2012 looks to be a busy year for Calgary-based Enbridge Inc. The company has recently been in the public spotlight because of controversy surrounding it’s Northern Gateway Project.
The decision by American President Barack Obama to delay possible approval of the Keystone XL pipeline until 2013 shifted attention to Northern Gateway after comments by Prime Minister Stephen Harper that Canada would look to Asia for new energy markets. Northern Gateway is a 1,177 km pipeline that would carry bitumen from Alberta oil sands to a marine terminal at Kitimat, BC. Much of the pipeline route traverses traditional territory claimed by First Nations, most of which are steadfastly opposed to the project. Supertanker traffic in the waters off BC’s coast is also very controversial.
Enbridge expanding into mid-stream sector
But the $5.5 billion Northern Gateway is only one of many projects Enbridge has underway.
“2011 has been a year in which Enbridge has made tremendous progress on many fronts, including further securing our future growth,” says Enbridge CEO Patrick D. Daniel.
“Over the course of the year we reached agreement with our Liquids Pipelines shippers on the 10-year Competitive Toll Settlement (CTS), and secured an additional $6 billion of attractive growth opportunities across our existing businesses of liquids pipelines, gas pipelines and distribution, and green energy as well as into new platforms including power transmission and the Canadian midstream gas sector.”
Enbridge’s total of commercially secured projects now stands at over $11 billion. Daniel says management is confident the company can achieve an average annual growth rate in adjusted earnings per share of 10 per cent through 2015, based on conservative assumptions for mainline throughput and future growth investment.
“In 2012, we will begin to see the benefits of earnings growth from execution of these actions, including our acquisition of a 50% interest in the Seaway Pipeline System which we expect to be in service delivering crude oil from Cushing to the U.S. Gulf Coast by mid year,” said Daniel
2011 corporate highlights
Highlights of Enbridge’s growth announcements in 2011 include:
— Expansion of the Athabasca System, including the proposed $1.2 billion Athabasca Twinning Project, to connect growing oil sands production
— Broadening market access to the U.S. Gulf Coast for Canadian and U.S. crude oil production through the acquisition of a 50% interest in the Seaway Pipeline System and the proposed reversal and expansion of that system
— Continued investment in Bakken regional infrastructure in both Canada and the U.S., and for both Enbridge’s crude oil systems, and natural gas infrastructure through the Company’s investments in Alliance and Aux Sable
— New natural gas gathering and processing and pipeline investments in the U.S. through Enbridge Energy Partners
— Entry into the Canadian midstream sector through the $1.15 billion investment in the Cabin Gas Plant Development
— Continued strong growth in green energy including placing into service of approximately 370 megawatts of wind and solar generating capacity and entry to the renewable sector in Quebec through investment in the 300- megawatt (MW) Lac Alfred wind project
— Advancing the Company’s strategic objectives to enter the power transmission sector through the acquisition of the 300-MW Montana- Alberta Tie-line project
Enbridge declares quarterly dividends
Enbridge Inc.’s Board of Directors has declared a quarterly dividend of $0.2825 per common share, payable on March 1, 2012 to shareholders of record on February 15, 2012.The dividend reflects a 15 per cent increase from the prior quarterly rate. Enbridge also announced its 2012 guidance for adjusted earnings of $1.58 to $1.74 per share.
The Board also declared the following dividends on Enbridge’s preferred shares:
— A quarterly dividend of $0.34375 per share on Enbridge’s Preferred Share, Series A (ENB.PR.A). The dividend is payable on March 1, 2012 to shareholders of record on February 15, 2012.
— A dividend of $0.4192 on Enbridge’s Preferred Shares, Series B (ENB.PR.B). This is the first dividend payment for these shares which were issued September 30, 2011. It is payable on March 1, 2012 to shareholders of record on February 15, 2012. The regular quarterly dividend payable on the Series B preferred shares, and which will take effect with the second quarter 2012 dividend payment, is $0.25.
— A dividend of $0.2705 on Enbridge’s Preferred Shares, Series D (ENB.PR.D). This is the first dividend payment for these shares which were issued November 23, 2011. It is payable on March 1, 2012 to shareholders of record on February 15, 2012. The regular quarterly dividend payable on the Series B preferred shares, and which will take effect with the second quarter 2012 dividend payment, is $0.25.