8-K

ENBRIDGE INC 8-K Report (Feb 17, 2012)

Filed February 17, 2012For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) filed an 8-K on February 17, 2012, detailing its financial and operational results for the full year and fourth quarter of 2011. The report highlights strong performance with full-year 2011 earnings of $991 million and adjusted earnings per common share increasing by 11% to $1.48. The company demonstrated significant growth in its business segments, particularly in Liquids Pipelines and Gas Pipelines, Processing and Energy Services. A key focus for investors is Enbridge's strategic expansion and capital investment in major projects, including the Seaway Pipeline reversal and the Flanagan South Pipeline, aimed at enhancing its Gulf Coast Access initiative. Additionally, Enbridge's entry into the Canadian midstream natural gas sector with the Cabin Gas Plant and expansion into renewable energy with the Lac Alfred Wind Project underscore its diversified growth strategy. The company also announced a 15% increase in its quarterly dividend to $0.2825 per common share, effective March 1, 2012, reinforcing its commitment to returning value to shareholders. Enbridge provided guidance for 2012 adjusted earnings per share, anticipating a 10% average annual growth rate through 2015 based on conservative assumptions. The report also touches on the company's ongoing commitment to safety and sustainability, including being named one of the Global 100 Most Sustainable Corporations for the fourth consecutive year.

Key Highlights

  • 1Full-year 2011 earnings were $991 million, with adjusted earnings per common share increasing 11% to $1.48.
  • 2Acquired a 50% joint venture interest in the Seaway Pipeline and announced plans to proceed with the $1.9 billion Flanagan South Pipeline as part of the Gulf Coast Access initiative.
  • 3Entered the Canadian midstream natural gas sector with a 71% interest in the Cabin Gas Plant development ($1.1 billion expected investment).
  • 4Secured a 50% interest in the 300-MW Lac Alfred Wind Project ($0.3 billion expected investment), bringing renewable energy interests close to 1,000 MW.
  • 5Announced 2012 guidance for adjusted earnings per share of $1.58 to $1.74, representing a 12% increase over 2011 at the midpoint.
  • 6Increased the quarterly dividend by 15% to $0.2825 per common share, effective March 1, 2012.
  • 7Achieved a total return to shareholders of 40% in 2011 and reiterated confidence in achieving a 10% average annual EPS growth rate through 2015.

Frequently Asked Questions

For the full year 2011, Enbridge reported earnings attributable to common shareholders of $991 million, or $1.32 per common share. Adjusted earnings were $1,110 million, or $1.48 per common share, representing an 11% increase over 2010.

The report highlights significant growth initiatives including the acquisition of a 50% interest in the Seaway Pipeline and the decision to proceed with the Flanagan South Pipeline (part of the Gulf Coast Access initiative), entry into the Canadian midstream natural gas sector with the Cabin Gas Plant, and investment in the Lac Alfred Wind Project. These projects represent substantial capital investments aimed at expanding Enbridge's infrastructure and energy portfolio.

Enbridge provided guidance for 2012 adjusted earnings per share between $1.58 and $1.74, with the midpoint representing a 12% increase over 2011. The company expressed confidence in achieving an average annual growth rate in adjusted earnings per share of 10% through 2015, based on conservative assumptions and a robust project pipeline.

Enbridge's Board of Directors approved a 15% increase to the quarterly dividend, raising it to $0.2825 per common share, effective March 1, 2012. This follows a trend of consistent dividend growth, averaging 13% per year over the last five years, and reflects the company's strong financial performance and commitment to shareholder returns.