8-K

ENBRIDGE INC 8-K Report (May 11, 2017)

Filed May 11, 2017For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) filed an 8-K report on May 11, 2017, detailing its interim financial results for the three months ended March 31, 2017, and providing updates on significant corporate activities. The most impactful event disclosed is the completion of the merger with Spectra Energy on February 27, 2017. This combination significantly expanded Enbridge's asset base and operational scale, creating North America's largest energy infrastructure company and positioning it for robust future growth. The report also outlines strategic actions related to Enbridge Energy Partners, L.P. (EEP), including the acquisition of Midcoast assets and restructuring actions aimed at restoring EEP's value proposition. Additionally, Enbridge is making progress on its asset monetization program, having exceeded its $2 billion target through the sale of shares in Enbridge Income Fund Holdings Inc. (ENF) and other divestitures.

Key Highlights

  • 1Completion of the merger with Spectra Energy on February 27, 2017, creating a significantly larger and more diversified North American energy infrastructure company.
  • 2Introduction of new business segments and expanded asset portfolio, particularly in natural gas transmission, midstream gathering, and distribution, following the Spectra Energy acquisition.
  • 3Strategic restructuring of Enbridge Energy Partners, L.P. (EEP), including the acquisition of Midcoast assets and actions to enhance EEP's value proposition for unitholders.
  • 4Exceeded the $2 billion asset monetization target through the secondary offering of Enbridge Income Fund Holdings Inc. (ENF) shares and other divestitures.
  • 5Reported earnings attributable to common shareholders of $638 million ($0.54 per share) for Q1 2017, a decrease from $1,213 million ($1.38 per share) in Q1 2016, largely due to the impact of the merger's share issuance and other factors.
  • 6Ongoing progress on a significant capital program with approximately $27 billion of commercially secured growth projects expected to come into service through 2019.
  • 7Updates on key growth projects, including the Line 3 Replacement Program (Canadian and U.S. portions) and various gas pipeline and processing projects acquired through the Spectra Energy merger.

Frequently Asked Questions

The merger with Spectra Energy, completed on February 27, 2017, significantly expanded Enbridge's scale and diversification, creating North America's largest energy infrastructure company. It integrated Spectra's substantial natural gas infrastructure assets with Enbridge's liquids pipeline business, enhancing the combined entity's market position and growth prospects.

For the three months ended March 31, 2017, Enbridge reported earnings attributable to common shareholders of $638 million, or $0.54 per common share, compared to $1,213 million, or $1.38 per common share, in the same period of 2016. This decrease was influenced by the increased number of shares outstanding due to the Spectra Energy merger consideration and the impact of merger-related costs.

Enbridge is undertaking a strategic review of EEP. Key actions include the acquisition of Midcoast assets by Enbridge directly, the finalization of a joint funding agreement for the Bakken Pipeline System with EEP, and restructuring actions at EEP such as the redemption of preferred units and a reduction in EEP's quarterly distribution. These steps are aimed at restoring EEP's value proposition for its unitholders.

Yes, Enbridge has exceeded its goal of divesting $2 billion in assets within 12 months. This was achieved through the secondary offering of Enbridge Income Fund Holdings Inc. (ENF) shares, the sale of the Ozark pipeline system, and other divestitures.