Enbridge Inc.
TSX : ENB
NYSE : ENB

Enbridge Inc.

February 15, 2017 17:15 ET

Enbridge Inc. and Enbridge Energy Partners, L.P. Close Bakken Pipeline System Acquisition

CALGARY, ALBERTA--(Marketwired - Feb. 15, 2017) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) (Enbridge or the Company) and Enbridge Energy Partners, L.P. (NYSE:EEP) (EEP) announced today that the previously disclosed transaction to acquire an effective 27.6 percent interest in the Bakken Pipeline System (Bakken Pipeline or the System) has closed as final conditions have now been met.

The System consists of the Dakota Access Pipeline and the Energy Transfer Crude Oil Pipeline projects, both of which will be operated by Energy Transfer Partners, L.P., and connects the prolific Bakken formation in North Dakota to eastern PADD II and the U.S. Gulf Coast. Construction of the Bakken Pipeline is well advanced and approximately 95 percent complete.

"The project is expected to provide attractive risk-adjusted returns and is underpinned by a significant level of take-or-pay contracts with high credit quality counterparties," said Guy Jarvis, President, Liquids Pipelines and Major Projects. "It is expected to be immediately accretive to earnings and ACFFO per share, and we're pleased to be moving forward with this project. The Bakken Pipeline provides us with an attractive opportunity to participate in a competitive new transportation option enabling North American producers to access premium U.S. Gulf Coast markets. We also see strong potential for future investments in the System through low-cost expansions."

Enbridge will fund 100% of the investment in the short-term through a US$1.5 billion bridge loan to EEP through one of its subsidiaries. This bridge loan will come from available liquidity and will remain in place until a joint funding arrangement with EEP is finalized as part of its ongoing strategic review, which is likely to be completed during the second quarter of the year. Joint funding terms could result in Enbridge permanently funding up to 75 percent of the US$1.5 billion, which was previously factored into the Company's financing plans.

Mr. Jarvis concluded, "Importantly, the System is being built and operated with what we believe are best in class pipeline safety measures. We look forward to working with our partners to ensure that the commitment to safe operations and maintenance of positive working relationships with all stakeholders along the right of way is a top priority."

Forward-Looking Statements Regarding Enbridge Inc.

Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "believe" and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to: the initial funding of amounts to EEP; the bridge financing arrangement between the Company's subsidiary and EEP; longer-term funding options, including proposed joint funding by the Company's subsidiary and EEP; the strategic review of EEP; expected in-service dates; expected future returns, and earnings and ACFFO accretion from acquisition of the System; joint tolls and improved market access; and expansion capacity of the System. Although the Company believes these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of assumptions, risks and uncertainties pertaining to bridge financing and longer-term funding, including definitive terms thereof, project construction and completion, in-service dates, operating performance, regulatory parameters, economic and competitive conditions, supply of and demand for commodities and commodity prices. A further discussion of the risks and uncertainties facing the Company can be found in the Company's filings with Canadian and United States securities regulators. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, the Company assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

Non-GAAP Measures

This news release contains references to available cash flow from operations (ACFFO) per share. ACFFO is defined as cash flow provided by operating activities before changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests and redeemable noncontrolling interests, preference share dividends and maintenance capital expenditures, and further adjusted for unusual, non-recurring or non-operating factors. Management believes the presentation of ACFFO per share gives useful information to investors and shareholders as it provides increased transparency and insight into the performance of the Company. Management also uses ACFFO to assess the performance of the Company and to set its dividend payout target. ACFFO per share is not a measure that has standardized meaning prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and is not a U.S. GAAP measure. Therefore, it may not be comparable with similar measures presented by other issuers.

About Enbridge Inc.

Enbridge Inc., a Canadian company, exists to fuel people's quality of life, and has done so for more than 65 years. A North American leader in delivering energy, Enbridge has been ranked on the Global 100 Most Sustainable Corporations index for the past eight years. Enbridge operates the world's longest crude oil and liquids transportation system across Canada and the U.S., and has a significant and growing involvement in natural gas gathering, transmission and midstream business, as well as an increasing involvement in power transmission. Enbridge owns and operates Canada's largest natural gas distribution company, serving residential, commercial, and industrial customers in Ontario, Quebec, New Brunswick and New York State. Enbridge has interests in more than 2,200 megawatts of net renewable and alternative generating capacity, and continues to expand into wind, solar and geothermal power. Enbridge employs approximately 10,000 people, primarily in Canada and the U.S., and has been ranked 15 times on the annual Canada's Top 100 Employers list, including the 2017 index. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.

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