8-K

ENBRIDGE INC 8-K Report (Feb 14, 2014)

Filed February 14, 2014For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. reported its 2013 financial results, demonstrating solid operational performance with an 11% increase in full-year adjusted earnings per common share to $1.78. The company successfully executed its growth capital plan, placing $5 billion of projects into service and securing an additional $6 billion in new projects, expanding its future growth pipeline to $29 billion. This strategic execution is expected to drive average annual adjusted earnings per share growth of 10-12% through 2017. Despite a reported net loss for the fourth quarter of $267 million due to non-cash mark-to-market adjustments, the underlying business showed resilience. Key initiatives in 2013 included significant investments in regional oil sands projects, the development of wind energy projects in Texas, and strategic partnerships such as Marathon Petroleum's involvement in the Sandpiper Project. Enbridge also continued to strengthen its financial position by raising approximately $5 billion through debt and equity and increasing its credit facilities. The company announced an 11% increase in its quarterly dividend to $0.350 per common share, effective March 1, 2014, signaling confidence in its future cash flows and financial stability. The Joint Review Panel's recommendation to approve the Northern Gateway project, subject to conditions, also represents a significant regulatory milestone.

Key Highlights

  • 1Full-year 2013 adjusted earnings per common share increased by 11% to $1.78.
  • 2Executed $5 billion in growth capital projects and secured an additional $6 billion in new projects, extending the growth pipeline to $29 billion.
  • 3Announced an 11% increase in the quarterly dividend to $0.350 per common share, effective March 1, 2014.
  • 4Proceeding with $3.2 billion in regional oil sands projects, including the Wood Buffalo Pipeline extension and the Norlite Pipeline System.
  • 5Secured the 110-megawatt Keechi Wind Project in Texas for approximately US$0.2 billion.
  • 6Marathon Petroleum Corporation is a key partner and anchor shipper in the US$2.6 billion Sandpiper Project.
  • 7Joint Review Panel recommended approval of the Northern Gateway project, subject to 209 conditions.

Frequently Asked Questions

Enbridge reported full-year 2013 adjusted earnings of $1.4 billion, or $1.78 per common share, an 11% increase over 2012. While the company reported a net loss of $267 million for the fourth quarter, this was largely due to non-cash mark-to-market accounting adjustments. The underlying operational performance was strong.

Enbridge executed its growth capital plan by placing $5 billion of projects into service in 2013 and secured an additional $6 billion in new projects. The company is advancing major regional oil sands projects like the Wood Buffalo Pipeline extension and the Norlite Pipeline System, totaling approximately $3.2 billion. It is also expanding into renewable energy with projects like the Keechi Wind Project in Texas and has significant market access initiatives underway.

Enbridge raised approximately $5 billion in 2013 through a combination of debt and equity financing and increased its enterprise-wide general purpose credit facilities to $17.6 billion. Reflecting confidence in its financial outlook, the company announced an 11% increase in its quarterly dividend to $0.350 per common share, effective March 1, 2014.

In December 2013, a federal Joint Review Panel recommended that the Canadian federal government approve the Northern Gateway Project, subject to 209 conditions. The government is expected to make a final decision by June 2014. Enbridge continues to review the report and conditions and remains committed to the project's development.