8-K

ENBRIDGE INC 8-K Report (Nov 5, 2014)

Filed November 5, 2014For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. reported its third quarter 2014 financial results, highlighting strong operational performance and progress on its extensive growth capital program. The company announced adjusted earnings of $345 million, or $0.41 per common share, and reaffirmed its full-year adjusted earnings per share guidance. Key strategic initiatives included agreements to transfer assets to sponsored vehicles, Enbridge Income Fund and Enbridge Energy Partners, L.P., for approximately $1.8 billion and US$900 million, respectively. These transactions are intended to provide low-cost funding for growth and enhance shareholder value. Financially, Enbridge raised approximately $1.1 billion through debt and preference share issuances and an additional $2 billion in private note placements to support its long-term financing plan. The company also reported progress on several key growth projects, including the mechanical completion of the Flanagan South Pipeline and the expansion of the Line 6B replacement project. However, the in-service date for the Line 9B reversal and expansion project has been delayed pending further information requested by the National Energy Board.

Key Highlights

  • 1Third quarter adjusted earnings were $345 million ($0.41 per common share), with full-year adjusted earnings per share guidance reaffirmed.
  • 2Agreement to transfer assets to Enbridge Income Fund for $1.8 billion and proposed drop down to Enbridge Energy Partners, L.P. for US$900 million to fund growth.
  • 3Raised approximately $1.1 billion through public debt and preference share issuances and an additional $2 billion through private note placements.
  • 4Flanagan South Pipeline mechanically complete; line fill underway, opening up new capacity to the U.S. Gulf Coast.
  • 5Line 6B replacement and expansion project completed, increasing capacity in Indiana and Michigan.
  • 6The in-service date for the Line 9B reversal and expansion is delayed due to a request for additional information from the National Energy Board.
  • 7Enbridge Gas Distribution received approval for its five-year Incentive Rate application, expected to allow for recovery of capital investment and opportunity for above-allowed return on equity.

Frequently Asked Questions

Enbridge anticipates extending its average annual adjusted earnings per share growth rate of 10-12% through 2018, supported by its significant $44 billion growth capital program, with $33 billion already commercially secured and in execution.

Enbridge is utilizing a multi-faceted financing strategy, including substantial debt and preference share issuances ($1.1 billion in public markets and $2 billion in private placements during Q3 2014), as well as leveraging its sponsored vehicles (Enbridge Income Fund and Enbridge Energy Partners, L.P.) to monetize assets and access capital.

The in-service date for Enbridge's Line 9B reversal and expansion project has been delayed. The National Energy Board has requested additional information regarding one of the project's conditions, and Enbridge is currently working with the Board to address these requirements. The length of the delay is not yet estimated.