Enbridge is filing an application with the Ontario Energy Board to amalgamate Enbridge Gas Distribution and Union Gas Limited. The company revealed its plans in a press release covering its Q3 performance.
The company also revealed that it had spent $3bn on growth projects since the end of Q2 including the JACOS Hangingstone crude oil pipeline lateral in Alberta, a suite of natural gas pipeline expansions and extensions on the Texas Eastern and Algonquin gas pipeline systems, the Chapman Ranch wind power generation project in Texas, as well as various utility growth initiatives in Ontario. This now brings the total year-to-date project completions to over $9bn, generally all on time and on budget
The company also shared its financial results; adjusted EBIT was $1,738m and third quarter ACFFO was $1,334m. This was the second full quarter of operations subsequent to the merger transaction with Spectra Energy Corp that closed on February 27th, 2017.
The largest driver of EBIT growth for the third quarter of 2017 relative to the third quarter of 2016 was the contribution from Enbridge’s new natural gas, liquids and utility assets acquired in the merger.
Also contributing to year-over-year EBIT growth was stronger crude oil throughput on the Mainline system, new projects coming into service in both the Liquids Pipelines and Gas Pipelines and Processing segments, and stronger realised foreign exchange hedge rates.
Enbridge’s President and Chief Executive Officer, Al Monaco said: “Overall, third quarter performance was in-line with our expectations. Looking ahead to the fourth quarter, we anticipate a further acceleration of financial performance driven by increased liquids volumes, a full quarter of new projects in service, ongoing incremental synergy capture and momentum from the seasonal nature of our business which typically strengthens in the winter months.
“We’ve had a very productive year so far. It’s now been only eight months since the Spectra transaction closed and we’re pleased with our progress on integrating operations of these two large companies. We’ve also made good strides in strengthening and streamlining the organization with the restructuring of Enbridge Energy Partners, L.P. and the buy-in of Midcoast Energy Partners, L.P. earlier this year. In addition, we’ve raised over $10 billion in the capital markets, of which $3 billion is equity or equity equivalent, and we’ve increased total non-core asset sales since the announcement of the Merger Transaction to $2.6 billion.
“As we move forward, we’ll continue to evaluate ways to further strengthen and streamline both our business operations and sponsored vehicle structures, reduce costs and enhance our financial position. We look forward to our upcoming investment community conferences on December 12th and 13th to provide a full strategic and financial update.”
For more information visit www.enbridge.com
7th Nov 2017
