We expect to exit this year with some excess light capacity, but that should fill up in the first part of 2021. On the next slide, we'll wrap up the business review with renewables. So the takeaway here is that although 2020 has been a tough year for our sector in the industry, we're managing it well here at Enbridge. Happy to hear that everyone is safe and well. But if you look at the regions that especially our pipelines serve, we have a great partnership with renewables. The hybrid market is seldomly fully constructive, so we seized the opportunity at a good tax-deductible coupon. We'll be prioritizing calls from the investment community, so if you're a member of the media, please direct your questions to our communications team, who will be happy to respond. However, after they reviewed it and received public comments, they decided to hold what they call a contested case to finalize the permit. Barring another shutdown of the economy, we expect mainline throughput closer to where we were in Q1 by year-end. Thank you. Dai-Chung Yu Enbridge Inc. - Executive VP & President of Liquids Pipelines . We have reached our time limit and are not able to take any further questions at this time. So that's sort of how we're looking at it. Enbridge Q2 earnings slip as revenues plunge 40 per cent due to COVID aftermath. And I think we'll be in good shape so that when we put in some amounts to test things out, which I think is appropriate for us, then we'll have pretty good confidence around that. But if somebody is presenting compelling value and you've got some good reinvestment opportunities, then we'd have to look at that. And we believe that regulatory process will take about 12 to 18 months to complete. But when you really dig deeper into it, the fact patterns are, in fact, quite different, where we have been in constant negotiation with the allottees on our easement, and we have not seen the Bureau of Indian Affairs get involved in our pipeline situation with the Bad River Band. It's probably in the $6.5 billion range annually. Colin will take you through the results and full-year outlook, and I'll come back with a midyear checkpoint on the priorities. But on behalf of Enbridge, and I know many of you on the phone as well, we wish John and his family the very best in the future. Otherwise, if you're not really doing much to add any value at all. The fact is that low cost, reliable energy underpins the global economic engine, and it's going to be critical to the recovery. Our leverage remains firmly in BBB+ territory and continues to trend in 2020 well within our 4.5 times to five times target range. What are the thoughts around extending the maturity profile as you're in the market right now to sort of take advantage of it and capitalize on the current rate environment? US/CANADA Participant Toll-Free Dial-In Number: (877) 930-8043 |
And that's where I think we're going to be really strong, whether it's liquids, whether it's natural gas, utility or transmission. And just to finish, so Al, you mentioned the energy transition earlier. This page has been added to your list of favorites. So we want to make sure we're not messing with that. That was very helpful. I think it's the latter. Enbridge (NYSE:ENB)Q2 2020 Earnings CallJul 29, 2020, 9:00 a.m. Yes. But at this point, we're pretty happy with the asset base. We're participating in it, and we have been extending our maturity through this process as well. The three French projects, by the way, come with long-term PPAs and some added protections, which are unique here in these types of projects for wind variability. Lastly, on the remarks today, and before we get to the Q&A, many of you know John Whelen, our chief development officer and, previous to that, CFO. So we'll have a little more next year. On the capital bucket, we have organic opportunities in the hopper, which we've talked to you about before, and the teams are working on. Cynthia and the team are making great progress on synergy capture from the combination of the 2 Ontario utilities. OK. But I think people are starting to get a bit of that story, I think. Despite the more than 2% pop as of writing, Enbridge stock still offers a juicy yield of close to 7.5%. Thanks for that question. So although generally, the market is less growthy going forward, I think that's a reality. And if you can be the most competitive system into each 1 of these markets, the transition is happening, but certainly not going to happen over a short period of time. ET. Line 3 is kind of delayed at this point right now. In the last three years, we've put three large offshore wind farms into service, totaling about a gigawatt of capacity. As you can see by the chart, our resilient pipeline utility model has delivered predictable cash flows and strong dividend growth through all cycles, and that's showing up again today. Do the numbers hold clues to what lies ahead for the stock? And recall as well, going back to Line 3, there's a very big opportunity for tribes in Minnesota as well. All right. I just asked because there's a pipeline in the Bakken that was ordered to shut down earlier this month where what seems to be similar circumstances, so just curious on your thoughts there. And on the $1 billion T-South project, construction is progressing well. As you know, we recently won projects to feed LNG facilities on the Gulf. For us, what this does is assure we earn a reasonable return, particularly as we enhance and modernize the system. Enbridge Q2 earnings slip as revenues plunge 40 per cent due to COVID aftermath July 29, 2020 The Canadian Press CALGARY — Enbridge Inc. is reporting that its net income slipped to $1.65 billion in the second quarter on a 40 per cent drop in revenues due to lower crude oil prices caused by the COVID-19 pandemic and OPEC price war. Others are waiting to see how the competing pipelines play out. They are positive. But as you point out, the supply chains are not as developed yet and, frankly, nor the regulatory environments as developed as Europe. The in-corridor expansions, extensions, modernizations, executable projects. I mean, we have big businesses. We've worked hard over the years at strengthening our business and, in the past few months, have taken further actions to bolster the business. And following the call, investor relations is available to address any follow-up questions you may have. We've got a world-class project execution capability, completing $30 billion of projects since 2016. So we wouldn't want to see them necessarily just be sold off. But if there was ever a time to have a low-risk business model, it's now. All of this impacts people, thousands of refining and related skill trades, fuel shortages across the state and, of course, higher consumer energy prices. Looking ahead, we've seen differentials tightening, and most of the contango opportunity is now behind us, so second-half results are looking much less robust in this segment. So I think, Jeremy, I think as he's saying, we can mitigate, and we should be in generally in good shape. So those are the kind of things that we would look at as priorities. And I think we've got a pretty good head start on this. The midpoint of $4.65 suggests that its 2020 payout ratio would be about 70%. So I think we're in pretty good shape to be able to offset a lot of the production coming out of the Bakken. I think we believe the worst is behind us, but we remain cautiously optimistic on mainline throughput over the rest of the year. And with stabilized prices, we've seen heavy volumes come back, actually, if you look at July, heavy capacity is being fully utilized again. You've got a -- there's certainly energy transition in play here. Is it green hydrogen? I guess linked to that, which was the other part of your question, had to do with buybacks. So the Midwest and Gulf Coast refineries, as everyone knows, are the most complex in terms of what they process, so as demand came back, they ramped up quicker. You can see it -- probably the simplest example is just our cost pursuit. It's probably two fronts. So we think we're pretty solid on each of the businesses for decades to come. So we're all acutely aware of how the energy landscape is changing the long-term energy transition for one; opposition to what we do in a challenging regulatory and permitting environment, to say the least, that's been compounded, of course, by a COVID-induced economic contraction that's severely disrupting energy markets. How does capex shift around in terms of the delay in terms -- and as well as the announcements? On that CAD 1 billion, Shneur, CAD 300 million of that, let's call it conventional utility capital, that's basically reinforcements. Enbridge Inc. 2020 Second-Quarter Financial Results. Moving now to our gas utility. And indeed, we've been capitalizing on that trend ourselves. I have a couple of questions about capital allocation that you partly touched on in your prepared remarks. Perhaps the most important element of this and often forgotten is that contracting is going to support higher netbacks for producers and maximize provincial revenues that's because WCSB crude prices offers the marginal transportation cost to move for the last barrel in the basin and contracting ensures that producers and the province benefit from the lowest marginal transportation cost in all scenarios. Overall, our financial position is relatively strong. I mean, just given the comments before on capital allocation and how we look at future investment, in terms of the asset mix today, I think when we repositioned the asset mix to almost 50-50, I'm going to call it between natural gas and liquids businesses with a little bit in there for renewables. And then secondly, just a follow-up on the capital allocation question. The DNR and the U.S. Army Corps are continuing to work their permit in parallel. Enbridge (ENB) delivered earnings and revenue surprises of 0.00% and -32.34%, respectively, for the quarter ended June 2020. It's serving us well, and I think it's a point of differentiation. The firm had revenue of $9.11 billion for the quarter. And that's going to take some time to work through. That's already been determined by the state's own study. It's extremely expensive. Diesel improved a bit, and jet fuel, though, is still way off as personal and business travel are low. Event downloads Annual Meeting of Shareholders, NYSE Bell Ringing Ceremony Investment Community Presentation, Enbridge Inc. Fourth Quarter & Year End 2016 Financial Results, Enbridge Inc. & Enbridge Income Fund Holdings Inc. Third Quarter 2016 Financial Results, Enbridge and Spectra Combine to Create North America’s Premier Energy Infrastructure Company, Enbridge Inc. & Enbridge Income Fund Holdings Inc. Second Quarter 2016 Financial Results, Enbridge Inc. Thank you. So we're doing a lot of work on contingency planning, should the courts shut down the DAPL pipeline. Good morning. Enbridge Inc. (TSX, NYSE:ENB) is a Canadian based energy infrastructure company with assets of $164.6B as Jun-30-2020 compared to $86B as of Dec-31-2016. Our 2020 needs have now been fully funded, and we've even prefunded some of our 2021 capital requirements. Two main positive drivers here. So maybe you can, in your answer, specifically address what influence it's having on hurdle rates and project selection but also the relative attractiveness of other -- and perhaps even new parts of the value chain you might consider or other jurisdictions outside of North America. Appreciate the color. I think Colin will correct me. All right. We would certainly not hesitate if we saw something in the single asset category that made sense in either of those three businesses and in a lot of the power business in there. It's a good one in this environment, and then Colin can fill in. At the same time, you've announced a couple of new projects that you've secured. Now this part of the equation is zero or what we call minimal capital intensity at Enbridge, which is what we like to see. Of course, that reflects some Line 3 spending shift into the first half of 2021 offset by a stronger U.S. dollar and some announced project wins. Enbridge Q2 earnings slip as revenues plunge 40 per cent due to COVID aftermath The Canadian Press August 4, 2020 The Calgary-based energy company says it earned 82 cents per share for the three months ended June 30, down from 86 cents per share or $1.74 billion a year earlier. Just wanted to touch on Enbridge's appetite for, I guess, maybe more green investments over time. Thank you. Joining me this morning are Al Monaco, president and chief executive officer; Colin Gruending, executive vice president and chief financial officer; Vern Yu, executive vice president, liquids pipelines; and Bill Yardley, executive vice president, gas transmission and midstream. He's been a key leader at Enbridge over many years, bringing his financial expertise and judgment to our growth and our evolution, and someone who has really exemplified our values and approach to the business as a company. And that's really what I think will be the key value driver. It sounds like a big number, and it is. This quarter, we sanctioned another $300 million in organic projects for '21, '22 in service. What stood out to me during the quarter were the following items: we had strong reliable performance from a number of our businesses: gas, transmission, our utility and the power business, all performed well, materially unaffected by the COVID disruption. Our next question comes from the line of Rob Hope from Scotiabank. Robert Kwan -- RBC Capital Markets -- Analyst. So that's how we're looking at this at a high level, but if I haven't got into the crux of what you're getting at, let me know. We're managing the near-term spend on those, but we will be ready to go when those facilities are sanctioned coming up. We have a couple of ways to get Bakken crude into our system. So for example, today, if you're entering a new build, you'd have to say whether or not you think scheduling costs will come in as you predict it. It's always something we contemplate and look at whenever you have a potential administration change. Your question, please. Jonathan, you may begin. July 2020. I think we've done the repositioning we need to do. And maybe as a follow-up question. Enbridge Inc. ENB reported second-quarter 2020 earnings per share of 41 cents, in line with the Zacks Consensus Estimate, aided by higher contributions … Jonathan Morgan -- Vice President, Investor Relations. In Q2, Western Canadian supply was off about 1.1 million barrels per day. However, Enbridge’s adjusted EBITDA increased 3% from the previous year’s quarter, as … But certainly, I suppose it could be an opportunity in the future, but you have to really make sure that the country risk and the other factors within the risk profile fit with the rest of the business model. $5.5 billion of term debt has been issued so far this year at attractive rates, both underlying rates and reasonable credit spreads. ET (10:30 a.m. MT), Friday, November 2, 2018 7:00 am MT / 9:00 am ET, Friday, August 3, 2018 7:00 am MT / 9:00 am ET, Thursday, May 17, 2018 5:00 am MT / 7:00 am ET, For Participants:
We responded well operationally, keeping our people safe as well, and our resiliency paid off, so we had a good start to the year, as Colin just went through. And in order to answer as many questions as possible we'll be limiting questions to one plus a single follow-up, as necessary. Our next question comes from the line of Shneur Gershuni from UBS. And by the way, as a side note on this, indigenous affiliated companies have won $30 million in business so far on this project. And that's shown in the gray circles here throughout North America. Enbridge took advantage of strong debt markets in Q2 to raise $6.9 billion in capital at attractive rates. So anyway, that's the broad answer to your question. View the presentation from our latest earnings. Hey, good morning, and thank you for your comments this morning. Last month, Enbridge confirmed 800 employees had voluntarily left the company as part of program announced in May to reduce 2020 costs by $300 million through measures including salary cuts and voluntary staff reductions. On Line 3, while the Pollution Control Agency's contested case has delayed things a bit, I think we're coming to the end of this process now. And that takes a lot of engineering to look at, but you're right, the network and this, decades from now, would be well-positioned if hydrogen transition from that kind of shiny object that is potentially a solution to a reality. Yes. I'm not saying they're bad. Light crude demand in Eastern Canada still lags a bit, though, which is why we have some space left on our light lines, but we expect this to increase as Ontario and Québec continue to reopen. Upstream effects of all this into Western Canada and our financial position on slide 22 shows well the resiliency the... 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