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Enbridge CEO sees opportunities in changing energy landscape

World Pipelines,

Enbridge Inc. is well positioned to respond to an evolving energy landscape, President and Chief Executive Officer Al Monaco told shareholders during Enbridge's annual general meeting in Calgary.

Growing global demand for energy and increased North American supply have stretched existing energy infrastructure and are driving the need for new pipeline capacity to coastal markets, Monaco said. "North America needs new infrastructure, which in turn provides us with a great opportunity to grow. Enbridge has great assets, strategically located, that enable us to capture new opportunities created by changing supply and demand, and that's best illustrated by our record US$ 41 billion capital growth programme."

2013 was another solid year for Enbridge with adjusted earnings for 2013 of US$ 1.4 billion, an increase of 16% over the prior year. Earnings per share (EPS) was $1.78 or 11% above 2012; over the past five years, the Company's average annual EPS growth rate has been 14%. Based on strong earnings growth and confidence in the Company's long-term outlook, Enbridge increased its dividend by 11% in March 2014 - the 19th consecutive annual increase.

Over the last decade, Enbridge has delivered an average annual total return to shareholders of 17%, "well above the broader market and peer group," said Monaco.

Enbridge secured US$ 6 billion in new growth investment in 2013, increasing the Company's secured growth capital to US$ 36 billion and placing it in a position to deliver industry-leading growth through 2017 and beyond.

"In liquids pipelines, with our three market access programmes - totalling more than US$ 15 billion - we're opening up 1.7 million bpd of new markets in North America," said Monaco. "Wherever possible, we're using existing rights-of-way or pipe that's already in the ground to minimise our environmental footprint."

Enbridge's other core businesses โ€“ natural gas pipelines and processing, gas distribution and power generation โ€“ also continue to grow at a measured pace. In Gas Pipelines and Processing, Enbridge successfully completed several projects, including the Texas Express system and the Ajax plant in Texas, and continues to build on its strong position in the offshore Gulf of Mexico.

Enbridge Gas Distribution sanctioned a major investment in its Greater Toronto Area system that will provide benefits to customers, enhancing reliability and access to lower-cost natural gas.

Renewable power generation continues to be a key area of growth, said Monaco, with recent investments in wind projects in Quebec and Alberta bringing the Company's renewable energy portfolio to nearly US$ 4 billion and generating capacity of 1800 mw โ€“ or enough power to supply 600 000 homes. Enbridge also brought its first power transmission project into service in 2013.

Monaco concluded his remarks by reiterating Enbridge's commitment to building trust, key to meeting changing public expectations of energy companies.

"Listening to a range of perspectives, finding common ground and striking a balance among competing interests is something I believe is a critical part of our job and a key to success," said Monaco. "Ten years from now, we'll look back at this period and acknowledge how the intense focus we're under today pushed our industry to get better."

Adapted from press release by Hannah Priestley-Eaton

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