CALGARY, Feb. 15, 2019
/CNW/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB)
(NYSE:ENB) today reported fourth quarter and full year 2018
financial results and provided a quarterly business update.
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS
(all
financial figures are unaudited and in Canadian dollars unless
otherwise noted)
- GAAP earnings of $1,089 million
or $0.60 per common share for the
fourth quarter of 2018 and $2,515
million or $1.46 per
common share for the full year 2018, both including the impact of a
number of unusual, non-recurring or non-operating factors
- Adjusted earnings were $1,166
million or $0.65 per common
share for the fourth quarter of 2018 and $4,568 million or $2.65 per common share for the full year 2018,
compared to $1,013 million or
$0.61 per common share in the fourth
quarter of 2017 and $2,982 million or
$1.96 per common share for the full
year 2017
- Adjusted earnings before interest, income tax and depreciation
and amortization (EBITDA) were $3,320
million for the fourth quarter of 2018 and $12,849 million for the full year, compared to
$2,963 million in the fourth quarter
of 2017 and $10,317 million for the
full year 2017
- Cash Provided by Operating Activities was $2,503 million for the fourth quarter of 2018 and
$10,502 million for the full year
2018, compared to $1,341 million for
the fourth quarter of 2017 and $6,658
million for the full year 2017
- Distributable Cash Flow (DCF) was $1,863
million for the fourth quarter and $7,618 million for the full year 2018, compared
to $1,741 million for the fourth
quarter of 2017 and $5,614 million
for the full year 2017
- Reaffirmed financial guidance for 2019 and 2020, with the
midpoint of the DCF per share guidance range of $4.45 per share and $5.00 per share respectively
- Increased the dividend by 10% for 2019 and reaffirmed expected
dividend growth of 10% in 2020; guided to a longer term 5-7% DCF
per share CAGR post-2020
- Brought $7 billion of new
projects into service in 2018, including the US$1.5 billion NEXUS/TEAL gas pipeline projects
in October and the US$1.6 billion
Valley Crossing gas pipeline project in November
- Reached significant milestones on the Line 3 Replacement
Project, including: Regulatory approval by the Minnesota Public
Utilities Commission (MPUC); initiated Federal and Minnesota state permitting process, and made
significant progress on construction in Canada
- Announced $1.8 billion of secured
growth projects in the fourth quarter across both the natural gas
transmission and liquids pipelines businesses
- Announced an additional $0.3
billion of secured growth capital projects consisting of a
regulated electricity transmission line in Ontario and a long-term contracted pipeline
adjacent to the Nexus Pipeline
- Amalgamated the Company's Ontario based natural gas utilities effective
January 1, 2019, following approval
of an incentive based regulatory framework by the Ontario Energy
Board
- Simplified the Company's corporate structure with the buy-in of
the public interest of Enbridge's four sponsored vehicles
- Implemented changes to the Company's debt funding structure
through a series of actions to reduce structural subordination,
enhancing the credit profile of the parent corporation and reducing
the cost of debt capital
- Announced $7.8 billion of
non-core asset sales, $5.7 billion of
which have closed; proceeds used to accelerate planned deleveraging
and strengthen balance sheet
- Suspended the Dividend Reinvestment Program (DRIP) effective
with the December 1, 2018 dividend
payment, moving Enbridge to a fully self-funded growth model
- On January 25, 2019, Moody's
upgraded Enbridge Inc.'s senior unsecured debt rating from Baa3 to
Baa2 with a positive outlook
CEO COMMENT
"It was a strong year for Enbridge, both from a financial and
strategic perspective," commented Al
Monaco, President and Chief Executive Officer of
Enbridge.
"Financially, record operating performance across our natural
gas and liquids businesses translated into full year DCF per share
results near the top of our guidance range. We are pleased with the
20% DCF per share increase over last year, which reflects strong
contributions from each of our core businesses driven by operating
performance, optimization of throughput on existing assets, synergy
realization from the Spectra acquisition and successfully bringing
$7 billion of new projects into
service in 2018.
"Strategically, we achieved the key priorities laid out in our
three year business plan that was rolled out at the end of 2017,
ahead of schedule. In addition to delivering strong cash flow and
earnings per share growth, we executed significant non-core asset
sales, accelerated balance sheet de-leveraging and simplified the
corporate structure.
"We've received close to $6
billion of proceeds from the $7.8
billion of non-core asset sales announced through 2018.
These sales allowed us to fully focus attention on our low risk
pipeline and utility assets. The proceeds were applied to debt
repayment so that at year-end, our consolidated Debt to EBITDA
metric was down to 4.7x, well ahead of our original target of
5.0x.
"In addition, in the fourth quarter we completed the buy-in of
all four of our sponsored vehicles. This now brings all of our core
assets together under the Enbridge roof which allows us to retain
more cash flow to re-invest in the business and for financial
flexibility, as well as significantly enhancing our credit
profile.
"It was another successful year for project execution,
$7 billion of pipeline and utility
assets were brought into service, including the Nexus and the
Valley Crossing natural gas pipelines. Both are supported by long
term take or pay contracts with strong customers and are perfect
examples of our low-risk pipeline and utility model.
"We made great progress on the Line 3 replacement project.
Construction is nearing completion in Canada, and with key approvals now received
from the MPUC, we've moved into the permitting phase of the project
in Minnesota. We continue to
expect to bring the full project into service before the end of
2019. This critical integrity enhancement project will support
reliable energy supply to local and regional refiners and restore
much needed additional pipeline egress for Western Canadian
producers.
"Lastly, the $1.8 billion of new
secured growth projects that we announced at our investor
conference in December illustrates the types of opportunities
available across our businesses. We expect to capitalize on strong
global energy fundamentals to extend and expand our networks,
particularly in support of North American energy exports. In
fact, post 2020 we expect to be able to deploy $5-6 billion per year on organic growth on a
self-funded basis while maintaining prudent debt metrics. However,
we'll continue to take a disciplined approach to investment
decisions, comparing each to alternative capital allocation options
in order to maximize shareholder value.
"In summary, we're pleased with the accomplishments we made on
our key strategic priorities in 2018. We ended the year as a much
stronger, lower risk, and simpler company than where we started the
year. We're now well positioned to drive the business forward
beyond 2020 as the lowest risk company in our sector with a strong
balance sheet, reliable cash flows and a very attractive
longer-term growth outlook," concluded Mr. Monaco.
FINANCIAL RESULTS SUMMARY
Financial results for the three and twelve months ended
December 31, 2018, are summarized in
the table below:
|
|
|
|
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
2017
|
|
2018
|
2017
|
(unaudited,
millions of Canadian dollars, except per share amounts; number of
shares in millions)
|
|
|
|
|
|
GAAP Earnings
attributable to common shareholders
|
1,089
|
207
|
|
2,515
|
2,529
|
GAAP Earnings per
common share
|
0.60
|
0.13
|
|
1.46
|
1.66
|
Cash provided by
operating activities
|
2,503
|
1,341
|
|
10,502
|
6,658
|
Adjusted
EBITDA1
|
3,320
|
2,963
|
|
12,849
|
10,317
|
Adjusted
Earnings1
|
1,166
|
1,013
|
|
4,568
|
2,982
|
Adjusted Earnings per
common share1
|
0.65
|
0.61
|
|
2.65
|
1.96
|
Distributable Cash
Flow1,2
|
1,863
|
1,741
|
|
7,618
|
5,614
|
Weighted average
common shares outstanding
|
1,806
|
1,652
|
|
1,724
|
1,525
|
|
|
|
|
|
|
1 Non-GAAP
financial measures. Schedules reconciling adjusted EBITDA, adjusted
earnings, adjusted earnings per common share and distributable cash
flow are available as an Appendix to this news
release.
|
2 Formerly
referred to as Available Cash Flow From Operations (ACFFO).
Calculation methodology remains unchanged.
|
GAAP earnings attributable to common shareholders increased by
$882 million or $0.47 per share for the fourth quarter of 2018
and decreased by $14 million or
$0.20 per share for the year ended
2018 compared to the same periods in 2017. In addition to the
factors discussed in Adjusted Earnings below, the year-over-year
and fourth quarter-over-quarter comparability of GAAP earnings
attributable to common shareholders were impacted by a number of
unusual, non-recurring or non-operating factors, which are noted in
the reconciliation schedules included in Appendix A of this news
release.
Adjusted earnings in the fourth quarter of 2018 increased by
$153 million or $0.04 per share compared to the same period in
2017. The increase was primarily driven by strong operating results
and operating cost efficiencies across many of the Company's
business units, new projects coming into service in the Liquids
Pipelines, Gas Transmission and Midstream, Green Power and
Transmission and Gas Distribution segments since the fourth quarter
of 2017 and synergy realization from the Spectra Energy
acquisition.
Adjusted earnings for the year ended 2018 increased by
$1,586 million or $0.69 per share compared to the same period in
2017. The increase is in large part due to the timing of the merger
with Spectra Energy Corp (the Merger Transaction) which closed on
February 27, 2017.
DCF for the fourth quarter of 2018 was $1,863 million and for the year ended 2018 was
$7,618 million, increases of
$122 million and $2,004 million respectively over the comparable
prior periods in 2017, driven largely by the same factors noted
above.
Detailed segmented financial information and analysis can be
found below under Adjusted EBITDA by Segments.
PROJECT EXECUTION UPDATE
In 2018, the Company completed $7
billion of growth projects, substantially on time and on
budget. These were comprised of almost a dozen projects across all
business units, including expansions to the existing Canadian and
US gas transmission systems, the Company's first European offshore
wind project and ongoing capital investment to support customer
growth within the utility franchises. Most recently in the fourth
quarter, the US$1.3 billion
(Enbridge's share) NEXUS and the associated US$0.2 billion TEAL natural gas pipeline projects
were brought into service, providing much needed export capacity
out of the Marcellus and Utica
basins into the upper Midwest and Eastern Canadian markets. In
addition, the US$1.6 billion Valley
Crossing natural gas pipeline project entered service on
October 31. All of these pipeline
projects are underpinned by long-term take-or-pay transportation
contracts.
Enbridge continues to make good progress executing the remainder
of its secured growth capital program. The Company has a
$16 billion inventory of secured
projects at various stages of execution which are scheduled to come
into service between 2019 and 2023. The individual projects that
make up the secured program are all supported by long-term
take-or-pay contracts, cost-of-service frameworks or similar
low-risk commercial arrangements and are diversified across a wide
range of business platforms and regulatory jurisdictions, the
largest being the Line 3 Replacement Project as discussed
below.
LINE 3 REPLACEMENT UPDATE
The $9 billion Line 3 Replacement
Project is a critical integrity replacement project that will
enhance the safety and reliability of the Enbridge Liquids Mainline
System and provide incremental export capacity to Western Canadian
producers and increased security of supply for key refining markets
along the Mainline system as well as to markets further
downstream.
Several important milestones were achieved in 2018. In
Canada, the entire 1,100
kilometers of pipeline has now been laid and remaining construction
activities on pump stations and terminal tie-ins are on schedule
for completion by mid-2019. In the U.S., the pipeline replacement
work in Wisconsin was completed
and has been placed into service.
In Minnesota, the MPUC approved
the Certificate of Need and Route Permit and denied petitions to
reconsider the decisions. All related Certificate conditions have
been finalized and are being addressed. In addition, agreement was
reached with the Fond du Lac Band of Lake Superior Chippewa
granting a new 20 year easement for the entire Mainline including
the Line 3 Replacement Project through their Reservation. The
remaining permit applications have been submitted to the various
federal and state agencies, including the U.S. Army Corps of
Engineers, the Minnesota Department of Natural Resources, the
Minnesota Pollution Control Agency and other local government
agencies in Minnesota. The Company anticipates that the
agencies will process all of these applications in the coming
months, and with timely approvals continues to expect an in-service
date for the project before the end of 2019.
OTHER BUSINESS UPDATES
On October 15, 2018, the Company
announced that it was moving forward with the amalgamation of
Enbridge Gas Distribution Inc. and Union Gas Limited, its two
natural gas utility franchises in Ontario. The amalgamation, under the terms of
a new Ontario Energy Board approved incentive rate regulation
framework, took effect January 1,
2019. This will enable significant efficiencies in
operations benefiting both ratepayers and shareholders while
maintaining a focus on the safe and reliable distribution of
energy.
On December 11, 2018, the Company
announced $1.8 billion of new accretive growth capital
investments:
- Gray Oak Pipeline - Enbridge will invest US$600
million for a 22.75% interest in the Gray Oak Liquids
Pipeline, which will deliver light crude oil from the Permian Basin
to Corpus Christi and other markets. Gray Oak, currently under
construction, is expected to begin service in late 2019, contribute
to the post-2020 growth outlook and is an important component of
Enbridge's broader emerging U.S. Gulf Coast liquids infrastructure
strategy.
- Cheecham Terminal & Pipeline - Enbridge has acquired
existing liquids pipeline and terminal assets connected with
Athabasca Oil Corporation's Leismer SAGD oil sands assets
for $265 million. The assets are synergistic as they are
connected with Enbridge's existing terminal and pipeline assets in
the region.
- Gas Transmission Expansions - Enbridge will invest
approximately $800 million on four Gas Transmission
expansion projects coming into service in the 2020-23 timeframe.
The Vito Offshore Pipeline will provide service to Shell's offshore
Gulf Coast operations. The Cameron Lateral expansion project will
connect Texas Eastern with Gulf Coast LNG export facilities. In
addition, the Gulfstream and Sabal Trail Pipelines
into Florida will both undergo additional expansion
(Phase VI and Phases 2 & 3 respectively). All of these
expansion projects are underpinned by long-term take-or-pay
commercial arrangements.
In January 2019, the Company
secured an additional $0.3 billion of
attractive and low-risk pipeline and utility growth capital
projects:
- East-West Tie Transmission Project (EWT) - Enbridge has
partnered with an industry leading transmission developer to
construct a transmission line that will add capacity between
Wawa and Thunder Bay to support electricity supply to
Northeast Ontario. The EWT project
recently received the exclusive right from the Province of
Ontario to proceed to construct
and also received the leave to construct approval from the Ontario
Energy Board in February 2019.
Enbridge currently has a 25% equity interest in EWT and plans to
invest approximately $0.2 billion for
its share of the project. The project is supported by a cost of
service framework and is expected to be in service in late
2021.
- Generation Pipeline - Enbridge, through its investment in
Nexus, announced an attractive investment to acquire Generation
Pipeline, a 355 million cubic feet a day pipeline that will
interconnect with Nexus. Enbridge's share of the acquisition is
approximately US$0.1 billion and the
pipeline is fully contracted with long term arrangements. This
acquisition offers additional opportunity to expand the Company's
footprint to supply natural gas to power generation and industrial
customers in Northern Ohio.
SIMPLIFICATION OF CORPORATE STRUCTURE
In the fourth quarter, the Company acquired, in separate
combination transactions, all of the outstanding equity securities
of Enbridge Income Fund Holdings Inc. (ENF), Enbridge Energy
Partners, L.P. (EEP), Enbridge Energy Management, L.L.C (EEQ), and
Spectra Energy Partners, LP (SEP) not beneficially owned by
Enbridge. The buy-ins are strategically and economically attractive
Enbridge shareholders and provide substantial benefits,
including:
- Increased ownership in its core businesses and further
enhancement of its industry-leading, low-risk profile
- Significant advancement of Enbridge's strategy to simplify and
streamline its corporate structure which further increases the
transparency of its strong cash generating assets
- Higher retention of cash generated from the assets, which will
support continued strong dividend coverage and self-funded
growth
- An improved Enbridge credit profile due to the elimination of
sponsored vehicle public distributions as well as the reduction of
the structural subordination of Enbridge's parent company debt
- Significant benefits to Enbridge's post 2020 outlook primarily
due to tax optimization synergies
ASSET SALE AND FINANCING UPDATE
The Company reached agreements to sell over $7.8 billion of non-core assets in 2018, well in
excess of the $3 billion targeted in
the financing plan. The Company has now received proceeds from
asset sales of approximately $5.7
billion, with the balance expected by mid-2019. These
proceeds will provide the Company with significant additional
financial flexibility to further strengthen the balance sheet and
fund the secured growth program. As of the end of the year, the
Company's consolidated Debt to EBITDA ratio was 4.7x on a trailing
twelve month basis. This is in line with its updated long term
target credit metric range of 4.5x to comfortably below 5.0x Debt
to EBITDA.
On January 25, 2019, Moody's
Investors Service announced that it had upgraded Enbridge Inc.'s
senior unsecured debt rating to Baa2 with a positive outlook. Each
of Standard & Poors, Fitch and DBRS have recently reaffirmed
Enbridge Inc.'s senior unsecured debt rating at BBB+, BBB+ and BBB
High, respectively.
Given the progress on leverage reduction, the Company announced
in the fourth quarter that it would suspend its DRIP effective with
the dividend payment on December 1,
2018, which was earlier than originally contemplated. With
this action, the Company has now moved to a fully self-funded
financing model and will no longer require external equity to
support its growth program going forward.
The sponsored vehicle buy-ins have also provided an opportunity
to simplify the Company's debt financing structure and strategy. A
number of actions have been taken:
- Completion of a debt exchange on December 21, 2018 whereby $1.6 billion of term debt securities issued by
Enbridge Income Fund (the Fund) were exchanged for notes of
Enbridge Inc. with identical coupons and terms to maturity; the
Company intends to discontinue external debt financing by the
Fund
- The amendment of certain covenants in the EEP and SEP trust
indentures and entry into a subsidiary guarantee agreement on
January 22, 2019 to implement a
"cross guarantee" arrangement whereby remaining outstanding senior
term debt obligations of EEP and SEP are guaranteed by Enbridge
Inc. and each of SEP and EEP correspondingly guarantee Enbridge
Inc.'s senior term debt obligations; the Company intends to
discontinue external debt financing by both EEP and SEP
- The redemption of US$400 million
of EEP junior subordinated notes which is expected to be completed
by the end of February 2019
The Company believes that these changes to its debt funding
structure and financing strategy has substantially reduced
structural subordination, will further enhance the credit profile
of the consolidated Enbridge group and reduce its cost of capital
over the longer term.
GUIDANCE AND LONGER TERM GROWTH OUTLOOK
At its December 2018 investor
conference, Enbridge highlighted that its key strategic
priorities for 2019 and beyond remain largely unchanged:
- Focusing on the safety, operational reliability and
environmental performance of the systems and ensuring cost
effective and efficient transportation for our customers;
- Ensuring strong execution of the secured capital program that
will drive DCF per share growth through 2020;
- Concentrating on growth of core businesses through extensions
and expansions of the liquids pipeline, natural gas transmission
and gas utility franchises to extend growth beyond 2020;
- Maintaining a strong financial position and flexibility as
secured growth projects are brought on line;
- Continuing to exercise rigorous capital allocation to maximize
shareholder value
The Company further re-iterated its guidance for the mid-point
of the projected range of 2019 and 2020 DCF per share
of $4.45 per share and $5.00 per share,
respectively. With this robust outlook, Enbridge has announced a
10% dividend increase for 2019 and anticipates another 10% increase
for 2020. The 2019 quarterly dividend of $0.738 per share
will be payable on March 1, 2019, to shareholders of record
on February 15, 2019.
Beyond 2020, Enbridge is targeting to achieve annual DCF per
share growth in the range of 5%-7%, driven by an attractive suite
of organic growth prospects within its three core businesses that
can be self-funded using available cash generated by these
businesses and managing leverage within targets designed to
maintain strong investment grade credit ratings.
FOURTH QUARTER AND YEAR-END 2018 FINANCIAL RESULTS
The following table summarizes the Company's GAAP reported
results for segment EBITDA, earnings attributable to common
shareholders, and cash provided by operating activities for the
fourth quarter and full year 2018.
GAAP SEGMENT EBITDA AND CASH FLOW FROM OPERATIONS
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Liquids
Pipelines
|
978
|
|
1,555
|
|
5,331
|
|
6,395
|
Gas Transmission and
Midstream
|
1,254
|
|
(3,532)
|
|
2,334
|
|
(1,269)
|
Gas
Distribution
|
449
|
|
453
|
|
1,711
|
|
1,390
|
Green Power and
Transmission
|
83
|
|
102
|
|
369
|
|
372
|
Energy
Services
|
374
|
|
(252)
|
|
482
|
|
(263)
|
Eliminations and
Other
|
(340)
|
|
(149)
|
|
(708)
|
|
(337)
|
EBITDA
|
2,798
|
|
(1,823)
|
|
9,519
|
|
6,288
|
|
|
|
|
|
|
|
|
Earnings
attributable to common shareholders
|
1,089
|
|
207
|
|
2,515
|
|
2,529
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
2,503
|
|
1,341
|
|
10,502
|
|
6,658
|
For purposes of evaluating performance, the Company makes
adjustments for unusual, non-recurring or non-operating factors to
GAAP reported earnings, segment EBITDA, and cash provided by
operating activities, which allow Management and investors to more
accurately compare the Company's performance across periods,
normalizing for factors that are not indicative of the underlying
business performance. Tables incorporating these adjustments follow
below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted
EBITDA by segment, adjusted earnings, adjusted earnings per common
share and DCF to their closest GAAP equivalent are provided in the
Appendices to this news release.
DISTRIBUTABLE CASH FLOW
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars, except per share
amounts)
|
|
|
|
|
|
|
|
Liquids
Pipelines
|
1,728
|
|
1,482
|
|
6,617
|
|
5,484
|
Gas Transmission and
Midstream
|
952
|
|
1,020
|
|
4,068
|
|
3,350
|
Gas
Distribution
|
452
|
|
450
|
|
1,726
|
|
1,379
|
Green Power and
Transmission
|
98
|
|
109
|
|
435
|
|
379
|
Energy
Services
|
73
|
|
(21)
|
|
167
|
|
(52)
|
Eliminations and
Other
|
17
|
|
(77)
|
|
(164)
|
|
(223)
|
Adjusted
EBITDA1
|
3,320
|
|
2,963
|
|
12,849
|
|
10,317
|
Maintenance
capital
|
(361)
|
|
(345)
|
|
(1,144)
|
|
(1,261)
|
Interest
expense1
|
(675)
|
|
(665)
|
|
(2,735)
|
|
(2,421)
|
Current income
tax1
|
(156)
|
|
(49)
|
|
(384)
|
|
(154)
|
Distributions to
noncontrolling interests and redeemable noncontrolling
interests
|
(281)
|
|
(272)
|
|
(1,182)
|
|
(1,042)
|
Cash distributions in
excess of equity earnings1
|
51
|
|
118
|
|
318
|
|
279
|
Preference share
dividends
|
(96)
|
|
(84)
|
|
(364)
|
|
(330)
|
Other receipts of
cash not recognized in revenue2
|
51
|
|
25
|
|
208
|
|
196
|
Other non-cash
adjustments
|
10
|
|
50
|
|
52
|
|
30
|
DCF
|
1,863
|
|
1,741
|
|
7,618
|
|
5,614
|
Weighted average
common shares outstanding
|
1,806
|
|
1,652
|
|
1,724
|
|
1,525
|
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.
|
Fourth quarter 2018 DCF increased by $122
million compared to the fourth quarter of 2017. The key
drivers of quarter-over-quarter growth are summarized below:
- An increase in adjusted EBITDA primarily due to strong business
performance and incremental contribution from new projects placed
into service across many business segments since the fourth quarter
of last year, partially offset by the absence of EBITDA from the
assets sold in the Gas Transmission and Midstream segment in 2018.
For further detail on business performance refer to Adjusted
EBITDA by Segments.
Partially offsetting the DCF growth drivers noted above was:
- Higher maintenance capital expenditures primarily within Gas
Transmission and Midstream reflecting a shift in the timing of
maintenance capital to the fourth quarter, partially offset by the
absence of maintenance capital expenditures from portions of the
Canadian and U.S. gas processing businesses that were sold in the
second half of 2018.
- Higher current tax, which in part reflected higher earnings
before income tax generated from operating segments.
- Lower equity distributions in excess of equity earnings due to
higher equity earnings from stronger underlying performance that
were not matched by a corresponding increase in cash distributions
during the quarter, as well as an absence of equity distributions
from an asset sold in 2018.
For the year ended December 31, 2018, DCF has increased by
$2,004 million compared to the
comparative 2017 period. The increase is in large part attributable
to the timing of the Merger Transaction which closed on
February 27, 2017; the 2017 results
reflect only ten months contributions from Spectra Energy assets
where the 2018 results reflect a full twelve months of
contribution.
ADJUSTED
EARNINGS
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars, except per share
amounts)
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
3,320
|
|
2,963
|
|
12,849
|
|
10,317
|
Depreciation and
amortization
|
(794)
|
|
(764)
|
|
(3,246)
|
|
(3,152)
|
Interest
expense1
|
(656)
|
|
(638)
|
|
(2,637)
|
|
(2,305)
|
Income
taxes1
|
(421)
|
|
(252)
|
|
(1,122)
|
|
(805)
|
Noncontrolling
interests and redeemable noncontrolling
interests1
|
(188)
|
|
(212)
|
|
(909)
|
|
(743)
|
Preference share
dividends
|
(95)
|
|
(84)
|
|
(367)
|
|
(330)
|
Adjusted
earnings
|
1,166
|
|
1,013
|
|
4,568
|
|
2,982
|
Adjusted earnings
per common share
|
0.65
|
|
0.61
|
|
2.65
|
|
1.96
|
1
|
Presented net of
adjusting
items.
|
Adjusted earnings increased by $153
million for the three months ended December 31, 2018,
compared with the respective 2017 period. The key drivers of
quarter-over-quarter growth are summarized below:
- An increase in adjusted EBITDA primarily due to strong business
performance and incremental contribution from new projects placed
into service across many business segments since the fourth quarter
of last year. For further detail on business performance refer to
Adjusted EBITDA by Segments.
- Lower earnings attributable to noncontrolling interest
following the completion of Enbridge's buy-in of the publicly held
interest in its sponsored vehicles, which were completed in
separate transactions, in the fourth quarter of 2018.
Partially offsetting the adjusted earnings growth drivers noted
above was:
- Higher depreciation and amortization expense as a result of
placing new assets into service, partially offset by ceasing to
record depreciation expense for assets which were classified as
assets held for sale or sold during 2018.
- Higher income tax expense, in part due to higher earnings
before tax.
Adjusted earnings per share for the three months ended
December 31, 2018 increased by $0.04 over the fourth quarter of 2017. The
increase reflected the factors noted above, partially offset by a
higher average number of shares outstanding following the offering
of approximately 33 million of the Company's common shares
in December 2017. Additionally, in the fourth quarter of 2018,
the Company issued approximately 297 million common shares to
acquire, in separate transactions, all of the outstanding equity
securities of its sponsored vehicles not beneficially owned by
Enbridge.
For the year ended December 31, 2018, adjusted earnings
increased by $1,586 million compared
to the comparative 2017 year. The increase is in large part
attributed to the timing of the Merger Transaction. Consequently,
the 2017 results reflect only ten months contributions from Spectra
Energy assets.
Adjusted earnings per share for the year ended December 31,
2018 increased by $0.69 over 2017.
The increases reflected the factors noted above, partially offset
by a higher average number of shares outstanding. 2018 reflected
the full year impact of shares issued in the Merger Transaction and
the approximately 33 million shares issued in a follow-on offering
in December 2017. Also impacting the increase in the weighted
average share count was the incremental shares issued in
December 2018 related to the
Sponsored Vehicle buy-in transactions.
ADJUSTED EBITDA BY SEGMENTS
LIQUIDS PIPELINES
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Canadian
Mainline
|
572
|
|
367
|
|
2,105
|
|
1,342
|
Lakehead
System
|
425
|
|
441
|
|
1,742
|
|
1,786
|
Regional Oil Sands
System
|
209
|
|
182
|
|
851
|
|
600
|
Gulf Coast and
Mid-Continent
|
201
|
|
200
|
|
709
|
|
681
|
Other1
|
321
|
|
292
|
|
1,210
|
|
1,075
|
Adjusted
EBITDA2
|
1,728
|
|
1,482
|
|
6,617
|
|
5,484
|
|
|
|
|
|
|
|
|
Operating Data
(average deliveries – thousands of bpd)
|
|
|
|
|
|
|
|
Canadian
Mainline3
|
2,685
|
|
2,586
|
|
2,631
|
|
2,530
|
Lakehead
System4
|
2,833
|
|
2,724
|
|
2,775
|
|
2,673
|
Regional Oil Sands
System5
|
1,856
|
|
1,392
|
|
1,830
|
|
1,301
|
International Joint
Tariff (IJT)
|
$4.15
|
|
$4.07
|
|
$4.11
|
|
$4.06
|
Lakehead System Local
Toll
|
$2.23
|
|
$2.43
|
|
$2.27
|
|
$2.47
|
Canadian Mainline IJT
Residual Toll
|
$1.92
|
|
$1.64
|
|
$1.84
|
|
$1.59
|
Canadian Mainline
Apportionment6
|
45%
|
|
10%
|
|
45%
|
|
20%
|
Canadian Mainline
Effective FX Rate
|
$1.27
|
|
$1.07
|
|
$1.26
|
|
$1.06
|
1
|
Included within Other
are Southern Lights Pipeline, Express-Platte System, Bakken System
and Feeder Pipelines & Other.
|
2
|
Schedules reconciling
adjusted EBITDA are provided in the Appendices to this news
release.
|
3
|
Canadian Mainline
throughput volume represents mainline system deliveries ex-Gretna,
Manitoba which is made up of United States and eastern Canada
deliveries originating from western Canada.
|
4
|
Lakehead System
throughput volume represents mainline system deliveries to the
United States mid-west and eastern Canada.
|
5
|
Volumes are for the
Athabasca mainline, Athabasca Twin, Waupisoo Pipeline and Woodland
Pipeline and exclude laterals on the Regional Oil Sands
System.
|
6
|
Heavy apportionment
on Canadian Mainline.
|
Liquids Pipelines adjusted EBITDA increased by $246 million for the fourth quarter of 2018 when
compared to the same period in 2017. The key quarter-over-quarter
performance drivers are summarized below:
- Canadian Mainline contribution increased primarily due to
strong throughput, in part facilitated by continued optimization of
the system in order to support growth in oilsands production. Also
driving an increase in EBITDA contributions were a higher Canadian
Mainline IJT residual toll, as well as higher foreign exchange
hedge rates used to convert United States dollar
denominated Canadian Mainline IJT revenues.
- Lakehead System also benefited from higher throughput, however,
this was more than offset by a decrease in the Lakehead System
Local Toll primarily driven by the reduction in the corporate
federal income tax rate in the U.S., reducing the cost of service
revenue requirement embedded in tolls applicable to facilities
expansions undertaken in the past.
- Regional Oil Sands System growth was driven by contributions
from new projects placed into service in late 2017, in particular
the Wood Buffalo Extension Pipeline.
- Other increased primarily as a result of increased throughput
on the Bakken Pipeline System.
- Liquids Pipelines adjusted EBITDA is reported on a Canadian
dollar basis. Adjusted EBITDA generated from United States dollar denominated businesses
were translated at a stronger United
States dollar to Canadian dollar exchange rate in the fourth
quarter of 2018 (C$1.32/$US) when
compared to the corresponding 2017 period (C$1.27/$US). A portion of the United States dollar earnings are hedged
under the Company's enterprise-wide financial risk management
program. The offsetting hedge settlements are reported within
Eliminations and Other.
Liquids Pipelines adjusted EBITDA increased by $1,133 million for the year ended 2018 when
compared to 2017. The key year-over-year performance drivers
reflected the same factors discussed above in the fourth quarter
analysis as well as the following:
- Full year of contributions from assets placed into service in
2017 including the Wood Buffalo Extension Pipeline, Athabasca
Pipeline Twin and the Norlite Pipeline System, as well as the
acquisition of a minority interest in the Bakken Pipeline
System;
- Increased transportation revenues resulting from an increase in
the level of committed take-or-pay volumes and higher spot volumes
on Flanagan South Pipeline driven by strong demand in the United States Gulf Coast.
- Full year of contributions from the Express-Platte System which
was acquired as part of the Merger Transaction.
GAS TRANSMISSION AND MIDSTREAM
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
US Gas
Transmission
|
646
|
|
650
|
|
2,625
|
|
2,215
|
Canadian Gas
Transmission & Midstream
|
149
|
|
196
|
|
755
|
|
575
|
Alliance
Pipeline
|
59
|
|
56
|
|
228
|
|
205
|
US
Midstream
|
54
|
|
69
|
|
319
|
|
218
|
Other
|
44
|
|
49
|
|
141
|
|
137
|
Adjusted
EBITDA1
|
952
|
|
1,020
|
|
4,068
|
|
3,350
|
1
|
Schedules reconciling
adjusted EBITDA are available as an Appendix to this news
release.
|
Gas Transmission and Midstream adjusted EBITDA decreased by
$68 million for the fourth quarter of
2018 when compared to the same period in 2017. The key
quarter-over-quarter performance drivers are summarized below:
- US Gas Transmission adjusted EBITDA reflected incremental
contributions from new capital projects placed into service in
2018, including NEXUS and Valley Crossing which were placed into
service midway through the fourth quarter, offset by the timing of
operating costs which were more heavily weighted in the fourth
quarter in 2018 than they were in 2017.
- Canadian Gas Transmission reflected the absence of EBITDA from
the provincially regulated Canadian natural gas gathering and
processing business which was sold on October 1, 2018. The sale of the remaining NEB
regulated assets is expected to close by mid-2019. The decrease in
EBITDA was partially offset by new assets placed into service in
2018, including High Pine and Wyndwood system expansions, and
operational cost efficiencies.
- US Midstream adjusted EBITDA reflected the absence of EBITDA
from Midcoast Operating, L.P. which was sold on August 1, 2018.
- Gas Transmission and Midstream adjusted EBITDA is reported on a
Canadian dollar basis. Adjusted EBITDA generated from United States dollar denominated businesses
were translated at a stronger United
States dollar to Canadian dollar exchange rate in the fourth
quarter of 2018 (C$1.32/$US) when
compared to the corresponding 2017 period (C$1.27/$US). A portion of the United States dollar earnings are hedged
under the Company's enterprise-wide financial risk management
program. The offsetting hedge settlements are reported within
Eliminations and Other.
Gas Transmission and Midstream adjusted EBITDA increased by
$718 million for the year ended 2018
when compared to 2017. The key year-over-year performance drivers
reflected the same factors discussed above in the fourth quarter
analysis as well as the following:
- Full year of contributions from the gas transmission assets
acquired as part of the Merger Transaction.
- US Gas Transmission adjusted EBITDA reflected incremental
contributions from new capital projects placed into service in 2017
and 2018, including Sabal Trail, expansions on Access South and
Adair Southwest, Gulf Market Expansion and Atlantic Bridge,
partially offset by higher operating costs.
- Alliance Pipeline benefitted from higher seasonal firm and
interruptible revenues resulting from wider basis
differentials.
- US Midstream reflected higher throughput and higher commodity
prices and fractionation margins at Aux Sable and DCP Midstream,
LLC (DCP Midstream).
GAS DISTRIBUTION
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Enbridge Gas
Distribution Inc. (EGD)
|
191
|
|
201
|
|
803
|
|
701
|
Union Gas Limited
(Union Gas)
|
217
|
|
208
|
|
782
|
|
551
|
Other
|
44
|
|
41
|
|
141
|
|
127
|
Adjusted
EBITDA1
|
452
|
|
450
|
|
1,726
|
|
1,379
|
|
|
|
|
|
|
|
|
Operating
Data
|
|
|
|
|
|
|
|
EGD
|
|
|
|
|
|
|
|
Volumes (billions of
cubic feet)
|
141
|
|
135
|
|
449
|
|
421
|
Number of active
customers (thousands)3
|
2,216
|
|
2,190
|
|
2,216
|
|
2,190
|
Heating degree
days4
|
|
|
|
|
|
|
|
Actual
|
1,332
|
|
1,285
|
|
3,728
|
|
3,499
|
Forecast based on
normal weather
|
1,246
|
|
1,226
|
|
3,642
|
|
3,639
|
Union
Gas2
|
|
|
|
|
|
|
|
Volumes (billions of
cubic feet)
|
391
|
|
370
|
|
1,372
|
|
944
|
Number of active
customers (thousands)3
|
1,497
|
|
1,475
|
|
1,497
|
|
1,475
|
Heating degree
days4
|
|
|
|
|
|
|
|
Actual
|
1,463
|
|
1,433
|
|
4,147
|
|
2,688
|
Forecast based on
normal weather
|
1,376
|
|
1,377
|
|
4,064
|
|
2,636
|
1
|
Schedules reconciling
adjusted EBITDA are available as an Appendix to this news
release.
|
2
|
Reflects operating
data post-Merger Transaction.
|
3
|
Number of active
customers at the end of the reported period.
|
4
|
Heating degree days
is a measure of coldness that is indicative of volumetric
requirements for natural gas utilized for heating purposes in EGD's
and Union Gas' franchise area. It is calculated by accumulating,
for the fiscal period, the total number of degrees each day by
which the daily mean temperature falls below 18 degrees
Celsius.
|
Gas Distribution adjusted EBITDA will typically follow a
seasonal profile. It is generally highest in the first and fourth
quarters of the year reflecting greater volumetric usage during the
heating season, and lowest in the third quarter as there is
generally less volumetric usage during the summer. 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 in a given quarter.
Gas Distribution adjusted EBITDA increased by $2 million for the fourth quarter 2018 when
compared to the same period in 2017. The key quarter-over-quarter
performance drivers are summarized below:
- Higher earnings from expansion projects, and higher
distribution charges primarily resulting from increases in rate
base and customer base, offset by higher earnings sharing at EGD,
which reflected higher earnings achieved in 2018.
Gas Distribution adjusted EBITDA increased by $347 million for the year ended 2018 when
compared to the same period in 2017. The key year-over-year
performance drivers reflected the same factors as discussed above
in the fourth quarter analysis as well as:
- Full year of contributions from Union Gas acquired as part of
the Merger Transaction.
- Colder weather in the Company's utility franchise area in 2018
driving higher utilization compared with 2017.
For the twelve months ended December 31, 2018, Adjusted
EBITDA for EGD and Union Gas has been positively impacted by
$35 million due to colder weather
experienced in the franchise area relative to the assumptions for
normal weather embedded in customer rates.
EGD and Union Gas were amalgamated on January 1, 2019. The amalgamated company has
continued from this date as Enbridge Gas Inc. (Enbridge Gas). Post
amalgamation the financial results of Enbridge Gas Inc. will
reflect the combined performance of the two legacy utility
operations.
The Company has reached an agreement to sell Enbridge Gas New
Brunswick and St. Lawrence Gas Company Inc., subject to receipt of
regulatory approvals and other customary closing considerations,
the transactions are expected to close in 2019.
GREEN POWER AND TRANSMISSION
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Adjusted
EBITDA1
|
98
|
|
109
|
|
435
|
|
379
|
1
|
Schedules reconciling
adjusted EBITDA are available as an Appendix to this news
release.
|
Green Power and Transmission adjusted EBITDA decreased by
$11 million for the fourth quarter of
2018 when compared to the same period in 2017. The key
quarter-over-quarter performance drivers are summarized below:
- Lower wind resources across the onshore wind portfolio.
- Minor operating issues on certain wind farms, leading to lower
than expected production.
- Partially offsetting the decrease in EBITDA, was contributions
from the Rampion Offshore wind project which reached full operating
capacity during the second quarter of 2018.
Green Power and Transmission adjusted EBITDA increased by
$56 million for the year ended 2018
when compared to 2017. The key year-over-year performance drivers
are summarized below:
- Higher wind resources and lower operating costs across the wind
farm portfolio, primarily in the first nine months of 2018.
- Contributions from the Rampion Offshore wind project which
reached full operating capacity during the second quarter of
2018.
- A positive arbitration settlement of $11 million from
a warranty claim.
On August 1, 2018, the Company
finalized a transaction to sell a 49% interest in certain North
American onshore renewable power assets and 49% of the Company's
interests in two German offshore wind farms under development
(collectively, the Renewable Assets JV). Enbridge maintains a 51%
controlling interest in the Renewable Assets JV, and continues to
manage, operate and provide administrative services for these
assets. The consolidated results generated by these assets will
continue to be reported by the Green Power and Transmission
segment. Earnings and cash flows attributed to the third party
investors in these assets will be reported as non-controlling
interests in the Company's consolidated statements of earnings and
distributable cash flow.
ENERGY SERVICES
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Adjusted
EBITDA1
|
73
|
|
(21)
|
|
167
|
|
(52)
|
1
|
Schedules reconciling
adjusted EBITDA are available as an Appendix to this news
release.
|
Energy Services adjusted EBITDA increased by $94 million and $219
million for the fourth quarter and full year of 2018
compared to the respective 2017 periods. The increase was primarily
driven by wider crude oil and natural gas location differentials
which provided greater opportunity to generate profitable
margins.
ELIMINATIONS AND OTHER
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Operating and
administrative
|
82
|
|
(52)
|
|
55
|
|
(39)
|
Realized foreign
exchange hedge settlements
|
(65)
|
|
(25)
|
|
(219)
|
|
(184)
|
Adjusted
EBITDA1
|
17
|
|
(77)
|
|
(164)
|
|
(223)
|
1
|
Schedules reconciling
adjusted EBITDA are available as an Appendix to this news
release.
|
Operating and administrative costs captured in this segment
reflect the cost of centrally delivered services (including
depreciation of corporate assets) net of amounts recovered from
business units for the provision of those services. Also, as
previously noted, US dollar denominated earnings within the segment
results are translated at average foreign exchange rates during the
quarter. The offsetting impact of settlements made under the
Company's enterprise foreign exchange hedging program is captured
in this segment.
Eliminations and Other adjusted EBITDA increased by $94 million for the fourth quarter of 2018, when
compared to the same period in 2017. The key quarter-over-quarter
performance drivers are summarized below:
- The timing of the annual recovery of certain operating and
administrative costs allocated to the business segments, which were
more heavily weighted to the fourth quarter.
- Higher realized foreign exchange hedge settlement losses in the
fourth quarter of 2018 was due to a less favourable hedge rate
combined with a strengthening United
States dollar when compared to the fourth quarter of
2017.
Eliminations and Other adjusted loss before interest, income
taxes, and depreciation and amortization increased by $59 million for the year ended 2018, when
compared to the same period in 2017. The key year-over-year
performance drivers are summarized below:
- Synergies achieved on the integration of corporate functions,
partially offset by higher realized foreign exchange hedge
settlement losses; the increased settlement loss are primarily from
a greater average notional principal amount of foreign currency
hedges reflecting the hedging of a greater amount of U.S. dollar
denominated earnings and cashflows following the close of the
Merger Transaction.
CONFERENCE CALL
Enbridge will hold a conference call and webcast on
February 15, 2019 at 9:00 a.m. Eastern Time (7:00
a.m. Mountain Time) to provide an enterprise wide business
update and review 2018 fourth quarter and year end financial
results. Analysts, members of the media and other interested
parties can access the call toll free at (877) 930-8043 or within
and outside North America at (253)
336-7522 using the access code of 3577747#. The call will be audio
webcast live at https://edge.media-server.com/m6/p/wxannnzi. A
webcast replay and podcast will be available approximately two
hours after the conclusion of the event and a transcript will be
posted to the website within 24 hours. The replay will be available
for seven days after the call toll-free (855) 859-2056 or within
and outside North America at (404)
537-3406 (access code 3577747#).
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. Enbridge's media and
investor relations teams will be available after the call for any
additional questions.
FORWARD-LOOKING INFORMATION
Forward-looking
information, or forward-looking statements, have been included in
this news release to provide information about the Company and its
subsidiaries and affiliates, including management's assessment of
Enbridge and its subsidiaries' future plans and operations. This
information may not be appropriate for other purposes.
Forward-looking statements are typically identified by words such
as ''anticipate'', ''expect'', ''project'', ''estimate'',
''forecast'', ''plan'', ''intend'', ''target'', ''believe'',
"likely" and similar words suggesting future outcomes or statements
regarding an outlook. Forward-looking information or statements
included or incorporated by reference in this document include, but
are not limited to, statements with respect to the following:
expected EBITDA or expected adjusted EBITDA; expected
earnings/(loss) or adjusted earnings/(loss); expected
earnings/(loss) or adjusted earnings/(loss) per share; expected DCF
or DCF per share; expected future cash flows; expected performance
of the Company's businesses; financial strength and flexibility;
expectations on sources of liquidity and sufficiency of financial
resources; expected credit metrics and debt to EBITDA levels;
expected costs related to announced projects and projects under
construction; expected in-service dates for announced
projects and projects under construction; expected capital
expenditures; expected impact on cash flows of the Company's
commercially secured growth program; expected future growth and
expansion opportunities; expectations about the Company's
joint venture partners' ability to complete and finance projects
under construction; expected closing of acquisitions and
dispositions; expected future actions of regulators; expected costs
related to leak remediation and potential insurance recoveries;
expectations regarding commodity prices; supply forecasts;
expectations regarding the impact of the Merger Transaction, buy-in
transactions and other corporate simplification initiatives;
estimated future dividends; dividend payout policy; and dividend
growth and dividend payout expectation; expectations on impact of
our hedging program; and expectations resulting from the successful
execution of our 2018-2020 Strategic Plan.
Although Enbridge believes 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 labour and construction materials;
operational reliability; customer and regulatory approvals;
maintenance of support and regulatory approvals for the Company's
projects; anticipated in-service dates; weather; the timing and
closing of dispositions; the realization of anticipated benefits
and synergies of the Merger Transaction; buy-in transactions and
other corporate simplification initiatives; governmental
legislation; acquisitions and the timing thereof; the success of
integration plans; impact of capital project execution on
the Company's future cash flows; credit ratings; capital project
funding; expected EBITDA or expected adjusted EBITDA; expected
earnings/(loss) or adjusted earnings/(loss); expected
earnings/(loss) or adjusted earnings/(loss) per share; expected
future cash flows and expected future DCF and DCF per share; 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 the Company's services. Similarly,
exchange rates, inflation and interest rates impact the economies
and business environments in which the Company operates and may
impact levels of demand for the Company's 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 the impact of the Merger
Transaction buy-in transactions and corporate simplification
initiatives on the Company, expected future DCF and
DCF per share; and estimated future dividends. The most relevant
assumptions associated with forward-looking statements on announced
projects and projects under construction, including estimated
completion dates and expected capital expenditures, include the
following: the availability and price of labour and construction
materials; the effects of inflation and foreign exchange rates on
labour 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.
Enbridge's forward-looking statements are subject to risks
and uncertainties pertaining to the realization of anticipated
benefits and synergies of the Merger Transaction, buy-in
transactions and corporate simplification initiatives, operating
performance, regulatory parameters, changes in regulations
applicable to our business, acquisitions and dispositions, 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 and other
factors, including, but not limited to those risks and
uncertainties discussed in this news release and in the Company's
other filings with Canadian and United
States securities regulators. The impact of any one risk,
uncertainty or factor on a particular forward-looking statement is
not determinable with certainty as these are interdependent and
Enbridge's future course of action depends on management's
assessment of all information available at the relevant time.
Except to the extent required by applicable law, Enbridge assumes
no obligation to publicly update or revise any forward-looking
statements made in this news release or otherwise, whether as a
result of new information, future events or otherwise. All
subsequent forward-looking statements, whether written or oral,
attributable to Enbridge or persons acting on the Company's behalf,
are expressly qualified in their entirety by these cautionary
statements.
ABOUT ENBRIDGE INC.
Enbridge Inc. is North America's premier energy infrastructure
company with strategic business platforms that include an extensive
network of crude oil, liquids and natural gas pipelines, regulated
natural gas distribution utilities and renewable power generation.
The Company safely delivers in excess of 3 million barrels of crude
oil each day through its Mainline and Express Pipeline; accounts
for approximately 62% of U.S.-bound Canadian crude oil exports; and
moves approximately 18% of all natural gas consumed in the U.S.,
serving key supply basins and demand markets. The Company's
regulated utilities serve approximately 3.7 million retail
customers in Ontario, Quebec, and New
Brunswick. Enbridge also has interests in more than 1,700 MW
of net renewable generating capacity in North America and Europe. The Company's common shares trade on
the Toronto and New York stock exchanges under the symbol
ENB.
Life takes energy and Enbridge exists to fuel people's
quality of life. For more information, visit
www.enbridge.com.
None of the information contained in, or connected to,
Enbridge's website is incorporated in or otherwise part of this
news release.
FOR FURTHER
INFORMATION PLEASE CONTACT:
|
|
|
Enbridge Inc. –
Media
|
|
Enbridge Inc. –
Investment Community
|
Jesse
Semko
|
|
Jonathan
Gould
|
Toll Free: (888)
992-0997
|
|
Toll Free: (800)
481-2804
|
Email:
media@enbridge.com
|
|
Email:
investor.relations@enbridge.com
|
DIVIDEND DECLARATION
Our Board of Directors has declared the following quarterly
dividends. All dividends are payable on March 1, 2019 to
shareholders of record on February 15, 2019.
Common
Shares1
|
$0.73800
|
|
Preference Shares,
Series A
|
$0.34375
|
|
Preference Shares,
Series B
|
$0.21340
|
|
Preference Shares,
Series C2
|
$0.25459
|
|
Preference Shares,
Series D3
|
$0.27875
|
|
Preference Shares,
Series F4
|
$0.29306
|
|
Preference Shares,
Series H5
|
$0.27350
|
|
Preference Shares,
Series J
|
US$0.30540
|
|
Preference Shares,
Series L
|
US$0.30993
|
|
Preference Shares,
Series N6
|
$0.31788
|
|
Preference Shares,
Series P
|
$0.25000
|
|
Preference Shares,
Series R
|
$0.25000
|
|
Preference Shares,
Series 17
|
US$0.37182
|
|
Preference Shares,
Series 3
|
$0.25000
|
|
Preference Shares,
Series 5
|
US$0.27500
|
|
Preference Shares,
Series 7
|
$0.27500
|
|
Preference Shares,
Series 9
|
$0.27500
|
|
Preference Shares,
Series 11
|
$0.27500
|
|
Preference Shares,
Series 13
|
$0.27500
|
|
Preference Shares,
Series 15
|
$0.27500
|
|
Preference Shares,
Series 17
|
$0.32188
|
|
Preference Shares,
Series 198
|
$0.30625
|
|
1
|
The quarterly
dividend per common share was increased 10% to $0.73800 from
$0.67100, effective March 1, 2019.
|
2
|
The floating
dividend on the Series C Preference Shares is reset each quarter.
The quarterly dividend amount of Series C increased to $0.22685
from $0.20342 on March 1, 2018, increased to $0.22748 from $0.22685
on June 1, 2018, increased to $0.23934 from $0.22748 on September
1, 2018 and increased to $0.25459 from $0.23934 on December 1,
2018.
|
3
|
The quarterly
dividend amount of Series D increased to $0.27875 from
$0.25000 on March 1, 2018, due to the reset of the annual dividend
on every fifth anniversary of the date of issuance of the Series D
Preference Shares.
|
4
|
The quarterly
dividend amount of Series F increased to $0.29306 from $0.25000 on
June 1, 2018, due to the reset of the annual dividend on every
fifth anniversary of the date of issuance of the Series F
Preference Shares.
|
5
|
The quarterly
dividend amount of Series H increased to $0.27350 from $0.25000 on
September 1, 2018, due to the reset of the annual dividend on every
fifth anniversary of the date of issuance of the Series H
Preference Shares.
|
6
|
The quarterly
dividend amount of Series N increased to $0.31788 from $0.25000 on
December 1, 2018, due to the reset of the annual dividend on every
fifth anniversary of the date of issuance of the Series N
Preference Shares.
|
7
|
The quarterly
dividend amount of Series 1 increased to US$0.37182 from US$0.25000
on June 1, 2018, due to the reset of the annual dividend on every
fifth anniversary of the date of issuance of the Series 1
Preference Shares.
|
8
|
The quarterly
dividend amount of Series 19 increased from the first dividend of
$0.26850 payable on March 1, 2018 to the regular quarterly dividend
of $0.30625, effective June 1, 2018
|
NON-GAAP RECONCILATIONS APPENDICES
This news release contains references to 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.
Adjusted EBITDA represents EBITDA adjusted for unusual,
non-recurring or non-operating factors on both a consolidated and
segmented basis. Management uses 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, non-recurring or non-operating
factors included in adjusted EBITDA, as well as adjustments for
unusual, non-recurring or non-operating factors in respect of
depreciation and amortization expense, interest expense, income
taxes, noncontrolling interests and redeemable 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 and redeemable
noncontrolling interests, preference share dividends and
maintenance capital expenditures, and further adjusted for unusual,
non-recurring or non-operating factors. Management also uses
DCF to assess the performance of the Company and to set its
dividend payout target.
Reconciliations of forward looking non-GAAP financial measures
to comparable GAAP measures are not available due to the challenges
and impracticability of estimating some of the items, particularly
certain contingent liabilities, and non-cash unrealized derivative
fair value losses and gains and ineffectiveness on hedges which are
subject to market variability. Because of these challenges, a
reconciliation of forward looking non-GAAP financial measures is
not available without unreasonable effort.
Our non-GAAP measures described above are not measures that have
standardized meaning prescribed by generally accepted accounting
principles in the United States of
America (U.S. GAAP) and are not U.S. GAAP measures.
Therefore, these measures may not be comparable with similar
measures presented by other issuers.
The tables below provide a reconciliation of the non-GAAP
measures to comparable GAAP measures.
APPENDIX A
NON-GAAP RECONCILATIONS – ADJUSTED
EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Liquids
Pipelines
|
978
|
|
1,555
|
|
5,331
|
|
6,395
|
Gas Transmission and
Midstream
|
1,254
|
|
(3,532)
|
|
2,334
|
|
(1,269)
|
Gas
Distribution
|
449
|
|
453
|
|
1,711
|
|
1,390
|
Green Power and
Transmission
|
83
|
|
102
|
|
369
|
|
372
|
Energy
Services
|
374
|
|
(252)
|
|
482
|
|
(263)
|
Eliminations and
Other
|
(340)
|
|
(149)
|
|
(708)
|
|
(337)
|
EBITDA
|
2,798
|
|
(1,823)
|
|
9,519
|
|
6,288
|
Depreciation and
amortization
|
(794)
|
|
(775)
|
|
(3,246)
|
|
(3,163)
|
Interest
expense
|
(661)
|
|
(852)
|
|
(2,703)
|
|
(2,556)
|
Income
taxes
|
(60)
|
|
3,515
|
|
(237)
|
|
2,697
|
Earnings attributable
to noncontrolling interests and redeemable noncontrolling
interests
|
(99)
|
|
226
|
|
(451)
|
|
(407)
|
Preference share
dividends
|
(95)
|
|
(84)
|
|
(367)
|
|
(330)
|
Earnings/(loss)
attributable to common shareholders
|
1,089
|
|
207
|
|
2,515
|
|
2,529
|
ADJUSTED EBITDA TO ADJUSTED EARNINGS
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars, except per share
amounts)
|
|
|
|
|
|
|
|
Liquids
Pipelines
|
1,728
|
|
1,482
|
|
6,617
|
|
5,484
|
Gas Transmission and
Midstream
|
952
|
|
1,020
|
|
4,068
|
|
3,350
|
Gas
Distribution
|
452
|
|
450
|
|
1,726
|
|
1,379
|
Green Power and
Transmission
|
98
|
|
109
|
|
435
|
|
379
|
Energy
Services
|
73
|
|
(21)
|
|
167
|
|
(52)
|
Eliminations and
Other
|
17
|
|
(77)
|
|
(164)
|
|
(223)
|
Adjusted
EBITDA
|
3,320
|
|
2,963
|
|
12,849
|
|
10,317
|
Depreciation and
amortization
|
(794)
|
|
(764)
|
|
(3,246)
|
|
(3,152)
|
Interest
expense
|
(656)
|
|
(638)
|
|
(2,637)
|
|
(2,305)
|
Income
taxes
|
(421)
|
|
(252)
|
|
(1,122)
|
|
(805)
|
Noncontrolling
interests and redeemable noncontrolling interests
|
(188)
|
|
(212)
|
|
(909)
|
|
(743)
|
Preference share
dividends
|
(95)
|
|
(84)
|
|
(367)
|
|
(330)
|
Adjusted
earnings
|
1,166
|
|
1,013
|
|
4,568
|
|
2,982
|
Adjusted earnings
per common share
|
0.65
|
|
0.61
|
|
2.65
|
|
1.96
|
EBITDA TO ADJUSTED EARNINGS
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars, except per share
amounts)
|
|
|
|
|
|
|
|
EBITDA
|
2,798
|
|
(1,823)
|
|
9,519
|
|
6,288
|
Adjusting
items:
|
|
|
|
|
|
|
|
Change in unrealized
derivative fair value (gain)/loss
|
576
|
|
130
|
|
894
|
|
(1,109)
|
(Gain)/loss on sale of
assets
|
(72)
|
|
9
|
|
35
|
|
9
|
Asset write-down
loss
|
125
|
|
4,552
|
|
2,211
|
|
4,552
|
(Gain)/loss on sale of
pipe and project wind-down costs
|
1
|
|
(6)
|
|
(27)
|
|
(99)
|
Employee severance,
transition and transformation costs
|
60
|
|
70
|
|
203
|
|
354
|
Transaction
costs
|
—
|
|
—
|
|
—
|
|
180
|
Asset monetization
costs
|
23
|
|
—
|
|
88
|
|
—
|
Regulatory liability
adjustment
|
(223)
|
|
—
|
|
(223)
|
|
—
|
Other
|
32
|
|
31
|
|
149
|
|
142
|
Total adjusting
items
|
522
|
|
4,786
|
|
3,330
|
|
4,029
|
Adjusted
EBITDA
|
3,320
|
|
2,963
|
|
12,849
|
|
10,317
|
Depreciation and
amortization
|
(794)
|
|
(775)
|
|
(3,246)
|
|
(3,163)
|
Interest
expense
|
(661)
|
|
(852)
|
|
(2,703)
|
|
(2,556)
|
Income
taxes
|
(60)
|
|
3,515
|
|
(237)
|
|
2,697
|
Earnings attributable
to noncontrolling interests and redeemable noncontrolling
interests
|
(99)
|
|
226
|
|
(451)
|
|
(407)
|
Preference share
dividends
|
(95)
|
|
(84)
|
|
(367)
|
|
(330)
|
Adjusting items in
respect of:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
—
|
|
11
|
|
—
|
|
11
|
Interest
expense
|
5
|
|
214
|
|
66
|
|
251
|
Income
taxes
|
(361)
|
|
(3,767)
|
|
(885)
|
|
(3,502)
|
Noncontrolling
interests and redeemable noncontrolling interests
|
(89)
|
|
(438)
|
|
(458)
|
|
(336)
|
Adjusted
earnings
|
1,166
|
|
1,013
|
|
4,568
|
|
2,982
|
Adjusted earnings
per common share
|
0.65
|
|
0.61
|
|
2.65
|
|
1.96
|
APPENDIX B
NON-GAAP RECONCILIATION – SEGMENTED EBITDA TO ADJUSTED
EBITDA
LIQUIDS PIPELINES
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
1,728
|
|
1,482
|
|
6,617
|
|
5,484
|
Change in unrealized
derivative fair value gain/(loss)
|
(715)
|
|
94
|
|
(1,077)
|
|
875
|
Asset write-down
loss
|
(32)
|
|
—
|
|
(186)
|
|
—
|
Gain/(loss) on sale of
pipe and project wind-down costs
|
(1)
|
|
6
|
|
27
|
|
99
|
Leak remediation
costs, net of leak insurance recoveries
|
—
|
|
(1)
|
|
—
|
|
(10)
|
Project development
costs
|
(1)
|
|
2
|
|
(4)
|
|
(4)
|
Employee severance,
transition and transformation costs
|
(1)
|
|
(9)
|
|
(26)
|
|
(30)
|
Regulatory asset
adjustment
|
—
|
|
—
|
|
(20)
|
|
—
|
Other
|
—
|
|
(19)
|
|
—
|
|
(19)
|
Total
adjustments
|
(750)
|
|
73
|
|
(1,286)
|
|
911
|
EBITDA
|
978
|
|
1,555
|
|
5,331
|
|
6,395
|
GAS TRANSMISSION AND MIDSTREAM
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
952
|
|
1,020
|
|
4,068
|
|
3,350
|
Change in unrealized
derivative fair value gain/(loss)
|
(1)
|
|
(8)
|
|
24
|
|
(1)
|
Gain/(loss) on sale of
assets
|
72
|
|
—
|
|
(2)
|
|
—
|
Asset write-down
loss
|
—
|
|
(4,552)
|
|
(1,932)
|
|
(4,552)
|
Pipeline inspection
and other
|
—
|
|
26
|
|
(2)
|
|
(8)
|
Regulatory liability
adjustment
|
223
|
|
—
|
|
223
|
|
—
|
DCP Midstream equity
earnings adjustment
|
11
|
|
(7)
|
|
(12)
|
|
(28)
|
Transaction
costs
|
—
|
|
—
|
|
—
|
|
(6)
|
Asset monetization
costs
|
—
|
|
—
|
|
(20)
|
|
—
|
Employee severance,
transition and transformation costs
|
(3)
|
|
(11)
|
|
(13)
|
|
(24)
|
Total
adjustments
|
302
|
|
(4,552)
|
|
(1,734)
|
|
(4,619)
|
Earnings/(loss)
before interest, income taxes, and depreciation and
amortization
|
1,254
|
|
(3,532)
|
|
2,334
|
|
(1,269)
|
GAS DISTRIBUTION
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited;
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
452
|
|
450
|
|
1,726
|
|
1,379
|
Change in unrealized
derivative fair value gain
|
3
|
|
3
|
|
6
|
|
16
|
Noverco Inc. equity
earnings adjustment
|
—
|
|
—
|
|
(9)
|
|
—
|
Employee severance,
transition and transformation costs
|
(6)
|
|
—
|
|
(12)
|
|
(5)
|
Total
adjustments
|
(3)
|
|
3
|
|
(15)
|
|
11
|
EBITDA
|
449
|
|
453
|
|
1,711
|
|
1,390
|
GREEN POWER AND TRANSMISSION
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
98
|
|
109
|
|
435
|
|
379
|
Change in unrealized
derivative fair value gain/(loss)
|
(1)
|
|
2
|
|
1
|
|
2
|
Loss on sale of
assets
|
—
|
|
(9)
|
|
(20)
|
|
(9)
|
Equity investment
asset impairment
|
(14)
|
|
—
|
|
(47)
|
|
—
|
Total
adjustments
|
(15)
|
|
(7)
|
|
(66)
|
|
(7)
|
EBITDA
|
83
|
|
102
|
|
369
|
|
372
|
ENERGY SERVICES
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Adjusted
earnings/(loss) before interest, income taxes, and depreciation and
amortization
|
73
|
|
(21)
|
|
167
|
|
(52)
|
Change in unrealized
derivative fair value gain/(loss)
|
394
|
|
(222)
|
|
408
|
|
(200)
|
Inventory
write-down
|
(93)
|
|
—
|
|
(93)
|
|
—
|
Employee severance,
transition and transformation costs
|
—
|
|
(1)
|
|
—
|
|
(3)
|
Other
|
—
|
|
(8)
|
|
—
|
|
(8)
|
Total
adjustments
|
301
|
|
(231)
|
|
315
|
|
(211)
|
Earnings/(loss)
before interest, income taxes, and depreciation and
amortization
|
374
|
|
(252)
|
|
482
|
|
(263)
|
ELIMINATIONS AND OTHER
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Adjusted
earnings/(loss) before interest, income taxes, and depreciation and
amortization
|
17
|
|
(77)
|
|
(164)
|
|
(223)
|
Change in unrealized
derivative fair value gain/(loss)
|
(256)
|
|
1
|
|
(256)
|
|
417
|
Unrealized
intercompany foreign exchange loss
|
(12)
|
|
(9)
|
|
(23)
|
|
(29)
|
Asset
impairment
|
—
|
|
(13)
|
|
(6)
|
|
(13)
|
Loss on sale of
assets
|
—
|
|
—
|
|
(13)
|
|
—
|
Asset monetization
costs
|
(23)
|
|
—
|
|
(68)
|
|
—
|
Project development
costs
|
(6)
|
|
(2)
|
|
(11)
|
|
(23)
|
Transaction
costs
|
—
|
|
—
|
|
—
|
|
(174)
|
Sponsored vehicle
buy-in costs
|
(10)
|
|
—
|
|
(15)
|
|
—
|
Employee severance,
transition and transformation costs
|
(50)
|
|
(49)
|
|
(152)
|
|
(292)
|
Total
adjustments
|
(357)
|
|
(72)
|
|
(544)
|
|
(114)
|
Loss before
interest, income taxes, and depreciation and
amortization
|
(340)
|
|
(149)
|
|
(708)
|
|
(337)
|
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED
BY OPERATING ACTIVITIES TO DCF
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(unaudited,
millions of Canadian dollars)
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
2,503
|
|
1,341
|
|
10,502
|
|
6,658
|
Adjusted for changes
in operating assets and liabilities1
|
28
|
|
461
|
|
(915)
|
|
338
|
|
2,531
|
|
1,802
|
|
9,587
|
|
6,996
|
Distributions to
noncontrolling interests and redeemable noncontrolling
interests2
|
(281)
|
|
(272)
|
|
(1,182)
|
|
(1,042)
|
Preference share
dividends
|
(96)
|
|
(84)
|
|
(364)
|
|
(330)
|
Maintenance capital
expenditures3
|
(361)
|
|
(345)
|
|
(1,144)
|
|
(1,261)
|
Significant adjusting
items:
|
|
|
|
|
|
|
|
Pre-issuance hedge
settlement4
|
—
|
|
431
|
|
—
|
|
431
|
Other receipts of
cash not recognized in revenue5
|
51
|
|
25
|
|
208
|
|
196
|
Transaction
costs
|
—
|
|
—
|
|
—
|
|
178
|
Regulatory liability
adjustment
|
(223)
|
|
—
|
|
(223)
|
|
—
|
Employee severance,
transition and transformation costs
|
59
|
|
81
|
|
248
|
|
359
|
Asset monetization
costs
|
23
|
|
—
|
|
107
|
|
—
|
Distributions from
equity investments in excess of cumulative earnings
|
35
|
|
63
|
|
326
|
|
125
|
Other
items
|
125
|
|
40
|
|
55
|
|
(38)
|
DCF
|
1,863
|
|
1,741
|
|
7,618
|
|
5,614
|
1
|
Changes in operating
assets and liabilities include changes in environmental
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
|
Related to
termination of interest rate swaps as not highly probable to issue
long-term debt.
|
5
|
Consists of cash
received net of revenue recognized for contracts under make-up
rights and similar deferred revenue arrangements.
|
View original
content:http://www.prnewswire.com/news-releases/enbridge-inc-reports-strong-fourth-quarter-and-full-year-2018-results-300796456.html
SOURCE Enbridge Inc.