8-K

ENBRIDGE INC 8-K Report (Jul 28, 2010)

Filed July 28, 2010For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) reported its second quarter and six-month financial results for the period ending June 30, 2010. The company highlighted strong performance with adjusted earnings increasing by 19% year-over-year for both the quarter and the six-month period, reaching $232 million ($0.63 per share) and $550 million ($1.49 per share), respectively. This growth was driven by the successful on-time and on-budget completion of major projects, including the Alberta Clipper and Southern Lights Pipelines, which are expected to enhance future cash flow. Positively, Enbridge also announced strategic expansions and new ventures. This includes a $400 million expansion of the Waupisoo Pipeline, entry into the U.S. green energy sector with a $500 million investment in a Colorado wind project, and participation in a carbon capture and sequestration pilot project. An acquisition by its affiliate, Enbridge Energy Partners, L.P., further expands its U.S. natural gas gathering and processing footprint. Despite these positive developments, the company also disclosed a leak on its Lakehead System's Line 6B in Michigan, for which cleanup and investigation are ongoing. The financial impact of this incident has not yet been assessed.

Key Highlights

  • 1Second quarter adjusted earnings increased 19% to $232 million ($0.63 per share).
  • 2Six-month adjusted earnings increased 19% to $550 million ($1.49 per share).
  • 3Alberta Clipper and Southern Lights Pipelines were brought into service on time and on budget, enhancing future cash flow.
  • 4Expansion of the Regional Oil Sands System through the $400 million Waupisoo Pipeline Expansion was announced.
  • 5Entry into the U.S. green energy sector with a $500 million investment in a 250-MW Colorado wind energy project.
  • 6Participation in the Project Pioneer carbon capture and sequestration pilot project.
  • 7Enbridge Energy Partners, L.P. acquired the Elk City Gathering and Processing System for US$682 million, expanding its U.S. natural gas footprint.

Frequently Asked Questions

For the second quarter of 2010, Enbridge reported adjusted earnings of $232 million, a 19% increase compared to the same period in 2009. Adjusted earnings per common share were $0.63, up from $0.54 in the prior year.

Enbridge successfully brought its Alberta Clipper Project into service on April 1, 2010, and the Southern Lights diluent pipeline on July 1, 2010. Both projects were completed on time and on budget and are expected to significantly strengthen the company's cash flow growth.

Enbridge is actively expanding its involvement in green energy. A significant step was the announcement of a US$500 million investment in the 250-MW Cedar Point Wind Energy Project in Colorado, marking its first green energy investment in the U.S. and establishing a foothold in the growing U.S. market.

Yes, Enbridge reported a crude oil release on Line 6B of its Lakehead System near Marshall, Michigan, on July 26, 2010. The pipeline was shut down, and cleanup and investigation efforts are underway. The financial impact of this incident has not yet been determined.