8-K

ENBRIDGE INC 8-K Report (Feb 19, 2016)

Filed February 19, 2016For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. reported its 2015 full-year and fourth-quarter results on February 19, 2016. Despite a challenging energy sector environment, the company demonstrated resilience, reporting strong adjusted earnings and available cash flow from operations (ACFFO) that were in line with expectations. Full-year 2015 adjusted earnings were $1,866 million ($2.20 per share), and ACFFO was $3,154 million ($3.72 per share), representing significant year-over-year growth. The company successfully executed its growth capital program, bringing $8 billion in projects online in 2015 and expanding its renewable energy portfolio. A key highlight for investors is the 14% increase in the quarterly dividend to $0.53 per share, marking the 21st consecutive year of dividend increases, supported by strong dividend coverage. Enbridge also provided 2016 guidance for ACFFO between $3.80 and $4.50 per share, indicating continued expected growth.

Key Highlights

  • 1Full-year 2015 adjusted earnings were $1,866 million ($2.20 per common share), up from $1,574 million ($1.90 per common share) in 2014.
  • 2Full-year 2015 Available Cash Flow from Operations (ACFFO) was $3,154 million ($3.72 per common share), an increase from $2,506 million ($3.02 per common share) in 2014.
  • 3Enbridge raised its quarterly dividend by 14% to $0.53 per common share, effective March 1, 2016.
  • 4The company successfully executed its growth capital program, bringing $8 billion of projects into service in 2015.
  • 5Enbridge expanded its renewable power generation portfolio with acquisitions in West Virginia and the UK, and announced the acquisition of natural gas processing plants in British Columbia.
  • 62016 guidance projected ACFFO between $3.80 and $4.50 per share.
  • 7Despite challenges, the company highlighted the resilience of its low-risk business model with minimal direct commodity price and volume exposure.

Frequently Asked Questions

For the full year 2015, Enbridge reported adjusted earnings of $1,866 million ($2.20 per common share) and Available Cash Flow from Operations (ACFFO) of $3,154 million ($3.72 per common share). This represents a significant increase compared to 2014 results.

Yes, Enbridge announced a 14% increase in its quarterly common share dividend to $0.53 per share, marking the 21st consecutive year of dividend increases. The company noted strong dividend coverage of approximately two times.

Enbridge provided guidance for 2016, expecting ACFFO to be in the range of $3.80 to $4.50 per share, indicating continued expected growth.

In 2015, Enbridge successfully executed its growth capital program, bringing 14 projects valued at $8 billion into service. This included expansions on its liquids mainline system and the acquisition of renewable energy assets and natural gas processing plants.

The report notes that Enbridge received orders from the Minnesota Public Utilities Commission (MNPUC) for the Sandpiper and Line 3 Replacement projects. These orders may lead to delays in construction start dates, pushing in-service dates to early 2019 and potentially increasing project costs, while also deferring approximately $5 billion in capital expenditures.