8-K

ENBRIDGE INC 8-K Report (May 7, 2014)

Filed May 7, 2014For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) reported its first quarter 2014 financial results, highlighting adjusted earnings of $492 million or $0.60 per common share. The company announced significant progress on its long-term growth strategy, particularly with the proposed $7 billion Line 3 Replacement Project, aimed at enhancing the safety and reliability of its mainline liquids pipeline system. This project, the largest in Enbridge's history, underscores the company's commitment to critical infrastructure upgrades and customer service. Financially, Enbridge demonstrated its ability to access capital markets effectively, raising approximately $2.1 billion since the end of 2013 through debt and preferred equity. This funding strengthens its position to execute a robust pipeline of commercially secured growth projects totaling a record $36 billion, with an additional $5 billion expected by 2017. The company also provided an update on its renewable energy initiatives, including an investment in the Keechi Wind Project. These developments signal a strong focus on both core energy infrastructure and expansion into cleaner energy sources, positioning Enbridge for sustained earnings per share growth.

Key Highlights

  • 1First quarter 2014 adjusted earnings were $492 million or $0.60 per common share.
  • 2Announced the Line 3 Replacement Project, a significant $7 billion mainline investment program focused on safety and reliability.
  • 3Raised approximately $2.1 billion since the end of 2013 through debt and preferred equity, bolstering financial flexibility.
  • 4Increased enterprise-wide general purpose credit facilities to $18.1 billion.
  • 5Continued to execute its organic growth program with a commercially secured project portfolio totaling a record $36 billion.
  • 6Invested in renewable energy, including the 110 MW Keechi Wind Project in Texas.
  • 7Confirmed on track to meet full-year adjusted earnings per share guidance range of $1.84 to $2.04.

Frequently Asked Questions

In the first quarter of 2014, Enbridge reported earnings attributable to common shareholders of $390 million, or $0.48 per common share. Adjusted earnings were $492 million, or $0.60 per common share. The company also highlighted that it is on track to achieve its full-year adjusted earnings per share guidance range of $1.84 to $2.04.

Enbridge announced the Line 3 Replacement Program, a major $7 billion investment to replace approximately 1,084 km of existing pipeline in Canada and 576 km in the U.S., aimed at enhancing safety and reliability. Other key projects include the Sunday Creek Terminal expansion ($0.2 billion) and the Keechi Wind Project (US$0.2 billion).

Enbridge demonstrated strong access to capital markets. Since the end of 2013, the company raised approximately $2.1 billion through debt (medium-term notes) and preferred equity issuances. Additionally, it increased its enterprise-wide general purpose credit facilities to $18.1 billion, enhancing its liquidity and financial flexibility.

Enbridge Energy Partners, L.P. (EEP) continues remediation efforts for the Line 6B crude oil release. As of March 31, 2014, EEP's total estimated cost was US$1,122 million. The company has recorded insurance recoveries of US$547 million. Legal proceedings are ongoing with insurers for the remaining coverage. While EEP expects to pay US$22 million in civil penalties under the Clean Water Act, the total fine amount is not yet finalized.