10-KPeriod: FY2018

ENBRIDGE INC Annual Report, Year Ended Dec 31, 2018

Filed February 15, 2019For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. reported solid performance in its 2018 10-K filing, highlighting significant progress on its strategic plan. The company successfully monetized approximately $7.8 billion of non-core assets, strengthened its balance sheet to meet long-term leverage targets ahead of schedule, and simplified its corporate structure by acquiring four publicly traded sponsored vehicles. The capital program remained robust, with $7 billion in new projects placed into service and advancement of the Line 3 Replacement Program through key regulatory milestones. Looking ahead, Enbridge is well-positioned with a streamlined business model and a strong financial footing. The company emphasized its commitment to safety and operational reliability as foundational to its strategy. Key priorities include maintaining financial strength through debt reduction and investment-grade ratings, executing its capital program efficiently, and extending growth beyond 2020 by focusing on core, low-risk, regulated pipeline and utility assets. The company anticipates generating $5 to $6 billion of available capital to reinvest internally from 2020 onwards.

Key Highlights

  • 1Monetized approximately $7.8 billion of non-core assets, strengthening the balance sheet.
  • 2Achieved long-term leverage targets ahead of schedule.
  • 3Streamlined corporate structure by acquiring four publicly traded sponsored vehicles.
  • 4Brought $7 billion of new projects into service and advanced the Line 3 Replacement Program.
  • 5Entered 2019 with a streamlined business model, strong balance sheet, and renewed focus on growth.
  • 6Maintains a strong commitment to safety and operational reliability.
  • 7Plans to self-fund growth post-2020, expecting to generate $5 to $6 billion of available capital annually.

Frequently Asked Questions

In 2018, Enbridge achieved several strategic objectives, including monetizing approximately $7.8 billion of non-core assets, strengthening its balance sheet to meet leverage targets ahead of schedule, and simplifying its corporate structure by acquiring four sponsored vehicles. The company also successfully executed its capital program, bringing $7 billion of new projects into service.

Enbridge's strategic priorities remain focused on growing its core business lines (Liquids Pipelines, Natural Gas Pipelines, and Gas Distribution) within a regulated pipeline and utility model. Key priorities include maintaining a strong financial position, executing its capital program effectively, ensuring safety and operational reliability, and completing business integration and transformation initiatives. The company also aims to extend growth post-2020 by focusing on low-risk, regulated assets and a self-funding model.

Enbridge plans to fund its future growth through a "self-funded" model, utilizing internally generated cash flow. The company expects to generate $5 to $6 billion of available capital annually from 2020 onwards, which will be reinvested in the business without the need for issuing additional common equity, while maintaining a strong balance sheet.

The acquisition of Spectra Energy Partners, LP, Enbridge Energy Partners, L.P., Enbridge Energy Management, L.L.C., and Enbridge Income Fund Holdings Inc. simplified Enbridge's corporate structure. This move is part of a strategy to streamline operations, enhance financial flexibility, and improve the overall business model, ultimately supporting the company's long-term growth objectives.