Enbridge’s 2013 Strategic Plan, unveiled in October, provides a five-year road map to the future, and sets out the various actions required for Enbridge to achieve its vision of becoming the leading energy delivery company in North America.
Global energy demand will continue to grow, driven by emerging markets such as China and India, while new technology is now driving significant growth in North American oil and gas production – creating significant price dislocations for North American product. These dislocations call for new energy infrastructure to connect new sources of supply with appropriate markets – and Enbridge is well-positioned to create that infrastructure and open up access to new markets, both in North America and offshore.
At the same time, public expectations surrounding energy infrastructure development have evolved dramatically in a short period of time. Demonstrating the need or the economic benefits of a project, and gaining regulatory approval, is not enough to attain public support; the public wants energy companies to demonstrate the safety and environmental protection measures included in their projects. The ultimate goal is sustainable development – and Enbridge aims to secure the No. 1 industry position rankings in system safety and reliability, environmental protection, and worker safety by 2015.
$36-Billion in Growth Capital
Enbridge’s enterprise-wide growth capital program includes a $36-billion inventory of commercially secured projects, as of March 2014, to drive the company’s near-term strategic priorities and initiatives.
Enbridge also has $7-billion in additional potential capital projects, which may further extend the company’s growth beyond its five-year plan.
Expected Outcome: 10-12% EPS Average Annual Growth
The 2013 Strategic Plan portrays a very favorable outcome for Enbridge and its investors over the next five years, with an anticipated average annual EPS (earnings per share) growth rate of 10 to 12 per cent.
The vast majority of this growth will be provided by existing businesses and secured growth projects, and is not expected to depend on the assumed additional opportunities to be secured.
Enbridge’s Strategic Priorities
1) Commitment to Safety and Operational Reliability
- Safety and operational reliability remain Enbridge’s No. 1 priority
- Over the past two years, Enbridge has developed and implemented its Operational Risk Management (ORM) Program, which includes facets of integrity management, leak detection capability and control systems, public safety and environmental protection, incident response capacity, third-party damage avoidance and detection, and employee and contractor occupational safety
- Enbridge will continue to drive relentlessly toward avoidance and pre-emption of incidents, strive to exceed regulatory requirements, and continually advance its safety culture and operational reliability performance
Delivery of Enbridge’s growing slate of commercially secured projects is critical. Successful execution will require:
- Focusing on project management in order to safely deliver these projects on time and on budget, while attaining the highest standards for safety, quality, customer satisfaction, and environmental and regulatory compliance
- Preserving financing strength and flexibility. Enbridge’s projected capital spending program is the largest in company history; optimal capital market execution remains important
3) Securing the Longer-Term Future
- Strengthening core business. This may include: securing and extending the growth of Enbridge’s liquids pipelines business beyond 2017; building competitive advantage and exploring new opportunities in Enbridge’s gas pipelines and processing business; and enhancing low-risk, stable earnings growth in Enbridge’s natural gas distribution business
- Developing new platforms for growth and diversification. This may include green power, gas-fired generation, power transmission, and liquefied natural gas, as well as exploring international opportunities to invest in select energy markets
4) Maintaining the Foundation
Achieving success means Enbridge needs to maintain a strong organizational and cultural foundation. This will require:
- Upholding Enbridge values of Safety, Integrity and Respect
- Maintaining social license to operate by pursuing a number of strategies focused on openness and transparency, effective communications, and the solidification of relationships with key stakeholders
- Retaining, attracting, and developing our people in order to keep our employee retention and engagement levels high, and remain on “top employer” lists across North America