8-K

ENBRIDGE INC 8-K Report (Feb 15, 2013)

Filed February 15, 2013For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) filed an 8-K on February 15, 2013, reporting its financial results for the full year and fourth quarter of 2012. The company highlighted strong full-year adjusted earnings growth of 11% to $1.62 per common share, driven by robust performance in its Liquids Pipelines segment. Enbridge also announced significant new capital initiatives totaling over $9 billion, aimed at expanding market access for growing light oil production from Western Canada and North Dakota, and providing access to the eastern Gulf Coast refinery market. Key strategic developments include planned investments in the Light Oil Market Access Program ($6.2 billion), expansion of the Canadian Mainline system ($1.8 billion), and joint development of a project with Energy Transfer Partners for Gulf Coast access. The company also continues to diversify into renewable energy, securing a stake in a wind project. For 2013, Enbridge provided guidance for adjusted earnings per common share of $1.74 to $1.90 and announced a 12% increase in its quarterly dividend. An impairment charge of $105 million related to certain offshore assets was also noted.

Key Highlights

  • 1Full-year 2012 adjusted earnings increased by 11% to $1.62 per common share, reaching $1,249 million.
  • 2Enbridge announced plans for significant new investments, including a $6.2 billion Light Oil Market Access Program and a $1.8 billion expansion of its Canadian Mainline system.
  • 3A joint development agreement with Energy Transfer Partners was reached to provide crude oil access to the eastern Gulf Coast refinery market.
  • 4The company declared a 12% increase in its quarterly dividend to $0.315 per common share, effective March 1, 2013.
  • 5Guidance for 2013 adjusted earnings per common share was set between $1.74 and $1.90.
  • 6Enbridge secured a 50% interest in the Massif du Sud Wind Project, adding 150 MW of renewable energy capacity.
  • 7A $105 million (after-tax) impairment charge was recorded for certain Offshore assets.

Frequently Asked Questions

For the full year 2012, Enbridge reported adjusted earnings of $1,249 million, or $1.62 per common share, representing an 11% increase over 2011. Reported earnings attributable to common shareholders were $610 million, or $0.79 per common share.

The company announced significant capital initiatives, including a $6.2 billion Light Oil Market Access Program to expand light oil market access, a $1.8 billion expansion of its Canadian Mainline system, and an agreement to jointly develop a project to access the eastern Gulf Coast refinery market with Energy Transfer Partners. Additionally, a $0.6 billion expansion of the mainline system and the Heidelberg Lateral Pipeline project were highlighted.

Enbridge announced a 12% increase in its common share dividend, raising it to $0.315 per common share, effective March 1, 2013. This reflects the company's confidence in its financial performance and growth prospects.

For 2013, Enbridge provided guidance for adjusted earnings per common share in the range of $1.74 to $1.90. The company expressed confidence in maintaining its industry-leading growth through 2016 and beyond.