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Enbridge Reports First Quarter Adjusted Earnings of $468 Million or $0.56 Per Common Share

2015-05-06 07:00 ET - News Release

CALGARY, ALBERTA -- (Marketwired) -- 05/06/15

HIGHLIGHTS

(all financial figures are unaudited and in Canadian dollars unless otherwise noted)


--  First quarter loss was $383 million, including the impact of net
    unrealized non-cash mark-to-market losses 
    
--  First quarter adjusted earnings were $468 million or $0.56 per common
    share 
    
--  Expansion of the Canadian Mainline system between Edmonton and Hardisty
    placed into service in April 
    
--  Enbridge delivered a formal proposal to transfer the majority of its
    Canadian Liquids Pipelines business and certain renewable energy assets
    to Enbridge Income Fund 
    
--  Enbridge announced a plan to optimize previously announced expansions of
    its Regional Oil Sands System 
    
--  Enbridge announced it will build, own and operate the Stampede Oil
    Pipeline to the planned Stampede development in the Gulf of Mexico 
    
--  Effective March 1, 2015, Enbridge quarterly common share dividend
    increased by 33% over the last year to an annual rate of $1.86 per share

Enbridge Inc. (Enbridge or the Company) (TSX:ENB)(NYSE:ENB) - "Enbridge delivered a solid first quarter of 2015, reflecting a combination of strong asset performance and the ongoing successful execution of our growth capital program," said Al Monaco, President and Chief Executive Officer. "Adjusted earnings for the first quarter of 2015 were $468 million or $0.56 per common share.

"Our results were in line with our expectations, and we remain on track to deliver full year adjusted earnings per share within our guidance range of $2.05 to $2.35," Mr. Monaco said. "Our resilient business model continues in the current business environment to deliver reliable and predictable earnings and cash flows to our investors.

"Throughput on Enbridge's liquids mainline remained strong. Over the first quarter our systems were very highly utilized, shipping an average 2.2 million barrels per day across the Canada/United States border," Mr. Monaco added. "We are now seeing the benefit of our system optimization through record volumes on our mainline. The full benefits of those efforts will be seen over the course of 2015.

"Enbridge continues to deliver solid earnings and strong returns to our shareholders. However, low commodity prices are challenging for our customers, so we are keenly focused on providing low cost, reliable transportation to the best markets for them," Mr. Monaco said. "We are pleased that stable tolls and our capacity optimization and market access initiatives that took place through 2014 are helping producers to maximize their netbacks and provide reliable feedstock for refiners."

Enbridge achieved key milestones on two of its liquids pipelines growth projects since reporting its year end results in February. During April, the Company brought into service - on schedule and under budget - a new 36-inch, 181-kilometre (112-mile) pipeline connecting its Edmonton and Hardisty Terminals. The $1.8 billion pipeline is a significant addition to the Company's mainline system and will initially have capacity to transport up to 570,000 barrels per day (bpd), but can be readily expanded to 800,000 bpd.

On April 13, 2015, a Minnesota Administrative Law Judge (ALJ) recommended that the Minnesota Public Utility Commission grant a Certificate of Need permit for the Company's proposed Sandpiper Pipeline Project (Sandpiper). The 965-kilometre (600-mile), US$2.6 billion project will transport Bakken crude from Enbridge's Beaver Lodge Station, south of Tioga, North Dakota, to Clearbrook, Minnesota through a 24-inch diameter pipeline. A 30-inch diameter pipeline will connect Clearbrook to Superior, Wisconsin. Subject to regulatory approval, the pipeline is expected to begin service in 2017. A review of the proposed pipeline route will follow a decision on the Certificate of Need.

"As we have said, our primary goal with this project is to ensure public safety and environmental protection. The ALJ recommendation is a positive step forward, and a reflection of the hard work our team did engaging communities, listening to people and addressing their concerns. We also thank the numerous stakeholders for their support of the project and helping us to make this an even better project," said Mr. Monaco. "Sandpiper is an important project for Bakken shippers and will add much needed pipeline capacity to enable them to reach key markets and improve netbacks.

"Looking ahead, our commercially secured portfolio of growth projects remains secure and is on track for execution," Mr. Monaco said. "We are positive on the longer-term fundamentals supporting our businesses and the development of infrastructure that our customers require and believe we are well positioned to continue to deliver industry leading earnings and dividend growth through 2018 and beyond. Our growth will continue to be supported by a disciplined approach to investment and project execution and attention to our number one priority - the safety and reliability of our systems."

In February, the National Energy Board (NEB) approved Conditions 16 and 18 of Enbridge's application for the reversal and expansion of Line 9B. The Company subsequently applied to the NEB for a Leave to Open to commence operation of the project. The pipeline is mechanically complete and awaiting the NEB's final approval.

"Line 9B is critical to ensuring that eastern Canadian refiners have access to reliable and cost effective feedstock and assuring the competitiveness of eastern Canada's petrochemical industry," said Mr. Monaco.

On March 31, 2015, Enbridge delivered a formal proposal (the Canadian Restructuring Plan) to a committee of independent members of the boards of Enbridge Commercial Trust (ECT) and Enbridge Income Fund Holdings Inc. (ENF) to transfer Enbridge's Canadian Liquids Pipelines business and certain renewable energy assets to Enbridge Income Fund (the Fund). The transaction is anticipated to provide Enbridge with low-cost funding to support the enterprise-wide $44 billion growth capital program and is expected to be accretive to adjusted earnings per share by approximately 10% per year on average from 2015 to 2018.

The transaction is also expected to transform the Fund and ENF through the acquisition of high quality assets that come with embedded growth. ENF's dividend is expected to increase by approximately 10% on closing, and by a further 10% at the beginning of 2016 and each year thereafter through to 2019. In conjunction with the Canadian Restructuring Plan, the Company also increased its quarterly common share dividend by 33% effective March 1, 2015 and introduced a new dividend payout policy range of 75% to 85% of adjusted earnings.

"This transaction is expected to deliver significant value to investors of both Enbridge and Enbridge Income Fund Holdings and it will even better position us to extend our industry-leading growth beyond 2018," added Mr. Monaco. "We expect the transaction to close mid-2015."

Operations

Adjusted earnings for the first quarter of 2015 were $468 million, or $0.56 per common share, compared with adjusted earnings of $492 million, or $0.60 per common share, for the first quarter of 2014.

In Liquids Pipelines, the throughput trends experienced in 2014 continued into the first quarter of 2015 and resulted in record throughput on Canadian Mainline. Furthermore, the impact of a strong United States dollar, which had a hedged and an unhedged component, compared with the Canadian dollar had a positive impact on Canadian Mainline earnings as the International Joint Tariff Benchmark (IJT) Toll and its components are set in United States dollars. However, these factors were more than offset by a lower quarter-over-quarter Canadian Mainline IJT Residual Benchmark Toll. Changes in the Canadian Mainline IJT Residual Benchmark Toll are inversely related to the Lakehead System Toll, which was higher due to the recovery of incremental costs associated with EEP's growth projects. Growing volumes on the system, together with the impact of an increase to the Canadian Mainline IJT Residual Benchmark Toll and applicable surcharges for system expansions are expected to drive strong revenue and earnings growth over the balance of 2015.

Within Sponsored Investments, Enbridge Energy Partners, L.P. (EEP) and the Fund both had strong first quarters of 2015, with each reflecting the favourable impact of drop downs from Enbridge. EEP adjusted earnings reflected higher volumes and tolls in its liquids business, as well as new assets placed into service. EEP earnings also reflected the incremental earnings from the acquisition of the 66.7% interest in Alberta Clipper previously held by Enbridge. The earnings increase from the Fund was attributable to the transfer of natural gas and diluent pipeline interests from Enbridge and higher preferred unit distributions received from the Fund.

Enbridge Gas Distribution Inc. (EGD) continued to deliver reliable results in the first quarter, although earnings were lower than the comparative period in 2014 due to the application of lower interim distribution rates in the first quarter of 2015. Any shortfall in revenues arising from the difference between interim and final 2015 rates will be recovered during 2015 and will not have an impact on full year results which are expected to be higher than the prior year.

Adjusted earnings were also impacted by higher preference share dividends in the Corporate segment, as well as higher interest expense across various business segments reflecting incremental preference share and debt issued to fund the Company's growth capital program.

The adjusted earnings discussed above exclude the impact of unusual, non-recurring or non-operating factors, the most significant of which are changes in unrealized derivative fair value gains and losses from the Company's long-term hedging program. See Non-GAAP Measures.

FIRST QUARTER 2015 OVERVIEW

For more information on Enbridge's growth projects and operating results, please see the Management's Discussion and Analysis (MD&A) which is filed on SEDAR and EDGAR and also available on the Company's website at www.enbridge.com/InvestorRelations.aspx.


--  Loss attributable to common shareholders were $383 million in the first
    quarter of 2015 compared with earnings of $390 million in the first
    quarter of 2014. The Company delivered solid results from operations in
    the first quarter of 2015; however, the visibility and comparability of
    the operating results are impacted by a number of unusual, non-recurring
    or non-operating factors, the most significant of which is changes in
    unrealized derivative fair value gains and losses. The Company has a
    comprehensive long-term economic hedging program to mitigate interest
    rate, foreign exchange and commodity price exposures. The changes in
    unrealized mark-to-market accounting impacts from this program create
    volatility in short-term earnings, but the Company believes that over
    the long-term it supports the reliable cash flows and dividend growth
    upon which the Company's investor value proposition is based. Other
    factors impacting the comparability of period-over-period earnings
    included an out-of-period adjustment of $71 million recognized in the
    first quarter of 2015 in respect of an overstatement of deferred income
    tax expense in 2013 and 2014, as well as insurance recoveries of $9
    million after-tax related to the Line 37 crude oil release which
    occurred in June 2013. 
    
--  Enbridge's adjusted earnings for the first quarter of 2015 and 2014 were
    $468 million and $492 million, respectively. Liquids Pipelines adjusted
    earnings decreased as the positive effects of higher throughput, higher
    terminalling revenues, a favourable United States/Canada foreign
    exchange rate and lower income taxes on Canadian Mainline were more than
    offset by a lower quarter-over-quarter Canadian Mainline IJT Residual
    Benchmark Toll and higher operating and administrative expense. On April
    1, 2015, the Canadian Mainline IJT Residual Benchmark Toll increased
    from US$1.53 per barrel to US$1.63 per barrel. Growing volumes on the
    system, together with the impact of a higher Canadian Mainline IJT
    Residual Benchmark Toll and applicable surcharges for system expansions
    as they come into service, including surcharges for the recently
    completed Edmonton to Hardisty Expansion, are expected to drive strong
    revenues and earnings growth over the balance of 2015. In Gas
    Distribution, EGD adjusted earnings decreased in the first quarter of
    2015 due to lower interim distribution rates applicable in the first
    quarter of 2015 compared with the interim rates applicable in the
    corresponding 2014 period. EGD expects to collect and record the
    difference between the interim rates and applicable 2015 rates during
    2015. Positively impacting adjusted earnings in Gas Distribution was the
    absence of a loss that Enbridge Gas New Brunswick Inc. incurred in 2014
    under a contract to sell natural gas to the province of New Brunswick.
    Due to an abnormally cold winter in the first quarter of 2014, costs
    associated with the fulfilment of the contract were higher than the
    revenues received. Within Sponsored Investments, EEP adjusted earnings
    reflected higher throughput and tolls on its liquids business, as well
    as the impact of new assets placed into service in 2014. EEP adjusted
    earnings also reflected the incremental earnings from the acquisition of
    the remaining 66.7% interest of Alberta Clipper previously held by
    Enbridge. Higher contribution from EEP also reflected distributions from
    Class D units which were issued to Enbridge in July 2014 under an equity
    restructuring transaction and from Class E units which were issued in
    January 2015 in connection with the transfer of Alberta Clipper. The
    Fund benefitted from the transfer of natural gas and diluent pipeline
    interests from Enbridge. Higher preferred unit distributions received by
    Enbridge from the Fund also provided an increase to adjusted earnings.
    Finally, within the Corporate segment, higher preference share dividends
    arising from an increase in the number of preference shares in 2014 to
    fund the Company's growth capital program negatively impacted adjusted
    earnings. 
    
--  On March 31, 2015, Enbridge announced it had delivered a formal proposal
    to a committee of independent members of the boards of ECT and ENF to
    transfer Enbridge's Canadian Liquids Pipelines business, comprised of
    Enbridge Pipelines Inc. and Enbridge Pipelines (Athabasca) Inc., along
    with certain renewable energy assets, with a combined carrying value of
    approximately $17 billion and an associated secured growth capital
    program of approximately $15 billion, to the Fund. The formal proposal
    follows the Company's December 3, 2014 announcement of the proposed
    Canadian Restructuring Plan. The general terms and projected financial
    outcomes of the proposed transfer are substantially consistent with
    those originally described in that announcement. The transfer also
    remains subject to approval by the boards of ECT and ENF, following a
    recommendation by a joint special committee. 
    
--  Effective, March 15, 2015, the Enbridge Board of Directors appointed
    Rebecca B. Roberts as a director. Ms. Roberts is the former President of
    Chevron Pipe Line Company and Chevron Global Power Generation and is
    currently a director of MSA Safety Incorporated and Black Hills
    Corporation. Ms. Roberts was previously also a director of Enbridge
    Energy Management, L.L.C. and Enbridge Energy Company, Inc., the general
    partner of EEP. 
    
--  On March 5, 2015, the Company announced a plan to optimize previously
    announced expansions of its Regional Oil Sands System currently in
    execution. The optimization plan, which has been agreed to with the
    affected shippers, including Suncor Energy Inc., Total E&P Canada Ltd.
    and Teck Resources Limited (the Fort Hills Partners), will enable
    deferral of the southern segment of the Wood Buffalo Extension by
    connecting it to the Athabasca Pipeline Twin. The optimization involves
    the upsize of a 100-kilometre (60-mile) segment of the Wood Buffalo
    Extension between Cheecham, Alberta and Kirby Lake, Alberta from a 30-
    inch diameter pipeline to a 36-inch diameter pipeline, which will now
    connect to the origin of the Athabasca Pipeline Twin at Kirby Lake,
    Alberta. The capacity of the Athabasca Pipeline Twin would be expanded
    from 450,000 bpd to 800,000 bpd through additional horsepower. 
    
    The definitive cost estimate of the Wood Buffalo Extension was finalized
    at approximately $1.8 billion before optimization. As a result of the
    optimization, the cost estimate to complete the integrated Wood Buffalo
    Extension and Athabasca Pipeline Twin projects is expected to decrease
    from approximately $3.0 billion to approximately $2.6 billion. Along
    with the Company's Norlite Pipeline System, the Wood Buffalo Extension
    and the Athabasca Pipeline Twin will be the conduit to ship diluent to,
    and blended bitumen from, the proposed Fort Hills Partners' oil sands
    project which has an expected 2017 in-service date. 
    
    
--  On January 12, 2015, Enbridge announced that it will build, own and
    operate a crude oil pipeline in the Gulf of Mexico to connect the
    planned Stampede development, which is operated by Hess Corporation, to
    an existing third-party pipeline system. Stampede Oil Pipeline (Stampede
    Pipeline), a 26-kilometre (16-mile), 18-inch diameter pipeline with
    capacity of approximately 100,000 bpd will originate in Green Canyon
    Block 468, approximately 350 kilometres (220 miles) southwest of New
    Orleans, Louisiana, at an estimated depth of 1,200 metres (3,500 feet).
    After finalization of scope and a definitive cost estimate, Stampede
    Pipeline is expected to be completed at an approximate cost of US$0.2
    billion and is expected to be placed into service in 2018. 

DIVIDEND DECLARATION

On May 5, 2015, the Enbridge Board of Directors declared the following quarterly dividends. All dividends are payable on June 1, 2015 to shareholders of record on May 15, 2015.


----------------------------------------------------------------------------
Common Shares                                                       $0.46500
Preference Shares, Series A                                         $0.34375
Preference Shares, Series B                                         $0.25000
Preference Shares, Series D                                         $0.25000
Preference Shares, Series F                                         $0.25000
Preference Shares, Series H                                         $0.25000
Preference Shares, Series J                                       US$0.25000
Preference Shares, Series L                                       US$0.25000
Preference Shares, Series N                                         $0.25000
Preference Shares, Series P                                         $0.25000
Preference Shares, Series R                                         $0.25000
Preference Shares, Series 1                                       US$0.25000
Preference Shares, Series 3                                         $0.25000
Preference Shares, Series 5                                       US$0.27500
Preference Shares, Series 7                                         $0.27500
Preference Shares, Series 9                                         $0.27500
Preference Shares, Series 11                                        $0.27500
Preference Shares, Series 13                                        $0.27500
Preference Shares, Series 15                                        $0.27500
----------------------------------------------------------------------------
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CONFERENCE CALL

Enbridge will hold a conference call on Wednesday, May 6, 2015 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to discuss the first quarter 2015 results. Analysts, members of the media and other interested parties can access the call toll-free at 1-800-708-4539 from within North America and outside North America at 1-847-619-6396, using the access code of 39285337#. The call will be audio webcast live at http://edge.media-server.com/m/p/88t4gnim/lan/en. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay will be available toll-free at 1-888-843-7419 within North America and outside North America at 1-630-652-3042 (access code 39285337#) until May 13, 2015.

The conference call will begin with presentations by the Company's President and Chief Executive Officer and the Chief Financial Officer, followed by a question and answer period for investment analysts. A question and answer period for members of the media will then immediately follow.

Enbridge, a Canadian Company, is a North American leader in delivering energy and has been included on the Global 100 Most Sustainable Corporations in the World ranking for the past seven years. As a transporter of energy, Enbridge operates, in Canada and the United States, the World's longest crude oil and liquids transportation system. The Company also has significant and growing involvement in natural gas gathering, transmission and midstream businesses, and an increasing involvement in power transmission. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company and provides distribution services in Ontario, Quebec, New Brunswick and New York State. As a generator of energy, Enbridge has interests in more than 2,200 megawatt (MW) (1,600 MW net) of renewable and alternative energy generating capacity and is expanding its interests in wind, solar and geothermal facilities. Enbridge employs more than 11,000 people, primarily in Canada and the United States and is ranked as one of Canada's Top 100 Employers for 2015. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com. None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise part of this news release.

FORWARD-LOOKING INFORMATION

Forward-looking information, or forward-looking statements, have been included in this news release to provide the Company's shareholders and potential investors with information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge's and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows; expected costs related to projects under construction; expected in-service dates for projects under construction; expected capital expenditures; estimated future dividends; the Canadian Restructuring Plan; and expected costs related to leak remediation and potential insurance recoveries.

Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; expected exchange rates; inflation; interest rates; availability and price of labour and pipeline construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; final approval of definitive transfer terms by Enbridge and ENF and the Fund with respect to the Canadian Restructuring Plan; receipt of all necessary shareholder and regulatory approvals that may be required for the Canadian Restructuring Plan; and weather. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements. These factors are relevant to all forward-looking statements as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected earnings/(loss) or adjusted earnings/(loss) and associated per share amounts, the impact of the Canadian Restructuring Plan on Enbridge, the adjusted dividend payout policy or estimated future dividends. The most relevant assumptions associated with forward-looking statements on projects under construction, including estimated completion dates and expected capital expenditures include the following: the availability and price of labour and pipeline construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather; and customer and regulatory approvals on construction and in-service schedules.

Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the Canadian Restructuring Plan, revised dividend policy, adjusted earning guidance, operating performance, regulatory parameters, project approval and support, weather, economic and competitive conditions, changes in tax law and tax rate increases, exchange rates, interest rates, commodity prices and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.

NON-GAAP MEASURES

This news release contains references to non-GAAP measures, including adjusted earnings/(loss), which represent earnings or loss attributable to common shareholders adjusted for unusual, non-recurring or non-operating factors on both a consolidated and segmented basis. These factors, referred to as adjusting items, are reconciled and discussed in the financial results sections for the affected business segments in the Company's MD&A. Adjusting items referred to as changes in unrealized derivative fair value gains and losses are presented net of amounts realized on the settlement of derivative contracts during the applicable period. Management believes the presentation of non-GAAP measures such as adjusted earnings/(loss) provides useful information to investors and shareholders as it provides increased transparency and predictive value. Management uses adjusted earnings/(loss) to set targets, including setting the Company's dividend payout target, and to assess the performance of the Company. Adjusted earnings/(loss) and adjusted earnings/(loss) for each of the segments are not measures that have a standardized meaning prescribed by accounting principles generally accepted in the United States of America (U.S. GAAP) and are not considered GAAP measures; therefore, these measures may not be comparable with similar measures presented by other issuers. The table below summarizes the reconciliation of the GAAP and non-GAAP measures.

NON-GAAP RECONCILIATIONS


                                                              Three months  
                                                                  ended     
                                                                March 31,   
                                                            ----------------
                                                               2015    2014 
----------------------------------------------------------------------------
(millions of Canadian dollars)                                              
Earnings/(loss) attributable to common shareholders            (383)    390 
Adjusting items(1):                                                         
  Changes in unrealized derivative fair value loss(2)           977     190 
  Make-up rights adjustments                                      4       2 
  Leak insurance recoveries                                      (9)      - 
  Colder than normal weather                                    (33)    (33)
  Project development and transaction costs                       3       - 
  Tax related adjustments                                        (6)      - 
  Out-of-period adjustment                                      (71)      - 
  Gains on sale of non-core assets and investment                 -     (57)
  Other                                                         (14)      - 
----------------------------------------------------------------------------
Adjusted earnings                                               468     492 
----------------------------------------------------------------------------
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1  The above table summarizes adjusting items by nature. For a detailed     
   listing of adjusting items by segment, refer to individual segment       
   discussions in the MD&A.                                                 
2  Changes in unrealized derivative fair value gains and losses are         
   presented net of amounts realized on the settlement of derivative        
   contracts during the applicable period.                                  
                                                                            
HIGHLIGHTS                                                                  
                                                                            
                                                             Three months   
                                                                ended       
                                                              March 31,     
                                                         -------------------
                                                             2015      2014 
----------------------------------------------------------------------------
(unaudited; millions of Canadian dollars, except per                        
 share amounts)                                                             
Earnings attributable to common shareholders                                
  Liquids Pipelines                                          (422)       44 
  Gas Distribution                                            139       136 
  Gas Pipelines, Processing and Energy Services                16       191 
  Sponsored Investments                                       131        84 
  Corporate                                                  (247)     (111)
----------------------------------------------------------------------------
  Earnings/(loss) attributable to common shareholders                       
   from continuing operations                                (383)      344 
  Discontinued operations - Gas Pipelines, Processing and                   
   Energy Services                                              -        46 
----------------------------------------------------------------------------
                                                             (383)      390 
  Earnings/(loss) per common share                          (0.46)     0.48 
  Diluted earnings/(loss) per common share                  (0.46)     0.47 
----------------------------------------------------------------------------
Adjusted earnings(1)                                                        
  Liquids Pipelines                                           192       218 
  Gas Distribution                                            106       103 
  Gas Pipelines, Processing and Energy Services                41        59 
  Sponsored Investments                                       127        84 
  Corporate                                                     2        28 
----------------------------------------------------------------------------
                                                              468       492 
  Adjusted earnings per common share                         0.56      0.60 
----------------------------------------------------------------------------
Cash flow data                                                              
  Cash provided by operating activities                     1,510       333 
  Cash used in investing activities                        (1,866)   (2,743)
  Cash provided by financing activities                       225     2,465 
----------------------------------------------------------------------------
Dividends                                                                   
  Common share dividends declared                             396       291 
  Dividends paid per common share                          0.4650    0.3500 
----------------------------------------------------------------------------
Shares outstanding (millions)                                               
  Weighted average common shares outstanding                  841       820 
  Diluted weighted average common shares outstanding          854       830 
----------------------------------------------------------------------------
Operating data                                                              
Liquids Pipelines - Average deliveries (thousands of                        
 barrels per day)                                                           
  Canadian Mainline(2)                                      2,210     1,904 
  Regional Oil Sands System(3)                                815       671 
  Spearhead Pipeline                                          150       184 
Gas Distribution - Enbridge Gas Distribution (EGD)                          
  Volumes (billions of cubic feet)                            217       212 
  Number of active customers (thousands)(4)                 2,108     2,076 
  Heating degree days(5)                                                    
    Actual                                                  2,232     2,206 
    Forecast based on normal weather                        1,784     1,777 
Gas Pipelines, Processing and Energy Services - Average                     
 throughput volume (millions of cubic feet per day)                         
  Vector Pipeline                                           1,855     1,783 
  Enbridge Offshore Pipelines                               1,146     1,371 
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HIGHLIGHTS


1  Adjusted earnings represent earnings attributable to common shareholders 
   adjusted for unusual, non-recurring or non-operating factors. Adjusted   
   earnings and adjusted earnings per common share are non-GAAP measures    
   that do not have any standardized meaning prescribed by GAAP.            
2  Canadian Mainline includes deliveries ex-Gretna, Manitoba which is made  
   up of United States and eastern Canada deliveries originating from       
   western Canada.                                                          
3  Volumes are for the Athabasca mainline and Waupisoo Pipeline and exclude 
   laterals on the Regional Oil Sands System.                               
4  Number of active customers is the number of natural gas consuming EGD    
   customers at the end of the period.                                      
5  Heating degree days is a measure of coldness that is indicative of       
   volumetric requirements for natural gas utilized for heating purposes in 
   EGD's franchise area. It is calculated by accumulating, for the fiscal   
   period, the total number of degrees each day by which the daily mean     
   temperature falls below 18 degrees Celsius. The figures given are those  
   accumulated in the Greater Toronto Area.                                 

Forward-Looking Information and Non-GAAP Measures

This news release contains forward-looking information and references to non-GAAP measures. Significant related assumptions and risk factors, and reconciliations are described under the Forward-Looking Information and Non-GAAP Measures sections of this news release, respectively.

Contacts:
Enbridge Inc.
Graham White
Media
(403) 508-6563 or Toll Free: (888) 992-0997
graham.white@enbridge.com

Enbridge Inc.
Adam McKnight
Investment Community
(403) 266-7922
adam.mcknight@enbridge.com

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