Enbridge’s 2014 Strategic Plan, unveiled in October, provides a road map to the future, with a five-year planning horizon stretching from 2014 through 2018. This plan sets out the various actions required for Enbridge to achieve its vision of being the leading energy delivery company in North America.
In striving toward this vision, we are playing a critical role in enabling North Americans’ economic well-being and quality of life, which depend on access to plentiful energy. We fulfil our primary societal role by delivering energy to where it’s needed by North Americans – reliably, efficiently, and safely.
In pursuing our vision, Enbridge is fortunate to possess a strong strategic and competitive position in most of our businesses. We are also fortunate to have access to numerous growth opportunities. Each of our actions and decisions contribute to our company’s success, and support our purpose of fueling quality of life for people across North America.
Enbridge’s 2014 Strategic Plan provides the foundation for all that we do at Enbridge – how each business and each employee can make an important contribution.
$44-Billion in Enterprise-Wide Growth Capital
Enbridge’s growth capital program, which has reached a record $44-billion as of October 2014, drives our strategic priorities. Presently, we have a $33-billion inventory of commercially secured projects (all of which have a projected in-service date of 2017 or earlier) to drive our near-term strategic priorities and initiatives. We also have $11-billion in additional risked potential capital projects, which may further extend our growth beyond our five-year plan.
Projected Outcome: 10-12% EPS Compound Annual Growth
The 2014 Strategic Plan portrays a very favorable outcome for Enbridge and our investors over the next five years, with the earnings-per-share (EPS) compound growth rate projected to remain within the 10 to 12 per cent band. The vast majority of this growth will be provided by existing businesses and secured growth projects, and so does not depend on the assumed additional opportunities to be secured.
Enbridge’s Strategic Priorities
1) Drive Safety and Operational Reliability
- Safety and operational reliability remain our Number One priority; if we fail to meet these goals, we cannot achieve the outcomes laid out in our Strategic Plan
- We have made strong improvements in safety and operational risk management, including completion of an enterprise-wide safety culture perception survey, implementation of a new incident management system, and issuance of our first Operational Reliability Review
- We have identified opportunities for improvement, including development of an enterprise framework for Safety and Risk Management, and continued advancement of our benchmarking process
Delivery of Enbridge’s growing slate of commercially secured projects is critical. Successful execution will require:
- A focus on project management that requires us to safely deliver projects on time, on budget, and at the lowest practical cost; while attaining the highest standards for safety, quality, customer satisfaction, and environmental and regulatory compliance
- Preserving our financial strength and flexibility. Our projected capital spending program is Enbridge’s largest ever; effective capital market execution and strategies to optimize the availability and cost of capital will be a key priority
3) Secure the Longer-Term Future
While we execute on the already secured projects, we cannot forget about strengthening our company’s longer term future. This involves:
- Strengthening our core businesses by securing and extending the growth of our liquids pipelines business beyond 2018; building competitive advantage and expanding the scale, reach, scope, and capabilities of our gas pipelines and processing business; and enhancing low-risk, stable earnings growth in our natural gas distribution business
- Developing new platforms for growth and diversification in green power, gas-fired generation, power transmission, and energy marketing, as well as exploring international opportunities to invest in select energy markets
4) Maintain the Foundation
Achieving success means that we need to maintain a strong organizational and cultural foundation. This requires us to:
- Uphold Enbridge’s values of Integrity, Safety, and Respect in everything we do as a company and as employees
- Shape, promote, and protect Enbridge’s reputation by pursuing a number of strategies focused on openness and transparency, effective communications, and solidification of relationships with stakeholders across our operations
- Attract, retain, and develop our people, keeping our employee retention and engagement levels strong in an environment where the supply of skilled workers is expected to remain tight in the near- to medium-term, due to age-related attrition and increasing competition