Enbridge Announces 2025 Financial Guidance, 3% Dividend Increase and Reaffirms Near-term Growth Outlook

Core Viewpoint - Enbridge Inc. has announced its 2025 financial guidance, including a 3.0% increase in its annual common share dividend, reflecting strong operational performance and growth outlook in the energy sector [1][5]. Financial Guidance - The company expects adjusted EBITDA for 2025 to be between CAD 19.4 billion and CAD 20.0 billion, with distributable cash flow (DCF) per share projected at CAD 5.50 to CAD 5.90 [2][6]. - Enbridge reaffirmed its 2024 full-year guidance, anticipating EBITDA near the top end of CAD 17.7 billion to CAD 18.3 billion and DCF per share around the midpoint [2][6]. - The growth outlook for 2023 to 2026 includes 7-9% growth for EBITDA, 4-6% for adjusted earnings per share (EPS), and approximately 3% for DCF per share [2][15]. Dividend Increase - The quarterly common share dividend will increase from CAD 0.915 to CAD 0.9425, effective March 1, 2025, marking the 30th consecutive annual increase [12][5]. Business Performance and Growth Drivers - Enbridge's 2025 EBITDA guidance reflects a 9% increase from the midpoint of its 2024 recast guidance and is 17% higher than the original 2024 guidance, driven by contributions from U.S. gas utilities acquisitions and secured projects [4][6]. - Key growth drivers for 2025 include higher utilization across liquids pipelines, contributions from secured growth projects, and full-year contributions from U.S. gas utilities [7][9]. Capital Investments and Financing - The company plans to deploy approximately CAD 7 billion in capital for 2025, with a strong balance sheet expected to maintain a Debt-to-EBITDA ratio within the target range of 4.5-5.0x [13][6]. - Enbridge anticipates approximately CAD 9 billion in debt issuances for refinancing existing debt maturities, with no external equity required [13][14]. Market Outlook - The CEO highlighted a rebound in global oil consumption and increasing natural gas demand driven by LNG growth and electric power demand, positioning Enbridge favorably to meet energy needs [3][5]. - The company is committed to delivering reliable growth and maintaining its status as a preferred investment opportunity [5][6].