8-K

ENBRIDGE INC 8-K Report (Aug 5, 2011)

Filed August 5, 2011For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) filed an 8-K on August 5, 2011, reporting on its second quarter ended June 30, 2011. The company's adjusted earnings per common share for the quarter were $0.35, exceeding expectations and positioning the full-year outlook towards the upper half of guidance. A significant development was the National Energy Board's (NEB) approval of a 10-year Competitive Toll Settlement (CTS) for the crude oil mainline system, effective July 1, 2011. This agreement provides long-term toll stability and is expected to support continued earnings growth and dividend increases. The company also reported progress on several key growth projects within its Liquids Pipelines segment, including expansions and new pipeline constructions aimed at accommodating increased oil sands production. In its Gas Pipelines, Processing and Energy Services segment, Enbridge announced the acquisition of assets in the Bakken area. The company also confirmed a two-for-one stock split that became effective in May 2011, effectively doubling the number of outstanding shares.

Key Highlights

  • 1Enbridge reported second quarter adjusted earnings of $260 million ($0.35 per common share), trending towards the higher end of annual guidance.
  • 2The National Energy Board (NEB) approved a 10-year Competitive Toll Settlement (CTS) for the crude oil mainline system, effective July 1, 2011, providing long-term toll stability.
  • 3Progress was made on multiple growth projects in the Liquids Pipelines segment, including the Christina Lake Lateral, Woodland Pipeline, Wood Buffalo Pipeline, and Athabasca Pipeline expansion.
  • 4Enbridge announced the acquisition of the Stanley Condensate Recovery Plant and Prairie Rose Pipeline in the Bakken area through an affiliate.
  • 5A two-for-one stock split was approved by shareholders and became effective on May 25, 2011.
  • 6The company declared a quarterly dividend of $0.245 per common share (post-split basis), reflecting a 15% year-over-year increase.

Frequently Asked Questions

Enbridge reported second quarter earnings of $259 million ($0.35 per common share) and adjusted earnings of $260 million ($0.35 per common share). This performance exceeded expectations, leading management to forecast full-year adjusted earnings per share towards the upper half of the $1.38 to $1.48 guidance range.

The NEB's approval of the 10-year CTS, effective July 1, 2011, is significant as it provides a stable and competitive long-term toll for crude oil transportation. This stability is expected to support reliable earnings, attractive returns, and Enbridge's confidence in achieving its earnings per share growth targets. It also facilitates market extensions for shippers.

Enbridge is advancing several growth projects, particularly in its Liquids Pipelines segment. These include the Christina Lake Lateral, Woodland Pipeline, Wood Buffalo Pipeline, and Athabasca Pipeline expansion, all aimed at increasing capacity to accommodate growing oil sands production. Additionally, projects in renewable energy, such as wind and solar, are progressing.

Yes, Enbridge shareholders approved a two-for-one stock split, which became effective on May 25, 2011. This doubled the number of outstanding shares. The company also declared a quarterly dividend of $0.245 per common share on a post-split basis, marking a 15% year-over-year increase.