enbridge earnings q3 2020

Our scale at three million barrels a day gives us a total advantage, and cash flows are supported by long-term contracts that push and pull volumes through the Mainline. And we're in an equity self-funding mode here. But if you're not looking to monetize your oil and gas infrastructure and make a bigger, more meaningful switch into clean energy, why not look at executing some generational opportunities to capture financial accretion and really drive that payout ratio down to well below your 60% to 70% target? As per usual, this call is webcast, and I encourage those listening on the phone to follow along with the supporting slides. And did I hear 100,000 to 300,000 barrels a day lower volume in Q4? I'll start on Slide 20 with our enterprise quarterly highlights. Gas transmission also is benefiting from the realization of ongoing cost savings initiatives. Q3 was strong, so we're on track with the 2020 guidance, and we're narrowing that down to the midpoint of our 4.50 to 4.80 DCF per share range. And of course, renewables are going to continue to grow. And combined with the debt capacity generated by that EBITDA, we anticipate $5 billion to $6 billion of annual financial capacity to reinvest. This was primarily driven by the contribution from the two German offshore wind farms recently put into service. Rate proceedings are under way. So we are very active with the international kind of hydrogen market. I think, as again we outlined, a lot of free cash flow coming at us after that. When you look at your cost deck or your dividend yield and you compare it to your all-in cost of debt, it's probably the widest it's been for some time. ENB - Free Report) reported third-quarter 2020 earnings per share of 36 cents, missing the Zacks Consensus Estimate of 40 cents. The economics, in our view, for blue and green are challenged right now, but support will increase and costs are bound to come down, so another good long-term opportunity for us to capitalize on our infrastructure. To put its resiliency into context, in order to replace Ontario's peak energy day needs with 100% electricity, you'd need to add 85,000 megawatts of new capacity or three times the current level. Higher, in this case, means they're configured to run heavy crudes that maximize margins and returns. If you could just maybe give us a framing of how you think about that longevity versus just other hydrocarbon assets in North America. When you take a look at what assets you want to pick up, can you kind of just outline the framework of what you're looking for? Home Hi. And there's a number of very good reasons for that, which we can get into, if you like. So just trying to get your views on kind of the economics of production filling all this new pipeline capacity. So you can see the marginal economics on that completion capital is powerful and compelling. It's certainly way up the order. Hey, guys. Shares of Enbridge (NYSE:ENB) moved higher by 1.2% in pre-market trading after the company reported Q3 results.Quarterly Results Earnings per share were down 15.49% year over year to … Enbridge, Inc. engages in the provision of gas and oil businesses. In addition, we'll place continued emphasis across our business on efficient growth opportunities that generate outsized returns with limited capital. Just curious, and this may be a Vern question or someone else on the team. Finally, of course, we'll talk about 2021 outlook and then beyond. So we're at the natural conduit between very long-lifed heavy supply and the most competitive refineries in — globally. The pies then at the bottom here illustrate the gradual approach to diversification that has aligned us well with the global supply mix. Looking ahead at forward basis differentials, we see challenging market conditions for this business continuing to the fourth quarter, although better than the third quarter and recovering in 2021. Ben, Colin. So the focus right now, as Colin alluded to, is on low capital intensity growth. Please go ahead. And you don't really see that risk or concern in the debt market, I would say. The chart on the left shows the Nelson Index for global refiners. But I think everyone's having conversations about it. Good morning, and welcome to the Enbridge Inc. third-quarter 2020 earnings call. We have in our plans that TMX will get completed, and we'll also fill up very rapidly as well. On to Slide 25. Market data powered by FactSet and Web Financial Group. And we expect the business to return to its historic patterns in 2021 and beyond. The team is excited about it, and we think you'll find it interesting. Thanks, Jonathan, and good morning. The company forecast 2021 EBITDA (earnings … And given the interest and capital allocation, he'll talk about our framework and our current thinking. By the way, the regulator just recently approved a program for customers to choose RNG supply, and that's a good signal in our view. So that's at a high level how we'd look at the type of asset and the business line in at least as far as asset acquisitions. We're at a point where we're piloting this. That's why Canadian barrels with big growth potential and proximity to U.S. markets are ideally positioned. EBITDA in the regional oil sands system was about $20 million lower this quarter due to disruptions upstream from the Suncor plant fire, and separately, disruption to the basin supply. First of all, renewables really doesn't come into this picture. Enbridge Inc. (ENB.TO) (TSE:ENB) Earnings Information Enbridge Inc. (ENB.TO) last issued its earnings data on November 6th, 2020. First, modernizing equipment and applying technology to tackle emissions and reduce consumption using lower carbon sources of fuel for our pumps and compressors. And our next question comes from the line of Robert Catellier with CIBC Capital Markets. Let's move to Slide 21 for the financial review. Today, we have 1,800 megawatts of capacity net to us, so that's sizable. And I think that's entirely suitable and a good opportunity to marry up that outlook with the great heavy refining capacity in the Midwest and the Gulf. [Operator instructions] Our first question comes from the line of Rob Hope with Sidoti Bank. In the third quarter, for example, this impact was approximately $120 million and would have led to EBITDA of $3.1 billion otherwise. And I know these opportunities might not be ESG-accretive per se right now and will definitely go against the grain. So on the right, we've laid out what's being done today and what's embedded in that outlook that we showed. These customers and the utilities that serve them aren't going anywhere anytime soon. I'll get Vern to comment. We have a ladder of contracts here. Specifically, we transported about 160,000 barrels per day, fewer than Q3 last year, which translates to approximately a $50 million impact. Thanks, Al. As we look out to 2021, we expect steady continued EBITDA growth. I do accept that the synergy capture would be attractive, but that's how we look at the broader picture. Enbridge said it also expects rates for gas transportation to rise and a growing customer base for gas distribution and storage. We've piloted North America's first power to gas facility, which uses an electrolyzer to convert water to hydrogen. I'll wrap up with ESG, Colin. So I think for 2021, we're pretty much set. [Operator instructions] Please note that this conference is being recorded. Recall, we're cautious on volumes fully returning from COVID, and it turns out that we were right with that forecast. We do see very strong demand for heavy. So might be good, though, just to get Bill and Cynthia's comment. In fact, Enbridge explicitly reaffirmed its 2020 guidance of distributable cash flow per share of between $4.50 and $4.80. We've got a lot in front of us right now. Vern, you got anything to add on that? Could you talk about how significant that could be compared to kind of Scope 1 and 2 emissions, both in terms of what the size is now and how Scope 3 emissions can be reduced? in Press Releases by — 360 Feed Wire. And the plan is to continue to grow this business in the same way we have, which is organically at a reasonable pace. Oil demand continues to rise and stabilizes, and that's driven by accelerating growth in developing countries, increasing pet chem demand. And although the midstream business today overall in our industry accounts for about 2% of the energy value chain, we're going to be tracking performance against Scope 3 as well to reflect our investments in low-carbon infrastructure that we mentioned. Thank you guys I'll call. And I think it's really important that, as Colin mentioned, for the next year, we're focused on executing the capital program. Yes, thanks for that question. Two of those, Saint Nazaire and Fécamp, are in construction and on schedule for in-service in '22 and '23. And to be very clear, we do not take speculative positions on commodity prices. Al Monaco -- President and Chief Executive Officer. Or are you looking for new platforms? And the reason for that is that ESG has been part of how we've operated this business for a very long time. I think in this environment, when the basis is getting crushed, I think we did well on Contango earlier in the year, but I think it's one of those things where you've got an interim issue here that's just affecting the profitability. So what we've just gone through on our core assets illustrates the resiliency and longevity of our business for a long time. Thanks for outlining our emissions targets. We expect full-year leverage to be well within our target range of 4.5 to under five times debt to EBITDA, which range itself is well within BBB+ territory. I look forward to a continued discussion on all of the energy transition at investor day. And this time around, we're going to showcase our new technology labs that we established last year. Act 0.4 Est 0.39 Q2 2020 Enbridge Inc Earnings Conference call 07/29/2020 09:00 AM (EDT) ENB. So this is a pretty small business for us. Good morning. Sie können Ihre Einstellungen jederzeit ändern. And I accept the fact that, that's a big opportunity. The refineries we serve in the Gulf and the Midwest are the most complex, which, along with their scale, makes them highly competitive. We get value from the basis. With respect to your second question on recycling capital, I think the answer to that is yes. But it's always good to keep in mind that the renewables investments we make actually go to Scope 3. I think we've demonstrated an acuity and willingness to do that, and we'll keep looking at that. I guess, specifically, is it fair to conclude that despite the 8% to 9% dividend yield, that you remain committed to current dividend and growing that dividend? Sure. That's, again, excellent question. You can see that in the fundamentals as well, and we all know the reasons for it. So our expectation is when Line 3 goes into service, that we will fill up immediately. So there isn't really anything structural I'd say long-term different here. It's a capital-light business generally, and so we like it. Enbridge (NYSE: ENB) is scheduled to announce Q3 earnings results on Friday, November 6th, before market open. And all of that has allowed us to generate steadily increasing cash flows in all sites, commodity price downturns, the financial crisis, upstream disruptions, and now, COVID. Great question. Along that road, we embedded options to adapt to changing fundamentals and capture long-term growth. So we do have lots of opportunities to interact through World Hydrogen Council and other activities. So we intend to annually increase the dividend including for 2021. Enbridge (NYSE: ENB) reported Q3 EPS of $0.48, $0.04 better than the analyst estimate of $0.44. Please go ahead. I'm just wondering from a high level, to meet these targets, would you need to increase the amount of capex you're spending on renewables? In the last-reported quarter, the company came up with earnings … Enbridge (ENB) to Report Q3 Earnings: What's in the Cards? Obviously, the normal investment criteria, Rob, would apply here. Please go ahead. But I don't think you mentioned anything about the longevity of the assets that you serve up in the oil sands. Robert Kwan -- RBC Capital Markets -- Analyst. Good morning. On to Slide 2, where I'll remind you that we'll be referring to forward-looking information on today's call. Yes. First, volumes on the Mainline are recovering in line with our expectations, though we still anticipate volumes to be down 100,000 to 300,000 barrels per day relative to what was factored into our original guidance. The final topic I'd like to discuss is capital allocation on Slide 26. And some people call this the bridge, but it's going to be, in our view, an awfully long bridge. This should be driven by the following factors: continued recovery of Mainline light crude volumes, annualized contributions of positive GTM rate settlements, continued customer growth and energy capture in utility. And our next question comes from the line of Michael Lapides with Goldman. The S&P 500 index is up about 6% over the same period. Traditionally, you look to grow the dividend and show that stability, but is there real value in it at this point? In terms of share buybacks, you can think of that as a supplemental method. And obviously, you guys are making some progress in the permitting process for Line 3. Wondering why not move buybacks even higher up in the priority list there and really kind of pivot capital there to knock down that share count while it's so cheap. If you are a member of the media, please direct your inquiries to our communications team, and we will be happy to respond. Adjusted earnings are lower than the prior year, though largely owing to a full year of — a full charge of depreciation expense on Line 3 Canada, as you recall, put into service in December, while we are earning only a modest interim surcharge. So I see how share repurchases moved up the queue there. In Gas Transmission, we expected Q4 to be impacted by some catch-up spending and the ongoing reduction in distributions from DCP. And we should remind you that under the prior administration, where Mr. Biden was a Vice President, we were able to get all of our cross-border permits. And finally, on liquids. But in a word, we'll continue high-grading our focus on projects that deliver the best risk-adjusted returns with high confidence. Could you talk about, I think, kind of some of the Scope 3 emission reductions are a bit later dated. And third, no matter what future demand looks like or what kind of energy we're talking about, we need existing infrastructure, replacements and newbuild. Our North American onshore wind and solar assets continued to perform well and in line with expectations, also largely unaffected by pandemic effects. Our next question comes from the line of Andrew Kuske with Credit Suisse. January 8, 2019 Enbridge Inc. I think for us, Jeremy, this is really a matter of timing. So I think it kind of comes down to that one. Announces Successful Completion of Enbridge Energy Partners, L.P. and Spectra Energy Partners, LP Consent Solicitations and Implementation of Guarantees more. Hey. Bill Yardley -- Executive Vice President of Gas Transmission and Midstream. And of course, this won't take a lot of capital investment just given the nature of those pathways. So now over to Colin. Linda, it's Colin. We're involved in a couple of different studies as to how that impacts the metallurgy, what the right percentage is to blend. If you think about both of those systems, very large platforms, massive long-haul pipelines, and the same really holds for the gas utility business. Sure. I think the impact that we're experiencing in the third quarter is very COVID-specific. Enbridge Inc. ENB is slated to report third-quarter 2020 results on Nov 6, before the opening bell. Our Newsletters. And I think Al set up the timing on that pretty clearly. Yeah. OK. On the first part, I'll take it, on the offshore strategy, let's call it. And on permitting, the PCA contested case finished up with a positive ALJ decision. Most important to that is the diversity of cash flow by business line, commodity and geography, and we have over 40 sources of cash flow. Ben Pham -- BMO Capital Markets -- Analyst. And of course, cash flows will be further enhanced by our embedded growth, cost reductions, total escalators and the like, and of course, those require zero capital. This was offset during the quarter somewhat by the headwind of capacity restrictions related to our integrity program, which is about $50 million of EBITDA during the quarter. And once again, thank you, and have a great day. As I mentioned, the majority of these assets that were underpinned by take-or-pay arrangements, we collect tariffs for any unused space. And of course, procuring lower emissions power from a transitioning grid overall, for example, given that coal is coming off, that's part of how we're going to achieve the targets. And we didn't really want to go on today, but I think you're asking a great question. Patrick Kenny -- National Bank Financials. So we're cautious to use our currency certainly at this valuation. So it's something that we're interested in, and we've had an opportunity to monitor. With that, I'll hand it over to Al Monaco. EV adoption climbs to 15% of the fleet or 300 million vehicles versus 1% today. 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'D like to further the conversation you addressed, Al, with your comments Mainline!

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