8-K

ENBRIDGE INC 8-K Report (Dec 7, 2011)

Filed December 7, 2011For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) announced a significant 15% increase in its quarterly common share dividend, signaling confidence in its financial performance and future growth. The company also provided its 2012 guidance, projecting adjusted earnings per share between $1.58 and $1.74. This report highlights substantial progress made in 2011, including securing over $11 billion in commercially backed growth projects across its liquids pipelines, gas pipelines and distribution, and green energy segments, as well as new ventures like power transmission and Canadian midstream gas. Key achievements include the Competitive Toll Settlement (CTS) for its Liquids Pipelines and strategic acquisitions and expansions poised to enhance market access and operational capacity. Investors can anticipate continued earnings growth through 2015, with a target of 10% annually on an adjusted EPS basis. The company detailed several growth initiatives, such as the Athabasca System expansion, the acquisition of a 50% interest in the Seaway Pipeline System to connect production to the U.S. Gulf Coast, and investments in natural gas infrastructure and renewable energy projects. Enbridge also underscored its ongoing commitment to safety and operational integrity as a top priority for 2012.

Key Highlights

  • 1Enbridge declared a quarterly common share dividend of $0.2825, a 15% increase from the prior rate, payable March 1, 2012.
  • 22012 adjusted earnings per share guidance is projected to be between $1.58 and $1.74.
  • 3Commercially secured growth projects now exceed $11 billion, supporting confidence in achieving a 10% average annual adjusted EPS growth rate through 2015.
  • 4Agreement reached on the 10-year Competitive Toll Settlement (CTS) for Liquids Pipelines shippers.
  • 5Acquisition of a 50% interest in the Seaway Pipeline System is expected to be in service mid-2012, facilitating crude oil delivery to the U.S. Gulf Coast.
  • 6Significant investments in liquids and gas pipeline infrastructure, green energy, power transmission, and Canadian midstream gas are underway.
  • 7Emphasis placed on continued commitment to safety and operational integrity as a top priority for 2012.

Frequently Asked Questions

The 15% increase in the quarterly common share dividend to $0.2825 per share demonstrates Enbridge's confidence in its financial stability and its ability to generate consistent cash flow. This suggests a positive outlook on its operational performance and growth prospects, making the stock more attractive to income-seeking investors.

Enbridge's growth is driven by over $11 billion in secured projects. Key drivers include expanding its liquids pipeline system (e.g., Athabasca Twinning Project), enhancing market access to the U.S. Gulf Coast via the Seaway Pipeline System, investing in natural gas infrastructure, entering the power transmission sector, and growing its renewable energy portfolio. These initiatives are expected to support an average annual adjusted EPS growth rate of 10% through 2015.

Enbridge emphasized that progress has been made in reinforcing safety and operational integrity across all its business units in 2011. This will remain a top priority in 2012. This commitment is crucial for maintaining regulatory compliance, minimizing operational disruptions, and preserving investor confidence.

Enbridge has provided guidance for 2012, expecting adjusted earnings per share to range between $1.58 and $1.74. This forecast is supported by the execution of its growth projects and expected contributions from new ventures.