Enbridge (ENB) reported Q3 EPS of Cdn$0.67, Cdn$0.02 better than the analyst estimate of Cdn$0.65.
FINANCIAL OUTLOOK:
The Company reaffirms its 2022 financial guidance, which includes adjusted EBITDA between $15.0 and $15.6 billion and DCF per share between $5.20 to $5.50. Results for the nine months of 2022 are in line with expectations and the Company anticipates that its businesses will continue to experience strong capacity utilization and throughput, and good operating performance through the balance of the year with normal course seasonality. Forward financial guidance reflects a provision in recognition of the uncertainty of future Mainline tolls associated with the ongoing commercial framework discussions with shippers.
B.C. Pipeline Expansions
Enbridge continues to advance engineering and design work on the previously announced 535 MMcf/d expansion of the T-North segment (Aspen Point) of the B.C. Pipeline System with an estimated capital cost of $1.2 billion. The Company expects to file its application with the CER in 2024 with an anticipated in-service date in 2026.
During the third quarter, Enbridge successfully completed an oversubscribed binding open season and is proceeding with the 300 MMcf/d T-South Expansion project with a capital cost of up to $3.6 billion.
The T-South Expansion will consist of compressor unit additions, pipeline looping and other ancillary station modifications. Enbridge has now begun the regulatory and permitting process and plans to file its application with the Canada Energy Regulator (CER) in 2024. The project is expected to be placed in service in 2028 and will be underpinned by a cost-of-service commercial model.
Today, Enbridge announced that it is proceeding with a binding open season for a further expansion of approximately 500 MMcf/d on the T-North segment of the B.C. Pipeline with an estimated capital cost of up $1.9 billion to meet demand for further egress from growing Montney production, LNG exports, and to accommodate downstream demand. The open season is expected to close in early 2023.