8-K

ENBRIDGE INC 8-K Report (Dec 3, 2015)

Filed December 3, 2015For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) filed a Form 6-K on December 3, 2015, primarily to announce a significant 14% increase in its quarterly dividend, signaling strong confidence in its financial performance and business outlook. This marks the twenty-first consecutive year of dividend increases, reinforcing its value proposition to shareholders. The company also provided its 2016 guidance, projecting available cash flow from operations (ACFFO) per share in the range of $3.80 to $4.50 and Adjusted Earnings Before Interest and Taxes (EBIT) between $4.4 billion and $4.8 billion. The announcement highlights Enbridge's robust growth program, with a $38 billion plan over five years, $25 billion of which is secured and in execution. This program is expected to drive compound average annual ACFFO per share growth of 15-18% and dividend per share growth of 14-16% through 2019. Despite a challenging commodity price environment, Enbridge remains focused on reliable operations, cost management, and strategic market access, positioning itself positively for longer-term energy fundamentals.

Key Highlights

  • 1Enbridge declared a 14% increase in its quarterly dividend to $0.53 per common share, payable March 1, 2016.
  • 2This dividend increase represents the 21st consecutive year of dividend growth for the company.
  • 3Provided 2016 guidance for Available Cash Flow from Operations (ACFFO) per share: $3.80 - $4.50.
  • 4Issued 2016 guidance for Enterprise-wide Adjusted Earnings Before Interest and Taxes (EBIT): $4.4 billion - $4.8 billion.
  • 5Outlined a five-year strategic plan with a $38 billion growth program, $25 billion of which is commercially secured and in execution.
  • 6Projected compound average annual ACFFO per share growth of 15-18% through 2019.
  • 7Anticipated annual average dividend per share growth of 14-16% through 2019.

Frequently Asked Questions

The main purpose of this Form 6-K filing is to announce Enbridge's 2016 guidance and a significant increase in its quarterly dividend, demonstrating confidence in its future performance and commitment to shareholder returns.

The quarterly dividend is increasing by 14% to $0.53 per common share, payable on March 1, 2016, to shareholders of record on February 16, 2016.

Enbridge provided a guidance range for 2016 ACFFO per share of $3.80 to $4.50 and for enterprise-wide Adjusted EBIT of $4.4 billion to $4.8 billion. This growth is attributed to existing businesses and the successful execution of its capital program.

Enbridge has a $38 billion growth program over five years, with $25 billion secured and in execution. This program is expected to drive significant ACFFO and dividend per share growth through 2019, supported by strong longer-term energy fundamentals.