8-K

ENBRIDGE INC 8-K Report (Nov 3, 2010)

Filed November 3, 2010For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) filed a Form 6-K on November 3, 2010, reporting its third-quarter results and providing an interim report to shareholders for the nine months ended September 30, 2010. The report highlights a strong quarter for core businesses despite the impact of crude oil spills on Line 6B and Line 6A, both of which were returned to service. Adjusted earnings for the nine months increased by approximately 21% year-over-year, driven by successful project completions and reliable operations across its liquids pipelines, natural gas, and green energy segments. Significant capital investments and expansions were noted, particularly in the oil sands and Bakken regions, alongside strategic acquisitions in the natural gas sector. Financially, the company reported third-quarter earnings of $157 million ($0.42 per share) and nine-month earnings of $637 million ($1.73 per share). Adjusted earnings for the nine months were $746 million ($2.02 per share). Enbridge also announced a quarterly dividend of $0.425 per common share, reflecting its commitment to shareholder returns. The company emphasized its strategic position and competitive advantages, forecasting attractive investment opportunities and sustainable long-term growth.

Key Highlights

  • 1Enbridge reported third-quarter earnings of $157 million ($0.42/share) and nine-month earnings of $637 million ($1.73/share).
  • 2Adjusted earnings for the nine months ended September 30, 2010, were $746 million ($2.02/share), a 21% increase year-over-year.
  • 3Crude oil spills on Line 6B and Line 6A occurred in July and September, but both lines were returned to operations in September with cleanup substantially complete.
  • 4Significant expansion projects in the Regional Oil Sands System, totaling approximately $2.4 billion, are underway.
  • 5Enbridge affiliates are expanding their presence in the Bakken play with proposed additions of 145,000 bpd of capacity.
  • 6The world's largest operating photovoltaic solar facility (80-MW) in Sarnia, Ontario, was brought into service ahead of schedule.
  • 7An affiliate acquired US$700 million in gas gathering and processing assets, strengthening its natural gas midstream presence.
  • 8The Board of Directors declared a quarterly dividend of $0.425 per common share, payable on December 1, 2010.

Frequently Asked Questions

For the third quarter of 2010, Enbridge reported earnings of $157 million, or $0.42 per common share. For the nine months ended September 30, 2010, earnings were $637 million, or $1.73 per common share. Adjusted earnings for the nine-month period were $746 million, or $2.02 per common share, representing a 21% increase compared to the same period in 2009. The company also declared a quarterly dividend of $0.425 per common share.

Enbridge experienced crude oil spills on its Line 6B in July and Line 6A in September 2010. Both lines were returned to operation in September, and cleanup efforts are substantially complete. The company incurred an $85 million charge (net to Enbridge) in its equity earnings from Enbridge Energy Partners, L.P. (EEP) for these incidents, before insurance recoveries. While these events impacted reported earnings, management indicated that core businesses performed strongly and the company remained on track to achieve its full-year guidance.

Enbridge is expanding its liquids pipeline business with approximately $2.4 billion in secured projects for its Regional Oil Sands System, connecting more oil sands projects by 2013. Significant expansions are also planned in the Bakken play, aiming to add 145,000 bpd of capacity. The company has also invested in green energy, bringing the Sarnia Solar Project online ahead of schedule and acquiring US$700 million in U.S. natural gas gathering and processing assets to capitalize on growth in the Granite Wash.

Enbridge expects to fund its liabilities, capital expenditures, debt retirements, and dividends through cash from operations, debt issuances, and credit facility draws. As of September 30, 2010, the company had approximately $2.8 billion in net available liquidity, including unrestricted cash. The company actively manages its bank funding sources to ensure adequate liquidity and optimize pricing.