Enbridge Announces 33% Dividend Increase, 2015 Adj. EPS View - Quick Facts

(RTTNews) - Enbridge Inc. (ENB, ENB.TO) announced a 33% increase to its next quarterly common share dividend as well as a Canadian restructuring plan and corresponding new dividend payout policy range.

Enbridge also announced 2015 adjusted earnings per share guidance of C$2.05 to C$2.35. Analysts polled by Thomson Reuters expect the company to report earnings of C$2.24 per share for fiscal 2015. Analysts' estimates typically exclude special items.

Enbridge's quarterly common share dividend will increase 33% to C$0.465 per share with the next dividend payable March 1, 2015 to shareholders of record on February 16, 2015.

Enbridge plans to transfer its Canadian Liquids Pipelines business, comprised of Enbridge Pipelines Inc. (EPI) and Enbridge Pipelines (Athabasca) Inc. (EPA), and including certain renewable energy assets, to its Canadian affiliate, Enbridge Income Fund (EIF or the Fund). Enbridge Income Fund Holdings Inc. (ENF.TO) (EIFH or Holdings) is expected to acquire an increasing interest in the assets through investments in the equity of EIF over a period of several years in amounts consistent with its equity funding capability. Based on Enbridge's current planning and financing assumptions, EIFH's resulting dividend growth rate is expected to average about 10% per year from 2015 through 2018 through a combination of the organic growth of the assets and its increasing interest in the assets.

Enbridge's Board of Directors has approved a revised dividend payout policy range of 75% to 85% of adjusted earnings. The previous payout policy range was 60% to 70%. The payout rate is expected to rise from the lower end of the new range in 2015 to the higher end by 2018 as the funding of Enbridge's current record organic growth capital program progresses.

Enbridge also announced it is reviewing a potential restructuring plan that would involve the transfer of its directly held U.S. liquids pipeline assets to Enbridge Energy Partners, L.P. (EEP) , a U.S. affiliate of Enbridge. This review is underway and has not progressed to a conclusion.