Even in a period of uncertainty, Enbridge’s business model is built to withstand market turbulence, Enbridge Inc. president and CEO Al Monaco told an audience of investors and analysts on Wednesday in Toronto.
Mr. Monaco told the 17th annual Enbridge Day Investment Community Conference that Enbridge’s core businesses offer stability, minimal commodity exposure, and solid growth in all market conditions.
“We’re in turbulent times – low and volatile commodity prices, the threat of higher interest rates,” said Mr. Monaco. “Our business model is built to withstand and thrive in these stormy days.”
As part of 2015 Enbridge Day, company leaders rolled out Enbridge’s industry-leading capital growth program and reviewed the company’s large and diversified set of future growth opportunities.
For investors, that means an exceptional and transparent growth outlook through 2019 – with a 15 to 18 percent compound average growth rate in available cash flow from operations (ACFFO), and a 14 to 16 percent expected average annual dividend growth rate.
Significantly, Enbridge’s five-year capital growth program (from 2015 to 2019) now sits at $38 billion – of which $24 billion is commercially secured, and in execution – even after the company put $9 billion worth of projects into service during 2014.
“What we mean by secured is that these projects are supported by (financial) commitments, and they’re happening,” said Mr. Monaco. “We’ve built an enviable track record of delivering projects on time, and on budget, in a challenging environment. This is our competitive advantage.”
Enbridge Day is held on an annual basis to give current and potential Enbridge investors insight on our business fundamentals, key priorities, and financial outlook.
Wednesday’s 2015 Enbridge Day presentation included discussions of Enbridge’s plans to extend and diversify our growth beyond 2019, supported by a strong financial position, cash flow growth and funding flexibility. These plans include:
Long-term energy fundamentals support Enbridge’s growth. Global energy demand is expected to grow by 30 percent or more by 2040 – with a need for all supply sources to meet that demand, and a shift in supply mix toward natural gas and renewables.
North America can reap the benefits, given its tremendous unconventional oil and gas reserves, increasing competitiveness through technology, and capital markets to fund development – with an estimated $800-billion infrastructure opportunity set on the continent through 2035.
Given our significant and diversified assets, Enbridge is strategically positioned to capitalize on these trends.
As part of the 2015 Enbridge Day webcast on Wednesday morning, presentations were made by the company’s senior leaders in the areas of Liquids Pipelines; Gas Pipelines and Processing; Gas Distribution; Power, International & Energy Services; and Corporate Finance.
To read or download these presentations, click on the above links or visit the Investor Relations Events page at enbridge.com
The 2015 Enbridge Day investor conference continues Thursday, Oct. 8 in New York.