Highlights
- A 9.8% increase in the Company's common share dividend to
$0.81 /quarter ($3.24 annually), effectiveMarch 1, 2020 . - Updated 2020 financial guidance: EBITDA of approximately
$13.7 billion ; DCF per share of$4.50 to$4.80 per share - Re-affirmation of 5%-7% average long term annual DCF per share growth outlook, based on an equity self-funded model
- Advancement of
Liquids Pipelines U.S. Gulf Coast integrated value chain strategy - Canadian segment of the Line 3 Replacement project placed into service
- Additional spill modelling work on Line 3 Replacement project completed; revised Final Environmental Impact Statement (FEIS) submitted to
Minnesota Public Utilities Commission (MPUC) - Regulatory application for Liquids Mainline contracting expected to be filed before year-end
Strategic Plan
In 2019,
In its 2020 Strategic Plan, the Company is focused on maintaining resilience and prudently growing its three world-class core franchises: Liquids Pipelines, Gas Transmission, and Gas Distribution and Storage. Specific priorities include:
- Ensuring safe and reliable operations and provision of effective and cost-efficient transportation solutions for customers
- Enhance the business through asset optimization, cost efficiencies and low-risk growth
- Executing on
$11 billion secured growth capital program, including theU.S. segment of the Line 3 Replacement project - Growing core businesses through capital efficient organic growth, disciplined capital allocation, and preservation of balance sheet strength and flexibility
CEO Comment
Commenting on the strategic plan,
"While we make changes to our plans and priorities to adapt to the business environment, one thing that will always stay the same is our focus on the safety and reliability of our systems – this is the single most important priority for everyone at
"In the near term, our emphasis will be on capital efficient in-franchise growth and executing our secured capital projects. We'll continue to maximize operational and financial performance to provide unique value to our customers. Over the medium to longer term,
"We will maintain a disciplined approach to capital allocation. Our near-term priorities on that front are unchanged, as we focus on preserving our strong balance sheet, returning capital to shareholders through our dividend and executing on low risk, capital efficient organic growth opportunities.
"For the last 25 years, we've reliably grown the business and returned capital to shareholders through our dividend, which has consistently grown by 11% annually on average over this time frame. We are pleased to be providing our shareholders with another strong dividend increase for 2020, which reflects the strength of our business, our confidence in the future and our ability to meet the needs of our customers during both attractive and challenging commodity cycles and industry conditions."
2020 Financial Outlook
Separately,
Business Development Updates
Liquids USGC Strategy
Yesterday,
Line 3 Replacement
On
On
The Company will require further clarity on regulatory and permitting process and timing before it is in a position to assess the implications to the in-service date of the
Today,
Details of
The conference will be webcast live on the Company's website and can be accessed via the following link: Sign-up
About Enbridge Inc.
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about
Although we believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labor and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for our projects; anticipated in-service dates; weather; the timing and closing of acquisitions and dispositions; the realization of anticipated benefits and synergies of the Merger Transaction; governmental legislation; the success of integration plans; impact of the dividend policy on our future cash flows; credit ratings; capital project funding; expected EBITDA; expected earnings/(loss); expected earnings/(loss) per share; expected future cash flows and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for our services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which we operate and may impact levels of demand for our services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected EBITDA, expected earnings/(loss), expected earnings/(loss) per share, expected future cash flows and DCF per share and estimated future dividends. The most relevant assumptions associated with forward-looking statements regarding announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labor and construction materials; the effects of inflation and foreign exchange rates on labor and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Our forward-looking statements are subject to risks and uncertainties pertaining to operating performance, regulatory parameters, changes in regulations applicable to our business, acquisitions and dispositions, the realization of anticipated benefits and synergies of the Merger Transaction and the transactions undertaken to simplify our corporate structure, our dividend policy, project approval and support, renewals of rights-of-way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in our other filings with Canadian and
Non-GAAP Measures
This news release makes reference to non-GAAP measures, including distributable cash flow (DCF) and DCF per share. DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to non-controlling interests and redeemable non-controlling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management uses DCF to assess performance of the Company and to set its dividend payout target. Management believes the presentation of these measures gives useful information to investors and shareholders as they provide increased transparency and insight into the performance of the Company.
Reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items, particularly certain contingent liabilities and non-cash unrealized derivative fair value losses and gains which are subject to market variability. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without unreasonable effort.
The non-GAAP measures described above are not measures that have a standardized meaning prescribed by generally accepted accounting principles in
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
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Email: media@enbridge.com
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Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
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