10-KPeriod: FY2019

ENBRIDGE INC Annual Report, Year Ended Dec 31, 2019

Filed February 14, 2020For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) demonstrated robust operational and financial performance in 2019, marked by strategic progress across its core business segments, including Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, and Renewable Power Generation. The company successfully completed significant projects, such as the Canadian Line 3 Replacement Program and brought new growth projects into service, contributing to increased earnings and operational efficiency. Asset monetization efforts continued, with the sale of non-core assets generating substantial proceeds. Enbridge also focused on optimizing its existing infrastructure, leading to higher throughput and improved financial results, including a notable increase in its common share dividend. Looking ahead, Enbridge remains committed to safety, operational reliability, and disciplined capital allocation, with a strategic focus on optimizing its core businesses, extending growth through secured capital programs, and adapting to the evolving energy landscape. The company's diversified asset base, long-term contracts, and strong financial position provide a solid foundation for continued stable cash flow generation and dividend growth.

Key Highlights

  • 1Completed the sale of federally regulated Canadian midstream assets, raising approximately $8 billion from non-core asset sales over three years.
  • 2Brought approximately $9 billion of new growth projects into service, including the Canadian component of the Line 3 Replacement Program and various U.S. gas transmission projects.
  • 3Achieved a consolidated Debt-to-EBITDA ratio of 4.5x, at the low end of the target range.
  • 4Optimized Liquids Mainline System operations to allow an incremental 100,000 barrels per day of throughput.
  • 5Successfully negotiated the Texas Eastern rate case, securing favorable regulatory treatment for a modernization program.
  • 6Achieved record financial results at the high end of 2019 guidance.
  • 7Increased common share dividend by 9.8 percent.

Frequently Asked Questions

Enbridge operates through five business segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services.

Enbridge's strategy focuses on optimizing its core businesses, executing and extending growth through its secured capital program (approximately $11 billion), and maintaining a strong financial position. They aim to invest $5 to $6 billion per year in new growth capital post-2020 without issuing additional equity.

Enbridge is adapting to the energy transition by diversifying its assets, investing in natural gas infrastructure, and growing its renewable energy business, particularly offshore wind. They believe their existing infrastructure is resilient and can generate stable cash flows well into the future, while also investing in lower-carbon solutions.

The acquisition of Spectra Energy in 2017 significantly diversified Enbridge's asset base across commodity types, energy basins, and regulatory jurisdictions, creating a substantial new platform for sustainable growth. It was a key element in their multi-year plan for long-term success.