8-K

ENBRIDGE INC 8-K Report (Dec 6, 2012)

Filed December 6, 2012For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

This Form 6-K filing by Enbridge Inc. on December 6, 2012, primarily serves to disseminate a press release announcing a significant 12% increase in its quarterly dividend to $0.315 per common share. This dividend hike signals strong confidence from the company's board in Enbridge's future earnings potential and operational stability. Furthermore, the company provided its initial guidance for 2013 adjusted earnings per share, projecting a range of $1.74 to $1.90. This guidance, coupled with the secured $14 billion in new investment opportunities and an updated total secured growth investment of $26 billion through 2016, points towards continued earnings growth exceeding 10% and a strong outlook for extending this growth rate beyond the middle of the decade. The company also highlighted progress in its Operational Risk Management Plan and its commitment to safe and responsible operations.

Key Highlights

  • 1Enbridge Inc. announced a 12% increase in its quarterly dividend to $0.315 per common share, payable on March 1, 2013.
  • 2The company provided its 2013 adjusted earnings per share guidance range of $1.74 to $1.90.
  • 3Enbridge has secured an additional $14 billion in investment opportunities, bringing its total commercially secured growth investment to $26 billion through 2016.
  • 4Management anticipates exceeding its previously stated 10%+ EPS growth rate potential and extending this growth beyond the mid-decade.
  • 5The press release emphasized continued implementation of the Operational Risk Management Plan, prioritizing safe and responsible operations.
  • 6Several series of preferred share dividends were also declared.
  • 7A conference call was scheduled for December 6, 2012, to discuss the 2013 Guidance.

Frequently Asked Questions

The primary reason for this filing is to formally disseminate a press release to the SEC, which announced Enbridge's board of directors' decision to increase the quarterly dividend by 12% and provided initial guidance for 2013 adjusted earnings per share, along with details on secured growth investments.

The 12% increase in the quarterly dividend to $0.315 per common share signals strong financial health and confidence from Enbridge's management and board regarding the company's future earnings and cash flow generation. It directly benefits shareholders through increased income.

Enbridge projects 2013 adjusted earnings per share in the range of $1.74 to $1.90. The company also indicated that recent secured investment opportunities reinforce its expectation to exceed a 10% EPS growth rate and potentially extend this strong growth trajectory beyond the middle of the decade.

Enbridge has secured a total of $26 billion in commercially secured growth investment opportunities through 2016, with $14 billion of these being newly announced in this period. The company indicated that these projects are largely on schedule and budget, and funding is being advanced.