Our unique investment proposition is based on an overarching strategy that brings together three desirable characteristics: Growth, Income and Reliability.
This combination has served the company and our shareholders well. Our long history of successfully implementing this strategy is evidenced by our sector leading total shareholder return, whether measured on a one-year, 10-year or even a 55-year basis.
We expect to continue to build on our strong track record of growth through the middle of this decade, with a full slate of potential investment opportunities that fit within our reliable business model.
Our Core Business
Energy matters. Society needs a secure and reliable supply of energy. We need energy to heat and light our homes, businesses, schools and hospitals. We need energy to move people, goods and information. Energy literally drives economies around the world.
As North America moves towards energy self-sufficiency, through growing production of oil, gas and renewable energy, there is a need to develop new infrastructure to deliver the energy to where people need it.
Enbridge is a North American leader in delivering energy. As a transporter of energy, we operate in Canada and the United States, the world’s largest and most sophisticated crude oil and liquids transportation system. We ship more than 2 million barrels of crude oil and petroleum products every day. Our natural gas gathering and transmission system spans the continent, from Northern B.C. to the ultra-deep water of the Gulf of Mexico, moving billions of cubic feet of gas per day. We also own and operate Canada’s largest natural gas distribution company and provide distribution services in Ontario, Quebec, New Brunswick, and New York State. In addition, as a clean energy generator, we are expanding our interests in renewable and green energy technologies, including wind, solar and geothermal energy, as well as hybrid fuel cells.
Our growth is driven by the ongoing need for new energy infrastructure development. In 2011 alone, we secured $8 billion in new growth projects across all our business segments. As a result, by year-end we had $13 billion in secured growth projects, all of which we expect will be in service by 2015. These projects form part of the $48 billion in new opportunities that we have identified for development between 2011 and 2020.
Earnings per share have grown steadily over time at an attractive rate. Further, given our secured project inventory, we expect to see that growth rate continue through at least the middle of the decade. We are new very confident in achieving a 10% annual average adjusted EPS growth rate through 2015.
- 11% EPS growth in 2011
- 13% EPS growth in 2010
- 25% EPS growth in 2009
Along with higher EPS, our healthy slate of growth projects is expected to drive an even greater growth in cash flow. Our ability to generate free cash flow adds further value to our shareholders by allowing the company to increasingly fund its growth projects internally as well as provide flexibility for our dividend policy.
Our shareholders place a great deal of value on the growing dividend that we provide, especially in the current low-interest rate environment. We have increased the dividend in each of the last 17 years, grown the dividend by more than 11% a year over the past decade, and we have never cut the dividend in our almost 60-year history. In 2010, 2011 and again in 2012, we increased the dividend by 15%. Looking ahead, we expect dividend growth will continue to track or exceed our strong EPS growth rate.
Our business model produces adjusted earnings you can count on. This is driven by commercial agreements, risk management frameworks, and our overall philosophy and approach to business.
- 90% of our revenues are generated from investment grade counterparties
- Less than 5% of our earnings are exposed to commodity price, interest rate and foreign exchange risks