Enbridge Inc. 2014 Annual Report Life Takes Energy™ at Enbridge, We Are Extremely Proud of the Work We Do
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Enbridge Inc. 2014 Annual Report Life Takes Energy™ At Enbridge, we are extremely proud of the work we do. For generations, Enbridge has made a meaningful difference in the way people are able to live their lives. And every day, in important ways, people count on us to make their lives better. We are looking ahead with confidence and purpose—connecting people to the energy they need to fuel their quality of life. Forward-Looking Information This Annual Report includes references to forward-looking information. By its nature this information applies certain assumptions and expectations about future outcomes, so we remind you it is subject to risks and uncertainties that affect every business, including ours. The more significant factors and risks that might affect future outcomes for Enbridge are listed and discussed in the “Forward-Looking Information” section on page 41 of this Annual Report and also in the risk sections of our public disclosure filings, including Management’s Discussion and Analysis, available on both the SEDAR and EDGAR systems at www.sedar.com and www.sec.gov/edgar.shtml, respectively. The Global 100 Most Sustainable Corporations in the World highlights global corporations that have been most proactive in managing environmental, social and governance issues. Enbridge was named to the Global 100 in 2010, 2011, 2012, 2013, 2014 and again in January 2015. In 2014, DJSI named Enbridge to both its World and North America index. The DJSI indices track the performance of large companies that lead the field in terms of sustainability, financial results, community relations and environmental stewardship. Enbridge is one of only three Canadian energy companies on the World Index; and is one of eight Canadian energy companies on the North America Index. Le présent document est disponible en français. “In a volatile energy environment, Enbridge remains keenly focused on the safety and reliability of our operations, opening access to the best markets for our customers, and delivering superior returns to our shareholders.” —Al Monaco President & CEO, Enbridge Inc. Contents Enbridge Overview 2 Growth and Execution 6 Extending and Diversifying Growth 16 Superior Shareholder Returns 22 Letter to Shareholders 26 Corporate Governance 31 2014 Awards and Recognition 32 1Enbridge is making things happen— to enable economic growth and fuel people’s quality of life Everyone expects more from energy companies, and that’s the way it should be. We take our responsibilities very seriously. That’s why we’re investing billions of dollars in all types of energy infrastructure in undertaking the largest capital growth program in our company’s history to address North America’s energy challenges. And it’s why we are focused on connecting people with the energy that is essential to their daily lives and at the same time achieving the benefits of economic development in a safe and sustainable way. 2 Enbridge Inc. 2014 Annual Report 3 Enbridge Overview Who We Are and What We Value Most Enbridge exists to fuel people’s quality of life. We know that what we do matters—for our customers, shareholders, employees, communities and society—and we always aim to do things right. By transporting, distributing and generating As we grow, our vision is unchanged—to be energy, we play a critical role in enabling the leading energy delivery company in the economic well-being of North Americans. North America. We deliver energy to where it’s needed First and foremost, we’re striving for most—reliably, efficiently and with the industry leadership in safety and protection safety of our employees, the public and of the environment. the environment in mind. We’re also determined to be leaders in We’re growing today to help meet North value creation for our shareholders, Life Takes Energy America’s future energy needs. We’re customer service, developing our people currently developing $34 billion in and community investment. In 2014, we started speaking publicly about commercially secured energy infrastructure Enbridge’s purpose—fueling people’s quality Whether it is customers looking for energy projects—all with a planned in-service of life. Our brand reflects the important role delivery solutions, professionals considering date of 2018 or earlier—and we have energy and Enbridge play in the lives of all careers, investors looking for a solid $10 billion in additional potential capital North Americans—a role we’re proud of. return on their investment or landowners projects that could further extend For more information on our brand initiative, please visit considering who they can trust, we want our growth. enbridge.com/lifetakesenergy the name they think of to be Enbridge. 4 Enbridge Inc. What We Do If we step back and take a look at the big picture, Enbridge is about connecting people to the energy we all need. We connect people in three key ways: We Transport Energy We Distribute Energy We Generate Energy Whether oil and gas is moving across Our customers rely on the clean-burning We never stop thinking about the future town or across the country, no one is natural gas we deliver to cook their food of energy and sustainability, which is why better equipped to deliver this energy than and heat their homes, water and workplaces. we’re now a major and growing renewable Enbridge. We operate the world’s largest We own and operate Canada’s largest energy company in Canada and the United and most sophisticated transportation natural gas distribution company, providing States. Since our initial investment in 2002, network for crude oil and liquids. We also safe, reliable service to more than 2 million we’ve invested more than $4 billion in wind, have a growing ability to move natural residential, commercial and industrial solar, geothermal and waste-heat power gas and electricity. And we take pride customers in Ontario, Quebec, generation assets. in delivering it all with an outstanding New Brunswick and New York State. record of safety. Our Strategic Priorities 1 Focus on Safety and 2 Execute On Our Growth Operational Reliability Capital Program Our strategic plan charts our path to achieving our vision of being the leading Safety and operational reliability is—and The successful delivery of Enbridge’s energy delivery company in North America. always will be—our Number One priority. commercially secured energy projects is of critical importance to our customers, Achieving success means that we need Our goal is industry leadership in the our shareholders and society at large. to maintain a strong organizational and safety of our pipelines and protection We’re achieving that through highly cultural foundation. of the environment. effective project management and the This requires us to: We put safety and environmental protection execution of a funding program that ahead of everything else, aiming to preserves Enbridge’s financial strength uphold Enbridge’s values of Integrity, • not just meet regulations, but to achieve and flexibility. Safety and Respect in everything we world-class performance. We relentlessly Please see pages 6 – 15 for more information. do as a company and as employees; ensure the safety of our employees, • shape, promote and protect Enbridge’s contractors, communities, customers 3 Secure the Longer-Term Future reputation by focusing on strategies and partners. We invest in the newest As we execute on the growth projects centred around openness and in integrity management technology and we’ve already secured, we’re also transparency, effective communication advancements in leak detection. strengthening Enbridge’s longer-term and constructive relationships with By doing so, we believe we can all achieve future by extending the growth of our stakeholders across our operations; and the benefits of economic development in core businesses and developing new • attract, retain and develop our people. a responsible, sustainable way. platforms for growth and diversification. Please see pages 16 – 19 for more information. Please see pages 20 – 21 for more information. 2014 Annual Report 5 2We’re fully engaged in our $44-billion growth program— the largest in Enbridge’s history The dynamics of the energy business have changed dramatically over a very short period of time. A sizable increase in North American oil and gas supply is driving a transformation of the continent’s pipeline grid. And there is a shift happening in the energy supply mix towards both natural gas and renewables. We’re responding by building the infrastructure needed to deliver the energy North Americans rely on, every day. 6 Enbridge Inc. 2014 Annual Report 7 Growth and Execution We’re Connecting People to the Energy They Need We understand that the energy we deliver moves our economy and makes life more convenient for everyone. Today, we’re expanding our transportation, distribution and clean power generation infrastructure so that producers can connect to the best markets, refiners have access to reliable feedstock and North American consumers can always access energy, safely and reliably. The rapid growth in production in Where We’re Growing business. In addition to placing new projects many energy supply regions across North into service, we’re optimizing all our assets America—from Canada’s oil sands to Through our growth program, we’re helping to ensure they deliver the services expected unconventional shale oil and gas basins to transform the North American energy by our customers and the financial in the United States and Canada—has landscape. We’re building capacity so performance expected by our investors. created an acute demand for new producers can access new markets for Enbridge always looks at things from our transportation infrastructure. Canadian and U.S. crude oil. We’re expanding our network of natural gas assets to support customers’ point of view. What concerns And it’s clear that energy needs will continue growing supply regions across North America.