10-QPeriod: Q1 FY2022

ENBRIDGE INC Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 6, 2022For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) reported solid financial results for the first quarter of 2022. Total operating revenues increased to C$15.1 billion, up from C$12.1 billion in the prior year's quarter, primarily driven by higher commodity sales and transportation revenues. Earnings attributable to common shareholders saw a modest increase to C$1.927 billion, or C$0.95 per share, compared to C$1.900 billion, or C$0.94 per share, in the first quarter of 2021. The company highlighted strong performance across its Liquids Pipelines and Gas Transmission and Midstream segments, benefiting from increased throughput, higher commodity prices, and the successful integration of recent acquisitions and expansions. The Gas Distribution and Storage segment also showed improvement, aided by colder weather conditions. Enbridge continues to advance its growth projects, including the Alberta Carbon Hub, and maintains a robust liquidity position with substantial credit facilities available.

Key Highlights

  • 1Total operating revenues increased by 24.4% to C$15.1 billion in Q1 2022 compared to C$12.1 billion in Q1 2021.
  • 2Earnings attributable to common shareholders increased to C$1.927 billion (C$0.95/share) in Q1 2022 from C$1.900 billion (C$0.94/share) in Q1 2021.
  • 3Liquids Pipelines segment EBITDA increased due to higher throughput, the full L3R surcharge, and contributions from new export assets.
  • 4Gas Transmission and Midstream segment EBITDA benefited from higher commodity prices and contributions from newly commissioned projects.
  • 5Gas Distribution and Storage segment EBITDA saw an increase driven by colder weather and higher distribution charges.
  • 6Enbridge secured the right to develop the Alberta Carbon Hub, a significant carbon capture and sequestration project.
  • 7The company maintained a strong liquidity position with C$4.9 billion in available committed credit facilities and C$413 million in unrestricted cash and cash equivalents as of March 31, 2022.

Frequently Asked Questions

Enbridge reported total operating revenues of C$15.1 billion for the three months ended March 31, 2022, an increase from C$12.1 billion in the same period of 2021. This growth was primarily driven by higher commodity sales and transportation and other services revenues.

Earnings attributable to common shareholders increased slightly to C$1.927 billion (C$0.95 per share) in the first quarter of 2022, up from C$1.900 billion (C$0.94 per share) in the first quarter of 2021. The company experienced higher earnings from its Liquids Pipelines, Gas Transmission and Midstream, and Gas Distribution and Storage segments, partially offset by increased interest expense.

Enbridge is advancing several growth projects, including the development of the Open Access Wabamun Carbon Hub in Alberta, which aims to avoid significant CO2 emissions. The company also continues to progress on various expansion projects within its Gas Transmission and Midstream and Gas Distribution and Storage segments, as well as offshore wind projects in Europe.

Enbridge maintains a strong liquidity position with C$4.9 billion in available committed credit facilities and C$413 million in unrestricted cash as of March 31, 2022. The company actively manages its debt profile through issuances and repayments, and remains in compliance with all debt covenants. It also has access to capital markets through shelf prospectuses.