Enbridge Inc. 2010 Annual Report
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ENBRIDGE INC. 2010 ANNUAL REPORT CHICAGO, IL Energy is essential. It powers our society and Enbridge common shares trade Enbridge Inc. www.enbridge.com ecoeconomn y. Itt movm ese peop ple, on the Toronto Stock Exchange 3000, 425 – 1st Street S.W. googogo ds andd innforfoormata ion. It fuelu s in Canada and on the New York Calgary, Alberta, Canada Superior our caars,rsr heheats ouurrh homemes and Toronto Stock Exchange in the United T2P 3L8 ENBRIDGE INC. ligights our neighbob urhu oodods. Buffalo States under the trading Telephone: 403.231.3900 2010 ANNUAL REPORT EnbEbrididgee deliverss thee ene ergrggy symbol ENB. Facsimile: 403.231.3920 NorN th AmeAm riricansnss neeed—e sasafely, Wood River Toll free: 800.481.2804 releliabia lyy andd effificf ienentlyl . 2 Assets 12 Discipline 18 Values 24 Operations 26 Letter to Shareholders 33 Corporate Governance Shareholder Inquiries 2011 Enbridge Inc. Common Share Dividends 35 Management’s Discussion and Analysis If you have inquiries regarding the following: 1st Q 2nd Q 3rd Q 4th Q 107 Consolidated Financial Statements • Dividend Reinvestment and Share Purchase Plan Dividend $0.49 $– $– $– 115 Notes to the Consolidated Financial Statements • change of address Payment date Mar. 1 Jun. 1 Sep. 1 Dec. 1 • share transfer Record date 1 Feb. 15 May 13 Aug. 15 Nov. 15 • lost certificates SPP deadline 2 Feb. 22 May 25 Aug. 25 Nov. 24 • dividends 3 • duplicate mailings DRIP enrollment Feb. 8 May 6 Aug. 8 Nov. 8 1 Dividend Record Dates for Common Shares are generally February please contact the registrar and transfer agent—CIBC 15, May 15, August 15 and November 15 in each year unless the Mellon Trust Company in Canada or BNY Mellon 15th falls on a Saturday or Sunday. Shareowner Services in the United States. 2 The Share Purchase Plan Cut-off Date is fi ve business days prior to the Dividend Payment Date. 3 The Dividend Reinvestment Program Enrollment Cut-off Date is fi ve Other Investor Inquiries business days prior to the Dividend Record Date. If you have inquiries regarding the following: • additional financial or statistical information • industry and company developments • latest news releases or investor presentations * ENBRIDGE, the ENBRIDGE LOGO, the ENBRIDGE ENERGY SPIRAL • any other investment-related inquiries and the tagline Where energy meets people are trademarks or registered trademarks of Enbridge Inc. in Canada and other countries. please contact Enbridge Investor Relations or visit Enbridge’s website at www.enbridge.com. Enbridge Inc., a Canadian company, is a North American leader in delivering energy and one of the Investor Relations Global 100 Most Sustainable Corporations. As a Enbridge Inc. transporter of energy, Enbridge operates, in Canada 3000, 425 – 1st Street S.W. and the U.S., 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 midstream businesses, and is expanding its interests Annual Meeting in renewable and alternative energy technologies The Annual Meeting of Shareholders will be held in the including wind and solar energy, hybrid fuel cells, Ballroom of the Metropolitan Centre, Calgary, Alberta at geothermal and carbon dioxide sequestration. As 1:30 p.m. MST on Wednesday, May 11, 2011. A live a distributor of energy, Enbridge owns and operates audio webcast of the meeting will be available at Canada’s largest natural gas distribution company, www.enbridge.com and will be archived on the site for and provides distribution services in Ontario, Quebec, Designed and produced by Karo Group. Printed in Canada Blanchette Press. approximately one year. Webcast details will be available New Brunswick and New York State. Enbridge employs on the Company’s website closer to the meeting date. approximately 6,400 people, primarily in Canada and the U.S. ranked as one of Canada’s Greenest Employers, Le présent document est disponible en français. and one of the Top 100 Companies to Work for in Canada. Enbridge’s common shares trade on the Toronto and New York stock exchanges under the symbol ENB. www.enbridge.com From the company you count on. For the energy to power economic growth, you count on us. For the natural gas that keeps us warm and cooks our food, you count on us. For the green energy that delivers environmental benefi ts, you count on us. For the peace of mind of a solid investment return, you count on us. It’s what we’ve done for decades, and you can count on Enbridge to continue to deliver. REGINA, SK Through our pipelines to refineries. Through our natural gas Fort McMurray distribution networks to Edmonton homes, offices and factories. From our renewable energy Calgary Winnipeg assets to the electrical grid—every second of every day, Enbridge delivers the energy that is integral to our daily lives. 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 40 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. FORT MCMURRAY, AB Our storage terminal located in the heart of Canada’s oil sands region is part of the critical infrastructure we provide to oil sands producers. As the leading pipeline operator in Edmonton the Fort McMurray to Edmonton/ Hardisty corridor, we offer our Calgary Regina customers a wide range of competitive Seattle transportation options to reach new markets throughout North America. 2 ENBRIDGE INC. 2010 ANNUAL REPORT Our assets connect North Americans with the energy they need. Enbridge’s continent-wide energy delivery infrastructure connects secure and reliable sources of energy—crude oil, refi ned products, natural gas and renewable electricity—to key North American markets. We deliver energy safely and reliably from a number of key continental energy resource developments, including Canada’s oil sands region, the Bakken oil region, major gas plays in both Canada and the U.S., and from our expanding Green Energy assets. LIQUIDS PIPELINES* GAS PIPELINES, GAS DISTRIBUTION* GREEN ENERGY* Our mainline system PROCESSING AND We distribute natural We have a diversified is the world’s longest, ENERGY SERVICES* gas to a growing base of and growing portfolio most complex crude oil Our network is serving residential, commercial of renewable and and liquids pipeline North America’s prolific and industrial customers alternative energy system, and the largest gas-producing regions in Ontario, Quebec, projects, including conduit of oil into the and many of the New Brunswick, Vermont wind, solar, geothermal, United States. deepwater platforms and New York State. waste heat recovery in the Gulf of Mexico. and fuel cells. * Includes assets held directly and indirectly through Sponsored Investments and Corporate investments described in Management’s Discussion and Analysis. ASSETS 3 EDMONTON, AB Enbridge’s Edmonton Terminal is the starting point of our mainline system. Comprising six adjacent pipelines with combined capacity of 2.5 million barrels per day, the system transports approximately 65% of western Canadian crude oil exports. 4 ENBRIDGE INC. 2010 ANNUAL REPORT We are growing our network to help oil producers reach new markets. Enbridge’s pipeline systems are located in strategically important geographical areas, giving us an unparalleled ability to expand and extend our energy delivery networks throughout North America. We are the leading pipeline operator in both Canada’s oil sands region, the second largest resource play in the world with an estimated 170 billion barrels of proven recoverable reserves, and the rapidly growing Bakken formation in Canada and the United States. We are currently expanding our pipeline capacity in both regions. BILLION Total number of barrel miles shipped on the Enbridge Mainline system in 2010. One barrel of oil, transported one mile, equals one barrel-mile. In 2010 Enbridge delivered an average of 2.2 million barrels per day along its Mainline system. 399Enbridge delivers approximately 13% of Fort St. John the United States’ daily crude oil imports. Fort McMurray % DAILY U.S. Calgary Regina CRUDE OIL 13 IMPORTS ASSETS 5 6 ENBRIDGE INC. 2010 ANNUAL REPORT We link major sources of natural gas supply to consumers. All of our gas transportation and processing businesses are located in the right place to serve growing production and meet growing demand for this low-cost, environmentally attractive source of energy. ONSHORE PIPELINES OFFSHORE PIPELINES PROCESSING & ENERGY SERVICES The Alliance and Vector pipelines With 13 natural gas gathering Enbridge Energy Partners is one transport up to 1.6 billion cubic pipelines and one oil pipeline of the largest processors in Texas, feet per day of natural gas from in five major corridors in the handling about 13% of total western Canada to Midwestern Gulf of Mexico, Enbridge is one production in the state with 65% U.S. markets and eastern Canada. of the largest operators in the of its volumes from unconventional deepwater Gulf of Mexico. sources such as shales and tight We are well positioned to capture sands. Aux Sable, with operations new opportunities in both gas in Canada and the U.S., has a gathering and crude oil pipelines significant presence in the North serving the region’s energy American gas processing business. resource developments. We transport about Tulsa half of all the deepwater natural % gas production in New Orleans Houston the Gulf of Mexico.