8-K

ENBRIDGE INC 8-K Report (Nov 9, 2011)

Filed November 9, 2011For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. reported its third quarter 2011 results, showcasing strong growth and a positive outlook. Adjusted earnings for the quarter were $241 million ($0.32 per common share), exceeding the prior year's performance. Year-to-date adjusted earnings reached $835 million ($1.11 per common share). The company highlighted significant investments and project advancements across its business segments, including major expansions in liquids pipelines, entry into the Canadian midstream natural gas sector, and growth in renewable energy and power transmission. Enbridge provided guidance indicating it is trending towards the upper end of its adjusted earnings per share guidance range for the full year 2011 and reiterated confidence in achieving a 10% average annual growth rate in adjusted earnings per share through the middle of the decade, supported by a robust $10 billion in secured growth projects and a broad pipeline of future opportunities. The company also declared a quarterly dividend of $0.245 per common share.

Key Highlights

  • 1Third quarter adjusted earnings of $241 million ($0.32/share) increased compared to the prior year.
  • 2Year-to-date adjusted earnings of $835 million ($1.11/share) demonstrate continued growth.
  • 3Significant investments include a $1.2 billion project to twin the Athabasca Pipeline and a $1.1 billion investment in the Cabin Gas Plant Development, marking entry into Canadian midstream natural gas.
  • 4Expansion into the power transmission business with the acquisition of the Montana-Alberta Tie-Line (MATL) project.
  • 5Growth in renewable energy with a $0.3 billion investment in the Lac Alfred Wind Project in Quebec.
  • 6A $1.2 billion transfer of renewable assets to Enbridge Income Fund provided a capital source.
  • 7Confident outlook for 10% average annual adjusted earnings per share growth through mid-decade, driven by $10 billion in secured growth projects.

Frequently Asked Questions

Enbridge reported third quarter adjusted earnings of $241 million, or $0.32 per common share, an increase from $196 million, or $0.26 per common share, in the same period of 2010. Reported earnings attributable to common shareholders were $4 million for the quarter, impacted by non-cash mark-to-market accounting impacts.

Key projects highlighted include the $1.2 billion Athabasca Pipeline twinning project, the $1.1 billion Cabin Gas Plant Development to enter the Canadian midstream natural gas sector, expansion of Line 5 and reversal of Line 9 for eastern market access, the Montana-Alberta Tie-Line (MATL) project for power transmission, and the Lac Alfred Wind Project in Quebec.

Enbridge expressed confidence in delivering a 10% average annual growth rate in adjusted earnings per share into the middle of the decade. This outlook is supported by $10 billion in secured growth projects currently underway and a large pipeline of future opportunities across its diverse energy infrastructure portfolio.

The report notes ongoing investigations and litigation related to the Line 6A and Line 6B crude oil releases from Enbridge Energy Partners, L.P. (EEP). EEP has revised its estimated costs for the Line 6B release to $725 million (before insurance recoveries), and Enbridge anticipates potentially exceeding its insurance coverage limits for this event. While remediation efforts are ongoing, no material financial impact on the consolidated financial position or results of operations is currently expected from these events, though further costs and penalties are possible.