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ENBRIDG ENBRIDGE INC. | 2009 ANNUAL REPORT E I NC. | 2009 ANNU A L REPO R T Enbridge common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the United States under the trading symbol ENB. WHERE eneRGY Enbridge Inc. 3000, 425 - 1st Street S.W. Meets peOple Calgary, Alberta, Canada T2P 3L8 Telephone: (403) 231-3900 Facsimile: (403) 231-3920 Toll free: (800) 481-2804 www.enbridge.com Letter to Shareholders 13 Corporate Governance 19 Assets & Opportunities 22 Executive Management Team 18 Corporate Social Responsibility 20 Financial Results 28 Shareholder Inquiries 2010 Enbridge Inc. Common Share Dividends On the cover: Enbridge Gas Distribution (EGD) is a If you have inquiries regarding the following: compelling part of our growth story. As Canada’s largest 1st Q 2nd Q 3rd Q 4th Q natural gas distribution company, EGD connects about • Dividend Reinvestment and Share Purchase Plan Dividend $0.425 $– $– $– 1.9 million residential, commercial and industrial • change of address Payment date Mar. 1 Jun. 1 Sep. 1 Dec. 1 customers to safe and environmentally preferable natural • share transfer Record date 1 Feb. 15 May 14 Aug. 13 Nov. 15 gas and adds as many as 45,000 new customers every year. • lost certificates Board declaration Dec. 2/09 May 4 July 27 Nov. 2 • dividends SPP deadline 3 • duplicate mailings Feb. 22 May 25 Aug. 25 Nov. 24 DRIP enrollment 2 Feb. 8 May 7 Aug. 6 Nov. 8 please contact the registrar and transfer agent—CIBC 1 Dividend Record Dates for Common Shares are generally Mellon Trust Company in Canada or BNY Mellon February 15, May 15, August 15 and November 15 in each year; Shareowner Services in the United States. however, record date is accelerated for weekends and adjusted to accommodate the Annual General Meeting date. Other Investor Inquiries 2 The Dividend Reinvestment Program Enrollment Cut-off Date is five If you have inquiries regarding the following: business days prior to the Dividend Record Date. 3 The Share Purchase Plan Cut-off Date is five business days prior • additional financial or statistical information to the Dividend Payment Date. • industry and company developments • latest news releases or investor presentations • any other investment-related inquiries * ENBRIDGE, the ENBRIDGE LOGO and the ENBRIDGE ENERGY SPIRAL please contact Enbridge Investor Relations or visit are trademarks or registered trademarks of Enbridge Inc. in Canada Enbridge’s website at www.enbridge.com. and other countries. Enbridge Inc., a Canadian company, is a North Investor Relations American leader in delivering energy. As a transporter Enbridge Inc. of energy, Enbridge operates, in Canada and the 3000, 425 –1st Street S.W. United States, the world’s longest crude oil and liquids Calgary, Alberta, Canada T2P 3L8 transportation system. The Company also has a growing Toll free: (800) 481-2804 involvement in the natural gas transmission and Annual Meeting midstream businesses and is expanding its interests The Annual Meeting of Shareholders will be held in the in renewable and green energy technologies, including Ballroom of the Metropolitan Centre, Calgary, Alberta at wind and solar energy, hybrid fuel cells and carbon 1:30 p.m. MST on Wednesday, May 5, 2010. A live dioxide sequestration. As a distributor of energy, audio webcast of the meeting will be available at Enbridge owns and operates Canada’s largest natural www.enbridge.com and will be archived on the site for gas distribution company and provides distribution approximately one year. Webcast details will be services in Ontario, Quebec, New Brunswick and available on the Company’s website closer to the New York State. Enbridge employs approximately meeting date. 6,000 people, primarily in Canada and the United States. Enbridge’s common shares trade on the Toronto Le présent document est disponible en français. and New York stock exchanges under the symbol ENB. www.enbridge.com Designed and produced by Karo Group Calgary. Printed in Canada by Blanchette Press. Affiliations, Partnerships and Accreditations 10% Cert no. SW-COC-002068 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” on page 35 of this annual report and also in the risk sections of our public disclosure filings, including Management’s Discussion & Analysis, available on both the SEDAR and EDGAR systems at www.sedar.com and www.sec.gov/edgar.shtml. WE’RE in THE EneRGY DeliVERY Business We deliver the crude oil that fuels the cars, buses and trucks that we drive. We deliver the natural gas that keeps us warm and cooks our food. We deliver the green energy that lights our businesses and powers our computers. We deliver the energy people need, in a safe, responsible and sustainable way. Enbridge’s Edmonton Terminal is the starting point of the mainline system, the world’s longest, most complex crude oil pipeline system with an export capacity of 2.1 million barrels. We transport 71% of western Canadian crude oil exports and satisfy 12% of the U.S.’s daily crude oil imports. WE ARE IN THE BUSINESS OF DELIVERING VALUE TO SHAREHOLDERS Three key features guide our success: Growth. Income. Reliability. It’s a powerful combination that has delivered success few companies can match. 1,500 Enbridge 13.5% 1,200 900 600 300 S&P/TSX 9.3% 1953 2009 Total Shareholder Return (Total Return Index March 1953 =1) Since inception, we have achieved a 13.5% average annual return to shareholders and we are focused on maintaining this track record. The global recession in 2009 devastated returns for most companies. Not Enbridge. With adjusted earnings per share growth of 25% in 2009, Enbridge delivered its best year ever, with strong performance across all its operations and new projects continuing to come into service on time and on budget. Value At the end of 2009, the value of Enbridge’s Shareholders An investment of $1.00 in Enbridge in equity market capitalization stood at $18.4 billion, March 1953 would have been worth approximately $1,300 one of the largest corporations in Canada. at the end of 2009. where Value meets SHAREHOldeRS High Growth $12 billion in new Liquids, Gas and Green Reliability Over the last 10 years—including the recent projects in service or expected to be in service 2008 to 2011; global recession and financial crisis—Enbridge has $5 billion secured post-2011; $30 billion in new opportunities. consistently grown earnings. where HIGH GROwtH meets Reliability AN INVESTMENT IN ENBRIDGE GROWS Reliably At Enbridge you can benefit from a reliable investment while still enjoying the steady growth few companies can match. In 2009, Enbridge achieved record adjusted earnings per share growth of 25%. 2.35 1.88 1.74 1.79 1.59 1.50 1.47 1.34 1.23 1.08 00 01 02 03 04 05 06 07 08 09 10e Adjusted Earnings per Share (Canadian dollars per share) The diversity of Enbridge’s businesses contributes to the reliability of our growth. Adjusted earnings per share are expected to grow by about 11% in 2010 and are targeted to grow by 10% per year on average into the second half of the decade. Enbridge’s large network of natural gas gathering, treating, processing and transmission facilities in the southern U.S. is well positioned for growth arising from the region’s prolific shale gas plays. AN INVESTMENT IN ENBRIDGE pays HANDSOME DIVIDENDS Our record is unmatched. The 15% dividend increase announced in December 2009 was our 15th consecutive annual increase. Over the last decade, Enbridge’s dividend growth has significantly outperformed that of our peers. We are focused on continuing this performance. 1.70 1.48 1.32 1.23 1.15 1.04 0.92 0.83 0.76 0.70 0.64 00 01 02 03 04 05 06 07 08 09 10e Growing Dividends (Canadian dollars per share) We aim to pay out 60 to 70% of our adjusted earnings as dividends to our investors. Dividends have increased, on average, approximately 10.3% annually over the last decade. Enbridge has delivered solid income growth for shareholders since its inception in 1953. Our shareholders can continue to count on solid income performance with dividends tracking earnings growth. Enbridge common shares trade on the Toronto and New York stock exchanges under the symbol ENB. Investment Enbridge common shares offer a competitive Income Enbridge has paid, and consistently increased common dividend yield of 3.5%, making it an attractive investment share dividends since inception in 1953. Based on estimated for income-oriented investors. 2010 dividends, the annual increase has averaged 10%. where INVestMent meets IncOME Positioning Our continent-wide energy delivery network is ideally Advantage Our technical expertise and track record for located to serve the newest and most prolific opportunities — oil developing projects on time, on budget and safely are distinct sands, shale gas and deepwater Gulf of Mexico. competitive advantages. where POsitiOninG meets ADVantaGE WE CONNECT Vital SOURCES OF supply WITH REFINERS AND CONSUMERS ACROSS THE CONTINENT We are ideally positioned for growth. Our existing infrastructure is located in strategic geographical locations, which puts us in a strong position to deliver energy to the fastest- growing North American and global markets. Fort McMurray Calgary Toronto Houston Supply sources Enbridge assets Geographic Reach Enbridge is expanding its far-reaching energy delivery network to help ensure North Americans always have access to secure and reliable sources of energy.