CALGARY,
AB, May 6, 2022 /PRNewswire/ - Enbridge Inc.
(Enbridge or the Company) (TSX: ENB) (NYSE: ENB) today reported
first quarter 2022 financial results, reaffirmed its 2022 financial
outlook and announced the advancement of further organic growth
opportunities.
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 to Northwest Ontario
- Sanctioned $0.3 billion expansion
of the Panhandle Regional Transmission System to meet growing
natural gas demand in Southern
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 near Corpus Christi, Texas on the U.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
Al Monaco, President and CEO
commented on the following:
"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 $14 billion of capital we placed
into service in 2021, including the Ingleside acquisition, is generating
incremental EBITDA and distributable cash flow growth. We are on
target to achieve our full year financial guidance.
"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 U.S. Gulf Coast
at a time when greater supply of more sustainable and secure North
American energy is needed. In the first quarter, Ingleside loaded over 20% of export volumes on
the Gulf Coast, reflecting our ability to offer lowest
basin-to-water costs. We continue to see strong customer interest
to expand our storage and product loading capabilities, including
NGLs. We're also now developing hydrogen and ammonia opportunities
at Ingleside, which will include
carbon capture and sequestration that will allow production of
low-carbon fuel sources. Our Texas Eastern System on the Gulf Coast
can provide feed gas, demonstrating the synergies across our
diversified asset base.
"We're very excited to be moving our Alberta carbon capture strategy forward with
the Open Access Wabamun Carbon Hub, which received approval from
the Government of Alberta for
further development. Our partnerships with Capital Power and Lehigh
Cement, and local Indigenous and Métis communities, will enable the
sequestration of nearly 4 million tonnes of CO2
annually, and there's expansion potential beyond that.
"In Gas Transmission, we're seeing a strong pick up in
commercial interest from Asia and
Europe to secure export capacity.
We currently serve four operating LNG facilities in the Gulf Coast.
Three more LNG developments, Plaquemines LNG, Rio Grande and Texas
LNG, are moving towards investment decisions and we've secured
projects to serve those facilities if they reach a final investment
decision.
"In Western Canada, the
fundamentals for LNG export are strengthening, with abundant
low-cost reserves and shorter transport times to Asian markets.
Today, we announced an open season for a $1
billion expansion of the T-North section of the B.C.
Pipeline to support production and demand growth, including west
coast LNG demand. We continue to advance the proposed $2.5+ billion
T-South expansion to support growing demand in the Pacific
Northwest, including from Woodfibre which recently announced that
it is advancing preliminary construction activities. Growing demand
in the region could support further growth on our Westcoast system
including a second expansion of T-North.
"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 $300
million expansion of the Panhandle Transmission System to
support increased customer demand. The Markham hydrogen blending project has now been
successfully operating during the first quarter with good results
and we're developing over fifty in-franchise RNG
opportunities.
"In Renewables, we're making good progress on construction of
four offshore wind projects in France with the first project planned to enter
service late this year. In North
America, our solar self-power projects serving our liquids
and gas transmission businesses is well advanced with three
projects in service and ten more projects capable of generating 100
megawatts (MW) under construction. We're developing a further 160MW
of utility-scale projects that would serve third parties at our
Corpus Christi export terminal in
Texas and our Plummer pump station
in Minnesota.
"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 $5-6 billion of annual investable capacity, which
we'll continue to deploy in a disciplined manner to maximize
shareholder returns.
"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 Enbridge to generate long-term shareholder value while
building a bridge to a cleaner energy future.
FINANCIAL RESULTS SUMMARY
Financial results for the three months ended March 31, 2022 and 2021 are summarized in the
table below:
|
Three months
ended
March 31,
|
|
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 $27
million or $0.01 per share
compared with the same period in 2021.
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
$404 million compared with the same
period in 2021. This is primarily driven by contributions from the
U.S portion of the Line 3 Replacement Project and the acquisition
of the Enbridge Ingleside Energy Center.
Adjusted earnings in the first quarter of 2022 increased by
$71 million, or $0.03 per share, primarily due to higher Adjusted
EBITDA contributions, partially offset by increased depreciation
expense on new assets placed into service in 2021 and higher income
taxes on higher earnings.
DCF for the first quarter of 2022 increased by $311 million, or $0.15 per share, primarily due to higher Adjusted
EBITDA contributions partially offset by higher cash taxes on
higher taxable earnings and higher financing costs due to lower
capitalized interest with the completion of U.S. portion of the
Line 3 Replacement Project.
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
$15.0 and $15.6 billion and distributable cash flow per
share between $5.20 to $5.50. Strong first quarter results are in line
with expectations and the Company anticipates that its businesses
will continue to experience strong utilization and good operating
results through the balance of the year with normal course
seasonality. Forward financial guidance reflects a provision
in recognition of the uncertainty of future Mainline tolls
associated with the ongoing commercial framework discussions with
shippers.
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 February 17, 2022, Enbridge
secured US$1.5 billion of debt
financing at attractive rates consisting of US$600 million of 2-year floating rate senior
notes, US$400 million of 2-year
senior notes, and US$500 million of
3-year senior notes. Proceeds from this offering were primarily
used to repay existing indebtedness and for other general corporate
purposes.
On March 1, 2022, Enbridge
redeemed the $750 million outstanding
Cumulative Redeemable Minimum Rate Reset Preference Shares, Series
17 (TSX: ENB.PF.I) using proceeds from the previously announced
issuance of $750 million of hybrid
securities in the Canadian debt market earlier this year. On
May 2, 2022, Enbridge notified
holders of its outstanding Cumulative Redeemable Preference Shares,
Series J (TSX: ENB.PR.U) of the Company's intention to redeem all
of its US$200 million outstanding
Cumulative Redeemable Preference Shares, Series J on June 1, 2022. Going forward, Enbridge will
opportunistically redeem at par series of Enbridge preference
shares with high reset rates and refinance with equity equivalent
hybrid securities when economic to do so.
SECURED GROWTH PROJECT EXECUTION UPDATE
Today, the Company announced the $0.3
billion expansion of the Panhandle Transmission System,
which supplies natural gas from the Dawn Hub to customers in
Southern Ontario. The project is
expected to receive a full cost-of-service regulated return with
target phased in-service dates of late-2023 and late-2024.
The Company's current secured growth program is approximately
$10 billion and is supported by
commercial models consistent with Enbridge's low-risk model. The
program includes ratable capital requirements for both Gas
Transmission's modernization and Gas Distribution's utility growth
programs, as well as four offshore wind projects in France providing a combined 1.5 GW (0.3 GW
net) of generation capacity, and a number of other smaller projects
across each of Enbridge's businesses.
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 June 30, 2021, and ii) a Canadian Mainline
cost-of-service application. Either framework is anticipated to
provide attractive risk-adjusted returns for operating the Canadian
Mainline and the range of financial outcomes is not expected to
materially impact Enbridge's financial outlook.
During the first quarter, Enbridge initiated consultation with
industry participants, including sharing of detailed cost
information with an industry negotiation group comprised of a
cross-section of industry, including producers and refiners, and
Enbridge.
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, Enbridge is collecting interim
tolls which are consistent with the tolls in effect on June 30, 2021 when the CTS agreement expired and
which are subject to refund. The Company's forward financial
guidance reflects a provision in recognition of the uncertainty of
future Mainline tolls.
Westcoast Canada LNG Development
Today, Enbridge announced that its subsidiary, Westcoast Energy
Inc., will conduct an Open Season to for an expansion project of
the T-North section of the B.C. Pipeline System (T-North
Expansion). The expansion will add approximately 400 MMcf/d of
additional capacity to meet supply growth in Northeast B.C. and
increasing LNG export demand.
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 $1 billion and the
investment will be underpinned by a cost-of-service commercial
model.
Additionally, the Company continues to develop the previously
announced $2.5+ billion expansion of the T-South segment of the
B.C. Pipeline System for up to 300 MMcf/d which could involve an
additional upstream expansion of the T-North system. The Company is
targeting an Open Season to underpin the T-South portion of the
expansion in the third quarter of 2022. The expansions are
necessary to support demand for natural gas in the Pacific
Northwest including Westcoast LNG.
Carbon Capture and Storage (CCS)
On March 31, 2022, the Government
of Alberta announced that Enbridge
was awarded the right to pursue further development of the
Company's proposed Open Access Wabamun Carbon Hub (the Hub). The
proposed Hub will support near-term carbon capture projects being
advanced by project partners, Capital Power Corporation (Capital
Power) and Lehigh Cement, a division of Lehigh Hanson Materials
Limited (Lehigh Cement). Combined, the projects represent an
opportunity to capture nearly 4 million tonnes of atmospheric
carbon dioxide emissions, with phased in-service dates starting as
early as 2026, which can be further scaled to meet the needs of
other nearby industrial emitters.
The Hub's carbon transportation and sequestration facilities
will be co-developed and ultimately co-owned with local Indigenous
partners including the First Nations Capital Investment Partnership
(comprised of Alexander First
Nation, Alexis Nakota Sioux Nation, Enoch Cree Nation and Paul First Nation) and the Lac Ste. Anne Métis
Community.
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.
Enbridge and Humble Midstream LLC (Humble), a privately held
company backed by Encap Flatrock Midstream, announced a letter of
intent to collaborate on the development and joint marketing of a
blue hydrogen and ammonia production and export facility which will
be located at EIEC, along with related carbon capture
infrastructure. Natural gas to supply the facility would be
provided by Enbridge's Texas Eastern system. Enbridge and Humble
intend to jointly market the capacity of the proposed blue hydrogen
and ammonia production facilities, and Enbridge will develop the
associated carbon capture and sequestration infrastructure. The
construction of any facilities will be subject to sufficient
customer support and receipt of all necessary regulatory approvals.
In addition, Enbridge is continuing to develop a 60 MW solar
facility at EIEC which will provide renewable power generation for
the export terminal as well as other local demand in the region
which will enable net negative facility emissions.
Normal Course Issuer Bid (NCIB) Execution
On December 31, 2021, the TSX
approved Enbridge's NCIB to purchase, for cancellation, up to
31,062,331 of its outstanding common shares to an aggregate amount
of up to $1.5 billion. The NCIB
commenced on January 5, 2022 and
expires on the earlier date of January 4,
2023, or when the Company reaches its share repurchase
limit.
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
Enbridge's common shares and creates an additional avenue to
supplement the return of capital to shareholders, while increasing
per share earnings and distributable cash flow.
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
March 31,
|
|
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
|
Renewable Power
Generation
|
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 C$1.27/US in
both the first quarter of 2022 and 2021. A portion
of U.S. dollar earnings is hedged under the Company's
enterprise-wide financial risk management program. The offsetting
hedge settlements are reported within Eliminations and Other.
Liquids Pipelines
|
Three months
ended
March 31,
|
|
2022
|
2021
|
(unaudited; millions
of Canadian dollars)
|
|
|
Mainline
System
|
1,284
|
1,131
|
Regional Oil Sands
System
|
245
|
237
|
Gulf Coast and
Mid-Continent System
|
347
|
189
|
Other
Systems1
|
341
|
324
|
Adjusted
EBITDA2
|
2,217
|
1,881
|
|
|
|
Operating Data
(average deliveries – thousands of bpd)
|
|
|
Mainline System -
ex-Gretna volume3
|
3,004
|
2,746
|
International Joint
Tariff (IJT)4
|
$4.27
|
$4.27
|
Competitive Tolling
Settlement (CTS) Surcharges4
|
$0.26
|
$0.26
|
Line 3 Replacement
Surcharge4,5
|
$0.94
|
$0.20
|
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-Gretna,
Manitoba which is made up of U.S. and Eastern Canada deliveries
originating from Western Canada.
|
4
|
The IJT benchmark toll
and its components are set in U.S. dollars and the majority of the
Company's foreign exchange risk on the Canadian portion of the
Mainline is hedged. The Canadian portion of the Mainline represents
approximately 55% of total Mainline System revenue and the average
effective FX rate realized for the Canadian portion of the Mainline
during the first quarter of 2021 was C$1.24/US$ (Q1 2021:
C$1.24/US$). The U.S. portion of the Mainline System is subject to
FX translation similar to the Company's other U.S. based
businesses, which are translated at the average spot rate for a
given period. A portion of this U.S. dollar translation exposure is
hedged under the Company's enterprise-wide financial risk
management program with offsetting hedge settlements reported
within Eliminations and Other. The Company is currently recording a
provision against the IJT in recognition of the uncertainty of the
final Mainline tolls upon the completion of the Mainline commercial
framework negotiations.
|
5
|
The interim surcharge
of US$0.20 for the Canadian portion of the Line 3 Replacement
Project, which was placed into service on December 1, 2019, was
collected until October 1, 2021. With the completion of the U.S.
portion of the Line 3 Replacement Project on October 1, 2021, the
interim surcharge was replaced by the full Line 3 Replacement
surcharge.
|
Liquids Pipelines adjusted EBITDA increased $336 million compared with the first quarter of
2021, primarily related to:
- 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 of US$0.935 per barrel compared with the surcharge
on the Canadian portion of the project of US$0.20 per barrel in effect prior to
October 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 growing U.S. Gulf Coast crude oil demand.
Gas Transmission And Midstream
|
Three months
ended
March 31,
|
|
2022
|
2021
|
(unaudited; millions
of Canadian dollars)
|
|
|
U.S. Gas
Transmission
|
759
|
782
|
Canadian Gas
Transmission
|
177
|
142
|
U.S.
Midstream
|
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
$51 million compared with the first
quarter of 2021, primarily related to:
- 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 at Enbridge'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
March 31,
|
|
2022
|
2021
|
(unaudited; millions
of Canadian dollars)
|
|
|
Enbridge Gas Inc.
(EGI)
|
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
$28 million compared with the first
quarter of 2021 primarily related to:
- 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 on December 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 $27
million, compared to a negative impact of approximately
$24 million in the first quarter of
2021.
Renewable Power Generation
|
Three months
ended
March 31,
|
|
2022
|
2021
|
(unaudited; millions
of Canadian dollars)
|
|
|
Adjusted
EBITDA1
|
160
|
154
|
1 Non-GAAP
financial measure. Please refer to Non-GAAP Reconciliations
Appendices.
|
Renewable Power Generation adjusted EBITDA increased $6 million compared with the first quarter of
2021 primarily related to:
- 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 during February 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
March 31,
|
|
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 $4
million compared with the first quarter of 2021. The
increase is the result of:
- the absence of adverse impacts from the winter storm in
Texas during February 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
March 31,
|
|
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. U.S.
dollar denominated earnings within operating segment results are
translated at average foreign exchange rates during the quarter,
and the offsetting impact of settlements made under the Company's
enterprise foreign exchange hedging program are captured in this
corporate segment.
Eliminations and Other adjusted EBITDA decreased $21 million compared with the first quarter of
2021 due to:
- 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
March 31,
|
|
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
|
Renewable Power
Generation
|
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 $311
million compared with the same period of 2021 primarily due
to operational factors discussed above contributing to higher
Adjusted EBITDA, as well as:
- 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 3 Replacement 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
March 31,
|
|
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 $71
million and adjusted earnings per share increased
$0.03 compared with the first quarter
in 2021 primarily due to operational factors discussed above
contributing to higher Adjusted EBITDA, as well as:
- higher depreciation expense on new assets placed into service
throughout 2021, including the U.S. portion of the Line 3
Replacement 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 3 Replacement 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
Enbridge will host a conference call and webcast on May 6,
2022 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time)
to provide an enterprise wide business update and review 2022 first
quarter results. Analysts, members of the media and other
interested parties can access the call toll free at (833) 233-4460
or within and outside North
America at (647) 689-4543 using the participant passcode of
6486063. The call will be audio webcast live at
https://event.on24.com/wcc/r/3723407/50E30FC946507CDB8C2D1CE3C43B544D.
It is recommended that participants dial in or join the audio
webcast fifteen minutes prior to the scheduled start time. A
webcast replay will be available soon after the conclusion of the
event and a transcript will be posted to the website. The replay
will be available for seven days after the call toll-free (800)
585-8367 or within and outside North
America at (416) 621-4642 (conference ID: 6486063).
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.
DIVIDEND DECLARATION
On May 3, 2022, the Company's
Board of Directors declared the following quarterly dividends. All
dividends are payable on June 1, 2022
to shareholders of record on May 13,
2022.
|
Dividend per
share
|
Common
Shares1
|
$0.86000
|
Preference Shares,
Series A
|
$0.34375
|
Preference Shares,
Series B
|
$0.21340
|
Preference Shares,
Series C2
|
$0.18400
|
Preference Shares,
Series D
|
$0.27875
|
Preference Shares,
Series F
|
$0.29306
|
Preference Shares,
Series H
|
$0.27350
|
Preference Shares,
Series J3
|
US$0.30540
|
Preference Shares,
Series L
|
US$0.30993
|
Preference Shares,
Series N
|
$0.31788
|
Preference Shares,
Series P
|
$0.27369
|
Preference Shares,
Series R
|
$0.25456
|
Preference Shares,
Series 1
|
US$0.37182
|
Preference Shares,
Series 3
|
$0.23356
|
Preference Shares,
Series 5
|
US$0.33596
|
Preference Shares,
Series 7
|
$0.27806
|
Preference Shares,
Series 9
|
$0.25606
|
Preference Shares,
Series 11
|
$0.24613
|
Preference Shares,
Series 13
|
$0.19019
|
Preference Shares,
Series 15
|
$0.18644
|
Preference Shares,
Series 19
|
$0.30625
|
1
|
The quarterly dividend
per common share was increased 3% to $0.86 from $0.835, effective
March 1, 2022.
|
2
|
The quarterly dividend
per share paid on Series C was increased to $0.18400 from $0.15719
on March 1, 2022, due to reset on a quarterly basis following the
date of issuance of the Series C Preference
Shares.
|
3
|
On May 2, 2022,
Enbridge notified holders of its outstanding Cumulative Redeemable
Preference Shares, Series J (Series J Shares) (TSX: ENB.PR.U) of
the Company's intention to redeem all of its US$200 million
outstanding Series J Shares on June 1, 2022.
|
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements,
have been included in this news release to provide information
about Enbridge 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: Enbridge's strategic plan, priorities and outlook; 2022
financial guidance, including projected DCF per share and adjusted
EBITDA and expected growth thereof; expected dividends, dividend
growth and dividend policy; expected supply of, demand for, exports
of and prices of crude oil, natural gas, natural gas liquids (NGL),
liquified natural gas (LNG) and renewable energy; energy transition
and low carbon energy and our approach thereto; environmental,
social and governance (ESG) goals, targets and plans, including
greenhouse gas (GHG) emissions intensity and reduction targets, ESG
engagement and disclosure and diversity and inclusion goals;
anticipated utilization of our assets, including Mainline volumes;
expected EBITDA and expected adjusted EBITDA; expected
earnings/(loss) and adjusted earnings/(loss); expected DCF and DCF
per share; expected future cash flows; expected debt-to EBITDA
range; expected shareholder returns and asset returns; expected
performance of the Company's businesses, including customer growth
and organic growth opportunities; financial strength, capacity and
flexibility; financing costs; expectations on leverage, sources of
liquidity and sufficiency of financial resources; expected
in-service dates and costs related to announced projects and
projects under construction and system expansion, optimization and
modernization; capital allocation framework and priorities; impact
of weather and seasonality; share repurchases under normal course
issuer bid; investment capacity; expected future growth and
expansion opportunities, including secured growth program,
development opportunities and low carbon and new energies
opportunities and strategy, including with respect to Westcoast LNG
developments, carbon capture and storage and the Enbridge Ingleside
Energy Center; expected future actions and decisions of regulators
and courts and the timing and impact thereof; and toll and rate
case discussions and filings, including with respect to the
Mainline, and anticipated timing and impact therefrom.
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: energy transition,
including the drivers and pace thereof; the COVID-19 pandemic and
the duration and impact thereof; global economic growth and trade;
the expected supply of and demand for crude oil, natural gas, NGL,
LNG and renewable energy; prices of crude oil, natural gas, NGL,
LNG and renewable energy; anticipated utilization of our assets;
anticipated cost savings; exchange rates; inflation; interest
rates; availability and price of labour and construction materials;
operational reliability and performance; customer, regulatory and
stakeholder support and approvals; anticipated construction and
in-service dates; weather; announced and potential acquisition,
disposition and other corporate transactions and projects and the
timing and impact thereof; governmental legislation; litigation;
credit ratings; hedging program; expected EBITDA and expected
adjusted EBITDA; expected earnings/(loss) and adjusted
earnings/(loss); expected earnings/(loss) or adjusted
earnings/(loss) per share; expected future cash flows and expected
future DCF and DCF per share; estimated future dividends; financial
strength and flexibility; debt and equity market conditions; and
general economic and competitive conditions. Assumptions regarding
the expected supply of and demand for crude oil, natural gas, NGL,
LNG 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, interest rates and
the COVID-19 pandemic 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
expected EBITDA, expected adjusted EBITDA, expected
earnings/(loss), expected adjusted earnings/(loss), expected DCF
and associated per share amounts and estimated future dividends.
The most relevant assumptions associated with forward-looking
statements regarding 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; customer, government and regulatory approvals on
construction and in-service schedules and cost recovery regimes;
and the COVID-19 pandemic and the duration and impact
thereof.
Enbridge's forward-looking statements are subject to risks
and uncertainties pertaining to the realization of anticipated
benefits and synergies of projects and transactions, successful
execution of our strategic priorities, operating performance, the
Company's dividend policy, regulatory parameters, changes in
regulations applicable to the Company's business, litigation,
acquisitions and dispositions and other transactions, 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, political decisions,
exchange rates, interest rates, commodity prices, supply of and
demand for commodities and the COVID-19 pandemic, including but not
limited to those risks and uncertainties discussed in this and in
the Company's other filings with Canadian and U.S. 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 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 a leading North American energy
infrastructure company. We safely and reliably deliver the energy
people need and want to fuel quality of life. Our core businesses
include Liquids Pipelines, which transports approximately 30
percent of the crude oil produced in North America; Gas Transmission and Midstream,
which transports approximately 20 percent of the natural gas
consumed in the U.S.; Gas Distribution and Storage, which serves
approximately 3.9 million retail customers in Ontario and Quebec; and Renewable Power Generation, which
owns approximately 1,766 MW (net) in renewable power generation
capacity in North America and
Europe. The Company's common
shares trade on the Toronto and
New York stock exchanges under the
symbol ENB. For more information, visit www.enbridge.com.
None of the information contained in, or connected to,
Enbridge's website is incorporated in or otherwise forms part of
this news release.
FOR FURTHER
INFORMATION PLEASE CONTACT:
|
|
|
Enbridge Inc. –
Media
|
|
Enbridge Inc. –
Investment Community
|
Jesse Semko
|
|
Jonathan
Morgan
|
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
the United States of America (U.S.
GAAP), before covering interest, tax, depreciation and
amortization.
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
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 RECONCILIATIONS – ADJUSTED
EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
|
Three months
ended
March 31,
|
|
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
|
Renewable Power
Generation
|
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
March 31,
|
|
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
|
Renewable Power
Generation
|
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
March 31,
|
|
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
March 31,
|
|
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
March 31,
|
|
2022
|
2021
|
(unaudited; millions
of Canadian dollars)
|
|
|
Adjusted
EBITDA
|
1,058
|
1,007
|
Equity
earnings adjustment - DCP Midstream, LLC
|
(63)
|
(19)
|
Other
|
19
|
(15)
|
Total
adjustments
|
(44)
|
(34)
|
EBITDA
|
1,014
|
973
|
GAS DISTRIBUTION AND STORAGE
|
Three months
ended
March 31,
|
|
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
|
RENEWABLE POWER GENERATION
|
Three months
ended
March 31,
|
|
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
March 31,
|
|
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
March 31,
|
|
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
March 31,
|
|
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.
|
View original
content:https://www.prnewswire.com/news-releases/enbridge-reports-first-quarter-2022-financial-results-and-advances-new-organic-growth-opportunities-301541381.html
SOURCE Enbridge Inc.