8-K

ENBRIDGE INC 8-K Report (Jan 5, 2017)

Filed January 5, 2017For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) has announced a 10% increase in its quarterly dividend, raising it to $0.583 per common share, payable on March 1, 2017. This marks the twenty-second consecutive year of dividend increases, underscoring the company's commitment to shareholder returns and the strength of its core business, bolstered by approximately $2 billion in growth capital projects placed into service during 2016. The company anticipates further growth projects coming online in 2017. This dividend hike is separate from the anticipated merger with Spectra Energy Corp. Upon the successful completion of the Spectra Energy acquisition, Enbridge expects to implement an additional dividend increase, bringing the total increase to approximately 15% above the 2016 rate. Management expresses confidence that, following this increase, the combined entity will maintain an industry-leading dividend growth rate of 10-12% annually through 2024, driven by a robust portfolio of diversified energy infrastructure projects.

Key Highlights

  • 1Enbridge Inc. declared a quarterly dividend of $0.583 per common share, a 10% increase from the previous rate.
  • 2This dividend increase represents the 22nd consecutive year Enbridge has raised its common share dividend.
  • 3The company brought approximately $2 billion in growth capital projects into service during 2016.
  • 4The current dividend increase is independent of the planned acquisition of Spectra Energy Corp.
  • 5Upon closing the Spectra Energy acquisition, Enbridge expects a further dividend increase, totaling approximately 15% above the 2016 rate.
  • 6Enbridge anticipates maintaining an industry-leading dividend growth rate of 10-12% per annum through 2024, post-acquisition.

Frequently Asked Questions

The new quarterly dividend amount for Enbridge common shares is $0.583, payable on March 1, 2017, to shareholders of record on February 15, 2017.

This 10% dividend increase is separate from the planned combination with Spectra Energy. Upon the closing of the Spectra Energy acquisition, Enbridge expects to further increase its quarterly dividend by an amount that brings the total aggregate increase to approximately 15% above the prevailing 2016 quarterly rate.

Enbridge's management is confident that following the Spectra Energy acquisition and the expected 15% dividend increase in 2017, the company will be able to continue its industry-leading dividend growth rate of 10-12% per annum through 2024. This outlook is supported by the scale and diversified growth projects of the combined entity.

The dividend increase reflects the strength of Enbridge's base business, the impact of $2 billion in growth capital projects completed in 2016, and expectations for additional projects coming into service in 2017. The company emphasizes its low-risk business model that performs well in various market conditions.