8-K

ENBRIDGE INC 8-K Report (Nov 7, 2012)

Filed November 7, 2012For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) filed an 8-K on November 7, 2012, reporting its third-quarter and interim results for the period ended September 30, 2012. The report highlights a 13% increase in adjusted earnings to $269 million ($0.34 per share) for the quarter, driven by strong performance in Liquids Pipelines, including contributions from Canadian Mainline and Spearhead Pipeline, and the Seaway Pipeline. For the nine-month period, adjusted earnings increased 11% to $922 million ($1.20 per share). The company also announced significant growth projects and strategic initiatives. Key among these were regulatory approval for the $1.0 billion to $1.4 billion Woodland Pipeline Extension Project and a $0.2 billion expansion at its Athabasca terminal. Enbridge also approved a $0.6 billion investment in Greater Toronto Area natural gas distribution infrastructure. The company further advanced its financing plan with an $850 million preference share issuance and a $1.2 billion asset transfer to Enbridge Income Fund, bolstering its financial position to support a robust growth pipeline. Al Monaco assumed the role of President and CEO on October 1, 2012, outlining priorities focused on safety, reliability, environmental sustainability, project execution, and extending long-term growth.

Key Highlights

  • 1Third quarter adjusted earnings increased 13% to $269 million ($0.34 per common share), and nine-month adjusted earnings increased 11% to $922 million ($1.20 per common share).
  • 2Al Monaco became President and Chief Executive Officer on October 1, 2012.
  • 3The Alberta Energy Resources Conservation Board approved the $1.0 billion to $1.4 billion Woodland Pipeline Extension Project.
  • 4Enbridge signed an agreement with Suncor Energy Inc. for a $0.2 billion expansion of Athabasca terminal facilities.
  • 5A $0.6 billion investment was approved for Greater Toronto Area natural gas distribution infrastructure expansion.
  • 6Enbridge continued its financing plan with $850 million in preference share issuances and advanced its sponsored vehicle strategy with an agreement to transfer $1.2 billion in assets to Enbridge Income Fund.
  • 7The company is actively pursuing approximately $18 billion in commercially secured growth projects, with an additional $12 billion in highly probable projects, projecting strong average annual earnings per share growth of 10-12% through 2016 and beyond.

Frequently Asked Questions

For the third quarter of 2012, Enbridge reported earnings attributable to common shareholders of $189 million ($0.24 per common share). Adjusted earnings, which exclude certain non-recurring or non-operating items, were $269 million ($0.34 per common share), representing a 13% increase compared to the same period in 2011.

The report detailed several key projects, including regulatory approval for the Woodland Pipeline Extension Project ($1.0-$1.4 billion), an expansion of the Athabasca terminal facilities ($0.2 billion), and a $0.6 billion investment in Greater Toronto Area natural gas distribution infrastructure. Additionally, Enbridge is working on the Seaway Crude Pipeline System reversal and expansion, and the Flanagan South Pipeline Project.

Enbridge is funding its growth through a combination of operating cash flows, debt issuance, and equity financings. The company issued $850 million in preference shares and advanced its sponsored vehicle strategy by agreeing to transfer $1.2 billion of assets to Enbridge Income Fund. They also have access to significant committed credit facilities.

Yes, Al Monaco became the new President and Chief Executive Officer on October 1, 2012, succeeding Patrick D. Daniel upon his retirement. The report also mentions the ongoing regulatory review process for the Northern Gateway Pipeline project.