year reflecting greater volumetric usage during the heating season. The magnitude of the seasonal EBITDA profile will vary from year-to-year reflecting the impact of colder or warmer than normal weather on distribution volumes in a given quarter.
Gas Distribution adjusted EBITDA increased by $265 million for the first quarter 2018 when compared to the same period in 2017. The key period-over-period performance drivers were:
GREEN POWER AND TRANSMISSION
|
Three months ended | ||
|
2018 |
2017 | |
|
(millions of Canadian dollars) |
||
|
Adjusted EBITDA1 |
139 |
101 |
|
1 Schedules reconciling Adjusted EBITDA are available as an Appendix to this news release. |
Green Power & Transmission adjusted EBITDA increased by $38 million for the first quarter 2018 when compared to the same period in 2017. The key period-over-period performance drivers were:
ENERGY SERVICES
|
Three months ended | ||
|
2018 |
2017 | |
|
(millions of Canadian dollars) |
||
|
Adjusted earnings/(loss) before interest, income taxes, depreciation and amortization1 |
22 |
(4) |
|
1 Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Energy Services adjusted EBITDA increased by $26 million for the first quarter 2018 when compared to the same period in 2017. The key period-over-period performance drivers were:
ELIMINATIONS AND OTHER
|
Three months ended | ||
|
2018 |
2017 | |
|
(millions of Canadian dollars) |
||
|
Operating and administrative |
(32) |
(16) |
|
Realized foreign exchange hedge settlements |
(42) |
(72) |
|
Adjusted loss before interest, income taxes, depreciation and amortization1 |
(74) |
(88) |
|
1 Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Eliminations and Other adjusted loss before interest, income taxes, depreciation and amortization decreased by $14 million for the first quarter 2018, when compared to the same period in 2017. The key period-over-period performance drivers were as follows:
CONFERENCE CALL
Enbridge will host a joint conference call and webcast on May 10, 2018 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) with Enbridge Income Fund Holdings Inc., Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP to provide an enterprise wide business update and review 2018 first quarter financial results. Analysts, members of the media and other interested parties can access the call toll free at (877) 930-8043 or within and outside North America at (253) 336-7522 using the access code of 4849907#. The call will be audio webcast live at https://edge.media-server.com/m6/p/6pm7mqpf. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available for seven days after the call toll-free (855) 859-2056 or within and outside North America at (404) 537-3406 (access code 4849907#).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected DCF or DCF per share; expected future cash flows; expected performance of the Company's businesses; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected credit metrics and debt to EBITDA levels; expected costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected impact on cash flows of the Company's commercially secured growth program; expected future growth and expansion opportunities; expectations about the Company's joint venture partners' ability to complete and finance projects under construction; expected closing of acquisitions and dispositions; estimated future dividends; expected outcome of the Minnesota Public Utilities Commission review of the Line 3 Replacement Project; expected future actions of regulators; expectations regarding commodity prices; supply forecasts; expectations regarding the impact of the Merger Transaction including the combined Company's scale, financial flexibility, growth program, future business prospects and performance and streamlining opportunities; expected impact of U.S. Tax Reform; dividend payout policy; and dividend growth and dividend payout expectation.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the realization of anticipated benefits and synergies of the Merger Transaction; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of capital project execution on the Company's future cash flows; credit ratings; capital project funding; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the impact of the Merger Transaction on the Company, expected EBITDA, adjusted EBITDA, earnings/(loss), adjusted earnings/(loss) and associated per share amounts, or estimated future dividends. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the impact of the Merger Transaction, operating performance, regulatory parameters, dividend policy, project approval and support, renewals of rights of way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
ABOUT ENBRIDGE INC.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past eight years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise part of this news release.
FOR FURTHER INFORMATION PLEASE CONTACT:
|
Enbridge Inc. – Media |
Enbridge Inc. – Investment Community |
|
Suzanne Wilton |
Jonathan Gould |
|
Toll Free: (888) 992-0997 |
Toll Free: (800) 481-2804 |
|
Email: suzanne.wilton@enbridge.com |
Email: jonathan.gould@enbridge.com |
DIVIDEND DECLARATION
Our Board of Directors has declared the following quarterly dividends. All dividends are payable on June 1, 2018, to shareholders of record on May 15, 2018.
|
Common Shares |
0.67100 | |
|
Preference Shares, Series A |
0.34375 | |
|
Preference Shares, Series B |
0.21340 | |
|
Preference Shares, Series C1 |
0.22685 | |
|
Preference Shares, Series D2 |
0.27875 | |
|
Preference Shares, Series F |
0.25000 | |
|
Preference Shares, Series H |
0.25000 | |
|
Preference Shares, Series J |
US$0.30540 | |
|
Preference Shares, Series L |
US$0.30993 | |
|
Preference Shares, Series N |
0.25000 | |
|
Preference Shares, Series P |
0.25000 | |
|
Preference Shares, Series R |
0.25000 | |
|
Preference Shares, Series 1 |
US$0.25000 | |
|
Preference Shares, Series 3 |
0.25000 | |
|
Preference Shares, Series 5 |
US$0.27500 | |
|
Preference Shares, Series 7 |
0.27500 | |
|
Preference Shares, Series 9 |
0.27500 | |
|
Preference Shares, Series 11 |
0.27500 | |
|
Preference Shares, Series 13 |
0.27500 | |
|
Preference Shares, Series 15 |
0.27500 | |
|
Preference Shares, Series 17 |
0.32188 | |
|
Preference Shares, Series 193 |
0.30625 |
|
1 |
The quarterly dividend amounts of Series C was increased to $0.22685 from $0.20342 on March 1, 2018, due to reset on a quarterly basis. |
|
2 |
The quarterly dividend amounts of Series D was increased to $0.27875 from $0.25000 on March 1, 2018, due to reset of the annual dividend on March 1, 2018, and every five years thereafter. |
|
3 |
The Series 19 increase from $0.26850 to the regular quarterly dividend of $0.30625 will take effect on June 1, 2018. |
NON-GAAP RECONCILATIONS APPENDICES
This news release contains references to adjusted EBITDA, adjusted earnings, adjusted earnings per common share, and DCF. Management believes the presentation of adjusted EBITDA, adjusted earnings, adjusted earnings per common share and DCF gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Adjusted EBITDA represents EBITDA adjusted for unusual, non-recurring or non-operating factors on both a consolidated and segmented basis. Management uses adjusted EBITDA to set targets and to assess the performance of the Company.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, non-recurring or non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, non-recurring or non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes, noncontrolling interests and redeemable noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another reflection of the Company's ability to generate earnings.
DCF is defined as cash flow provided by operating activities before changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests and redeemable noncontrolling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
Reconciliations of forward looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly with estimates for certain contingent liabilities, and estimating non-cash unrealized derivative fair value losses and gains and ineffectiveness on hedges which are subject to market variability and therefore a reconciliation is not available without unreasonable effort.
Our non-GAAP measures described above are not measures that have standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers.
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON- GAAP RECONCILATIONS: ADJUSTED EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
|
Three months ended | ||
|
2018 |
2017 | |
|
(millions of Canadian dollars) |
||
|
Liquids Pipelines |
1,156 |
1,480 |
|
Gas Transmission and Midstream |
126 |
475 |
|
Gas Distribution |
636 |
387 |
|
Green Power and Transmission |
109 |
101 |
|
Energy Services |
169 |
156 |
|
Eliminations and Other |
(279) |
(298) |
|
Earnings before interest, income taxes, depreciation and amortization |
1,917 |
2,301 |
|
Depreciation and amortization |
(824) |
(672) |
|
Interest expense |
(656) |
(486) |
|
Income taxes |
73 |
(198) |
|
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests |
24 |
(224) |
|
Preference share dividends |
(89) |
(83) |
|
Earnings attributable to common shareholders |
445 |
638 |
ADJUSTED EBITDA TO ADJUSTED EARNINGS
|
Three months ended | ||
|
2018 |
2017 | |
|
(millions of Canadian dollars, except per share amounts) |
||
|
Liquids Pipelines |
1,627 |
1,325 |
|
Gas Transmission and Midstream |
1,046 |
472 |
|
Gas Distribution |
646 |
381 |
|
Green Power and Transmission |
139 |
101 |
|
Energy Services |
22 |
(4) |
|
Eliminations and Other |
(74) |
(88) |
|
Adjusted EBITDA |
3,406 |
2,187 |
|
Depreciation and amortization expense |
(824) |
(672) |
|
Interest expense |
(622) |
(465) |
|
Income taxes |
(256) |
(144) |
|
Noncontrolling interests and redeemable noncontrolling interests |
(240) |
(148) |
|
Preference share dividends |
(89) |
(83) |
|
Adjusted earnings |
1,375 |
675 |
|
Adjusted earnings per common share |
0.82 |
0.57 |
EBITDA TO ADJUSTED EARNINGS
|
Three months ended | |||
|
2018 |
2017 | ||
|
(millions of Canadian dollars, except per share amounts) |
|||
|
Earnings before interest, income taxes, depreciation and amortization |
1,917 |
2,301 | |
|
Adjusting items: |
|||
|
Change in unrealized derivative fair value (gains)/loss |
277 |
(416) | |
|
Asset write-down loss |
1,057 |
— | |
|
Employee severance, transition and transformation costs |
97 |
129 | |
|
Equity investment asset impairment |
33 |
— | |
|
Transaction costs |
— |
152 | |
|
Other |
25 |
21 | |
|
Total adjusting items |
1,489 |
(114) | |
|
Adjusted earnings before interest, income taxes, depreciation and amortization |
3,406 |
2,187 | |
|
Depreciation and amortization |
(824) |
(672) | |
|
Interest expense |
(656) |
(486) | |
|
Income taxes |
73 |
(198) | |
|
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests |
24 |
(224) | |
|
Preference share dividends |
(89) |
(83) | |
|
Adjusting items in respect of: |
|||
|
Interest expense |
34 |
21 | |
|
Income taxes |
(329) |
54 | |
|
Noncontrolling interests and redeemable noncontrolling interests |
(264) |
76 | |
|
Adjusted earnings |
1,375 |
675 | |
|
Adjusted earnings per common share |
0.82 |
0.57 | |
APPENDIX B
NON-GAAP RECONCILIATION – SEGMENTED EBITDA TO ADJUSTED EBITDA
LIQUIDS PIPELINES
|
Three months ended | |||
|
2018 |
2017 | ||
|
(millions of Canadian dollars) |
|||
|
Adjusted earnings before interest, income taxes, depreciation and amortization |
1,627 |
1,325 | |
|
Change in unrealized derivative fair value gain/(loss) |
(298) |
164 | |
|
Asset write-down loss |
(144) |
— | |
|
Project wind down costs |
— |
(5) | |
|
Leak remediation costs, net of leak insurance recoveries |
— |
(3) | |
|
Project development costs |
(3) |
(1) | |
|
Employee severance, transition and transformation costs |
(26) |
— | |
|
Total adjustments |
(471) |
155 | |
|
Earnings before interest, income taxes, depreciation and amortization |
1,156 |
1,480 | |
GAS TRANSMISSION AND MIDSTREAM
|
Three months ended | |||
|
2018 |
2017 | ||
|
(millions of Canadian dollars) |
|||
|
Adjusted earnings before interest, income taxes, depreciation and amortization |
1,046 |
472 | |
|
Asset write-down loss |
(913) |
— | |
|
Pipeline inspection and other |
(2) |
(2) | |
|
Change in unrealized derivative fair value gain |
6 |
10 | |
|
DCP Midstream equity earnings adjustment |
(4) |
(2) | |
|
Transaction costs |
— |
(3) | |
|
Employee severance, transition and transformation costs |
(7) |
— | |
|
Total adjustments |
(920) |
3 | |
|
Earnings before interest, income taxes, depreciation and amortization |
126 |
475 | |
GAS DISTRIBUTION
|
Three months ended | |||
|
2018 |
2017 | ||
|
(millions of Canadian dollars) |
|||
|
Adjusted earnings before interest, income taxes, depreciation and amortization |
646 |
381 | |
|
Change in unrealized derivative fair value gain |
1 |
10 | |
|
Noverco Inc. equity earnings adjustment |
(9) |
— | |
|
Employee severance, transition and transformation costs |
(2) |
(4) | |
|
Total adjustments |
(10) |
6 | |
|
Earnings before interest, income taxes, depreciation and amortization |
636 |
387 | |
GREEN POWER AND TRANSMISSION
|
Three months ended | |||
|
2018 |
2017 | ||
|
(millions of Canadian dollars) |
|||
|
Adjusted earnings before interest, income taxes, depreciation and amortization |
139 |
101 | |
|
Change in unrealized derivative fair value gain |
3 |
— | |
|
Equity investment asset impairment |
(33) |
— | |
|
Total adjustments |
(30) |
— | |
|
Earnings before interest, income taxes, depreciation and amortization |
109 |
101 | |
ENERGY SERVICES
|
Three months ended | ||||
|
2018 |
2017 | |||
|
(millions of Canadian dollars) |
||||
|
Adjusted earnings/(loss) before interest, income taxes, depreciation and amortization |
22 |
(4) | ||
|
Change in unrealized derivative fair value gain |
147 |
160 | ||
|
Total adjustments |
147 |
160 | ||
|
Earnings before interest, income taxes, depreciation and amortization |
169 |
156 | ||
ELIMINATIONS AND OTHER
|
Three months ended | |||
|
2018 |
2017 | ||
|
(millions of Canadian dollars) |
|||
|
Adjusted loss before interest, income taxes, depreciation and amortization |
(74) |
(88) | |
|
Change in unrealized derivative fair value gain/(loss) |
(136) |
72 | |
|
Unrealized intercompany foreign exchange loss |
(1) |
(8) | |
|
Asset impairment |
(6) |
— | |
|
Transaction costs |
— |
(149) | |
|
Employee severance, transition and transformation costs |
(62) |
(125) | |
|
Total adjustments |
(205) |
(210) | |
|
Loss before interest, income taxes, depreciation and amortization |
(279) |
(298) | |
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATNG ACTIVITIES TO DCF
|
Three months ended | |||
|
2018 |
2017 | ||
|
(millions of Canadian dollars) |
|||
|
Cash provided by operating activities |
3,194 |
1,776 | |
|
Adjusted for changes in operating assets and liabilities |
(622) |
(340) | |
|
2,572 |
1,436 | ||
|
Distributions to noncontrolling interests and redeemable noncontrolling interests |
(293) |
(245) | |
|
Preference share dividends |
(87) |
(83) | |
|
Maintenance capital expenditures1 |
(165) |
(182) | |
|
Significant adjusting items: |
|||
|
Other receipts of cash not recognized in revenue2 |
76 |
47 | |
|
Transaction costs |
— |
152 | |
|
Employee severance, transition and transformation costs |
132 |
127 | |
|
Other items |
77 |
(37) | |
|
Distributable cash flow |
2,312 |
1,215 | |
|
1 |
Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing pipeline system or that are necessary to maintain the service capability of the existing assets (including the replacement of components that are worn, obsolete or completing their useful lives). For the purpose of DCF, maintenance capital excludes expenditures that extend asset useful lives, increase capacities from existing levels or reduce costs to enhance revenues or provide enhancements to the service capability of the existing assets. |
|
2 |
Consists of cash received net of revenue recognized for contracts under make-up rights, contribution in aid of construction and similar deferred revenue arrangements. |
View original content:http://www.prnewswire.com/news-releases/enbridge-inc-reports-first-quarter-2018-results-300646136.html
SOURCE Enbridge Inc.
Article Date
5/10/20185/9/2018 - Enbridge to Sell 49 Percent of its Interests in Select Renewable Power Assets for $1.75 Billion
Enbridge to Sell 49 Percent of its Interests in Select Renewable Power Assets for $1.75 Billion
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, May 9, 2018 /PRNewswire/ - Enbridge Inc. (TSX, NYSE: ENB) (Enbridge or the Company) has entered into agreements with the Canada Pension Plan Investment Board (CPPIB) to monetize a 49 percent interest in select North American onshore renewable power assets, as well as 49 percent of Enbridge's interests in two German offshore wind projects (Hohe See, and related expansion) through a newly created joint venture with CPPIB, for approximately CAD$1.75 billion.
The assets being contributed by Enbridge to the joint venture include all of Enbridge's Canadian renewable power assets, held through Enbridge Income Fund, as well as two U.S. assets, namely the Cedar Point Wind Farm in Colorado and the Silver State North Solar Project in Nevada. Enbridge expects to retain its interests in certain other U.S. renewable power assets, which may be monetized or sold at a later date.
Under the terms of the agreements, CPPIB will fund its 49 percent pro-rata share of the remaining construction capital required to complete the Hohe See projects (offshore Germany), which are scheduled to come into service at the start of 2020. This additional capital commitment is estimated at approximately CAD$0.5 billion, bringing CPPIB's total commitment to approximately CAD$2.25 billion.
Enbridge and its affiliates will continue to manage, operate and provide administrative services for the renewable power assets.
"The monetization of $1.75 billion of renewable assets through our newly formed joint venture with CPPIB is an important step in achieving the objective we set when we rolled out our three-year plan and strategic priorities in December," said Enbridge President and Chief Executive Officer Al Monaco. "This deal makes a significant contribution to our $3 billion asset sales target for the year and will also eliminate $500 million of equity capital requirement that we had previously included in our funding plan. This transaction, in addition to our other funding actions taken since April, accelerates funding for our secured capital program and gives us increased financial flexibility."
Further, Enbridge and CPPIB have entered into an agreement whereby the two parties will form a 50-50 joint venture for the pursuit of future European offshore wind projects. These projects may be in the early development, late development, construction or operational phase.
"We are also very pleased to be partnering with CPPIB in future development of our European offshore wind business, which we believe will have great opportunities for years to come," continued Mr. Monaco. "The combination of our operating and development capability with CPPIB's resources and experience creates a powerful Canadian champion for developing offshore renewable energy projects in Europe."
Each of the North American and German sale agreements is subject to closing adjustments and conditions customary in transactions of this nature. Closing is expected to occur during the third quarter of 2018 subject to the receipt of all necessary regulatory approvals and consents. Enbridge anticipates a minimal amount of cash taxes arising from the sale of these renewable assets.
CIBC Capital Markets acted as exclusive financial adviser and Dentons acted as exclusive legal adviser to Enbridge.
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: the transactions described in this news release (the "Transaction"); the closing of the Transaction and the timing thereof; taxes arising from the Transaction; financial strength and flexibility; equity capital requirements and funding plans; expected costs and in-service dates related to projects; future asset sales or monetizations; expected future actions of regulators; expectations regarding the impact of the Transaction; and future business prospects and performance, including future European offshore wind projects.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the timing and completion of the Transaction, including receipt of regulatory approvals and the satisfaction of other conditions precedent; the realization of anticipated benefits of the Transaction; anticipated costs and in-service dates related to projects; and financial strength and flexibility.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the Transaction and the impact thereof, regulatory parameters, economic and competitive conditions, changes in tax laws and tax rates, exchange rates, interest rates, political decisions and supply of and demand for renewable energy, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. (the Company) is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Suzanne Wilton
Toll Free: (888) 992-0997
Email: suzanne.wilton@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-to-sell-49-percent-of-its-interests-in-select-renewable-power-assets-for-1-75-billion-300645306.html
SOURCE Enbridge Inc.
Article Date
5/9/2018Enbridge Provides Notice of Series F Preferred Shares Conversion Right and Announces Reset Dividend Rates
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, May 2, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series F (Series F Shares) (TSX: ENB.PR.F) on June 1, 2018. As a result, subject to certain conditions, the holders of the Series F Shares have the right to convert all or part of their Series F Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series G of Enbridge (Series G Shares) on June 1, 2018. Holders who do not exercise their right to convert their Series F Shares into Series G Shares will retain their Series F Shares.
The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series F Shares outstanding after June 1, 2018, then all remaining Series F Shares will automatically be converted into Series G Shares on a one-for-one basis on June 1, 2018; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series G Shares outstanding after June 1, 2018, no Series F Shares will be converted into Series G Shares. There are currently 20,000,000 Series F Shares outstanding.
With respect to any Series F Shares that remain outstanding after June 1, 2018, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series F Shares for the five-year period commencing on June 1, 2018 to, but excluding, June 1, 2023 will be 4.689 percent, being equal to the five-year Government of Canada bond yield of 2.179 percent determined as of today plus 2.51 percent in accordance with the terms of the Series F Shares.
With respect to any Series G Shares that may be issued on June 1, 2018, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series G Shares for the three-month floating rate period commencing on June 1, 2018 to, but excluding, September 1, 2018 will be 0.93764 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 1.21 percent plus 2.51 percent in accordance with the terms of the Series G Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.
Beneficial holders of Series F Shares who wish to exercise their right of conversion during the conversion period, which runs from May 2, 2018 until 5:00 p.m. (EST) on May 17, 2018, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.
About Enbridge Inc.
Enbridge Inc. (the Company) is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Suzanne Wilton
Toll Free: (888) 992-0997
Email: suzanne.wilton@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-provides-notice-of-series-f-preferred-shares-conversion-right-and-announces-reset-dividend-rates-300641557.html
SOURCE Enbridge Inc.
Article Date
5/2/2018Enbridge Provides Notice of Series 1 Preferred Shares Conversion Right and Announces Reset Dividend Rates
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, May 2, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series 1 (Series 1 Shares) (TSX: ENB.PR.V) on June 1, 2018. As a result, subject to certain conditions, the holders of the Series 1 Shares have the right to convert all or part of their Series 1 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 2 of Enbridge (Series 2 Shares) on June 1, 2018. Holders who do not exercise their right to convert their Series 1 Shares into Series 2 Shares will retain their Series 1 Shares.
The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series 1 Shares outstanding after June 1, 2018, then all remaining Series 1 Shares will automatically be converted into Series 2 Shares on a one-for-one basis on June 1, 2018; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 2 Shares outstanding after June 1, 2018, no Series 1 Shares will be converted into Series 2 Shares. There are currently 16,000,000 Series 1 Shares outstanding.
With respect to any Series 1 Shares that remain outstanding after June 1, 2018, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series 1 Shares for the five-year period commencing on June 1, 2018 to, but excluding, June 1, 2023 will be 5.9491 percent, being equal to the five-year United States Treasury bond yield of 2.8091 percent determined as of today plus 3.14 percent in accordance with the terms of the Series 1 Shares.
With respect to any Series 2 Shares that may be issued on June 1, 2018, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series 2 Shares for the three-month floating rate period commencing on June 1, 2018 to, but excluding, September 1, 2018 will be 1.25775 percent, based on the annual rate on three month United States Government treasury bills for the most recent treasury bills auction of 1.85 percent plus 3.14 percent in accordance with the terms of the Series 2 Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.
Beneficial holders of Series 1 Shares who wish to exercise their right of conversion during the conversion period, which runs from May 2, 2018 until 5:00 p.m. (EST) on May 17, 2018, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.
About Enbridge Inc.
Enbridge Inc.(the Company) is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Suzanne Wilton
Toll Free: (888) 992-0997
Email: suzanne.wilton@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:http://www.prnewswire.com/news-releases/enbridge-provides-notice-of-series-1-preferred-shares-conversion-right-and-announces-reset-dividend-rates-300641560.html
SOURCE Enbridge Inc.
Article Date
5/2/2018Enbridge Completes Initial Assessment of Recommendations of Minnesota Administrative Law Judge on Line 3 Replacement Project
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
ALJ Acknowledges Need for the Project, but Route Recommendation Ignores State Analysis and Tribal Sovereignty
CALGARY and HOUSTON, April 25, 2018 /PRNewswire/ - After review of the Minnesota Administrative Law Judge (ALJ) recommendation on the Line 3 Replacement Project released earlier this week, Enbridge Inc. (TSX: ENB) (NYSE: ENB) and Enbridge Energy Partners, L.P. (NYSE:EEP) (collectively referred to as Enbridge) commented on the recommendations. The ALJ's recommendations are not binding on the Minnesota Public Utilities Commission (PUC) and Enbridge expects the PUC to vote on the Line 3 Replacement Project in June 2018.
Commenting on the ALJ recommendation, Al Monaco, President & CEO, Enbridge Inc. said: "We are pleased that the ALJ's recommendation clearly confirms the need to replace this critical piece of infrastructure that will enhance safety and environmental protection with the latest in pipeline technology and construction methods. The ALJ recommendation also recognizes the economic importance of a modernized Line 3 that will have significant benefits to businesses and communities across Minnesota.
"That being said, the ALJ's suggestion of an alternative route ignores the extensive record compiled by the State of Minnesota in issuing a comprehensive Environmental Impact Statement that incorporates input from thousands of Minnesotans who are in favor of our proposed route. Most notably, the ALJ's recommended route ignores the longstanding wishes of the Leech Lake Band of Ojibwe that the replacement not be constructed across their reservation."
The ALJ's recommended route (RA-07) would require in-trench replacement of the existing pipeline in the current right-of-way, introducing unnecessary safety, environmental and economic risks. Constructing RA-07 would require lengthy pipeline outages, which would cause extended supply disruptions leading to higher gasoline prices impacting Minnesota and the surrounding region.
Mr. Monaco continued: "From the beginning, we placed a top priority on respecting the views and concerns of communities including Tribal Nations. Our proposed route follows extensive study and is the result of significant input from stakeholders across Minnesota. It acknowledges the legitimate concerns of Tribal Nations, it best protects the environment and it has the overwhelming support of communities. We would like to thank the thousands of Minnesotans representing farmers, small business owners, unions, civic leaders and others for their efforts in support of this critical project."
Enbridge's proposed route has secured easements from landowners for 95% of the right-of-way, and follows existing energy infrastructure corridors for more than 80% of the route. A Final Environmental Impact Statement on the Line 3 project — prepared by the Minnesota Department of Commerce and deemed adequate by the PUC in March 2018 — demonstrates that Enbridge's proposed route is the least impactful to Tribal cultural resources, drinking water and high population areas.
"Coupled with other impacts examined, we believe our preferred route is the optimal solution for Minnesota," said Mr. Monaco. "Given the demonstrated need for Line 3, the benefits of the proposed route, and the substantial negative impacts associated with the ALJ's alternative route, we continue to believe the PUC should approve the replacement of Line 3 as proposed."
About Enbridge Inc.
Enbridge Inc. (the Company) is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Enbridge Energy Partners, L.P.
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil transportation systems in the United States. Its principal crude oil system is the largest pipeline transporter of growing oil production from western Canada and the North Dakota Bakken formation. The system's deliveries to refining centers and connected carriers in the United States account for approximately 23 percent of total U.S. oil imports. Enbridge Energy Partners, L.P. is traded on the New York stock exchange under the symbol EEP; information about the company is available on its website at www.enbridgepartners.com.
Forward-Looking Statements
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Enbridge believes these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to project commencement, construction and completion, project equity investors, operating performance, regulatory parameters, competition, growth, economic conditions, and the renewable energy market. A further discussion of the risks and uncertainties facing Enbridge Inc. and Enbridge Energy Partners, L.P. can be found in their respective filings with Canadian and United States securities regulators. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Editors Please Note: Supplemental information is available on our website:
FOR FURTHER INFORMATION PLEASE CONTACT:
|
Enbridge Inc. |
|
|
Media |
Investment Community |
|
Suzanne Wilton |
Jonathan Gould |
|
Toll Free: (888) 992-0997 |
Toll Free: (800) 481-2804 |
|
Email: suzanne.wilton@enbridge.com |
|
|
Enbridge Energy Partners, L.P. |
|
|
Media |
Investment Community |
|
Michael Barnes |
Roni Cappadonna |
|
Toll Free: (888) 992-0997 |
Toll Free: (800) 481-2804 |
|
Email: michael.barnes@enbridge.com |
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View original content:http://www.prnewswire.com/news-releases/enbridge-completes-initial-assessment-of-recommendations-of-minnesota-administrative-law-judge-on-line-3-replacement-project-300636846.html
SOURCE Enbridge Inc.
Article Date
4/26/20184/24/2018 - Enbridge Declares Quarterly Dividends
Enbridge Declares Quarterly Dividends
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, April 24, 2018 /PRNewswire/ - The Board of Directors for Enbridge Inc. (TSX, NYSE: ENB) has declared a quarterly dividend of $0.671 per common share, payable on June 1, 2018 to shareholders of record on May 15, 2018. The amount of the dividend is consistent with the March 1, 2018 dividend.
The Board also declared the following quarterly dividends for Enbridge Inc. Preferred Shares. All dividends are payable on June 1, 2018 to shareholders of record on May 15, 2018.
|
Common Shares |
$0.67100 |
|
Preference Shares, Series A |
$0.34375 |
|
Preference Shares, Series B |
$0.21340 |
|
Preference Shares, Series C |
$0.22685 |
|
Preference Shares, Series D |
$0.27875 |
|
Preference Shares, Series F |
$0.25000 |
|
Preference Shares, Series H |
$0.25000 |
|
Preference Shares, Series J |
US$0.30540 |
|
Preference Shares, Series L |
US$0.30993 |
|
Preference Shares, Series N |
$0.25000 |
|
Preference Shares, Series P |
$0.25000 |
|
Preference Shares, Series R |
$0.25000 |
|
Preference Shares, Series 1 |
US$0.25000 |
|
Preference Shares, Series 3 |
$0.25000 |
|
Preference Shares, Series 5 |
US$0.27500 |
|
Preference Shares, Series 7 |
$0.27500 |
|
Preference Shares, Series 9 |
$0.27500 |
|
Preference Shares, Series 11 |
$0.27500 |
|
Preference Shares, Series 13 |
$0.27500 |
|
Preference Shares, Series 15 |
$0.27500 |
|
Preference Shares, Series 17 |
$0.321875 |
|
Preference Shares, Series 19 |
$0.30625 |
About Enbridge Inc.
Enbridge Inc. (the Company) is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
|
FOR FURTHER INFORMATION PLEASE CONTACT: | |
|
Media |
Investment Community |
|
Suzanne Wilton |
Jonathan Gould |
|
Toll Free: (888) 992-0997 |
Toll free: (800) 481-2804 |
|
Email: suzanne.wilton@enbridge.com |
|
View original content:http://www.prnewswire.com/news-releases/enbridge-declares-quarterly-dividends-300635905.html
SOURCE Enbridge Inc.
Article Date
4/24/2018Enbridge Inc. does not expect a material consolidated financial impact as a result of FERC Revised Policy Statements
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, March 16, 2018 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB) (NYSE:ENB) today stated that it does not expect a material impact to its previously disclosed financial guidance over the 2018-2020 horizon as a result of the Federal Energy Regulatory Commission (FERC) revised policy statement on interstate pipeline tax allowance recovery in Master Limited Partnerships (MLPs) nor from FERC's Notice of Proposed Rule-Making (NOPR).
Spectra Energy Partners LP (SEP) does not expect any material impact to its financial guidance from the FERC policy actions. Roughly 60% of SEP's gas pipeline revenue comes from negotiated or market-based tariffs and therefore not directly affected by the FERC policy revisions. The remaining 40% of gas pipeline revenue is from cost of service based tariffs which could be subject to tax recovery disallowance. The liquids assets within SEP are predominantly negotiated tariffs and also not materially affected by the policy revisions. SEP anticipates no immediate impact to its current gas pipeline cost of service rates as a result of the revised policy, and therefore, no impact is expected to its previously provided 2018 financial guidance. Any future impacts would only take effect upon the execution and settlement of a rate case. In the event of a rate case, all cost of service framework components would be taken into consideration, which is expected to offset a significant portion of any impacts related to the new FERC policy. Any unmitigated impacts are not anticipated to materially change SEP's distributable cash flow outlook beyond 2018.
Enbridge Energy Partners, L.P. (EEP) derives a portion of its revenue from a Facility Surcharge Mechanism that applies cost of service tariffs which would be impacted by this policy change. As a result of lower tax rates under US Tax Reform, EEP previously guided to a decrease in distributable cash flow (DCF) of $55 million for 2018. This new FERC policy would cause a further decrease to DCF of roughly $80 million on an annual basis, or roughly $60 million on a prorated basis in 2018.
Under the International Joint Toll mechanism, reductions in the EEP tariff will create an offsetting revenue increase on the Canadian Mainline system owned by Enbridge Income Fund Holdings Inc. (ENF). Financial guidance at ENF remains unchanged; however, this could provide a further tailwind for financial results. The combined impact at both EEP and ENF are offsetting for Enbridge on a consolidated basis.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected DCF or DCF per share; expected future cash flows; expected performance of the Company's businesses; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected credit metrics and debt to EBITDA levels; expected costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected impact on cash flows of the Company's commercially secured growth program; expected future growth and expansion opportunities; expectations about the Company's joint venture partners' ability to complete and finance projects under construction; expected closing of acquisitions and dispositions; estimated future dividends; expected outcome of the Minnesota Public Utilities Commission review of the Line 3 Replacement Project; expected future actions of regulators; expectations regarding commodity prices; supply forecasts; expectations regarding the impact of the Merger Transaction including the combined Company's scale, financial flexibility, growth program, future business prospects and performance and streamlining opportunities; expected impact of U.S. Tax Reform; dividend payout policy; and dividend growth and dividend payout expectation.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the realization of anticipated benefits and synergies of the Merger Transaction; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of capital project execution on the Company's future cash flows; credit ratings; capital project funding; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the impact of the Merger Transaction on the Company, expected EBITDA, adjusted EBITDA, earnings/(loss), adjusted earnings/(loss) and associated per share amounts, or estimated future dividends. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the impact of the Merger Transaction, operating performance, regulatory parameters, dividend policy, project approval and support, renewals of rights of way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
|
Media |
Investment Community |
|
Suzanne Wilton |
Jonathan Gould |
|
Toll Free: (888) 992-0997 |
Toll Free: (800) 481-2804 |
|
Email: suzanne.wilton@enbridge.com |
Email: investor.relations@enbridge.com |
SOURCE Enbridge Inc.
Article Date
3/16/2018Enbridge Announces Expiration and Results of Offer by Spectra Energy Capital, LLC to Purchase Notes Due in 2032 and 2038
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, March 7, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that the previously announced all cash tender offer (the Tender Offer) by its wholly-owned subsidiary, Spectra Energy Capital, LLC (Spectra Capital) for any and all of Spectra Capital's outstanding 6.75% senior unsecured notes due 2032 (the 2032 Notes) and 7.50% senior unsecured notes due 2038 (the 2038 Notes, collectively, the Notes) expired at 5:00 p.m. New York City time on March 6, 2018. According to information provided by D.F. King & Co., Inc., the tender and information agent for the Tender Offer, (i) US$64,121,000 aggregate principal amount of the 2032 Notes and (ii) US$42,829,000 aggregate principal amount of the 2038 Notes were validly tendered prior to or at the expiration of the Tender Offer and not validly withdrawn. These amounts include (i) US$96,000 aggregate principal amount of the 2032 Notes and (ii) US$0 aggregate principal amount of the 2038 Notes tendered pursuant to the guaranteed delivery procedures described in the Offer to Purchase, dated February 28, 2018 (the Offer to Purchase). The Tender Offer was made pursuant to the Offer to Purchase. The obligation of Spectra Capital to accept the Notes tendered and to pay the consideration for the Notes is subject to satisfaction or waiver of certain conditions and other terms set forth solely in the Offer to Purchase. If the conditions are met, Spectra Capital expects to pay for such Notes on March 9, 2018.
Holders of the 2032 Notes and the 2038 Notes that validly tendered and did not validly withdraw their 2032 Notes or 2038 Notes, as applicable, prior to the expiration of the Tender Offer will receive total consideration of US$1,244.95 and US$1,344.82, respectively, for each US$1,000 principal amount of 2032 Notes and 2038 Notes tendered and accepted for payment, plus accrued and unpaid interest up to, but not including, March 9, 2018, the expected settlement date of the Tender Offer.
J.P. Morgan Securities LLC is acting as dealer manager for the Tender Offer. D.F. King & Co., Inc. is acting as the tender and information agent for the Tender Offer. Questions regarding the Tender Offer may be directed to: J.P. Morgan Securities LLC at 8668344666 (toll free) or 2128343424. The Offer to Purchase may be accessed at the following link: http://www.dfking.com/spectra or obtained from D.F. King & Co., Inc., free of charge, by calling toll-free at (877) 783-5524 (bankers and brokers can call collect at 212-269-5550).
This news release shall not be construed as an offer to purchase or sell or a solicitation of an offer to purchase or sell any of the Notes or any other securities. Spectra Capital, subject to applicable law, may amend, extend or terminate the Tender Offer and may postpone the acceptance for purchase of, and payment for, the Notes so tendered. The Tender Offer is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. None of Spectra Capital, Enbridge, the dealer managers or the tender and information agent makes any recommendations as to whether holders of the Notes should tender their Notes pursuant to the Tender Offer.
Forward-Looking Statements
Forward-looking information, or forward-looking statements, has been included in this news release to provide information about the Company and its subsidiaries (including Spectra Capital). Forward-looking statements are typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included in this news release include, but are not limited to, the settlement date of the Tender Offer.
Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of assumptions, risks and uncertainties pertaining, but not limited to, financial strength and flexibility; debt and equity market conditions; economic and competitive conditions; and exchange, inflation and interest rates. A further discussion of the risks and uncertainties facing the Company can be found in the Company's filings with United States and Canadian securities regulators. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, the Company assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
For more information please contact:
Media
Suzanne Wilton
Toll Free: (888) 992-0997
suzanne.wilton@enbridge.com
Investment Community
Jonathan Gould
Toll free: (800) 481-2804
investor.relations@enbridge.com
SOURCE Enbridge Inc.
Article Date
3/7/2018Enbridge Announces Pricing of Offer by Spectra Energy Capital, LLC to Purchase Notes Due in 2032 and 2038
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, March 6, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today the consideration to be paid in the previously announced all cash tender offer (the Tender Offer) by its wholly-owned subsidiary, Spectra Energy Capital, LLC (Spectra Capital) for any and all of Spectra Capital's outstanding 6.75% senior unsecured notes due 2032 (the 2032 Notes) and 7.50% senior unsecured notes due 2038 (the 2038 Notes, collectively, the Notes). The Offer will expire at 5:00 p.m. New York City time, today, March 6, 2018, unless extended.
The applicable reference yield, repurchase yield and total consideration for the Notes are detailed in the table below:
|
Security |
Initial Principal |
U.S. |
Reference |
Fixed |
Repurchase |
Total |
|
6.75% senior |
US$166,975,000 |
2.75% UST |
3.132% |
+125 |
4.382% |
US$1,244.95 |
|
7.50% senior |
US$112,509,000 |
2.75% UST |
3.132% |
+170 |
4.832% |
US$1,344.82 |
Upon consummation of the Tender Offer, Spectra Capital will pay total consideration of US$1,244.95 and US$1,344.82, respectively, for each US$1,000 principal amount of 2032 Notes and 2038 Notes tendered and accepted for payment, plus accrued and unpaid interest up to, but not including, March 9, 2018 (the expected settlement date), under the Tender Offer. The total consideration was calculated in the manner described in the Offer to Purchase, dated February 28, 2018 (the Offer to Purchase), by reference to a fixed spread specified in the table above plus the yield to maturity based on the bid-side price of the applicable U.S. Treasury Reference Security specified in the table above at 11:00 a.m. New York City time on March 6, 2018.
To receive such consideration, holders of Notes must validly tender and not validly withdraw their Notes or timely comply with the guaranteed delivery procedures set forth in the Offer to Purchase prior to the expiration of the Tender Offer. Notes tendered may be withdrawn at any time prior to the expiration of the Tender Offer, by following the procedures described in the Offer to Purchase. Holders of Notes are urged to read the Offer to Purchase carefully before making any decision with respect to the Tender Offer.
J.P. Morgan Securities LLC is acting as dealer manager for the Offer. D.F. King & Co., Inc. is acting as the tender and information agent for the Offer. Questions regarding the Tender Offer may be directed to: J.P. Morgan Securities LLC at 866-834-4666 (toll free) or 212-834-3424. The Offer to Purchase and the notice of guaranteed delivery being provided in connection with the Notes may be accessed at the following link: http://www.dfking.com/spectra or obtained from D.F. King & Co., Inc., free of charge, by calling toll-free at (877) 783-5524 (bankers and brokers can call collect at 212-269-5550).
The obligation of Spectra Capital to accept for purchase and to pay the Total Consideration and the accrued and unpaid interest on Notes purchased pursuant to the Tender Offer is not subject to any minimum tender condition, but is subject to satisfaction or waiver of certain other conditions described in the Offer to Purchase.
This news release shall not be construed as an offer to purchase or sell or a solicitation of an offer to purchase or sell any of the Notes or any other securities. Spectra Capital, subject to applicable law, may amend, extend or terminate the Tender Offer and may postpone the acceptance for purchase of, and payment for, the Notes so tendered. The Tender Offer is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. None of Spectra Capital, Enbridge, the dealer managers, the information agent or the depositary makes any recommendations as to whether holders of the Notes should tender their Notes pursuant to the Tender Offer.
Forward-Looking Statements
Forward-looking information, or forward-looking statements, has been included in this news release to provide information about the Company and its subsidiaries (including Spectra Capital). Forward-looking statements are typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included in this news release include, but are not limited to, the expiration and settlement date of the Tender Offer and the date up to which tendered Notes can be withdrawn.
Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of assumptions, risks and uncertainties pertaining, but not limited to, the completion of the Tender Offer; financial strength and flexibility; debt and equity market conditions; economic and competitive conditions; and exchange, inflation and interest rates. A further discussion of the risks and uncertainties facing the Company can be found in the Company's filings with United States and Canadian securities regulators. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, the Company assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
For more information please contact:
Media
Suzanne Wilton
Toll Free: (888) 992-0997
suzanne.wilton@enbridge.com
Investment Community
Jonathan Gould
Toll free: (800) 481-2804
investor.relations@enbridge.com
SOURCE Enbridge Inc.
Article Date
3/6/2018Enbridge Announces Offer by Spectra Energy Capital, LLC to Purchase Debt Securities
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, Feb. 28, 2018 /PRNewswire/ - Enbridge Inc. (TSX:ENB)(NYSE:ENB) (Enbridge or the Company), announced today the commencement of an any and all cash tender offer by its wholly-owned subsidiary, Spectra Energy Capital, LLC (Spectra Capital), for certain debt securities of Spectra Capital (the Tender Offer). The Tender Offer consists of offers to purchase for cash the 6.75% senior unsecured notes due 2032 and the 7.50% senior unsecured notes due 2038 issued by Spectra Capital (collectively the Notes).
The Tender Offer is summarized in the table below and is being made pursuant to an Offer to Purchase dated February 28, 2018 (the Offer to Purchase), which sets forth a more detailed description of the Tender Offer and can be accessed at the link below.
Any and All of the US$279,484,000 in Principal Amount of the Outstanding Securities Listed Below:
|
Security (CUSIP No.) |
Principal Amount Outstanding |
U.S. Treasury Reference Security |
Bloomberg Reference Page |
Fixed Spread |
|
6.75% senior unsecured notes due 2032 (26439RAK2) |
US$166,975,000 |
2.75% UST due 11/15/2047 |
FIT1 |
+125 bps |
|
7.50% senior unsecured notes due 2038 (84755TAC1) |
US$112,509,000 |
2.75% UST due 11/15/2047 |
FIT1 |
+170 bps |
The Tender Offer will expire at 5:00 p.m. New York City time on March 6, 2018, unless extended or earlier terminated (the Expiration Date). Holders of the Notes must validly tender and not validly withdraw their Notes prior to or at the Expiration Date to be eligible to receive the Total Consideration (as defined below) for such Notes.
The applicable consideration (the Total Consideration) payable for each US$1,000 principal amount of Notes of each series validly tendered and accepted for payment pursuant to the Tender Offer will be determined in the manner described in the Offer to Purchase by reference to the applicable fixed spread for such Note (the Fixed Spread) specified in the table above plus the applicable yield to maturity based on the bidside price of the applicable U.S. Treasury Notes specified in the applicable table above, calculated as of 11:00 a.m. New York City time on March 6, 2018 unless extended or terminated earlier. In addition to the Total Consideration, Spectra Capital will also pay accrued and unpaid interest on Notes purchased up to, but not including, the settlement date. The settlement date for the Tender Offer is expected to be promptly after the expiration of the Tender Offer, and is expected to be March 9, 2018.
The Notes may be validly withdrawn at any time prior to or at 5:00 p.m. New York City time on March 6, 2018, unless such date and time is extended or earlier terminated by Spectra Capital, but not thereafter.
The obligation of Spectra Capital to accept for purchase and to pay the Total Consideration and the accrued and unpaid interest on Notes purchased pursuant to the Tender Offer is not subject to any minimum tender condition, but is subject to satisfaction or waiver of certain other conditions described in the Offer to Purchase.
Spectra Capital has retained J.P. Morgan Securities LLC to serve as the dealer manager for the Tender Offer. D.F. King & Co., Inc. has been retained to serve as the information agent and the depositary for the Tender Offer.
Holders of the Notes are urged to carefully read the Offer to Purchase before making any decision with respect to the Tender Offer.
Questions regarding the Tender Offer may be directed to: J.P. Morgan Securities LLC at 866-834-4666 (toll free) or 212-834-3424. The Offer to Purchase and the notice of guaranteed delivery being provided in connection with the Notes may be accessed at the following link: http://www.dfking.com/spectra or obtained from D.F. King & Co., Inc., free of charge, by calling toll-free at (877) 783-5524 (bankers and brokers can call collect at 212-269-5550).
On February 22, 2018, Spectra Capital delivered notice to holders of its 5.65% senior unsecured notes due 2020, of which approximately US$163 million in principal is outstanding, and its 3.30% senior unsecured notes due 2023, of which approximately US$498 million in principal is outstanding, that it intends to redeem such series of notes in full. Spectra Capital expects to complete such redemptions on or about March 27, 2018. Spectra Capital's two other remaining series of notes are due in April and July of 2018 and Spectra Capital intends to repay the approximately US$390 million in principal that is outstanding on such notes upon maturity. Enbridge's intention remains to not issue any further public securities from Spectra Capital. In addition, financial statements for Spectra Energy Corp, the guarantor of the Notes, will not be published or available to holders of the Notes.
This news release shall not be construed as an offer to purchase or sell or a solicitation of an offer to purchase or sell any of the Notes or any other securities. Spectra Capital, subject to applicable law, may amend, extend or terminate the Tender Offer and may postpone the acceptance for purchase of, and payment for, the Notes so tendered. The Tender Offer is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. None of Spectra Capital, Enbridge, the dealer manager, the information agent or the depositary makes any recommendations as to whether holders of the Notes should tender their Notes pursuant to the Tender Offer.
Forward-Looking Statements Forward-looking information, or forward-looking statements, has been included in this news release to provide information about the Company and its subsidiaries (including Spectra Capital). Forward-looking statements are typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included in this news release include, but are not limited to, the expiration and settlement date of the Tender Offer, the date up to which tendered Notes can be withdrawn, the completion of the redemption of certain notes, the repayment of certain notes upon maturity and Enbridge's intention not to issue any further public securities from Spectra Capital.
Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of assumptions, risks and uncertainties pertaining, but not limited to, the completion of the Tender Offer; financial strength and flexibility; debt and equity market conditions; economic and competitive conditions; and exchange, inflation and interest rates. A further discussion of the risks and uncertainties facing the Company can be found in the Company's filings with United States and Canadian securities regulators. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, the Company assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past eight years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
For more information please contact:
Media
Suzanne Wilton
Toll Free: (888) 992-0997
suzanne.wilton@enbridge.com
Investment Community
Jonathan Gould
Toll free: (800) 481-2804
investor.relations@enbridge.com
SOURCE Enbridge Inc.
Article Date
2/28/2018Enbridge Inc. Reports Fourth Quarter 2017 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, Feb. 16, 2018 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB) (NYSE:ENB) today reported fourth quarter 2017 financial results and provided a quarterly business update.
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
CEO COMMENT
"This has been a transformational year for our company," commented Al Monaco, President and Chief Executive Officer of Enbridge. "With the Spectra Energy assets now in the fold, we have successfully delivered on our strategy to re-balance our business mix with best in class natural gas transmission assets and further enhance and extend our growth potential. We've substantially integrated the two companies and are slightly ahead of target for capturing cost synergies as we streamline operations and create an even more effective and efficient organization.
"In addition to the merger, we significantly added to our leading infrastructure footprint, bringing a total of $12 billion of new assets into service, substantially on time and on budget. This marks the single largest year for project completion in our history and these assets will provide growing and predictable cash flows to support our premium dividend growth.
"Our full year financial results came in roughly where we expected and within our DCF/share guidance range. However, as we had previously identified, the timing of the closing of the merger, customer project delays and facility outages, and a weak commodity price environment affecting the gas midstream and energy services businesses impacted our full year results.
"Fourth quarter results were strong and demonstrate the earnings power of our core businesses. Liquids Pipelines volumes reached record levels in December and the demand outlook remains robust into 2018 as WCSB crude production volumes continue to rise. Our Gas Transmission business delivered another rock solid quarter with steady volumes and new projects in service, and the Gas Distribution businesses continued to have strong rate base growth within their franchises. Importantly, we accomplished all of this while maintaining our leading operational safety and reliability performance.
"We also made good progress on our priority to strengthen the balance sheet as we build out our secured growth program, raising about $5 billion of equity or equity equivalent funding during the year. And we have a readily executable plan to achieve our longer term leverage targets by the end of 2018.
"Looking forward, with our updated strategic and financial plan, we've set a course for the next three years that reflects the right combination of capital discipline while deleveraging the balance sheet and maintaining ample funding flexibility for our $22 billion secured project inventory. We continue to see a significant opportunity set for new low risk growth in our core footprint beyond the 2020 horizon.
"We accomplished several important milestones in 2017 and we are well positioned heading into 2018 and beyond."
FINANCIAL RESULTS SUMMARY
Financial results for the three and twelve months ended December 31, 2017, are summarized in the table below:
|
Three months ended |
Year ended | ||||||
|
2017 |
2016 |
2017 |
2016 | ||||
|
(millions of Canadian dollars, except per share amounts; number of |
|||||||
|
Earnings |
207 |
365 |
2,529 |
1,776 | |||
|
Earnings per common share |
0.13 |
0.39 |
1.66 |
1.95 | |||
|
Cash provided by operating activities |
1,341 |
1,058 |
6,584 |
5,211 | |||
|
Adjusted EBITDA1 |
2,963 |
1,762 |
10,317 |
6,902 | |||
|
Adjusted Earnings1 |
1,013 |
522 |
2,982 |
2,078 | |||
|
Adjusted Earnings per common share1 |
0.61 |
0.56 |
1.96 |
2.28 | |||
|
Distributable Cash Flow1,2 |
1,741 |
879 |
5,614 |
3,713 | |||
|
Weighted average common shares outstanding |
1,652 |
927 |
1,525 |
911 | |||
|
1 Schedules reconciling adjusted EBITDA, adjusted earnings, adjusted earnings per common share and distributable cash flow | |||||||
|
2 Formerly referred to as Adjusted Cash Flow From Operations (ACFFO). Calculation methodology remains unchanged. | |||||||
Earnings attributable to common shareholders for the year ended December 31, 2017 increased by $753 million relative to 2016, primarily as a result of the Merger Transaction. Earnings for the fourth quarter of 2017 decreased by $158 million relative to the comparable period in 2016. The year-over-year and fourth quarter-over-quarter comparability of earnings attributable to common shareholders was impacted by certain unusual and infrequent factors, including a non-cash accounting charge resulting from the write down of assets held for sale of $2.8 billion after tax, partially offset by a non-cash accounting benefit resulting from U.S. Tax Reform of $2.0 billion.
Adjusted earnings growth for the fourth quarter and full year 2017 benefited from the net effect of higher contributions from Enbridge's new natural gas, liquids and utility assets. Also contributing to earnings growth was stronger crude oil throughput on the Mainline system, new projects coming into service in the Liquids Pipelines, Gas Transmission & Midstream and Gas Distribution segments, and stronger realized settlements on foreign exchange hedges. These positive contributors were partially offset by lower natural gas gathering and processing volumes and margins on certain U.S. midstream assets and weaker performance in the Energy Services segment.
DCF for the fourth quarter was $1,741 million, an increase of $862 million over the comparable prior period in 2016, driven largely by the same factors noted above.
PROJECT EXECUTION UPDATE
Enbridge continues to make good progress executing on its secured growth capital program. These projects are supported by long-term take-or-pay contracts, cost-of-service frameworks or similar low-risk commercial arrangements and are diversified across a wide range of business platforms and regulatory jurisdictions.
In 2017, $12 billion of commercially secured projects were brought into service, substantially on time and on budget. This execution success highlights Enbridge's strong project management capability and its commitment to managing all critical stakeholder relationships. These projects meaningfully contributed to DCF growth in 2017, with full contributions expected in 2018 and 2019 as contracted capacity ramps up on certain projects and all contribute a full year of earnings and cash flow.
Enbridge is also advancing the remaining $22 billion secured growth project inventory. Construction has commenced on the US$1.3 billion NEXUS gas pipeline and is expected to be in service in the third quarter of 2018. Construction on the US$1.5 billion Valley Crossing pipeline in Texas is progressing well and remains on schedule for a fourth quarter 2018 in service date. The $0.8 billion Rampion offshore wind power generation project in the United Kingdom has begun generating power and full operations are expected in the first half of 2018 as the remaining turbines are connected to the grid.
Following the receipt of all required regulatory permitting for the Line 3 Replacement in Canada, construction began in August 2017 on certain segments of the pipeline and construction will continue through the winter. Regulatory permitting is also in place in North Dakota as well as in Wisconsin where construction is substantially complete.
In Minnesota, the MPUC is expected to vote on the Certificate of Need and Route Permit at the end of the second quarter of 2018. In parallel with this process, additional clarification and analysis will be provided to support the adequacy of the Final Environmental Impact Statement, as requested by the MPUC in December. Management continues to anticipate an in-service date for the project in the second half of 2019.
STRATEGIC & FINANCIAL UPDATE
On November 29th, Enbridge released the details of its updated strategic business plan. The strategic planning process included a review of all existing businesses post-Merger Transaction. The conclusion reached was to focus Enbridge's asset mix to a pure regulated pipeline and utility business model over time, which emphasizes low risk and strong growth in its three crown jewel businesses: liquids pipelines and terminals, natural gas transmission and storage and natural gas utilities. This focused approach will result in disciplined capital allocation for growth projects and additional non-core asset sales.
The Company also provided details on its secured funding plan designed to fund Enbridge's secured growth program while deleveraging the balance sheet. The plan achieves strong, investment grade credit metrics throughout the three-year period, with the Company's Debt to EBITDA metric expected to reach 5.0x by the end of 2018, and remaining below this long term target level going forward.
In 2017, close to $14 billion of new long term capital was raised across the Enbridge group, of which $5 billion was equity or equity equivalent funding. The 2018 funding plan includes the issuance of $3.5 billion of hybrid securities and sale or monetization of at least $3.0 billion of non-core assets in 2018. The remaining equity funding requirement can readily be met through a combination of additional hybrid equity, asset monetization or issuances of common shares under the Company's DRIP program.
Enbridge made good progress in 2017 with its strategic priority to restructure and simplify the organization by taking several sponsored vehicle actions, including: the Enbridge Energy Partners, L.P. (EEP) restructuring, Midcoast Energy privatization, DCP Midstream simplification and Spectra Energy Partners, LP (SEP) incentive distribution elimination. Enbridge plan to continue to identify and evaluate further streamlining opportunities as appropriate.
U.S. TAX REFORM
On December 22, 2017, the United States implemented U.S. Tax Reform. The "Tax Cuts and Jobs Act" (the TCJA) was signed into law and became enacted for tax purposes. Substantially all of the provisions of the TCJA are effective for taxation years beginning after December 31, 2017. The most significant change included in the TCJA with respect to Enbridge's 2017 financial statements was a reduction in the corporate federal income tax rate from 35% to 21%. This resulted in the Company booking a $2.0 billion reduction to its deferred income tax provision for the year, which has been normalized for adjusted earnings purposes. The reduced tax rate will benefit the Company's DCF once it becomes subject to U.S. current tax in the future.
While certain elements of the TCJA require clarification through more detailed regulation or interpretive guidance, Enbridge does not expect any material impact to consolidated DCF over the plan horizon.
US Tax Reform impacts arising from commercial arrangements at the Company's sponsored vehicles are not expected to be significant over the 2018-2020 plan horizon. The Company estimates that EEP will realize a reduction in the income tax allowance component of its cost of service toll revenue of approximately US$55 million per year. Enbridge Income Fund would expect to realize the offsetting gain to annual revenue due to the nature of the sharing of the International Joint Toll on the Mainline system. While SEP has a portion of its revenue derived from cost of service assets, any revenue loss associated with the change in tax rate is expected to be immaterial in the event of a future rate case where many other factors would be considered.
FOURTH QUARTER AND YEAR-END 2017 FINANCIAL RESULTS
The following table includes the Company's GAAP reported results for segment EBITDA, earnings attributable to common shareholders, and cash provided by operating activities for the fourth quarter and full year 2017.
EBITDA AND CASH FLOW FROM OPERATIONS
|
Three months ended |
Year ended | ||||
|
2017 |
2016 |
2017 |
2016 | ||
|
(millions of Canadian dollars) |
|||||
|
Liquids Pipelines |
1,555 |
1,733 |
6,395 |
4,926 | |
|
Gas Transmission and Midstream |
(3,532) |
95 |
(1,269) |
464 | |
|
Gas Distribution |
453 |
238 |
1,390 |
831 | |
|
Green Power and Transmission |
102 |
78 |
372 |
344 | |
|
Energy Services |
(252) |
(146) |
(263) |
(183) | |
|
Eliminations and Other |
(149) |
(207) |
(337) |
(101) | |
|
Earnings/(loss) before interest, income taxes, |
(1,823) |
1,791 |
6,288 |
6,281 | |
|
Earnings |
207 |
365 |
2,529 |
1,776 | |
|
Cash provided by operating activities |
1,341 |
1,058 |
6,584 |
5,211 | |
For purposes of evaluating performance the Company makes adjustments for unusual, non-recurring or non-operating factors to GAAP reported earnings, segment EBITDA, and cash flow provided by operating activities, as it allows Management and investors to more accurately compare the Company's performance across periods and the factors being adjusted for are not indicative of the underlying performance and cash flows of the business. These tables follow below. Schedules reconciling adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per common share and distributable cash flow to their closest GAAP equivalent are available as an Appendix to this news release.
DISTRIBUTABLE CASH FLOW
|
Three months ended |
Year ended | ||||
|
2017 |
2016 |
2017 |
2016 | ||
|
(unaudited, millions of Canadian dollars, except per share amounts) |
|||||
|
Liquids Pipelines |
1,482 |
1,355 |
5,484 |
5,327 | |
|
Gas Transmission and Midstream |
1,020 |
166 |
3,350 |
659 | |
|
Gas Distribution |
450 |
238 |
1,379 |
833 | |
|
Green Power and Transmission |
109 |
91 |
379 |
355 | |
|
Energy Services |
(21) |
(4) |
(52) |
30 | |
|
Eliminations and Other |
(77) |
(84) |
(223) |
(302) | |
|
Adjusted EBITDA1 |
2,963 |
1,762 |
10,317 |
6,902 | |
|
Maintenance Capital |
(345) |
(205) |
(1,261) |
(671) | |
|
Interest expense1 |
(665) |
(403) |
(2,421) |
(1,545) | |
|
Current income tax1 |
(49) |
(31) |
(154) |
(92) | |
|
Distributions to noncontrolling interests and |
(272) |
(236) |
(1,042) |
(922) | |
|
Cash distributions in excess of equity earnings1 |
118 |
67 |
279 |
183 | |
|
Preference share dividends |
(84) |
(76) |
(330) |
(293) | |
|
Other receipts of cash not recognized in revenue2 |
25 |
37 |
196 |
119 | |
|
Other non-cash adjustments |
50 |
(36) |
30 |
32 | |
|
Distributable cash flow |
1,741 |
879 |
5,614 |
3,713 | |
|
Weighted average common shares outstanding |
1,652 |
927 |
1,525 |
911 | |
|
1 |
Presented net of adjusting items. |
|
2 |
Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
ADJUSTED EARNINGS
|
Three months |
Year ended | |||||
|
2017 |
2016 |
2017 |
2016 | |||
|
(unaudited, millions of Canadian dollars, except per share amounts) |
||||||
|
Adjusted EBITDA |
2,963 |
1,762 |
10,317 |
6,902 | ||
|
Depreciation and amortization expense |
(764) |
(564) |
(3,152) |
(2,240) | ||
|
Interest expense |
(638) |
(403) |
(2,305) |
(1,545) | ||
|
Income taxes |
(252) |
(136) |
(805) |
(520) | ||
|
Noncontrolling interests and redeemable noncontrolling interests |
(212) |
(61) |
(743) |
(226) | ||
|
Preference share dividends |
(84) |
(76) |
(330) |
(293) | ||
|
Adjusted earnings |
1,013 |
522 |
2,982 |
2,078 | ||
|
Adjusted earnings per common share |
0.61 |
0.56 |
1.96 |
2.28 | ||
ADJUSTED EBITDA BY SEGMENTS
The following adjusted EBITDA by segment is reported on a Canadian dollar basis. Adjusted EBITDA generated from US dollar denominated businesses were translated at stronger average Canadian dollar exchange rates both in the fourth quarter and full year 2017 when compared to the corresponding 2016 periods negatively impacting results. A portion of the US dollar earnings are hedged under the Company's enterprise-wide financial risk management program. The offsetting hedge settlements are reported within Eliminations and Other.
LIQUIDS PIPELINES
|
Three months ended |
Year ended | ||||
|
2017 |
2016 |
2017 |
2016 | ||
|
(millions of Canadian dollars) |
|||||
|
Canadian Mainline |
367 |
318 |
1,342 |
1,240 | |
|
Lakehead System |
441 |
507 |
1,786 |
1,905 | |
|
Regional Oil Sands System |
182 |
129 |
600 |
510 | |
|
Gulf Coast and Mid-Continent |
200 |
188 |
681 |
800 | |
|
Other1 |
292 |
213 |
1,075 |
872 | |
|
Adjusted EBITDA2 |
1,482 |
1,355 |
5,484 |
5,327 | |
|
Operating Data (average deliveries – thousands of bpd) |
|||||
|
Canadian Mainline3 |
2,586 |
2,481 |
2,530 |
2,405 | |
|
Lakehead System4 |
2,724 |
2,624 |
2,673 |
2,574 | |
|
Regional Oil Sands System5 |
1,392 |
1,197 |
1,301 |
1,032 | |
|
International Joint Tariff |
4.07 |
4.05 |
4.06 |
4.06 | |
|
Lakehead System Local Toll |
2.43 |
2.58 |
2.47 |
2.55 | |
|
Canadian Mainline IJT Residual Toll |
1.64 |
1.47 |
1.59 |
1.51 | |
|
Canadian Mainline Apportionment |
10% |
21% |
20% |
13% | |
|
Canadian Mainline Effective FX Rate |
$1.07 |
$1.06 |
$1.06 |
$1.07 | |
|
1 |
Included within Other are Southern Lights Pipeline, Express-Platte System, Bakken System and Feeder Pipelines & Other |
|
2 |
Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
|
3 |
Canadian Mainline throughput volume represents mainline system deliveries ex-Gretna, Manitoba which is made up of United States and eastern Canada deliveries originating from western Canada |
|
4 |
Lakehead System throughput volume represents mainline system deliveries to the United States mid-west and eastern Canada |
|
5 |
Volumes are for the Athabasca mainline, Athabasca Twin, Waupisoo Pipeline and Woodland Pipeline and exclude laterals on the Regional Oil Sands System |
Liquids Pipelines adjusted EBITDA increased by $127 million and $157 million for the fourth quarter and full year 2017, respectively, compared to the same periods in 2016. The key period-over-period performance drivers were as follows:
GAS TRANSMISSION AND MIDSTREAM
|
Three months ended |
Year ended | ||||
|
2017 |
2016 |
2017 |
2016 | ||
|
(millions of Canadian dollars) |
|||||
|
US Gas Transmission |
650 |
10 |
2,215 |
31 | |
|
Canadian Gas Transmission & Midstream |
196 |
41 |
575 |
142 | |
|
Alliance Pipeline |
56 |
40 |
205 |
184 | |
|
US Midstream |
69 |
48 |
218 |
207 | |
|
Other |
49 |
27 |
137 |
95 | |
|
Adjusted EBITDA1 |
1,020 |
166 |
3,350 |
659 | |
|
1 Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Gas Transmission and Midstream adjusted EBITDA increased by $854 million and $2,691 million for the fourth quarter and full year 2017, respectively, compared to the same periods in 2016. The key period-over-period performance drivers were as follows:
GAS DISTRIBUTION
|
Three months ended |
Year ended | ||||||
|
2017 |
2016 |
2017 |
2016 | ||||
|
(millions of Canadian dollars) |
|||||||
|
Enbridge Gas Distribution Inc. (EGD) |
201 |
199 |
701 |
709 | |||
|
Union Gas Limited (Union Gas) |
208 |
— |
551 |
— | |||
|
Other Gas Distribution and Storage |
41 |
39 |
127 |
124 | |||
|
Adjusted EBITDA1 |
450 |
238 |
1,379 |
833 | |||
|
Operating Data |
|||||||
|
Enbridge Gas Distribution |
|||||||
|
Volumes (billions of cubic feet) |
135 |
119 |
421 |
414 | |||
|
Number of active customers (thousands)3 |
2,190 |
2,158 |
2,190 |
2,158 | |||
|
Heating degree days4 |
|||||||
|
Actual |
1,285 |
1,129 |
3,499 |
3,412 | |||
|
Forecast based on normal weather |
1,226 |
1,243 |
3,639 |
3,617 | |||
|
Union Gas2 |
|||||||
|
Volumes (billions of cubic feet) |
370 |
— |
944 |
— | |||
|
Number of active customers (thousands)3 |
1,475 |
— |
1,475 |
— | |||
|
Heating degree days4, 2 |
|||||||
|
Actual |
1,433 |
— |
2,688 |
— | |||
|
Forecast based on normal weather |
1,377 |
— |
2,636 |
— | |||
|
1 |
Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
|
2 |
Reflects operating data post-Spectra Merger. |
|
3 |
Number of active customers is the number of EGD and Union Gas customers at the end of the period. |
|
4 |
Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in EGD's and Union Gas's franchise area. It is calculated by accumulating, for the fiscal period, the total number of degrees each day by which the daily mean temperature falls below 18 degrees Celsius. |
Gas Distribution adjusted EBITDA increased by $212 million and $546 million for the fourth quarter and full year 2017, respectively, compared to the same periods in 2016. The key period-over-period performance drivers were as follows:
GREEN POWER AND TRANSMISSION
|
Three months ended |
Year ended | ||||
|
2017 |
2016 |
2017 |
2016 | ||
|
(millions of Canadian dollars) |
|||||
|
Adjusted EBITDA1 |
109 |
91 |
379 |
355 | |
|
1 Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Green Power & Transmission adjusted EBITDA increased by $18 million and $24 million in the fourth quarter and full year 2017, respectively, compared to the same periods in 2016. The key period-over-period performance drivers were as follows:
ENERGY SERVICES
|
Three months ended |
Year ended | ||||
|
2017 |
2016 |
2017 |
2016 | ||
|
(millions of Canadian dollars) |
|||||
|
Adjusted earnings/(loss) before interest, income taxes, |
(21) |
(4) |
(52) |
30 | |
|
1 Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Energy Services adjusted loss before interest, income taxes, depreciation and amortization increased by $17 million and $82 million, respectively, for the fourth quarter and full year 2017 when compared to the same periods in 2016. The key period-over-period performance drivers were as follows:
ELIMINATIONS AND OTHER
|
Three months ended |
Year ended | ||||
|
2017 |
2016 |
2017 |
2016 | ||
|
(millions of Canadian dollars) |
|||||
|
Operating and administrative |
(52) |
(8) |
(39) |
(5) | |
|
Realized foreign exchange hedge settlements |
(25) |
(76) |
(184) |
(297) | |
|
Adjusted loss before interest, income taxes, |
(77) |
(84) |
(223) |
(302) | |
|
1 Schedules reconciling adjusted EBITDA are available as an Appendix to this news release. |
Eliminations and Other adjusted loss before interest, income taxes, depreciation and amortization decreased by $7 million and $79 million for the fourth quarter and full year 2017, respectively, when compared to the same periods in 2016. The key period-over-period performance drivers were as follows:
CONFERENCE CALL
Enbridge will host a joint conference call and webcast on February 16, 2018 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) with Enbridge Income Fund Holdings Inc., Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP to provide an enterprise wide business update and review 2017 fourth quarter and year end financial results. Analysts, members of the media and other interested parties can access the call toll free at (877) 930-8043 or within and outside North America at (253) 336-7522 using the access code of 4939158#. The call will be audio webcast live at https://edge.media-server.com/m6/p/rudushbf. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available for seven days after the call toll-free (855) 859-2056 or within and outside North America at (404) 537-3406 (access code 4939158#).
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected DCF or DCF per share; expected future cash flows; expected performance of the Company's businesses; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected credit metrics and debt to EBITDA levels; expected costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected impact on cash flows of the Company's commercially secured growth program; expected future growth and expansion opportunities; expectations about the Company's joint venture partners' ability to complete and finance projects under construction; expected closing of acquisitions and dispositions; estimated future dividends; expected outcome of the Minnesota Public Utilities Commission review of the Line 3 Replacement Project; expected future actions of regulators; expectations regarding commodity prices; supply forecasts; expectations regarding the impact of the Merger Transaction including the combined Company's scale, financial flexibility, growth program, future business prospects and performance and streamlining opportunities; expected impact of U.S. Tax Reform; dividend payout policy; and dividend growth and dividend payout expectation.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; weather; the realization of anticipated benefits and synergies of the Merger Transaction; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of capital project execution on the Company's future cash flows; credit ratings; capital project funding; expected EBITDA or expected adjusted EBITDA; expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to the impact of the Merger Transaction on the Company, expected EBITDA, adjusted EBITDA, earnings/(loss), adjusted earnings/(loss) and associated per share amounts, or estimated future dividends. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the impact of the Merger Transaction, operating performance, regulatory parameters, dividend policy, project approval and support, renewals of rights of way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
ABOUT ENBRIDGE INC.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past eight years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise part of this news release.
DIVIDEND DECLARATION
Our Board of Directors has declared the following quarterly dividends. All dividends are payable on March 1, 2018 to shareholders of record on February 15, 2018.
|
Common Shares |
0.67100 | |||
|
Preference Shares, Series A |
0.34375 | |||
|
Preference Shares, Series B1 |
0.21340 | |||
|
Preference Shares, Series C2 |
0.20342 | |||
|
Preference Shares, Series D |
0.25000 | |||
|
Preference Shares, Series F |
0.25000 | |||
|
Preference Shares, Series H |
0.25000 | |||
|
Preference Shares, Series J3 |
US$0.30540 | |||
|
Preference Shares, Series L4 |
US$0.30993 | |||
|
Preference Shares, Series N |
0.25000 | |||
|
Preference Shares, Series P |
0.25000 | |||
|
Preference Shares, Series R |
0.25000 | |||
|
Preference Shares, Series 1 |
US$0.25000 | |||
|
Preference Shares, Series 3 |
0.25000 | |||
|
Preference Shares, Series 5 |
US$0.27500 | |||
|
Preference Shares, Series 7 |
0.27500 | |||
|
Preference Shares, Series 9 |
0.27500 | |||
|
Preference Shares, Series 11 |
0.27500 | |||
|
Preference Shares, Series 13 |
0.27500 | |||
|
Preference Shares, Series 15 |
0.27500 | |||
|
Preference Shares, Series 17 |
0.32188 | |||
|
Preference Shares, Series 19 |
0.26850 | |||
|
1 |
The quarterly dividend amount of Series B was decreased to $0.21340 from $0.25000 on June 1, 2017, due to the reset of the annual dividend rate on every fifth anniversary of the date of issuance of the Series B Preference Shares. | |
|
2 |
The quarterly dividend amount of Series C was set at $0.18600 on June 1, 2017, $0.19571 on September 1, 2017 and $0.20342 on December 1, 2017, due to reset on a quarterly basis following the date of issuance of the Series C Preference Shares. | |
|
3 |
The quarterly dividend amount of Series J was increased to US$0.30540 from US$0.25000 on June 1, 2017, due to the reset of the annual dividend rate on every fifth anniversary of the date of issuance of the Series J Preference Shares. | |
|
4 |
The quarterly dividend amount of Series L was increased to US$0.30993 from US$0.25000 on September 1, 2017, due to the reset of the annual dividend rate on every fifth anniversary of the date of issuance of the Series L Preference Shares. | |
NON-GAAP RECONCILATIONS APPENDICES
This news release contains references to adjusted EBITDA, adjusted earnings, adjusted earnings per common share, and DCF. Management believes the presentation of adjusted EBITDA, adjusted earnings, adjusted earnings per common share and DCF gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Adjusted EBITDA represents EBITDA adjusted for unusual, non-recurring or non-operating factors on both a consolidated and segmented basis. Management uses adjusted EBITDA to set targets and to assess the performance of the Company.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, non-recurring or non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, non-recurring or non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes, noncontrolling interests and redeemable noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another reflection of the Company's ability to generate earnings.
DCF is defined as cash flow provided by operating activities before changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests and redeemable noncontrolling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
Reconciliations of forward looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly with estimates for certain contingent liabilities, and estimating non-cash unrealized derivative fair value losses and gains and ineffectiveness on hedges which are subject to market variability and therefore a reconciliation is not available without unreasonable effort.
Our non-GAAP measures described above are not measures that have standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers.
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON- GAAP RECONCILATIONS: ADJUSTED EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
|
Three months ended |
Year ended | ||||
|
2017 |
2016 |
2017 |
2016 | ||
|
(millions of Canadian dollars) |
|||||
|
Liquids Pipelines |
1,555 |
1,733 |
6,395 |
4,926 | |
|
Gas Transmission and Midstream |
(3,532) |
95 |
(1,269) |
464 | |
|
Gas Distribution |
453 |
238 |
1,390 |
831 | |
|
Green Power and Transmission |
102 |
78 |
372 |
344 | |
|
Energy Services |
(252) |
(146) |
(263) |
(183) | |
|
Eliminations and Other |
(149) |
(207) |
(337) |
(101) | |
|
Earnings/(loss) before interest, income taxes, |
(1,823) |
1,791 |
6,288 |
6,281 | |
|
Depreciation and amortization |
(775) |
(564) |
(3,163) |
(2,240) | |
|
Interest expense |
(852) |
(412) |
(2,556) |
(1,590) | |
|
Income taxes |
3,515 |
32 |
2,697 |
(142) | |
|
Earnings attributable to noncontrolling interests and |
226 |
(406) |
(407) |
(240) | |
|
Preference share dividends |
(84) |
(76) |
(330) |
(293) | |
|
Earnings attributable to common shareholders |
207 |
365 |
2,529 |
1,776 | |
ADJUSTED EBITDA TO ADJUSTED EARNINGS
|
Three months ended |
Year ended | ||||
|
2017 |
2016 |
2017 |
2016 | ||
|
(millions of Canadian dollars, except per share amounts) |
|||||
|
Liquids Pipelines |
1,482 |
1,355 |
5,484 |
5,327 | |
|
Gas Transmission and Midstream |
1,020 |
166 |
3,350 |
659 | |
|
Gas Distribution |
450 |
238 |
1,379 |
833 | |
|
Green Power and Transmission |
109 |
91 |
379 |
355 | |
|
Energy Services |
(21) |
(4) |
(52) |
30 | |
|
Eliminations and Other |
(77) |
(84) |
(223) |
(302) | |
|
Adjusted EBITDA |
2,963 |
1,762 |
10,317 |
6,902 | |
|
Depreciation and amortization expense |
(764) |
(564) |
(3,152) |
(2,240) | |
|
Interest expense |
(638) |
(403) |
(2,305) |
(1,545) | |
|
Income taxes |
(252) |
(136) |
(805) |
(520) | |
|
Noncontrolling interests and redeemable noncontrolling |
(212) |
(61) |
(743) |
(226) | |
|
Preference share dividends |
(84) |
(76) |
(330) |
(293) | |
|
Adjusted earnings |
1,013 |
522 |
2,982 |
2,078 | |
|
Adjusted earnings per common share |
0.61 |
0.56 |
1.96 |
2.28 | |
EBITDA TO ADJUSTED EARNINGS
|
Three months ended |
Year ended | |||||
|
2017 |
2016 |
2017 |
2016 | |||
|
(millions of Canadian dollars, except per share amounts) |
||||||
|
Earnings/(loss) before interest, income taxes, |
(1,823) |
1,791 |
6,288 |
6,281 | ||
|
Adjusting items: |
||||||
|
Changes in unrealized derivative fair value (gain)/loss |
130 |
277 |
(1,109) |
(543) | ||
|
Asset and investment write-down loss |
4,565 |
433 |
4,565 |
1,630 | ||
|
Gain on sale of asset |
— |
(850) |
(27) |
(850) | ||
|
Alberta wildfire pipeline and facilities restart costs |
— |
8 |
— |
47 | ||
|
Losses on sale of non-core assets and investment, net of gains |
9 |
— |
9 |
4 | ||
|
Unrealized intercompany foreign exchange (gain)/loss |
9 |
(10) |
29 |
43 | ||
|
Hydrostatic testing |
— |
(1) |
— |
(15) | ||
|
Make-up rights adjustment |
— |
(1) |
— |
130 | ||
|
Leak remediation costs, net of leak insurance recoveries |
1 |
(11) |
10 |
(8) | ||
|
Warmer than normal weather |
— |
10 |
— |
18 | ||
|
Project development and transaction costs |
(1) |
56 |
205 |
86 | ||
|
Employee severance and restructuring costs |
70 |
52 |
354 |
82 | ||
|
Other |
3 |
8 |
(7) |
(3) | ||
|
Total adjusting items |
4,786 |
(29) |
4,029 |
621 | ||
|
Adjusted earnings before interest, income taxes, |
2,963 |
1,762 |
10,317 |
6,902 | ||
|
Depreciation and amortization |
(775) |
(564) |
(3,163) |
(2,240) | ||
|
Interest expense |
(852) |
(412) |
(2,556) |
(1,590) | ||
|
Income taxes |
3,515 |
32 |
2,697 |
(142) | ||
|
Earnings attributable to noncontrolling interests and |
226 |
(406) |
(407) |
(240) | ||
|
Preference share dividends |
(84) |
(76) |
(330) |
(293) | ||
|
Adjusting items in respect of: |
||||||
|
Depreciation and amortization |
11 |
— |
11 |
— | ||
|
Interest expense |
214 |
9 |
251 |
45 | ||
|
Income taxes |
(3,767) |
(168) |
(3,502) |
(378) | ||
|
Noncontrolling interests and redeemable noncontrolling interests |
(438) |
345 |
(336) |
14 | ||
|
Adjusted earnings |
1,013 |
522 |
2,982 |
2,078 | ||
|
Adjusted earnings per common share |
0.61 |
0.56 |
1.96 |
2.28 | ||
APPENDIX B
NON-GAAP RECONCILIATION – SEGMENTED EBITDA TO ADJUSTED EBITDA
LIQUIDS PIPELINES
|
Three months ended |
Year ended | |||||
|
2017 |
2016 |
2017 |
2016 | |||
|
(millions of Canadian dollars) |
||||||
|
Adjusted earnings before interest, income taxes, |
1,482 |
1,355 |
5,484 |
5,327 | ||
|
Changes in unrealized derivative fair value gain/(loss) |
94 |
(92) |
875 |
474 | ||
|
Leak remediation costs, net of leak insurance recoveries |
(1) |
11 |
(10) |
8 | ||
|
Hydrostatic testing |
— |
1 |
— |
15 | ||
|
Employee severance and restructuring costs |
(9) |
— |
(30) |
— | ||
|
Alberta wildfire pipelines and facility restart cost |
— |
(8) |
— |
(47) | ||
|
Make-up rights adjustment |
— |
1 |
— |
(129) | ||
|
Asset and investment impairment loss |
— |
(383) |
— |
(1,561) | ||
|
Gain on sale of pipe and project wind-down costs |
6 |
— |
72 |
— | ||
|
Gain on sale of asset |
— |
850 |
27 |
850 | ||
|
Derecognition of regulatory balances |
— |
— |
— |
(6) | ||
|
Project development and transaction costs |
2 |
(2) |
(4) |
(5) | ||
|
Other |
(19) |
— |
(19) |
— | ||
|
Total adjustments |
73 |
378 |
911 |
(401) | ||
|
Earnings before interest, income taxes, depreciation |
1,555 |
1,733 |
6,395 |
4,926 | ||
GAS TRANSMISSION AND MIDSTREAM
|
Three months ended |
Year ended | |||||
|
2017 |
2016 |
2017 |
2016 | |||
|
(millions of Canadian dollars) |
||||||
|
Adjusted earnings before interest, income taxes, |
1,020 |
166 |
3,350 |
659 | ||
|
Asset write-down loss |
(4,552) |
(37) |
(4,552) |
(51) | ||
|
Changes in unrealized derivative fair value loss |
(8) |
(34) |
(1) |
(139) | ||
|
DCP Midstream equity earnings adjustment |
(7) |
— |
(28) |
— | ||
|
Grizzly Valley flood |
12 |
— |
16 |
— | ||
|
Inspection, repair and other costs |
13 |
— |
(26) |
— | ||
|
Loss on disposal of non-core assets |
— |
— |
— |
(4) | ||
|
Make-up rights adjustment |
— |
— |
— |
(1) | ||
|
Project development and transaction costs |
1 |
— |
(4) |
— | ||
|
Employee severance and restructuring costs |
(11) |
— |
(24) |
— | ||
|
Total adjustments |
(4,552) |
(71) |
(4,619) |
(195) | ||
|
Earnings/(loss) before interest, income taxes, |
(3,532) |
95 |
(1,269) |
464 | ||
GAS DISTRIBUTION
|
Three months ended |
Year ended | |||||
|
2017 |
2016 |
2017 |
2016 | |||
|
(millions of Canadian dollars) |
||||||
|
Adjusted earnings before interest, income taxes, |
450 |
238 |
1,379 |
833 | ||
|
Warmer than normal weather |
— |
(10) |
— |
(18) | ||
|
Changes in unrealized derivative fair value gain/(loss) |
3 |
— |
16 |
(6) | ||
|
Asset impairment loss |
— |
— |
— |
(5) | ||
|
Other regulatory adjustments |
— |
— |
— |
17 | ||
|
Employee severance and restructuring costs |
— |
10 |
(5) |
10 | ||
|
Total adjustments |
3 |
— |
11 |
(2) | ||
|
Earnings before interest, income taxes, depreciation |
453 |
238 |
1,390 |
831 | ||
GREEN POWER AND TRANSMISSION
|
Three months ended |
Year ended | ||||||
|
2017 |
2016 |
2017 |
2016 | ||||
|
(millions of Canadian dollars) |
|||||||
|
Adjusted earnings before interest, income taxes, |
109 |
91 |
379 |
355 | |||
|
Changes in unrealized derivative fair value gain |
2 |
— |
2 |
2 | |||
|
Loss on sale of investment |
(9) |
(9) |
|||||
|
Investment impairment loss |
— |
(13) |
— |
(13) | |||
|
Total adjustments |
(7) |
(13) |
(7) |
(11) | |||
|
Earnings before interest, income taxes, depreciation |
102 |
78 |
372 |
344 | |||
ENERGY SERVICES
|
Three months ended |
Year ended | |||||
|
2017 |
2016 |
2017 |
2016 | |||
|
(millions of Canadian dollars) |
||||||
|
Adjusted earnings/(loss) before interest, income taxes, |
(21) |
(4) |
(52) |
30 | ||
|
Changes in unrealized derivative fair value loss |
(222) |
(134) |
(200) |
(205) | ||
|
Employee severance and restructuring costs |
(1) |
— |
(3) |
— | ||
|
Other |
(8) |
(8) |
(8) |
(8) | ||
|
Total adjustments |
(231) |
(142) |
(211) |
(213) | ||
|
Loss before interest, income taxes, depreciation and |
(252) |
(146) |
(263) |
(183) | ||
ELIMINATIONS AND OTHER
|
Three months ended |
Year ended | |||||
|
2017 |
2016 |
2017 |
2016 | |||
|
(millions of Canadian dollars) |
||||||
|
Adjusted loss before interest, income taxes, depreciation |
(77) |
(84) |
(223) |
(302) | ||
|
Changes in unrealized derivative fair value gain/(loss) |
1 |
(17) |
417 |
417 | ||
|
Unrealized intercompany foreign exchange gain/(loss) |
(9) |
10 |
(29) |
(43) | ||
|
Asset and investment impairment loss |
(13) |
— |
(13) |
— | ||
|
Project development and transaction costs |
(2) |
(54) |
(197) |
(81) | ||
|
Employee severance and restructuring costs |
(49) |
(62) |
(292) |
(92) | ||
|
Total adjustments |
(72) |
(123) |
(114) |
201 | ||
|
Loss before interest, income taxes, depreciation and |
(149) |
(207) |
(337) |
(101) | ||
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING ACTIVITIES TO DCF
|
Three months ended |
Year ended | ||||||
|
2017 |
2016 |
2017 |
2016 | ||||
|
(millions of Canadian dollars) |
|||||||
|
Cash provided by operating activities |
1,341 |
1,058 |
6,584 |
5,211 | |||
|
Adjusted for changes in operating assets and liabilities1 |
461 |
272 |
412 |
362 | |||
|
1,802 |
1,330 |
6,996 |
5,573 | ||||
|
Distributions to noncontrolling interests and redeemable |
(272) |
(236) |
(1,042) |
(922) | |||
|
Preference share dividends |
(84) |
(76) |
(330) |
(293) | |||
|
Maintenance capital expenditures3 |
(345) |
(205) |
(1,261) |
(671) | |||
|
Significant adjusting items: |
|||||||
|
Pre-issuance hedge settlement4 |
431 |
— |
431 |
— | |||
|
Weather normalization |
— |
7 |
— |
13 | |||
|
Other receipts of cash not recognized in revenue5 |
25 |
36 |
196 |
249 | |||
|
Project development and transaction costs |
9 |
44 |
210 |
74 | |||
|
Realized inventory revaluation allowance6 |
(17) |
1 |
(56) |
(345) | |||
|
Employee severance, transition and restructuring costs |
81 |
43 |
359 |
73 | |||
|
Other items |
111 |
(65) |
111 |
(38) | |||
|
Distributable cash flow |
1,741 |
879 |
5,614 |
3,713 | |||
|
1 |
Changes in operating assets and liabilities include changes in environmental liabilities, net of recoveries. |
|
2 |
Presented net of adjusting items. |
|
3 |
Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing pipeline system or that are necessary to maintain the service capability of the existing assets (including the replacement of components that are worn, obsolete or completing their useful lives). For the purpose of DCF, maintenance capital excludes expenditures that extend asset useful lives, increase capacities from existing levels or reduce costs to enhance revenues or provide enhancements to the service capability of the existing assets. |
|
4 |
Related to termination of interest rate swaps as not highly probable to issue long-term debt. |
|
5 |
Consists of cash received net of revenue recognized for contracts under make-up rights and similar deferred revenue arrangements. |
|
6 |
Realized inventory revaluation allowance relates to losses on sale of previously written down inventory for which there is an approximate offsetting realized derivative gain in DCF. |
FOR FURTHER INFORMATION PLEASE CONTACT:
Enbridge Inc. – Media
Suzanne Wilton
Toll Free: (888) 992-0997
Email: suzanne.wilton@enbridge.com
Enbridge Inc. – Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: jonathan.gould@enbridge.com
SOURCE Enbridge Inc.
Article Date
2/16/2018Enbridge Announces Conversion Results for Series D Preferred Shares
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, Feb. 14, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that after having taken into account all conversion notices received from holders of its outstanding Cumulative Redeemable Preference Shares, Series D (Series D Shares) by the February 14, 2018 deadline for the conversion of the Series D Shares into Cumulative Redeemable Preference Shares, Series E of Enbridge (Series E Shares), less than the 1,000,000 Series D Shares required to give effect to conversions into Series E Shares were tendered for conversion. As a result, none of Enbridge's outstanding Series D Shares will be converted into Series E Shares on March 1, 2018.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Suzanne Wilton
Toll Free: (888) 992-0997
Email: suzanne.wilton@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
SOURCE Enbridge Inc.
Article Date
2/15/20181/30/2018 - Enbridge Provides Notice of Series D Preferred Shares Conversion Right and Announces Reset Dividend Rates
Enbridge Provides Notice of Series D Preferred Shares Conversion Right and Announces Reset Dividend Rates
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, Jan. 30, 2018 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series D (Series D Shares) (TSX: ENB.PR.D) on March 1, 2018. As a result, subject to certain conditions, the holders of the Series D Shares have the right to convert all or part of their Series D Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series E of Enbridge (Series E Shares) on March 1, 2018. Holders who do not exercise their right to convert their Series D Shares into Series E Shares will retain their Series D Shares.
The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series D Shares outstanding after March 1, 2018, then all remaining Series D Shares will automatically be converted into Series E Shares on a one-for-one basis on March 1, 2018; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series E Shares outstanding after March 1, 2018, no Series D Shares will be converted into Series E Shares. There are currently 18,000,000 Series D Shares outstanding.
With respect to any Series D Shares that remain outstanding after March 1, 2018, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series D Shares for the five-year period commencing on March 1, 2018 to, but excluding, March 1, 2023 will be 4.46 percent, being equal to the five-year Government of Canada bond yield of 2.09 percent determined as of today plus 2.37 percent in accordance with the terms of the Series D Shares.
With respect to any Series E Shares that may be issued on March 1, 2018, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series E Shares for the three-month floating rate period commencing on March 1, 2018 to, but excluding, June 1, 2018 will be 0.89984 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 1.20 percent plus 2.37 percent in accordance with the terms of the Series E Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.
Beneficial holders of Series D Shares who wish to exercise their right of conversion during the conversion period, which runs from January 30, 2018 until 5:00 p.m. (EST) on February 14, 2018, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.6 million retail customers in Ontario, Quebec, New Brunswick and New York State. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Suzanne Wilton
Toll Free: (888) 992-0997
Email: suzanne.wilton@enbridge.com
Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
SOURCE Enbridge Inc.
Article Date
1/30/2018Enbridge Inc. Declares First Dividend on Preference Shares, Series 19
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, Jan. 24, 2018 /PRNewswire/ - Enbridge Inc. (TSX, NYSE: ENB) Board of Directors has declared the first dividend of $0.2685 per Series 19 Preferred Share, payable on March 1, 2018 to shareholders of record on February 15, 2018. This dividend includes accrued dividends from December 11, 2017, the date the shares were issued. The regular quarterly dividend of $0.30625 per share will take effect on June 1, 2018.
On November 29, 2017, the Enbridge Board of Directors declared the quarterly dividends on the common shares and Preference Shares, Series A, B, C, D, F, H, J, L, N, P, R, 1, 3, 5, 7, 9, 11, 13, 15 and 17. All dividends are payable on March 1, 2018 to shareholders of record on February 15, 2018.
|
Common Shares |
$0.671 |
|
Preference Shares, Series A |
$0.34375 |
|
Preference Shares, Series B |
$0.2134 |
|
Preference Shares, Series C |
$0.20342 |
|
Preference Shares, Series D |
$0.25 |
|
Preference Shares, Series F |
$0.25 |
|
Preference Shares, Series H |
$0.25 |
|
Preference Shares, Series J |
US$0.3054 |
|
Preference Shares, Series L |
US$0.30993 |
|
Preference Shares, Series N |
$0.25 |
|
Preference Shares, Series P |
$0.25 |
|
Preference Shares, Series R |
$0.25 |
|
Preference Shares, Series 1 |
US$0.25 |
|
Preference Shares, Series 3 |
$0.25 |
|
Preference Shares, Series 5 |
US$0.275 |
|
Preference Shares, Series 7 |
$0.275 |
|
Preference Shares, Series 9 |
$0.275 |
|
Preference Shares, Series 11 |
$0.275 |
|
Preference Shares, Series 13 |
$0.275 |
|
Preference Shares, Series 15 |
$0.275 |
|
Preference Shares, Series 17 |
$0.321875 |
|
Preference Shares, Series 19 |
$0.2685 |
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.6 million retail customers in Ontario, Quebec, New Brunswick and New York State. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past eight years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
SOURCE Enbridge Inc.
Article Date
1/24/2018Enbridge Inc. to Host a Joint Webcast with Enbridge Income Fund Holdings Inc., Enbridge Energy Partners, L.P. & Spectra Energy Partners, LP to Discuss 2017 Fourth Quarter and Year End Financial Results on February 16
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, Jan. 22, 2018 /PRNewswire/ - Enbridge Inc. (TSX, NYSE: ENB) (Enbridge) will host a joint conference call and webcast with Enbridge Income Fund Holdings Inc. (TSX: ENF), Enbridge Energy Partners, L.P. (NYSE: EEP) and Spectra Energy Partners, LP (NYSE: SEP) to provide an enterprise-wide business update and review 2017 fourth quarter and year end financial results on February 16, 2018 at 7:00 a.m. MT (9:00 a.m. ET).
Enbridge and Enbridge Income Fund Holdings Inc. will announce fourth quarter earnings results before markets open on February 16, 2018, while Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP will announce fourth quarter earnings results after markets close on February 15, 2018.
2017 Fourth Quarter and Year End Earnings Webcast and Conference Call
|
When: |
Friday, February 16, 2018 |
|
|
7:00 a.m. MT (9:00 a.m. ET) |
||
|
Webcast: |
||
|
Call: |
Dial-in # (Audio only – please dial in 10 minutes ahead): | |
|
North America Toll Free: |
1 (877) 930-8043 | |
|
Outside North America: |
1 (253) 336-7522 | |
|
Participant Passcode: |
4939158 | |
A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the company websites within approximately 24 hours after the event.
|
Replay: |
Audio Replay # (Available for 7 days after call): | |
|
North America Toll Free: |
1 (855) 859-2056 | |
|
Outside North America: |
1 (404) 537-3406 | |
|
Replay Passcode: |
4939158 | |
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions.
Forward-Looking Statements Advisory
The conference call will cover each of Enbridge Inc., Enbridge Income Fund Holdings Inc., Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP's (collectively, the Entities) most recent financial results and may contain forward-looking statements. When used in the call, words such as "anticipate", "expect", "project", and similar expressions are intended to identify such forward-looking statements. Although each of the Entities believes that its respective statements are or will be based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, economic conditions, commodity prices and other matters. You can find a discussion of those assumptions, risks and uncertainties in the Canadian securities law and/or American SEC filings for the applicable Entity. While each Entity makes its respective forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, no Entity assumes any obligation to publicly update or revise any forward-looking statements made herein, on the call or otherwise, whether as a result of new information, future events or otherwise.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline, and accounts for nearly 65% of U.S.-bound Canadian crude oil production, and moves approximately 20% of all natural gas consumed in the U.S. serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.5 million retail customers in Ontario, Quebec, New Brunswick and New York State. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity, and an expanding offshore wind portfolio in Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past eight years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Enbridge Income Fund Holdings Inc.
Enbridge Income Fund Holdings Inc., through its investment in Enbridge Income Fund, indirectly holds high quality, low-risk energy infrastructure assets. Enbridge Income Fund's assets consist of a portfolio of Canadian liquids transportation and storage businesses, including the Canadian Mainline, the Regional Oil Sands System, the Canadian segment of the Southern Lights Pipeline, Class A units entitling the holder to receive defined cash flows from the US segment of the Southern Lights Pipeline, a 50 percent interest in the Alliance Pipeline, which transports natural gas from Canada to the U.S., and interests in more than 1,400 MW of renewable and alternative power generation assets. Enbridge Income Fund Holdings Inc. is a publicly traded corporation on the Toronto stock exchange under the symbol ENF; information about the company is available on its website at www.enbridgeincomefund.com.
About Enbridge Energy Partners, L.P.
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil transportation systems in the United States. Its principal crude oil system is the largest pipeline transporter of growing oil production from western Canada and the North Dakota Bakken formation. The system's deliveries to refining centers and connected carriers in the United States account for approximately 23 percent of total U.S. oil imports. Enbridge Energy Partners, L.P. is traded on the New York stock exchange under the symbol EEP; information about the company is available on its website at www.enbridgepartners.com.
About Spectra Energy Partners, LP
Spectra Energy Partners, LP is one of the largest pipeline master limited partnerships in the United States and connects growing supply areas to high-demand markets for natural gas and crude oil. These assets include more than 15,000 miles of transmission pipelines, approximately 170 billion cubic feet of natural gas storage, and approximately 5.6 million barrels of crude oil storage. Spectra Energy Partners, LP is traded on the New York stock exchange under the symbol SEP; information about the company is available on its website at www.spectraenergypartners.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media:
Suzanne Wilton
Toll Free: (888) 992-0997
Email: suzanne.wilton@enbridge.com
Investment Community:
Enbridge Inc.
Jonathan Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
Enbridge Income Fund Holdings Inc. & Enbridge Energy Partners, L.P.
Adam McKnight
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
Spectra Energy Partners, LP
Roni Cappadonna
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
SOURCE Enbridge Inc.
Article Date
1/22/2018Enbridge Inc. and Spectra Energy Partners, LP Announce Definitive Agreement and Completion of the Elimination of Incentive Distribution Rights
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CALGARY, Jan. 22, 2018 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB)(NYSE:ENB) and Spectra Energy Partners, LP (SEP) (NYSE:SEP) today announced execution of a definitive agreement, resulting in Enbridge converting all of its incentive distribution rights (IDRs) and general partner (GP) economic interests in SEP into 172.5 million newly issued SEP common units. As part of the transaction, all of the IDRs have been eliminated. The 172.5 million newly issued SEP common units have a value of approximately US$7.2 billion based on the volume-weighted average price of SEP common units over the past twenty days. The transaction value represents a multiple of 15.7x forecast 2018 GP/IDR cash flow and is expected to be breakeven to SEP's distributable cash flow per common unit by the second half of 2019 and be accretive thereafter.
Enbridge now holds a non-economic GP interest in SEP and owns approximately 403 million SEP common units, representing approximately 83% of SEP's outstanding common units.
The transaction provides significant benefits to all SEP common unitholders. The elimination of the IDRs will improve SEP's competitiveness and growth potential by permanently improving its cost of capital, thereby improving value for both SEP unitholders and Enbridge. The transaction also simplifies SEP's capital structure and further aligns the interests of all SEP unitholders. SEP maintains its current guidance of 7% distribution growth in 2018 and 4-6% distribution growth in 2019-20, distribution coverage of 1.1x to 1.2x and a strong credit profile of sub 4.0x Debt/EBITDA.
Bill Yardley, President and Chairman of the Board of SEP added, "Today's transaction improves SEP's long-term value proposition. With an improved cost of capital, we are even better positioned to improve and extend SEP's distribution growth outlook through organic growth projects, potential future drop downs from Enbridge and third party acquisitions."
"We are pleased to have completed this transaction which we believe is a win-win for both Enbridge and SEP," said Al Monaco, President and Chief Executive Officer of Enbridge. "An even stronger SEP supports our strategic priority to continue to grow our natural gas business. The transaction also simplifies SEP and reinforces its value proposition as a best-in-class MLP that will create long-term benefits for investors in both organizations."
The Enbridge Board of Directors reviewed and approved this transaction with assistance from Barclays Capital Inc., acting as Enbridge's financial advisor, and Sullivan & Cromwell LLP and Vinson & Elkins LLP, acting as Enbridge's legal and tax advisors. The terms of the transaction were unanimously approved by the Board of Directors of the general partner of SEP, based on the unanimous approval and recommendation of the SEP GP board's conflicts committee, which is comprised entirely of independent directors. The conflicts committee engaged Jefferies LLC to act as its financial advisor and Locke Lord LLP to act as its legal advisor.
The transaction closed immediately after the signing of the definitive agreement.
FORWARD-LOOKING INFORMATION
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on our beliefs and assumptions. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. Factors that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to: state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an effect on rate structure, and affect the speed at and degree to which competition enters the natural gas and oil industries; outcomes of litigation and regulatory investigations, proceedings or inquiries; weather and other natural phenomena, including the economic, operational and other effects of hurricanes and storms; the timing and extent of changes in commodity prices, interest rates and foreign currency exchange rates; general economic conditions, including the risk of a prolonged economic slowdown or decline, or the risk of delay in a recovery, which can affect the long-term demand for natural gas and oil and related services; potential effects arising from terrorist attacks and any consequential or other hostilities; changes in environmental, safety and other laws and regulations; the development of alternative energy resources; results and costs of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings and general market and economic conditions; increases in the cost of goods and services required to complete capital projects; declines in the market prices of equity and debt securities and resulting funding requirements for defined benefit pension plans; growth in opportunities, including the timing and success of efforts to develop U.S. and Canadian pipeline, storage, gathering, processing and other related infrastructure projects and the effects of competition; the performance of natural gas and oil transmission and storage, distribution, and gathering and processing facilities; the extent of success in connecting natural gas and oil supplies to gathering, processing and transmission systems and in connecting to expanding gas and oil markets; the effects of accounting pronouncements issued periodically by accounting standard-setting bodies; conditions of the capital markets during the periods covered by forward-looking statements; and the ability to successfully complete merger, acquisition or divestiture plans; regulatory or other limitations imposed as a result of a merger, acquisition or divestiture; and the success of the business following a merger, acquisition or divestiture. These factors, as well as additional factors that could affect our forward-looking statements, are described under the headings "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Information" in our 2016 Form 10-K, filed on February 24, 2017, and in our other filings made with the Securities and Exchange Commission (SEC), which are available via the SEC's website at www.sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. All forward-looking statements in this release are made as of the date hereof and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
ABOUT SPECTRA ENERGY PARTNERS
Spectra Energy Partners, LP is one of the largest pipeline master limited partnerships in the United States and connects growing supply areas to high-demand markets for natural gas and crude oil. These assets include more than 15,000 miles of transmission pipelines, approximately 170 billion cubic feet of natural gas storage, and approximately 5.6 million barrels of crude oil storage. Spectra Energy Partners, LP is traded on the New York stock exchange under the symbol SEP; information about the company is available on its website at www.spectraenergypartners.com.
ABOUT ENBRIDGE INC.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately3.6 million retail customers in Ontario, Quebec, New Brunswick and New York State. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past eight years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
For more information please contact:
Enbridge Inc. – Media
Suzanne Wilton
(403) 231-7385 or Toll Free: (888) 992-0997
suzanne.wilton@enbridge.com
Enbridge Inc. – Investment Community
Jonathan Gould
Toll Free: (800) 481-2804
jonathan.gould@enbridge.com
Spectra Energy Partners – Media
Michael Barnes
Toll Free: (888) 992-0997
michael.barnes@enbridge.com
Spectra Energy Partners – Analysts and Investors
Roni Cappadonna
Toll Free: (800) 481-2804
roni.cappadonna@enbridge.com
SOURCE Enbridge Inc.
Article Date
1/22/2018Alerian Announces Real-Time Launch of the Alerian Energy Infrastructure Capital Strength Select Index
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Jan. 3, 2018 /PRNewswire/ -- Alerian announced today the real-time launch of the Alerian Energy Infrastructure Capital Strength Select Index, a composite of North American midstream, refining, and utility companies chosen for their ownership of pipeline transportation assets, leverage profile, and above-market dividend payments. The index is disseminated real-time on a price-return basis (AMCS) and on a total-return basis (AMCST).
"The AMCS was designed with the understanding that the portion of the North American energy value chain from midstream to distribution has become increasingly integrated," said Alerian President and CEO Kenny Feng. "The composition of this index also seeks to address growing investor focus on strengthening balance sheets and improving corporate governance."
Constituents as of January 2, 2018
|
Name |
Ticker |
|
AltaGas Ltd |
ALA |
|
Antero Midstream Partners LP |
AM |
|
Andeavor |
ANDV |
|
Buckeye Partners LP |
BPL |
|
Boardwalk Pipeline Partners LP |
BWP |
|
CenterPoint Energy Inc |
CNP |
|
Cheniere Energy Partners LP Holdings LLC |
CQH |
|
Dominion Energy Inc |
D |
|
Enbridge Inc |
ENB |
|
EnLink Midstream LLC |
ENLC |
|
Enterprise Products Partners LP |
EPD |
|
EQT GP Holdings LP |
EQGP |
|
Gibson Energy Inc |
GEI |
|
HollyFrontier Corp |
HFC |
|
Inter Pipeline Ltd |
IPL |
|
Keyera Corp |
KEY |
|
Kinder Morgan Inc |
KMI |
|
Macquarie Infrastructure Corp |
MIC |
|
Magellan Midstream Partners LP |
MMP |
|
Marathon Petroleum Corp |
MPC |
|
OGE Energy Corp |
OGE |
|
ONEOK Inc |
OKE |
|
Plains GP Holdings LP |
PAGP |
|
Pembina Pipeline Corp |
PPL |
|
Phillips 66 |
PSX |
|
Sempra Energy |
SRE |
|
Tallgrass Energy GP LP |
TEGP |
|
TransCanada Corp |
TRP |
|
Valero Energy Corp |
VLO |
|
Western Gas Equity Partners LP |
WGP |
|
The Williams Companies Inc |
WMB |
About Alerian
Alerian equips investors to make informed decisions about Master Limited Partnerships (MLPs) and energy infrastructure. Its benchmarks, including the flagship Alerian MLP Index (AMZ), are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of December 31, 2017, over $16 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
View original content:http://www.prnewswire.com/news-releases/alerian-announces-real-time-launch-of-the-alerian-energy-infrastructure-capital-strength-select-index-300576838.html
SOURCE Alerian
Article Date
1/3/2018Phillips 66 and Enbridge Announce Open Season for West Texas Crude Oil Pipeline System
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Dec. 11, 2017 /PRNewswire/ - Phillips 66 (NYSE: PSX) and Enbridge Inc. (NYSE: ENB) today announced an open season for the Gray Oak Pipeline. The Gray Oak Pipeline will provide producers and other shippers the opportunity to secure crude oil transportation from West Texas to the destination markets of Corpus Christi, Freeport, and Houston, Texas, with connectivity to over 3 million barrels per day (BPD) of refining capacity and multiple dock facilities capable of crude oil exports. Shippers will have the option to select from origination stations in Reeves, Loving, Winkler, and Crane counties in West Texas.
The Gray Oak Pipeline is expected to have an initial throughput capacity of 385,000 BPD. Phillips 66 and Enbridge will evaluate expansion of the system beyond 385,000 BPD, depending on shipper interest in the open season. The pipeline system is anticipated to be placed in service in the second half of 2019.
The open season will commence at 12 p.m. CST on Dec. 11, 2017. Prior to participating in the open season, interested parties must execute a confidentiality agreement to govern the receipt of the open season documentation. For a form of confidentiality agreement and additional information regarding the Gray Oak Pipeline, please contact Corey Leonard at Corey.Leonard@p66.com or Jarrod Tessier at Jarrod.Tessier@enbridge.com.
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company's master limited partnership, is an integral asset in the portfolio. Headquartered in Houston, the company has 14,600 employees committed to safety and operating excellence. Phillips 66 had $53 billion of assets as of Sept. 30, 2017. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The company's regulated utilities serve approximately 3.6 million retail customers in Ontario, Quebec, New Brunswick and New York State. Enbridge also has a growing involvement in electricity infrastructure with interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The company has ranked on the Global 100 Most Sustainable Corporations index for the past eight years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB. Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
SOURCE Enbridge Inc.
Article Date
12/11/2017Spectra Energy Partners, LP Announces 2018 Guidance, Long Term Financial Outlook and Receipt of Offer to Eliminate Incentive Distribution Rights
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Nov. 29, 2017 /PRNewswire/ -- Spectra Energy Partners, LP (NYSE: SEP) announced today its financial guidance for 2018 as well as its long term financial and business outlook. SEP's performance is expected to continue to benefit from ongoing expansion project execution and solid base business performance over the 2018 – 2020 timeframe. This long term outlook relies upon SEP's disciplined expansion model, strong investment grade balance sheet, solid distribution coverage and a stable, reliable business profile with no direct commodity exposure and limited volume risk.
Business Outlook
Spectra Energy Partners' financial and business outlook for the 2018 – 2020 period continues to be strong. SEP's earnings and cash flow growth are supported by more than $2 billion of projects placed into service in 2017 and an expected incremental $2.5 billion of secured projects to be placed into service over the 2018 – 2019 timeframe, most notably NEXUS and the completion of Atlantic Bridge. Expansion capex net of contributions from non-controlling interests is expected to be $1.4 billion in 2018. Strong gas market fundamentals and SEP's asset footprint connecting to major demand markets and multiple diverse supply basins are expected to provide continued growth opportunities for SEP over the foreseeable future in areas such as the Northeast and Gulf Coast regions of the U.S.
2018 Distributable Cash Flow Guidance
SEP expects 2018 Distributable Cash Flow (DCF) of $1.63 billion to $1.67 billion. The DCF outlook assumes maintenance capex of $230 million.
Distribution Guidance
SEP's distribution growth in 2018 is expected to be $0.0125 per LP unit per quarter, an increase from 2017 of approximately 7%. SEP expects annual total distribution coverage in 2018 of 1.1x to 1.2x. After 2018, the execution of the current secured organic growth plan alone supports distribution growth of 4% – 6% annually in 2019 and 2020, while maintaining distribution coverage of 1.1x to 1.2x. This outlook could be further enhanced with additional organic growth and future drop down transactions.
Target Credit Metrics
SEP expects to maintain its strong investment grade credit profile with enhanced credit metrics through the planning horizon. The partnership's Debt to EBITDA metric is expected to be below 4.0x through 2020.
Offer Received From Enbridge Inc.
Today SEP received a formal offer from Enbridge Inc. (NYSE:ENB), which owns SEP's general partner, to convert all of Enbridge's incentive distribution rights (IDRs) and general partner (GP) economic interests in SEP into a fixed number of additional common units of SEP and a non-economic GP interest in SEP. SEP's board of directors has convened a conflicts committee, comprised of independent members, to review and evaluate Enbridge's proposal. No assurance can be given that Enbridge and SEP will reach agreement on the proposed transaction. The DCF and distribution guidance discussed above does not take into consideration Enbridge's proposal.
Additional information about SEP's financial and business outlook will be discussed at the upcoming Enbridge Inc. investor conferences in New York and Toronto on December 12th and 13th, respectively.
Forward-Looking Statements
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on our beliefs and assumptions. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. Factors that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to: state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an effect on rate structure, and affect the speed at and degree to which competition enters the natural gas and oil industries; outcomes of litigation and regulatory investigations, proceedings or inquiries; weather and other natural phenomena, including the economic, operational and other effects of hurricanes and storms; the timing and extent of changes in commodity prices, interest rates and foreign currency exchange rates; general economic conditions, including the risk of a prolonged economic slowdown or decline, or the risk of delay in a recovery, which can affect the long-term demand for natural gas and oil and related services; potential effects arising from terrorist attacks and any consequential or other hostilities; changes in environmental, safety and other laws and regulations; the development of alternative energy resources; results and costs of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings and general market and economic conditions; increases in the cost of goods and services required to complete capital projects; declines in the market prices of equity and debt securities and resulting funding requirements for defined benefit pension plans; growth in opportunities, including the timing and success of efforts to develop U.S. and Canadian pipeline, storage, gathering, processing and other related infrastructure projects and the effects of competition; the performance of natural gas and oil transmission and storage, distribution, and gathering and processing facilities; the extent of success in connecting natural gas and oil supplies to gathering, processing and transmission systems and in connecting to expanding gas and oil markets; the effects of accounting pronouncements issued periodically by accounting standard-setting bodies; conditions of the capital markets during the periods covered by forward-looking statements; and the ability to successfully complete merger, acquisition or divestiture plans; regulatory or other limitations imposed as a result of a merger, acquisition or divestiture; and the success of the business following a merger, acquisition or divestiture. These factors, as well as additional factors that could affect our forward-looking statements, are described under the headings "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Information" in our 2016 Form 10-K, filed on February 24, 2017, and in our other filings made with the Securities and Exchange Commission (SEC), which are available via the SEC's website at www.sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. All forward-looking statements in this release are made as of the date hereof and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Reconciliations
Reconciliations of forward looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges with estimating some of the items and therefore a reconciliation is not available without unreasonable effort.
Spectra Energy Partners
Spectra Energy Partners, LP is one of the largest pipeline master limited partnerships in the United States and connects growing supply areas to high-demand markets for natural gas and crude oil. These assets include more than 15,000 miles of transmission pipelines, approximately 170 billion cubic feet of natural gas storage, and approximately 5.6 million barrels of crude oil storage. Spectra Energy Partners, LP is traded on the New York stock exchange under the symbol SEP; information about the company is available on its website at www.spectraenergypartners.com.
View original content with multimedia:http://www.prnewswire.com/news-releases/spectra-energy-partners-lp-announces-2018-guidance-long-term-financial-outlook-and-receipt-of-offer-to-eliminate-incentive-distribution-rights-300563939.html
SOURCE Spectra Energy Partners, LP
Article Date
11/29/2017Spectra Energy Partners Reports First Quarter 2017 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, May 10, 2017 /PRNewswire/ -- Spectra Energy Partners, LP (NYSE: SEP) today reported net income of $354 million, including net income from controlling interests of $317 million, for the first quarter ended March 31, 2017, with diluted earnings per limited partner unit of $0.74. The first quarter included non-recurring special items of $46 million, which decreased diluted earnings per limited partner unit by $0.15.
Highlights:
First quarter 2017 ongoing distributable cash flow (DCF) was $403 million, compared with $371 million in the prior-year quarter. Distributions per limited partner unit for first quarter 2017 were $0.70125, compared with $0.65125 per limited partner unit in first quarter 2016.
For the quarter, ongoing earnings before interest, taxes, depreciation and amortization (EBITDA) were $545 million, compared with $447 million in the prior-year quarter.
Ongoing net income from controlling interests was $363 million for the quarter, or $0.89 diluted earnings per limited partner unit, compared with $298 million, or $0.80 diluted earnings per limited partner unit, in the prior-year quarter. Net income from controlling interests was $317 million for the quarter, or $0.74 diluted earnings per limited partner unit, compared with $298 million, or $0.80 diluted earnings per limited partner unit, in the prior-year quarter.
PRESIDENT COMMENT
"As seen in this quarter's results, Spectra Energy Partners' strong base business continues to perform well, and is being further enhanced by the expansion projects we placed into service in 2016 and those that we are advancing," said Bill Yardley, chairman and president of Spectra Energy Partners. "We continue to generate solid and reliable cash flows that support our distribution growth, and earlier this month we announced our 38th consecutive quarterly distribution increase.
"The progress we are making on the high-quality growth projects we have in execution, the strength of our fee-based business model that has no direct commodity exposure and virtually no volume exposure, and our long-term contracts with high credit-quality customers are what continue to make Spectra Energy Partners a compelling investment."
SEGMENT RESULTS
U.S. Transmission
Ongoing EBITDA from U.S. Transmission was $499 million in first quarter 2017, compared with $411 million in first quarter 2016. These favorable results reflect increased earnings from expansion projects, including AIM, Sabal Trail, phase one of Gulf Markets and NEXUS. The 2017 ongoing results exclude special items of $18 million, primarily from merger-related severance costs, and $2 million in expense related to the 2016 Texas Eastern pipeline incident.
Liquids
Ongoing EBITDA from Liquids was $68 million in first quarter 2017, compared with $56 million in first quarter 2016. These results reflect expansion revenues from the Express Enhancement project placed into service in October 2016 and higher transportation revenues due to higher volumes of heavy oil on the Express Pipeline, partially offset by higher operating costs (primarily power). The 2017 period excludes a special item of $2 million for merger-related severance costs.
Other
Ongoing net expenses from "Other" were $22 million and $20 million in first quarters 2017 and 2016, respectively. The 2017 period excludes special items of $24 million, primarily from merger-related severance costs.
Interest Expense
Interest expense was $56 million in first quarters 2017 and 2016, reflecting higher average long-term debt balances in 2017, offset by higher capitalized interest.
Liquidity and Capital Expenditures
Total debt outstanding at Spectra Energy Partners as of March 31, 2017, was $7.7 billion, with available liquidity of $1.7 billion.
This year, Spectra Energy Partners has received net proceeds of $47 million through its "At the Market" (ATM) equity issuance program.
Including contributions from noncontrolling interests, Spectra Energy Partners has $1.8 billion of capital expansion spending planned in 2017, which is expected to be funded through a combination of debt, equity issued primarily through its ATM program, and return of capital from joint venture asset-level financings. Including contributions from noncontrolling interests of $290 million, total capital spending for the three months ended March 31, 2017, was $518 million, consisting of $492 million of growth capital expenditures and $26 million of maintenance capital expenditures.
EXPANSION PROJECT UPDATES
Spectra Energy Partners currently has $4.4 billion in capital expansion projects in execution.
Projects scheduled for 2017 in-service
Construction on Sabal Trail continues to advance on schedule, with in-service expected by the end of June.
Access South, Adair Southwest, Lebanon Extension, and the second phase of the Gulf Markets Expansion project are under construction, keeping these projects on target for in-service in the second half of this year.
Construction on Atlantic Bridge began this month, with initial in-service of the Connecticut facilities scheduled for the fourth quarter of 2017. Full in-service is expected in the second half of 2018.
NEXUS and TEAL anticipate receiving their FERC certificates shortly after FERC again has a quorum. The project team continues to explore multiple scenarios with its contractors for a 2017 in-service date, assuming receipt of the certificates in the second quarter of 2017.
Projects scheduled for 2018 and 2019 in-service
The Bayway Lateral project is on schedule for its first half of 2018 in-service date and the STEP project continues to target in-service in the second half of 2018.
The PennEast project continues to advance as well. FERC issued its Final Environmental Impact Statement (FEIS) in April, and the project is targeting a late 2018 in-service date. In March, PennEast announced that Spectra Energy Partners has entered into a purchase and sale agreement with PSEG Power LLC to acquire its 10 percent equity position in the project, which will increase Spectra Energy Partners' total equity investment to 20 percent. The sale is expected to close in the second quarter this year.
Stratton Ridge remains on schedule for in-service in the first half of 2019.
Open Season Results
Spectra Energy Partners has secured a commitment from an industrial market shipper in the STX Zone of its Texas Eastern system and conducted an open season that resulted in another binding commitment in the Southern Louisiana market area. These two commitments – making up the Texas-Louisiana Markets project – total 157,500 dekatherms per day (Dth/d) of Texas Eastern mainline expansion capacity, with scheduled in-service in the second half of 2019 and an estimated capital expenditure of approximately $20 million.
The company also held a successful open season to solicit interest for the Lambertville-East project, which will provide 60,000 Dth/d of firm transportation service on Texas Eastern's Zone M3 near Lambertville, New Jersey. The Texas Eastern expansion project is scheduled to be placed into service in the second half of 2019 and has an estimated capital expenditure of approximately $50 million.
"These projects are primarily driven by sustained demand growth and represent our ability to continue securing opportunities to grow our base business and leverage our existing asset footprint," Yardley said.
Development Projects
Access Northeast's partners continue to pursue a viable commercial and operational model to support New England's emission and reliability goals. The project's partners continue to discuss the gravity of New England's peak energy supply situation with regional policymakers, including in Massachusetts, where there is no recent legislation clarifying electric utilities' ability to sign natural gas supply contracts, and in New Hampshire, where an interpretation of the electric utilities' ability to do so is pending before the Supreme Court. Additionally, ISO-New England continues to express deep concern over the region's natural gas infrastructure constraints, and in the next several months plans to issue a report on the challenges New England will face during peak demand time if no significant natural gas transmission capacity is built into the region.
2017 GUIDANCE
Spectra Energy Partners expects 2017 DCF within the range of $1.4 billion to $1.48 billion. The partnership reaffirmed plans for quarterly penny-and-a-quarter distribution increases through 2017, and a coverage ratio within its targeted range of 1.05 to 1.15 times.
ADDITIONAL INFORMATION
Additional information about 2017 guidance and first quarter 2017 earnings can be obtained via the Spectra Energy Partners website: www.spectraenergypartners.com.
Spectra Energy Partners will host a joint webcast with Enbridge Inc. (TSX, NYSE: ENB) on May 11 at 8 a.m. CT.
The webcast will be available via the Spectra Energy Partners Events & Presentations page, and the conference call can be accessed by dialing (866) 215-5508 in North America or (514) 841-2157 outside North America. The participant passcode is 44798051#.
A replay of the call will be available via the Spectra Energy Partners Events & Presentations page, or by dialing (888) 843-7419 in North America or (630) 652-3042 outside North America and using the above passcode.
Non-GAAP Financial Measures
We use ongoing net income from controlling interests as a measure to evaluate operations of the partnership. This measure is a non-GAAP financial measure as it represents net income from controlling interests, excluding special items. Special items represent certain charges and credits which we believe will not be recurring on a regular basis. We believe that the presentation of ongoing net income from controlling interests provides useful information to investors, as it allows investors to more accurately compare our ongoing performance across periods. The most directly comparable GAAP measure for ongoing net income from controlling interests is net income from controlling interests.
We use earnings from continuing operations before interest, income taxes, and depreciation and amortization (EBITDA) and ongoing EBITDA, non-GAAP financial measures, as performance measures for Spectra Energy Partners, LP. Ongoing EBITDA represents EBITDA, excluding special items. We believe that the presentation of EBITDA and ongoing EBITDA provides useful information to investors, as it allows investors to more accurately compare Spectra Energy Partners, LP's performance across periods. The most directly comparable GAAP measure for EBITDA and ongoing EBITDA for Spectra Energy Partners, LP is net income.
The primary performance measures used by us to evaluate segment performance are segment EBITDA and Other EBITDA. We consider segment EBITDA and Other EBITDA, which are the GAAP measures used to report segment results, to be good indicators of each segment's operating performance from its continuing operations as they represent the results of our segments' operations before depreciation and amortization without regard to financing methods or capital structures. Our segment EBITDA and Other EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate EBITDA in the same manner.
We also use ongoing segment EBITDA as a measure of performance. Ongoing segment EBITDA is a non-GAAP financial measure, as it represents reported segment EBITDA, excluding special items. We believe that the presentation of ongoing segment EBITDA provides useful information to investors, as it allows investors to more accurately compare a segment's ongoing performance across periods. The most directly comparable GAAP measure for ongoing segment EBITDA is segment EBITDA.
We also present Distributable Cash Flow (DCF), which is a non-GAAP financial measure. We believe that the presentation of DCF provides useful information to investors, as it represents the cash generation capabilities of the partnership to support distribution growth. We also use ongoing DCF, which is a non-GAAP financial measure, as it represents DCF, excluding the cash effect of special items. The most directly comparable GAAP measure for DCF and ongoing DCF is net income. We also use DCF coverage, which is a non-GAAP financial measure, as it represents DCF divided by distributions declared on partnership units. The most directly comparable GAAP measure for DCF coverage is Earnings-Per-Unit (EPU).
The non-GAAP financial measures presented in this press release should not be considered in isolation or as an alternative to financial measures presented in accordance with GAAP. These non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships because other partnerships may not calculate these measures in the same manner.
Forward-Looking Statements
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on our beliefs and assumptions. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. Factors that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to: state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an effect on rate structure, and affect the speed at and degree to which competition enters the natural gas and oil industries; outcomes of litigation and regulatory investigations, proceedings or inquiries; weather and other natural phenomena, including the economic, operational and other effects of hurricanes and storms; the timing and extent of changes in commodity prices, interest rates and foreign currency exchange rates; general economic conditions, including the risk of a prolonged economic slowdown or decline, or the risk of delay in a recovery, which can affect the long-term demand for natural gas and oil and related services; potential effects arising from terrorist attacks and any consequential or other hostilities; changes in environmental, safety and other laws and regulations; the development of alternative energy resources; results and costs of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings and general market and economic conditions; increases in the cost of goods and services required to complete capital projects; declines in the market prices of equity and debt securities and resulting funding requirements for defined benefit pension plans; growth in opportunities, including the timing and success of efforts to develop U.S. and Canadian pipeline, storage, gathering, processing and other related infrastructure projects and the effects of competition; the performance of natural gas and oil transmission and storage, distribution, and gathering and processing facilities; the extent of success in connecting natural gas and oil supplies to gathering, processing and transmission systems and in connecting to expanding gas and oil markets; the effects of accounting pronouncements issued periodically by accounting standard-setting bodies; conditions of the capital markets during the periods covered by forward-looking statements; and the ability to successfully complete merger, acquisition or divestiture plans; regulatory or other limitations imposed as a result of a merger, acquisition or divestiture; and the success of the business following a merger, acquisition or divestiture. These factors, as well as additional factors that could affect our forward-looking statements, are described under the headings "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Information" in our 2016 Form 10-K, filed on February 24, 2017, and in our other filings made with the Securities and Exchange Commission (SEC), which are available via the SEC's website at www.sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. All forward-looking statements in this release are made as of the date hereof and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Spectra Energy Partners, LP (NYSE: SEP), an Enbridge Inc. company, is a Houston-based master limited partnership. SEP is one of the largest pipeline MLPs in the United States and connects growing supply areas to high-demand markets for natural gas and crude oil. These assets include more than 15,000 miles of transmission pipelines, approximately 170 billion cubic feet of natural gas storage, and approximately 5.6 million barrels of crude oil storage.
|
Spectra Energy Partners, LP | |||||||||
|
Quarterly Highlights | |||||||||
|
March 2017 | |||||||||
|
(Unaudited) | |||||||||
|
(In millions, except per-unit amounts) | |||||||||
|
Reported - These results include the impact of special items | |||||||||
|
Three Months Ended |
|||||||||
|
March 31, |
|||||||||
|
2017 |
2016 |
||||||||
|
INCOME |
|||||||||
|
Operating Revenues |
$ |
700 |
$ |
624 |
|||||
|
Total Reportable Segment EBITDA |
545 |
467 |
|||||||
|
Net Income - Controlling Interests |
317 |
298 |
|||||||
|
EBITDA BY BUSINESS SEGMENT |
|||||||||
|
U.S. Transmission |
$ |
479 |
$ |
411 |
|||||
|
Liquids |
66 |
56 |
|||||||
|
Total Reportable Segment EBITDA |
545 |
467 |
|||||||
|
Other EBITDA |
(46) |
(20) |
|||||||
|
Total Reportable Segment and Other EBITDA |
$ |
499 |
$ |
447 |
|||||
|
PARTNERS' CAPITAL |
|||||||||
|
Declared Cash Distribution per Limited Partner Unit |
$ |
0.70125 |
$ |
0.65125 |
|||||
|
Weighted Average Units Outstanding |
|||||||||
|
Limited Partner Units |
309 |
285 |
|||||||
|
General Partner Units |
6 |
6 |
|||||||
|
DISTRIBUTABLE CASH FLOW |
|||||||||
|
Distributable Cash Flow |
$ |
356 |
$ |
371 |
|||||
|
CAPITAL AND INVESTMENT EXPENDITURES (a) |
|||||||||
|
Capital expenditures - U.S. Transmission |
$ |
732 |
$ |
452 |
|||||
|
Capital expenditures - Liquids |
6 |
16 |
|||||||
|
Investment expenditures |
70 |
27 |
|||||||
|
Total |
$ |
808 |
$ |
495 |
|||||
|
U.S. TRANSMISSION |
|||||||||
|
Operating Revenues |
$ |
596 |
$ |
538 |
|||||
|
Operating Expenses |
|||||||||
|
Operating, Maintenance and Other |
200 |
172 |
|||||||
|
Other Income and Expenses |
83 |
45 |
|||||||
|
EBITDA |
$ |
479 |
$ |
411 |
|||||
|
LIQUIDS |
|||||||||
|
Operating Revenues |
$ |
104 |
$ |
86 |
|||||
|
Operating Expenses |
|||||||||
|
Operating, Maintenance and Other |
37 |
31 |
|||||||
|
Other Income and Expenses |
(1) |
1 |
|||||||
|
EBITDA |
$ |
66 |
$ |
56 |
|||||
|
Express Pipeline Revenue Receipts, MBbl/d (b) |
271 |
233 |
|||||||
|
Platte PADD II Deliveries, MBbl/d |
146 |
124 |
|||||||
|
Canadian Dollar Exchange Rate, Average |
1.32 |
1.37 |
|||||||
|
March 31, |
December 31, |
||||||||
|
2017 |
2016 |
||||||||
|
Debt |
7,678 |
7,213 |
|||||||
|
Actual Units Outstanding |
316 |
315 |
|||||||
|
(a) Excludes contributions received from noncontrolling interests of $290 million in 2017 and $95 million in 2016. | |||||||||
|
(b) Thousand barrels per day. | |||||||||
|
Spectra Energy Partners, LP |
|||||||||||
|
Condensed Consolidated Statements of Operations |
|||||||||||
|
(Unaudited) |
|||||||||||
|
(In millions) |
|||||||||||
|
Reported - These results include the impact of special items |
|||||||||||
|
Three Months Ended |
|||||||||||
|
2017 |
2016 |
||||||||||
|
Operating Revenues |
$ |
700 |
$ |
624 |
|||||||
|
Operating Expenses |
368 |
300 |
|||||||||
|
Operating Income |
332 |
324 |
|||||||||
|
Other Income and Expenses |
83 |
47 |
|||||||||
|
Interest Expense |
56 |
56 |
|||||||||
|
Earnings Before Income Taxes |
359 |
315 |
|||||||||
|
Income Tax Expense |
5 |
4 |
|||||||||
|
Net Income |
354 |
311 |
|||||||||
|
Net Income - Noncontrolling Interests |
37 |
13 |
|||||||||
|
Net Income - Controlling Interests |
$ |
317 |
$ |
298 |
|||||||
|
Spectra Energy Partners, LP | |||||||||||
|
Condensed Consolidated Balance Sheets | |||||||||||
|
(Unaudited) | |||||||||||
|
(In millions) | |||||||||||
|
March 31, |
December 31, | ||||||||||
|
2017 |
2016 | ||||||||||
|
ASSETS |
|||||||||||
|
Current Assets |
$ |
685 |
$ |
660 |
|||||||
|
Investments and Other Assets |
4,532 |
4,469 |
|||||||||
|
Net Property, Plant and Equipment |
16,795 |
16,092 |
|||||||||
|
Regulatory Assets and Deferred Debits |
409 |
385 |
|||||||||
|
Total Assets |
$ |
22,421 |
$ |
21,606 |
|||||||
|
LIABILITIES AND EQUITY |
|||||||||||
|
Current Liabilities |
$ |
2,199 |
$ |
1,779 |
|||||||
|
Long-term Debt |
6,212 |
6,223 |
|||||||||
|
Deferred Credits and Other Liabilities |
197 |
200 |
|||||||||
|
Equity |
13,813 |
13,404 |
|||||||||
|
Total Liabilities and Equity |
$ |
22,421 |
$ |
21,606 |
|||||||
|
Spectra Energy Partners, LP | |||||
|
Distributable Cash Flow | |||||
|
(Unaudited) | |||||
|
(In Millions) | |||||
|
Reported - These results include the impact of special items | |||||
|
Three Months Ended |
|||||
|
2017 |
2016 |
||||
|
Net Income |
$ 354 |
$ 311 |
|||
|
Add: |
|||||
|
Interest expense |
56 |
56 |
|||
|
Income tax expense |
5 |
4 |
|||
|
Depreciation and amortization |
85 |
77 |
|||
|
Foreign currency (gain) loss |
- |
(1) |
|||
|
Less: |
|||||
|
Third party interest income |
1 |
- |
|||
|
EBITDA |
499 |
447 |
|||
|
Add: |
|||||
|
Earnings from equity investments |
(38) |
(27) |
|||
|
Distributions from equity investments |
38 |
65 |
|||
|
Other |
1 |
2 |
|||
|
Less: |
|||||
|
Interest expense |
56 |
56 |
|||
|
Equity AFUDC |
45 |
17 |
|||
|
Net cash paid for income taxes |
5 |
1 |
|||
|
Distributions to non-controlling interests |
12 |
7 |
|||
|
Maintenance capital expenditures |
26 |
35 |
|||
|
Total Distributable Cash Flow |
$ 356 |
$ 371 |
|||
|
Spectra Energy Partners, LP |
|||||||||||||||
|
Reported to Ongoing Earnings Reconciliation |
|||||||||||||||
|
March 2017 Year-to-Date |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
(In millions) |
|||||||||||||||
|
SEGMENT EARNINGS BEFORE INTEREST, TAXES, AND |
Reported Earnings |
Less: Special Items |
Ongoing Earnings |
||||||||||||
|
U.S. Transmission |
$ |
479 |
$ |
(20) |
A |
$ |
499 |
||||||||
|
Liquids |
66 |
(2) |
B |
68 |
|||||||||||
|
Total Reportable Segment EBITDA |
545 |
(22) |
567 |
||||||||||||
|
Other |
(46) |
(24) |
B |
(22) |
|||||||||||
|
Total Reportable Segment and other EBITDA |
$ |
499 |
$ |
(46) |
$ |
545 |
|||||||||
|
EARNINGS |
|||||||||||||||
|
Total Reportable Segment EBITDA and Other EBITDA |
$ |
499 |
$ |
(46) |
$ |
545 |
|||||||||
|
Depreciation and Amortization |
(85) |
— |
(85) |
||||||||||||
|
Interest Expense |
(56) |
— |
(56) |
||||||||||||
|
Other Income and Expenses |
1 |
— |
1 |
||||||||||||
|
Income Tax Expense |
(5) |
— |
(5) |
||||||||||||
|
Total Net Income |
354 |
(46) |
400 |
||||||||||||
|
Total Net Income - Noncontrolling Interests |
(37) |
— |
(37) |
||||||||||||
|
Total Net Income - Controlling Interests |
$ |
317 |
$ |
(46) |
$ |
363 |
|||||||||
|
A - Primarily merger-related severance costs and $2 million in expense related to the 2016 Texas Eastern pipeline incident |
|||||||||||||||
|
B - Primarily merger-related severance costs |
|||||||||||||||
|
Spectra Energy Partners, LP |
||||||||
|
Reported to Ongoing Earnings Reconciliation |
||||||||
|
March 2016 Year-to-Date |
||||||||
|
(Unaudited) |
||||||||
|
(In millions) |
||||||||
|
SEGMENT EARNINGS BEFORE INTEREST, TAXES, AND |
Reported/ Ongoing |
|||||||
|
U.S. Transmission |
$ |
411 |
||||||
|
Liquids |
56 |
|||||||
|
Total Reportable Segment EBITDA |
467 |
|||||||
|
Other |
(20) |
|||||||
|
Total Reportable Segment and other EBITDA |
$ |
447 |
||||||
|
EARNINGS |
||||||||
|
Total Reportable Segment EBITDA and Other EBITDA |
$ |
447 |
||||||
|
Depreciation and Amortization |
(77) |
|||||||
|
Interest Expense |
(56) |
|||||||
|
Other Income and Expenses |
1 |
|||||||
|
Income Tax Expense |
(4) |
|||||||
|
Total Net Income |
311 |
|||||||
|
Total Net Income - Noncontrolling Interests |
(13) |
|||||||
|
Total Net Income - Controlling Interests |
$ |
298 |
||||||
|
Spectra Energy Partners, LP | |||||||||
|
Reported to Ongoing Distributable Cash Flow Reconciliation | |||||||||
|
Unaudited | |||||||||
|
(In millions) | |||||||||
|
Three Months Ended | |||||||||
|
March 31, 2017 |
March 31, 2016 | ||||||||
|
Reported |
Less: |
Ongoing |
Reported/ | ||||||
|
Net Income |
$ 354 |
$ (46) |
$ 400 |
$ 311 | |||||
|
Add: |
|||||||||
|
Interest expense |
56 |
- |
56 |
56 | |||||
|
Income tax expense |
5 |
- |
5 |
4 | |||||
|
Depreciation and amortization |
85 |
- |
85 |
77 | |||||
|
Foreign currency loss |
- |
- |
- |
(1) | |||||
|
Less: |
|||||||||
|
Third party interest income |
1 |
- |
1 |
- | |||||
|
EBITDA |
499 |
(46) |
545 |
447 | |||||
|
Add: |
|||||||||
|
Earnings from equity investments |
(38) |
- |
(38) |
(27) | |||||
|
Distributions from equity investments |
38 |
- |
38 |
65 | |||||
|
Other |
1 |
- |
1 |
2 | |||||
|
Less: |
|||||||||
|
Interest expense |
56 |
- |
56 |
56 | |||||
|
Equity AFUDC |
45 |
- |
45 |
17 | |||||
|
Net cash paid for income taxes |
5 |
- |
5 |
1 | |||||
|
Distributions to non-controlling interests |
12 |
- |
12 |
7 | |||||
|
Maintenance capital expenditures |
26 |
1 |
25 |
35 | |||||
|
Total Distributable Cash Flow |
$ 356 |
$ (47) |
$ 403 |
$ 371 | |||||
SOURCE Spectra Energy Partners, LP
Article Date
5/10/2017Midcoast Energy Partners to Be Removed from the Alerian Small Cap MLP Index
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, April 27, 2017 /PRNewswire/ -- Alerian announced today that Midcoast Energy Partners (NYSE: MEP) will be removed from the Alerian Small Cap MLP Index (AMSI) in a special rebalancing.
Special rebalancings are triggered by corporate actions such as mergers, bankruptcies, and liquidations. MEP has ceased to trade due to its go-private transaction with Enbridge Inc (TSX: ENB). The rebalancing will take place today after market close.
The index will be rebalanced in accordance with its existing methodology. Constituent additions to and deletions from the index do not reflect an opinion by Alerian on the investment merits of the respective securities.
About the Alerian Small Cap MLP Index
The Alerian Small Cap MLP Index is a composite of small-cap energy Master Limited Partnerships (MLPs). The capitalization-weighted index, which represents approximately 10% of total market capitalization, is disseminated real-time on a price-return basis (AMSI) and on a total-return basis (AMSIX).
About Alerian
Alerian equips investors to make informed decisions about Master Limited Partnerships (MLPs) and energy infrastructure. Its benchmarks, including the flagship Alerian MLP Index (AMZ), are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of March 31, 2017, over $17 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
SOURCE Alerian
Article Date
4/27/2017Enbridge Inc. to Host a Joint Webcast with Enbridge Income Fund Holdings Inc., Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP to Discuss First Quarter Financial Results on May 11
Source: PR Newswire
CALGARY, Alberta, April 21, 2017 /PRNewswire/ -- Enbridge Inc. (TSX, NYSE: ENB) (Enbridge) will host a joint conference call and webcast with Enbridge Income Fund Holdings Inc. (TSX: ENF), Enbridge Energy Partners, L.P. (NYSE: EEP) and Spectra Energy Partners, LP (NYSE: SEP) to provide an enterprise wide business update and review 2017 first quarter financial results on May 11 at 7:00 a.m. MT (9:00 a.m. ET). Enbridge and Enbridge Income Fund Holdings will announce first quarter earnings results before markets open on May 11, while Enbridge Energy Partners and Spectra Energy Partners will announce first quarter earnings results after markets close on May 10, 2017.
First Quarter 2017 Earnings Webcast and Conference Call
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When: |
Thursday, May 11, 2017 | |
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7:00 a.m. MT (9:00 a.m. ET) | ||
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Webcast: |
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Call: |
Dial-in # (Audio only – please dial in 10 minutes ahead): | |
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North America Toll Free: |
1 (866) 215-5508 | |
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Outside North America: |
1 (514) 841-2157 | |
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Participant Passcode: |
44798051# | |
A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the various website within approximately 24 hours after the event.
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Replay: |
Audio Replay # (Available for 7 days after call): | |
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North America Toll Free: |
1 (888) 843-7419 | |
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Outside North America |
1 (630) 652-3042 | |
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Replay Passcode: |
44798051# | |
The question and answer format of the call has changed to take questions only from the analyst and investor community on the call. Enbridge's media and investor relations teams will be available after the call for any additional questions.
Forward-Looking Statements Advisory
The conference call will cover each of Enbridge Inc., Enbridge Income Fund Holdings Inc., Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP's (collectively, the Entities) most recent financial results and may contain forward-looking statements. When used in the call, words such as "anticipate", "expect", "project", and similar expressions are intended to identify such forward-looking statements. Although each of the Entities believes that its respective statements are or will be based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, economic conditions, commodity prices and other matters. You can find a discussion of those assumptions, risks and uncertainties in the Canadian securities law and/or American SEC filings for the applicable Entity. While each Entity makes its respective forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, no Entity assumes any obligation to publicly update or revise any forward-looking statements made herein, on the call or otherwise, whether as a result of new information, future events or otherwise.
About Enbridge Inc.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline, and accounts for nearly 68% of U.S.-bound Canadian crude oil production, and moves approximately 20% of all natural gas consumed in the U.S. serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.5 million retail customers in Ontario, Quebec, New Brunswick and New York State. Enbridge also has a growing involvement in electricity infrastructure with interests in more than 2,500 MW of net renewable generating capacity, and an expanding offshore wind portfolio in Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past eight years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.
About Enbridge Income Fund Holdings Inc.
Enbridge Income Fund Holdings Inc. is a publicly traded corporation. EIFH, through its investment in Enbridge Income Fund indirectly holds high quality, low- risk energy infrastructure assets. Enbridge Income Fund's assets consist of a portfolio of Canadian liquids transportation and storage businesses, including the Canadian Mainline, the Regional Oil Sands System, the Canadian segment of the Southern Lights Pipeline, Class A units entitling the holder to receive defined cash flows from the US segment of the Southern Lights Pipeline, a 50 percent interest in the Alliance Pipeline, which transports natural gas from Canada to the U.S., and interests in more than 1,400 MW of renewable and alternative power generation assets. Information about Enbridge Income Fund Holdings Inc. is available on EIFH's website at www.enbridgeincomefund.com.
About Enbridge Energy Partners, L.P.
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil and, through its interests in Midcoast Energy Partners, L.P. (Midcoast Partners) (NYSE: MEP), natural gas transportation systems in the United States. Its principal crude oil system is the largest pipeline transporter of growing oil production from western Canada and the North Dakota Bakken formation. The system's deliveries to refining centers and connected carriers in the United States account for approximately 23 percent of total U.S. oil imports. Midcoast Partners' natural gas gathering, treating, processing and transmission assets, which are principally located onshore in the active U.S. Mid-Continent and Gulf Coast areas, deliver approximately 1.5 billion cubic feet of natural gas daily.
About Spectra Energy Partners, LP
Spectra Energy Partner, LP (NYSE: SEP), an indirect, wholly-owned subsidiary of Enbridge Inc., is a Houston-based master limited partnership. SEP is one of the largest pipeline MLPs in the United States and connects growing supply areas to high-demand markets for natural gas and crude oil. These assets include more than 15,000 miles of transmission pipelines, approximately 170 billion cubic feet of natural gas storage, and approximately 5.6 million barrels of crude oil storage.
SOURCE Spectra Energy Partners, LP
Article Date
4/21/2017Enview Appoints Energy Industry Leader Terrance McGill to Board of Advisors
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
SAN FRANCISCO, March 29, 2017 /PRNewswire/ -- Enview announced today that Terrance "Terry" McGill, former President of Enbridge Energy Partners (entity of Enbridge, Inc., NYSE: ENB, $68Bn in market cap), was appointed to the company's board of advisors.
"Terry is a highly recognized executive leader in the U.S. pipeline industry with 40 years of diversified experience in the natural gas industry. We are delighted that he has joined Enview's board of advisors," said San Gunawardana, Enview CEO.
Mr. McGill is a recently retired oil and gas executive with leadership roles at Northern Natural Gas, Enron, Columbia Pipeline Group, NiSource and Enbridge Energy. He has expertise in interstate transportation and gathering and processing. Mr. McGill is a skilled executive in leadership development, organizational restructuring, investor relations and capital market transactions.
"The Enview team has brought mission-critical data analytics to the energy industry. I believe the future winners in energy will be the companies that take advantage of the increasing amounts of big data to avoid incidents and manage costs. Enview makes it easy to understand big data and then turn that data into information companies use to prevent incidents along the pipeline," McGill said. "I am excited to join Enview as an advisor."
Terry McGill is currently a director on the board of the Houston Chapter of the American Red Cross. Mr. McGill is a former chairman of the Texas Pipeline Association and was a member of the North American Energy Standards Board. He has served as a member of the board of directors of the Southern Gas Association; on the executive board of the New Mexico Oil and Gas Association; and on the Pacific Coast Gas Association executive marketing board. Terry has also served as vice chairman of the United Way of the Texas Gulf Coast campaign.
About Enview
Enview is the leader in geospatial data analytics for the energy industry. The company quantifies human activity, infrastructure health, and changes to the natural environment to generate actionable insights. Clients apply those insights to prevent damage to their pipelines and powerlines while enhancing safety and compliance. Enview uses powerful computer vision and large-scale computing to see more than what the human eye can.
SOURCE Enview
Article Date
3/29/20172/27/2017 - Spectra Energy Partners Announces Change in General Partner and Appointment of New Directors and Officers
Spectra Energy Partners Announces Change in General Partner and Appointment of New Directors and Officers
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Feb. 27, 2017 /PRNewswire/ -- Spectra Energy Partners, LP (NYSE: SEP) (SEP) announced that, effective today, its general partner became an indirect, wholly-owned subsidiary of Enbridge Inc. (TSX, NYSE: ENB) (Enbridge), as a result of the completion of the combination of Enbridge and Spectra Energy Corp.
In conjunction with this change, effective today, Bill Yardley will assume the role of Chairman and President of the general partner of SEP. Greg Ebel, Pat Reddy, and Reggie Hedgebeth are resigning, effective today, from their roles as Chairman, President and CEO; Chief Financial Officer; and General Counsel, respectively, of the general partner of SEP.
"I want to thank our outgoing management team and directors for their dedication and service, and for establishing Spectra Energy Partners as a best-in-class MLP investment. We look forward to continuing that record of accomplishment," Mr. Yardley said. "The stable underpinnings of our business and our strategic and competitive asset footprint – with virtually no direct commodity or volume risk, high-quality demand-pull customers, excellent liquidity, and access to favorable capital markets – will continue to generate the steady cash flows that have benefited our unitholders for the past decade."
Mr. Yardley, John Whelen, Enbridge Executive Vice President and Chief Financial Officer; Vern Yu, Enbridge Executive Vice President and Chief Development Officer; and Laura Sayavedra, Enbridge Vice President of Sponsored Vehicles, will serve as management directors of the board of directors. J.D. Woodward, III, and Nora Brownell will continue to serve as non-management directors, along with new non-management director Michael G. Morris.
In addition to Mr. Ebel, Dorothy Ables, Julie Dill, and Fred Fowler have resigned, effective today, from the board of directors of the general partner of SEP.
Spectra Energy Partners, LP (NYSE: SEP), an indirect, wholly-owned subsidiary of Enbridge Inc. (TSX, NYSE: ENB), is a Houston-based master limited partnership. SEP is one of the largest pipeline MLPs in the United States and connects growing supply areas to high-demand markets for natural gas and crude oil. These assets include more than 15,000 miles of transmission pipelines, approximately 170 billion cubic feet of natural gas storage, and approximately 5.6 million barrels of crude oil storage. For more information, visit www.spectraenergypartners.com.
SOURCE Spectra Energy Partners, LP
Article Date
2/27/2017Spectra Energy to Be Removed from the Alerian Energy Infrastructure Index
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, Feb. 23, 2017 /PRNewswire/ -- Alerian announced that following the close of business today, Spectra Energy (NYSE: SE) will be removed from the Alerian Energy Infrastructure Index (AMEI) in a special rebalancing.
The merger between Enbridge Energy (NYSE: ENB) and Spectra Energy was approved on December 15, 2016 by ENB and SE's shareholders and, as of this morning, all required regulatory clearances under the merger agreement have now been met.
The index will be rebalanced in accordance with its existing methodology. Constituent additions to and deletions from the index do not reflect an opinion by Alerian on the investment merits of the respective securities.
About the Alerian Energy Infrastructure Index
The Alerian Energy Infrastructure Index is a composite of North American energy infrastructure companies. The capped, float-adjusted, capitalization-weighted index, whose constituents are engaged in midstream activities involving energy commodities, is disseminated real-time on a price-return basis (AMEI) and on a total-return basis (AMEIX).
About Alerian
Alerian equips investors to make informed decisions about Master Limited Partnerships (MLPs) and energy infrastructure. Its benchmarks, including the flagship Alerian MLP Index (AMZ), are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of December 31, 2016, over $17 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
SOURCE Alerian
Article Date
2/23/2017Enbridge and Spectra Energy Merger Expected to Close February 27, 2017
Source: PR Newswire
Highlights
- All conditions in merger agreement have been met; Transaction expected to close on February 27
- The combined company will be a global energy infrastructure leader and the largest energy infrastructure company in North America with roughly C$166 billion (US$126 billion) enterprise value
- Leading strategic business platforms including liquids and natural gas pipelines, natural gas distribution utilities and renewable power generation
- Industry leading C$27 billion (US$21 billion) of secured growth projects and approximately C$48 billion (US$37 billion) of probability weighted projects under development drives transparent long-term cash flow growth
- 10 to 12 percent average annual dividend increases expected from 2018 through 2024
- Strong, investment grade balance sheet
- Expected run-rate synergies of pre-tax C$540 million (US$415 million) by 2019, and estimated tax savings of C$260 million (US$200 million) beginning in 2019
CALGARY, Alberta and HOUSTON, Feb. 23, 2017 /PRNewswire/ -- Enbridge Inc. (TSX, NYSE:ENB) (Enbridge) and Spectra Energy Corp (NYSE:SE) (Spectra Energy) today announced that the previously announced merger of the two companies (the Transaction) has received all required regulatory clearances under the merger agreement, including from the Canadian Competition Bureau, and is expected to close on February 27, 2017.
"We are very pleased to have now received all required regulatory clearances and we look forward to realizing the significant customer and shareholder benefits of combining these two strong companies," said Al Monaco, President and Chief Executive Officer of Enbridge. "With the completion of the Transaction, Enbridge will become a leading global energy infrastructure company and the largest in North America with roughly C$166 billion (US$126 billion) in enterprise value and the strongest liquids and natural gas infrastructure franchises on the continent. We will have a diverse set of low-risk businesses comprised of a best in class network of crude oil, liquids and natural gas pipelines, a large portfolio of strong, regulated gas distribution utilities and a growing renewable power generation platform. The combined company will be positioned to provide integrated services and first and last mile connectivity to virtually all key liquids and gas supply basins and demand markets in North America."
Mr. Monaco added: "A significant amount of collaboration has allowed us to get to this point. The two companies have completed extensive planning in advance of closing and will be focused on a successful integration. Our teams are well prepared to ensure a smooth transition for our customers, employees and other stakeholders, while maintaining a sharp focus on our number one priority – the safety and reliability of our networks. We look forward to realizing the benefits of this strategic combination while delivering the energy people want and need."
Spectra Energy Chief Executive Officer Greg Ebel, who will become chairman of Enbridge once the Transaction closes, said: "By combining the strength of Enbridge with the strength of Spectra Energy, we are creating an unrivaled company that will provide superior value – now and into the future – for our customers, employees, investors and communities. The Transaction will significantly enhance and extend the dividend growth outlook for Spectra Energy shareholders. No other company in our industry will have this kind of high-return, low-risk model that investors value so highly."
Financial Matters
Enbridge expects the Transaction will support its 12 to 14 percent secured ACFFO per share CAGR guidance over the 2015-2019 planning horizon, and will be strongly additive to the Company's growth outlook beyond that timeframe.
As previously announced, following the closing of the Transaction, Enbridge will have a substantial capital project portfolio, including C$27 billion (US$21 billion) of commercially secured growth projects coming into service between 2017 and 2019, and C$48 billion probability-weighted development project portfolio. The growth program is expected to enable the Company to deliver highly visible ongoing dividend growth of 10 to 12 percent per year, on average, through 2024, while maintaining a conservative payout of 50 to 60 percent of ACFFO.
Enbridge is committed to maintaining its financial strength. In order to further reinforce its financial position and help support continued strong investment grade credit ratings, the Transaction was structured as a share for share exchange. No incremental debt will be incurred on closing of the Transaction. In addition, at the time the Transaction was announced last September, Enbridge set a target of monetizing C$2 billion of non-core assets to provide additional financial strength and flexibility. Approximately C$1.7 billion of that C$2 billion target has been achieved through the sale of its South Prairie Region assets and agreements to sell additional non-core assets. Enbridge management has identified other potential divestments that should enable the Company to meet or exceed this target. No follow-on equity offerings by Enbridge are required to complete funding of the combined secured C$27 billion (US$21 billion) secured growth program through 2019.
The combination is expected to achieve annual run-rate synergies of pre-tax C$540 million (US$415 million) by 2019. Detailed plans have been developed to capture a good portion of these synergies in the current year. In addition, the Company expects that approximately C$260 million (US$200 million) of tax savings can be achieved through utilization of tax losses commencing in 2019.
Guidance for the combined company for 2017 will be provided in conjunction with the first quarter financial results. Enbridge expects to provide a business and integration update for investors in June 2017 and is planning an investor conference in December, at which time additional detail on the Company's strategic priorities and long-range financial outlook will be provided.
Governance and Employee Matters
Enbridge announced today a new Board of Directors that will take effect as of the closing of the Transaction. Under the terms of the Transaction, the Board of Directors of Enbridge will consist of eight members designated by Enbridge, including Mr. Monaco (President and CEO), and five members designated by Spectra Energy, including Mr. Ebel as chairman of the board. Besides Mr. Monaco, the directors designated by Enbridge, all of whom currently serve as directors of Enbridge, are Marcel R. Coutu, J. Herb England, Charles W. Fischer, V. Maureen Kempston Darkes, Rebecca B. Roberts, Dan C. Tutcher and Catherine L. Williams. In addition to Mr. Ebel (Chair), the directors designated by Spectra Energy are Pamela L. Carter, Clarence P. Cazalot, Jr., Michael McShane and Michael E.J. Phelps, all of whom currently serve as directors of Spectra Energy.
Concurrent with the closing of the Transaction, David A. Arledge (Chair), James J. Blanchard and George K. Petty will be retiring from the Enbridge board while F. Anthony Comper, Austin A. Adams, Joseph Alvarado, Peter B. Hamilton, Miranda C. Hubbs and Michael G. Morris will be retiring from the Spectra Energy board. Both Mr. Monaco and Mr. Ebel thank those retiring board members for their contributions to the success of their respective companies. "We're grateful to those retiring board members from the two companies for their leadership, dedication, and guidance. They have provided great stewardship to help build the two very strong organizations that we are combining."
Mr. Monaco added that he looks forward to welcoming Spectra Energy employees to Enbridge. "We're bringing together two exceptional teams with strong values and a shared approach to safety, our stakeholders and our communities. We will move forward together, building from our proven strengths to position Enbridge to deliver infrastructure growth opportunities for our customers and continue to create value for our shareholders."
As previously announced, the headquarters of the combined company will be in Calgary, Alberta. Houston, Texas, will be the combined company's gas pipelines business unit center; Edmonton, Alberta, will remain the business unit center for liquids pipelines, with the business unit centers for gas distribution continuing to be based in Ontario. The combined company at close will have approximately 17,000 employees.
Dividends and Stock Listings
Spectra Energy will make its final common share dividend payment on March 1, 2017, to Spectra shareholders of record on February 15, 2017. In January, Enbridge announced a 10 percent increase in its quarterly common share dividend payable on March 1, 2017, to shareholders of record on February 15, 2017. It is expected that the first quarterly common share dividend post-combination will be payable on June 1, 2017, subject to board approval, and is expected to include a further increase to bring the aggregate increase in Enbridge's quarterly dividend to approximately 15 percent above the prevailing quarterly rate in 2016.
Trading in shares of Spectra Energy on the New York Stock Exchange (NYSE) will be suspended effective as of the opening of trading on February 27, 2017. In connection with the completion of the Transaction, the shares of common stock of Spectra Energy will be delisted from the NYSE and will be de-registered under the U.S. Securities Exchange Act of 1934. Common shares of Enbridge will continue to trade on both the NYSE and the Toronto Stock Exchange under the symbol "ENB".
Enbridge Energy Partners, L.P. (NYSE: EEP) and Spectra Energy Partners, LP (NYSE: SEP) will continue to be publicly traded partnerships headquartered in Houston, Texas. Enbridge Income Fund Holdings Inc. (TSX: ENF) will remain a publicly traded corporation headquartered in Calgary, Alberta. At Transaction closing, Midcoast Energy Partners, L.P. (NYSE: MEP)(Midcoast) will be a publicly traded partnership headquartered in Houston; however as announced on January 27, 2017, all of the outstanding publicly held common units of Midcoast are expected to be acquired by an Enbridge affiliate during the second quarter of 2017 and Midcoast would cease to be a publicly listed entity at that time.
About Enbridge Inc.
Enbridge, a Canadian company, exists to fuel people's quality of life, and has done so for more than 65 years. A North American leader in delivering energy, Enbridge has been ranked on the Global 100 Most Sustainable Corporations index for the past eight years. Enbridge operates the world's longest crude oil and liquids transportation system across Canada and the United States and has a significant and growing involvement in natural gas gathering, transmission and midstream business, as well as an increasing involvement in power transmission. Enbridge owns and operates Canada's largest natural gas distribution company, serving residential, commercial and industrial customers in Ontario, Quebec, New Brunswick and New York State. Enbridge has interests in approximately 2,500 MW of net renewable and alternative generating capacity, and continues to expand into wind, solar and geothermal power. Enbridge employs approximately 9,200 people, primarily in Canada and the United States and has been ranked 15 times on the annual Canada's Top 100 Employers list, including the 2017 index. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
ABOUT SPECTRA ENERGY CORP
Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of North America's leading pipeline and midstream companies. Based in Houston, Texas, the company's operations in the United States and Canada include approximately 21,000 miles of natural gas and crude oil pipelines; approximately 300 billion cubic feet of natural gas storage; 5.6 million barrels of crude oil storage; as well as natural gas gathering, processing, and local distribution operations. Spectra Energy is the general partner of Spectra Energy Partners, LP (NYSE: SEP), one of the largest pipeline master limited partnerships in the United States and owner of the natural gas and crude oil assets in Spectra Energy's U.S. portfolio. Spectra Energy also has a 50 percent ownership in DCP Midstream, LLC, which is the general partner of DCP Midstream, LP (NYSE: DCP), the largest natural gas liquids producer and the largest natural gas processor in the United States, and the largest gathering and processing master limited partnership in the United States. Spectra Energy has served North American customers and communities for more than a century. For more information, visit www.spectraenergy.com.
FORWARD-LOOKING INFORMATION
This news release includes certain forward looking statements and information (FLI) to provide Enbridge and Spectra Energy shareholders and potential investors with information about Enbridge, Spectra Energy and their respective subsidiaries and affiliates, including each company's management's respective assessment of Enbridge, Spectra Energy and their respective subsidiaries' future plans and operations, which FLI may not be appropriate for other purposes. FLI is typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words suggesting future outcomes or statements regarding an outlook. All statements other than statements of historical fact may be FLI. In particular, this news release contains FLI pertaining to, but not limited to, information with respect to the following: the Transaction; the combined company's scale, financial flexibility and growth program; future business prospects and performance; annual cost, revenue and financing benefits; the expected ACFFO per share growth; future shareholder returns; annual dividend growth and anticipated dividend increases and payment dates; payout of distributable cash flow; financial strength and ability to fund capital program and compete for growth projects; credit ratings; run-rate and tax synergies; potential asset dispositions; leadership and governance structure; head office and business center locations; delisting and de-registration of the common stock of Spectra Energy; the proposed merger of Midcoast with an indirect wholly-owned subsidiary of Enbridge; and investor communications plans.
Although we believe that the FLI is reasonable based on the information available today and processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. By its nature, FLI involves a variety of assumptions, which are based upon factors that may be difficult to predict and that may involve known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by these FLI, including, but not limited to, the following: the realization of anticipated benefits and synergies of the Transaction and the timing thereof; the success of integration plans; the focus of management time and attention on the Transaction and other disruptions arising from the Transaction; expected future ACFFO; estimated future dividends; financial strength and flexibility; debt and equity market conditions, including the ability to access capital markets on favourable terms or at all; cost of debt and equity capital; expected supply and demand for crude oil, natural gas, natural gas liquids and renewable energy; prices of crude oil, natural gas, natural gas liquids and renewable energy; economic and competitive conditions; expected exchange rates; inflation; interest rates; changes in tax laws and tax rates; credit ratings; completion of growth projects; anticipated in-service dates; capital project funding; success of hedging activities; the ability of management of Enbridge, its subsidiaries and affiliates to execute key priorities, including those in connection with the Transaction and the proposed merger of Midcoast with an indirect wholly-owned subsidiary of Enbridge; availability and price of labour and construction materials; operational performance and reliability; customer, shareholder, regulatory and other stakeholder approvals and support; regulatory and legislative decisions and actions; public opinion; and weather. We caution that the foregoing list of factors is not exhaustive. Additional information about these and other assumptions, risks and uncertainties can be found in applicable filings with Canadian and U.S. securities regulators, including any proxy statement, prospectus or registration statement filed in connection with the Transaction. Due to the interdependencies and correlation of these factors, as well as other factors, the impact of any one assumption, risk or uncertainty on FLI cannot be determined with certainty.
Except to the extent required by law, we assume no obligation to publicly update or revise any FLI, whether as a result of new information, future events or otherwise. All FLI in this news release is expressly qualified in its entirety by these cautionary statements.
NON-GAAP MEASURES
This news release makes reference to non-GAAP measures, including ACFFO and ACFFO per share. ACFFO is defined as cash flow provided by operating activities before changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to non-controlling interests and redeemable non-controlling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management of Enbridge believes the presentation of these measures gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of Enbridge. Management of Enbridge uses ACFFO to assess performance and to set its dividend payout target. These measures are not measures that have a standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and may not be comparable with similar measures presented by other issuers. Additional information on Enbridge's use of non-GAAP measures can be found in Enbridge's Management's Discussion and Analysis (MD&A) available on Enbridge's website and www.sedar.com.
SOURCE Spectra Energy Corp; Enbridge Inc.
Article Date
2/23/2017Enbridge and Spectra Energy Obtain FTC Clearance for their Proposed Combination
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
Final regulatory clearance required for closing is under the Canadian Competition Act
CALGARY, Alberta and HOUSTON, Feb. 16, 2017 /PRNewswire/ -- Enbridge Inc. (TSX, NYSE: ENB) (Enbridge) and Spectra Energy Corp (NYSE: SE) (Spectra Energy) announced today that the U.S. Federal Trade Commission (FTC) has cleared the previously announced proposed combination of the two companies.
As part of the clearance, the FTC today voted to accept a proposed consent decree in which Enbridge and Spectra Energy have agreed, following the closing of their proposed combination, to enact firewalls governing the flow of certain information to Enbridge about the Discovery offshore Gulf of Mexico natural gas pipeline system (Discovery), and to take certain other steps limiting Enbridge's potential influence over actions related to Discovery. Spectra Energy holds an ownership interest in Discovery through its indirect ownership interest in DCP Midstream, LP, which holds a 40 percent ownership interest in Discovery. Enbridge, through an affiliate, also has offshore natural gas gathering operations in the Gulf of Mexico. The FTC's decision is accessible via the following link: https://www.ftc.gov/enforcement/cases-proceedings/161-0215/enbridge-spectra-energy.
With this clearance from the FTC, the proposed combination of Enbridge and Spectra Energy has only one remaining regulatory clearance to secure in order to close the transaction: clearance under the Canadian Competition Act. The companies continue to expect the transaction to close in the first quarter of this year.
About Enbridge Inc.
Enbridge Inc., a Canadian company, exists to fuel people's quality of life, and has done so for more than 65 years. A North American leader in delivering energy, Enbridge has been ranked on the Global 100 Most Sustainable Corporations index for the past eight years. Enbridge operates the world's longest crude oil and liquids transportation system across Canada and the U.S., and has a significant and growing involvement in natural gas gathering, transmission and midstream business, as well as an increasing involvement in power transmission. Enbridge owns and operates Canada's largest natural gas distribution company, serving residential, commercial, and industrial customers in Ontario, Quebec, New Brunswick and New York State. Enbridge has interests in more than 2,200 megawatts of net renewable and alternative generating capacity, and continues to expand into wind, solar and geothermal power. Enbridge employs approximately 10,000 people, primarily in Canada and the U.S., and has been ranked 15 times on the annual Canada's Top 100 Employers list, including the 2017 index. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
About Spectra Energy Corp
Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of North America's leading pipeline and midstream companies. Based in Houston, Texas, the company's operations in the United States and Canada include approximately 21,000 miles of natural gas and crude oil pipelines; approximately 300 billion cubic feet of natural gas storage; 5.6 million barrels of crude oil storage; as well as natural gas gathering, processing, and local distribution operations. Spectra Energy is the general partner of Spectra Energy Partners, LP (NYSE: SEP), one of the largest pipeline master limited partnerships in the United States and owner of the natural gas and crude oil assets in Spectra Energy's U.S. portfolio. Spectra Energy also has a 50 percent ownership in DCP Midstream, LLC, which is the general partner of DCP Midstream, LP (NYSE: DCP), the largest natural gas liquids producer and the largest natural gas processor in the United States, and the largest gathering and processing master limited partnership in the United States. Spectra Energy has served North American customers and communities for more than a century. For more information, visit www.spectraenergy.com.
Forward-Looking Information
Certain information with respect to the proposed combination of Enbridge and Spectra Energy constitutes forward-looking statements. Although Enbridge and Spectra Energy believe these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties, including those pertaining to the timing and completion of the proposed combination. A further discussion of the risks and uncertainties facing Enbridge and Spectra Energy can be found in each company's filings with Canadian and United States securities regulators, as applicable. While Enbridge and Spectra Energy make these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, neither Enbridge nor Spectra Energy assume any obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
SOURCE Spectra Energy Corp; Enbridge Inc.
Article Date
2/16/2017Spectra Energy Stockholders Overwhelmingly Approve Merger With Enbridge
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Dec.15, 2016 /PRNewswire/ -- Spectra Energy Corp (NYSE: SE) ("Spectra Energy") announced that during a special stockholder meeting held earlier today, Spectra Energy stockholders voted overwhelmingly to approve the previously announced combination of Spectra Energy with Enbridge Inc. (TSX, NYSE: ENB) ("Enbridge") in a stock-for-stock merger transaction. Approximately 73 percent of the total outstanding shares of Spectra Energy common stock, and approximately 98 percent of the total shares voted at the meeting, were voted in favor of the transaction. Once the transaction is completed, the combination will create the largest energy infrastructure company in North America and one of the largest globally, with a pro-forma enterprise value of approximately C$165 billion (US$127 billion).1
"Today's vote is a critical milestone that moves us closer to creating, with Enbridge, a true global energy infrastructure leader and the most diversified energy infrastructure company in North America, if not the world," said Greg Ebel, chief executive officer, Spectra Energy. "This is a transformational combination – with multiple platforms for organic growth – that will deliver tangible benefits to all Spectra Energy stakeholders. It diversifies our asset base and creates significant financial flexibility that allows us to continue to compete for – and win – the most significant, attractive growth projects. It will provide an expected annualized 15 percent dividend increase in year one, and is expected to increase and extend future annual dividend growth, from Spectra Energy's current rate of about 8 percent annually, to a range of 10 to 12 percent annually through at least 2024, with greatly enhanced distributable cash flow coverage also expected over this timeframe. We believe that no other company in our industry has that kind of high-return, low-risk model that investors value so highly."
Enbridge shareholders also approved the transaction in a vote held earlier today. Spectra Energy's stockholder approval and Enbridge shareholder approval are conditions to the closing of the transaction, but the completion of the transaction remains subject to certain other customary closing conditions.
Assuming timely receipt of the necessary antitrust and other regulatory approvals, and satisfaction of all other closing conditions in the merger agreement, the parties expect to complete the merger in the first quarter of 2017. Both Spectra Energy and Enbridge continue to work to meet the closing conditions in the merger agreement, and have filed applications with certain regulators. Enbridge has received the confirmation required to complete the transaction from the Minister of Transport under the Canada Transportation Act. On November 21, 2016, the Committee on Foreign Investment in the United States ("CFIUS") accepted the joint voluntary notice by Spectra Energy and Enbridge and began its 30-day review period, which will conclude no later than December 20, 2016, unless the review period is extended by CFIUS. As a standard part of the regulatory approval process for transactions of this type, both companies continue to work closely with the Federal Trade Commission and the Canadian Competition Bureau to expeditiously conclude each of their reviews of the transaction.
Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of North America's leading pipeline and midstream companies. Based in Houston, Texas, the company's operations in the United States and Canada include approximately 21,000 miles of natural gas and crude oil pipelines; approximately 300 billion cubic feet of natural gas storage; 4.8 million barrels of crude oil storage; as well as natural gas gathering, processing, and local distribution operations. Spectra Energy is the general partner of Spectra Energy Partners (NYSE: SEP), one of the largest pipeline master limited partnerships in the United States and owner of the natural gas and crude oil assets in Spectra Energy's U.S. portfolio. Spectra Energy also has a 50 percent ownership in DCP Midstream, the largest producer of natural gas liquids and the largest natural gas processor in the United States. Spectra Energy has served North American customers and communities for more than a century. For more information, visit www.spectraenergy.com.
FORWARD-LOOKING STATEMENTS
This communication includes certain forward looking statements and information ("FLI") to provide Enbridge and Spectra Energy's shareholders and potential investors with information about Enbridge, Spectra Energy and their respective subsidiaries and affiliates, including each company's management's respective assessment of Enbridge, Spectra Energy and their respective subsidiaries' future plans and operations, which FLI may not be appropriate for other purposes. FLI is typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words suggesting future outcomes or statements regarding an outlook. All statements other than statements of historical fact may be FLI. In particular, this document contains FLI pertaining to, but not limited to, information with respect to the proposed transaction jointly announced by Enbridge and Spectra Energy on September 6, 2016.
Although we believe that the FLI is reasonable based on the information available today and processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. By its nature, FLI involves a variety of assumptions, which are based upon factors that may be difficult to predict and that may involve known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by these FLI, including, but not limited to, the following: the timing and completion of the transaction, including receipt of regulatory approvals and the satisfaction of other conditions precedent; interloper risk; the realization of anticipated benefits and synergies of the transaction and the timing thereof; the success of integration plans; the focus of management time and attention on the transaction and other disruptions arising from the transaction; estimated future dividends; financial strength and flexibility; debt and equity market conditions, including the ability to access capital markets on favorable terms or at all; cost of debt and equity capital; potential changes in the Enbridge share price which may negatively impact the value of consideration offered to Spectra Energy shareholders; expected supply and demand for crude oil, natural gas, natural gas liquids and renewable energy; prices of crude oil, natural gas, natural gas liquids and renewable energy; economic and competitive conditions; expected exchange rates; inflation; interest rates; tax rates and changes; completion of growth projects; anticipated in-service dates; capital project funding; success of hedging activities; the ability of management of Enbridge, its subsidiaries and affiliates to execute key priorities, including those in connection with the transaction; availability and price of labor and construction materials; operational performance and reliability; customer, regulatory and other stakeholder approvals and support; regulatory and legislative decisions and actions; public opinion; and weather. We caution that the foregoing list of factors is not exhaustive. Additional information about these and other assumptions, risks and uncertainties can be found in applicable filings with Canadian and U.S. securities regulators, including any proxy statement, prospectus or registration statement to be filed in connection with the transaction. Due to the interdependencies and correlation of these factors, as well as other factors, the impact of any one assumption, risk or uncertainty on FLI cannot be determined with certainty.
Except to the extent required by law, we assume no obligation to publicly update or revise any FLI, whether as a result of new information, future events or otherwise. All FLI in this document is expressly qualified in its entirety by these cautionary statements.
1 Enterprise value is based on the closing price of Enbridge common shares on the NYSE on September 2, 2016, and is translated at the spot foreign exchange rate on September 2 at the close of trading.
SOURCE Spectra Energy Corp
Article Date
12/15/2016Enbridge and Spectra Energy to Combine to Create North America's Premier Energy Infrastructure Company with C$165 Billion Enterprise Value
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
Transaction creates increased scale, asset diversity, financial flexibility and an industry leading secured project portfolio and development project inventory
Highlights:
CALGARY, Alberta and HOUSTON, Texas, Sept. 6, 2016 /PRNewswire/ -- Enbridge Inc. (TSX, NYSE:ENB) (Enbridge) and Spectra Energy Corp (NYSE:SE) (Spectra Energy) today announced that they have entered into a definitive merger agreement under which Enbridge and Spectra Energy will combine in a stock-for-stock merger transaction (the "Transaction"), which values Spectra Energy common stock at approximately C$37 billion (US$28 billion), based on the closing price of Enbridge's common shares on September 2, 2016. The combination will create the largest energy infrastructure company in North America and one of the largest globally based on a pro-forma enterprise value of approximately C$165 billion (US$127 billion). The Transaction was unanimously approved by the Boards of Directors of both companies and is expected to close in the first quarter of 2017, subject to shareholder and certain regulatory approvals, and other customary conditions.
Under the terms of the Transaction, Spectra Energy shareholders will receive 0.984 shares of the combined company for each share of Spectra Energy common stock they own. The consideration to be received by Spectra Energy shareholders is valued at US$40.33 per Spectra Energy share, based on the closing price of Enbridge common shares on September 2, 2016, representing an approximate 11.5 percent premium to the closing price of Spectra Energy common stock on September 2, 2016. Upon completion of the Transaction, Enbridge shareholders are expected to own approximately 57 percent of the combined company and Spectra Energy shareholders are expected to own approximately 43 percent. The combined company will be called Enbridge Inc.
This combination brings together two highly complementary platforms to create North America's largest energy infrastructure company and meaningfully enhances customer optionality. With an asset base that includes a diverse set of best-in-class assets comprised of crude oil, liquids and natural gas pipelines, terminal and midstream operations, a regulated utility portfolio and renewable power generation, the combined company will be positioned to provide integrated services and first and last mile connectivity to key supply basins and demand markets. On a combined basis for the 12 months ended June 30, 2016, the company would have generated combined revenues in excess of C$40 billion (US$31 billion) and combined Earnings before Interest and Taxes (EBIT) of C$5.8 billion (US$4.4 billion), and will have the scale, balance sheet strength, financial flexibility and free cash flow to comfortably fund future growth.
"Over the last two years, we've been focused on identifying opportunities that would extend and diversify our asset base and sources of growth beyond 2019," said Al Monaco, President and Chief Executive Officer, Enbridge Inc. "We are accomplishing that goal by combining with the premier natural gas infrastructure company to create a true North American and global energy infrastructure leader. This Transaction is transformational for both companies and results in unmatched scale, diversity and financial flexibility with multiple platforms for organic growth."
Greg Ebel, President and Chief Executive Officer of Spectra Energy, who will become chairman of Enbridge following the closing of the Transaction, said, "The combination of Enbridge and Spectra Energy creates what we believe will be the best, most diversified energy infrastructure company in North America, if not the world. This is an incredible opportunity for both companies and we at Spectra Energy could not be more excited about what it means going forward. Together, the merged company will have what we believe is the finest platform for serving customers in every region of North America and providing investors with the opportunity for superior shareholder returns."
Mr. Monaco added, "Bringing Enbridge and Spectra Energy together makes strong strategic and financial sense, and the all-stock nature of the Transaction provides shareholders of both companies with the opportunity to participate in the significant upside potential of the combined company. With combined secured projects in execution of C$26 billion (US$20 billion) and another C$48 billion (US$37 billion) of projects under development, the Transaction allows us to extend our anticipated 10-12 percent annual dividend growth through 2024. We believe our combination of best-in-class assets, superior growth and strong commercial underpinning of our business will be unrivaled in our sector. Importantly, we will preserve and enhance our shareholder value proposition, which centers on delivering consistent growth with a low-risk business model.
"This is also a combination of two companies, management and staff that have a shared vision and talented teams that are dedicated to serving customers and providing the energy that people want and need, safely and reliably every day. We look forward to welcoming Spectra Energy employees to Enbridge as we move forward as one company. In building on our existing strengths by joining with Spectra Energy, Enbridge will be very well positioned for future growth and continued value creation."
Mr. Ebel added, "The strength of the combined company will support a large capital program to fund the continued development of Spectra Energy's existing, preeminent project inventory in addition to allowing the combined company to compete for and win the most attractive new growth projects - all while maintaining expected strong dividend growth with exceptional coverage. The transaction premium recognizes the strength of Spectra Energy's world-class natural gas pipeline system and significant expansion program, while providing shareholders the opportunity to participate in the unparalleled value creation potential of the combined company. While our assets are largely complementary, our values are shared, and together we will create a best-in-class company for shareholders, employees, customers, and communities alike."
Compelling Value Proposition
Leadership, Governance and Structure
Upon closing of the Transaction, Al Monaco will continue to serve as President and Chief Executive Officer of the combined company. Greg Ebel will serve as non-executive Chairman of Enbridge's Board of Directors.
Enbridge's Board of Directors is expected to have a total of 13 directors consisting of 8 members designated by Enbridge, including Mr. Monaco, and 5 members designated by Spectra Energy, including Mr. Ebel.
The senior management team of the combined entity will be communicated in due course. On closing, the following appointments will take effect:
Guy Jarvis, President, Liquids Pipelines & Major Projects
Bill Yardley, President, Gas Transmission & Midstream
John Whelen, Executive Vice President & Chief Financial Officer
The headquarters of the combined company will be in Calgary, Alberta. Houston, Texas will be the combined company's gas pipelines business unit center; Edmonton, Alberta will remain the business unit center for liquids pipelines, with gas distribution continuing to be based in Ontario.
Enbridge and Spectra Energy will immediately establish an integration planning team composed of leaders from both management teams to prepare for and oversee the effective and timely integration of the businesses. The approach to integration planning will be collaborative, drawing on strong participation from both companies, and ensuring continuity for customers and other stakeholders.
On closing the Enbridge common shares to be issued in connection with the Transaction will be listed on the TSX and NYSE. Spectra Energy common stock will be delisted from the NYSE.
Financial Considerations
Enbridge expects the Transaction to be neutral to its 12 percent to 14 percent secured ACFFO per share CAGR guidance through the 2014-2019 time period, and strongly additive to its growth beyond that timeframe. Enbridge is committed to maintaining the financial strength of the combined company. The funding program is designed to ensure strengthening of the balance sheet with the objective of maintaining strong investment grade credit ratings. Enbridge expects it will divest of approximately $2 billion of non-core assets over the next 12 months to provide additional financial flexibility.
At closing, Enbridge Energy Partners, LP and Spectra Energy Partners, LP are expected to continue to be publicly traded partnerships headquartered in Houston, Texas. Enbridge Income Fund Holdings will remain a publicly traded corporation headquartered in Calgary, Alberta.
Timing and Approvals
The Transaction is expected to close in the first quarter of 2017 subject to the receipt of both companies' shareholder approvals, along with certain regulatory and government approvals, including compliance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and approval under Canada Competition Act, and the satisfaction of other customary closing conditions.
Advisors
Credit Suisse Securities (Canada), Inc. acted as Lead Financial Advisor and delivered an opinion to Enbridge's Board of Directors. RBC Capital Markets also acted as financial advisor to Enbridge and delivered an opinion to Enbridge's Board of Directors. Sullivan & Cromwell LLP and McCarthy Tétrault LLP were legal advisors to Enbridge.
BMO Capital Markets and Citi acted as Joint Lead Financial Advisors to Spectra Energy's Board of Directors. Wachtell, Lipton, Rosen & Katz and Goodmans LLP acted as legal advisors to Spectra Energy and Skadden, Arps, Slate, Meagher & Flom LLP acted as tax counsel.
CONFERENCE CALL DETAILS
Enbridge and Spectra Energy will hold a joint conference call on September 6, 2016 at 8:00 a.m. Eastern Time (6:00 a.m. Mountain Time) to discuss the Transaction.
The conference call will begin with presentations by Enbridge's President and Chief Executive Officer and Spectra Energy's Chairman, President and Chief Executive Officer, followed by a question and answer period for investment analysts.
Analysts, members of the media and other interested parties can access the call toll-free at 1-866-610-1072 or within and outside North America at 1-973-935-2840 using the access code of 77468882. The call will be audio webcast live at http://event.on24.com/r.htm?e=1261390&s=1&k=27BFA58D1E6D82F42F35E52AF74D0395. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available at toll-free 1-800-585-8367 or within and outside North America at 1-404-537-3406 (access code 77468882) for seven days after the call.
ABOUT ENBRIDGE INC.
Enbridge Inc., a Canadian company, exists to fuel people's quality of life, and has done so for more than 65 years. A North American leader in delivering energy, Enbridge has been ranked on the Global 100 Most Sustainable Corporations index for the past seven years. Enbridge operates the world's longest crude oil and liquids transportation system across Canada and the U.S., and has a significant and growing involvement in natural gas gathering, transmission and midstream business, as well as an increasing involvement in power transmission. Enbridge owns and operates Canada's largest natural gas distribution company, serving residential, commercial, and industrial customers in Ontario, Quebec, New Brunswick and New York State. Enbridge has interests in nearly 2,000 megawatts of net renewable and alternative generating capacity, and continues to expand into wind, solar and geothermal power. Enbridge employs nearly 11,000 people, primarily in Canada and the U.S., and is ranked as one of Canada's Top Employers for 2016.
Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
ABOUT SPECTRA ENERGY CORP
Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of North America's leading pipeline and midstream companies. Based in Houston, Texas, the company's operations in the United States and Canada include approximately 21,000 miles of natural gas and crude oil pipelines; approximately 300 billion cubic feet of natural gas storage; 4.8 million barrels of crude oil storage; as well as natural gas gathering, processing, and local distribution operations. Spectra Energy is the general partner of Spectra Energy Partners (NYSE: SEP), one of the largest pipeline master limited partnerships in the United States and owner of the natural gas and crude oil assets in Spectra Energy's U.S. portfolio. Spectra Energy also has a 50 percent ownership in DCP Midstream, the largest producer of natural gas liquids and the largest natural gas processor in the United States. Spectra Energy has served North American customers and communities for more than a century. For more information, visit www.spectraenergy.com.
FORWARD-LOOKING INFORMATION
This presentation includes certain forward looking statements and information (FLI) to provide Enbridge and Spectra Energy shareholders and potential investors with information about Enbridge, Spectra Energy and their respective subsidiaries and affiliates, including each company's management's respective assessment of Enbridge, Spectra Energy and their respective subsidiaries' future plans and operations, which FLI may not be appropriate for other purposes. FLI is typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words suggesting future outcomes or statements regarding an outlook. All statements other than statements of historical fact may be FLI. In particular, this news release contains FLI pertaining to, but not limited to, information with respect to the following: the Transaction; the combined company's scale, financial flexibility and growth program; future business prospects and performance; annual cost, revenue and financing benefits; the expected ACFFO per share growth; future shareholder returns; annual dividend growth and anticipated dividend increases; payout of distributable cash flow; financial strength and ability to fund capital program and compete for growth projects; run-rate and tax synergies; potential asset dispositions; leadership and governance structure; and head office and business center locations.
Although we believe that the FLI is reasonable based on the information available today and processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. By its nature, FLI involves a variety of assumptions, which are based upon factors that may be difficult to predict and that may involve known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by these FLI, including, but not limited to, the following: the timing and completion of the Transaction, including receipt of regulatory and shareholder approvals and the satisfaction of other conditions precedent; interloper risk; the realization of anticipated benefits and synergies of the Transaction and the timing thereof; the success of integration plans; the focus of management time and attention on the Transaction and other disruptions arising from the Transaction; expected future ACFFO; estimated future dividends; financial strength and flexibility; debt and equity market conditions, including the ability to access capital markets on favourable terms or at all; cost of debt and equity capital; potential changes in the Enbridge share price which may negatively impact the value of consideration offered to Spectra Energy shareholders; expected supply and demand for crude oil, natural gas, natural gas liquids and renewable energy; prices of crude oil, natural gas, natural gas liquids and renewable energy; economic and competitive conditions; expected exchange rates; inflation; interest rates; tax rates and changes; completion of growth projects; anticipated in-service dates; capital project funding; success of hedging activities; the ability of management of Enbridge, its subsidiaries and affiliates to execute key priorities, including those in connection with the Transaction; availability and price of labour and construction materials; operational performance and reliability; customer, shareholder, regulatory and other stakeholder approvals and support; regulatory and legislative decisions and actions; public opinion; and weather. We caution that the foregoing list of factors is not exhaustive. Additional information about these and other assumptions, risks and uncertainties can be found in applicable filings with Canadian and U.S. securities regulators, including any proxy statement, prospectus or registration statement to be filed in connection with the Transaction. Due to the interdependencies and correlation of these factors, as well as other factors, the impact of any one assumption, risk or uncertainty on FLI cannot be determined with certainty.
Except to the extent required by law, we assume no obligation to publicly update or revise any FLI, whether as a result of new information, future events or otherwise. All FLI in this news release is expressly qualified in its entirety by these cautionary statements.
NON-GAAP MEASURES
This news release makes reference to non-GAAP measures, including ACFFO and ACFFO per share. ACFFO is defined as cash flow provided by operating activities before changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to non-controlling interests and redeemable non-controlling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management of Enbridge believes the presentation of these measures gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of Enbridge. Management of Enbridge uses ACFFO to assess performance and to set its dividend payout target. These measures are not measures that have a standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and may not be comparable with similar measures presented by other issuers. Additional information on Enbridge's use of non-GAAP measures can be found in Enbridge's Management's Discussion and Analysis (MD&A) available on Enbridge's website and www.sedar.com.
ADDITIONAL INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND IT
Enbridge will file with the U.S. Securities and Exchange Commission (SEC) a registration statement on Form F-4, which will include a proxy statement of Spectra Energy that also constitutes a prospectus of Enbridge, and any other documents in connection with the Transaction. The definitive proxy statement/prospectus will be sent to the shareholders of Spectra Energy. INVESTORS AND SHAREHOLDERS OF SPECTRA ENERGY ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS, AND ANY OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION WHEN THEY BECOME AVAILABLE, AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT ENBRIDGE, SPECTRA ENERGY, THE TRANSACTION AND RELATED MATTERS. The registration statement and proxy statement/prospectus and other documents filed by Enbridge and Spectra Energy with the SEC, when filed, will be available free of charge at the SEC's website at www.sec.gov. In addition, investors and shareholders will be able to obtain free copies of the proxy statement/prospectus and other documents which will be filed with the SEC by Enbridge on Enbridge's website at www.Enbridge.com or upon written request to Enbridge's Investor Relations department, 200, 425 First St. SW, Calgary, AB T2P 3L8 or by calling 800.481.2804 within North America and 403.231.5957 from outside North America, and will be able to obtain free copies of the proxy statement/prospectus and other documents filed with the SEC by Spectra Energy upon written request to Spectra Energy, Investor Relations, 5400 Westheimer Ct. Houston, TX 77056 or by calling 713.627.4610. You may also read and copy any reports, statements and other information filed by Spectra Energy and Enbridge with the SEC at the SEC public reference room at 100 F Street N.E., Room 1580, Washington, D.C. 20549. Please call the SEC at 800.732.0330 or visit the SEC's website for further information on its public reference room. This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to appropriate registration or qualification under the securities laws of such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.
PARTICIPANTS IN THE SOLICITATION OF PROXIES
This communication is not a solicitation of proxies in connection with the Transaction. However, Enbridge, Spectra Energy, certain of their respective directors and executive officers and certain other members of management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies in connection with the Transaction. Information about Enbridge's directors and executive officers may be found in its Management Information Circular dated March 8, 2016 available on its website at www.Enbridge.com and at www.sedar.com. Information about Spectra Energy's directors, executive officers and other members of management and employees may be found in its 2015 Annual Report on Form 10-K filed with the SEC on February 25, 2016, and definitive proxy statement relating to its 2016 Annual Meeting of Shareholders filed with the SEC on March 16, 2016. These documents can be obtained free of charge from the sources indicated above. Additional information regarding the interests of such potential participants in the solicitation of proxies in connection with the Transaction will be included in the proxy statement/prospectus and other relevant materials filed with the SEC when they become available.
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SOURCE Spectra Energy Corp; Enbridge Inc.
Article Date
9/6/2016Projects & Assets
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Status: (subscriber access)
Enbridge Mainline Optimizations (2022) (subscriber access)
Status: (subscriber access)
Enbridge Southern Lights Reversal Project (subscriber access)
Status: (subscriber access)
Express Pipeline Pumping Expansion (subscriber access)
Status: (subscriber access)
Texas Crude Offshore Loading Terminal (COLT) (subscriber access)
Status: (subscriber access)
East-West Tie Transmission Project (EWT) (subscriber access)
Status: (subscriber access)
Dawn to Parkway Expansion Project (subscriber access)
Status: (subscriber access)
Saint-Nazaire Offshore Wind Farm (subscriber access)
Status: (subscriber access)
Frontier Project - NGL Plant (subscriber access)
Frontier Project - NGL Pipeline (subscriber access)
Enbridge Line 4 Replacement (subscriber access)
Status: (subscriber access)
Annova LNG Project - Brownsville (subscriber access)
Status: (subscriber access)
Jones Creek Crude Oil Storage Terminal (subscriber access)
VCP - Annova LNG Pipeline Extension (subscriber access)
Status: (subscriber access)
Middlesex Extension Project (subscriber access)
Status: (subscriber access)
London Lines Replacement Project (subscriber access)
Status: (subscriber access)
Enbridge Edmonton Power Generation Facility (subscriber access)
Status: (subscriber access)
ETNG Ridgeline Expansion (subscriber access)
Status: (subscriber access)
Genesee CCS Project (subscriber access)
Status: (subscriber access)
VCP Expansion - Texas LNG Project (subscriber access)
Status: (subscriber access)
Dawn to Corunna Replacement Project, (subscriber access)
Status: (subscriber access)
Appalachia to Market II Project (subscriber access)
Status: (subscriber access)
Texas Eastern Modernization Phase II (subscriber access)
Status: (subscriber access)
T-North Capacity Expansion (2028) (subscriber access)
Status: (subscriber access)
Enbridge Venice Extension (subscriber access)
Status: (subscriber access)
Enbridge Solar Self-Powering (subscriber access)
Fécamp Offshore Wind (subscriber access)
Status: (subscriber access)
Fecamp Offshore Wind (subscriber access)
Status: (subscriber access)
Calvados Offshore Wind (subscriber access)
Status: (subscriber access)
Ingleside Phase VI (Storage) (subscriber access)
Status: (subscriber access)
Flanagan South Pipeline Expansion (subscriber access)
Status: (subscriber access)
Enbridge Houston Oil Terminal (subscriber access)
Status: (subscriber access)
Ingleside Low Carbon Ammonia Production & Export Facility (subscriber access)
Status: (subscriber access)
Related Projects
Flanagan South Pipeline Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
2016 Dawn Parkway Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Inc
Union Gas Limited
Access Northeast (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Eversource Energy
National Grid plc
Access South Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Energy Partners, LP
Adair Southwest Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Energy Partners, LP
Alabama Georgia Connector (subscriber access)
Status: (subscriber access)
Parent Entities:
Transcontinental Gas Pipe Line Company
Williams Companies, Inc.
Alberta Clipper (Line 67) Capacity Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Algonquin Incremental Market (AIM) Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Energy Partners, LP
Appalachian Connector (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Athabasca Twin Capacity Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Atlantic Sunrise Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Meade Pipeline Co
Battle Sands Substation Project at Hardisty Terminal (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Bay Of Quinte Replacement Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Inc
Union Gas Limited
Bayway Lateral Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Bear Den Plant – Phase 2 (subscriber access)
Status: (subscriber access)
Parent Entities:
Crestwood Equity Partners LP
Williams Partners L.P.
Beaver Lodge Loop Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Big Foot Oil Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Bluebonnet Market Express Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Bluestem Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Bobcat Gas Storage Cavern 3 (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Bobcat Gas Storage Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Energy Partners, LP
Bradford Gathering Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Brantford-Kirkwall Pipeline project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Inc
Bright Compressor Station (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Inc
Union Gas Limited
Broad Run Connector Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Bucking Horse Processing Plant - Train 2 (subscriber access)
Status: (subscriber access)
Parent Entities:
Crestwood Equity Partners LP
Williams Partners L.P.
Bucking Horse Processing Plant Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Crestwood Equity Partners LP
Williams Partners L.P.
Burlington-Oakville Natural Gas Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Inc
Union Gas Limited
CJ Express Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Midcoast Energy Partners, L.P.
Calvados Offshore Wind (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Cameron Extension Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Cameron Pipeline Expansion Project 2022 (subscriber access)
Status: (subscriber access)
Parent Entities:
Sempra Infrastructure Partners
Williams Companies, Inc.
Canada Mainline Enhancement Phase I (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Canada Mainline Enhancement Phase II (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Carolina Market Link (subscriber access)
Status: (subscriber access)
Parent Entities:
Transcontinental Gas Pipe Line Company
Williams Companies, Inc.
Commonwealth Energy Connector (subscriber access)
Status: (subscriber access)
Parent Entities:
Transcontinental Gas Pipe Line Company
Williams Companies, Inc.
Constitution Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Partners L.P.
Williams Companies, Inc.
Coterra Energy Inc.
Piedmont Natural Gas Co
WGL Holdings Inc
Dakota Access Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Phillips 66
Dakota Access, LLC
MarEn Bakken Pipeline Company LLC
Sunoco Logistics Partners L.P.
Dawn Compressor Station (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Inc
Union Gas Limited
Dawn to Corunna Replacement Project, (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Dawn to Parkway Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Dawn-Parkway Extension Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Union Gas Limited
Spectra Energy Corp.
Diamond East (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
ETNG Ridgeline Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
East Greeley Gathering & Compression Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
East-West Tie Transmission Project (EWT) (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Edmonton Terminal (South) Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Enbridge Edmonton Power Generation Facility (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Enbridge Edmonton to Hardisty Pipeline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Enbridge Houston Oil Terminal (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Enbridge Line 4 Replacement (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Enbridge Line 5 Reroute Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Income Fund Holdings Inc.
Enbridge Line 9 Capacity Expansion Project (subscriber access)
Parent Entities:
Enbridge Inc.
Enbridge Line 9A Reversal (Phase I) Project (subscriber access)
Parent Entities:
Enbridge Inc.
Enbridge Line 9B Reversal (subscriber access)
Parent Entities:
Enbridge Inc.
Enbridge Mainline Optimizations (2019-2021) (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Enbridge Mainline Optimizations (2022) (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Enbridge Solar Self-Powering (subscriber access)
Parent Entities:
Enbridge Inc.
Enbridge Southern Lights Reversal Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Enbridge Venice Extension (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Enbridge Western Canadian Capacity Optimizations (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Energy Transfer Crude Oil Pipeline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Phillips 66
Energy Transfer Crude Oil Company, LLC
MarEn Bakken Pipeline Company LLC
Sunoco Logistics Partners L.P.
Express Pipeline Pumping Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Express Pipeline LLC
Express Pipeline Ltd.
Fecamp Offshore Wind (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Flanagan South Pipeline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Energy Partners, L.P.
Enbridge Pipelines (FSP) L.L.C.
Frontier Project - NGL Pipeline (subscriber access)
Parent Entities:
Enbridge Inc.
Frontier Project - NGL Plant (subscriber access)
Parent Entities:
Enbridge Inc.
Fécamp Offshore Wind (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Garden State Expansion Project Phase 1 (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Garden State Expansion Project Phase 2 (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Gray Oak Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Phillips 66
Enbridge Inc.
Andeavor
Gray Oak Pipeline, LLC
Gray Oak Pipeline Expansion (2022) (subscriber access)
Status: (subscriber access)
Parent Entities:
Gray Oak Pipeline, LLC
Phillips 66
Gulf Markets Expansion Phase I (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Energy Partners, LP
Gulf Markets Expansion Phase II (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Energy Partners, LP
Gulfstream Phase VI Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Harrison Hub C3+ Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Heidelberg Oil Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
High Pine Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Enbridge Inc.
Highbank Westcoast Connector Gas Transmission Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Highbank Resources Ltd
Spectra Energy Corp.
Hillabee Expansion Phase 1 (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Hillabee Expansion Phase 2 (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Hillabee Expansion Phase 3 (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Ingleside Crude Oil Terminal - Berth 4 & 5 Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Moda Midstream
Ingleside Crude Oil Terminal - Capacity Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Moda Midstream
Ingleside Crude Oil Terminal - VLCC Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Moda Midstream
Ingleside Phase VI (Storage) (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
JACOS Pipeline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Jackalope Gathering System Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Crestwood Equity Partners LP
Williams Partners L.P.
Jackalope Gathering System Expansion (2019) (subscriber access)
Status: (subscriber access)
Parent Entities:
Crestwood Equity Partners LP
Williams Partners L.P.
Jackfish Lake Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Enbridge Inc.
Jones Creek Crude Oil Storage Terminal (subscriber access)
Parent Entities:
Enbridge Inc.
Keenesburg I Processing Plant Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Keenesburg II Processing Plant Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Lawrence County Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Pipelines Inc.
Leamington Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Inc
Union Gas Limited
Lebanon Extension Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Energy Partners, LP
Line 10 Replacement Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Line 3 Replacement Program (Canada) (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Line 3 Replacement Program (United States) (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Line 5 Great Lakes Channel Replacement Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Line 5 Tunnel Project (subscriber access)
Parent Entities:
Enbridge (U.S.) Inc
Line 61 Upgrade Project - Phase 1 (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Line 61 Upgrade Project - Phase 2 (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Line 67 Upgrade Project - Phase 1 (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Line 67 Upgrade Project - Phase 2 (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Line 6B Replacement Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Energy Partners, L.P.
Line 78 Pipeline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Energy Partners, L.P.
Lobo Compressor (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Inc
Union Gas Limited
London Lines Replacement Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Louisiana Energy Gateway (LEG) Natural Gas Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Quantum Energy Partners
Milton I Processing Plant (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Milton II Processing Plant (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Moda Ingleside Crude Oil Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Moda Midstream
Moda Ingleside Express Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Moda Midstream
MountainWest Uinta Basin Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
NEXUS Gas Transmission (subscriber access)
Status: (subscriber access)
Parent Entities:
NEXUS Gas Transmission, LLC
New Creek Wind Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Norlite Pipeline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Normandy Wind Farm (subscriber access)
Parent Entities:
Enbridge (U.S.) Inc
EDF Renewable Energy
Northeast Supply Enhancement Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Transcontinental Gas Pipe Line Company
Northern Gateway Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Oak Grove TXP III Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Partners L.P.
Ohio Pipeline Energy Network (OPEN) (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Energy Partners, LP
Overthrust Westbound Expansion (subscriber access)
Parent Entities:
Williams Companies, Inc.
Pacific Connector Gas Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Veresen Inc
Williams Companies, Inc.
Panhandle Reinforcement Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Inc
Union Gas Limited
Panhandle Replacement (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Inc
Parkway West Compressor (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Inc
Union Gas Limited
Powder River Basin Gathering System Expansions (subscriber access)
Status: (subscriber access)
Parent Entities:
Crestwood Equity Partners LP
Williams Partners L.P.
Powder River Basin Processing Plant (subscriber access)
Status: (subscriber access)
Parent Entities:
Crestwood Equity Partners LP
Williams Partners L.P.
RAM Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Rio Bravo Pipeline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Rio Grande LNG, LLC
Rio Bravo Pipeline Company, LLC
Rock Springs Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Salem Lateral Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Energy Partners, LP
Sandpiper Pipeline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
North Dakota Pipeline Company
South Dunes Power Plant Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Veresen Inc
Williams Companies, Inc.
Southeastern Trail Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Southern Access Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Southern Access Extension (SAX) Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Southside Reliability Enhancement (subscriber access)
Status: (subscriber access)
Parent Entities:
Transcontinental Gas Pipe Line Company
Williams Companies, Inc.
Springridge South Plant Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Spruce Ridge Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Stampede Offshore Oil Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Susquehanna Gathering Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
T-North Capacity Expansion (2028) (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
T-South System Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Texas Eastern Appalachia to Market 2014 (TEAM 2014) (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Energy Partners, LP
Texas Eastern Appalachian Lease Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Energy Partners, LP
Texas Express Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Texas Express Pipeline LLC
Enterprise Products Partners
Midcoast Energy Partners, L.P.
Western Midstream Operating, LP
DCP Midstream, LP
Uniontown to Gas City Expansion Project (U2GC) (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Spectra Energy Partners, LP
VCP - Annova LNG Pipeline Extension (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Virginia Southside Expansion Project II (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Partners L.P.
Vito Offshore Pipeline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Williams Gulf Trace Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Partners L.P.
Williams Haynesville CCS Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Wolf Hollow Pipeline Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Wood Buffalo Extension Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Woodland Pipeline Extension Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Enbridge Inc.
Wyndwood Expansion Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Spectra Energy Corp.
Enbridge Inc.
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