8-K

ENBRIDGE INC 8-K Report (May 12, 2016)

Filed May 12, 2016For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. reported its first quarter 2016 results, showcasing a significant increase in adjusted earnings and available cash flow from operations compared to the prior year. This performance was primarily driven by record throughput on its liquids mainline system and the successful integration of new projects placed into service in late 2015. The company also highlighted strategic growth initiatives, including the acquisition of natural gas processing plants in British Columbia and a significant investment in French offshore wind development. Financially, Enbridge demonstrated its ability to access capital markets effectively, having raised substantial equity in early 2016 to fund its secured growth program. While the company faces headwinds from wildfire disruptions in Alberta, it anticipates a swift return to full operations and expects minimal impact on its full-year financial performance. Enbridge continues to focus on its low-risk business model and predictable cash flow generation, reinforcing its commitment to delivering value to shareholders.

Key Highlights

  • 1Reported Q1 2016 adjusted earnings of $663 million ($0.76 per common share), a substantial increase from $468 million ($0.56 per common share) in Q1 2015.
  • 2Achieved record throughput on its liquids mainline system, with average deliveries exceeding 2.5 million barrels per day, driven by strong western Canadian production.
  • 3Completed the $0.9 billion Greater Toronto Area (GTA) project and acquired $0.5 billion in natural gas processing plants in northeastern British Columbia.
  • 4Announced the acquisition of a 50% interest in Éolien Maritime France SAS (EMF) for $282 million, positioning Enbridge in offshore wind development with potential for significant future investment.
  • 5Successfully raised approximately $2.9 billion in common equity capital in early 2016 to fund its growth program, demonstrating strong access to capital markets.
  • 6The National Energy Board recommended approval for the Canadian portion of the Line 3 Replacement (L3R) Program, a key regulatory milestone.
  • 7Despite operational disruptions due to Alberta wildfires, Enbridge anticipates a rapid restoration of service and expects limited financial impact for the full year.

Frequently Asked Questions

The primary drivers were record throughput volumes on the liquids mainline system, benefiting from strong western Canadian production, and the successful integration of new projects that came online in the latter half of 2015, such as the mainline expansion and the reversal/expansion of Line 9B.

Enbridge completed the $0.9 billion Greater Toronto Area (GTA) project and acquired $0.5 billion in natural gas processing plants in northeastern British Columbia. Additionally, they announced the acquisition of a 50% interest in Éolien Maritime France SAS (EMF), a French offshore wind development company, marking an expansion into renewable energy.

While wildfires caused temporary shutdowns and curtailments of its regional oil sands pipelines, Enbridge is working closely with authorities to restore operations. The company anticipates a swift return to full capacity and expects the disruption to have a minimal impact on its overall 2016 financial performance.

Enbridge has demonstrated strong access to capital markets, having raised approximately $2.9 billion in common equity in early 2016. This capital is sufficient to meet the equity funding requirements for its $26 billion commercially secured capital program through 2017 and provides flexibility for future opportunities.