|
FORM
|
10-Q
|
☒
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
☐
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
ENBRIDGE INC
|
||
(Exact Name of Registrant as Specified in Its Charter)
|
Canada
|
|
98-0377957
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Shares
|
|
ENB
|
|
New York Stock Exchange
|
6.375% Fixed-to-Floating Rate Subordinated Notes Series 2018-B due 2078
|
|
ENBA
|
|
New York Stock Exchange
|
Large accelerated filer
|
x
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
|
|
|
|
|
|
Page
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|
PART I
|
|
Item 1.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
PART II
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
|
|
AOCI
|
Accumulated other comprehensive income/(loss)
|
Army Corps
|
United States Army Corps of Engineers
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
CER
|
The Canadian Regulator Act created the new Canada Energy Regulator and repealed the National Energy Board Act, on August 28, 2019
|
EBITDA
|
Earnings before interest, income taxes and depreciation and amortization
|
EEP
|
Enbridge Energy Partners, L.P.
|
Enbridge
|
Enbridge Inc.
|
Merger Transaction
|
Combination of Enbridge and Spectra Energy through a stock-for-stock merger transaction which closed on February 27, 2017
|
MNPUC
|
Minnesota Public Utilities Commission
|
MOLP
|
Midcoast Operating, L.P. and its subsidiaries
|
NGL
|
Natural gas liquids
|
OCI
|
Other comprehensive income/(loss)
|
VIE
|
Variable Interest Entity
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
(unaudited; millions of Canadian dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
Commodity sales
|
7,396
|
|
6,919
|
|
|
22,444
|
|
20,638
|
|
Gas distribution sales
|
454
|
|
478
|
|
|
3,085
|
|
3,260
|
|
Transportation and other services
|
3,748
|
|
3,948
|
|
|
12,188
|
|
10,918
|
|
Total operating revenues (Note 3)
|
11,598
|
|
11,345
|
|
|
37,717
|
|
34,816
|
|
Operating expenses
|
|
|
|
|
|
||||
Commodity costs
|
7,216
|
|
6,905
|
|
|
21,910
|
|
20,180
|
|
Gas distribution costs
|
104
|
|
112
|
|
|
1,623
|
|
1,857
|
|
Operating and administrative
|
1,741
|
|
1,652
|
|
|
5,061
|
|
4,929
|
|
Depreciation and amortization
|
844
|
|
799
|
|
|
2,526
|
|
2,452
|
|
Impairment of long-lived assets
|
105
|
|
4
|
|
|
105
|
|
1,076
|
|
Impairment of goodwill
|
—
|
|
1,019
|
|
|
—
|
|
1,019
|
|
Total operating expenses
|
10,010
|
|
10,491
|
|
|
31,225
|
|
31,513
|
|
Operating income
|
1,588
|
|
854
|
|
|
6,492
|
|
3,303
|
|
Income from equity investments
|
333
|
|
378
|
|
|
1,159
|
|
1,076
|
|
Other income/(expense)
|
|
|
|
|
|
||||
Net foreign currency (loss)/gain
|
(43
|
)
|
57
|
|
|
311
|
|
(171
|
)
|
Other
|
81
|
|
(33
|
)
|
|
192
|
|
61
|
|
Interest expense
|
(644
|
)
|
(696
|
)
|
|
(1,966
|
)
|
(2,042
|
)
|
Earnings before income taxes
|
1,315
|
|
560
|
|
|
6,188
|
|
2,227
|
|
Income tax expense (Note 12)
|
(255
|
)
|
(347
|
)
|
|
(1,275
|
)
|
(177
|
)
|
Earnings
|
1,060
|
|
213
|
|
|
4,913
|
|
2,050
|
|
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests
|
(15
|
)
|
(209
|
)
|
|
(50
|
)
|
(352
|
)
|
Earnings attributable to controlling interests
|
1,045
|
|
4
|
|
|
4,863
|
|
1,698
|
|
Preference share dividends
|
(96
|
)
|
(94
|
)
|
|
(287
|
)
|
(272
|
)
|
Earnings/(loss) attributable to common shareholders
|
949
|
|
(90
|
)
|
|
4,576
|
|
1,426
|
|
Earnings/(loss) per common share attributable to common shareholders (Note 5)
|
0.47
|
|
(0.05
|
)
|
|
2.27
|
|
0.84
|
|
Diluted earnings/(loss) per common share attributable to common shareholders (Note 5)
|
0.47
|
|
(0.05
|
)
|
|
2.27
|
|
0.84
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
(unaudited; millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
Earnings
|
1,060
|
|
213
|
|
|
4,913
|
|
2,050
|
|
Other comprehensive income/(loss), net of tax
|
|
|
|
|
|
||||
Change in unrealized gain/(loss) on cash flow hedges
|
(170
|
)
|
57
|
|
|
(597
|
)
|
150
|
|
Change in unrealized gain/(loss) on net investment hedges
|
(74
|
)
|
83
|
|
|
147
|
|
(200
|
)
|
Other comprehensive income from equity investees
|
2
|
|
(1
|
)
|
|
19
|
|
18
|
|
Reclassification to earnings of loss on cash flow hedges
|
28
|
|
31
|
|
|
74
|
|
104
|
|
Reclassification to earnings of pension and other postretirement benefits (OPEB) amounts
|
1
|
|
5
|
|
|
44
|
|
28
|
|
Foreign currency translation adjustments
|
704
|
|
(989
|
)
|
|
(1,898
|
)
|
1,637
|
|
Other comprehensive income/(loss), net of tax
|
491
|
|
(814
|
)
|
|
(2,211
|
)
|
1,737
|
|
Comprehensive income/(loss)
|
1,551
|
|
(601
|
)
|
|
2,702
|
|
3,787
|
|
Comprehensive (income)/loss attributable to noncontrolling interests and redeemable noncontrolling interests
|
(41
|
)
|
(102
|
)
|
|
23
|
|
(546
|
)
|
Comprehensive income/(loss) attributable to controlling interests
|
1,510
|
|
(703
|
)
|
|
2,725
|
|
3,241
|
|
Preference share dividends
|
(96
|
)
|
(94
|
)
|
|
(287
|
)
|
(272
|
)
|
Comprehensive income/(loss) attributable to common shareholders
|
1,414
|
|
(797
|
)
|
|
2,438
|
|
2,969
|
|
|
Three months ended
September 30, |
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(unaudited; millions of Canadian dollars, except per share amounts)
|
|
|
|
|
|
|
||
Preference shares (Note 5)
|
|
|
|
|
||||
Balance at beginning and end of period
|
7,747
|
|
7,747
|
|
7,747
|
|
7,747
|
|
Common shares (Note 5)
|
|
|
|
|
|
|
||
Balance at beginning of period
|
64,732
|
|
51,548
|
|
64,677
|
|
50,737
|
|
Dividend Reinvestment and Share Purchase Plan
|
—
|
|
391
|
|
—
|
|
1,181
|
|
Shares issued on exercise of stock options
|
3
|
|
5
|
|
58
|
|
26
|
|
Balance at end of period
|
64,735
|
|
51,944
|
|
64,735
|
|
51,944
|
|
Additional paid-in capital
|
|
|
|
|
|
|
||
Balance at beginning of period
|
194
|
|
4,311
|
|
—
|
|
3,194
|
|
Stock-based compensation
|
7
|
|
6
|
|
28
|
|
40
|
|
Options exercised
|
(2
|
)
|
(4
|
)
|
(51
|
)
|
(14
|
)
|
Dilution gain on Spectra Energy Partners, LP restructuring
|
—
|
|
—
|
|
—
|
|
1,136
|
|
Change in reciprocal interest
|
—
|
|
—
|
|
109
|
|
—
|
|
Repurchase of noncontrolling interest
|
—
|
|
—
|
|
65
|
|
—
|
|
Sale of noncontrolling interests in subsidiaries
|
—
|
|
79
|
|
—
|
|
79
|
|
Other
|
7
|
|
(46
|
)
|
55
|
|
(89
|
)
|
Balance at end of period
|
206
|
|
4,346
|
|
206
|
|
4,346
|
|
Deficit
|
|
|
|
|
|
|
||
Balance at beginning of period
|
(3,392
|
)
|
(2,649
|
)
|
(5,538
|
)
|
(2,468
|
)
|
Earnings attributable to controlling interests
|
1,045
|
|
4
|
|
4,863
|
|
1,698
|
|
Preference share dividends
|
(96
|
)
|
(94
|
)
|
(287
|
)
|
(272
|
)
|
Dividends paid to reciprocal shareholder
|
5
|
|
8
|
|
14
|
|
25
|
|
Common share dividends declared
|
(1,493
|
)
|
(1,152
|
)
|
(2,993
|
)
|
(2,297
|
)
|
Modified retrospective adoption of ASC 606 Revenue from Contracts with Customers
|
—
|
|
—
|
|
—
|
|
(86
|
)
|
Redemption value adjustment attributable to redeemable noncontrolling interests
|
—
|
|
165
|
|
—
|
|
(318
|
)
|
Other
|
(1
|
)
|
—
|
|
9
|
|
—
|
|
Balance at end of period
|
(3,932
|
)
|
(3,718
|
)
|
(3,932
|
)
|
(3,718
|
)
|
Accumulated other comprehensive income/(loss) (Note 9)
|
|
|
|
|
|
|
||
Balance at beginning of period
|
124
|
|
1,277
|
|
2,672
|
|
(973
|
)
|
Other comprehensive income/(loss) attributable to common shareholders, net of tax
|
465
|
|
(707
|
)
|
(2,138
|
)
|
1,543
|
|
Other
|
(7
|
)
|
—
|
|
48
|
|
—
|
|
Balance at end of period
|
582
|
|
570
|
|
582
|
|
570
|
|
Reciprocal shareholding
|
|
|
|
|
|
|
||
Balance at beginning of period
|
(51
|
)
|
(102
|
)
|
(88
|
)
|
(102
|
)
|
Change in reciprocal interest
|
—
|
|
—
|
|
37
|
|
—
|
|
Balance at end of period
|
(51
|
)
|
(102
|
)
|
(51
|
)
|
(102
|
)
|
Total Enbridge Inc. shareholders’ equity
|
69,287
|
|
60,787
|
|
69,287
|
|
60,787
|
|
Noncontrolling interests
|
|
|
|
|
|
|
||
Balance at beginning of period
|
3,451
|
|
6,100
|
|
3,965
|
|
7,597
|
|
Earnings attributable to noncontrolling interests
|
15
|
|
119
|
|
50
|
|
248
|
|
Other comprehensive income/(loss) attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
||
Change in unrealized gain/(loss) on cash flow hedges
|
(1
|
)
|
2
|
|
(6
|
)
|
8
|
|
Foreign currency translation adjustments
|
27
|
|
(89
|
)
|
(67
|
)
|
140
|
|
Reclassification to earnings of loss on cash flow hedges
|
—
|
|
8
|
|
—
|
|
23
|
|
|
26
|
|
(79
|
)
|
(73
|
)
|
171
|
|
Comprehensive income/(loss) attributable to noncontrolling interests
|
41
|
|
40
|
|
(23
|
)
|
419
|
|
Spectra Energy Partners, LP restructuring
|
—
|
|
—
|
|
—
|
|
(1,486
|
)
|
Contributions
|
1
|
|
2
|
|
10
|
|
23
|
|
Distributions
|
(94
|
)
|
(212
|
)
|
(194
|
)
|
(637
|
)
|
Sale of noncontrolling interests in subsidiaries
|
—
|
|
1,183
|
|
—
|
|
1,183
|
|
Repurchase of noncontrolling interest
|
—
|
|
—
|
|
(65
|
)
|
—
|
|
Redemption of preferred shares held by subsidiary (Note 10)
|
—
|
|
—
|
|
(300
|
)
|
—
|
|
Other
|
(10
|
)
|
(2
|
)
|
(4
|
)
|
12
|
|
Balance at end of period
|
3,389
|
|
7,111
|
|
3,389
|
|
7,111
|
|
Total equity
|
72,676
|
|
67,898
|
|
72,676
|
|
67,898
|
|
Dividends paid per common share
|
0.738
|
|
0.671
|
|
2.214
|
|
2.013
|
|
Earnings per common share attributable to common shareholders (Note 5)
|
0.47
|
|
(0.05
|
)
|
2.27
|
|
0.84
|
|
Diluted earnings per common share attributable to common shareholders (Note 5)
|
0.47
|
|
(0.05
|
)
|
2.27
|
|
0.84
|
|
|
Nine months ended
September 30, |
|||
|
2019
|
|
2018
|
|
(unaudited; millions of Canadian dollars)
|
|
|
||
Operating activities
|
|
|
||
Earnings
|
4,913
|
|
2,050
|
|
Adjustments to reconcile earnings to net cash provided by operating activities:
|
|
|
|
|
Depreciation and amortization
|
2,526
|
|
2,452
|
|
Deferred income tax (recovery)/expense
|
983
|
|
(51
|
)
|
Changes in unrealized (gain)/loss on derivative instruments, net (Note 11)
|
(1,005
|
)
|
319
|
|
Earnings from equity investments
|
(1,159
|
)
|
(1,076
|
)
|
Distributions from equity investments
|
1,442
|
|
1,090
|
|
Impairment of long-lived assets
|
105
|
|
1,076
|
|
Impairment of goodwill
|
—
|
|
1,019
|
|
Loss on dispositions
|
—
|
|
76
|
|
Other
|
51
|
|
101
|
|
Changes in operating assets and liabilities
|
(451
|
)
|
943
|
|
Net cash provided by operating activities
|
7,405
|
|
7,999
|
|
Investing activities
|
|
|
|
|
Capital expenditures
|
(3,928
|
)
|
(4,584
|
)
|
Long-term investments and restricted long-term investments
|
(1,018
|
)
|
(1,091
|
)
|
Distributions from equity investments in excess of cumulative earnings
|
285
|
|
1,243
|
|
Additions to intangible assets
|
(136
|
)
|
(491
|
)
|
Proceeds from dispositions
|
—
|
|
1,913
|
|
Other
|
—
|
|
(12
|
)
|
Affiliate loans, net
|
(232
|
)
|
(50
|
)
|
Net cash used in investing activities
|
(5,029
|
)
|
(3,072
|
)
|
Financing activities
|
|
|
|
|
Net change in short-term borrowings
|
245
|
|
(196
|
)
|
Net change in commercial paper and credit facility draws
|
3,365
|
|
(2,358
|
)
|
Debenture and term note issues, net of issue costs
|
2,553
|
|
3,537
|
|
Debenture and term note repayments
|
(2,994
|
)
|
(3,757
|
)
|
Sale of noncontrolling interests in subsidiaries
|
—
|
|
1,289
|
|
Contributions from noncontrolling interests
|
10
|
|
23
|
|
Distributions to noncontrolling interests
|
(194
|
)
|
(637
|
)
|
Contributions from redeemable noncontrolling interests
|
—
|
|
62
|
|
Distributions to redeemable noncontrolling interests
|
—
|
|
(264
|
)
|
Common shares issued
|
18
|
|
17
|
|
Preference share dividends
|
(287
|
)
|
(268
|
)
|
Common share dividends
|
(4,480
|
)
|
(2,254
|
)
|
Redemption of preferred shares held by subsidiary (Note 10)
|
(300
|
)
|
—
|
|
Other
|
(60
|
)
|
(5
|
)
|
Net cash used in financing activities
|
(2,124
|
)
|
(4,811
|
)
|
Effect of translation of foreign denominated cash and cash equivalents and restricted cash
|
(17
|
)
|
23
|
|
Net increase in cash and cash equivalents and restricted cash
|
235
|
|
139
|
|
Cash and cash equivalents and restricted cash at beginning of period
|
637
|
|
587
|
|
Cash and cash equivalents and restricted cash at end of period
|
872
|
|
726
|
|
|
September 30,
2019 |
|
December 31,
2018 |
|
(unaudited; millions of Canadian dollars; number of shares in millions)
|
|
|
|
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
815
|
|
518
|
|
Restricted cash
|
57
|
|
119
|
|
Accounts receivable and other
|
5,833
|
|
6,517
|
|
Accounts receivable from affiliates
|
89
|
|
79
|
|
Inventory
|
1,261
|
|
1,339
|
|
|
8,055
|
|
8,572
|
|
Property, plant and equipment, net
|
94,379
|
|
94,540
|
|
Long-term investments
|
16,831
|
|
16,707
|
|
Restricted long-term investments
|
413
|
|
323
|
|
Deferred amounts and other assets
|
9,866
|
|
8,558
|
|
Intangible assets, net
|
2,216
|
|
2,372
|
|
Goodwill
|
33,668
|
|
34,459
|
|
Deferred income taxes
|
1,213
|
|
1,374
|
|
Total assets
|
166,641
|
|
166,905
|
|
|
|
|
||
Liabilities and equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Short-term borrowings
|
1,269
|
|
1,024
|
|
Accounts payable and other
|
7,130
|
|
9,863
|
|
Accounts payable to affiliates
|
47
|
|
40
|
|
Interest payable
|
566
|
|
669
|
|
Current portion of long-term debt
|
4,536
|
|
3,259
|
|
|
13,548
|
|
14,855
|
|
Long-term debt
|
60,879
|
|
60,327
|
|
Other long-term liabilities
|
9,433
|
|
8,834
|
|
Deferred income taxes
|
10,105
|
|
9,454
|
|
|
93,965
|
|
93,470
|
|
Contingencies (Note 15)
|
|
|
|
|
Equity
|
|
|
|
|
Share capital
|
|
|
|
|
Preference shares
|
7,747
|
|
7,747
|
|
Common shares (2,024 and 2,022 outstanding at September 30, 2019 and December 31, 2018, respectively)
|
64,735
|
|
64,677
|
|
Additional paid-in capital
|
206
|
|
—
|
|
Deficit
|
(3,932
|
)
|
(5,538
|
)
|
Accumulated other comprehensive income (Note 9)
|
582
|
|
2,672
|
|
Reciprocal shareholding
|
(51
|
)
|
(88
|
)
|
Total Enbridge Inc. shareholders’ equity
|
69,287
|
|
69,470
|
|
Noncontrolling interests
|
3,389
|
|
3,965
|
|
|
72,676
|
|
73,435
|
|
Total liabilities and equity
|
166,641
|
|
166,905
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution
|
|
Renewable Power Generation and Transmission
|
|
Energy Services
|
|
Eliminations and Other
|
|
Consolidated
|
|
Three months ended
September 30, 2019 |
||||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation revenues
|
2,305
|
|
1,073
|
|
135
|
|
—
|
|
—
|
|
—
|
|
3,513
|
|
Storage and other revenues
|
31
|
|
69
|
|
48
|
|
—
|
|
—
|
|
—
|
|
148
|
|
Gas gathering and processing revenues
|
—
|
|
98
|
|
—
|
|
—
|
|
—
|
|
—
|
|
98
|
|
Gas distribution revenue
|
—
|
|
—
|
|
470
|
|
—
|
|
—
|
|
—
|
|
470
|
|
Electricity and transmission revenues
|
—
|
|
—
|
|
—
|
|
46
|
|
—
|
|
—
|
|
46
|
|
Total revenue from contracts with customers
|
2,336
|
|
1,240
|
|
653
|
|
46
|
|
—
|
|
—
|
|
4,275
|
|
Commodity sales
|
—
|
|
—
|
|
—
|
|
—
|
|
7,396
|
|
—
|
|
7,396
|
|
Other revenues1,2
|
(156
|
)
|
23
|
|
(21
|
)
|
82
|
|
(1
|
)
|
—
|
|
(73
|
)
|
Intersegment revenues
|
88
|
|
1
|
|
3
|
|
—
|
|
8
|
|
(100
|
)
|
—
|
|
Total revenues
|
2,268
|
|
1,264
|
|
635
|
|
128
|
|
7,403
|
|
(100
|
)
|
11,598
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution
|
|
Renewable Power Generation and Transmission
|
|
Energy Services
|
|
Eliminations and Other
|
|
Consolidated
|
|
Three months ended
September 30, 2018 |
||||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation revenues
|
2,190
|
|
979
|
|
97
|
|
—
|
|
—
|
|
—
|
|
3,266
|
|
Storage and other revenues
|
31
|
|
53
|
|
55
|
|
—
|
|
—
|
|
—
|
|
139
|
|
Gas gathering and processing revenues
|
—
|
|
200
|
|
—
|
|
—
|
|
—
|
|
—
|
|
200
|
|
Gas distribution revenues
|
—
|
|
—
|
|
478
|
|
—
|
|
—
|
|
—
|
|
478
|
|
Electricity and transmission revenues
|
—
|
|
—
|
|
—
|
|
43
|
|
—
|
|
—
|
|
43
|
|
Commodity sales
|
—
|
|
298
|
|
—
|
|
—
|
|
—
|
|
—
|
|
298
|
|
Total revenue from contracts with customers
|
2,221
|
|
1,530
|
|
630
|
|
43
|
|
—
|
|
—
|
|
4,424
|
|
Commodity sales
|
—
|
|
—
|
|
—
|
|
—
|
|
6,621
|
|
—
|
|
6,621
|
|
Other revenues1, 2
|
222
|
|
(6
|
)
|
11
|
|
74
|
|
—
|
|
(1
|
)
|
300
|
|
Intersegment revenues
|
86
|
|
4
|
|
4
|
|
—
|
|
25
|
|
(119
|
)
|
—
|
|
Total revenues
|
2,529
|
|
1,528
|
|
645
|
|
117
|
|
6,646
|
|
(120
|
)
|
11,345
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution
|
|
Renewable Power Generation and Transmission
|
|
Energy Services
|
|
Eliminations and Other
|
|
Consolidated
|
|
Nine months ended
September 30, 2019 |
||||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation revenues
|
6,749
|
|
3,323
|
|
555
|
|
—
|
|
—
|
|
—
|
|
10,627
|
|
Storage and other revenues
|
83
|
|
168
|
|
154
|
|
—
|
|
—
|
|
—
|
|
405
|
|
Gas gathering and processing revenues
|
—
|
|
329
|
|
—
|
|
—
|
|
—
|
|
—
|
|
329
|
|
Gas distribution revenue
|
—
|
|
—
|
|
3,080
|
|
—
|
|
—
|
|
—
|
|
3,080
|
|
Electricity and transmission revenues
|
—
|
|
—
|
|
—
|
|
139
|
|
—
|
|
—
|
|
139
|
|
Commodity sales
|
—
|
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
Total revenue from contracts with customers
|
6,832
|
|
3,823
|
|
3,789
|
|
139
|
|
—
|
|
—
|
|
14,583
|
|
Commodity sales
|
—
|
|
—
|
|
—
|
|
—
|
|
22,441
|
|
—
|
|
22,441
|
|
Other revenues1,2
|
383
|
|
43
|
|
5
|
|
278
|
|
(2
|
)
|
(14
|
)
|
693
|
|
Intersegment revenues
|
280
|
|
4
|
|
9
|
|
—
|
|
55
|
|
(348
|
)
|
—
|
|
Total revenues
|
7,495
|
|
3,870
|
|
3,803
|
|
417
|
|
22,494
|
|
(362
|
)
|
37,717
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution
|
|
Renewable Power Generation and Transmission
|
|
Energy Services
|
|
Eliminations and Other
|
|
Consolidated
|
|
Nine months ended
September 30, 2018 |
||||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation revenues
|
6,327
|
|
2,889
|
|
487
|
|
—
|
|
—
|
|
—
|
|
9,703
|
|
Storage and other revenues
|
113
|
|
164
|
|
173
|
|
—
|
|
—
|
|
—
|
|
450
|
|
Gas gathering and processing revenues
|
—
|
|
636
|
|
—
|
|
—
|
|
—
|
|
—
|
|
636
|
|
Gas distribution revenues
|
—
|
|
—
|
|
3,260
|
|
—
|
|
—
|
|
—
|
|
3,260
|
|
Electricity and transmission revenues
|
—
|
|
—
|
|
—
|
|
153
|
|
—
|
|
—
|
|
153
|
|
Commodity sales
|
—
|
|
1,630
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,630
|
|
Total revenue from contracts with customers
|
6,440
|
|
5,319
|
|
3,920
|
|
153
|
|
—
|
|
—
|
|
15,832
|
|
Commodity sales
|
—
|
|
—
|
|
—
|
|
—
|
|
19,008
|
|
—
|
|
19,008
|
|
Other revenues1, 2
|
(308
|
)
|
2
|
|
22
|
|
270
|
|
—
|
|
(10
|
)
|
(24
|
)
|
Intersegment revenues
|
256
|
|
8
|
|
10
|
|
—
|
|
106
|
|
(380
|
)
|
—
|
|
Total revenues
|
6,388
|
|
5,329
|
|
3,952
|
|
423
|
|
19,114
|
|
(390
|
)
|
34,816
|
|
|
Receivables
|
|
Contract Assets
|
|
Contract Liabilities
|
|
(millions of Canadian dollars)
|
|
|
|
|||
Balance as at December 31, 2018
|
1,929
|
|
191
|
|
1,297
|
|
Balance as at September 30, 2019
|
1,694
|
|
191
|
|
1,437
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution
|
|
Renewable Power Generation and Transmission
|
|
Energy Services
|
|
Consolidated
|
|
Three months ended
September 30, 2019 |
||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from products transferred at a point in time1
|
—
|
|
—
|
|
17
|
|
—
|
|
—
|
|
17
|
|
Revenues from products and services transferred over time2
|
2,336
|
|
1,240
|
|
636
|
|
46
|
|
—
|
|
4,258
|
|
Total revenue from contracts with customers
|
2,336
|
|
1,240
|
|
653
|
|
46
|
|
—
|
|
4,275
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution
|
|
Renewable Power Generation and Transmission
|
|
Energy Services
|
|
Consolidated
|
|
Three months ended
September 30, 2018 |
||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Revenues from products transferred at a point in time1
|
—
|
|
298
|
|
20
|
|
—
|
|
—
|
|
318
|
|
Revenues from products and services transferred over time2
|
2,221
|
|
1,232
|
|
610
|
|
43
|
|
—
|
|
4,106
|
|
Total revenue from contracts with customers
|
2,221
|
|
1,530
|
|
630
|
|
43
|
|
—
|
|
4,424
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution
|
|
Renewable Power Generation and Transmission
|
|
Energy Services
|
|
Consolidated
|
|
Nine months ended
September 30, 2019 |
||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from products transferred at a point in time1
|
—
|
|
3
|
|
51
|
|
—
|
|
—
|
|
54
|
|
Revenues from products and services transferred over time2
|
6,832
|
|
3,820
|
|
3,738
|
|
139
|
|
—
|
|
14,529
|
|
Total revenue from contracts with customers
|
6,832
|
|
3,823
|
|
3,789
|
|
139
|
|
—
|
|
14,583
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution
|
|
Renewable Power Generation and Transmission
|
|
Energy Services
|
|
Consolidated
|
|
Nine months ended
September 30, 2018 |
||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Revenues from products transferred at a point in time1
|
—
|
|
1,630
|
|
65
|
|
—
|
|
—
|
|
1,695
|
|
Revenues from products and services transferred over time2
|
6,440
|
|
3,689
|
|
3,855
|
|
153
|
|
—
|
|
14,137
|
|
Total revenue from contracts with customers
|
6,440
|
|
5,319
|
|
3,920
|
|
153
|
|
—
|
|
15,832
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution
|
|
Renewable Power Generation and Transmission
|
|
Energy Services
|
|
Eliminations and Other
|
|
Consolidated
|
|
Three months ended
September 30, 2019 |
||||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
2,268
|
|
1,264
|
|
635
|
|
128
|
|
7,403
|
|
(100
|
)
|
11,598
|
|
Commodity and gas distribution costs
|
(12
|
)
|
—
|
|
(132
|
)
|
—
|
|
(7,287
|
)
|
111
|
|
(7,320
|
)
|
Operating and administrative
|
(815
|
)
|
(550
|
)
|
(267
|
)
|
(55
|
)
|
(19
|
)
|
(35
|
)
|
(1,741
|
)
|
Impairment of long-lived assets
|
—
|
|
(105
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(105
|
)
|
Income/(loss) from equity investments
|
205
|
|
135
|
|
(11
|
)
|
5
|
|
—
|
|
(1
|
)
|
333
|
|
Other income/(expense)
|
—
|
|
28
|
|
27
|
|
4
|
|
(6
|
)
|
(15
|
)
|
38
|
|
Earnings before interest, income taxes, and depreciation and amortization
|
1,646
|
|
772
|
|
252
|
|
82
|
|
91
|
|
(40
|
)
|
2,803
|
|
Depreciation and amortization
|
|
|
|
|
|
|
(844
|
)
|
||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(644
|
)
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(255
|
)
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
1,060
|
|
|
Capital expenditures1
|
442
|
|
436
|
|
247
|
|
2
|
|
—
|
|
32
|
|
1,159
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution
|
|
Renewable Power Generation and Transmission
|
|
Energy Services
|
|
Eliminations and Other
|
|
Consolidated
|
|
Three months ended
September 30, 2018 |
||||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
2,529
|
|
1,528
|
|
645
|
|
117
|
|
6,646
|
|
(120
|
)
|
11,345
|
|
Commodity and gas distribution costs
|
(5
|
)
|
(270
|
)
|
(137
|
)
|
—
|
|
(6,726
|
)
|
121
|
|
(7,017
|
)
|
Operating and administrative
|
(790
|
)
|
(519
|
)
|
(263
|
)
|
(38
|
)
|
(17
|
)
|
(25
|
)
|
(1,652
|
)
|
Impairment of long-lived assets
|
—
|
|
—
|
|
—
|
|
(4
|
)
|
—
|
|
—
|
|
(4
|
)
|
Impairment of goodwill
|
—
|
|
(1,019
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,019
|
)
|
Income/(loss) from equity investments
|
131
|
|
262
|
|
(12
|
)
|
(6
|
)
|
3
|
|
—
|
|
378
|
|
Other (expense)/income
|
10
|
|
(42
|
)
|
23
|
|
(18
|
)
|
(2
|
)
|
53
|
|
24
|
|
Earnings/(loss) before interest, income taxes, and depreciation and amortization
|
1,875
|
|
(60
|
)
|
256
|
|
51
|
|
(96
|
)
|
29
|
|
2,055
|
|
Depreciation and amortization
|
|
|
|
|
|
|
(799
|
)
|
||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(696
|
)
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(347
|
)
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
213
|
|
Capital expenditures1
|
651
|
|
413
|
|
311
|
|
6
|
|
—
|
|
(19
|
)
|
1,362
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution
|
|
Renewable Power Generation and Transmission
|
|
Energy Services
|
|
Eliminations and Other
|
|
Consolidated
|
|
Nine months ended
September 30, 2019 |
||||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
7,495
|
|
3,870
|
|
3,803
|
|
417
|
|
22,494
|
|
(362
|
)
|
37,717
|
|
Commodity and gas distribution costs
|
(25
|
)
|
—
|
|
(1,740
|
)
|
(2
|
)
|
(22,125
|
)
|
359
|
|
(23,533
|
)
|
Operating and administrative
|
(2,392
|
)
|
(1,626
|
)
|
(829
|
)
|
(137
|
)
|
(53
|
)
|
(24
|
)
|
(5,061
|
)
|
Impairment of long-lived assets
|
—
|
|
(105
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(105
|
)
|
Income from equity investments
|
606
|
|
525
|
|
2
|
|
23
|
|
3
|
|
—
|
|
1,159
|
|
Other income/(expense)
|
26
|
|
69
|
|
68
|
|
(1
|
)
|
(1
|
)
|
342
|
|
503
|
|
Earnings before interest, income taxes, and depreciation and amortization
|
5,710
|
|
2,733
|
|
1,304
|
|
300
|
|
318
|
|
315
|
|
10,680
|
|
Depreciation and amortization
|
|
|
|
|
|
|
(2,526
|
)
|
||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,966
|
)
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,275
|
)
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
4,913
|
|
|
Capital expenditures1
|
1,984
|
|
1,254
|
|
643
|
|
18
|
|
2
|
|
71
|
|
3,972
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution
|
|
Renewable Power Generation and Transmission
|
|
Energy Services
|
|
Eliminations and Other
|
|
Consolidated
|
|
Nine months ended
September 30, 2018 |
||||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
6,388
|
|
5,329
|
|
3,952
|
|
423
|
|
19,114
|
|
(390
|
)
|
34,816
|
|
Commodity and gas distribution costs
|
(14
|
)
|
(1,481
|
)
|
(1,969
|
)
|
—
|
|
(18,965
|
)
|
392
|
|
(22,037
|
)
|
Operating and administrative
|
(2,251
|
)
|
(1,560
|
)
|
(782
|
)
|
(104
|
)
|
(50
|
)
|
(182
|
)
|
(4,929
|
)
|
Impairment of long-lived assets
|
(154
|
)
|
(913
|
)
|
—
|
|
(4
|
)
|
—
|
|
(5
|
)
|
(1,076
|
)
|
Impairment of goodwill
|
—
|
|
(1,019
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,019
|
)
|
Income/(loss) from equity investments
|
399
|
|
699
|
|
(5
|
)
|
(27
|
)
|
10
|
|
—
|
|
1,076
|
|
Other (expense)/income
|
(15
|
)
|
25
|
|
66
|
|
(2
|
)
|
(1
|
)
|
(183
|
)
|
(110
|
)
|
Earnings/(loss) before interest, income taxes, and depreciation and amortization
|
4,353
|
|
1,080
|
|
1,262
|
|
286
|
|
108
|
|
(368
|
)
|
6,721
|
|
Depreciation and amortization
|
|
|
|
|
|
|
(2,452
|
)
|
||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,042
|
)
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(177
|
)
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
2,050
|
|
Capital expenditures1
|
1,776
|
|
2,105
|
|
733
|
|
30
|
|
—
|
|
(11
|
)
|
4,633
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
(number of common shares in millions)
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
2,018
|
|
1,705
|
|
|
2,017
|
|
1,695
|
|
Effect of dilutive options
|
2
|
|
3
|
|
|
3
|
|
4
|
|
Diluted weighted average shares outstanding
|
2,020
|
|
1,708
|
|
|
2,020
|
|
1,699
|
|
|
Dividend per share
|
|
|
Common Shares
|
|
$0.73800
|
|
Preference Shares, Series A
|
|
$0.34375
|
|
Preference Shares, Series B
|
|
$0.21340
|
|
Preference Shares, Series C1
|
|
$0.25243
|
|
Preference Shares, Series D
|
|
$0.27875
|
|
Preference Shares, Series F
|
|
$0.29306
|
|
Preference Shares, Series H
|
|
$0.27350
|
|
Preference Shares, Series J
|
|
US$0.30540
|
|
Preference Shares, Series L
|
|
US$0.30993
|
|
Preference Shares, Series N
|
|
$0.31788
|
|
Preference Shares, Series P2
|
|
$0.27369
|
|
Preference Shares, Series R3
|
|
$0.25456
|
|
Preference Shares, Series 1
|
|
US$0.37182
|
|
Preference Shares, Series 34
|
|
$0.23356
|
|
Preference Shares, Series 55
|
|
US$0.33596
|
|
Preference Shares, Series 76
|
|
$0.27806
|
|
Preference Shares, Series 9
|
|
$0.27500
|
|
Preference Shares, Series 11
|
|
$0.27500
|
|
Preference Shares, Series 13
|
|
$0.27500
|
|
Preference Shares, Series 15
|
|
$0.27500
|
|
Preference Shares, Series 17
|
|
$0.32188
|
|
Preference Shares, Series 19
|
|
$0.30625
|
|
3
|
The quarterly dividend per share paid on Series R was increased to $0.25456 from $0.25000 on June 1, 2019, due to the reset of the annual dividend on June 1, 2019, and every five years thereafter.
|
4
|
The quarterly dividend per share paid on Series 3 was decreased to $0.23356 from $0.25000 on September 1, 2019, due to the reset of the annual dividend on September 1, 2019, and every five year thereafter.
|
5
|
The quarterly dividend per share paid on Series 5 was increased to US$0.33596 from US$0.27500 on March 1, 2019, due to reset of the annual dividend on March 1, 2019, and every five years thereafter.
|
6
|
The quarterly dividend per share paid on Series 7 was increased to $0.27806 from $0.27500 on March 1, 2019, due to reset of the annual dividend on March 1, 2019, and every five years thereafter.
|
|
September 30, 2019
|
|
December 31, 2018
|
|
(millions of Canadian dollars)
|
|
|
|
|
Accounts receivable and other (current assets held for sale)
|
72
|
|
117
|
|
Deferred amounts and other assets (long-term assets held for sale)1
|
2,473
|
|
2,383
|
|
Accounts payable and other (current liabilities held for sale)
|
(47
|
)
|
(63
|
)
|
Other long-term liabilities (long-term liabilities held for sale)
|
(90
|
)
|
(96
|
)
|
Net assets held for sale
|
2,408
|
|
2,341
|
|
1
|
Included within Deferred amounts and other assets at September 30, 2019 and December 31, 2018 respectively is property, plant and equipment of $2.2 billion and $2.1 billion.
|
8.
|
DEBT
|
|
Maturity
|
Total
Facilities
|
|
Draws1
|
|
Available
|
|
(millions of Canadian dollars)
|
|
|
|
|
|||
Enbridge Inc.
|
2021-2024
|
7,024
|
|
6,400
|
|
624
|
|
Enbridge (U.S.) Inc.
|
2021-2024
|
7,282
|
|
2,680
|
|
4,602
|
|
Enbridge Pipelines Inc.
|
2021
|
3,000
|
|
2,555
|
|
445
|
|
Enbridge Gas Inc.
|
2019-2021
|
2,017
|
|
1,280
|
|
737
|
|
Total committed credit facilities
|
|
19,323
|
|
12,915
|
|
6,408
|
|
Company
|
Issue Date
|
|
|
Principal Amount
|
(millions of Canadian dollars, unless otherwise stated)
|
|
|
||
Algonquin Gas Transmission, LLC
|
|
|
||
|
August 2019
|
3.24% senior notes due August 2029
|
|
US$500
|
Enbridge Gas Inc.
|
|
|
|
|
|
August 2019
|
2.37% medium-term notes due August 2029
|
|
$400
|
|
August 2019
|
3.01% medium-term notes due August 2049
|
|
$300
|
Enbridge Pipelines Inc.
|
|
|
|
|
|
February 2019
|
3.52% medium-term notes due February 2029
|
$600
|
|
|
February 2019
|
4.33% medium-term notes due February 2049
|
$600
|
Company
|
Retirement/
Repayment Date
|
|
|
Principal Amount
|
(millions of Canadian dollars, unless otherwise stated)
|
|
|
||
Enbridge Inc.
|
|
|
||
Repayment
|
|
|
||
|
February 2019
|
4.10% medium-term notes
|
$300
|
|
|
May 2019
|
Floating rate notes
|
$750
|
|
|
September 2019
|
4.77% medium-term notes
|
$400
|
|
Enbridge Energy Partners, L.P.
|
|
|
||
Redemption
|
|
|
|
|
|
February 2019
|
8.05% fixed/floating rate junior subordinated notes due 2067
|
US$400
|
|
Repayment
|
|
|
|
|
|
March 2019
|
9.88% senior notes
|
|
US$500
|
Enbridge Pipelines (Southern Lights) L.L.C.
|
|
|
||
Repayment
|
|
|
|
|
|
June 2019
|
3.98% medium-term notes due 2040
|
|
US$23
|
Enbridge Southern Lights LP
|
|
|
|
|
Repayment
|
|
|
|
|
|
July 2019
|
4.01% senior notes due 2040
|
|
$10
|
Westcoast Energy Inc.
|
|
|
|
|
Repayment
|
|
|
|
|
|
January 2019
|
5.60% medium-term notes
|
$250
|
|
|
January 2019
|
5.60% medium-term notes
|
|
$50
|
|
May 2019
|
6.90% senior secured notes due 2019
|
|
$13
|
|
May 2019
|
4.34% senior secured notes due 2019
|
|
$2
|
9.
|
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME
|
|
Cash Flow
Hedges
|
|
Net
Investment
Hedges
|
|
Cumulative
Translation
Adjustment
|
|
Equity
Investees
|
|
Pension and
OPEB
Adjustment
|
|
Total
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Balance as at January 1, 2019
|
(770
|
)
|
(598
|
)
|
4,323
|
|
34
|
|
(317
|
)
|
2,672
|
|
Other comprehensive income/(loss) retained in AOCI
|
(845
|
)
|
167
|
|
(1,831
|
)
|
26
|
|
—
|
|
(2,483
|
)
|
Other comprehensive (income)/loss reclassified to earnings
|
|
|
|
|
|
|
|
|||||
Interest rate contracts1
|
108
|
|
—
|
|
—
|
|
—
|
|
—
|
|
108
|
|
Foreign exchange contracts3
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4
|
|
Other contracts4
|
(4
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(4
|
)
|
Amortization of pension and OPEB actuarial loss and prior service costs5
|
—
|
|
—
|
|
—
|
|
—
|
|
59
|
|
59
|
|
|
(737
|
)
|
167
|
|
(1,831
|
)
|
26
|
|
59
|
|
(2,316
|
)
|
Tax impact
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax on amounts retained in AOCI
|
254
|
|
(20
|
)
|
—
|
|
(7
|
)
|
—
|
|
227
|
|
Income tax on amounts reclassified to earnings
|
(34
|
)
|
—
|
|
—
|
|
—
|
|
(15
|
)
|
(49
|
)
|
|
220
|
|
(20
|
)
|
—
|
|
(7
|
)
|
(15
|
)
|
178
|
|
Other
|
—
|
|
—
|
|
—
|
|
(7
|
)
|
55
|
|
48
|
|
Balance as at September 30, 2019
|
(1,287
|
)
|
(451
|
)
|
2,492
|
|
46
|
|
(218
|
)
|
582
|
|
|
Cash Flow
Hedges
|
|
Net
Investment
Hedges
|
|
Cumulative
Translation
Adjustment
|
|
Equity
Investees
|
|
Pension and
OPEB
Adjustment
|
|
Total
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Balance as at January 1, 2018
|
(644
|
)
|
(139
|
)
|
77
|
|
10
|
|
(277
|
)
|
(973
|
)
|
Other comprehensive income/(loss) retained in AOCI
|
167
|
|
(232
|
)
|
1,495
|
|
(8
|
)
|
—
|
|
1,422
|
|
Other comprehensive (income)/loss reclassified to earnings
|
|
|
|
|
|
|
|
|||||
Interest rate contracts1
|
92
|
|
—
|
|
—
|
|
—
|
|
—
|
|
92
|
|
Commodity contracts2
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
Foreign exchange contracts3
|
6
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6
|
|
Other contracts4
|
10
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10
|
|
Amortization of pension and OPEB actuarial loss and prior service costs5
|
—
|
|
—
|
|
—
|
|
—
|
|
36
|
|
36
|
|
|
274
|
|
(232
|
)
|
1,495
|
|
(8
|
)
|
36
|
|
1,565
|
|
Tax impact
|
|
|
|
|
|
|
||||||
Income tax on amounts retained in AOCI
|
(26
|
)
|
32
|
|
—
|
|
9
|
|
—
|
|
15
|
|
Income tax on amounts reclassified to earnings
|
(29
|
)
|
—
|
|
—
|
|
—
|
|
(8
|
)
|
(37
|
)
|
|
(55
|
)
|
32
|
|
—
|
|
9
|
|
(8
|
)
|
(22
|
)
|
Balance as at September 30, 2018
|
(425
|
)
|
(339
|
)
|
1,572
|
|
11
|
|
(249
|
)
|
570
|
|
September 30, 2019
|
Derivative
Instruments
Used as
Cash Flow Hedges
|
|
Derivative
Instruments
Used as Net
Investment Hedges
|
|
Non-
Qualifying
Derivative Instruments
|
|
Total Gross
Derivative
Instruments as Presented
|
|
Amounts
Available for Offset
|
|
Total Net
Derivative Instruments
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Accounts receivable and other
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
—
|
|
—
|
|
76
|
|
76
|
|
(66
|
)
|
10
|
|
Interest rate contracts
|
1
|
|
—
|
|
—
|
|
1
|
|
—
|
|
1
|
|
Commodity contracts
|
—
|
|
—
|
|
185
|
|
185
|
|
(41
|
)
|
144
|
|
|
1
|
|
—
|
|
261
|
|
262
|
|
(107
|
)
|
155
|
|
Deferred amounts and other assets
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
17
|
|
—
|
|
123
|
|
140
|
|
(62
|
)
|
78
|
|
Commodity contracts
|
—
|
|
—
|
|
35
|
|
35
|
|
(7
|
)
|
28
|
|
Other contracts
|
1
|
|
—
|
|
1
|
|
2
|
|
(1
|
)
|
1
|
|
|
18
|
|
—
|
|
159
|
|
177
|
|
(70
|
)
|
107
|
|
Accounts payable and other
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
(5
|
)
|
(14
|
)
|
(534
|
)
|
(553
|
)
|
66
|
|
(487
|
)
|
Interest rate contracts
|
(258
|
)
|
—
|
|
—
|
|
(258
|
)
|
—
|
|
(258
|
)
|
Commodity contracts
|
—
|
|
—
|
|
(140
|
)
|
(140
|
)
|
41
|
|
(99
|
)
|
Other Contracts
|
—
|
|
—
|
|
(1
|
)
|
(1
|
)
|
—
|
|
(1
|
)
|
|
(263
|
)
|
(14
|
)
|
(675
|
)
|
(952
|
)
|
107
|
|
(845
|
)
|
Other long-term liabilities
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
—
|
|
—
|
|
(1,536
|
)
|
(1,536
|
)
|
62
|
|
(1,474
|
)
|
Interest rate contracts
|
(686
|
)
|
—
|
|
—
|
|
(686
|
)
|
—
|
|
(686
|
)
|
Commodity contracts
|
(1
|
)
|
—
|
|
(97
|
)
|
(98
|
)
|
7
|
|
(91
|
)
|
Other contracts
|
(1
|
)
|
—
|
|
(1
|
)
|
(2
|
)
|
1
|
|
(1
|
)
|
|
(688
|
)
|
—
|
|
(1,634
|
)
|
(2,322
|
)
|
70
|
|
(2,252
|
)
|
Total net derivative asset/(liability)
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
12
|
|
(14
|
)
|
(1,871
|
)
|
(1,873
|
)
|
—
|
|
(1,873
|
)
|
Interest rate contracts
|
(943
|
)
|
—
|
|
—
|
|
(943
|
)
|
—
|
|
(943
|
)
|
Commodity contracts
|
(1
|
)
|
—
|
|
(17
|
)
|
(18
|
)
|
—
|
|
(18
|
)
|
Other contracts
|
—
|
|
—
|
|
(1
|
)
|
(1
|
)
|
—
|
|
(1
|
)
|
|
(932
|
)
|
(14
|
)
|
(1,889
|
)
|
(2,835
|
)
|
—
|
|
(2,835
|
)
|
December 31, 2018
|
Derivative
Instruments
Used as
Cash Flow Hedges
|
|
Derivative
Instruments
Used as Net
Investment Hedges
|
|
Non-
Qualifying
Derivative Instruments
|
|
Total Gross
Derivative
Instruments as Presented
|
|
Amounts
Available for Offset
|
|
Total Net
Derivative Instruments
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Accounts receivable and other
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
—
|
|
—
|
|
47
|
|
47
|
|
(37
|
)
|
10
|
|
Interest rate contracts
|
22
|
|
—
|
|
—
|
|
22
|
|
(2
|
)
|
20
|
|
Commodity contracts
|
2
|
|
—
|
|
427
|
|
429
|
|
(114
|
)
|
315
|
|
|
24
|
|
—
|
|
474
|
|
498
|
|
(153
|
)
|
345
|
|
Deferred amounts and other assets
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
23
|
|
—
|
|
39
|
|
62
|
|
(39
|
)
|
23
|
|
Interest rate contracts
|
5
|
|
—
|
|
—
|
|
5
|
|
—
|
|
5
|
|
Commodity contracts
|
19
|
|
—
|
|
33
|
|
52
|
|
(21
|
)
|
31
|
|
|
47
|
|
—
|
|
72
|
|
119
|
|
(60
|
)
|
59
|
|
Accounts payable and other
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
(5
|
)
|
—
|
|
(610
|
)
|
(615
|
)
|
37
|
|
(578
|
)
|
Interest rate contracts
|
(163
|
)
|
—
|
|
(178
|
)
|
(341
|
)
|
2
|
|
(339
|
)
|
Commodity contracts
|
—
|
|
—
|
|
(273
|
)
|
(273
|
)
|
114
|
|
(159
|
)
|
Other contracts
|
(1
|
)
|
—
|
|
(4
|
)
|
(5
|
)
|
—
|
|
(5
|
)
|
|
(169
|
)
|
—
|
|
(1,065
|
)
|
(1,234
|
)
|
153
|
|
(1,081
|
)
|
Other long-term liabilities
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
(1
|
)
|
(15
|
)
|
(2,196
|
)
|
(2,212
|
)
|
39
|
|
(2,173
|
)
|
Interest rate contracts
|
(201
|
)
|
—
|
|
—
|
|
(201
|
)
|
—
|
|
(201
|
)
|
Commodity contracts
|
—
|
|
—
|
|
(178
|
)
|
(178
|
)
|
21
|
|
(157
|
)
|
Other contracts
|
(1
|
)
|
—
|
|
(1
|
)
|
(2
|
)
|
—
|
|
(2
|
)
|
|
(203
|
)
|
(15
|
)
|
(2,375
|
)
|
(2,593
|
)
|
60
|
|
(2,533
|
)
|
Total net derivative asset/(liability)
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
17
|
|
(15
|
)
|
(2,720
|
)
|
(2,718
|
)
|
—
|
|
(2,718
|
)
|
Interest rate contracts
|
(337
|
)
|
—
|
|
(178
|
)
|
(515
|
)
|
—
|
|
(515
|
)
|
Commodity contracts
|
21
|
|
—
|
|
9
|
|
30
|
|
—
|
|
30
|
|
Other contracts
|
(2
|
)
|
—
|
|
(5
|
)
|
(7
|
)
|
—
|
|
(7
|
)
|
|
(301
|
)
|
(15
|
)
|
(2,894
|
)
|
(3,210
|
)
|
—
|
|
(3,210
|
)
|
September 30, 2019
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter1
|
|
Foreign exchange contracts - United States dollar forwards - purchase (millions of United States dollars)
|
1,049
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Foreign exchange contracts - United States dollar forwards - sell (millions of United States dollars)
|
1,218
|
|
5,355
|
|
4,946
|
|
5,182
|
|
1,804
|
|
1,856
|
|
Foreign exchange contracts - British pound (GBP) forwards - sell (millions of GBP)
|
6
|
|
94
|
|
27
|
|
28
|
|
29
|
|
120
|
|
Foreign exchange contracts - Euro forwards - purchase (millions of Euro)
|
51
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Foreign exchange contracts - Euro forwards - sell (millions of Euro)
|
—
|
|
23
|
|
94
|
|
94
|
|
92
|
|
606
|
|
Foreign exchange contracts - Japanese yen forwards - purchase (millions of yen)
|
—
|
|
—
|
|
—
|
|
72,500
|
|
—
|
|
—
|
|
Interest rate contracts - short-term pay fixed rate (millions of Canadian dollars)
|
2,204
|
|
6,152
|
|
4,124
|
|
405
|
|
48
|
|
156
|
|
Interest rate contracts - long-term debt pay fixed rate (millions of Canadian dollars)
|
1,509
|
|
3,125
|
|
1,579
|
|
—
|
|
—
|
|
—
|
|
Equity contracts (millions of Canadian dollars)
|
29
|
|
20
|
|
34
|
|
—
|
|
—
|
|
—
|
|
Commodity contracts - natural gas (billions of cubic feet)
|
(3
|
)
|
(26
|
)
|
3
|
|
21
|
|
4
|
|
—
|
|
Commodity contracts - crude oil (millions of barrels)
|
7
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Commodity contracts - power (megawatt per hour) (MW/H))
|
90
|
|
80
|
|
(3
|
)
|
(43
|
)
|
(43
|
)
|
(43
|
)
|
1
|
As at September 30, 2019, thereafter includes an average net purchase/(sell) of power of (43) MW/H for 2024 through 2025.
|
|
Three months ended
September 30, |
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(millions of Canadian dollars)
|
|
|
|
|
||||
Amount of unrealized gain/(loss) recognized in OCI
|
|
|
|
|
||||
Cash flow hedges
|
|
|
|
|
||||
Foreign exchange contracts
|
2
|
|
(16
|
)
|
(11
|
)
|
2
|
|
Interest rate contracts
|
(231
|
)
|
69
|
|
(812
|
)
|
186
|
|
Commodity contracts
|
(1
|
)
|
4
|
|
(22
|
)
|
1
|
|
Other contracts
|
1
|
|
(10
|
)
|
6
|
|
(12
|
)
|
Net investment hedges
|
|
|
|
|
||||
Foreign exchange contracts
|
(1
|
)
|
25
|
|
1
|
|
36
|
|
|
(230
|
)
|
72
|
|
(838
|
)
|
213
|
|
Amount of (gain)/loss reclassified from AOCI to earnings
|
|
|
|
|
||||
Foreign exchange contracts1
|
2
|
|
7
|
|
4
|
|
4
|
|
Interest rate contracts2
|
36
|
|
38
|
|
108
|
|
132
|
|
Commodity contracts3
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
Other contracts4
|
(1
|
)
|
7
|
|
(4
|
)
|
10
|
|
|
37
|
|
52
|
|
108
|
|
145
|
|
1
|
Reported within Transportation and other services revenues and Net foreign currency gain/(loss) in the Consolidated Statements of Earnings.
|
2
|
Reported within Interest expense in the Consolidated Statements of Earnings. Effective January 1, 2019 hedge ineffectiveness will no longer be measured or recorded. See Note 2 Changes in Accounting Policies.
|
3
|
Reported within Transportation and other services revenues, Commodity sales revenues, Commodity costs and Operating and administrative expense in the Consolidated Statements of Earnings.
|
4
|
Reported within Operating and administrative expense in the Consolidated Statements of Earnings.
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||
|
20191
|
|
2018
|
|
|
20191
|
|
2018
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
||||
Unrealized gain/(loss) on derivative
|
—
|
|
3
|
|
|
—
|
|
(9
|
)
|
Unrealized gain/(loss) on hedged item
|
—
|
|
(3
|
)
|
|
—
|
|
8
|
|
Realized gain/(loss) on derivative
|
—
|
|
(3
|
)
|
|
—
|
|
(4
|
)
|
Realized gain/(loss) on hedged item
|
—
|
|
3
|
|
|
—
|
|
4
|
|
1
|
For the three and nine months ended September 30, 2019, there are no outstanding fair value hedges.
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
||||
Foreign exchange contracts1
|
(179
|
)
|
345
|
|
|
849
|
|
(356
|
)
|
Interest rate contracts2
|
—
|
|
6
|
|
|
178
|
|
4
|
|
Commodity contracts3
|
73
|
|
(113
|
)
|
|
(26
|
)
|
43
|
|
Other contracts4
|
(1
|
)
|
(8
|
)
|
|
4
|
|
(10
|
)
|
Total unrealized derivative fair value gain/(loss), net
|
(107
|
)
|
230
|
|
|
1,005
|
|
(319
|
)
|
1
|
For the respective nine months ended periods, reported within Transportation and other services revenues (2019 - $366 million gain; 2018 - $346 million loss) and Net foreign currency gain/(loss) (2019 - $483 million gain; 2018 - $10 million loss) in the Consolidated Statements of Earnings.
|
2
|
Reported as an (increase)/decrease within Interest expense in the Consolidated Statements of Earnings.
|
3
|
For the respective nine months ended periods, reported within Transportation and other services revenues (2019 - $15 million loss; 2018 - $16 million loss), Commodity sales (2019 - $418 million loss; 2018 - $42 million loss), Commodity costs (2019 - $382 million gain; 2018 - $90 million gain) and Operating and administrative expense (2019 - $25 million gain; 2018 - $11 million gain) in the Consolidated Statements of Earnings.
|
4
|
Reported within Operating and administrative expense in the Consolidated Statements of Earnings.
|
|
September 30,
2019 |
|
December 31,
2018 |
|
(millions of Canadian dollars)
|
|
|
||
Canadian financial institutions
|
38
|
|
28
|
|
United States financial institutions
|
68
|
|
107
|
|
European financial institutions
|
91
|
|
84
|
|
Asian financial institutions
|
7
|
|
6
|
|
Other1
|
151
|
|
337
|
|
|
355
|
|
562
|
|
1
|
Other is comprised of commodity clearing house and physical natural gas and crude oil counterparties.
|
September 30, 2019
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Gross
Derivative
Instruments
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
Current derivative assets
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
76
|
|
—
|
|
76
|
|
Interest rate contracts
|
—
|
|
1
|
|
—
|
|
1
|
|
Commodity contracts
|
9
|
|
44
|
|
132
|
|
185
|
|
|
9
|
|
121
|
|
132
|
|
262
|
|
Long-term derivative assets
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
140
|
|
—
|
|
140
|
|
Commodity contracts
|
—
|
|
23
|
|
12
|
|
35
|
|
Other contracts
|
—
|
|
2
|
|
—
|
|
2
|
|
|
—
|
|
165
|
|
12
|
|
177
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
Current derivative liabilities
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
(553
|
)
|
—
|
|
(553
|
)
|
Interest rate contracts
|
—
|
|
(258
|
)
|
—
|
|
(258
|
)
|
Commodity contracts
|
(2
|
)
|
(21
|
)
|
(117
|
)
|
(140
|
)
|
Other contracts
|
—
|
|
(1
|
)
|
—
|
|
(1
|
)
|
|
(2
|
)
|
(833
|
)
|
(117
|
)
|
(952
|
)
|
Long-term derivative liabilities
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
(1,536
|
)
|
—
|
|
(1,536
|
)
|
Interest rate contracts
|
—
|
|
(686
|
)
|
—
|
|
(686
|
)
|
Commodity contracts
|
—
|
|
(7
|
)
|
(91
|
)
|
(98
|
)
|
Other contracts
|
—
|
|
(2
|
)
|
—
|
|
(2
|
)
|
|
—
|
|
(2,231
|
)
|
(91
|
)
|
(2,322
|
)
|
Total net financial liabilities
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
(1,873
|
)
|
—
|
|
(1,873
|
)
|
Interest rate contracts
|
—
|
|
(943
|
)
|
—
|
|
(943
|
)
|
Commodity contracts
|
7
|
|
39
|
|
(64
|
)
|
(18
|
)
|
Other contracts
|
—
|
|
(1
|
)
|
—
|
|
(1
|
)
|
|
7
|
|
(2,778
|
)
|
(64
|
)
|
(2,835
|
)
|
December 31, 2018
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Gross
Derivative
Instruments
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
Current derivative assets
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
47
|
|
—
|
|
47
|
|
Interest rate contracts
|
—
|
|
22
|
|
—
|
|
22
|
|
Commodity contracts
|
24
|
|
45
|
|
360
|
|
429
|
|
|
24
|
|
114
|
|
360
|
|
498
|
|
Long-term derivative assets
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
62
|
|
—
|
|
62
|
|
Interest rate contracts
|
—
|
|
5
|
|
—
|
|
5
|
|
Commodity contracts
|
—
|
|
30
|
|
22
|
|
52
|
|
|
—
|
|
97
|
|
22
|
|
119
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
Current derivative liabilities
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
(615
|
)
|
—
|
|
(615
|
)
|
Interest rate contracts
|
—
|
|
(341
|
)
|
—
|
|
(341
|
)
|
Commodity contracts
|
(7
|
)
|
(28
|
)
|
(238
|
)
|
(273
|
)
|
Other contracts
|
—
|
|
(5
|
)
|
—
|
|
(5
|
)
|
|
(7
|
)
|
(989
|
)
|
(238
|
)
|
(1,234
|
)
|
Long-term derivative liabilities
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
(2,212
|
)
|
—
|
|
(2,212
|
)
|
Interest rate contracts
|
—
|
|
(201
|
)
|
—
|
|
(201
|
)
|
Commodity contracts
|
—
|
|
(23
|
)
|
(155
|
)
|
(178
|
)
|
Other contracts
|
—
|
|
(2
|
)
|
—
|
|
(2
|
)
|
|
—
|
|
(2,438
|
)
|
(155
|
)
|
(2,593
|
)
|
Total net financial liabilities
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
(2,718
|
)
|
—
|
|
(2,718
|
)
|
Interest rate contracts
|
—
|
|
(515
|
)
|
—
|
|
(515
|
)
|
Commodity contracts
|
17
|
|
24
|
|
(11
|
)
|
30
|
|
Other contracts
|
—
|
|
(7
|
)
|
—
|
|
(7
|
)
|
|
17
|
|
(3,216
|
)
|
(11
|
)
|
(3,210
|
)
|
September 30, 2019
|
Fair
Value
|
|
Unobservable
Input
|
Minimum
Price
|
|
Maximum
Price
|
|
Weighted
Average Price
|
|
Unit of
Measurement
|
(fair value in millions of Canadian dollars)
|
|
|
|
|
|
|
||||
Commodity contracts - financial1
|
|
|
|
|
|
|
||||
Natural gas
|
(22
|
)
|
Forward gas price
|
2.15
|
|
5.10
|
|
3.15
|
|
$/mmbtu2
|
Crude
|
30
|
|
Forward crude price
|
36.94
|
|
64.65
|
|
48.61
|
|
$/barrel
|
NGL
|
5
|
|
Forward NGL price
|
0.16
|
|
0.85
|
|
0.42
|
|
$/gallon
|
Power
|
(82
|
)
|
Forward power price
|
27.62
|
|
78.91
|
|
56.23
|
|
$/MW/H
|
Commodity contracts - physical1
|
|
|
|
|
|
|
||||
Natural gas
|
(23
|
)
|
Forward gas price
|
1.01
|
|
6.81
|
|
1.50
|
|
$/mmbtu2
|
Crude
|
27
|
|
Forward crude price
|
45.27
|
|
92.65
|
|
52.73
|
|
$/barrel
|
NGL
|
1
|
|
Forward NGL price
|
0.53
|
|
0.75
|
|
0.71
|
|
$/gallon
|
|
(64
|
)
|
|
|
|
|
|
1
|
Financial and physical forward commodity contracts are valued using a market approach valuation technique.
|
2
|
One million British thermal units (mmbtu).
|
|
Nine months ended
September 30, |
|||
|
2019
|
|
2018
|
|
(millions of Canadian dollars)
|
|
|
|
|
Level 3 net derivative liability at beginning of period
|
(11
|
)
|
(387
|
)
|
Total gain/(loss)
|
|
|
|
|
Included in earnings1
|
67
|
|
(146
|
)
|
Included in OCI
|
(22
|
)
|
—
|
|
Settlements
|
(98
|
)
|
163
|
|
Level 3 net derivative liability at end of period
|
(64
|
)
|
(370
|
)
|
1
|
Reported within Transportation and other services revenues, Commodity costs and Operating and administrative expense in the Consolidated Statements of Earnings.
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
||||
Service cost
|
50
|
|
46
|
|
|
152
|
|
162
|
|
Interest cost
|
51
|
|
39
|
|
|
152
|
|
126
|
|
Expected return on plan assets
|
(84
|
)
|
(72
|
)
|
|
(252
|
)
|
(234
|
)
|
Amortization of actuarial loss
|
8
|
|
6
|
|
|
24
|
|
21
|
|
Plan curtailments
|
—
|
|
—
|
|
|
—
|
|
2
|
|
Amortization of prior service costs
|
(1
|
)
|
—
|
|
|
(2
|
)
|
(1
|
)
|
Net periodic benefit costs
|
24
|
|
19
|
|
|
74
|
|
76
|
|
|
September 30, 2019
|
|
January 1,
2019
|
|
(millions of Canadian dollars, except lease term and discount rate)
|
|
|
||
Operating leases
|
|
|
||
Operating lease right-of-use assets, net1
|
733
|
|
771
|
|
|
|
|
||
Operating lease liabilities - current2
|
99
|
|
86
|
|
Operating lease liabilities - long-term3
|
705
|
|
770
|
|
Total operating lease liabilities
|
804
|
|
856
|
|
|
|
|
||
Weighted average remaining lease term
|
|
|
||
Operating leases
|
13 years
|
|
14 years
|
|
|
|
|
||
Weighted average discount rate
|
|
|
||
Operating leases
|
4.3
|
%
|
4.3
|
%
|
1
|
Right-of-use assets are reported under Deferred amounts and other assets in the Consolidated Statements of Financial Position.
|
2
|
Current lease liabilities are reported under Accounts payable and other in the Consolidated Statements of Financial Position.
|
3
|
Long-term lease liabilities are reported under Other long-term liabilities in the Consolidated Statements of Financial Position.
|
|
Operating leases
|
|
(millions of Canadian dollars)
|
|
|
20191
|
30
|
|
2020
|
126
|
|
2021
|
98
|
|
2022
|
92
|
|
2023
|
82
|
|
Thereafter
|
666
|
|
Total undiscounted lease payments
|
1,094
|
|
Less imputed interest
|
(290
|
)
|
Total operating lease commitments
|
804
|
|
1
|
For the three months remaining in the 2019 fiscal year.
|
|
Three months ended
September 30, 2019 |
|
Nine months ended
September 30, 2019 |
|
(millions of Canadian dollars)
|
|
|
||
Operating lease income
|
67
|
|
196
|
|
Variable lease income
|
77
|
|
262
|
|
Total lease income
|
144
|
|
458
|
|
|
Operating leases
|
|
(millions of Canadian dollars)
|
|
|
20191
|
64
|
|
2020
|
238
|
|
2021
|
200
|
|
2022
|
189
|
|
2023
|
178
|
|
Thereafter
|
2,448
|
|
Total undiscounted lease payments
|
3,317
|
|
1
|
For the three months remaining in the 2019 fiscal year.
|
1
|
As at September 30, 2019, the aggregate outstanding principal amount of SEP notes was approximately US$3.9 billion.
|
2
|
As at September 30, 2019, the aggregate outstanding principal amount of EEP notes was approximately US$4.0 billion.
|
USD Denominated1
|
CAD Denominated2
|
Senior Floating Rate Notes due 2020
|
4.530% Senior Notes due 2020
|
Senior Floating Rate Notes due 2020
|
4.850% Senior Notes due 2020
|
2.900% Senior Notes due 2022
|
4.260% Senior Notes due 2021
|
4.000% Senior Notes due 2023
|
3.160% Senior Notes due 2021
|
3.500% Senior Notes due 2024
|
4.850% Senior Notes due 2022
|
4.250% Senior Notes due 2026
|
3.190% Senior Notes due 2022
|
3.700% Senior Notes due 2027
|
3.940% Senior Notes due 2023
|
4.500% Senior Notes due 2044
|
3.940% Senior Notes due 2023
|
5.500% Senior Notes due 2046
|
3.950% Senior Notes due 2024
|
|
3.200% Senior Notes due 2027
|
|
6.100% Senior Notes due 2028
|
|
7.220% Senior Notes due 2030
|
|
7.200% Senior Notes due 2032
|
|
5.570% Senior Notes due 2035
|
|
5.750% Senior Notes due 2039
|
|
5.120% Senior Notes due 2040
|
|
4.240% Senior Notes due 2042
|
|
4.570% Senior Notes due 2044
|
|
4.870% Senior Notes due 2044
|
|
4.560% Senior Notes due 2064
|
1
|
As at September 30, 2019, the aggregate outstanding principal amount of the Enbridge United States dollar denominated notes was approximately US$5.9 billion.
|
2
|
As at September 30, 2019, the aggregate outstanding principal amount of the Enbridge Canadian dollar denominated notes was approximately $6.6 billion.
|
1.
|
Enbridge Inc., the Parent Issuer and Guarantor;
|
2.
|
SEP, a Subsidiary Issuer and Guarantor;
|
3.
|
EEP, a Subsidiary Issuer and Guarantor;
|
4.
|
Subsidiary Non-Guarantors, as defined herein;
|
5.
|
Consolidating and elimination entries required to consolidate the Parent Issuer and Guarantor and its subsidiaries, including the Subsidiary Issuers and Guarantors, and
|
6.
|
Enbridge Inc. and subsidiaries on a consolidated basis.
|
|
Parent Issuer and Guarantor
|
Subsidiary Issuer and Guarantor - SEP
|
Subsidiary Issuer and Guarantor - EEP
|
Subsidiary Non-Guarantors
|
Consolidating and elimination adjustments
|
Consolidated - Enbridge
|
||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Operating revenues
|
|
|
|
|
|
|
||||||
Commodity sales
|
—
|
|
—
|
|
—
|
|
7,396
|
|
—
|
|
7,396
|
|
Gas distribution sales
|
—
|
|
—
|
|
—
|
|
454
|
|
—
|
|
454
|
|
Transportation and other services
|
—
|
|
—
|
|
—
|
|
3,748
|
|
—
|
|
3,748
|
|
Total operating revenues
|
—
|
|
—
|
|
—
|
|
11,598
|
|
—
|
|
11,598
|
|
Operating Expenses
|
|
|
|
|
|
|
||||||
Commodity costs
|
—
|
|
—
|
|
—
|
|
7,216
|
|
—
|
|
7,216
|
|
Gas distribution costs
|
—
|
|
—
|
|
—
|
|
104
|
|
—
|
|
104
|
|
Operating and administrative
|
69
|
|
1
|
|
1
|
|
1,670
|
|
—
|
|
1,741
|
|
Depreciation and amortization
|
15
|
|
—
|
|
—
|
|
829
|
|
—
|
|
844
|
|
Impairment of long-lived assets
|
—
|
|
—
|
|
—
|
|
105
|
|
—
|
|
105
|
|
Total operating expenses
|
84
|
|
1
|
|
1
|
|
9,924
|
|
—
|
|
10,010
|
|
Operating income/(loss)
|
(84
|
)
|
(1
|
)
|
(1
|
)
|
1,674
|
|
—
|
|
1,588
|
|
Income from equity investments
|
2
|
|
35
|
|
—
|
|
297
|
|
(1
|
)
|
333
|
|
Equity earnings from consolidated subsidiaries
|
1,109
|
|
284
|
|
296
|
|
451
|
|
(2,140
|
)
|
—
|
|
Other
|
|
|
|
|
|
|
||||||
Net foreign currency gain/(loss)
|
(163
|
)
|
—
|
|
—
|
|
1
|
|
119
|
|
(43
|
)
|
Other, including other income from affiliates
|
512
|
|
—
|
|
46
|
|
177
|
|
(654
|
)
|
81
|
|
Interest expense
|
(299
|
)
|
(79
|
)
|
(139
|
)
|
(786
|
)
|
659
|
|
(644
|
)
|
Earnings before income taxes
|
1,077
|
|
239
|
|
202
|
|
1,814
|
|
(2,017
|
)
|
1,315
|
|
Income tax (expense)/recovery
|
(32
|
)
|
10
|
|
—
|
|
(325
|
)
|
92
|
|
(255
|
)
|
Earnings
|
1,045
|
|
249
|
|
202
|
|
1,489
|
|
(1,925
|
)
|
1,060
|
|
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
(15
|
)
|
(15
|
)
|
Earnings attributable to controlling interests
|
1,045
|
|
249
|
|
202
|
|
1,489
|
|
(1,940
|
)
|
1,045
|
|
Preference share dividends
|
(96
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(96
|
)
|
Earnings attributable to common shareholders
|
949
|
|
249
|
|
202
|
|
1,489
|
|
(1,940
|
)
|
949
|
|
Earnings
|
1,045
|
|
249
|
|
202
|
|
1,489
|
|
(1,925
|
)
|
1,060
|
|
Total other comprehensive income/(loss)
|
465
|
|
(46
|
)
|
8
|
|
162
|
|
(98
|
)
|
491
|
|
Comprehensive income
|
1,510
|
|
203
|
|
210
|
|
1,651
|
|
(2,023
|
)
|
1,551
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
(41
|
)
|
(41
|
)
|
Comprehensive income attributable to controlling interests
|
1,510
|
|
203
|
|
210
|
|
1,651
|
|
(2,064
|
)
|
1,510
|
|
|
Parent Issuer and Guarantor
|
Subsidiary Issuer and Guarantor - SEP
|
Subsidiary Issuer and Guarantor - EEP
|
Subsidiary Non-Guarantors
|
Consolidating and elimination adjustments
|
Consolidated - Enbridge
|
||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Operating revenues
|
|
|
|
|
|
|
||||||
Commodity sales
|
—
|
|
—
|
|
—
|
|
6,919
|
|
—
|
|
6,919
|
|
Gas distribution sales
|
—
|
|
—
|
|
—
|
|
478
|
|
—
|
|
478
|
|
Transportation and other services
|
—
|
|
—
|
|
—
|
|
3,948
|
|
—
|
|
3,948
|
|
Total operating revenues
|
—
|
|
—
|
|
—
|
|
11,345
|
|
—
|
|
11,345
|
|
Operating Expenses
|
|
|
|
|
|
|
||||||
Commodity costs
|
—
|
|
—
|
|
—
|
|
6,905
|
|
—
|
|
6,905
|
|
Gas distribution costs
|
—
|
|
—
|
|
—
|
|
112
|
|
—
|
|
112
|
|
Operating and administrative
|
56
|
|
8
|
|
4
|
|
1,604
|
|
(20
|
)
|
1,652
|
|
Depreciation and amortization
|
15
|
|
—
|
|
—
|
|
784
|
|
—
|
|
799
|
|
Impairment of long-lived assets
|
—
|
|
—
|
|
—
|
|
4
|
|
—
|
|
4
|
|
Impairment of goodwill
|
—
|
|
—
|
|
—
|
|
1,019
|
|
—
|
|
1,019
|
|
Total operating expenses
|
71
|
|
8
|
|
4
|
|
10,428
|
|
(20
|
)
|
10,491
|
|
Operating income/(loss)
|
(71
|
)
|
(8
|
)
|
(4
|
)
|
917
|
|
20
|
|
854
|
|
Income from equity investments
|
312
|
|
38
|
|
—
|
|
339
|
|
(311
|
)
|
378
|
|
Equity earnings/(losses) from consolidated subsidiaries
|
(272
|
)
|
527
|
|
238
|
|
613
|
|
(1,106
|
)
|
—
|
|
Other
|
|
|
|
|
|
|
||||||
Net foreign currency gain/(loss)
|
97
|
|
(2
|
)
|
—
|
|
(15
|
)
|
(23
|
)
|
57
|
|
Other, including other income/(expense) from affiliates
|
214
|
|
—
|
|
42
|
|
(57
|
)
|
(232
|
)
|
(33
|
)
|
Interest expense
|
(272
|
)
|
(77
|
)
|
(140
|
)
|
(423
|
)
|
216
|
|
(696
|
)
|
Earnings before income taxes
|
8
|
|
478
|
|
136
|
|
1,374
|
|
(1,436
|
)
|
560
|
|
Income tax expense
|
(4
|
)
|
—
|
|
(1
|
)
|
(309
|
)
|
(33
|
)
|
(347
|
)
|
Earnings
|
4
|
|
478
|
|
135
|
|
1,065
|
|
(1,469
|
)
|
213
|
|
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
(209
|
)
|
(209
|
)
|
Earnings attributable to controlling interests
|
4
|
|
478
|
|
135
|
|
1,065
|
|
(1,678
|
)
|
4
|
|
Preference share dividends
|
(94
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(94
|
)
|
Earnings attributable to common shareholders
|
(90
|
)
|
478
|
|
135
|
|
1,065
|
|
(1,678
|
)
|
(90
|
)
|
Earnings
|
4
|
|
478
|
|
135
|
|
1,065
|
|
(1,469
|
)
|
213
|
|
Total other comprehensive income
|
(707
|
)
|
15
|
|
15
|
|
(163
|
)
|
26
|
|
(814
|
)
|
Comprehensive income/(loss)
|
(703
|
)
|
493
|
|
150
|
|
902
|
|
(1,443
|
)
|
(601
|
)
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
(102
|
)
|
(102
|
)
|
Comprehensive income attributable to controlling interests
|
(703
|
)
|
493
|
|
150
|
|
902
|
|
(1,545
|
)
|
(703
|
)
|
|
Parent Issuer and Guarantor
|
Subsidiary Issuer and Guarantor - SEP
|
Subsidiary Issuer and Guarantor - EEP
|
Subsidiary Non-Guarantors
|
Consolidating and elimination adjustments
|
Consolidated - Enbridge
|
||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Operating revenues
|
|
|
|
|
|
|
||||||
Commodity sales
|
—
|
|
—
|
|
—
|
|
22,444
|
|
—
|
|
22,444
|
|
Gas distribution sales
|
—
|
|
—
|
|
—
|
|
3,085
|
|
—
|
|
3,085
|
|
Transportation and other services
|
—
|
|
—
|
|
—
|
|
12,188
|
|
—
|
|
12,188
|
|
Total operating revenues
|
—
|
|
—
|
|
—
|
|
37,717
|
|
—
|
|
37,717
|
|
Operating Expenses
|
|
|
|
|
|
|
||||||
Commodity costs
|
—
|
|
—
|
|
—
|
|
21,910
|
|
—
|
|
21,910
|
|
Gas distribution costs
|
—
|
|
—
|
|
—
|
|
1,623
|
|
—
|
|
1,623
|
|
Operating and administrative
|
104
|
|
4
|
|
—
|
|
4,953
|
|
—
|
|
5,061
|
|
Depreciation and amortization
|
48
|
|
—
|
|
—
|
|
2,478
|
|
—
|
|
2,526
|
|
Impairment of long-lived assets
|
—
|
|
—
|
|
—
|
|
105
|
|
—
|
|
105
|
|
Total operating expenses
|
152
|
|
4
|
|
—
|
|
31,069
|
|
—
|
|
31,225
|
|
Operating income/(loss)
|
(152
|
)
|
(4
|
)
|
—
|
|
6,648
|
|
—
|
|
6,492
|
|
Income from equity investments
|
69
|
|
97
|
|
—
|
|
1,059
|
|
(66
|
)
|
1,159
|
|
Equity earnings from consolidated subsidiaries
|
3,507
|
|
1,026
|
|
810
|
|
1,417
|
|
(6,760
|
)
|
—
|
|
Other
|
|
|
|
|
|
|
||||||
Net foreign currency gain/(loss)
|
1,314
|
|
—
|
|
—
|
|
(75
|
)
|
(928
|
)
|
311
|
|
Other, including other income from affiliates
|
1,306
|
|
1
|
|
140
|
|
412
|
|
(1,667
|
)
|
192
|
|
Interest expense
|
(929
|
)
|
(257
|
)
|
(433
|
)
|
(2,059
|
)
|
1,712
|
|
(1,966
|
)
|
Earnings before income taxes
|
5,115
|
|
863
|
|
517
|
|
7,402
|
|
(7,709
|
)
|
6,188
|
|
Income tax (expense)/recovery
|
(252
|
)
|
37
|
|
—
|
|
(1,364
|
)
|
304
|
|
(1,275
|
)
|
Earnings
|
4,863
|
|
900
|
|
517
|
|
6,038
|
|
(7,405
|
)
|
4,913
|
|
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
(50
|
)
|
(50
|
)
|
Earnings attributable to controlling interests
|
4,863
|
|
900
|
|
517
|
|
6,038
|
|
(7,455
|
)
|
4,863
|
|
Preference share dividends
|
(287
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(287
|
)
|
Earnings attributable to common shareholders
|
4,576
|
|
900
|
|
517
|
|
6,038
|
|
(7,455
|
)
|
4,576
|
|
Earnings
|
4,863
|
|
900
|
|
517
|
|
6,038
|
|
(7,405
|
)
|
4,913
|
|
Total other comprehensive income/(loss)
|
(2,138
|
)
|
(90
|
)
|
37
|
|
(706
|
)
|
686
|
|
(2,211
|
)
|
Comprehensive income
|
2,725
|
|
810
|
|
554
|
|
5,332
|
|
(6,719
|
)
|
2,702
|
|
Comprehensive loss attributable to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
23
|
|
23
|
|
Comprehensive income attributable to controlling interests
|
2,725
|
|
810
|
|
554
|
|
5,332
|
|
(6,696
|
)
|
2,725
|
|
|
Parent Issuer and Guarantor
|
Subsidiary Issuer and Guarantor - SEP
|
Subsidiary Issuer and Guarantor - EEP
|
Subsidiary Non-Guarantors
|
Consolidating and elimination adjustments
|
Consolidated - Enbridge
|
||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Operating revenues
|
|
|
|
|
|
|
||||||
Commodity sales
|
—
|
|
—
|
|
—
|
|
20,638
|
|
—
|
|
20,638
|
|
Gas distribution sales
|
—
|
|
—
|
|
—
|
|
3,260
|
|
—
|
|
3,260
|
|
Transportation and other services
|
—
|
|
—
|
|
—
|
|
10,918
|
|
—
|
|
10,918
|
|
Total operating revenues
|
—
|
|
—
|
|
—
|
|
34,816
|
|
—
|
|
34,816
|
|
Operating Expenses
|
|
|
|
|
|
|
||||||
Commodity costs
|
—
|
|
—
|
|
—
|
|
20,180
|
|
—
|
|
20,180
|
|
Gas distribution costs
|
—
|
|
—
|
|
—
|
|
1,857
|
|
—
|
|
1,857
|
|
Operating and administrative
|
156
|
|
12
|
|
13
|
|
4,768
|
|
(20
|
)
|
4,929
|
|
Depreciation and amortization
|
44
|
|
—
|
|
—
|
|
2,408
|
|
—
|
|
2,452
|
|
Impairment of long lived assets
|
—
|
|
—
|
|
—
|
|
1,076
|
|
—
|
|
1,076
|
|
Impairment of goodwill
|
—
|
|
—
|
|
—
|
|
1,019
|
|
—
|
|
1,019
|
|
Total operating expenses
|
200
|
|
12
|
|
13
|
|
31,308
|
|
(20
|
)
|
31,513
|
|
Operating income/(loss)
|
(200
|
)
|
(12
|
)
|
(13
|
)
|
3,508
|
|
20
|
|
3,303
|
|
Income from equity investments
|
388
|
|
108
|
|
—
|
|
962
|
|
(382
|
)
|
1,076
|
|
Equity earnings from consolidated subsidiaries
|
1,722
|
|
1,607
|
|
670
|
|
1,836
|
|
(5,835
|
)
|
—
|
|
Other
|
|
|
|
|
|
|
||||||
Net foreign currency gain/(loss)
|
(273
|
)
|
2
|
|
—
|
|
(8
|
)
|
108
|
|
(171
|
)
|
Other, including other income from affiliates
|
732
|
|
2
|
|
107
|
|
(21
|
)
|
(759
|
)
|
61
|
|
Interest expense
|
(801
|
)
|
(221
|
)
|
(413
|
)
|
(1,379
|
)
|
772
|
|
(2,042
|
)
|
Earnings before income taxes
|
1,568
|
|
1,486
|
|
351
|
|
4,898
|
|
(6,076
|
)
|
2,227
|
|
Income tax (expense)/recovery
|
130
|
|
—
|
|
(1
|
)
|
(291
|
)
|
(15
|
)
|
(177
|
)
|
Earnings
|
1,698
|
|
1,486
|
|
350
|
|
4,607
|
|
(6,091
|
)
|
2,050
|
|
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
(352
|
)
|
(352
|
)
|
Earnings attributable to controlling interests
|
1,698
|
|
1,486
|
|
350
|
|
4,607
|
|
(6,443
|
)
|
1,698
|
|
Preference share dividends
|
(272
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(272
|
)
|
Earnings attributable to common shareholders
|
1,426
|
|
1,486
|
|
350
|
|
4,607
|
|
(6,443
|
)
|
1,426
|
|
Earnings
|
1,698
|
|
1,486
|
|
350
|
|
4,607
|
|
(6,091
|
)
|
2,050
|
|
Total other comprehensive income
|
1,543
|
|
45
|
|
29
|
|
252
|
|
(132
|
)
|
1,737
|
|
Comprehensive income
|
3,241
|
|
1,531
|
|
379
|
|
4,859
|
|
(6,223
|
)
|
3,787
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
(546
|
)
|
(546
|
)
|
Comprehensive income attributable to controlling interests
|
3,241
|
|
1,531
|
|
379
|
|
4,859
|
|
(6,769
|
)
|
3,241
|
|
|
Parent Issuer and Guarantor
|
Subsidiary Issuer and Guarantor - SEP
|
Subsidiary Issuer and Guarantor - EEP
|
Subsidiary Non-Guarantors
|
Consolidating and elimination adjustments
|
Consolidated - Enbridge
|
||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Current assets
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
—
|
|
6
|
|
1
|
|
808
|
|
—
|
|
815
|
|
Restricted cash
|
9
|
|
—
|
|
—
|
|
48
|
|
—
|
|
57
|
|
Accounts receivable and other
|
164
|
|
1
|
|
7
|
|
5,661
|
|
—
|
|
5,833
|
|
Accounts receivable from affiliates
|
783
|
|
3
|
|
28
|
|
1,370
|
|
(2,095
|
)
|
89
|
|
Short-term loans receivable from affiliates
|
3,992
|
|
—
|
|
5,175
|
|
5,160
|
|
(14,327
|
)
|
—
|
|
Inventory
|
—
|
|
—
|
|
—
|
|
1,261
|
|
—
|
|
1,261
|
|
|
4,948
|
|
10
|
|
5,211
|
|
14,308
|
|
(16,422
|
)
|
8,055
|
|
Property, plant and equipment, net
|
202
|
|
—
|
|
—
|
|
94,177
|
|
—
|
|
94,379
|
|
Long-term loans receivable from affiliates
|
51,727
|
|
73
|
|
2,437
|
|
40,637
|
|
(94,874
|
)
|
—
|
|
Investments in subsidiaries
|
79,746
|
|
18,903
|
|
6,077
|
|
15,319
|
|
(120,045
|
)
|
—
|
|
Long-term investments
|
1,752
|
|
950
|
|
—
|
|
14,710
|
|
(581
|
)
|
16,831
|
|
Restricted long-term investments
|
—
|
|
—
|
|
—
|
|
413
|
|
—
|
|
413
|
|
Deferred amounts and other assets
|
1,527
|
|
1
|
|
4
|
|
9,709
|
|
(1,375
|
)
|
9,866
|
|
Intangible assets, net
|
232
|
|
—
|
|
—
|
|
1,984
|
|
—
|
|
2,216
|
|
Goodwill
|
—
|
|
—
|
|
—
|
|
33,668
|
|
—
|
|
33,668
|
|
Deferred income taxes
|
681
|
|
—
|
|
—
|
|
532
|
|
—
|
|
1,213
|
|
Total assets
|
140,815
|
|
19,937
|
|
13,729
|
|
225,457
|
|
(233,297
|
)
|
166,641
|
|
|
|
|
|
|
|
|
||||||
Liabilities and equity
|
|
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
|
||||||
Short-term borrowings
|
—
|
|
—
|
|
—
|
|
1,269
|
|
—
|
|
1,269
|
|
Accounts payable and other
|
921
|
|
31
|
|
2
|
|
6,376
|
|
(200
|
)
|
7,130
|
|
Accounts payable to affiliates
|
842
|
|
1
|
|
1,384
|
|
(85
|
)
|
(2,095
|
)
|
47
|
|
Interest payable
|
222
|
|
24
|
|
89
|
|
231
|
|
—
|
|
566
|
|
Short-term loans payable to affiliates
|
367
|
|
2,437
|
|
2,356
|
|
9,167
|
|
(14,327
|
)
|
—
|
|
Current portion of long-term debt
|
2,092
|
|
529
|
|
662
|
|
1,253
|
|
—
|
|
4,536
|
|
|
4,444
|
|
3,022
|
|
4,493
|
|
18,211
|
|
(16,622
|
)
|
13,548
|
|
Long-term debt
|
25,232
|
|
4,526
|
|
4,528
|
|
26,593
|
|
—
|
|
60,879
|
|
Other long-term liabilities
|
2,361
|
|
35
|
|
21
|
|
8,391
|
|
(1,375
|
)
|
9,433
|
|
Long-term loans payable to affiliates
|
39,936
|
|
|
|
1,456
|
|
53,482
|
|
(94,874
|
)
|
—
|
|
Deferred income taxes
|
—
|
|
266
|
|
—
|
|
14,218
|
|
(4,379
|
)
|
10,105
|
|
|
71,973
|
|
7,849
|
|
10,498
|
|
120,895
|
|
(117,250
|
)
|
93,965
|
|
Equity
|
|
|
|
|
|
|
||||||
Controlling interests1
|
68,842
|
|
12,088
|
|
3,231
|
|
104,562
|
|
(119,436
|
)
|
69,287
|
|
Noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
3,389
|
|
3,389
|
|
|
68,842
|
|
12,088
|
|
3,231
|
|
104,562
|
|
(116,047
|
)
|
72,676
|
|
Total liabilities and equity
|
140,815
|
|
19,937
|
|
13,729
|
|
225,457
|
|
(233,297
|
)
|
166,641
|
|
|
Parent Issuer and Guarantor
|
Subsidiary Issuer and Guarantor - SEP
|
Subsidiary Issuer and Guarantor - EEP
|
Subsidiary Non-Guarantors
|
Consolidating and elimination adjustments
|
Consolidated - Enbridge
|
||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Current assets
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
—
|
|
16
|
|
—
|
|
502
|
|
—
|
|
518
|
|
Restricted cash
|
9
|
|
—
|
|
—
|
|
110
|
|
—
|
|
119
|
|
Accounts receivable and other
|
283
|
|
15
|
|
8
|
|
6,211
|
|
—
|
|
6,517
|
|
Accounts receivable from affiliates
|
726
|
|
—
|
|
13
|
|
(142
|
)
|
(518
|
)
|
79
|
|
Short-term loans receivable from affiliates
|
3,943
|
|
—
|
|
3,689
|
|
653
|
|
(8,285
|
)
|
—
|
|
Inventory
|
—
|
|
—
|
|
—
|
|
1,339
|
|
—
|
|
1,339
|
|
|
4,961
|
|
31
|
|
3,710
|
|
8,673
|
|
(8,803
|
)
|
8,572
|
|
Property, plant and equipment, net
|
140
|
|
—
|
|
—
|
|
94,400
|
|
—
|
|
94,540
|
|
Long-term loans receivable from affiliates
|
10,318
|
|
73
|
|
2,539
|
|
1,344
|
|
(14,274
|
)
|
—
|
|
Investments in subsidiaries
|
78,474
|
|
19,777
|
|
6,363
|
|
15,567
|
|
(120,181
|
)
|
—
|
|
Long-term investments
|
4,561
|
|
987
|
|
—
|
|
14,841
|
|
(3,682
|
)
|
16,707
|
|
Restricted long-term investments
|
—
|
|
—
|
|
—
|
|
323
|
|
—
|
|
323
|
|
Deferred amounts and other assets
|
1,700
|
|
9
|
|
17
|
|
8,558
|
|
(1,726
|
)
|
8,558
|
|
Intangible assets, net
|
234
|
|
—
|
|
—
|
|
2,138
|
|
—
|
|
2,372
|
|
Goodwill
|
—
|
|
—
|
|
—
|
|
34,459
|
|
—
|
|
34,459
|
|
Deferred income taxes
|
817
|
|
—
|
|
—
|
|
229
|
|
328
|
|
1,374
|
|
Total assets
|
101,205
|
|
20,877
|
|
12,629
|
|
180,532
|
|
(148,338
|
)
|
166,905
|
|
|
|
|
|
|
|
|
||||||
Liabilities and equity
|
|
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
|
||||||
Short-term borrowings
|
—
|
|
—
|
|
—
|
|
1,024
|
|
—
|
|
1,024
|
|
Accounts payable and other
|
2,742
|
|
7
|
|
34
|
|
7,086
|
|
(6
|
)
|
9,863
|
|
Accounts payable to affiliates
|
946
|
|
233
|
|
56
|
|
(677
|
)
|
(518
|
)
|
40
|
|
Interest payable
|
283
|
|
56
|
|
105
|
|
225
|
|
—
|
|
669
|
|
Short-term loans payable to affiliates
|
426
|
|
682
|
|
—
|
|
7,177
|
|
(8,285
|
)
|
—
|
|
Current portion of long-term debt
|
1,853
|
|
—
|
|
683
|
|
723
|
|
—
|
|
3,259
|
|
|
6,250
|
|
978
|
|
878
|
|
15,558
|
|
(8,809
|
)
|
14,855
|
|
Long-term debt
|
22,893
|
|
7,276
|
|
6,943
|
|
23,215
|
|
—
|
|
60,327
|
|
Other long-term liabilities
|
2,428
|
|
2
|
|
30
|
|
8,100
|
|
(1,726
|
)
|
8,834
|
|
Long-term loans payable to affiliates
|
76
|
|
—
|
|
1,502
|
|
12,696
|
|
(14,274
|
)
|
—
|
|
Deferred income taxes
|
—
|
|
331
|
|
—
|
|
13,523
|
|
(4,400
|
)
|
9,454
|
|
|
31,647
|
|
8,587
|
|
9,353
|
|
73,092
|
|
(29,209
|
)
|
93,470
|
|
Equity
|
|
|
|
|
|
|
||||||
Controlling interests1
|
69,558
|
|
12,290
|
|
3,276
|
|
107,440
|
|
(123,094
|
)
|
69,470
|
|
Noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
3,965
|
|
3,965
|
|
|
69,558
|
|
12,290
|
|
3,276
|
|
107,440
|
|
(119,129
|
)
|
73,435
|
|
Total liabilities and equity
|
101,205
|
|
20,877
|
|
12,629
|
|
180,532
|
|
(148,338
|
)
|
166,905
|
|
|
Parent Issuer and Guarantor
|
Subsidiary Issuer and Guarantor - SEP
|
Subsidiary Issuer and Guarantor - EEP
|
Subsidiary Non-Guarantors
|
Consolidating and elimination adjustments
|
Consolidated - Enbridge
|
||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
1,766
|
|
1,305
|
|
1,027
|
|
6,676
|
|
(3,369
|
)
|
7,405
|
|
Investing activities
|
|
|
|
|
|
|
||||||
Capital expenditures
|
(56
|
)
|
—
|
|
—
|
|
(3,872
|
)
|
—
|
|
(3,928
|
)
|
Long-term investments and restricted long-term investments
|
(19
|
)
|
(10
|
)
|
—
|
|
(989
|
)
|
—
|
|
(1,018
|
)
|
Distributions from equity investments in excess of cumulative earnings
|
—
|
|
17
|
|
850
|
|
268
|
|
(850
|
)
|
285
|
|
Additions to intangible assets
|
(55
|
)
|
—
|
|
—
|
|
(81
|
)
|
—
|
|
(136
|
)
|
Affiliate loans, net
|
—
|
|
—
|
|
—
|
|
(232
|
)
|
—
|
|
(232
|
)
|
Contributions to subsidiaries
|
(2,876
|
)
|
—
|
|
(8
|
)
|
—
|
|
2,884
|
|
—
|
|
Return of share capital from subsidiary companies
|
4,921
|
|
—
|
|
—
|
|
—
|
|
(4,921
|
)
|
—
|
|
Advances to affiliates
|
(47,536
|
)
|
—
|
|
(2,088
|
)
|
(56,349
|
)
|
105,973
|
|
—
|
|
Repayment of advances to affiliates
|
5,858
|
|
—
|
|
501
|
|
12,367
|
|
(18,726
|
)
|
—
|
|
Net cash (used in)/provided by investing activities
|
(39,763
|
)
|
7
|
|
(745
|
)
|
(48,888
|
)
|
84,360
|
|
(5,029
|
)
|
Financing activities
|
|
|
|
|
|
|
||||||
Net change in short-term borrowings
|
—
|
|
—
|
|
—
|
|
245
|
|
—
|
|
245
|
|
Net change in commercial paper and credit facility draws
|
4,342
|
|
(2,011
|
)
|
(1,017
|
)
|
2,051
|
|
—
|
|
3,365
|
|
Debenture and term note issues, net of issue costs
|
—
|
|
—
|
|
—
|
|
2,553
|
|
—
|
|
2,553
|
|
Debenture and term note repayments
|
(1,450
|
)
|
—
|
|
(1,189
|
)
|
(355
|
)
|
—
|
|
(2,994
|
)
|
Contributions from noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
10
|
|
10
|
|
Distributions to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
(194
|
)
|
(194
|
)
|
Contributions from redeemable noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Distributions to redeemable noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Contributions from parents
|
—
|
|
—
|
|
—
|
|
2,884
|
|
(2,884
|
)
|
—
|
|
Distributions to parents
|
—
|
|
(1,014
|
)
|
(489
|
)
|
(7,821
|
)
|
9,324
|
|
—
|
|
Redemption of preferred shares
|
—
|
|
—
|
|
—
|
|
(300
|
)
|
—
|
|
(300
|
)
|
Common shares issued
|
18
|
|
—
|
|
—
|
|
—
|
|
—
|
|
18
|
|
Preference share dividends
|
(287
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(287
|
)
|
Common share dividends
|
(4,480
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(4,480
|
)
|
Advances from affiliates
|
46,917
|
|
5,091
|
|
4,341
|
|
49,624
|
|
(105,973
|
)
|
—
|
|
Repayment of advances from affiliates
|
(7,063
|
)
|
(3,383
|
)
|
(1,921
|
)
|
(6,359
|
)
|
18,726
|
|
—
|
|
Other
|
—
|
|
(5
|
)
|
(6
|
)
|
(49
|
)
|
—
|
|
(60
|
)
|
Net cash provided by/(used in) financing activities
|
37,997
|
|
(1,322
|
)
|
(281
|
)
|
42,473
|
|
(80,991
|
)
|
(2,124
|
)
|
Effect of translation of foreign denominated cash and cash equivalents and restricted cash
|
—
|
|
—
|
|
—
|
|
(17
|
)
|
—
|
|
(17
|
)
|
Net increase/(decrease) in cash and cash equivalents and restricted cash
|
—
|
|
(10
|
)
|
1
|
|
244
|
|
—
|
|
235
|
|
Cash and cash equivalents and restricted cash at beginning of period
|
9
|
|
16
|
|
—
|
|
612
|
|
—
|
|
637
|
|
Cash and cash equivalents and restricted cash at end of period
|
9
|
|
6
|
|
1
|
|
856
|
|
—
|
|
872
|
|
|
Parent Issuer and Guarantor
|
Subsidiary Issuer and Guarantor - SEP
|
Subsidiary Issuer and Guarantor - EEP
|
Subsidiary Non-Guarantors
|
Consolidating and elimination adjustments
|
Consolidated - Enbridge
|
||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Net cash (used in)/provided by operating activities
|
1,449
|
|
1,536
|
|
(298
|
)
|
7,901
|
|
(2,589
|
)
|
7,999
|
|
Investing activities
|
|
|
|
|
|
|
||||||
Capital expenditures
|
(17
|
)
|
—
|
|
—
|
|
(4,567
|
)
|
—
|
|
(4,584
|
)
|
Long-term investments and restricted long-term investments
|
(69
|
)
|
(12
|
)
|
—
|
|
(1,077
|
)
|
67
|
|
(1,091
|
)
|
Distributions from equity investments in excess of cumulative earnings
|
65
|
|
29
|
|
793
|
|
1,214
|
|
(858
|
)
|
1,243
|
|
Additions to intangible assets
|
(33
|
)
|
—
|
|
—
|
|
(458
|
)
|
—
|
|
(491
|
)
|
Affiliate loans, net
|
—
|
|
—
|
|
—
|
|
(50
|
)
|
—
|
|
(50
|
)
|
Proceeds from dispositions
|
—
|
|
—
|
|
—
|
|
1,913
|
|
—
|
|
1,913
|
|
Reimbursement of capital expenditures
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Contributions to subsidiaries
|
(7,179
|
)
|
(78
|
)
|
(10
|
)
|
—
|
|
7,267
|
|
—
|
|
Return of share capital from subsidiary companies
|
3,624
|
|
—
|
|
—
|
|
—
|
|
(3,624
|
)
|
—
|
|
Advances to affiliates
|
(5,030
|
)
|
—
|
|
(1,206
|
)
|
(3,380
|
)
|
9,616
|
|
—
|
|
Repayment of advances to affiliates
|
7,395
|
|
515
|
|
1,270
|
|
2,290
|
|
(11,470
|
)
|
—
|
|
Other
|
—
|
|
—
|
|
—
|
|
(12
|
)
|
—
|
|
(12
|
)
|
Net cash (used in)/provided by investing activities
|
(1,244
|
)
|
454
|
|
847
|
|
(4,127
|
)
|
998
|
|
(3,072
|
)
|
Financing activities
|
|
|
|
|
|
|
||||||
Net change in short-term borrowings
|
—
|
|
—
|
|
—
|
|
(196
|
)
|
—
|
|
(196
|
)
|
Net change in commercial paper and credit facility draws
|
(341
|
)
|
(758
|
)
|
286
|
|
(1,545
|
)
|
—
|
|
(2,358
|
)
|
Debenture and term note issues, net of issue costs
|
2,556
|
|
—
|
|
—
|
|
981
|
|
—
|
|
3,537
|
|
Debenture and term note repayments
|
—
|
|
(644
|
)
|
(509
|
)
|
(2,604
|
)
|
—
|
|
(3,757
|
)
|
Sale of noncontrolling interest in subsidiary
|
—
|
|
—
|
|
—
|
|
1,289
|
|
—
|
|
1,289
|
|
Contributions from noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
23
|
|
23
|
|
Distributions to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
(637
|
)
|
(637
|
)
|
Contributions from redeemable noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
62
|
|
62
|
|
Distributions to redeemable noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
(264
|
)
|
(264
|
)
|
Contributions from parents
|
—
|
|
—
|
|
—
|
|
7,267
|
|
(7,267
|
)
|
—
|
|
Distributions to parents
|
—
|
|
(1,407
|
)
|
(499
|
)
|
(5,914
|
)
|
7,820
|
|
—
|
|
Common shares issued
|
17
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17
|
|
Preference share dividends
|
(268
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(268
|
)
|
Common share dividends
|
(2,254
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,254
|
)
|
Advances from affiliates
|
535
|
|
821
|
|
2,024
|
|
6,236
|
|
(9,616
|
)
|
—
|
|
Repayment of advances from affiliates
|
(443
|
)
|
—
|
|
(1,847
|
)
|
(9,180
|
)
|
11,470
|
|
—
|
|
Other
|
—
|
|
(6
|
)
|
(3
|
)
|
4
|
|
—
|
|
(5
|
)
|
Net cash provided by/(used in) financing activities
|
(198
|
)
|
(1,994
|
)
|
(548
|
)
|
(3,662
|
)
|
1,591
|
|
(4,811
|
)
|
Effect of translation of foreign denominated cash and cash equivalents and restricted cash
|
—
|
|
—
|
|
—
|
|
23
|
|
—
|
|
23
|
|
Net increase/(decrease) in cash and cash equivalents and restricted cash
|
7
|
|
(4
|
)
|
1
|
|
135
|
|
—
|
|
139
|
|
Cash and cash equivalents and restricted cash at beginning of period
|
2
|
|
14
|
|
—
|
|
571
|
|
—
|
|
587
|
|
Cash and cash equivalents and restricted cash at end of period
|
9
|
|
10
|
|
1
|
|
706
|
|
—
|
|
726
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
(millions of Canadian dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Segment earnings/(loss) before interest, income taxes and depreciation and amortization
|
|
|
|
|
|
||||
Liquids Pipelines
|
1,646
|
|
1,875
|
|
|
5,710
|
|
4,353
|
|
Gas Transmission and Midstream
|
772
|
|
(60
|
)
|
|
2,733
|
|
1,080
|
|
Gas Distribution
|
252
|
|
256
|
|
|
1,304
|
|
1,262
|
|
Renewable Power Generation and Transmission
|
82
|
|
51
|
|
|
300
|
|
286
|
|
Energy Services
|
91
|
|
(96
|
)
|
|
318
|
|
108
|
|
Eliminations and Other
|
(40
|
)
|
29
|
|
|
315
|
|
(368
|
)
|
|
|
|
|
|
|
||||
Depreciation and amortization
|
(844
|
)
|
(799
|
)
|
|
(2,526
|
)
|
(2,452
|
)
|
Interest expense
|
(644
|
)
|
(696
|
)
|
|
(1,966
|
)
|
(2,042
|
)
|
Income tax expense
|
(255
|
)
|
(347
|
)
|
|
(1,275
|
)
|
(177
|
)
|
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests
|
(15
|
)
|
(209
|
)
|
|
(50
|
)
|
(352
|
)
|
Preference share dividends
|
(96
|
)
|
(94
|
)
|
|
(287
|
)
|
(272
|
)
|
Earnings/(loss) attributable to common shareholders
|
949
|
|
(90
|
)
|
|
4,576
|
|
1,426
|
|
Earnings/(loss) per common share
|
0.47
|
|
(0.05
|
)
|
|
2.27
|
|
0.84
|
|
Diluted earnings/(loss) per common share
|
0.47
|
|
(0.05
|
)
|
|
2.27
|
|
0.84
|
|
•
|
the absence in 2019 of a goodwill impairment charge of $1,019 million after-tax attributable to us in 2018 resulting from the classification of our Canadian natural gas gathering and processing businesses as held for sale;
|
•
|
the absence in 2019 of a loss of $74 million ($117 million after-tax attributable to us) in 2018 resulting from the sale of Midcoast Operating, L.P. and its subsidiaries (together, MOLP); and
|
•
|
the absence in 2019 of asset monetization transaction costs of $45 million ($49 million after-tax attributable to us) recorded in 2018 attributable to divestiture activity in the quarter.
|
•
|
a non-cash, unrealized derivative fair value loss of $79 million ($52 million after-tax attributable to us) in 2019, compared with a gain of $264 million ($150 million after-tax attributable to us) in 2018, reflecting net fair value gains and losses arising from changes in the mark-to-market value of derivative financial instruments used to manage foreign exchange and commodity prices risks;
|
•
|
a loss of $62 million ($47 million after-tax attributable to us) in 2019 related to asset write-down and goodwill impairment losses at our equity investee, DCP Midstream, LLC.; and
|
•
|
a loss of $105 million ($79 million after-tax attributable to us) in 2019 resulting from the write-off of project costs related to the Access Northeast pipeline project.
|
•
|
stronger contributions from our Liquids Pipelines segment due to a higher International Joint Tariff (IJT) Benchmark Toll and higher Mainline System ex-Gretna throughput driven by an increase in supply and continuous capacity optimization;
|
•
|
increased earnings from our Liquids Pipelines segment due to higher Flanagan South Pipeline, Seaway Crude Pipeline System and Bakken Pipeline System throughput period-over-period;
|
•
|
contributions from new Gas Transmission and Midstream assets placed into service in the fourth quarter of 2018; and
|
•
|
lower earnings attributable to noncontrolling interests in 2019 following the completion of the buy-in of our sponsored vehicles in the fourth quarter of 2018.
|
•
|
the absence in 2019 of earnings from MOLP and the provincially regulated portion of our Canadian gas gathering and processing businesses which were sold in the second half of 2018; and
|
•
|
higher operating costs on our Gas Transmission and Midstream assets primarily due to higher pipeline integrity costs.
|
•
|
the absence in 2019 of a goodwill impairment charge of $1,019 million after-tax attributable to us in 2018 resulting from the classification of our Canadian natural gas gathering and processing businesses as held for sale;
|
•
|
the absence in 2019 of a loss of $913 million ($701 million after-tax attributable to us) in 2018 on MOLP resulting from a revision to the fair value of the assets held for sale based on the sale price;
|
•
|
the absence in 2019 of a loss of $74 million ($117 million after-tax attributable to us) in 2018 resulting from the sale of MOLP;
|
•
|
the absence in 2019 of a loss of $154 million ($95 million after-tax attributable to us) in 2018 related to the Line 10 crude oil pipeline, which is a component of our Mainline System, resulting from its classification as an asset held for sale and the subsequent measurement at the lower of carrying value or fair value less costs to sell;
|
•
|
a non-cash, unrealized derivative fair value gain of $1,052 million ($779 million after-tax attributable to us) in 2019, compared with a loss of $295 million ($146 million after-tax attributable to us) in 2018, reflecting net fair value gains and losses arising from changes in the mark-to-market value of derivative financial instruments used to manage foreign exchange and commodity prices risks;
|
•
|
employee severance, transition and transformation costs of $88 million ($78 million after-tax attributable to us) in 2019, compared with $143 million ($137 million after-tax attributable to us) in 2018; and
|
•
|
the absence in 2019 of asset monetization transaction costs of $65 million ($64 million after-tax attributable to us) recorded in 2018 attributable to divestiture activity in the period.
|
•
|
a non-cash, write-down of crude oil and natural gas inventories to the lower of cost or market in our Energy Services business segment of $171 million ($131 million after-tax attributable to us) compared to $23 million ($17 million after-tax attributable to us) in 2018;
|
•
|
a loss of $62 million ($47 million after-tax attributable to us) in 2019 related to asset write-down and goodwill impairment losses at our equity investee, DCP Midstream, LLC.;
|
•
|
a loss of $105 million ($79 million after-tax attributable to us) in 2019 resulting from the write-off of project costs related to the Access Northeast pipeline project;
|
•
|
the absence in 2019 of a gain of $63 million after-tax in 2018 that resulted from the impact of the Tax Cuts and Jobs Act on our United States Renewable Power Generation and Transmission assets; and
|
•
|
the absence in 2019 of a deferred income tax recovery of $267 million ($196 million attributable to us) in 2018 related to a change in the assertion for the investment in Canadian renewable energy generation assets.
|
•
|
stronger contributions from our Liquids Pipelines segment due to a higher IJT Benchmark Toll and higher Mainline System ex-Gretna throughput driven by an increase in supply and continuous capacity optimization;
|
•
|
increased earnings from our Liquids Pipelines segment due to higher Flanagan South Pipeline, Seaway Crude Pipeline System and Bakken Pipeline System throughput period-over-period;
|
•
|
contributions from new Gas Transmission and Midstream assets placed into service in the fourth quarter of 2018;
|
•
|
increased earnings from our Gas Distribution segment due to colder weather experienced in our franchise areas, higher distribution rates and customer base, and the absence in 2019 of forecasted earnings sharing which was recorded in 2018;
|
•
|
increased earnings from our Energy Services segment due to the widening of certain location differentials during the second half of 2018 and the first quarter of 2019, which increased opportunities to generate profitable transportation margins that were realized during 2019;
|
•
|
lower earnings attributable to noncontrolling interests in 2019 following the completion of the buy-in of our sponsored vehicles in the fourth quarter of 2018; and
|
•
|
the net favorable effect of translating United States dollar EBITDA at a higher Canadian to United States dollar average exchange rate (Average Exchange Rate) of $1.33 in 2019 compared with $1.29 in 2018, partially offset by realized losses arising from our foreign exchange risk management program.
|
•
|
the absence in 2019 of earnings from MOLP and the provincially regulated portion of our Canadian gas gathering and processing businesses which were sold in the second half of 2018;
|
•
|
higher operating costs on our Gas Transmission and Midstream assets primarily due to higher pipeline integrity costs; and
|
•
|
higher income tax expense due to higher earnings, the buy-in of our United States sponsored vehicles in the fourth quarter of 2018 and lower foreign tax rate differentials in 2019.
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
Earnings before interest, income taxes and depreciation and amortization
|
1,646
|
|
1,875
|
|
|
5,710
|
|
4,353
|
|
•
|
a non-cash, unrealized loss of $180 million in 2019 compared with a gain of $211 million in 2018 reflecting net fair value gains and losses arising from changes in the mark-to-market value of derivative financial instruments used to manage foreign exchange and commodity price risks; and
|
•
|
the absence in 2019 of a gain of $28 million in 2018 on the sale of pipe related to our Sandpiper Project.
|
•
|
a higher IJT Benchmark Toll of US$4.21 in 2019 compared with US$4.15 in 2018;
|
•
|
higher Mainline System ex-Gretna throughput of 2,714 thousands of barrels per day (kbpd) in 2019 compared with 2,578 kbpd in 2018 driven by an increase in supply and continuous capacity optimization;
|
•
|
higher Flanagan South Pipeline and Seaway Crude Pipeline System throughput period-over-period driven by strong Gulf Coast demand resulting from favorable price differentials; and
|
•
|
higher Bakken Pipeline System throughput period-over-period driven by strong production in the region.
|
•
|
a non-cash, unrealized gain of $390 million in 2019 compared with a loss of $362 million in 2018 reflecting net fair value gains and losses arising from changes in the mark-to-market value of derivative financial instruments used to manage foreign exchange and commodity price risks; and
|
•
|
the absence in 2019 of a loss of $154 million in 2018 related to Line 10, which is a component of our Mainline System, resulting from its classification as an asset held for sale and the subsequent measurement at the lower of carrying value or fair value less costs to sell.
|
•
|
a higher IJT Benchmark Toll of US$4.17 in 2019 compared with US$4.10 in 2018;
|
•
|
higher Mainline System ex-Gretna throughput of 2,698 kbpd in 2019 compared with 2,613 kbpd in 2018 driven by an increase in supply and continuous capacity optimization;
|
•
|
higher Flanagan South Pipeline and Seaway Crude Pipeline System throughput period-over-period driven by the redirection of throughput to the Gulf Coast resulting from refinery outages in the United States Midwest in the first half of 2019 and strong Gulf Coast demand resulting from favorable price differentials;
|
•
|
higher Bakken Pipeline System throughput period-over-period driven by strong production in the region; and
|
•
|
the net favorable effect of translating United States dollar EBITDA at a higher Average Exchange Rate of $1.33 in 2019 compared with $1.29 in 2018.
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
||||
Earnings/(loss) before interest, income taxes and depreciation and amortization
|
772
|
|
(60
|
)
|
|
2,733
|
|
1,080
|
|
•
|
the absence in 2019 of a goodwill impairment charge of $1,019 million in 2018 resulting from the classification of our Canadian natural gas gathering and processing businesses as held for sale; and
|
•
|
the absence in 2019 of a loss of $74 million in 2018 resulting from the sale of MOLP.
|
•
|
a loss of $62 million in 2019 related to asset write-down and goodwill impairment losses at our equity investee, DCP Midstream, LLC.; and
|
•
|
a loss of $105 million in 2019 resulting from the write-off of project costs related to the Access Northeast pipeline project.
|
•
|
higher operating costs on our US Gas Transmission assets primarily due to higher pipeline integrity costs;
|
•
|
lower revenues and higher operating costs from US Gas Transmission due to the Texas Eastern natural gas pipeline system incident in Lincoln County, Kentucky, refer to Recent Developments - Texas Eastern Pipeline Rupture; and
|
•
|
decreased fractionation margins at our Aux Sable joint venture driven by lower NGL prices.
|
•
|
the absence in 2019 of a goodwill impairment charge of $1,019 million in 2018 resulting from the classification of our Canadian natural gas gathering and processing businesses as held for sale;
|
•
|
the absence in 2019 of a loss of $913 million in 2018 on MOLP resulting from a revision to the fair value of the assets held for sale based on the sale price; and
|
•
|
the absence in 2019 of a loss of $74 million in 2018 resulting from the sale of MOLP.
|
•
|
a loss of $62 million in 2019 related to asset write-down and goodwill impairment losses at our equity investee, DCP Midstream, LLC.; and
|
•
|
a loss of $105 million in 2019 resulting from the write-off of project costs related to the Access Northeast pipeline project.
|
•
|
contributions from Valley Crossing Pipeline and certain other Offshore and US Gas Transmission assets that were placed into service during the fourth quarter of 2018; and
|
•
|
the net favorable effect of translating United States dollar EBITDA at a higher Average Exchange Rate of $1.33 in 2019 compared with $1.29 in 2018.
|
•
|
higher operating costs on our US Gas Transmission assets primarily due to higher pipeline integrity costs;
|
•
|
lower revenues and higher operating costs from US Gas Transmission due to the Texas Eastern natural gas pipeline system incident in Lincoln County, Kentucky, refer to Recent Developments - Texas Eastern Pipeline Rupture; and
|
•
|
decreased fractionation margins at our Aux Sable joint venture driven by lower NGL prices.
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
||||
Earnings before interest, income taxes and depreciation and amortization
|
252
|
|
256
|
|
|
1,304
|
|
1,262
|
|
•
|
higher distribution charges primarily resulting from increases in distribution rates and customer base; and
|
•
|
synergy captures realized from the amalgamation of EGD and Union Gas.
|
•
|
a non-cash, unrealized gain of $9 million in 2019 compared with a gain of $3 million in 2018 arising from the change in the mark-to-market value of our equity investee's, Noverco Inc.'s derivative financial instruments; and
|
•
|
the absence in 2019 of a negative equity earnings adjustment of $9 million in 2018 at our equity investee, Noverco Inc., arising from the Tax Cuts and Jobs Act in the United States.
|
•
|
increased earnings of $41 million resulting from colder weather experienced in our franchise service areas when compared to the corresponding period in 2018;
|
•
|
increased earnings from higher distribution charges primarily resulting from increases in distribution rates and customer base;
|
•
|
the absence in 2019 of forecasted earnings sharing which was recorded in 2018 under EGD's previous incentive rate structure; and
|
•
|
synergy captures realized from the amalgamation of EGD and Union Gas.
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
Earnings before interest, income taxes and depreciation and amortization
|
82
|
|
51
|
|
|
300
|
|
286
|
|
•
|
stronger wind resources at Canadian and United States wind facilities; and
|
•
|
higher contributions from the Rampion Offshore Wind Project.
|
•
|
the absence in 2019 of a loss of $20 million in 2018 resulting from the sale of 49% of our interest in the Hohe See Offshore wind facility and its expansion;
|
•
|
the absence in 2019 of an asset impairment charge of $22 million in 2018 from our equity investment in NRGreen Power Limited Partnership related to the Chickadee Creek waste heat recovery facility in Alberta; and
|
▪
|
the absence in 2019 of a loss of $11 million in 2018 representing our share of losses incurred by our equity investee, Rampion Offshore Wind Limited, primarily due to the repair and restoration of damaged power transmission cables.
|
•
|
weaker wind resources at United States wind facilities;
|
•
|
the absence in 2019 of $11 million in 2018 from a positive arbitration settlement related to our Canadian wind facilities; and
|
•
|
higher mechanical repair costs at certain United States wind facilities.
|
•
|
higher contributions from the Rampion Offshore Wind Project which reached full operating capacity in the second quarter of 2018; and
|
•
|
stronger wind resources at Canadian wind facilities.
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) before interest, income taxes and depreciation and amortization
|
91
|
|
(96
|
)
|
|
318
|
|
108
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
||||
Earnings/(loss) before interest, income taxes and depreciation and amortization
|
(40
|
)
|
29
|
|
|
315
|
|
(368
|
)
|
•
|
lower operating and administrative costs in the third quarter of 2019; and
|
•
|
a realized loss of $50 million in 2019 compared with a loss of $59 million in 2018 related to settlements under our foreign exchange risk management program, which partially offset the positive impact of a strengthening United States dollar on our United States business segments.
|
•
|
a non-cash, unrealized gain of $453 million in 2019 compared with nil in 2018 reflecting net fair value gains and losses arising from the change in the mark-to-market value of derivative financial instruments used to manage foreign exchange risk;
|
•
|
employee severance, transition and transformation costs of $45 million in 2019 compared with $102 million in 2018; and
|
•
|
the absence in 2019 of asset monetization transaction costs of $45 million in 2018.
|
•
|
Gray Oak Pipeline Project - a crude oil pipeline project connecting west Texas to destinations in the Corpus Christi and Sweeny/Freeport markets. The pipeline is a joint development with Phillips 66 and could have an ultimate capacity of approximately 900,000 barrels per day, subject to additional shipper commitments. During the first quarter of 2019 project execution forecasts were revised to reflect updated construction cost estimates and timing, with an expected in-service date by the end of the year.
|
•
|
Canadian Line 3 Replacement Program - on August 30, 2019, we announced that we have reached a commercial agreement with shippers to place the Canadian L3R Program into service on December 1, 2019. Refer to Recent Developments - Canadian Line 3 Replacement Program to be placed into service.
|
•
|
Atlantic Bridge - expansion of the Algonquin Gas Transmission systems to transport 133 million cubic feet per day (mmcf/d) of natural gas to the New England Region. The expansion primarily consists of various meter station additions, the replacement of a natural gas pipeline in Connecticut and New York, compression additions in Connecticut, and a new compressor station in Massachusetts. The meter stations were placed into service in 2017 and 2018. The Connecticut portion of the project was placed into service in the fourth quarter of 2017. The New York portion of the project achieved partial in-service in November 2018 and reached full in-service in October 2019, upon which we began earning incremental revenues. Due to ongoing permitting delays in Massachusetts, the revised expected in service date for the Massachusetts portion of the project is the second half of 2020.
|
•
|
Spruce Ridge Project - a natural gas pipeline expansion of Westcoast Energy Inc.'s British Columbia (BC) Pipeline in northern BC. The project will provide additional capacity of up to 402 mmcf/d. Due to commercial delays, the revised expected in-service date is the second half of 2021.
|
•
|
T-South Reliability & Expansion Program - a natural gas pipeline expansion of Westcoast Energy Inc.'s BC Pipeline in southern BC that will provide improved compressor reliability and additional capacity of approximately 190 mmcf/d into the Huntington/Sumas market at the United States/Canada border. The projects were approved by the CER in September 2019 and have an expected in-service date in the second half of 2021.
|
•
|
Dawn-Parkway Expansion - the expansion of the existing Dawn to Parkway gas transmission system, which provides transportation service from Dawn to the Greater Toronto Area. The project will provide additional capacity of approximately 83 mmcf/d with an expected in-service date by the end of 2021.
|
•
|
Hohe See Offshore Wind Project and Expansion - a wind project located in the North Sea, off the coast of Germany that will generate approximately 497-MW, with an additional 112-MW from the expansion. The Hohe See Project and Expansion is backed by a government legislated 20-year revenue support mechanism. The project generated first power in July 2019 and full operating capacity was reached in October 2019. The project expansion is expected to be placed into service by the end of the year.
|
•
|
Saint Nazaire France Offshore Wind Project - a wind project located off the west coast of France that will generate approximately 480 megawatts. We hold an effective 50% interest with EDF Renouvelables. Project revenues are backed by a 20-year fixed price power purchase agreement with added power production protection. Our share of the total investment in the project is $1.8 billion, with an equity contribution of $0.3 billion. The remainder of the construction will be financed through non-recourse project level debt. The project is expected to be placed into service in the second half of 2022.
|
•
|
Texas COLT Offshore Loading Project - the Texas COLT Offshore Loading Project will facilitate the direct loading of very large crude carriers from Freeport, Texas. The project consists of a terminal, a 42-inch offshore pipeline, platform and two single point mooring systems with connectivity to all key North American supply basins. In the second quarter of 2019 the United States Maritime Administration and the United States Coast Guard temporarily suspended processing of Texas COLT Offshore Loading Project's deepwater port license application to assess further information regarding the addition of a marine vapor control system to the original project design. We continue to work closely with Federal and State permitting agencies. During 2019 we acquired the positions previously held by our other partners.
|
•
|
Rio Bravo Pipeline - the Rio Bravo Pipeline (Rio Bravo) and other natural gas pipelines in South Texas will transport natural gas to NextDecade's Rio Grande LNG project located in Brownsville, Texas. Rio Bravo is designed to transport 4.5 billion cubic feet per day of natural gas from the Agua Dulce area to Rio Grande LNG. Along with NextDecade Corporation, we announced a Memorandum of Understanding (MOU) to jointly pursue this development and we anticipate finalizing definitive documentation reflecting the terms of the MOU in the fourth quarter of 2019.
|
•
|
Texas Eastern Venice Lateral Project - a reversal and expansion of Texas Eastern’s Line 40 from its existing Roads compressor station to a new delivery point with the proposed Gator Express pipeline just south of Texas Eastern’s Larose compressor station. The project will deliver 1.5 billion cubic feet of feed gas to Venture Global’s proposed Plaquemines LNG export facility located in Plaquemine Parish, Louisiana. The project is expected to be placed into service by 2022.
|
|
Maturity
Dates
|
Total
Facilities
|
|
Draws1
|
|
Available
|
|
(millions of Canadian dollars)
|
|
|
|
|
|||
Enbridge Inc.
|
2021-2024
|
7,024
|
|
6,400
|
|
624
|
|
Enbridge (U.S.) Inc.
|
2021-2024
|
7,282
|
|
2,680
|
|
4,602
|
|
Enbridge Pipelines Inc.
|
2021
|
3,000
|
|
2,555
|
|
445
|
|
Enbridge Gas Inc.
|
2019-2021
|
2,017
|
|
1,280
|
|
737
|
|
Total committed credit facilities
|
|
19,323
|
|
12,915
|
|
6,408
|
|
Company
|
Issue Date
|
|
|
Principal Amount
|
(millions of Canadian dollars)
|
|
|
||
Algonquin Gas Transmission, LLC.
|
|
|
||
|
August 2019
|
3.24% senior notes due August 2029
|
|
US$500
|
Enbridge Gas Inc.
|
|
|
|
|
|
August 2019
|
2.37% medium-term notes due August 2029
|
|
$400
|
|
August 2019
|
3.01% medium-term notes due August 2049
|
|
$300
|
Enbridge Pipelines Inc.
|
|
|
|
|
|
February 2019
|
3.52% medium-term notes due February 2029
|
$600
|
|
|
February 2019
|
4.33% medium-term notes due February 2049
|
$600
|
Company
|
Retirement/Repayment Date
|
|
|
Principal Amount
|
(millions of Canadian dollars, unless otherwise stated)
|
|
|
||
Enbridge Inc.
|
|
|
|
|
Repayment
|
|
|
|
|
|
February 2019
|
4.10% medium-term notes
|
$300
|
|
|
May 2019
|
Floating rate notes
|
|
$750
|
|
September 2019
|
4.77% medium-term notes
|
|
$400
|
Enbridge Energy Partners, L.P.
|
|
|
||
Redemption
|
|
|
|
|
|
February 2019
|
8.05% fixed/floating rate junior subordinated notes due 2067
|
US$400
|
|
Repayment
|
|
|
|
|
|
March 2019
|
9.88% senior notes
|
|
US$500
|
Enbridge Pipelines (Southern Lights) L.L.C.
|
|
|
||
Repayment
|
|
|
|
|
|
June 2019
|
3.98% medium-term notes due 2040
|
|
US$23
|
Enbridge Southern Lights LP
|
|
|
|
|
Repayment
|
|
|
|
|
|
July 2019
|
4.01% senior notes due 2040
|
|
$10
|
Westcoast Energy Inc.
|
|
|
|
|
Repayment
|
|
|
|
|
|
January 2019
|
5.60% medium-term notes
|
$250
|
|
|
January 2019
|
5.60% medium-term notes
|
$50
|
|
|
May 2019
|
6.90% senior secured notes due 2019
|
|
$13
|
|
May 2019
|
4.34% senior secured notes due 2019
|
|
$2
|
|
Nine months ended
September 30, |
|||
|
2019
|
|
2018
|
|
(millions of Canadian dollars)
|
|
|
|
|
Operating activities
|
7,405
|
|
7,999
|
|
Investing activities
|
(5,029
|
)
|
(3,072
|
)
|
Financing activities
|
(2,124
|
)
|
(4,811
|
)
|
Effect of translation of foreign denominated cash and cash equivalents and restricted cash
|
(17
|
)
|
23
|
|
Increase in cash and cash equivalents and restricted cash
|
235
|
|
139
|
|
•
|
The decrease in cash flow provided by operations during the nine months ended September 30, 2019 was primarily driven by changes in operating assets and liabilities. Our operating assets and liabilities fluctuate in the normal course due to various factors, including the impact of fluctuations in commodity prices and activity levels on working capital within our business segments, the timing of tax payments, as well as timing of cash receipts and payments generally.
|
•
|
The factor above was partially offset by stronger contributions from our operating segments and contributions from new assets placed into service as discussed under Results of Operations.
|
•
|
The increase in cash used in investing activities during the nine months ended September 30, 2019 was attributable to activity in 2018 that was not present in 2019, primarily relating to a distribution received in the second quarter of 2018 from Sabal Trail Transmission, LLC (Sabal Trail) as a partial return of capital for construction and development costs previously funded by Sabal Trail's partners. In addition, in the third quarter of 2018, we received proceeds from asset dispositions from our sale of MOLP and international renewable assets.
|
•
|
The factors above were partially offset by lower additions to intangible assets during the nine months ended September 30, 2019 compared with the same period in 2018, primarily due to the wind down of the Ontario Cap and Trade program in the fourth quarter of 2018.
|
•
|
We are continuing with the execution of our growth capital program which is further described in Growth Projects - Commercially Secured Projects. The timing of project approval, construction and in-service dates impacts the timing of cash requirements.
|
•
|
The decrease in cash used in financing activities during the nine months ended September 30, 2019 was primarily attributable to a net increase in commercial paper and credit facility draws and lower repayments of maturing long-term debt, partially offset by a decrease of long-term debt issued in 2019 when compared with the same period in 2018.
|
•
|
The decrease in cash used in financing activities in 2019 was also attributable to activity in 2018 that was not present in 2019, primarily relating to proceeds from the sale of a portion of our interest in our Canadian and U.S. renewable assets to the CPPIB in the third quarter of 2018.
|
•
|
Our common share dividend payments increased period-over-period primarily due to the increase in the common share dividend rate and an increase in the number of common shares outstanding in connection with the buy-in of our sponsored vehicles in the fourth quarter of 2018. These factors were partially offset by the suspension of our Dividend Reinvestment and Share Purchase Plan in the fourth quarter of 2018. In addition, in the first quarter of 2019, Westcoast Energy Inc. redeemed all of its outstanding Series 7 and Series 8 preference shares for a total payment of $300 million.
|
•
|
Distributions to noncontrolling interests and redeemable noncontrolling interests decreased as a result of the buy-in of our sponsored vehicles in the fourth quarter of 2018.
|
Exhibit No.
|
|
Description
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
101.INS*
|
|
XBRL Instance Document.
|
101.SCH*
|
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL*
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF*
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB*
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE*
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
104
|
|
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document (included in Exhibit 101)
|
|
|
ENBRIDGE INC.
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
November 8, 2019
|
By:
|
/s/ Al Monaco
|
|
|
Al Monaco
President and Chief Executive Officer
|
|
|
|
|
|
Date:
|
November 8, 2019
|
By:
|
/s/ Colin K. Gruending
|
|
|
|
Colin K. Gruending
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
1.
|
I have reviewed this quarterly report on Form 10-Q of Enbridge Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
November 8, 2019
|
By:
|
/s/ Al Monaco
|
|
|
|
Al Monaco
President and Chief Executive Officer
Enbridge Inc.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Enbridge Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting
|
Date:
|
November 8, 2019
|
By:
|
/s/ Colin K. Gruending
|
|
|
|
Colin K. Gruending
Executive Vice President and Chief Financial Officer (Principal Financial Officer) Enbridge Inc. |
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Enbridge Inc.
|
Date:
|
November 8, 2019
|
By:
|
/s/ Al Monaco
|
|
|
|
Al Monaco
President and Chief Executive Officer
Enbridge Inc.
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Enbridge Inc.
|
Date:
|
November 8, 2019
|
By:
|
/s/ Colin K. Gruending
|
|
|
|
Colin K. Gruending
Executive Vice President and Chief Financial Officer (Principal Financial Officer) Enbridge Inc. |