Enbridge provides an update on strategic priorities
Published by Oliver Kleinschmidt,
Editorial Assistant
Tanks and Terminals,
Enbridge Inc. has provided an update on its strategic priorities and financial outlook, which will be further discussed at the company's investor conference in New York, US. A virtual broadcast of the event was also made available for registered participants.
Highlights
Extending average annual growth rate through 2026 of:
- 7% - 9% for adjusted earnings before interest, income taxes and depreciation (EBITDA).
- 4% - 6% for earnings per share (EPS).
- ~3% for distributable cash flow (DCF) per share.
Reaffirmed average annual growth rate of ~5% post 2026 for adjusted EBITDA, DCF per share and adjusted EPS.
Reaffirmed 2024 full year financial guidance for EBITDA and DCF per share. The US gas utilities acquisitions announced on 5 September 2023 are expected to close at different times during 2024 and are not included in the 2024 financial guidance.
Generated annual investment capacity, after dividends, of up to US$9 billion while maintaining a strong balance sheet within target leverage range of 4.5x-5.0x.
Invested approximately US$3+ billion annually in low-risk natural gas utility infrastructure, inclusive of the assumed capital for the Acquisitions.
Announced accretive new capital investments including:
- Planning Gray Oak Pipeline expansion of approximately 120 000 bpd, pending a successful open season, and sanctioned 2.5 million bbl of additional storage at EIEC (Phase VII) for a combined ~US$0.1 billion.
- Acquisition of 2 marine docks and land from Flint Hills Resources (FHR); adjacent to Enbridge Ingleside Energy Centre (EIEC) terminal for ~US$0.2 billion.
- Sanctioned ~US$0.2 billion of offshore pipelines to service Shell and Equinor's sanctioned Sparta development.
"Global demand for affordable, reliable and sustainable energy continues to rise and North America has a critical role to play. Abundant, cost-competitive and sustainable conventional and lower carbon energy sources provide people with the energy they need while supporting countries and communities in meeting global emission targets. At Enbridge, we're building out our integrated infrastructure super systems, to enable the continued delivery of energy in a planet-friendly way, everywhere people need it," said Greg Ebel, President and CEO of Enbridge.
Read the article online at: https://www.tanksterminals.com/terminals/02052024/enbridge-provides-an-update-on-strategic-priorities/
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