World News – CA – Enbridge Reports Strong Third Quarter, Reaffirms Financial Guidance for 2020

CALGARY, AB, nov Jan. 6, 2020 / PRNewswire / – Enbridge Inc (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) today announced strong financial results for the third quarter of 2020 and provided a quarterly activity update

« We are satisfied with our third quarter results, which reflect the resilience of our business and the predictability of our cash flow, » commented Al Monaco, President and CEO of Enbridge. « Although we are encouraged by economic activity and the recovery in energy demand, we assume a gradual rate of recovery on the balance from 2020 and until 2021 Above all, the early and decisive actions we have taken to protect the health of our employees and mitigate the operational and financial impacts on our activities have positioned us for the future.

« Each of our core businesses performed well in the third quarter Utilization levels in our gas transmission, gas distribution and storage and renewable energy businesses all remained strong and their strong business fundamentals continue to provide reliable cash flows that reflect the low risk pipeline-utility activities we are talking about

« In the liquids business, heavy mainline capacity is now fully utilized and annual volumes are within the range we provided in May for the remainder of 2020, and we are on track to achieve $ 300 million. cost reduction dollars in 2020 Our strong performance in the first nine months gives us confidence that we will be near the midpoint of the $ 4 DCF per share forecast range.50 to 4 $ 80

« We continued to make excellent progress on our strategic priorities In the gas transportation business, the vast majority of work has been completed on Texas Eastern to ensure safe and reliable natural gas delivery and the system is returned to normal operating capacity for eastbound service in time for the winter heating season Construction of the T-South expansion, Spruce Ridge and our modernization program continue to progress well

« In liquids, the Line 3 permitting process progressed with the AMLA contested case hearing process, resulting in a favorable recommendation from the ALJ which dismissed all five issues considered The next step will be for the AMPA Commissioner to issue the 401 Water Quality Certificate, which we expect by November 14, and will support the finalization of the remaining federal permit.

« In our renewable energy business, we have made good progress in the construction of our two most recent offshore wind projects in France: Saint Nazaire, a 480 MW project, is progressing well, on schedule and we have now started construction of the 500 MW Fé camp project In addition, we are expecting FID on a third project in 2021 These projects will further expand our European offshore wind business and generate high quality cash flow with solid returns

« Elsewhere as part of our renewable energy strategy, we’ve just commissioned our first self-powered solar compressor station on Texas Eastern and started work on a facility in Alberta along the mainline of liquids, collectively providing renewable energy at low cost to our operations This will be the first of many self-power projects that we are pursuing in the months and years to come to ensure we minimize our environmental footprint

« I am pleased to announce that Enbridge is committed to further reducing its own emissions and enhancing our diversity and inclusion, and strategies to achieve these goals. These goals represent a natural evolution of our approach and demonstrate once again our commitment to industry leadership Enbridge has long been a leader in environmental, social and governance (ESG) issues and our practices have been fully integrated into our business operations and strategies existing to grow the business

« Enbridge is uniquely positioned to transition the energy mix to lower carbon fuels over time Our diverse asset base is deliberately aligned with the global energy mix and our outlook on fundamentals Our pipeline assets and long-term distribution are absolutely critical to the global economy and strategically connected to the largest demand centers and export markets, which pull volumes through our systems And, every business is built on low-risk business models that ensure our cash flow is sustained over the long term

« In the short term, the completion of our guaranteed capital program and the integrated growth within each company is expected to generate a DCF of 5% to 7% per share through 2022 and support the growth of cash flow available, net of capital and dividend requirements In the short term, our capital allocation priorities remain focused on achieving our secure growth and maintaining the strength and flexibility of the balance sheet  At the end of our secure growth,  we will maintain our cautious approach to low-risk, low-capital-intensive utility-type growth and disciplined capital allocation, including return of capital to shareholders

« We look forward to sharing our outlook on energy fundamentals and our approach to future business during our Virtual Investor Day scheduled for December 8, 2020, » concluded Mr. Monaco

The financial results for the three and nine months ended September 30, 2020 are summarized in the table below:

Non-GAAP financial measures Reconciliation tables of adjusted EBITDA, adjusted earnings, adjusted earnings per common share and distributable cash flow are available in the appendix to this press release

GAAP profit attributable to common shareholders for the third quarter of 2020 increased by $ 41 million or $ 0.02 per share compared to same period in 2019 Period-over-period comparability of profit attributable to common shareholders was influenced by certain unusual and infrequent or other non-operating factors, which are set out in the reconciliation schedule included in Appendix A of this press release

Q3 2020 Adjusted EBITDA Decreased by $ 111 Million Compared to Same Period in 2019 Business benefited from additional profits from positive tariff settlement on Texas Eastern, new asset contributions commissioned at the end of 2019 and the first half of 2020 and customer growth and synergies in gas distribution and storage The strong performance of the core business was more than offset by lower contributions from energy services due to a significant squeeze in some regional and lower major flows related to COVID-19, and the lack of contributions from the Canadian federally regulated natural gas gathering and processing company sold on December 31, 2019

Adjusted earnings for the third quarter of 2020 decreased by $ 163 million and per share by $ 0.08 The decrease is mainly due to lower Adjusted EBITDA as well as a reduction in capitalized interest and an increase in l  » depreciation of new assets put into service throughout 2019, mainly under the Canadian Line 3 replacement program

The DCF for the third quarter was $ 2,088 million, a decrease of $ 17 million from the third quarter of 2019, mainly due to the net impact of the operating factors mentioned above. above, partially offset by a decrease in maintenance capital due to the expenditure schedule given COVID-19 and higher receipts not recognized in EBITDA for contracts with catch-up rights to certain assets in liquids pipelines These factors are described in detail under Distributable cash flow

Detailed segment financial information and analysis for the third quarter of 2020 can be found below under Adjusted EBITDA by segments

The company expects to generate DCF per share near the midpoint of its initial range of $ 4.50 to $ 480 This outlook reflects our strong performance in the first nine months of 2020, the $ 300 million in savings of full-year costs, as well as some offsetting headwinds expected in the fourth quarter

Mainline volumes recover in line with outlook released in May and are expected to be 100-300 kb / d below company expectations ahead of COVID19 for the fourth quarter In addition, declining margins in energy services, lower distributions of DCP shares linked to previously executed distribution reduction and higher integrity costs in gas transmission are expected to have a negative impact on fourth quarter results versus full year forecast

The Company continues to obtain debt financing at attractive rates and the proceeds from these offerings have been used primarily to reduce existing indebtedness and partially finance capital projects During the third quarter, the Company has Completed the previously announced US $ 1 project Offer of 0 billion 60-year hybrid subordinated bonds in the US bond capital markets These hybrid notes are eligible for 50% equity treatment by most rating agencies, which further strengthens the financial strength of the company

Following the third quarter, Texas Eastern Transmission, LP, a wholly owned subsidiary of the Company, issued US $ 300 million of senior notes in 20 year tranches by private placement The proceeds were used to repurchase US $ 300 million senior notes due December 2020

The Company completed its 2020 Debt Financing Plan and pre-financed a portion of its 2021 external debt requirements In addition, the Company ended the third quarter with more than $ 14 billion in cash on hand, which is sufficient capacity to meet all of its financing needs until the end of 2021 without further access to financial markets Debt / EBITDA is expected to stay well within the target range of 45x to 50x for the full year

The Company continues to advance the development of its inventory of approximately $ 11 billion of guaranteed growth projects, with approximately $ 5 billion of growth capital remaining to be spent through 2022, net of planned funding at project level provided by third parties

In addition, the company today announced $ 0 2 billion in utility growth capital for the London Line Replacement Project This project will replace two parallel pipelines connecting the Dawn Hub to the residential and commercial markets in the south of Ontario who have reached the end of their useful life

The $ 9 billion Line 3 Replacement Project is a critical integrity project that will improve the safe and reliable operations of our Mainline into the future, reflecting Enbridge’s commitment to protecting the environment

In the third quarter, the Minnesota Public Utilities Commission (MPUC) issued its final order to approve the final environmental impact statement (FEIS) and reinstate the certificate of need and road permit, then rejected all related reconsideration requests This action substantially complements the regulatory review process

State and Federal Agencies Continue to Advance Needed Environmental Permits Alongside AMPA’s Contested Case Hearing Process Related to State 401 Water Quality Certificate Completed October 16, 2020 , Enbridge received a favorable recommendation from the ALJ on all five issues reviewed, further confirming the comprehensive regulatory record and critical nature of this integrity project. This recommendation will inform the AMPA commissioner’s decision on the 401 water quality certificate, which the company anticipates by the legal deadline of November 14, 2020.

During the third quarter, the necessary stormwater building permit was issued by the MPCA, and after the third quarter, Enbridge received two of its required permits from the Minnesota Department of Natural Resources (MNR) The U remainingS The authorization processes of the Army Corps of Engineers (USACE) and the DNR are underway and continue to progress in parallel

Once Enbridge receives all necessary permits and construction approval from the MPUC, the company expects construction in Minnesota to take 6-9 months

The eastern and western sections of Line 5 crossing the Strait of Mackinac (the Strait) have been returned to service and are fully operational, after line inspections of both lines crossing the Strait confirmed the safety of the lines and serviceability The inspections concluded that there had been no damage to the pipeline itself as a result of the disruption of an anchor bracket identified by the company earlier this year in July

As part of Enbridge-State of Michigan deal, the company plans to replace existing dual Strait Line 5 pipelines with a single encapsulated pipeline in a state-of-the-art tunnel under the Strait The Great Lakes Tunnel Project will make a safe pipeline even safer and further demonstrate Enbridge’s continued commitment to protect Michigan and the Great Lakes’ natural resources, while providing a reliable source of energy to the people of Michigan

The company carried out a thorough geotechnical assessment and retained the services of a world-class engineering team to design the tunnel Enbridge has filed all major regulatory and environmental permits necessary for the tunnel construction and construction processes. review of each of them continue to progress on schedule

Company lifted pressure restrictions on Texas Eastern system related to eastbound service in time for winter heating season after completion of planned integrity work Enbridge continues to prioritize execution of its comprehensive gas transmission integrity program, which will ensure the continued safe and reliable operation of its pipeline system, and plans to return southbound service to service within the next monthÂ

The company finalized three tariff proceedings during the first half of the year on the Texas Eastern, Algonquin and BC Pipeline systems, which are producing good results for both Enbridge and shippers, are making further advance the company’s strategy to ensure fair and timely cost recovery

Three additional tariff proceedings on East Tennessee, Alliance and Northeastern US Maritime & systems were filed in Q2 and are progressing as expected

The company continues to advance its mainline subcontracting request, which is currently under review by the Canada Energy Regulator (CER) The contract offer reflects two years of negotiations with shippers and benefits from the support of shippers carrying 75% of mainline volumes This support reflects the competitiveness of the supply, which will support the best net revenues for shippers and secure long-term demand for western crude oil Canadian

In May, the REB issued a Hearing Order outlining the timelines for the regulatory review process, which includes several rounds of Intervenor Information Requests and CERs, written evidence and Enbridge’s responses, ending in April 2021 The company expects an oral hearing to take place sometime after April 2021, but a hearing date has not yet been set if a replacement agreement is not in place by June 30 2021, CTS tolls will continue on a provisional basis

During the third quarter, Enbridge responded to REB and stakeholder inquiries. The evidence also supports our view that the proposed tolls meet the standards of fair performance of regulators and that the offer of contract will serve the public interest

The following table summarizes the Company’s reported GAAP results for segment EBITDA, earnings attributable to common shareholders and cash provided by operating activities for the third quarter of 2020

For the purposes of evaluating performance, the Company makes adjustments for unusual, infrequent or other non-operating factors to reported GAAP earnings, segment EBITDA and cash flow from operations operational, which allows management and investors to compare performance more precisely over several periods, normalization for factors which are not indicative of the underlying commercial performance The tables incorporating these adjustments follow below The appendices reconciling the ‘EBITDA, Adjusted EBITDA, Adjusted EBITDA by Segment, Adjusted Earnings, Adjusted Earnings per Share and DCF at their closest GAAP equivalent are provided in the appendices to this press release.

Consists of cash received net of revenue recognized for set-off rights contracts and similar deferred revenue arrangements

Q3 2020 DCF was down $ 17 million compared to the same period in 2019, mainly due to:

Adjusted earnings fell $ 163 million, adjusted earnings per share fell $ 008 compared to the third quarter in 2019 The decrease in Adjusted EBITDA is attributable to the same factors impacting business performance and Adjusted EBITDA, as indicated under Distributable Cash Flow above, as well as following factors:

Adjusted EBITDA by segment is presented in Canadian dollars Adjusted EBITDA generated from US Dollar denominated companies have been converted at a higher average Canadian dollar exchange rate in the third quarter of 2020 (CAN $ 133 / US $ ) compared to the corresponding period of 2019 (1 $ C32 / US $)

A portion of US Dollar profits are hedged as part of the enterprise-wide financial risk management program Compensatory hedging settlements are reported in Eliminations and Others

Southern Lights Pipeline, Express-Platte System, Bakken System and Supply Pipelines are included in the Other category & Other

Mainline throughput volume represents deliveries from the ex-Gretna Main System in Manitoba which includes US and Eastern Canada deliveries from Western Canada

Volumes are for Athabasca Mainline, Athabasca Twin, Waupisoo Pipeline and Woodland Pipeline and exclude laterals from the regional oil sands network

The IJT benchmark toll and its components are defined in US dollars and the majority of the company’s currency risk on the Canadian portion of the mainline is hedged The Canadian part of the mainline accounts for approximately 45% of total network revenues principal and the average effective exchange rate for the Canadian portion of the Mainline during the third quarter of 2020 was C $ 1 US $ 20 (Q3 2019: C $ 1 / US $)

The US part of the main system is subject to FX translation similar to other U of the company’s based companies, which are converted at the average spot rate for a given period Part of this US Dollar conversion risk is hedged as part of the company-wide financial risk management program Compensatory hedging settlements are reported in Eliminations and Others

Adjusted EBITDA for liquids pipelines decreased $ 94 million compared to the third quarter of 2019, mainly due to:

Gas transportation in the United States includes the Canadian portion of the & Northeast des Maritimes pipeline which was previously included in Canadian Gas Transport The 2019 comparable adjusted EBITDA has been restated to reflect this change

Gas transportation and midstream adjusted EBITDA increased $ 1 million from the third quarter of 2019, primarily due to:

The number of active customers corresponds to the number of customers consuming natural gas at the end of the period indicated

Heating degree days are a measure of cold that indicates the volumetric needs of natural gas used for heating purposes in EGI’s distribution franchise areas

Normal weather conditions are EGI’s weather forecast in its former rate zones, using forecast methods approved by the Ontario Energy Board

Adjusted gas distribution and storage EBITDA will generally follow a seasonal pattern It is typically highest in the first and fourth quarters of the year, reflecting greater volumetric demand during the heating season The magnitude Seasonal fluctuations in EBITDA 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 by $ 60 million compared to the third quarter of 2019, mainly due to:

Renewable Power Generation’s adjusted EBITDA increased by $ 11 million compared to the third quarter of 2019, mainly due to:

Energy Services Adjusted EBITDA decreased $ 137 million from the third quarter of 2019 due to significant compression of location and quality spreads in some markets, leading to fewer opportunities for achieve profitable margins on capacity bonds

Operating and administrative recoveries entered in this segment reflect the cost of centrally provided services (including depreciation of company assets), including amounts recovered from business units for the provision of These services In addition, as previously indicated, US dollar-denominated earnings in segment results are translated at quarterly average exchange rates The offsetting effect of settlements made under the Company’s foreign exchange hedging program is taken into account in this sector

Eliminations and other adjusted EBITDA increased by $ 48 million compared to the third quarter of 2019 due to:

Enbridge to host a conference call and webcast on November 6, 2020 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to provide a company-wide business update and review the results Q3 2020 Financials Analysts, members of the media and other interested parties can access the call toll-free at (877) 930-8043 or within and outside North America at ( 253) 336-7522 using passcode 9737258 # The call will be broadcast live on audio web at https: // edgeMedia server com / mmc / p / youisrgo It is recommended that participants log on or join the audio webcast fifteen minutes before the scheduled start time A replay and podcast of the webcast will be available approximately two hours after the event ends and a transcript will be posted to the website within 24 hours The replay will be available for seven days after the toll-free call (855) 859-2056 or within and outside North America at (404) 537-3406 (access code 9737258 #)

The conference call format will include remarks prepared by the management team, followed by a question and answer session for the analyst and investor community only.The media and investor relations teams of Enbridge will be available after the call for any additional questions

On November 3, 2020, the Board of Directors of the Company declared the following quarterly dividends All dividends are payable on December 1, 2020 to shareholders of record on November 13, 2020

The quarterly dividend per common share has increased 98% to $ 0 81 from $ 0 738, effective March 1, 2020

The quarterly dividend per share paid on Series C was increased to $ 0 25,458 from $ 0 25,305 on March 1, 2020, was reduced to $ 0 16,779 from $ 0 25,458 on June 1, 2020 and was reduced to 0 $ 15975 from $ 0 16779 on September 1, 2020, due to a quarterly reset after the date of issue of the Series C Preferred Shares

The quarterly dividend per share paid on Series 11 has been reduced to $ 0 24613 from $ 0 275 on March 1, 2020, due to the annual dividend reset on March 1, 2020, and every five years thereafter

The quarterly dividend per share paid on Series 13 has been reduced to $ 0 19,019 from $ 0 275 on June 1, 2020, due to the annual dividend reset on June 1, 2020, and every five years thereafter

The quarterly dividend per share paid on Series 15 has been reduced to $ 0 18,644 from $ 0 275 on September 1, 2020, due to the annual dividend reset on September 1, 2020, and every five years thereafter

Forward-looking information or forward-looking statements have been included in this press release to provide information about Enbridge and its subsidiaries and affiliates, including management’s assessment of the future plans and activities of Enbridge and its subsidiaries Such information may not be appropriate for other purposes Forward-looking statements are generally identified by words such as « anticipate », « anticipate », « plan », « estimate », « anticipate », « plan », « have the ‘intention’,  » target  »,  » believe  », « likely » and similar words suggesting future results or statements regarding a prospect. Forward-looking information or statements included or incorporated by reference in this document include, but not limited to, statements regarding the following: Enbridge’s corporate vision and strategy, including strategic priorities and enablers; 2020 financial guidelines; the COVID-19 pandemic and its duration and impact; planned reductions in operating costs and deferrals of guaranteed growth capital expenditures; emission reduction targets; diversity and inclusion goals; the supply, demand and forecast prices for crude oil, natural gas, natural gas liquids, liquefied natural gas and renewable energy; the intended use of our existing assets, including throughput on the main network; Expected EBITDA and Expected Adjusted EBITDA; forecast profit / (loss) and adjusted profit / (loss); expected earnings / (loss) and adjusted earnings / (loss) per share; DCF and DCF expected per share; expected future cash flows; the expected performance of the company’s activities; debt / expected EBITDA ratio; financial strength and flexibility; expectations about sources of liquidity and the adequacy of financial resources; expected costs associated with announced projects and projects under construction and maintenance; planned commissioning dates for announced projects and projects under construction; planned capital expenditures and capital allocation priorities; anticipated future growth and expansion opportunities, including self-sustaining projects; expectations regarding the Company’s joint ventures and the ability of our partners to complete and finance announced projects and projects under construction; the planned closing of acquisitions and disposals and the timing thereof; the expected benefits of the transactions, including the realization of efficiencies and synergies; future actions expected from regulators and courts; discussions and submissions of toll and tariff cases, including mainline contracts and the expected benefits arising therefrom; Line 3 replacement program; Line 5 double pipes, Great Lakes Tunnel Project and related matters; Line 10 of the Texas Eastern network; interest rate; and exchange rate

Although Enbridge believes these forward-looking statements are reasonable based on information available at the date of such statements and the processes used to prepare the information, such statements are not guarantees of future performance and readers are urged not to place 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 activity and achievements differ significantly from those expressed or implied by these statements Significant assumptions include assumptions about the following: the COVID-19 pandemic and its duration and impact; expected reductions in operating costs and deferrals of guaranteed growth; forecasted supply and demand for crude oil, natural gas, natural gas liquids (NGLs) and renewable energy; the prices of crude oil, natural gas, NGLs and renewables, including the current low and volatility of these prices; the intended use of our existing assets; exchange rate; inflation; interest rate; availability and price of labor and construction materials; operational reliability; customer and regulatory approvals; maintaining regulatory support and approvals for company projects; the planned commissioning dates; weather situation; the timing and closing of acquisitions and disposals; achievement of expected benefits and transaction synergies; government legislation; litigation; the impact of the company’s dividend policy on its future cash flows; credit scores; financing of capital projects; coverage program; Expected EBITDA and Expected Adjusted EBITDA; forecast profit / (loss) and adjusted profit / (loss); expected earnings / (loss) or adjusted earnings / (loss) per share; expected future cash flows and expected future DCF and DCF per share; and estimated future dividends Assumptions regarding the expected supply and demand for crude oil, natural gas, NGLs and renewable energy, as well as the prices of these raw materials, are important and underlie all forward-looking statements. , as they can impact current and future levels of demand for Company Services Similarly, currency exchange rates, inflation, interest rates and the COVID-19 pandemic are impacting the economies and business environments in which the Company operates and may impact the levels of demand for the Company’s services and the cost of inputs, and are therefore inherent in any prospective statements Due to the interdependencies and correlation of these macroeconomic factors, the impact of any assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected EBITDA, expected adjusted EBITDA, earnings / (losses) expected and adjusted expected profits / (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 planned capital expenditures , are as follows: the availability and price of labor and construction materials; the effects of inflation and exchange rates on the costs of labor and materials; the effects of interest rates on borrowing costs; the impact of weather conditions and customer, government and regulatory approvals on construction and commissioning schedules and cost recovery regimes; and the COVID-19 pandemic and its duration and impact

Enbridge’s forward-looking statements are subject to risks and uncertainties relating to the realization of expected benefits and synergies from projects and transactions, the successful execution of our strategic priorities, operational performance, corporate policy. dividends, regulatory parameters, changes in regulations applicable to the business of the Company, litigation, acquisitions and disposals and other transactions, project approval and support, right-of-way renewals, weather, economic and competitive conditions, public opinion , changes in tax laws and tax rates, changes in trade agreements, policy decisions, exchange rates, interest rates, commodity prices, commodity supply and demand and the COVID-19 pandemic, including, but not limited to the risks and uncertainties discussed in this and other documents ts filed by the Company with securities regulators in Canada and the United States The impact of a risk, uncertainty or factor on a particular forward-looking statement cannot be determined with certainty, because 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 press 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 to persons acting on behalf of the company, are expressly qualified in their entirety by these cautionary statements.

ABOUT ENBRIDGE INCEnbridge Inc is a North American leader in energy infrastructure We safely and reliably deliver the energy people need and want to improve the quality of life Our Business major ones include pipelines, which transport approximately 25% of crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20% of the natural gas consumed in the US; Gas Distribution and Storage, which serves approximately 38 million retail customers in Ontario and Quebec; and Renewable Power Generation, which produces approximately 1,750 MW of net renewable energy 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 wwwEnbridgecom

None of the information contained in or linked to the Enbridge website is incorporated or otherwise forms part of this press release

This press release contains references to Adjusted EBITDA, Adjusted Earnings, Adjusted Earnings per Common Share and DCF Management believes that the presentation of these metrics provides useful information for investors and shareholders, as they provide increased transparency and insight into the performance of the company.

Adjusted EBITDA represents EBITDA adjusted for unusual, infrequent or other non-operating factors on a consolidated and segmented basis Management uses Adjusted EBITDA to set objectives and assess the performance of the company and its business units. ‘business

Adjusted earnings represents 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 relating to depreciation and amortization expense and to interest charges, income taxes and non-controlling interest on a consolidated basis Management uses adjusted earnings as another measure of the company’s ability to generate profit

DCF is defined as the cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to minority interests, preferred stock dividends and maintenance capital expenditures, and further adjusted for unusual, infrequent or other non-operational factors Management also uses DCF to assess company performance and set its dividend distribution target

Reconciliations between prospective non-GAAP financial measures and comparable GAAP measures are not available due to the difficulty and inability to estimate some of the items, in particular some contingent liabilities, and losses and fair value gains of unrealized non-cash derivatives that are subject to market variability Due to these challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without an unreasonable effort

Our non-GAAP measures described above are not measures that have standardized meanings prescribed by accounting principles generally accepted in the United States of America (US GAAP) and are not therefore US GAAP measures. , these measures may not be comparable to similar measures presented by other issuers

Maintenance capital expenditures are expenditures that are necessary for the ongoing support and maintenance of the existing pipeline network or which are necessary to maintain the service capability of existing assets (including replacement of components that are worn out , obsolete or that complement their useful lives) For DCF purposes, maintenance capital excludes expenses that extend the useful life of assets, increase capacity from existing levels, or reduce costs to increase revenues or improve performance. service capacity of existing assets

Consists of cash received net of revenue recognized for set-off rights contracts and similar deferred revenue arrangements

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Enbridge, NYSE: ENB, Earnings per share, Pipeline transportation, Renewable energy, Finance, Earnings before interest, taxes, depreciation and amortization, Al Monaco, New York Stock Exchange