|
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
|
|
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
|
CPP Investments
|
Canada Pension Plan Investment Board
|
DCP Midstream
|
DCP Midstream, LLC
|
EBITDA
|
Earnings before interest, income taxes and depreciation and amortization
|
EEP
|
Enbridge Energy Partners, L.P.
|
EMF
|
Éolien Maritime France SAS
|
Enbridge
|
Enbridge Inc.
|
kbpd
|
thousands of barrels per day
|
NGL
|
Natural gas liquids
|
OCI
|
Other comprehensive income/(loss)
|
The Partnerships
|
Spectra Energy Partners, LP (SEP) and Enbridge Energy Partners, L.P. (EEP)
|
Exchange Act
|
United States Securities Exchange Act of 1934, as amended
|
SEP
|
Spectra Energy Partners, LP
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(unaudited; millions of Canadian dollars, except per share amounts)
|
|
|
|
|
Operating revenues
|
|
|
|
|
Commodity sales
|
7,389
|
|
6,632
|
|
Transportation and other services
|
3,208
|
|
4,348
|
|
Gas distribution sales
|
1,416
|
|
1,876
|
|
Total operating revenues (Note 3)
|
12,013
|
|
12,856
|
|
Operating expenses
|
|
|
||
Commodity costs
|
7,163
|
|
6,565
|
|
Gas distribution costs
|
855
|
|
1,207
|
|
Operating and administrative
|
1,600
|
|
1,625
|
|
Depreciation and amortization
|
882
|
|
840
|
|
Total operating expenses
|
10,500
|
|
10,237
|
|
Operating income
|
1,513
|
|
2,619
|
|
Income from equity investments
|
163
|
|
413
|
|
Impairment of equity investments (Note 9)
|
(1,736
|
)
|
—
|
|
Other income/(expense)
|
|
|
||
Net foreign currency gain/(loss)
|
(956
|
)
|
214
|
|
Other
|
(191
|
)
|
46
|
|
Interest expense
|
(706
|
)
|
(685
|
)
|
Earnings/(loss) before income taxes
|
(1,913
|
)
|
2,607
|
|
Income tax recovery/(expense) (Note 11)
|
549
|
|
(584
|
)
|
Earnings/(loss)
|
(1,364
|
)
|
2,023
|
|
(Earnings)/loss attributable to noncontrolling interests
|
31
|
|
(37
|
)
|
Earnings/(loss) attributable to controlling interests
|
(1,333
|
)
|
1,986
|
|
Preference share dividends
|
(96
|
)
|
(95
|
)
|
Earnings/(loss) attributable to common shareholders
|
(1,429
|
)
|
1,891
|
|
Earnings/(loss) per common share attributable to common shareholders (Note 5)
|
(0.71
|
)
|
0.94
|
|
Diluted earnings/(loss) per common share attributable to common shareholders (Note 5)
|
(0.71
|
)
|
0.94
|
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(unaudited; millions of Canadian dollars)
|
|
|
|
|
Earnings/(loss)
|
(1,364
|
)
|
2,023
|
|
Other comprehensive income/(loss), net of tax
|
|
|
||
Change in unrealized loss on cash flow hedges
|
(513
|
)
|
(192
|
)
|
Change in unrealized gain/(loss) on net investment hedges
|
(715
|
)
|
94
|
|
Other comprehensive income/(loss) from equity investees
|
(10
|
)
|
12
|
|
Excluded components of fair value hedges
|
3
|
|
—
|
|
Reclassification to earnings of loss on cash flow hedges
|
32
|
|
11
|
|
Reclassification to earnings of pension and other postretirement benefits (OPEB) amounts
|
3
|
|
38
|
|
Foreign currency translation adjustments
|
5,637
|
|
(1,291
|
)
|
Other comprehensive income/(loss), net of tax
|
4,437
|
|
(1,328
|
)
|
Comprehensive income
|
3,073
|
|
695
|
|
Comprehensive (income)/loss attributable to noncontrolling interests
|
(145
|
)
|
13
|
|
Comprehensive income attributable to controlling interests
|
2,928
|
|
708
|
|
Preference share dividends
|
(96
|
)
|
(95
|
)
|
Comprehensive income attributable to common shareholders
|
2,832
|
|
613
|
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(unaudited; millions of Canadian dollars, except per share amounts)
|
|
|
||
Preference shares (Note 5)
|
|
|
||
Balance at beginning and end of period
|
7,747
|
|
7,747
|
|
Common shares (Note 5)
|
|
|
||
Balance at beginning of period
|
64,746
|
|
64,677
|
|
Shares issued on exercise of stock options
|
14
|
|
51
|
|
Balance at end of period
|
64,760
|
|
64,728
|
|
Additional paid-in capital
|
|
|
||
Balance at beginning of period
|
187
|
|
—
|
|
Stock-based compensation
|
14
|
|
4
|
|
Options exercised
|
(16
|
)
|
(43
|
)
|
Change in reciprocal interest
|
12
|
|
109
|
|
Other
|
5
|
|
2
|
|
Balance at end of period
|
202
|
|
72
|
|
Deficit
|
|
|
||
Balance at beginning of period
|
(6,314
|
)
|
(5,538
|
)
|
Earnings/(loss) attributable to controlling interests
|
(1,333
|
)
|
1,986
|
|
Preference share dividends
|
(96
|
)
|
(95
|
)
|
Dividends paid to reciprocal shareholder
|
5
|
|
5
|
|
Modified retrospective adoption of ASU 2016-13 Financial Instruments - Credit Losses (Note 2)
|
(66
|
)
|
—
|
|
Other
|
(4
|
)
|
2
|
|
Balance at end of period
|
(7,808
|
)
|
(3,640
|
)
|
Accumulated other comprehensive income/(loss) (Note 8)
|
|
|
||
Balance at beginning of period
|
(272
|
)
|
2,672
|
|
Other comprehensive income/(loss) attributable to common shareholders, net of tax
|
4,261
|
|
(1,278
|
)
|
Other
|
—
|
|
55
|
|
Balance at end of period
|
3,989
|
|
1,449
|
|
Reciprocal shareholding
|
|
|
||
Balance at beginning of period
|
(51
|
)
|
(88
|
)
|
Change in reciprocal interest
|
4
|
|
37
|
|
Balance at end of period
|
(47
|
)
|
(51
|
)
|
Total Enbridge Inc. shareholders’ equity
|
68,843
|
|
70,305
|
|
Noncontrolling interests
|
|
|
||
Balance at beginning of period
|
3,364
|
|
3,965
|
|
Earnings/(loss) attributable to noncontrolling interests
|
(31
|
)
|
37
|
|
Other comprehensive income/(loss) attributable to noncontrolling interests, net of tax
|
|
|
|
|
Change in unrealized loss on cash flow hedges
|
(2
|
)
|
(1
|
)
|
Foreign currency translation adjustments
|
178
|
|
(49
|
)
|
|
176
|
|
(50
|
)
|
Comprehensive income/(loss) attributable to noncontrolling interests
|
145
|
|
(13
|
)
|
Contributions
|
15
|
|
3
|
|
Distributions
|
(76
|
)
|
(46
|
)
|
Redemption of preferred shares held by subsidiary
|
—
|
|
(300
|
)
|
Other
|
—
|
|
5
|
|
Balance at end of period
|
3,448
|
|
3,614
|
|
Total equity
|
72,291
|
|
73,919
|
|
Dividends paid per common share
|
0.810
|
|
0.738
|
|
Earnings/(loss) per common share attributable to common shareholders (Note 5)
|
(0.71
|
)
|
0.94
|
|
Diluted earnings/(loss) per common share attributable to common shareholders (Note 5)
|
(0.71
|
)
|
0.94
|
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(unaudited; millions of Canadian dollars)
|
|
|
||
Operating activities
|
|
|
||
Earnings/(loss)
|
(1,364
|
)
|
2,023
|
|
Adjustments to reconcile earnings to net cash provided by operating activities:
|
|
|
|
|
Depreciation and amortization
|
882
|
|
840
|
|
Deferred income tax (recovery)/expense
|
(713
|
)
|
435
|
|
Changes in unrealized (gain)/loss on derivative instruments, net (Note 10)
|
1,556
|
|
(538
|
)
|
Earnings from equity investments
|
(163
|
)
|
(413
|
)
|
Distributions from equity investments
|
428
|
|
466
|
|
Impairment of equity investments (Note 9)
|
1,736
|
|
—
|
|
Other
|
253
|
|
30
|
|
Changes in operating assets and liabilities
|
194
|
|
(667
|
)
|
Net cash provided by operating activities
|
2,809
|
|
2,176
|
|
Investing activities
|
|
|
|
|
Capital expenditures
|
(1,147
|
)
|
(1,612
|
)
|
Long-term investments and restricted long-term investments
|
(87
|
)
|
(565
|
)
|
Distributions from equity investments in excess of cumulative earnings
|
77
|
|
139
|
|
Additions to intangible assets
|
(69
|
)
|
(26
|
)
|
Affiliate loans, net
|
(44
|
)
|
(84
|
)
|
Net cash used in investing activities
|
(1,270
|
)
|
(2,148
|
)
|
Financing activities
|
|
|
|
|
Net change in short-term borrowings
|
(63
|
)
|
(154
|
)
|
Net change in commercial paper and credit facility draws
|
1,159
|
|
2,773
|
|
Debenture and term note issues, net of issue costs
|
990
|
|
1,195
|
|
Debenture and term note repayments
|
(1,657
|
)
|
(1,789
|
)
|
Contributions from noncontrolling interests
|
15
|
|
3
|
|
Distributions to noncontrolling interests
|
(76
|
)
|
(46
|
)
|
Common shares issued
|
1
|
|
18
|
|
Preference share dividends
|
(96
|
)
|
(90
|
)
|
Common share dividends
|
(1,641
|
)
|
(1,486
|
)
|
Redemption of preferred shares held by subsidiary
|
—
|
|
(300
|
)
|
Other
|
(18
|
)
|
(25
|
)
|
Net cash provided by/(used in) financing activities
|
(1,386
|
)
|
99
|
|
Effect of translation of foreign denominated cash and cash equivalents and restricted cash
|
11
|
|
(7
|
)
|
Net increase in cash and cash equivalents and restricted cash
|
164
|
|
120
|
|
Cash and cash equivalents and restricted cash at beginning of period
|
676
|
|
637
|
|
Cash and cash equivalents and restricted cash at end of period
|
840
|
|
757
|
|
|
March 31,
2020 |
|
December 31,
2019 |
|
(unaudited; millions of Canadian dollars; number of shares in millions)
|
|
|
|
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
799
|
|
648
|
|
Restricted cash
|
41
|
|
28
|
|
Accounts receivable and other
|
6,574
|
|
6,781
|
|
Accounts receivable from affiliates
|
38
|
|
69
|
|
Inventory
|
699
|
|
1,299
|
|
|
8,151
|
|
8,825
|
|
Property, plant and equipment, net
|
98,483
|
|
93,723
|
|
Long-term investments
|
15,986
|
|
16,528
|
|
Restricted long-term investments
|
443
|
|
434
|
|
Deferred amounts and other assets
|
8,155
|
|
7,433
|
|
Intangible assets, net
|
2,239
|
|
2,173
|
|
Goodwill
|
35,549
|
|
33,153
|
|
Deferred income taxes
|
1,248
|
|
1,000
|
|
Total assets
|
170,254
|
|
163,269
|
|
|
|
|
||
Liabilities and equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Short-term borrowings
|
835
|
|
898
|
|
Accounts payable and other
|
8,306
|
|
10,063
|
|
Accounts payable to affiliates
|
11
|
|
21
|
|
Interest payable
|
615
|
|
624
|
|
Current portion of long-term debt
|
4,221
|
|
4,404
|
|
|
13,988
|
|
16,010
|
|
Long-term debt
|
63,571
|
|
59,661
|
|
Other long-term liabilities
|
10,499
|
|
8,324
|
|
Deferred income taxes
|
9,905
|
|
9,867
|
|
|
97,963
|
|
93,862
|
|
Contingencies (Note 13)
|
|
|
|
|
Equity
|
|
|
|
|
Share capital
|
|
|
|
|
Preference shares
|
7,747
|
|
7,747
|
|
Common shares (2,025 and 2,025 outstanding at March 31, 2020 and December 31, 2019, respectively)
|
64,760
|
|
64,746
|
|
Additional paid-in capital
|
202
|
|
187
|
|
Deficit
|
(7,808
|
)
|
(6,314
|
)
|
Accumulated other comprehensive income/(loss) (Note 8)
|
3,989
|
|
(272
|
)
|
Reciprocal shareholding
|
(47
|
)
|
(51
|
)
|
Total Enbridge Inc. shareholders’ equity
|
68,843
|
|
66,043
|
|
Noncontrolling interests
|
3,448
|
|
3,364
|
|
|
72,291
|
|
69,407
|
|
Total liabilities and equity
|
170,254
|
|
163,269
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution and Storage
|
|
Renewable Power Generation
|
|
Energy Services
|
|
Eliminations and Other
|
|
Consolidated
|
|
Three months ended
March 31, 2020 |
||||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation revenues
|
2,440
|
|
1,255
|
|
215
|
|
—
|
|
—
|
|
—
|
|
3,910
|
|
Storage and other revenues
|
26
|
|
79
|
|
47
|
|
—
|
|
—
|
|
—
|
|
152
|
|
Gas gathering and processing revenues
|
—
|
|
7
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7
|
|
Gas distribution revenue
|
—
|
|
—
|
|
1,417
|
|
—
|
|
—
|
|
—
|
|
1,417
|
|
Electricity and transmission revenues
|
—
|
|
—
|
|
—
|
|
50
|
|
—
|
|
—
|
|
50
|
|
Total revenue from contracts with customers
|
2,466
|
|
1,341
|
|
1,679
|
|
50
|
|
—
|
|
—
|
|
5,536
|
|
Commodity sales
|
—
|
|
—
|
|
—
|
|
—
|
|
7,389
|
|
—
|
|
7,389
|
|
Other revenues1,2
|
(1,017
|
)
|
16
|
|
(1
|
)
|
103
|
|
(7
|
)
|
(6
|
)
|
(912
|
)
|
Intersegment revenues
|
85
|
|
—
|
|
4
|
|
—
|
|
16
|
|
(105
|
)
|
—
|
|
Total revenues
|
1,534
|
|
1,357
|
|
1,682
|
|
153
|
|
7,398
|
|
(111
|
)
|
12,013
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution and Storage
|
|
Renewable Power Generation
|
|
Energy Services
|
|
Eliminations and Other
|
|
Consolidated
|
|
Three months ended
March 31, 2019 |
||||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation revenues
|
2,214
|
|
1,137
|
|
249
|
|
—
|
|
—
|
|
—
|
|
3,600
|
|
Storage and other revenues
|
27
|
|
53
|
|
54
|
|
—
|
|
—
|
|
—
|
|
134
|
|
Gas gathering and processing revenues
|
—
|
|
116
|
|
—
|
|
—
|
|
—
|
|
—
|
|
116
|
|
Gas distribution revenues
|
—
|
|
—
|
|
1,856
|
|
—
|
|
—
|
|
—
|
|
1,856
|
|
Electricity and transmission revenues
|
—
|
|
—
|
|
—
|
|
50
|
|
—
|
|
—
|
|
50
|
|
Total revenue from contracts with customers
|
2,241
|
|
1,306
|
|
2,159
|
|
50
|
|
—
|
|
—
|
|
5,756
|
|
Commodity sales
|
—
|
|
—
|
|
—
|
|
—
|
|
6,632
|
|
—
|
|
6,632
|
|
Other revenues1, 2
|
340
|
|
10
|
|
29
|
|
102
|
|
6
|
|
(19
|
)
|
468
|
|
Intersegment revenues
|
77
|
|
2
|
|
3
|
|
—
|
|
35
|
|
(117
|
)
|
—
|
|
Total revenues
|
2,658
|
|
1,318
|
|
2,191
|
|
152
|
|
6,673
|
|
(136
|
)
|
12,856
|
|
|
Receivables
|
|
Contract Assets
|
|
Contract Liabilities
|
|
(millions of Canadian dollars)
|
|
|
|
|||
Balance as at December 31, 2019
|
2,099
|
|
216
|
|
1,424
|
|
Balance as at March 31, 2020
|
2,287
|
|
224
|
|
1,500
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution and Storage
|
|
Renewable Power Generation
|
|
Energy Services
|
|
Consolidated
|
|
Three months ended
March 31, 2020 |
||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from products transferred at a point in time
|
—
|
|
—
|
|
15
|
|
—
|
|
—
|
|
15
|
|
Revenues from products and services transferred over time1
|
2,466
|
|
1,341
|
|
1,664
|
|
50
|
|
—
|
|
5,521
|
|
Total revenue from contracts with customers
|
2,466
|
|
1,341
|
|
1,679
|
|
50
|
|
—
|
|
5,536
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution and Storage
|
|
Renewable Power Generation
|
|
Energy Services
|
|
Consolidated
|
|
Three months ended
March 31, 2019 |
||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
||||||
Revenues from products transferred at a point in time
|
—
|
|
—
|
|
17
|
|
—
|
|
—
|
|
17
|
|
Revenues from products and services transferred over time1
|
2,241
|
|
1,306
|
|
2,142
|
|
50
|
|
—
|
|
5,739
|
|
Total revenue from contracts with customers
|
2,241
|
|
1,306
|
|
2,159
|
|
50
|
|
—
|
|
5,756
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution and Storage
|
|
Renewable Power Generation
|
|
Energy Services
|
|
Eliminations and Other
|
|
Consolidated
|
|
Three months ended
March 31, 2020 |
||||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
1,534
|
|
1,357
|
|
1,682
|
|
153
|
|
7,398
|
|
(111
|
)
|
12,013
|
|
Commodity and gas distribution costs
|
(7
|
)
|
—
|
|
(872
|
)
|
—
|
|
(7,243
|
)
|
104
|
|
(8,018
|
)
|
Operating and administrative
|
(865
|
)
|
(507
|
)
|
(249
|
)
|
(50
|
)
|
(28
|
)
|
99
|
|
(1,600
|
)
|
Income/(loss) from equity investments
|
197
|
|
(75
|
)
|
23
|
|
16
|
|
2
|
|
—
|
|
163
|
|
Impairment of equity investments
|
—
|
|
(1,736
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,736
|
)
|
Other income/(expense)
|
(9
|
)
|
(93
|
)
|
20
|
|
1
|
|
(8
|
)
|
(1,058
|
)
|
(1,147
|
)
|
Earnings/(loss) before interest, income taxes, and depreciation and amortization
|
850
|
|
(1,054
|
)
|
604
|
|
120
|
|
121
|
|
(966
|
)
|
(325
|
)
|
Depreciation and amortization
|
|
|
|
|
|
|
(882
|
)
|
||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(706
|
)
|
Income tax recovery
|
|
|
|
|
|
|
|
|
|
|
|
|
549
|
|
Loss
|
|
|
|
|
|
|
|
|
|
|
|
(1,364
|
)
|
|
Capital expenditures1
|
500
|
|
391
|
|
222
|
|
23
|
|
—
|
|
22
|
|
1,158
|
|
|
Liquids Pipelines
|
|
Gas Transmission and Midstream
|
|
Gas Distribution and Storage
|
|
Renewable Power Generation
|
|
Energy Services
|
|
Eliminations and Other
|
|
Consolidated
|
|
Three months ended
March 31, 2019 |
||||||||||||||
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
2,658
|
|
1,318
|
|
2,191
|
|
152
|
|
6,673
|
|
(136
|
)
|
12,856
|
|
Commodity and gas distribution costs
|
(6
|
)
|
—
|
|
(1,264
|
)
|
(1
|
)
|
(6,629
|
)
|
128
|
|
(7,772
|
)
|
Operating and administrative
|
(801
|
)
|
(513
|
)
|
(294
|
)
|
(42
|
)
|
(33
|
)
|
58
|
|
(1,625
|
)
|
Income/(loss) from equity investments
|
197
|
|
197
|
|
11
|
|
14
|
|
(7
|
)
|
1
|
|
413
|
|
Other income
|
24
|
|
18
|
|
18
|
|
1
|
|
2
|
|
197
|
|
260
|
|
Earnings before interest, income taxes, and depreciation and amortization
|
2,072
|
|
1,020
|
|
662
|
|
124
|
|
6
|
|
248
|
|
4,132
|
|
Depreciation and amortization
|
|
|
|
|
|
|
(840
|
)
|
||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(685
|
)
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(584
|
)
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
2,023
|
|
Capital expenditures1
|
1,020
|
|
394
|
|
173
|
|
14
|
|
1
|
|
25
|
|
1,627
|
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(number of common shares in millions)
|
|
|
|
|
Weighted average shares outstanding
|
2,019
|
|
2,016
|
|
Effect of dilutive options
|
2
|
|
3
|
|
Diluted weighted average shares outstanding
|
2,021
|
|
2,019
|
|
|
Dividend per share
|
|
|
Common Shares1
|
|
$0.81000
|
|
Preference Shares, Series A
|
|
$0.34375
|
|
Preference Shares, Series B
|
|
$0.21340
|
|
Preference Shares, Series C2
|
|
$0.25458
|
|
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 P
|
|
$0.27369
|
|
Preference Shares, Series R
|
|
$0.25456
|
|
Preference Shares, Series 1
|
|
US$0.37182
|
|
Preference Shares, Series 3
|
|
$0.23356
|
|
Preference Shares, Series 5
|
|
US$0.33596
|
|
Preference Shares, Series 7
|
|
$0.27806
|
|
Preference Shares, Series 9
|
|
$0.25606
|
|
Preference Shares, Series 113
|
|
$0.24613
|
|
Preference Shares, Series 13
|
|
$0.27500
|
|
Preference Shares, Series 15
|
|
$0.27500
|
|
Preference Shares, Series 17
|
|
$0.32188
|
|
Preference Shares, Series 19
|
|
$0.30625
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
(millions of Canadian dollars)
|
|
|
|
|
Accounts receivable and other (current assets held for sale)
|
17
|
|
28
|
|
Deferred amounts and other assets (long-term assets held for sale)1
|
330
|
|
269
|
|
Accounts payable and other (current liabilities held for sale)
|
(8
|
)
|
—
|
|
Net assets held for sale
|
339
|
|
297
|
|
1
|
Included within Deferred amounts and other assets at March 31, 2020 and December 31, 2019 is property, plant and equipment of $241 million and $181 million, respectively.
|
7.
|
DEBT
|
|
Maturity
|
Total
Facilities
|
|
Draws1
|
|
Available
|
|
(millions of Canadian dollars)
|
|
|
|
|
|||
Enbridge Inc.
|
2021-2024
|
10,959
|
|
6,250
|
|
4,709
|
|
Enbridge (U.S.) Inc.
|
2021-2024
|
7,829
|
|
2,162
|
|
5,667
|
|
Enbridge Pipelines Inc.
|
20212
|
3,000
|
|
2,155
|
|
845
|
|
Enbridge Gas Inc.
|
20212
|
2,000
|
|
835
|
|
1,165
|
|
Total committed credit facilities
|
|
23,788
|
|
11,402
|
|
12,386
|
|
1
|
Includes facility draws and commercial paper issuances that are back-stopped by credit facility.
|
2
|
Maturity date is inclusive of the one year term out option.
|
Company
|
Issue Date
|
|
|
Principal Amount
|
(millions of Canadian dollars, unless otherwise stated)
|
|
|
||
Enbridge Inc.
|
|
|
||
|
February 2020
|
Floating rate notes
|
|
US$750
|
Company
|
Repayment Date
|
|
|
Principal Amount
|
(millions of Canadian dollars, unless otherwise stated)
|
|
|
||
Enbridge Inc.
|
|
|
||
|
January 2020
|
Floating rate notes
|
US$700
|
|
|
March 2020
|
4.53% medium-term notes
|
$500
|
|
Spectra Energy Partners, LP
|
|
|
||
|
January 2020
|
6.09% senior secured notes
|
|
US$111
|
Westcoast Energy Inc.
|
|
|
|
|
|
January 2020
|
9.90% debentures
|
|
$100
|
8.
|
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME
|
|
Cash Flow
Hedges
|
|
Excluded Components of Fair Value Hedges
|
|
Net
Investment
Hedges
|
|
Cumulative
Translation
Adjustment
|
|
Equity
Investees
|
|
Pension and
OPEB
Adjustment
|
|
Total
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|||||||
Balance as at January 1, 2020
|
(1,073
|
)
|
—
|
|
(317
|
)
|
1,396
|
|
67
|
|
(345
|
)
|
(272
|
)
|
Other comprehensive income/(loss) retained in AOCI
|
(693
|
)
|
3
|
|
(715
|
)
|
5,459
|
|
(7
|
)
|
—
|
|
4,047
|
|
Other comprehensive (income)/loss reclassified to earnings
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts1
|
43
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
43
|
|
Foreign exchange contracts2
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
Amortization of pension and OPEB actuarial loss and prior service costs4
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4
|
|
4
|
|
|
(649
|
)
|
3
|
|
(715
|
)
|
5,459
|
|
(7
|
)
|
4
|
|
4,095
|
|
Tax impact
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax on amounts retained in AOCI
|
182
|
|
—
|
|
—
|
|
—
|
|
(3
|
)
|
—
|
|
179
|
|
Income tax on amounts reclassified to earnings
|
(12
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
(13
|
)
|
|
170
|
|
—
|
|
—
|
|
—
|
|
(3
|
)
|
(1
|
)
|
166
|
|
Balance as at March 31, 2020
|
(1,552
|
)
|
3
|
|
(1,032
|
)
|
6,855
|
|
57
|
|
(342
|
)
|
3,989
|
|
|
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
|
(312
|
)
|
109
|
|
(1,242
|
)
|
8
|
|
—
|
|
(1,437
|
)
|
Other comprehensive (income)/loss reclassified to earnings
|
|
|
|
|
|
|
|
|||||
Interest rate contracts1
|
32
|
|
—
|
|
—
|
|
—
|
|
—
|
|
32
|
|
Foreign exchange contracts2
|
2
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
Other contracts3
|
(9
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(9
|
)
|
Amortization of pension and OPEB actuarial loss and prior service costs4
|
—
|
|
—
|
|
—
|
|
—
|
|
53
|
|
53
|
|
|
(287
|
)
|
109
|
|
(1,242
|
)
|
8
|
|
53
|
|
(1,359
|
)
|
Tax impact
|
|
|
|
|
|
|
||||||
Income tax on amounts retained in AOCI
|
121
|
|
(15
|
)
|
—
|
|
4
|
|
—
|
|
110
|
|
Income tax on amounts reclassified to earnings
|
(14
|
)
|
—
|
|
—
|
|
—
|
|
(15
|
)
|
(29
|
)
|
|
107
|
|
(15
|
)
|
—
|
|
4
|
|
(15
|
)
|
81
|
|
Other
|
—
|
|
—
|
|
—
|
|
—
|
|
55
|
|
55
|
|
Balance as at March 31, 2019
|
(950
|
)
|
(504
|
)
|
3,081
|
|
46
|
|
(224
|
)
|
1,449
|
|
March 31, 2020
|
Derivative
Instruments
Used as
Cash Flow Hedges
|
|
Derivative
Instruments
Used as Net
Investment Hedges
|
|
Derivative Instruments Used as Fair Value 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
|
—
|
|
—
|
|
49
|
|
56
|
|
105
|
|
|
(50
|
)
|
55
|
|
Commodity contracts
|
2
|
|
—
|
|
—
|
|
961
|
|
963
|
|
|
(289
|
)
|
674
|
|
|
2
|
|
—
|
|
49
|
|
1,017
|
|
1,068
|
|
1
|
(339
|
)
|
729
|
|
Deferred amounts and other assets
|
|
|
|
|
|
|
|
|
|||||||
Foreign exchange contracts
|
30
|
|
—
|
|
169
|
|
174
|
|
373
|
|
|
(128
|
)
|
245
|
|
Commodity contracts
|
3
|
|
—
|
|
—
|
|
65
|
|
68
|
|
|
(22
|
)
|
46
|
|
|
33
|
|
—
|
|
169
|
|
239
|
|
441
|
|
|
(150
|
)
|
291
|
|
Accounts payable and other
|
|
|
|
|
|
|
|
|
|||||||
Foreign exchange contracts
|
(5
|
)
|
(20
|
)
|
—
|
|
(899
|
)
|
(924
|
)
|
|
50
|
|
(874
|
)
|
Interest rate contracts
|
(813
|
)
|
—
|
|
—
|
|
(18
|
)
|
(831
|
)
|
|
—
|
|
(831
|
)
|
Commodity contracts
|
—
|
|
—
|
|
—
|
|
(506
|
)
|
(506
|
)
|
|
289
|
|
(217
|
)
|
Other Contracts
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
(1
|
)
|
|
—
|
|
(1
|
)
|
|
(818
|
)
|
(20
|
)
|
—
|
|
(1,424
|
)
|
(2,262
|
)
|
2
|
339
|
|
(1,923
|
)
|
Other long-term liabilities
|
|
|
|
|
|
|
|
|
|||||||
Foreign exchange contracts
|
—
|
|
—
|
|
—
|
|
(2,428
|
)
|
(2,428
|
)
|
|
128
|
|
(2,300
|
)
|
Interest rate contracts
|
(395
|
)
|
—
|
|
—
|
|
—
|
|
(395
|
)
|
|
—
|
|
(395
|
)
|
Commodity contracts
|
—
|
|
—
|
|
—
|
|
(81
|
)
|
(81
|
)
|
|
22
|
|
(59
|
)
|
Other contracts
|
(4
|
)
|
—
|
|
—
|
|
(3
|
)
|
(7
|
)
|
|
—
|
|
(7
|
)
|
|
(399
|
)
|
—
|
|
—
|
|
(2,512
|
)
|
(2,911
|
)
|
|
150
|
|
(2,761
|
)
|
Total net derivative assets/(liabilities)
|
|
|
|
|
|
|
|
|
|||||||
Foreign exchange contracts
|
25
|
|
(20
|
)
|
218
|
|
(3,097
|
)
|
(2,874
|
)
|
|
—
|
|
(2,874
|
)
|
Interest rate contracts
|
(1,208
|
)
|
—
|
|
—
|
|
(18
|
)
|
(1,226
|
)
|
|
—
|
|
(1,226
|
)
|
Commodity contracts
|
5
|
|
—
|
|
—
|
|
439
|
|
444
|
|
|
—
|
|
444
|
|
Other contracts
|
(4
|
)
|
—
|
|
—
|
|
(4
|
)
|
(8
|
)
|
|
—
|
|
(8
|
)
|
|
(1,182
|
)
|
(20
|
)
|
218
|
|
(2,680
|
)
|
(3,664
|
)
|
|
—
|
|
(3,664
|
)
|
1
|
As at March 31, 2020, $1,067 million was reported within Accounts receivable and other and $1 million within Accounts receivable from affiliates on the Consolidated Statements of Financial Position.
|
2
|
As at March 31, 2020, $2,246 million was reported within Accounts payable and other and $16 million within Accounts payable to affiliates on the Consolidated Statements of Financial Position.
|
December 31, 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
|
—
|
|
—
|
|
161
|
|
161
|
|
|
(78
|
)
|
83
|
|
Commodity contracts
|
—
|
|
—
|
|
163
|
|
163
|
|
|
(47
|
)
|
116
|
|
Other contracts
|
1
|
|
—
|
|
3
|
|
4
|
|
|
—
|
|
4
|
|
|
1
|
|
—
|
|
327
|
|
328
|
|
1
|
(125
|
)
|
203
|
|
Deferred amounts and other assets
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
10
|
|
—
|
|
71
|
|
81
|
|
|
(42
|
)
|
39
|
|
Commodity contracts
|
—
|
|
—
|
|
17
|
|
17
|
|
|
(2
|
)
|
15
|
|
Other contracts
|
2
|
|
—
|
|
1
|
|
3
|
|
|
—
|
|
3
|
|
|
12
|
|
—
|
|
89
|
|
101
|
|
|
(44
|
)
|
57
|
|
Accounts payable and other
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
(5
|
)
|
(13
|
)
|
(392
|
)
|
(410
|
)
|
|
78
|
|
(332
|
)
|
Interest rate contracts
|
(353
|
)
|
—
|
|
—
|
|
(353
|
)
|
|
—
|
|
(353
|
)
|
Commodity contracts
|
—
|
|
—
|
|
(173
|
)
|
(173
|
)
|
|
47
|
|
(126
|
)
|
|
(358
|
)
|
(13
|
)
|
(565
|
)
|
(936
|
)
|
2
|
125
|
|
(811
|
)
|
Other long-term liabilities
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
—
|
|
—
|
|
(934
|
)
|
(934
|
)
|
|
42
|
|
(892
|
)
|
Interest rate contracts
|
(181
|
)
|
—
|
|
—
|
|
(181
|
)
|
|
—
|
|
(181
|
)
|
Commodity contracts
|
(5
|
)
|
—
|
|
(60
|
)
|
(65
|
)
|
|
2
|
|
(63
|
)
|
|
(186
|
)
|
—
|
|
(994
|
)
|
(1,180
|
)
|
|
44
|
|
(1,136
|
)
|
Total net derivative assets/(liabilities)
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
5
|
|
(13
|
)
|
(1,094
|
)
|
(1,102
|
)
|
|
—
|
|
(1,102
|
)
|
Interest rate contracts
|
(534
|
)
|
—
|
|
—
|
|
(534
|
)
|
|
—
|
|
(534
|
)
|
Commodity contracts
|
(5
|
)
|
—
|
|
(53
|
)
|
(58
|
)
|
|
—
|
|
(58
|
)
|
Other contracts
|
3
|
|
—
|
|
4
|
|
7
|
|
|
—
|
|
7
|
|
|
(531
|
)
|
(13
|
)
|
(1,143
|
)
|
(1,687
|
)
|
|
—
|
|
(1,687
|
)
|
1
|
As at December 31, 2019, $327 million was reported within Accounts receivable and other and $1 million within Accounts receivable from affiliates on the Consolidated Statements of Financial Position.
|
2
|
As at December 31, 2019, $920 million was reported within Accounts payable and other and $16 million within Accounts payable to affiliates on the Consolidated Statements of Financial Position.
|
|
|
|
|
|
|
|
|
|
|
|||||||
March 31, 2020
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
|
Total
|
|
|
Foreign exchange contracts - United States dollar forwards - purchase (millions of United States dollars)
|
823
|
|
500
|
|
1,750
|
|
—
|
|
—
|
|
—
|
|
|
3,073
|
|
|
Foreign exchange contracts - United States dollar forwards - sell (millions of United States dollars)
|
4,416
|
|
5,631
|
|
5,703
|
|
3,784
|
|
1,856
|
|
—
|
|
|
21,390
|
|
|
Foreign exchange contracts - British pound (GBP) forwards - sell (millions of GBP)
|
89
|
|
27
|
|
28
|
|
29
|
|
30
|
|
90
|
|
|
293
|
|
|
Foreign exchange contracts - Euro forwards - sell (millions of Euro)
|
23
|
|
94
|
|
94
|
|
92
|
|
91
|
|
515
|
|
|
909
|
|
|
Foreign exchange contracts - Japanese yen forwards - purchase (millions of yen)
|
—
|
|
—
|
|
72,500
|
|
—
|
|
—
|
|
—
|
|
|
72,500
|
|
|
Interest rate contracts - short-term pay fixed rate (millions of Canadian dollars)
|
4,618
|
|
4,284
|
|
422
|
|
50
|
|
36
|
|
121
|
|
|
9,531
|
|
|
Interest rate contracts - long-term debt pay fixed rate (millions of Canadian dollars)
|
3,544
|
|
1,619
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
5,163
|
|
|
Equity contracts (millions of Canadian dollars)
|
16
|
|
34
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
50
|
|
|
Commodity contracts - natural gas (billions of cubic feet)
|
(38
|
)
|
57
|
|
45
|
|
22
|
|
10
|
|
11
|
|
|
107
|
|
|
Commodity contracts - crude oil (millions of barrels)
|
5
|
|
4
|
|
1
|
|
—
|
|
—
|
|
—
|
|
|
10
|
|
|
Commodity contracts - power (megawatt per hour) (MW/H)
|
79
|
|
(3
|
)
|
(43
|
)
|
(43
|
)
|
(43
|
)
|
(43
|
)
|
1
|
(16
|
)
|
2
|
1
|
As at March 31, 2020, thereafter includes an average net purchase/(sell) of power of (43) MW/H for 2025.
|
2
|
Total is an average net purchase/(sell) of power.
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(millions of Canadian dollars)
|
|
|
||
Unrealized gain on derivative
|
218
|
|
—
|
|
Unrealized loss on hedged item
|
(203
|
)
|
—
|
|
Realized loss on derivative
|
(12
|
)
|
—
|
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(millions of Canadian dollars)
|
|
|
||
Amount of unrealized gain/(loss) recognized in OCI
|
|
|
||
Cash flow hedges
|
|
|
||
Foreign exchange contracts
|
19
|
|
(10
|
)
|
Interest rate contracts
|
(715
|
)
|
(296
|
)
|
Commodity contracts
|
9
|
|
(3
|
)
|
Other contracts
|
(7
|
)
|
12
|
|
Fair value hedges
|
|
|
||
Foreign exchange contracts
|
3
|
|
—
|
|
Net investment hedges
|
|
|
||
Foreign exchange contracts
|
(7
|
)
|
1
|
|
|
(698
|
)
|
(296
|
)
|
Amount of (gain)/loss reclassified from AOCI to earnings
|
|
|
||
Foreign exchange contracts1
|
1
|
|
2
|
|
Interest rate contracts2
|
43
|
|
32
|
|
Other contracts3
|
—
|
|
(9
|
)
|
|
44
|
|
25
|
|
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.
|
3
|
Reported within Operating and administrative expense in the Consolidated Statements of Earnings.
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(millions of Canadian dollars)
|
|
|
||
Foreign exchange contracts1
|
(2,003
|
)
|
616
|
|
Interest rate contracts2
|
(18
|
)
|
178
|
|
Commodity contracts3
|
473
|
|
(261
|
)
|
Other contracts4
|
(8
|
)
|
5
|
|
Total unrealized derivative fair value gain/(loss), net
|
(1,556
|
)
|
538
|
|
1
|
For the respective three months ended periods, reported within Transportation and other services revenues (2020 - $1,061 million loss; 2019 - $352 million gain) and Net foreign currency gain/(loss) (2020 - $942 million loss; 2019 - $264 million gain) 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 three months ended periods, reported within Transportation and other services revenues (2020 - $34 million gain; 2019 - $26 million loss), Commodity sales (2020 - $1,493 million gain; 2019 - $642 million loss), Commodity costs (2020 - $1,045 million loss; 2019 - $398 million gain) and Operating and administrative expense (2020 - $9 million loss; 2019 - $9 million gain) in the Consolidated Statements of Earnings.
|
4
|
Reported within Operating and administrative expense in the Consolidated Statements of Earnings.
|
|
March 31,
2020 |
|
December 31,
2019 |
|
(millions of Canadian dollars)
|
|
|
||
Canadian financial institutions
|
128
|
|
146
|
|
United States financial institutions
|
310
|
|
40
|
|
European financial institutions
|
165
|
|
3
|
|
Asian financial institutions
|
76
|
|
92
|
|
Other1
|
798
|
|
113
|
|
|
1,477
|
|
394
|
|
1
|
Other is comprised of commodity clearing house and physical natural gas and crude oil counterparties.
|
March 31, 2020
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Gross
Derivative
Instruments
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
Current derivative assets
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
105
|
|
—
|
|
105
|
|
Commodity contracts
|
90
|
|
73
|
|
800
|
|
963
|
|
|
90
|
|
178
|
|
800
|
|
1,068
|
|
Long-term derivative assets
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
373
|
|
—
|
|
373
|
|
Commodity contracts
|
33
|
|
19
|
|
16
|
|
68
|
|
|
33
|
|
392
|
|
16
|
|
441
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
Current derivative liabilities
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
(924
|
)
|
—
|
|
(924
|
)
|
Interest rate contracts
|
—
|
|
(831
|
)
|
—
|
|
(831
|
)
|
Commodity contracts
|
(58
|
)
|
(20
|
)
|
(428
|
)
|
(506
|
)
|
Other contracts
|
—
|
|
(1
|
)
|
—
|
|
(1
|
)
|
|
(58
|
)
|
(1,776
|
)
|
(428
|
)
|
(2,262
|
)
|
Long-term derivative liabilities
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
(2,428
|
)
|
—
|
|
(2,428
|
)
|
Interest rate contracts
|
—
|
|
(395
|
)
|
—
|
|
(395
|
)
|
Commodity contracts
|
(13
|
)
|
(8
|
)
|
(60
|
)
|
(81
|
)
|
Other contracts
|
—
|
|
(7
|
)
|
—
|
|
(7
|
)
|
|
(13
|
)
|
(2,838
|
)
|
(60
|
)
|
(2,911
|
)
|
Total net financial assets/(liabilities)
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
(2,874
|
)
|
—
|
|
(2,874
|
)
|
Interest rate contracts
|
—
|
|
(1,226
|
)
|
—
|
|
(1,226
|
)
|
Commodity contracts
|
52
|
|
64
|
|
328
|
|
444
|
|
Other contracts
|
—
|
|
(8
|
)
|
—
|
|
(8
|
)
|
|
52
|
|
(4,044
|
)
|
328
|
|
(3,664
|
)
|
December 31, 2019
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Gross
Derivative
Instruments
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
Current derivative assets
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
161
|
|
—
|
|
161
|
|
Commodity contracts
|
—
|
|
33
|
|
130
|
|
163
|
|
Other contracts
|
—
|
|
4
|
|
—
|
|
4
|
|
|
—
|
|
198
|
|
130
|
|
328
|
|
Long-term derivative assets
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
81
|
|
—
|
|
81
|
|
Commodity contracts
|
—
|
|
12
|
|
5
|
|
17
|
|
Other contracts
|
—
|
|
3
|
|
—
|
|
3
|
|
|
—
|
|
96
|
|
5
|
|
101
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
Current derivative liabilities
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
(410
|
)
|
—
|
|
(410
|
)
|
Interest rate contracts
|
—
|
|
(353
|
)
|
—
|
|
(353
|
)
|
Commodity contracts
|
(5
|
)
|
(23
|
)
|
(145
|
)
|
(173
|
)
|
|
(5
|
)
|
(786
|
)
|
(145
|
)
|
(936
|
)
|
Long-term derivative liabilities
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
(934
|
)
|
—
|
|
(934
|
)
|
Interest rate contracts
|
—
|
|
(181
|
)
|
—
|
|
(181
|
)
|
Commodity contracts
|
—
|
|
(6
|
)
|
(59
|
)
|
(65
|
)
|
|
—
|
|
(1,121
|
)
|
(59
|
)
|
(1,180
|
)
|
Total net financial assets/(liabilities)
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
—
|
|
(1,102
|
)
|
—
|
|
(1,102
|
)
|
Interest rate contracts
|
—
|
|
(534
|
)
|
—
|
|
(534
|
)
|
Commodity contracts
|
(5
|
)
|
16
|
|
(69
|
)
|
(58
|
)
|
Other contracts
|
—
|
|
7
|
|
—
|
|
7
|
|
|
(5
|
)
|
(1,613
|
)
|
(69
|
)
|
(1,687
|
)
|
March 31, 2020
|
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
|
(4
|
)
|
Forward gas price
|
1.81
|
|
5.15
|
|
3.18
|
|
$/mmbtu2
|
Crude
|
11
|
|
Forward crude price
|
4.46
|
|
96.53
|
|
46.61
|
|
$/barrel
|
Power
|
(57
|
)
|
Forward power price
|
21.00
|
|
70.42
|
|
53.00
|
|
$/MW/H
|
Commodity contracts - physical1
|
|
|
|
|
|
|
||||
Natural gas
|
36
|
|
Forward gas price
|
1.51
|
|
7.53
|
|
2.56
|
|
$/mmbtu2
|
Crude
|
336
|
|
Forward crude price
|
7.00
|
|
76.89
|
|
28.24
|
|
$/barrel
|
NGL
|
6
|
|
Forward NGL price
|
0.11
|
|
1.20
|
|
0.42
|
|
$/gallon
|
|
328
|
|
|
|
|
|
|
1
|
Financial and physical forward commodity contracts are valued using a market approach valuation technique.
|
2
|
One million British thermal units (mmbtu).
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(millions of Canadian dollars)
|
|
|
|
|
Level 3 net derivative liability at beginning of period
|
(69
|
)
|
(11
|
)
|
Total gain/(loss)
|
|
|
|
|
Included in earnings1
|
349
|
|
(52
|
)
|
Included in OCI
|
9
|
|
(3
|
)
|
Settlements
|
39
|
|
(156
|
)
|
Level 3 net derivative liability at end of period
|
328
|
|
(222
|
)
|
1
|
Reported within Transportation and other services revenues, Commodity costs and Operating and administrative expense in the Consolidated Statements of Earnings.
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(millions of Canadian dollars)
|
|
|
||
Service cost
|
42
|
|
51
|
|
Interest cost
|
33
|
|
51
|
|
Expected return on plan assets
|
(67
|
)
|
(84
|
)
|
Amortization of actuarial loss and prior service costs
|
9
|
|
7
|
|
Net periodic benefit costs
|
17
|
|
25
|
|
•
|
Our assets are highly contracted and commercially underpinned by long-term take-or-pay and cost-of-service agreements;
|
•
|
Approximately 95 percent of our revenue in the first quarter of 2020 is from investment grade customers or non-investment grade customers who have provided credit enhancements;
|
•
|
The acquisition of Spectra Energy in 2017 provided us with greater diversification into natural gas with embedded low risk commercial structures. We currently have approximately 40 different sources of cash flows by geography, and by different types of contract structure;
|
•
|
A strong financial position with approximately $14 billion of net available liquidity which gives us the capacity to fund all of our capital projects and any debt maturities through 2021 without accessing the capital markets; and
|
•
|
We limit the maximum cash flow loss that could arise from direct market price risks through a comprehensive long-term economic hedging program.
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(millions of Canadian dollars, except per share amounts)
|
|
|
|
|
Segment earnings/(loss) before interest, income taxes and depreciation and amortization
|
|
|
||
Liquids Pipelines
|
850
|
|
2,072
|
|
Gas Transmission and Midstream
|
(1,054
|
)
|
1,020
|
|
Gas Distribution and Storage
|
604
|
|
662
|
|
Renewable Power Generation
|
120
|
|
124
|
|
Energy Services
|
121
|
|
6
|
|
Eliminations and Other
|
(966
|
)
|
248
|
|
|
|
|
||
Depreciation and amortization
|
(882
|
)
|
(840
|
)
|
Interest expense
|
(706
|
)
|
(685
|
)
|
Income tax recovery/(expense)
|
549
|
|
(584
|
)
|
(Earnings)/loss attributable to noncontrolling interests
|
31
|
|
(37
|
)
|
Preference share dividends
|
(96
|
)
|
(95
|
)
|
Earnings/(loss) attributable to common shareholders
|
(1,429
|
)
|
1,891
|
|
Earnings/(loss) per common share attributable to common shareholders
|
(0.71
|
)
|
0.94
|
|
Diluted earnings/(loss) per common share attributable to common shareholders
|
(0.71
|
)
|
0.94
|
|
•
|
a combined loss of $2,060 million ($1,550 million after-tax) related to our equity method investment in DCP Midstream due to a loss of $1,736 million ($1,306 million after-tax) resulting from an impairment to the carrying value of our investment and a loss of $324 million ($244 million after-tax) resulting from further asset and goodwill impairment losses, refer to Item 1. Financial Statements - Note 9. Impairment of Equity Investments;
|
•
|
a non-cash, unrealized derivative fair value loss of $1,956 million ($1,461 million after-tax) in 2020, compared with a gain of $600 million ($443 million after-tax) in 2019, 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 risks;
|
•
|
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 $417 million ($311 million after-tax) in 2020, compared with $10 million ($8 million after-tax) in 2019; and
|
•
|
a loss of $159 million ($119 million after-tax) in 2020 resulting from the recent Texas Eastern rate case settlement that re-established the Excess Accumulated Deferred Income Tax (EDIT) regulated liability that was previously eliminated in December 2018.
|
•
|
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 Gas Transmission and Midstream segment due to settled rates on Texas Eastern, retroactive to June 1, 2019, resulting from the recent rate case settlement;
|
•
|
increased earnings from new Liquids Pipelines and Gas Transmission and Midstream assets that were placed into service throughout 2019; and
|
•
|
decreased income tax expense due to decreased earnings and the effects of rate-regulated accounting, partially offset by a change in the United States minimum tax.
|
•
|
decreased earnings from our Energy Services segment due to the significant compression of location and quality differentials in certain markets and fewer opportunities to achieve profitable transportation margins on facilities which hold capacity obligations;
|
•
|
decreased earnings from our Gas Distribution and Storage segment due to warmer weather experienced in our franchise areas;
|
•
|
the absence of earnings in 2020 from the federally-regulated portion of our Canadian natural gas gathering and processing businesses which were sold on December 31, 2019; and
|
•
|
higher depreciation and amortization expense as a result of new assets placed into service throughout 2019.
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(millions of Canadian dollars)
|
|
|
|
|
Earnings before interest, income taxes and depreciation and amortization
|
850
|
|
2,072
|
|
•
|
a higher IJT Benchmark Toll on our Mainline System of US$4.21 in 2020 compared with US$4.15 in 2019;
|
•
|
higher Mainline System ex-Gretna throughput of 2,842 kbpd in 2020 compared with 2,717 kbpd in 2019 driven by an increase in supply and continuous capacity optimization;
|
•
|
contributions from the Canadian Line 3 Replacement (L3R) Program that was placed into service on December 1, 2019 with an interim surcharge on Mainline System volumes of US$0.20 per barrel for the IJT Benchmark Toll; and
|
•
|
higher Flanagan South Pipeline and Spearhead Pipeline throughput period-over-period driven by the redirection of throughput to the Gulf Coast resulting from refinery outages in the United States Midwest.
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(millions of Canadian dollars)
|
|
|
||
Earnings/(loss) before interest, income taxes and depreciation and amortization
|
(1,054
|
)
|
1,020
|
|
•
|
a loss of $1,736 million in 2020 resulting from an impairment to the carrying value of our equity method investment in DCP Midstream related to a decline in the market price of DCP Midstream, LP's publicly-traded units;
|
•
|
a loss of $324 million in 2020 resulting from further asset and goodwill impairment losses at our equity method investee, DCP Midstream; and
|
•
|
a loss of $159 million in 2020 resulting from the recent Texas Eastern rate case settlement that re-established the EDIT regulated liability that was previously eliminated in December 2018.
|
•
|
higher revenues from settled rates on Texas Eastern, retroactive to June 1, 2019, resulting from the recent rate case settlement; and
|
•
|
contributions from the Stratton Ridge project and the second phase of the Atlantic Bridge project that were placed into service in the second and fourth quarters of 2019, respectively.
|
•
|
the absence of earnings in 2020 from the federally-regulated portion of our Canadian natural gas gathering and processing businesses which were sold on December 31, 2019;
|
•
|
higher operating costs on our US Gas Transmission assets primarily due to higher pipeline integrity costs; and
|
•
|
narrowing of the AECO-Chicago basis at our Alliance Pipeline joint venture.
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(millions of Canadian dollars)
|
|
|
||
Earnings before interest, income taxes and depreciation and amortization
|
604
|
|
662
|
|
•
|
warmer weather experienced in our franchise service areas in 2020 when compared with the colder than normal weather experienced in 2019. When compared with the normal weather forecast embedded in rates, the warmer weather in 2020 negatively impacted 2020 EBITDA by approximately $41 million while the colder weather in 2019 positively impacted 2019 EBITDA by approximately $33 million; and
|
•
|
the absence of earnings in 2020 from Enbridge Gas New Brunswick and St. Lawrence Gas Company, Inc. which were sold on October 1, 2019 and November 1, 2019, respectively.
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(millions of Canadian dollars)
|
|
|
|
|
Earnings before interest, income taxes and depreciation and amortization
|
120
|
|
124
|
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(millions of Canadian dollars)
|
|
|
|
|
Earnings before interest, income taxes and depreciation and amortization
|
121
|
|
6
|
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(millions of Canadian dollars)
|
|
|
||
Earnings/(loss) before interest, income taxes and depreciation and amortization
|
(966
|
)
|
248
|
|
•
|
a non-cash, unrealized loss of $898 million in 2020, compared with a gain of $252 million in 2019, 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;
|
•
|
a loss of $74 million in 2020 from non-cash changes in a corporate guarantee obligation; and
|
•
|
a loss of $43 million in 2020 from the write-down of certain minor investments in emerging energy and other technologies.
|
•
|
Sabal Trail Phase II - an expansion of our existing Sabal Trail pipeline through the addition of two new greenfield compressor stations in Albany, Georgia and Dunnellon, Florida. The expansion received FERC approval in April 2020 and was placed into service on May 1, 2020.
|
•
|
Saint-Nazaire France Offshore Wind Project - on May 1, 2020, we executed agreements to sell 49% of our investment in EMF to CPP Investments, inclusive of the Saint-Nazaire France Offshore Wind Project. Post closing, CPP Investments will fund their 49% share of all ongoing future development capital. Closing of the transaction is subject to customary regulatory approvals and is expected to occur in the fourth quarter of 2020.
|
•
|
Éolien Maritime France SAS - on May 1, 2020, we executed agreements to sell 49% of our investment in EMF to CPP Investments. Post closing, CPP Investments will fund their 49% share of all ongoing future development capital. Closing of the transaction is subject to customary regulatory approvals and is expected to occur in the fourth quarter of 2020. After the transaction closes, through our investment in EMF, we will own equity interests in three French offshore wind projects, including Saint-Nazaire (25.5%), Fecamp (17.9%), and Courseulles (21.7%). In 2019, the Saint-Nazaire France Offshore Wind Project reached a positive final investment decision and the remaining two projects are expected to reach a final investment decision by next year.
|
|
Maturity
Dates
|
Total
Facilities
|
|
Draws1
|
|
Available
|
|
(millions of Canadian dollars)
|
|
|
|
|
|||
Enbridge Inc.
|
2021-2024
|
10,959
|
|
6,250
|
|
4,709
|
|
Enbridge (U.S.) Inc.
|
2021-2024
|
7,829
|
|
2,162
|
|
5,667
|
|
Enbridge Pipelines Inc.
|
20212
|
3,000
|
|
2,155
|
|
845
|
|
Enbridge Gas Inc.
|
20212
|
2,000
|
|
835
|
|
1,165
|
|
Total committed credit facilities
|
|
23,788
|
|
11,402
|
|
12,386
|
|
1
|
Includes facility draws and commercial paper issuances that are back-stopped by credit facility.
|
2
|
Maturity date is inclusive of the one year term out option.
|
Company
|
Issue Date
|
|
|
Principal Amount
|
(millions of Canadian dollars)
|
|
|
||
Enbridge Inc.
|
|
|
||
|
February 2020
|
Floating rate notes
|
|
US$750
|
Company
|
Repayment Date
|
|
|
Principal Amount
|
(millions of Canadian dollars, unless otherwise stated)
|
|
|
||
Enbridge Inc.
|
|
|
||
|
January 2020
|
Floating rate notes
|
US$700
|
|
|
March 2020
|
4.53% medium-term notes
|
$500
|
|
Spectra Energy Partners, LP
|
|
|
||
|
January 2020
|
6.09% senior secured notes
|
|
US$111
|
Westcoast Energy Inc.
|
|
|
|
|
|
January 2020
|
9.90% debentures
|
|
$100
|
|
Three months ended
March 31, |
|||
|
2020
|
|
2019
|
|
(millions of Canadian dollars)
|
|
|
|
|
Operating activities
|
2,809
|
|
2,176
|
|
Investing activities
|
(1,270
|
)
|
(2,148
|
)
|
Financing activities
|
(1,386
|
)
|
99
|
|
Effect of translation of foreign denominated cash and cash equivalents and restricted cash
|
11
|
|
(7
|
)
|
Increase in cash and cash equivalents and restricted cash
|
164
|
|
120
|
|
•
|
The increase in cash provided by operating activities was primarily attributable to 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 the impact of certain unusual, infrequent or other non-operating factors as discussed under Results of Operations.
|
•
|
The decrease in cash used in investing activities was primarily attributable to lower contributions to the Gray Oak Holdings LLC equity investment in 2020 when compared with the corresponding period in 2019.
|
•
|
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 increase in cash used in financing activities was primarily attributable to a decrease in commercial paper and credit facility draws and issuances of long-term debt in 2020 when compared with the corresponding period in 2019.
|
•
|
The factor above was partially offset by the absence of Westcoast Energy Inc.'s redemption of all of its outstanding Series 7 and Series 8 preference shares in 2020 when compared with the corresponding period in 2019.
|
•
|
Our common share dividend payments increased period-over-period primarily due to the increase in our common share dividend rate.
|
1
|
As at March 31, 2020, the aggregate outstanding principal amount of SEP notes was approximately US$3.9 billion.
|
2
|
As at March 31, 2020, the aggregate outstanding principal amount of EEP notes was approximately US$3.0 billion.
|
USD Denominated1
|
CAD Denominated2
|
Senior Floating Rate Notes due 2020
|
4.850% Senior Notes due 2020
|
Floating Rate Note due 2022
|
4.260% Senior Notes due 2021
|
2.900% Senior Notes due 2022
|
3.160% Senior Notes due 2021
|
4.000% Senior Notes due 2023
|
4.850% Senior Notes due 2022
|
3.500% Senior Notes due 2024
|
3.190% Senior Notes due 2022
|
2.500% Senior Notes due 2025
|
3.940% Senior Notes due 2023
|
4.250% Senior Notes due 2026
|
3.940% Senior Notes due 2023
|
3.700% Senior Notes due 2027
|
3.950% Senior Notes due 2024
|
3.125% Senior Notes due 2029
|
3.200% Senior Notes due 2027
|
4.500% Senior Notes due 2044
|
6.100% Senior Notes due 2028
|
5.500% Senior Notes due 2046
|
2.990% Senior Notes due 2029
|
4.000% Senior Notes due 2049
|
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 March 31, 2020, the aggregate outstanding principal amount of the Enbridge United States dollar denominated notes was approximately US$8.0 billion.
|
2
|
As at March 31, 2020, the aggregate outstanding principal amount of the Enbridge Canadian dollar denominated notes was approximately $7.1 billion.
|
1.
|
Enbridge Inc., the Parent Issuer and Guarantor;
|
2.
|
SEP, a Subsidiary Issuer and Guarantor, and
|
3.
|
EEP, a Subsidiary Issuer and Guarantor
|
|
Parent Issuer and Guarantor
|
Subsidiary Issuer and Guarantor - SEP
|
Subsidiary Issuer and Guarantor - EEP
|
||||||
(millions of Canadian dollars)
|
|
||||||||
Operating revenues
|
—
|
|
—
|
|
—
|
|
|||
Operating income/(loss)
|
56
|
|
—
|
|
(1
|
)
|
|||
Earnings/(loss)
|
(1,195
|
)
|
(27
|
)
|
121
|
|
|||
Earnings/(loss) attributable to common shareholders
|
(1,291
|
)
|
(27
|
)
|
121
|
|
|
Parent Issuer and Guarantor
|
Subsidiary Issuer and Guarantor - SEP
|
Subsidiary Issuer and Guarantor - EEP
|
|||||
(millions of Canadian dollars)
|
|
|||||||
Accounts receivable from affiliates
|
1,065
|
|
—
|
|
35
|
|
||
Short-term loans receivable from affiliates
|
907
|
|
—
|
|
4,674
|
|
||
Other current assets
|
207
|
|
16
|
|
25
|
|
||
Long-term loans receivable from affiliates
|
47,939
|
|
73
|
|
2,095
|
|
||
Other long-term assets
|
5,027
|
|
1,012
|
|
—
|
|
||
Accounts payable to affiliates
|
808
|
|
698
|
|
—
|
|
||
Short-term loans payable to affiliates
|
367
|
|
1,992
|
|
2,112
|
|
||
Other current liabilities
|
4,289
|
|
679
|
|
81
|
|
||
Long-term loans payable to affiliates
|
33,610
|
|
—
|
|
3,416
|
|
||
Other long-term liabilities
|
32,225
|
|
5,160
|
|
4,172
|
|
|
Parent Issuer and Guarantor
|
Subsidiary Issuer and Guarantor - SEP
|
Subsidiary Issuer and Guarantor - EEP
|
||||||
(millions of Canadian dollars)
|
|
||||||||
Accounts receivable from affiliates
|
729
|
|
—
|
|
12
|
|
|||
Short-term loans receivable from affiliates
|
1,691
|
|
—
|
|
3,961
|
|
|||
Other current assets
|
438
|
|
41
|
|
8
|
|
|||
Long-term loans receivable from affiliates
|
47,285
|
|
73
|
|
2,387
|
|
|||
Other long-term assets
|
3,681
|
|
933
|
|
1
|
|
|||
Accounts payable to affiliates
|
736
|
|
367
|
|
68
|
|
|||
Short-term loans payable to affiliates
|
367
|
|
2,058
|
|
1,991
|
|
|||
Other current liabilities
|
5,204
|
|
598
|
|
52
|
|
|||
Long-term loans payable to affiliates
|
33,686
|
|
—
|
|
3,112
|
|
|||
Other long-term liabilities
|
28,585
|
|
4,708
|
|
3,801
|
|
•
|
received less than reasonably equivalent value or fair consideration for the incurrence of the guarantee and was insolvent or rendered insolvent by reason of such incurrence;
|
•
|
was engaged in a business or transaction for which the guarantor’s remaining assets constituted unreasonably small capital; or
|
•
|
intended to incur, or believed that it would incur, debts beyond its ability to pay those debts as they mature.
|
•
|
any direct or indirect sale, exchange or transfer, whether by way of merger, sale or transfer of equity interests or otherwise, to any person that is not an affiliate of Enbridge, of any of Enbridge’s direct or indirect limited partnership of other equity interests in that Partnership as a result of which the Partnership ceases to be a consolidated subsidiary of Enbridge;
|
•
|
the merger of that Partnership into Enbridge or the other Partnership or the liquidation and dissolution of that Partnership;
|
•
|
the repayment in full or discharge or defeasance of those Guaranteed Enbridge Notes, as contemplated by the applicable indenture or guarantee agreement
|
•
|
with respect to EEP, the repayment in full or discharge or defeasance of each of the consenting EEP notes listed above;
|
•
|
with respect to SEP, the repayment in full or discharge or defeasance of each of the consenting SEP notes listed above; or
|
•
|
with respect to any series of Guaranteed Enbridge Notes, with the consent of holders of at least a majority of the outstanding principal amount of that series of Guaranteed Enbridge Notes.
|
•
|
adversely impacted market fundamentals, such as commodity prices and supply and demand for energy, decreasing volumes transported on our systems, increasing our exposure to asset utilization risks and adversely affecting our results;
|
•
|
could adversely impact our Liquids Pipelines growth rate and results; however, the extent of such adverse impact is still uncertain;
|
•
|
could prevent one or more of our secured capital projects from proceeding, delay its completion or increase its anticipated cost;
|
•
|
adversely impacted the operations or financial position of our third-party suppliers, service providers or customers and increase our exposure to contract-related risks or customer credit risk;
|
•
|
adversely impacted the global capital markets, which could adversely impact our ability to access capital markets at effective rates, the ratings assigned to our securities or our credit facilities;
|
•
|
increased our risks associated with emergency measures taken (including remote working, distancing and additional personal protective equipment), including increased cyber security risks, increased costs and the potential for reduced availability or productivity of our employees or third-party contractors or service providers;
|
•
|
adversely impacted our ability to accurately forecast assumptions used to evaluate expansion projects, acquisitions and divestitures on an ongoing basis or for our financial guidance;
|
•
|
adversely impacted the carrying value of our equity method investment in DCP Midstream and could adversely impact the outcome of future asset impairment tests, indicating that the carrying value of such assets might be impaired;
|
•
|
could adversely impact the execution of current and future trade policies between Canada and the United States; and
|
•
|
could result in future business interruption losses that our insurance coverage may not be sufficient to cover.
|
Exhibit No.
|
|
Description
|
|
||
10.1*
|
|
|
10.2*
|
|
|
10.3*
|
|
|
10.4*
|
|
|
31.1*
|
|
|
31.2*
|
|
|
32.1*
|
|
|
32.2*
|
|
|
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:
|
May 7, 2020
|
By:
|
/s/ Al Monaco
|
|
|
Al Monaco
President and Chief Executive Officer
|
|
|
|
|
|
Date:
|
May 7, 2020
|
By:
|
/s/ Colin K. Gruending
|
|
|
|
Colin K. Gruending
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Participant:
|
____
|
Grant Date:
|
____
|
Grant Price per Share:
|
____
|
Shares Subject to the Option:
|
____
|
Final Expiration Date:
|
____
|
Vesting and Exercise Schedule:
|
See Sections 2.1(a) and 2.4
|
|
|
(i)
|
The Final Expiration Date set forth in the Grant Notice;
|
(ii)
|
The expiration of thirty (30) days from the date of Participant’s Termination of Service (or any longer period that the Administrator may otherwise approve); provided that this Section 2.4(b)(ii) shall not apply if the vesting set forth in Section 2.1(b)(i)-(v) applies;
|
(iii)
|
One (1) year following the Participant’s Termination of Service due to the Participant’s death;
|
(iv)
|
Five (5) years following the Participant’s Termination of Service due to the Participant’s Retirement;
|
(v)
|
The expiration of thirty (30) days from the Participant’s Termination of Service plus any applicable Notice Period for an involuntary Termination of Service by the Company or a Subsidiary without Cause (other than a CIC Termination); and
|
(vi)
|
Immediately upon the date of Participant’s Termination of Service for Cause.
|
Participant:
|
____
|
Grant Date:
|
____
|
Target Number of PSUs:
|
____
|
Performance Period:
|
____
|
|
|
|
Threshold
|
Target
|
Maximum
|
Multiplier
|
[0.00]x
|
[1.00]x
|
[2.00]x
|
[Performance Goal]
|
|
|
|
|
Threshold
|
Target
|
Maximum
|
Multiplier
|
[0.00]x
|
[1.00]x
|
[2.00]x
|
[Performance Goal]
|
|
|
|
Participant:
|
____
|
Grant Date:
|
____
|
Number of RSUs:
|
____
|
Term:
|
____
|
Maturity Date:
|
____
|
|
|
Participant:
|
____
|
Grant Date:
|
____
|
Number of RSUs:
Maturity Date:
|
____
____
|
|
|
|
|
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:
|
May 7, 2020
|
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:
|
May 7, 2020
|
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:
|
May 7, 2020
|
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:
|
May 7, 2020
|
By:
|
/s/ Colin K. Gruending
|
|
|
|
Colin K. Gruending
Executive Vice President and Chief Financial Officer (Principal Financial Officer) Enbridge Inc. |