Enbridge CEO Discusses Q3 2010 Results – Earnings Call Transcript
Enbridge, Inc. (
)
Q3 2010 Earnings Conference Call
November 3, 2010 9:00 AM ET
Executives
Guy Jarvis – VP, IR and Enterprise Risk
Pat Daniel – President and CEO
Richard Bird – EVP, CFO and Corporate Development
Steve Wuori – President, Liquids Pipelines
Analysts
Ted Durbin – Goldman Sachs
Juan Plessis – Canaccord
Matthew Akman – Macquarie
Robert Kwan – RBC Capital Markets
Andrew Kuske – Credit Suisse
Carl Kirst – BMO Capital
Pierre Lacroix – Desjardins
Justin Amoa – Argus Media
Sam Kanes – Scotia Capital
Lucretia Karinaz – Platts
Scott Haggett – Reuters
Presentation
Operator
Good morning, ladies and gentlemen. Welcome to the Enbridge Inc. 2010 third quarter financial results conference call.
I would now like to turn the meeting over to Mr. Guy Jarvis.
Guy Jarvis
Compare to:
Previous Statements by ENB
»
Enbridge Inc. Q2 2010 Earnings Call Transcript
»
Enbridge Inc. Q1 2010 Earnings Call Transcript
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Enbridge Inc. Q4 2009 Earnings Call Transcript
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Enbridge Inc. Q3 2009 Earnings Call Transcript
Thank you and good morning. Welcome to Enbridge Inc.’s 2010 third quarter earnings call. With me this morning are Pat Daniel, President and Chief Executive Officer; Richard Bird, Executive Vice President, Chief Financial Officer and Corporate Development; Steve Wuori, Executive Vice President Liquids Pipelines; and Colin Gruending, Vice President and Controller.
Before we begin, I’d like to point out that we may refer to forward-looking information during this call. By its nature, this information applies certain assumptions and expectations about future outcomes, so we remind you it is subject to the risks and uncertainties affecting every business including ours.
Our slides include a summary of the more significant factors and risks that might affect future outcomes for Enbridge, which are also discussed more fully in our public disclosure filings available on both SEDAR and Edgar Systems.
This call is webcast, and I encourage those listening on the phone lines to view the supporting slides, which are available on our website. A replay and podcast of the call will be available later today, and a transcript will be posted to our website shortly thereafter.
The Q&A format will be similar to past calls. The initial Q&A session is restricted to the analyst community and once completed we will invite questions from the media.
I would also remind you that Pat Murray and I will be available after the call for any follow-up questions that you may have.
So at this point I’d like to turn the call over to Pat Daniel.
Pat Daniel
Thank you, Guy, and good morning, everyone. Thank you for joining us for our review of the third quarter results. Before we get into our Q3 results, I’d like to update you on the progress of our cleanup efforts related to the spill that we experienced on Line 6B this summer in and around the communities of Marshall and the Battle Creek, Michigan. Generally that cleanup has gone very well.
We met the deadline of August 27
th
for the primary cleanup of the leak site as you know. By September 27
th
, we had met the deadline for cleanup of Talmadge Creek in the Kalamazoo River, and then earlier this week, the EPA confirmed that we’ve also met the October 31
st
deadline for cleanup of submerged oil. So that means we have met the primary cleanup requirements at this point.
This of course does not mean that we’re all done. We’re now in the process of beginning longer term monitoring, and working along with the EPA’s Michigan Department and Natural Resources and Environment, and other officials on that long-term monitoring.
As I’ve stated from the outset on this incident, we will be here until the regulators and local residents are satisfied with our cleanup efforts.
Addressing the impacts to the people, the communities and the environment affected by the spill was and it remains the top priority that we have at Enbridge.
With regard to the cause of the pipeline failure, we’re working with the NTSB and the Office of Pipeline Safety, those investigations are ongoing. We will learn from the findings and we will implement whatever changes are necessary throughout our system to ensure that this does not happen again, and to share our learnings with the broader benefit to the entire pipeline industry.
Over the course of the last three months, we’ve worked closely with numerous local, state and federal agencies and community organizations in the response in the cleanup of the crude oil spill.
I’d like to acknowledge and thank all involved for their contributions and for the excellent cooperation that Enbridge received, and I’d like to personally thank the residents of Marshall and Battle Creek for their patience over the past couple of months, three months now, we’ve had as many as 2,000 workers in their communities working around the clock on the cleanup. We placed the highest priority in our relationships with the communities and their work. We’ve been a part of the Marshall Community for more than 41 years and we intend to be around for many more years to come.
So with that very quick status update on 6B, I would now like to just very quickly comment on the third quarter results and update you on some of our projects and then I will turn it over to Richard to walk through the results in a little more detail.
As you all hear, Quarter 3 was another strong quarter for Enbridge financially. Adjusted earnings per share for the quarter were up 26% year-over-year and for the nine months, up almost 20% year-over-year. And this keeps us on track to achieve the upper half of our 2010 guidance of $2.50 to $2.70 per share.
I am not going to spend a lot of time on the strategic front today. Many of you on the phone of course, will have been part of our Annual Investor Day meetings in New York or Toronto at the beginning of October, where we walked through our plans, for Liquids Pipelines, gas transportation, gas distribution and green energy businesses. And then also, I, of course, highlighted the financial strength of the company.
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