8-K

ENBRIDGE INC 8-K Report (Dec 1, 2010)

Filed December 1, 2010For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) announced a significant 15% increase in its quarterly dividend, raising it to $0.49 per common share, payable in March 2011. This dividend hike is supported by strong growth in earnings and cash flow, with management indicating a policy to pay out 60-70% of adjusted earnings as dividends. The company also provided its 2011 guidance for adjusted operating earnings, projecting a range of $2.75 to $2.95 per share. This reflects confidence in Enbridge's business model and its ability to generate sustained growth. The report highlights substantial capital project completions in 2010, including the Alberta Clipper Expansion Project and the Southern Lights diluent pipeline, totaling $6.5 billion in projects placed into service. Looking ahead, Enbridge has secured over $5 billion in projects expected to be commissioned between 2011 and 2014, underscoring a robust growth pipeline across its liquids pipelines, natural gas transportation, and renewable energy segments. The company emphasizes its strategy of delivering visible, transparent, and sustained earnings and cash flow growth, coupled with a growing dividend, positioning it favorably for long-term shareholder returns.

Key Highlights

  • 1Increased quarterly dividend by 15% to $0.49 per common share, reflecting confidence in financial performance and cash flow generation.
  • 2Issued 2011 guidance for adjusted operating earnings between $2.75 and $2.95 per share.
  • 3Completed $6.5 billion in capital projects in 2010, including major infrastructure like the Alberta Clipper Expansion Project.
  • 4Secured over $5 billion in new projects expected to come into service from 2011 through 2014, ensuring future growth.
  • 5Reiterated a dividend payout policy of 60-70% of adjusted earnings.
  • 6Highlighted strong growth in earnings and cash flow, with cash flow expected to outperform earnings through 2014.
  • 7Emphasized a business model focused on visible, transparent, and sustained earnings and cash flow growth for investors.

Frequently Asked Questions

The Board of Directors declared a quarterly dividend of $0.49 per common share, payable on March 1, 2011, to shareholders of record on February 15, 2011. This represents a 15% increase from the previous rate of $0.425 per share.

Enbridge provided guidance for its 2011 adjusted operating earnings to be in the range of $2.75 to $2.95 per share.

In 2010, Enbridge brought $6.5 billion worth of projects into service, including the Alberta Clipper Expansion Project and the Southern Lights diluent pipeline. The company has secured more than $5 billion in projects scheduled to come into service between 2011 and 2014.

Enbridge's policy is to pay out between 60% and 70% of its adjusted earnings as dividends. The announced 15% dividend increase in late 2010 still falls within this policy range for 2011. The company expects cash flow growth to continue outperforming earnings through 2014, providing potential for further dividend growth.