Highlights
(All financial figures are unaudited and in Canadian dollars unless otherwise noted. * identifies non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices.)
- First quarter GAAP earnings of
$1.9 billion or$0.95 per common share, compared with GAAP earnings of$1.9 billion or$0.94 per common share in 2021 - Adjusted earnings* of
$1.7 billion or$0.84 per common share*, compared with$1.6 billion or$0.81 per common share* in 2021 - Adjusted earnings before interest, income taxes and depreciation and amortization (EBITDA)* of
$4.1 billion , compared with$3.7 billion in 2021 - Cash provided by operating activities of
$2.9 billion , compared with$2.6 billion in 2021 - Distributable cash flow (DCF)* of
$3.1 billion or$1.52 per common share*, compared with$2.8 billion or$1.37 per common share* in 2021 - Reaffirmed 2022 full year guidance range for EBITDA of
$15.0 billion to$15.6 billion and DCF per share of$5.20 to$5.50 - Placed the 455-kilometre,
$0.2 billion East-West Tie Transmission Line into service providing reliable, long-term electricity toNorthwest Ontario - Sanctioned
$0.3 billion expansion of the Panhandle Regional Transmission System to meet growing natural gas demand inSouthern Ontario ; operations to commence in late-2023 - Announced an Open Season for up to a 400 MMcf/d expansion of the B.C. Pipeline System's T-North section with a 2026 in-service date to meet increasing demand
- Awarded the right to advance the Open Access Wabamun Carbon Hub designed to capture 4 million tonnes of CO2 emissions annually
- Announced Letter of Intent with
Humble Midstream LLC to develop blue hydrogen, ammonia and associated carbon capture infrastructure at the Enbridge Ingleside Energy Center nearCorpus Christi, Texas on theU.S. Gulf Coast - Progressing construction of four French offshore renewable projects with combined gross power generation of approximately 1.5 gigawatts (0.3 GW net)
- Advancing capital allocation priorities; on track to achieve Debt to EBITDA of 4.7x or lower by year end and executed initial share repurchases during the first quarter
CEO COMMENT
"It's clear we are at an inflection point in global energy markets. Energy demand continues to grow, which combined with underinvestment in new supply, is driving energy shortages and higher prices. Now, more than ever, it's evident that all forms of energy, conventional and low carbon, are needed to meet the growing demand while ensuring society has access to affordable, reliable, secure and cleaner energy.
"This global energy crisis further heightens the essential role that conventional energy will play for decades to come. But, we also need to meet our global emissions goals across the value chain and leverage existing infrastructure to accelerate investment in low-carbon energy.
"The current environment reinforces that our two-pronged strategy to advance both conventional and low-carbon energy investments is a prudent approach to ensure delivery of the energy that people need and want in their daily lives. Our diversified asset footprint, integrated North American transportation systems, access to tide water, and established renewable power assets and low-carbon execution capabilities, provide us a competitive advantage. We're working closely with our customers to accelerate new infrastructure investments to meet growing demand, increase connections to export markets, and enable cleaner energies.
"ESG leadership is central to our differentiated approach to energy delivery and our goal is to continue to lead our sector. We have advanced our diversity goals at all levels of the organization, including our Board of Directors, and making good progress. Early actions and business plans have us on track to meet our 2030 emissions intensity and 2050 Net-Zero goals to stay ahead of the curve. We've also recently committed to additional actions, including supporting organizations developing science-based guidelines for the midstream sector and engaging with key suppliers to further support Scope 3 emissions reductions.
"First quarter operational performance and utilization across each of our businesses translated into a strong start to the year. The
"In Liquids Pipelines, we're in discussions with industry on a new commercial framework for our Mainline. Detailed cost information has been shared with shippers, providing the transparency necessary for negotiations, and we continue to expect to have a new commercial model in effect by mid-to-late 2023.
"The acquisition of the Ingleside Energy Center has provided us with the premier crude oil export facility in the
"We're very excited to be moving our
"In Gas Transmission, we're seeing a strong pick up in commercial interest from
"In
"Our utility franchise continues to generate ratable growth. We're on track to add more than 40 thousand natural gas customers this year. Yesterday we sanctioned a
"In Renewables, we're making good progress on construction of four offshore wind projects in
"Our existing assets and execution of the secured capital program over our three-year plan is expected to support a 5-7% distributable cash flow per share compound average growth rate through 2024 relative to 2021. After providing for a strong balance sheet and ratable dividend growth, we'll possess
"In summary, we are pleased with our progress on our strategic priorities and a good start to the year. Our existing connections to the best markets, paired with leading low-carbon capabilities, position
FINANCIAL RESULTS SUMMARY
Financial results for the three months ended
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars, except per share amounts; number of shares in millions) | ||
GAAP Earnings attributable to common shareholders | 1,927 | 1,900 |
GAAP Earnings per common share | 0.95 | 0.94 |
Cash provided by operating activities | 2,939 | 2,564 |
Adjusted EBITDA1 | 4,147 | 3,743 |
Adjusted Earnings1 | 1,705 | 1,634 |
Adjusted Earnings per common share1 | 0.84 | 0.81 |
Distributable Cash Flow1 | 3,072 | 2,761 |
Weighted average common shares outstanding | 2,026 | 2,022 |
1 Non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices. |
GAAP earnings attributable to common shareholders for the first quarter of 2022 increased by
The period-over-period comparability of GAAP earnings attributable to common shareholders is impacted by certain unusual, infrequent factors or other non-operating factors which are noted in the reconciliation schedule included in Appendix A of this news release. Refer to the Management's Discussion & Analysis for the first quarter of 2022 filed in conjunction with the first quarter financial statements for a detailed discussion of GAAP financial results.
Adjusted EBITDA in the first quarter of 2022 increased by
Adjusted earnings in the first quarter of 2022 increased by
DCF for the first quarter of 2022 increased by
Detailed financial information and analysis can be found below under First Quarter 2022 Financial Results.
FINANCIAL OUTLOOK
The Company reaffirms its 2022 financial guidance announced at its December Investor Day, which included adjusted EBITDA between
Strong operational performance is expected to be offset by challenging market conditions which continue to impact Energy Services, along with moderately higher financing costs, due to rising interest rates, relative to 2022 financial guidance.
FINANCING UPDATE
On
On
SECURED GROWTH PROJECT EXECUTION UPDATE
Today, the Company announced the
The Company's current secured growth program is approximately
OTHER BUSINESS UPDATES
Mainline Commercial Framework
The Company is currently advancing two potential commercial frameworks for the Mainline in parallel: i) a new incentive rate-making agreement that may be similar to the Competitive Toll Settlement (CTS) agreement that expired on
During the first quarter,
The Company anticipates that its consultation and negotiation with industry will progress through the first half of this year, with the potential to file either a proposed incentive tolling settlement or a cost-of-service application with the Canada Energy Regulator (CER) for review later this year.
As per the terms of the CTS,
Today,
The T-North Expansion will consist of pipeline looping, compressor unit additions and other ancillary station modifications to be placed into service in 2026. The capital cost estimate is approximately
Additionally, the Company continues to develop the previously announced
Carbon Capture and Storage (CCS)
On
The Hub's carbon transportation and sequestration facilities will be co-developed and ultimately co-owned with local Indigenous partners including the
Advancing Low-Carbon Projects at Enbridge Ingleside Energy Center
The Company continues to leverage the Enbridge Ingleside Energy Center (EIEC) location, assets, and undeveloped land to advance conventional and low-carbon energy projects, which unlock further value associated with the EIEC acquisition.
In addition,
Normal Course Issuer Bid (NCIB) Execution
On
Share repurchases made pursuant to the Company's NCIB will be predicated upon maintaining a strong balance sheet, strong business performance, and the availability and attractiveness of alternative capital investment opportunities.
The NCIB implementation provides flexibility to repurchase
During the first quarter of 2022, the Company initiated utilization of the NCIB program to repurchase and cancel approximately 1 million of its common shares.
FIRST QUARTER 2022 FINANCIAL RESULTS
GAAP Segment EBITDA and Cash Flow from Operations
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
Liquids Pipelines | 2,329 | 2,039 |
Gas Transmission and Midstream | 1,014 | 973 |
Gas Distribution and Storage | 665 | 634 |
162 | 156 | |
Energy Services | (101) | 64 |
Eliminations and Other | 355 | 220 |
EBITDA1 | 4,424 | 4,086 |
Earnings attributable to common shareholders | 1,927 | 1,900 |
Cash provided by operating activities | 2,939 | 2,564 |
1 Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. |
For purposes of evaluating performance, the Company makes adjustments to GAAP reported earnings, segment EBITDA and cash flow provided by operating activities for unusual, infrequent or other non-operating factors, which allow Management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
Adjusted EBITDA By Segment
Adjusted EBITDA generated from U.S. dollar denominated businesses was translated to Canadian dollars at a comparable average exchange rate of
Liquids Pipelines
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
Mainline System | 1,284 | 1,131 |
Regional Oil Sands System | 245 | 237 |
347 | 189 | |
Other Systems1 | 341 | 324 |
Adjusted EBITDA2 | 2,217 | 1,881 |
Operating Data (average deliveries – thousands of bpd) | ||
Mainline System - ex- | 3,004 | 2,746 |
International Joint Tariff (IJT)4 | ||
Competitive Tolling Settlement (CTS) Surcharges4 | ||
Line 3 Replacement Surcharge4,5 |
1 | Other consists of Southern Lights Pipeline, Express-Platte System, Bakken System, and Feeder Pipelines & Other. |
2 | Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. |
3 | Mainline System throughput volume represents mainline system deliveries ex- |
4 | The IJT benchmark toll and its components are set in |
5 | The interim surcharge of |
Liquids Pipelines adjusted EBITDA increased
- higher Mainline System throughput enabled by incremental Line 3 capacity placed into service
October 1, 2021 , higher tolls due to the implementation of the full Line 3 Replacement surcharge ofUS$0.935 per barrel compared with the surcharge on the Canadian portion of the project ofUS$0.20 per barrel in effect prior toOctober 2021 , partially offset by the recognition of a provision against the interim Mainline IJT for barrels shipped in 2022; and - higher contributions from the
Gulf Coast and Mid-Continent System due primarily to the acquisition of the Ingleside Energy Center, and related assets, in the fourth quarter of 2021 and higher contributions from market access pipelines on higher volumes to meet growingU.S. Gulf Coast crude oil demand.
Gas Transmission And Midstream
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
759 | 782 | |
Canadian Gas Transmission | 177 | 142 |
89 | 43 | |
Other | 33 | 40 |
Adjusted EBITDA1 | 1,058 | 1,007 |
1 Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. |
Gas Transmission and Midstream adjusted EBITDA increased
- higher Canadian Gas Transmission contributions from the T-South Expansion and
Spruce Ridge projects placed fully into service in the fourth quarter of 2021; and - higher
U.S. midstream contributions resulting from higher commodity prices atEnbridge's Aux Sable and DCP joint ventures; partially offset by - lower
U.S. Gas Transmission contributions on the timing of operating cost expenditures, partially offset by contributions from the Cameron Extension, Middlesex Extension and the Appalachia to Market projects placed into service in the fourth quarter of 2021.
Gas Distribution And Storage
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
656 | 604 | |
Other | 18 | 42 |
Adjusted EBITDA1 | 674 | 646 |
Operating Data | ||
EGI | ||
Volumes (billions of cubic feet) | 816 | 671 |
Number of active customers2(millions) | 3.8 | 3.8 |
Heating degree days3 | ||
Actual | 2,028 | 1,807 |
Forecast based on normal weather4 | 1,921 | 1,924 |
1 Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. |
2 Number of active customers is the number of natural gas consuming customers at the end of the reported period. |
3 Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in EGI's distribution franchise areas. |
4 Normal weather is the weather forecast by EGI in its legacy rate zones, using the forecasting methodologies approved by the Ontario Energy Board. |
Gas Distribution and Storage adjusted EBITDA will typically follow a seasonal profile. It is generally highest in the first and fourth quarters of the year reflecting greater volumetric demand during the heating season. The magnitude of the seasonal EBITDA fluctuations will vary from year-to-year reflecting the impact of colder or warmer than normal weather on distribution volumes.
Gas Distribution and Storage adjusted EBITDA increased
- the positive impact of colder weather in 2022 of approximately
$51 million ; and - higher distribution charges resulting from increases in rates and customer base; partially offset by
- the absence of earnings from our minority interest in
Noverco Inc. which was sold onDecember 30, 2021 .
When compared with the normal weather forecast embedded in rates, the colder weather in the first quarter of 2022 positively impacted EBITDA by approximately
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
Adjusted EBITDA1 | 160 | 154 |
1 Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. |
- stronger wind resources at Canadian and European offshore wind facilities;
- higher energy pricing at the Rampion offshore wind facilities; and
- the absence in 2022 of the effects from the winter storm in
Texas duringFebruary 2021 ; partially offset by - the absence of the promote fee received in the first quarter of 2021 associated with the closing of the sale to Canada Pension Plan (CPP) Investments of 49% of
Enbridge's interest in three French offshore wind projects under construction.
Energy Services
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
Adjusted EBITDA1 | (71) | (75) |
1 Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. |
Energy Services adjusted EBITDA increased
- the absence of adverse impacts from the winter storm in
Texas duringFebruary 2021 ; partially offset by - a more pronounced market structure backwardation than in the same period of 2021 limiting storage opportunities and significant compression of location and quality differentials in certain markets.
Eliminations and Other
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
Operating and administrative recoveries | 68 | 106 |
Realized foreign exchange hedge settlement gains | 41 | 24 |
Adjusted EBITDA1 | 109 | 130 |
1 Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. |
Operating and administrative recoveries captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) inclusive of amounts recovered from business units for the provision of those services.
Eliminations and Other adjusted EBITDA decreased
- the timing of recovery of operating and administrative costs from the business segments; partially offset by
- higher realized foreign exchange gains.
Distributable Cash Flow
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars; number of shares in millions) | ||
Liquids Pipelines | 2,217 | 1,881 |
Gas Transmission and Midstream | 1,058 | 1,007 |
Gas Distribution and Storage | 674 | 646 |
160 | 154 | |
Energy Services | (71) | (75) |
Eliminations and Other | 109 | 130 |
Adjusted EBITDA1,3 | 4,147 | 3,743 |
Maintenance capital | (104) | (109) |
Interest expense1 | (733) | (677) |
Current income tax1 | (173) | (101) |
Distributions to noncontrolling interests1 | (60) | (68) |
Cash distributions in excess of equity earnings1 | 33 | 43 |
Preference share dividends | (91) | (92) |
Other receipts of cash not recognized in revenue2 | 41 | 19 |
Other non-cash adjustments | 12 | 3 |
DCF3 | 3,072 | 2,761 |
Weighted average common shares outstanding | 2,026 | 2,022 |
1 Presented net of adjusting items. |
2 Consists of cash received, net of revenue recognized, for contracts under make-up rights and similar deferred revenue arrangements. |
3 Non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices. |
First quarter 2022 DCF increased
- higher current income tax due to higher taxable earnings and an increase in
U.S. minimum taxes; and - higher interest expense due to lower capitalized interest associated with the
U.S. portion of the Line 3Replacement Project placed into service in the fourth quarter of 2021 as well as higher debt balances associated with advancing the Company's secured growth program in 2021.
Adjusted Earnings
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars, except per share amounts) | ||
Adjusted EBITDA1,2 | 4,147 | 3,743 |
Depreciation and amortization | (1,065) | (932) |
Interest expense2 | (722) | (665) |
Income taxes2 | (526) | (399) |
Noncontrolling interests2 | (27) | (21) |
Preference share dividends | (102) | (92) |
Adjusted earnings1 | 1,705 | 1,634 |
Adjusted earnings per common share1 | 0.84 | 0.81 |
1 Non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices. |
2 Presented net of adjusting items. |
Adjusted earnings increased
- higher depreciation expense on new assets placed into service throughout 2021, including the
U.S. portion of the Line 3Replacement Project , which was placed into service in the fourth quarter and the Ingleside Energy Center acquired in October, 2021; - higher interest expense due to lower capitalized interest associated with the
U.S. portion of the Line 3Replacement Project placed into service in the fourth quarter of 2021 as well as higher debt balances associated with advancing the Company's secured growth program in 2021; and - higher income taxes due to higher taxable earnings and an increase in
U.S. minimum taxes.
CONFERENCE CALL
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only.
DIVIDEND DECLARATION
On
Dividend per share | |
Common Shares1 | |
Preference Shares, Series A | |
Preference Shares, Series B | |
Preference Shares, Series C2 | |
Preference Shares, Series D | |
Preference Shares, Series F | |
Preference Shares, Series H | |
Preference Shares, Series J3 | |
Preference Shares, Series L | |
Preference Shares, Series N | |
Preference Shares, Series P | |
Preference Shares, Series R | |
Preference Shares, Series 1 | |
Preference Shares, Series 3 | |
Preference Shares, Series 5 | |
Preference Shares, Series 7 | |
Preference Shares, Series 9 | |
Preference Shares, Series 11 | |
Preference Shares, Series 13 | |
Preference Shares, Series 15 | |
Preference Shares, Series 19 |
1 | The quarterly dividend per common share was increased 3% to |
2 | The quarterly dividend per share paid on Series C was increased to |
3 | On |
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about
Although
ABOUT
None of the information contained in, or connected to,
FOR FURTHER INFORMATION PLEASE CONTACT: | ||
Toll Free: (888) 992-0997 | Toll Free: (800) 481-2804 | |
Email: media@enbridge.com | Email: investor.relations@enbridge.com |
NON-GAAP RECONCILIATIONS APPENDICES
This news release contains references to EBITDA, adjusted EBITDA, adjusted earnings, adjusted earnings per common share and DCF. Management believes the presentation of these metrics gives useful information to investors and shareholders, as they provide increased transparency and insight into the performance of the Company.
EBITDA represents earnings before interest, tax, depreciation and amortization.
Adjusted EBITDA represents EBITDA adjusted for unusual, infrequent or other non-operating factors on both a consolidated and segmented basis. Management uses EBITDA and adjusted EBITDA to set targets and to assess the performance of the Company and its business units.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, infrequent or other non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, infrequent or other non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes and noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another measure of the Company's ability to generate earnings.
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 noncontrolling interests, preference share dividends and maintenance capital expenditures and further adjusted for unusual, infrequent or other non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
This news release also contains references to Debt to EBITDA, a non-GAAP ratio which utilizes adjusted EBITDA as one of its components. Debt to EBITDA is used as a liquidity measure to indicate the amount of adjusted earnings to pay debt, as calculated on the basis of generally accepted accounting principles in
Reconciliations of forward-looking non-GAAP financial measures and non-GAAP ratios to comparable GAAP measures are not available due to the challenges and impracticability of estimating certain items, particularly certain contingent liabilities and non-cash unrealized derivative fair value losses and gains subject to market variability. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures and non-GAAP ratios is not available without unreasonable effort.
Our non-GAAP financial measures and non-GAAP ratios described above are not measures that have standardized meaning prescribed by
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON-GAAP RECONCILIATIONS – ADJUSTED EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
Liquids Pipelines | 2,329 | 2,039 |
Gas Transmission and Midstream | 1,014 | 973 |
Gas Distribution and Storage | 665 | 634 |
162 | 156 | |
Energy Services | (101) | 64 |
Eliminations and Other | 355 | 220 |
EBITDA | 4,424 | 4,086 |
Depreciation and amortization | (1,055) | (932) |
Interest expense | (719) | (657) |
Income tax expense | (593) | (483) |
Earnings attributable to noncontrolling interests | (28) | (22) |
Preference share dividends | (102) | (92) |
Earnings attributable to common shareholders | 1,927 | 1,900 |
ADJUSTED EBITDA TO ADJUSTED EARNINGS
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars, except per share amounts) | ||
Liquids Pipelines | 2,217 | 1,881 |
Gas Transmission and Midstream | 1,058 | 1,007 |
Gas Distribution and Storage | 674 | 646 |
160 | 154 | |
Energy Services | (71) | (75) |
Eliminations and Other | 109 | 130 |
Adjusted EBITDA | 4,147 | 3,743 |
Depreciation and amortization | (1,065) | (932) |
Interest expense | (722) | (665) |
Income tax expense | (526) | (399) |
Earnings attributable to noncontrolling interests | (27) | (21) |
Preference share dividends | (102) | (92) |
Adjusted earnings | 1,705 | 1,634 |
Adjusted earnings per common share | 0.84 | 0.81 |
EBITDA TO ADJUSTED EARNINGS
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars, except per share amounts) | ||
EBITDA | 4,424 | 4,086 |
Adjusting items: | ||
Change in unrealized derivative fair value gain - Foreign exchange | (433) | (279) |
Change in unrealized derivative fair value (gain)/loss - Commodity prices | 21 | (139) |
Impairment of lease assets | 44 | — |
Transition and transformation costs | 27 | 33 |
Other | 64 | 42 |
Total adjusting items | (277) | (343) |
Adjusted EBITDA | 4,147 | 3,743 |
Depreciation and amortization | (1,055) | (932) |
Interest expense | (719) | (657) |
Income tax expense | (593) | (483) |
Earnings attributable to noncontrolling interests | (28) | (22) |
Preference share dividends | (102) | (92) |
Adjusting items in respect of: | ||
Depreciation and amortization | (10) | — |
Interest expense | (3) | (8) |
Income tax recovery | 67 | 84 |
Earnings attributable to noncontrolling interests | 1 | 1 |
Adjusted earnings | 1,705 | 1,634 |
Adjusted earnings per common share | 0.84 | 0.81 |
APPENDIX B
NON-GAAP RECONCILIATION – ADJUSTED EBITDA TO SEGMENTED EBITDA
LIQUIDS PIPELINES
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
Adjusted EBITDA | 2,217 | 1,881 |
Change in unrealized derivative fair value gain | 122 | 161 |
Other | (10) | (3) |
Total adjustments | 112 | 158 |
EBITDA | 2,329 | 2,039 |
GAS TRANSMISSION AND MIDSTREAM
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
Adjusted EBITDA | 1,058 | 1,007 |
Equity earnings adjustment - | (63) | (19) |
Other | 19 | (15) |
Total adjustments | (44) | (34) |
EBITDA | 1,014 | 973 |
GAS DISTRIBUTION AND STORAGE
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
Adjusted EBITDA | 674 | 646 |
Change in unrealized derivative fair value gain | — | 2 |
Transition and transformation costs | (9) | (14) |
Total adjustments | (9) | (12) |
EBITDA | 665 | 634 |
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
Adjusted EBITDA | 160 | 154 |
Change in unrealized derivative fair value gain | 2 | 2 |
Total adjustments | 2 | 2 |
EBITDA | 162 | 156 |
ENERGY SERVICES
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
Adjusted EBITDA | (71) | (75) |
Change in unrealized derivative fair value gain/(loss) | (21) | 139 |
Net inventory adjustment | (9) | — |
Total adjustments | (30) | 139 |
EBITDA | (101) | 64 |
ELIMINATIONS AND OTHER
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars) | ||
Adjusted EBITDA | 109 | 130 |
Change in unrealized derivative fair value gain | 309 | 114 |
Impairment of lease assets | (44) | — |
Transition and transformation costs | (18) | (19) |
Other | (1) | (5) |
Total adjustments | 246 | 90 |
EBITDA | 355 | 220 |
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING ACTIVITIES TO DCF
Three months ended | ||
2022 | 2021 | |
(unaudited; millions of Canadian dollars, except per share amounts) | ||
Cash provided by operating activities | 2,939 | 2,564 |
Adjusted for changes in operating assets and liabilities1 | 252 | 418 |
3,191 | 2,982 | |
Distributions to noncontrolling interests2 | (60) | (68) |
Preference share dividends | (91) | (92) |
Maintenance capital expenditures3 | (104) | (109) |
Significant adjusting items: | ||
Other receipts of cash not recognized in revenue4 | 41 | 19 |
Transition and transformation costs | 27 | 35 |
Distributions from equity investments in excess of cumulative earnings2 | 183 | 61 |
Other items | (115) | (67) |
DCF | 3,072 | 2,761 |
DCF per common share | 1.52 | 1.37 |
1 | Changes in operating assets and liabilities, net of recoveries. |
2 | Presented net of adjusting items. |
3 | Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing pipeline system or that are necessary to maintain the service capability of the existing assets (including the replacement of components that are worn, obsolete or completing their useful lives). For the purpose of DCF, maintenance capital excludes expenditures that extend asset useful lives, increase capacities from existing levels or reduce costs to enhance revenues or provide enhancements to the service capability of the existing assets. |
4 | Consists of cash received, net of revenue recognized, for contracts under make-up rights and similar deferred revenue arrangements. |
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