8-K

ENBRIDGE INC 8-K Report (Jan 2, 2013)

Filed January 2, 2013For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) filed a Form 6-K on January 2, 2013, reporting significant corporate developments from late 2012. Key announcements include the closing of a C$400 million preferred share offering to fund capital expenditures and repay debt, and the launch of a substantial $6.2 billion Light Oil Market Access Program aimed at expanding pipeline capacity for growing North Dakota and Western Canadian light oil production. This program, which includes several individual projects with varying in-service dates between 2014 and early 2016, will enhance access to U.S. Midwest and Eastern Canadian refineries. Additionally, Enbridge announced its partnership with EDF EN Canada Inc. to acquire a 50% interest in the 150-MW Massif du Sud Wind Project in Quebec for approximately $170 million. This expansion in renewable energy further diversifies Enbridge's portfolio. These strategic moves underscore Enbridge's commitment to growth through both its core energy transportation infrastructure and its increasing investments in renewable energy projects, positioning the company for sustained earnings per share growth.

Key Highlights

  • 1Enbridge closed a C$400 million public offering of Series R Cumulative Redeemable Preference Shares to support capital expenditures, debt repayment, and general corporate purposes.
  • 2Enbridge announced a significant $6.2 billion Light Oil Market Access Program to expand capacity for North Dakota and Western Canadian light oil, targeting increased delivery to U.S. Midwest and Eastern Canadian refineries.
  • 3The Light Oil Market Access Program includes multiple projects, such as the Sandpiper Project (North Dakota System Expansion), Southern Access Extension, and U.S. Mainline System capacity expansions, with target in-service dates ranging from 2014 to early 2016.
  • 4Enbridge will invest approximately $170 million for a 50% interest in the 150-megawatt Massif du Sud Wind Project in Quebec, partnering with EDF EN Canada Inc.
  • 5The company reported it had secured $26 billion in commercially secured growth investments planned for service between 2012 and 2016, projecting an average annual growth rate in earnings per share exceeding 10%.
  • 6Enbridge stated it had raised over $6 billion in capital markets funding year-to-date in 2012 and expanded its general purpose bank credit facilities to over $12 billion.
  • 7The report includes press releases detailing these events, highlighting Enbridge's ongoing capital expenditure plans and strategic initiatives in both traditional energy infrastructure and renewable energy.

Frequently Asked Questions

The C$400 million from the Series R Preferred Share offering was intended for capital expenditures, to repay indebtedness, and for other general corporate purposes.

The primary objective is to expand pipeline capacity to provide increased market access for growing volumes of light oil production from North Dakota and Western Canada, targeting attractive refinery markets in Ontario, Quebec, and the U.S. Midwest.

The individual projects within the Program are targeted to be available for service at varying dates from 2014 to early 2016.

Enbridge is partnering with EDF EN Canada Inc. to acquire a 50% interest in the 150-megawatt Massif du Sud Wind Project in Quebec for approximately $170 million.