Our Economic Performance

FINANCIAL HIGHLIGHTS

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. This requires that we deliver shareholder value and maintain profitability while performing in a socially and environmentally responsible way.

Here are Enbridge's key financial highlights:

• Earnings were $645.3 million ($3.86 per common share), compared with $667.2 million ($4.03 per share) in 2003. Adjusted operating earnings were $508.4 million ($3.04 per share), 8% higher than the previous year, reflecting strong performance in all of our company's business segments.
• Total return to shareholders on the Toronto Stock Exchange (TSX) was 15.1%, while our total shareholder return was 24.6% on the New York Stock Exchange. We have delivered a total shareholder return of 22% per year over the last 10 years, compared with the TSX of 10% and the S&P 500 Index of 12% respectively over the same period. Over 50 years, Enbridge has provided a total shareholder return of more than 13%, compared with the TSX of about 9%.
• We strengthened our balance sheet, improving our debt-tocapitalization ratio from 66.3% at the end of 2003 to 65.1% at the end of 2004. This was achieved through earnings growth and debt repayment.

Investors and readers seeking more detailed information should refer to Enbridge's 2004 Annual Report.

EXPANDING OUR CONTINENTAL REACH

Enbridge is uniquely positioned for growth in North America, and is focused on moving energy from areas where we foresee increasing supply to areas of growing demand. In 2004, we made good progress in broadening access to continental markets for customers of our energy delivery systems:

Growing presence in Gulf of Mexico

At year-end, Enbridge acquired Shell Gas Transmission from Shell US Gas & Power LLC for $613 million US, adding gas gathering and transmission systems in the Gulf of Mexico to our U.S. Natural Gas Business. The assets are strategically positioned to transport increasing deepwater supply from the Gulf of Mexico - one of the few remaining gas growth plays in North America - and to access key infrastructure in the U.S. Northeast.

Expanding Ontario gas distribution system

Our Enbridge Gas Distribution infrastructure in Ontario serves Canada's fastest growing metropolitan area. In 2004, our natural gas franchise continued to grow, with Enbridge Gas Distribution adding about 56,000 new customers.

Supporting oil sands expansion

Our crude oil system is strategically positioned between Alberta's oil sands and the U.S. Midwest and Eastern Canadian markets and growing Asian markets. As oil sands producers develop expansion plans in northern Alberta, we are developing pipeline plans to connect the next wave of oil sands projects. In 2004, we signed preliminary agreements with two more oil sands projects - the sponsors of the Long Lake and Surmont projects - to build and operate facilities to ship production from these two facilities starting in 2006. We also advanced development of our Waupisoo Pipeline Project, a connecting pipeline that will bring oil sands shipments from Fort McMurray, Alberta to the Edmonton hub.

Our proposed Gateway project sets out our pipeline proposal to move 400,000 barrels per day of Alberta oil sands production from Edmonton to the west coast of British Columbia, where it would be shipped by tanker to China, other Asia-Pacific markets, and California. In 2004, we undertook discussions with Canadian producers and potential customers in Asia. In early 2005, Enbridge signed a memorandum of understanding with PetroChina International Company Limited to cooperate on development of the Gateway pipeline and supply of crude oil from Canada to China.

Acquiring U.S. liquids systems

We acquired the Mid-Continent liquids system of pipelines and storage terminals, adding a new geographic region to our pipeline system. We also announced our plans to proceed with the Spearhead project to transport crude oil from Chicago, Illinois to Cushing, Oklahoma. We filed applications for the project before year-end.

Promoting Alaska-Canada gas pipeline

With most recent estimates putting proved Alaskan natural gas reserves at over 35 trillion cubic feet, Alaska holds the key to one of the largest remaining natural gas reserves in North America. Enbridge is well positioned to play a leadership role in bringing this resource to market, with the Alliance and Vector gas pipelines being in a direct line between Alaskan gas and the best gas markets in the United States. In early 2004, Enbridge filed an application with the State of Alaska to start formal discussions with the state and producers toward building the Alaskan and Canadian portions of a much-needed Alaska gas pipeline.

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At Enbridge, there are no dividing lines between good business practices and being a responsible company — one that is ethical, is a steward of the environment, is safe, engages its stakeholders and is attentive to social needs.

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