|
|
|
|
|
||||||||||||||||
|
FAQs
Based on discussions with our investors and other members of the investment community, the following represent their most frequently asked questions together with responses by Enbridge. My Investment in Enbridge
Enbridge Strategic Issues
Enbridge Performance
My Investment in EnbridgeWhich of Enbridge's securities are available to the public and how do I make an investment?For a list of publicly traded Enbridge securities, check Summary of Securities on this website. As publicly traded instruments, these securities are available through regular retail brokerage services. Current shareholders may also participate in the Dividend Reinvestment and Share Purchase Plan. How do I get prospectuses or other information regarding common shares, preferred shares or preferred securities?Prospectuses for each Enbridge security can be obtained from this website in Reports & Filings. What are the key features of the Dividend Reinvestment and Share Purchase Plan and how do I participate in it?Highlights of the Enbridge "DRIP" and a downloadable copy of the related Plan information, which explains the Plan in full, are contained in Investor Relations/Stock Information/Dividends on this website. Alternatively, you may contact CIBC Mellon Trust Company to have information regarding the Plan delivered to you. To enroll in the Plan, Non-registered Owners of Enbridge Common Shares should contact their investment representative. Registered Owners should contact CIBC Mellon Trust Company regarding Enrollment. Does the Dividend Reinvestment and Share Purchase Plan (the Plan) provide a discount on the purchase of common shares of Enbridge?Effective with dividends payable on March 1, 2008, participants in the Enbridge Inc. Dividend Reinvestment and Share Purchase Plan will receive a two per cent discount on the purchase of common shares with reinvested dividends. The price of the common shares purchased on behalf of Plan participants with reinvested dividends will be 98% of the weighted average of the trading prices for common shares on The Toronto Stock Exchange on the five trading days preceding a dividend payment date. Enbridge reserves the right to amend or cancel the discount at any time. The discount will not apply to the purchase of common shares with optional cash payments under the Plan. Optional cash payments of up to $5,000 Canadian per quarter will be used to purchase common shares under the Plan at a price equal to 100% of the weighted average of the trading prices for common shares on The Toronto Stock Exchange on the five trading days preceding a dividend payment date. What is the difference between registered and non-registered security ownership?Registered Owners of securities hold their securities directly and most often physically possess certificate(s) evidencing their position. Non-registered Owners hold their securities through a brokerage firm or other financial intermediary. Beneficial Owner is an alternative term for non-registered holders. Non-registered securities are often referred to being held in "street form". Most investors choose to own securities in non-registered form, primarily for reasons of convenience. How do I make changes to my investment account?Non-registered Owners should contact their investment representative to request any changes to their account. Registered Owners should contact the appropriate Registrar and Transfer Agent, as listed in Investor Services on this website. The Corporation is not able to make address or name changes, confirm holdings or transactions, or perform other administrative tasks affecting the accounts of either registered or non-registered owners of Enbridge securities. How can I communicate directly with the Company?Enbridge encourages questions and discussion with all of its shareholders and potential investors. Please refer to Contact Us for contact information, including for the Investor Relations department of Enbridge. Enbridge Strategic IssuesWhere is Enbridge headed? What will Enbridge look like five years from now?Our vision is that Enbridge will become the leading energy delivery player in North America. As we are very conscious of protecting our attractive risk reward profile, we will achieve this vision in a steady measured pace as an asset manager. This will entail increased emphasis in the U.S. while expanding on our core competencies of liquids transportation and gas transmission and distribution. Why is Enbridge now more focused on U.S. expansion?We recognize that our industry is a continental one. As the United States is a large energy consumer and we are in the business of transporting energy, we increasingly find good infrastructure opportunities in the United States - both moving energy from Canada but increasingly within the U.S. This industry growth brings with it increased return opportunity and geographic diversification for Enbridge. Furthermore, with the divestiture programs announced by various U.S. peers and upstream producers, we expect a number of asset acquisition opportunities to arise over our planning horizon. The energy industry continues to undergo significant consolidation. Does Enbridge plan to make a large corporate acquisition?We believe that opportunities exist for continued expansion of our core businesses, as demonstrated in the past, as well as for selective small- to medium-scale acquisitions, joint ventures and investments. We will also continue to assess other opportunities, including larger scale transactions. However, we will continue to take a disciplined approach to acquisitions and mergers; the synergies and strategic benefits must be demonstrated to our satisfaction and the expected returns must be acceptable to shareholders. What is your outlook for crude oil volumes, and what will be the impact on your pipelines?Given the number of oil sands and heavy oil projects under way and planned for northern Alberta, we are confident of significant volume growth continuing over the decade. That is why we constructed the Terrace Expansion program from 1999 - 2003, and have proposed our new market access plans such as Southern Access, Alberta Clipper and Gateway to industry. These and other expansion initiatives will be needed, and will provide significant growth opportunities for our crude oil mainline, in both Canada and the U.S., our Athabasca pipeline and various terminal facilities for years to come. What is the Company's current International strategy?The Company's International business invests in energy transportation and related energy projects outside of Canada and the United States. This business also provides consulting and training services related to proprietary pipeline operating technologies and natural gas distribution. The Company has a 25% interest in a Spanish pipeline company, Compañia Logistica de Hidrocarburos (CLH), a 24.7% investment in the Colombian crude oil pipeline, Oleoducto Central S.A. (OCENSA), and a 100% interest in CIT Colombiana S.A. (CITCol), which is responsible for operating the OCENSA pipeline. The international business leverages our North American expertise in owning and operating energy infrastructure into investments in other regions of the world where we can find attractive risk-adjusted returns. Enbridge targets the International business to contribute approximately 15% to 20% of overall Company earnings; a range we are currently in. The International businesses unit is primarily focused on new opportunities in its core regions where our existing investments are located i.e. Europe and Latin America. International also monitors other regions with strong energy supply and demand fundamentals and will pursue investments that have appropriate risk / return profiles. Enbridge PerformanceWhat, in recent years, have been the major attractions of Enbridge as an investment?There are many features that attract different types of investors but there are three that stand out. First, over the past fifty years, Enbridge has demonstrated strong growth in earnings, dividends and share price and has a reputation of delivering on its targets. Second, Enbridge's inventory of new projects sets us apart from many others. Just as important though is that much of our growth has come from developing and extending the core business platform, which is recognized as a premium asset base. Finally, despite superior growth and returns, Enbridge's business risk profile is relatively low. More information on this subject is contained in Investment Overview on this website. Did Enbridge have a profitable year in 2006?Yes. 2006 earnings were $615.4 million, or $1.81 per share. Positive factors for 2006 include the earnings contribution from the recently acquired Enbridge Offshore Pipelines, higher contributions from the gas distribution utility and lower interest expense. For further information regarding 2006 results, see Reports & Filings or, by segment at Enbridge Businesses. Has Enbridge changed its common share dividend?Yes. The quarterly dividend was increased in early 2007. Effective with the March 1, 2007 payment, the quarterly dividend was increased to $0.3075 per share or $1.23 annualized (an increase of 7%). A history of quarterly dividends is available in Dividends on this website. Can Enbridge maintain its pattern of historical growth?We are confident that we can continue to generate superior returns to shareholders. This is based on organic growth across all our existing businesses in the 8% plus range over the next 5 years. We will continue to pursue acquisition opportunities that are accretive to earnings to supplement the organic growth. We continue to target 8-10% earnings per share growth on an average basis over the next 5 years. For Liquids Pipelines, we see potential to further increase efficiency and utilization rates on the main liquids system and feeder pipeline throughput from increasing oil sands production. We also see new pipeline capacity to new markets adding earnings growth materially. Our gas pipeline business also provides opportunities for expansion and new project development. U.S. acquisitions and increased general partner incentives in Enbridge Energy Partners are also planned. For the Energy Distribution business, increased earnings are expected from continuation of customer additions in both Ontario and New Brunswick and colder weather which will support volumetric gas sendout. See Strategic Direction for an overview of Enbridge's key strategic thrusts. What is Enbridge's debt leverage position?At December 31, 2006 Enbridge had a total debt to capitalization ratio of about 61% on an adjusted basis, which is at the lower end of its target of 60-64%. Enbridge targets in the lower end of the range to ensure financial flexibility maintained. |
|
© 2008 Enbridge Inc. All rights reserved.
|
