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Corporate Vision And Key Objective

Enbridge is an energy delivery company that transports natural gas and crude oil, which are used for many purposes, including to heat homes, power transportation systems and provide fuel and feedstock for industries. The Company's vision is to be North America's leading energy delivery company and its key objective is to generate superior shareholder value. The Company will deliver superior shareholder value through an investment proposition consisting of:

  • above industry average earnings per share growth;
  • a strong, secure risk-reward investment profile and financial position; and
  • a balanced combination of near term dividend income and superior dividend growth and capital appreciation.

Strategy

Enbridge's 2007 Strategic Plan consists of three broad strategies to generate superior shareholder value and position the Company for the energy environment of the future.

1. Expand Existing Core Businesses

Development and operation of oil and gas energy delivery assets is our primary strength and a core competency. Enbridge's existing systems are well positioned to take advantage of evolving hydrocarbon supply and demand fundamentals and, given the challenging environment for acquisitions, most of our core business growth in the near term is expected to come from organic project development largely driven by the oil sands transportation opportunity. Strategies for each core business are included in the sections to follow.

2. Focus on Operational Excellence, People and the Environment

Enbridge will continue its focus on operational excellence, including cost efficiency, safety and reliability, effective project management, customer relationships and effective stakeholder relations. Enbridge will also focus on effective strategies for recruitment, development and retention of employees in addition to reinforcing its strong reputation for environmental stewardship and community investment.

3. Develop New Platforms for Growth and Diversification

Enbridge believes it is also important to develop new growth platforms that complement the existing core asset base to sustain longer term growth and diversify the business. Initiatives include CO2 sequestration and transportation, liquefied natural gas (LNG) regasification, natural gas storage and new energy technologies.

To successfully pursue these strategies, the Company must mitigate certain business risks. These risks, and the Company's strategies for managing them, are described under Risk Management.

Enbridge's strategy is reviewed annually with direction from the Board of Directors. In light of its unprecedented Liquids Pipelines growth program, in 2007 the Company modified its strategy to simplify and somewhat narrow the Company's focus. The 2007 strategy de-emphasized International as a growth driver due to an extremely competitive environment that makes it difficult to find assets or new projects with acceptable risk/return profiles. Expansion is instead focused on the North American market.

The Company continually assesses ways to generate value for shareholders, including reviewing opportunities that may lead to acquisitions, dispositions or other strategic transactions, some of which may be material. Opportunities are screened, analyzed and must meet operating, strategic and financial benchmarks before being pursued.