Enbridge (NYSE: ENB) reported Q4 EPS of Cdn$0.56, versus Cdn$0.61 reported last year.

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

• Full year GAAP earnings of $3.0 billion or $1.48 per common share, compared with GAAP earnings of $5.3 billion or $2.64 per common share in 2019, all of which amounts include non-recurring and unrealized items
• Adjusted earnings of $4.9 billion or $2.42 per common share, compared with $5.3 billion or $2.65 per common share in 2019
• Adjusted earnings before interest, income tax and depreciation and amortization (EBITDA) of $13.3 billion, compared with $13.3 billion in 2019
• Cash Provided by Operating Activities of $9.8 billion, compared with $9.4 billion in 2019
• Distributable Cash Flow (DCF) of $9.4 billion, compared with $9.2 billion in 2019
• DCF per share of $4.67, exceeded mid-point of full-year guidance of $4.50 to $4.80; exited 2020 with strong financial position with Debt to EBITDA of 4.6x
• Reaffirmed 2021 DCF per share guidance range of $4.70 to $5.00 and EBITDA range of $13.9 billion to $14.3 billion.
• Increased the 2021 quarterly dividend by 3% to $0.835 per share reflecting the 26th consecutive annual increase
• Progressed $16 billion of secured growth capital supporting 5 to 7% DCF per share growth through 2023; $1.6 billion of growth projects placed into service in 2020 and early 2021
• Commenced construction on the final leg of the Line 3 Replacement Project in Minnesota following receipt of all permits and regulatory approvals; targeting Q4 2021 in-service
• Updated Line 3 Replacement capital cost to $9.3 billion from $8.2 billion (source currency), reflecting final costs for the Canadian segment and updated estimates for the U.S. segment
• Announced a 35% energy intensity reduction target by 2030, net-zero emissions by 2050, and diversity and inclusion goals, furthering nearly two decades of Environmental, Social and Governance (ESG) leadership
• Secured a 3-year $1.0 billion Sustainability Linked Credit Facility which incorporates Enbridge's ESG goals
• Installed first solar self-powered facility on Texas Eastern gas transmission pipeline; two additional facilities in gas transmission and liquids pipelines businesses under construction
• Announced purchase of 6.6 million barrels of storage assets located in Cushing, further advancing U.S. Gulf Coast (USGC) strategy

CEO COMMENT

Commenting on the Company's operations, strategic priorities and outlook, Al Monaco, President and CEO of Enbridge noted the following:

"Operationally, we performed well in the fourth quarter, completing a strong 2020 in the face of a very challenging energy and economic backdrop. Our four rock-solid franchises once again delivered solid results and provided essential service and reliable energy supply that is absolutely critical to the everyday lives of North Americans and the global economy.

"Despite positive indicators early in 2021, the pace of recovery is still unknown as COVID-19 cases remain high in many parts of the world. We will continue to be focused on our critical role in delivering reliable energy, as well as on the safety of our employees and our stakeholders.

"2020 utilization rates in the Gas Transmission, Gas Distribution and Renewable Power businesses remained high and delivered highly predictable financial results this year. On our Liquids Mainline, volumes were impacted by reduced refinery demand, but they've steadily recovered in-line with our expectations reaching 2.65 mmbpd in the fourth quarter. Heavy capacity has been apportioned since July on strong Midwest and USGC market demand and light volumes are returning to normal. Our team also optimized a portion of unutilized light capacity by moving medium crude blends for customers on our light pipelines.

"Full-year DCF per share of $4.67 exceeded the budget we struck prior to COVID and the mid-point of our guidance range – a great outcome that reflects the strong demand pull from the markets we serve, our low-risk commercial model and the early and decisive actions we took to mitigate the impacts of the pandemic. This was made possible by the exceptional efforts of our people across our entire organization in the face of unprecedented challenges from the pandemic and reduced energy demand. And, although we were eligible for government support, we didn't avail ourselves of these options.

"In addition to strong operational and financial performance in 2020, we've moved the ball forward on our strategic priorities.

"That starts with how we've taken steps to further our ESG leadership and we're pleased to see that the rating firms continue to recognize our work in this area with a top ranking in Midstream. ESG has long been integrated into our business and strategies, and in 2020, we raised the bar again by committing to a 35% reduction in energy intensity by 2030, net-zero emissions by 2050 and setting new diversity and inclusion goals all tied to management compensation. And, in February, we launched the first Sustainability Linked credit facility in our sector, aligning our ESG performance with funding costs.

"In Liquids Pipelines, Line 3 construction is underway in Minnesota after a comprehensive and thorough regulatory process over the last 6 years, and we're proud of the broad community support for the project. We're focused on executing world class construction and environmental practices and we've implemented the most up-to-date health and safety protocols to protect communities and our crews. Construction is progressing to our targeted Q4 in-service date.

"We've updated our cost estimate for the full Line 3 project to reflect winter construction, further enhancements to our industry-leading environmental protections and construction techniques, regulatory and permitting delays, higher capitalized interest and COVID-19 protocols. The higher project costs will be managed well within our funding plans and strong financial position. Our updated economics for Line 3 remain attractive.

"In Gas Transmission, we completed our U.S. $0.7 billion 2020 modernization program, the U.S. $0.1 billion Sabal Trail Phase II, and the final phase of the U.S. $0.1 billion Atlantic Bridge project. We also came to an agreement with our customers for new rates on Texas Eastern, Algonquin and the BC Pipeline, and we're advancing rate proceedings on a few other systems.

"In Gas Distribution, we added 43 thousand customers and completed the 2020 $0.5 billion growth capital program, including the Owen Sound Reinforcement project and the Windsor Line Replacement project. We also continue to make progress on synergy capture related to the amalgamation of our utilities.

"In our Renewable Power business, construction of the Saint-Nazaire and Fécamp offshore wind projects are advancing well. Also, in this business, we completed our first self-powering facility on Texas Eastern with another under construction, as well as an additional solar facility on the Liquids Pipelines' Mainline in Alberta.

"Looking forward, execution on our $16 billion of secured growth capital and further optimization of business performance provide excellent visibility to 5-7% DCF per share growth through 2023. In 2021, we anticipate another year of robust EBITDA and cash flow growth, driven by $10 billion of growth capital to be placed into service and embedded growth within the business, including a further $100 million of cost savings. This investment program is also timely in supporting the reboot of economies in which we operate.

"While we expect the economic recovery will be gradual, North American energy fundamentals are steadily improving with recovering energy prices, increasing exports and long-term global demand growth drivers still intact. This outlook reinforces our strategic priorities and view of organic growth potential.

"Post completion of Line 3, we expect to generate $5-6 billion of annual investment capacity. We'll remain disciplined and deploy capital towards the best uses, prioritizing balance sheet strength, investment in low capital intensity growth and regulated utility or utility-like projects. We will carefully utilize our remaining investable capacity on the most value enhancing opportunities including further organic growth, and potential for share buybacks.

"Our dividend remains central to our value proposition and we expect to ratably grow it up to the level of average annual DCF per share growth, while maintaining a payout of 60-70% of DCF. In 2021, we're very pleased to have increased the dividend again for our shareholders, for the 26th consecutive year.

"Finally, our long-lived, demand-pull assets and low risk pipeline-utility model have demonstrated resiliency and predictable cash flow generation in the most difficult economic conditions we've seen in decades, and we're positioned to continue to generate strong long-term cash flow growth."

FINANCIAL POSITION AND OUTLOOK

Enbridge has exited 2020 in a strong financial position with Debt to EBITDA of 4.6x and expects to remain within the Company's target range of 4.5 to 5.0x throughout 2021, inclusive of spending on its secured growth capital program.

Enbridge ended the fourth quarter with over $13 billion of available liquidity, which is more than sufficient to meet all of its funding requirements through the end of 2021 without further access to capital markets. In February of 2021, Enbridge entered into a three-year, syndicated Sustainability Linked Credit Facility for $1.0 billion. The facility includes terms that allow Enbridge to reduce borrowing costs if the Company achieves an interim threshold on its ESG goals. As a result of the sustainability linked credit facility and other financing activities completed in 2020, our resilient cash flows and our current liquidity position, we concurrently cancelled a one year, revolving, syndicated credit facility for $3.0 billion, ahead of its scheduled March 2021 maturity.

At the Company's December 2020 investor conference, Enbridge released its 3-Year Outlook, reaffirming its growth expectation of 5-7% annualized DCF per share through 2023. Enbridge also provided 2021 financial guidance which included EBITDA between $13.9 and $14.3 billion with a projected range of 2021 DCF of $4.70 to $5.00 per share.

Included within the Company's 2021 guidance is a Mainline volume forecast of 2.7 mmbpd or more in the first quarter of 2021, with continued improvement in volumes through the remainder of the year. This outlook also assumes the U.S. portion of Line 3 comes into service in the fourth quarter of 2021 and contributes approximately $200 million of EBITDA this year.

The Company increased the 2021 dividend by 3% to $0.835 per share quarterly, commencing with the dividend payable on March 1, 2021 to shareholders of record on February 12, 2021.

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