Enbridge(US:ENB)2024-05-10 16:06Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 11% year-over-year, with DCF per share up by 4% primarily due to strong asset performance across liquids, gas transmission, and renewables [140][145] - Base business EBITDA and DCF per share both increased by 8%, with debt to EBITDA at 4.6x, indicating a record financial quarter [146][147] Business Line Data and Key Metrics Changes - Liquids pipelines maintained high utilization levels, with the mainline transporting over 3.1 million barrels per day in Q1, expecting an average throughput of 3 million barrels per day for the year [148][149] - The acquisition of two strategic docks adjacent to Ingleside for $200 million aims to optimize operations and increase VLCC docking windows [150] - In the Permian, an open season was launched to expand Gray Oak capacity by up to 120,000 barrels per day, with new storage tanks constructed at Ingleside [151] Market Data and Key Metrics Changes - The demand for natural gas is expected to increase significantly due to the build-out of data centers and generative AI, necessitating a material increase in power generation [153] - The company is well-positioned to support LNG terminals and the growing demand for natural gas [142] Company Strategy and Development Direction - The company is focused on maximizing flexibility and optionality in financing, with over 85% of required financing for U.S. gas utility acquisitions already secured [141] - A secured growth program of $25 billion is in place, heavily weighted towards gas transmission utility business, reducing exposure to inflation and regulatory risk [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial guidance for 2024, with strong operational performance and safety standards [140][145] - The company aims to continue growing dividends and sustainably returning capital to shareholders, supported by a strong balance sheet and diversified cash flows [21][20] Other Important Information - The company published its 23rd annual sustainability report, highlighting its performance in environmental, social, and governance goals [143] - The leverage guardrails of 4.5x to 5x debt to EBITDA remain in place, supported by a low-risk business model [19] Q&A Session Summary Question: How does the recent Capital Power CCS project impact the Wabamun Hub project? - Management noted that while the Capital Power project was shelved due to economic viability issues, they remain committed to pursuing the Wabamun Hub project with Heidelberg Materials, which has garnered financial support [42][46] Question: What is the expected capital deployment for the gas distribution segment? - Approximately half of the current maintenance capital is attributed to the distribution segment, with a focus on maintaining asset longevity [82] Question: How does the company view the potential for gas-fired generation in light of increasing electricity demand? - Management acknowledged the potential for gas-fired generation to meet rising electricity demand but emphasized that current focus remains on renewable energy projects [90][106] Question: What is the expected CapEx cadence post-utility acquisitions? - The company guided a growth CapEx run rate of $6 billion to $7 billion annually, with a selective approach to capital deployment [111]