Economic Scorecard
| Objective | 2006 Result | 2007 Result | Target | Risks |
| Realize above industry-average annual adjusted earnings per share1 growth. | $1.74, up 9.4 per cent from 2005. | $1.79, up 2.9 per cent from 2006. | 2008 – $1.85 to $1.952. | Enbridge combines a low-risk profile with excellent growth opportunities. However, our business activities are subject to various risks. For details about Enbridge’s risk management practices and principal risks, please see the Risk Management section of Enbridge Inc.’s 2007 Annual Report. |
| Deliver superior annual dividend growth (payout ratio of 60 to 70 per cent3 of adjusted operating earnings). | $1.15 per common share. | $1.23 per common share. | 2008 – $1.32 per common share. | |
| Deliver strong total shareholder return.4 | 14.3% | Approximately 3%.5 | Ongoing: Consistently deliver solid income growth for shareholders. |
- Based on adjusted operating earnings, which represent earnings applicable to common shareholders adjusted for significant non-operating factors and variances.
- Initial guidance provided by Enbridge on February 6, 2008, and repeated on May 7, 2008, was $1.80 to $1.90. Guidance was increased on July 31, 2008, to $1.85 to $1.95.
- This target was approved by Enbridge’s Board of Directors in November 2005 and represents an increase from the previous 50 per cent to 60 per cent.
- Represents total cash dividends declared plus common share price appreciation.
- Total shareholder return in 2007 was 3.1 per cent due to Enbridge’s investments in growth projects. Total shareholder return has averaged 13 per cent over the past 10 years and more than 13 per cent over the past 54 years.
We remain focused on our main priorities as a business – to be North America’s leading energy delivery company and to generate long-term value for our investors. These priorities require that we deliver shareholder value and maintain profitability while performing in a socially and environmentally responsible way.
We have never been more confident about our ability to create and grow shareholder value. Our investment proposition is compelling. Through our low-risk business model that allows us to provide steady income and achieve consistent visible growth, we are delivering solid shareholder returns and will continue to do so for many years.
Our track record for total shareholder return is among the best of any company in North America. Over the past decade, Enbridge shareholders have enjoyed an average annual total return of 13 per cent, which is on par with our 54-year annual average return of over 13 per cent.
In the past half century, our dividend has grown, on average, by almost 10 per cent annually. In early 2008, we increased our dividend for the 13th consecutive year. Currently we aim to pay out 60 per cent to 70 per cent of adjusted operating earnings as dividends.
We expect earnings to grow at an annual compounded rate of 10 per cent over the next four years, which is the highest in our industry. Between 2008 and 2011, we will work hard to bring into service $12 billion of new Liquids Pipelines projects, all of which are commercially secured. These projects have contractual terms which support or enhance Enbridge’s low-risk business profile.
We have an additional $15 billion of potential projects in development that we believe will start to come into service after 2011. Our visible expansion program will result in solid growth in earnings, cash flow and dividends. Over the next four years, we expect that our Liquids Pipelines expansions alone will generate average annual growth of 10 per cent in adjusted operating earnings per Enbridge Inc. common share.
We intend to continue as we started 54 years ago – consistently delivering solid income growth for shareholders.
For more details, please refer to Enbridge Inc.’s 2007 Annual Report, which is available on www.enbridge.com, and to Enbridge Energy Partners’ 2007 Annual Review, which is available at www.enbridgeus.com.