Enbridge(US:ENB)2024-02-09 19:36Financial Data and Key Metrics Changes - In 2023, EBITDA increased by 6% compared to the previous year, primarily driven by strong performance in the Liquids business unit [41] - DCF per share rose by 1%, despite the dilution impact from a $4.6 billion equity issuance in September for utility acquisitions [41] - The company achieved record financial performance, meeting its financial guidance for the 18th consecutive year [50][66] Business Line Data and Key Metrics Changes - The Liquids Pipeline transported a record 3.2 million barrels per day in Q4 2023, averaging 3.1 million barrels per day for the full year [84] - Gas Distribution and Storage added 46,000 new customers in 2023, exceeding expectations, with $1.2 billion invested in modernizing and expanding the distribution network [62] - The renewable business improved due to increased interest in German offshore wind assets, which closed in early November [122] Market Data and Key Metrics Changes - The mainline throughput averaged 3.26 million barrels per day in December, indicating strong demand and utilization [44] - Apportionment on the mainline increased throughout Q4, reflecting high demand for transportation capacity [44] - The company expects mainline volumes to remain robust, with a forecast of approximately 3 million barrels per day for 2024 [68] Company Strategy and Development Direction - The company is focused on integrating three gas utilities in the U.S., which will create the largest integrated gas utility in North America [79] - Enbridge aims to maintain a disciplined growth approach while adhering to leverage and payout targets [70] - The company is committed to sustainability and has made significant investments in emission reduction technologies [53][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resolving regulatory issues in Ontario, despite recent disappointments with the Ontario Energy Board's decisions [10][90] - The company anticipates continued strong performance in 2024, with EBITDA guidance set between $16.6 billion and $17.2 billion [68] - Management highlighted the importance of maintaining a strong local presence in the jurisdictions where they operate [20] Other Important Information - The company announced a 3.1% increase in dividends, marking the 29th consecutive annual increase [50][98] - Enbridge's debt to EBITDA ratio stands at 4.1x, providing ample room for future acquisitions [78] - The company has secured $24 billion in its growth program, including new projects and utility growth capital [124] Q&A Session Summary Question: Progress on regulatory approval for U.S. utilities - Management confirmed that two out of three federal regulatory approvals are in place, with expectations for state-level approvals to proceed throughout the year [103] Question: Update on rerouting Line 5 around Bad River lands - The appeals hearing has started, with a decision expected later this year, and the company is working cooperatively with the Bad River Band [107] Question: Mainline outlook for 2024 - Management expressed confidence in the mainline's capacity utilization, expecting it to be substantially full, with a guidance of 3 million barrels per day [112]