Enbridge Income Fund Holdings Inc.
TSX : ENF

Enbridge Income Fund Holdings Inc.

February 17, 2017 07:00 ET

Enbridge Income Fund Holdings Inc. Reports 2016 Fourth Quarter and Full Year Results

CALGARY, ALBERTA--(Marketwired - Feb. 17, 2017) -

HIGHLIGHTS

(all financial figures are unaudited and in Canadian dollars unless otherwise noted)

  • Fourth quarter earnings were $67 million or $0.54 per common share; earnings for the full year were $252 million or $2.18 per common share

  • Available cash flow from operations for the three and twelve months ended December 31, 2016 was $491 million and $1,837 million for the Fund Group, respectively

  • The Canadian Federal Government approved the Canadian portion of the Line 3 Replacement Program

  • The Fund Group closed the sale of the South Prairie Region assets for $1.08 billion

  • The Athabasca Pipeline Twin project was placed into service in January 2017

  • The Company announced a guidance range for 2017 available cash flow from operations of $1.9 billion to $2.1 billion for the Fund Group

  • On January 5, 2017 the Company announced an increase in its monthly dividend by 10% to $0.1711 per common share effective with the January 2017 dividend

Enbridge Income Fund Holdings Inc. (the Company or ENF) (TSX:ENF) announced fourth quarter earnings of $67 million, or $0.54 per common share, and annual earnings for 2016 of $252 million, or $2.18 per common share. Fourth quarter earnings per share grew by 14.9% and full year earnings per share grew by 17.2% over the comparable periods of 2015.

The Company holds a 56.9% ordinary trust unit (Fund Unit) interest in Enbridge Income Fund (the Fund) and an approximate 16.4% overall economic interest in the Fund Group. The Fund Group is comprised of the Fund, Enbridge Commercial Trust (ECT), Enbridge Income Partners LP (EIPLP) and the subsidiaries and investees of EIPLP. EIPLP holds the operating entities of the Fund Group and grew significantly in scope and scale after the transformative acquisition of certain Canadian liquids pipelines, storage and renewable energy assets from Enbridge Inc. (Enbridge) in September 2015 (the 2015 Transaction), which was valued at $30.4 billion plus incentive distribution and performance rights.

Fund Group adjusted cash flow from operations (ACFFO) was $491 million and $1,837 million for the three and twelve months ended December 31, 2016, respectively, representing a notable increase over the annual period of 2015. The increased scale and scope of the Fund Group's operations due to the 2015 Transaction as well as new system expansion projects that subsequently came into service significantly bolstered annual ACFFO. Strong contributions from Alliance Pipeline's new services framework and operational efficiencies also contributed to the increase in Fund Group ACFFO for the year. Fourth quarter Fund Group ACFFO was relatively unchanged year over year, due to various offsetting factors.

"We are pleased with the results for the quarter and the year which reflect the strength and resilience of our business model," said Company President Perry Schuldhaus. "Despite the impact of the northeastern Alberta wildfires on our Liquids Pipelines mainline performance in the second quarter, strong contributions from Liquids Pipelines over the balance of the year and Gas Pipelines throughout the year enabled us to deliver Fund Group ACFFO well within our 2016 guidance range. Our mainline volumes rebounded following the wildfires and reached a record 2.6 million barrels per day ex-Gretna in December."

In November 2016, the Canadian Federal Government approved the Canadian portion of the Line 3 Replacement Program. The approval marks an important milestone for this project that will contribute to the continued safe and reliable delivery of Canada's energy resources to market. The anticipated in service date is 2019, pending Minnesota Public Utilities Commission regulatory approvals.

During the quarter, the Company announced that a subsidiary within the Fund Group closed the sale of the South Prairie Region Liquids Pipeline assets for $1.08 billion in cash. The proceeds from the sale will be reinvested into organic growth projects, including the Wood Buffalo Extension, Athabasca Twin and Norlite projects which are scheduled for service in 2017 and will satisfy the Fund's currently anticipated equity capital requirements through 2017.

Approximately $3.7 billion of the Company's remaining $9 billion in secured growth projects are expected to come into service in 2017, the largest being the Regional Oil Sands Optimization Project. In January 2017, the first component of this project, the Athabasca Pipeline Twin was placed into service, which entailed twinning the southern section of the Athabasca Pipeline with a 36-inch diameter pipeline from Kirby Lake, Alberta to the Hardisty crude oil hub. The second component of the project which connects the Wood Buffalo Extension to the Athabasca Pipeline Twin is now expected to be in service in December 2017 to align with the primary shipper's anticipated production profile.

Based on updated projections, the Company expects that the Fund Group will generate ACFFO between $1.9 billion and $2.1 billion in 2017. Contributing factors to the 2017 guidance range include continued strength within the Liquids Pipelines segment and new capital projects coming into service. Canadian Mainline performance is expected to remain very strong in 2017 driven by mainline throughput and an increase in the Canadian residual toll starting in the second quarter of 2017. The $3.7 billion of new projects that are expected to come into service in 2017, discussed above, will also contribute incremental cash flow. Partially offsetting these positive factors is the sale of the South Prairie Region assets which pre-funded 2017 equity requirements, as well as the revised in-service date of the Wood Buffalo Extension. The December 1, 2017 in-service date for the Wood Buffalo Extension is not expected to impact the project return.

"We entered 2017 with a solid foundation consisting of a portfolio of highly reliable and low risk businesses. Our 2017 Fund Group ACFFO guidance reflects the projected cash flow growth from our existing assets supplemented by growth from the secured projects coming into service in 2017. We remain well positioned to provide solid returns to our shareholders and are confident that we will continue delivering 10% annual dividend increases through 2019," said Mr. Schuldhaus.

The Company previously announced a 10% increase in the monthly dividend to $0.1711 per common share, commencing with the dividend payable in respect of January 2017. The Company's Board of Directors also declared a cash dividend of $0.1711 per common share to be paid on March 15, 2017 to shareholders of record at the close of business on February 28, 2017.

These dividends are designated eligible dividends for Canadian tax purposes which qualify for the enhanced dividend tax credit. Eligible shareholders may elect to participate in the Company's Dividend Reinvestment and Share Purchase Plan (DRIP), where they may automatically reinvest their dividends in additional shares at a 2% discount to the share price without brokerage fees. Details of the DRIP are available on the Company's website. Shareholders who wish to participate in the DRIP should contact their investment dealer for further information and to enroll.

NON-GAAP MEASURES

This news release contains references to adjusted earnings before interest and taxes (EBIT) and ACFFO. Adjusted EBIT represents EIPLP EBIT, adjusted for unusual, non-recurring or non-operating factors on both a consolidated and segmented basis. These factors, referred to as adjusting items, are reconciled and discussed in the financial results sections of this news release.

Fund Group ACFFO consists of adjusted EBIT further adjusted for non-cash items, representing cash flow from the Fund Group's underlying businesses, less deductions for maintenance capital expenditures, interest expense, and applicable taxes and further adjusted for unusual, non-recurring or non-operating factors not indicative of the underlying or sustainable cash flows of the business. ACFFO is important to unitholders as the Fund Group's objective is to provide a predictable flow of distributions to unitholders. ACFFO represents the Fund Group's cash available to fund distributions to unitholders, as well as for debt repayments and reserves.

Management believes the presentation of adjusted EBIT and ACFFO are useful to investors and unitholders as they provide increased transparency and insight into the performance of the Company and the Fund Group. Management uses adjusted EBIT and ACFFO to set targets, including the distribution payout target, and to assess the performance of the Company and the Fund Group. Adjusted EBIT and ACFFO are not measures that have standardized meanings prescribed by generally accepted accounting principles in the United States of America (U.S. GAAP) and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers.

Please see the tables in the Fourth Quarter and Year End 2016 Performance Overview section which summarize the reconciliations of the GAAP and non-GAAP measures.

FOURTH QUARTER AND YEAR END 2016 PERFORMANCE OVERVIEW

For more information on the operating results of the Company, the Fund and EIPLP, please see the respective Management's Discussion and Analysis on the Company's website at http://www.enbridgeincomefund.com/Find-Shareholder-Information/Reports-and-Filings/English.aspx. The documents are also filed on SEDAR under Enbridge Income Fund Holding Inc.'s profile for the Company and under Enbridge Income Fund's profile for the Fund and EIPLP.

ENBRIDGE INCOME PARTNERS LP
Adjusted Earnings Before Interest and Income Taxes1
Three months ended Year ended
December 31, December 31,
2016 2015 2016 2015
(unaudited; millions of Canadian dollars)
Liquids Pipelines 1,137 286 2,770 (1 )
Gas Pipelines 39 36 194 144
Green Power 35 45 138 154
Eliminations and Other 4 20 (6 ) 151
Earnings before interest and income taxes 1,215 387 3,096 448
Retrospective adjustments2:
2015 Transaction - Liquids Pipelines - - - 324
2015 Transaction - Green Power - - - (36 )
2015 Transaction - Eliminations and Other - - - (9 )
Adjusting items:
Changes in unrealized derivative fair value (gains)/loss3 87 116 (502 ) 371
Unrealized (gains)/loss on translation of United States dollar intercompany loan receivable (10 ) (20 ) 43 (130 )
Make-up rights adjustments 1 - 31 -
Northeastern Alberta wildfire pipeline and facilities restart costs 8 - 47 -
Gain on sale of South Prairie Region assets (850 ) - (850 ) -
Gain on sale of non-core assets - - - (22 )
Leak insurance recoveries - (22 ) (5 ) (22 )
Employee severance cost allocation 21 18 21 18
Derecognition of regulatory balances - - 6 (8 )
Other - (1 ) - (1 )
Adjusted earnings before interest and income taxes 472 478 1,887 933
Comprised of:
Liquids Pipelines 383 384 1,512 640
Gas Pipelines 40 37 184 151
Green Power 34 39 133 112
Eliminations and Other 15 18 58 30
Adjusted earnings before interest and income taxes 472 478 1,887 933
1 Adjusted EBIT is a non-GAAP measure that does not have any standardized meaning prescribed by U.S. GAAP. See definition within Non-GAAP Measures.
2 The impact of the retrospective adjustments related to the 2015 Transaction and the 2014 Transaction has been removed from adjusted EBIT to reflect earnings generated under EIPLP's ownership effective September 1, 2015 and November 7, 2014, respectively. Retrospective adjustments also include the impacts of significant, unusual, non-recurring or non-operating factors included in the retrospectively adjusted amounts for U.S. GAAP purposes.
3 Changes in unrealized derivative fair value gains and losses are presented net of amounts realized on the settlement of derivative contracts during the applicable period.

Earnings Before Interest and Income Taxes

EIPLP EBIT was $3,096 million for the year ended December 31, 2016 compared to $448 million for the year ended December 31, 2015. EIPLP has continued to deliver strong earnings growth from operations over the past two years. However, the comparability of EIPLP's results was impacted by a number of unusual, non-recurring or non-operating factors, including changes in unrealized derivative fair value gains and losses. EIPLP has a comprehensive long-term economic hedging program to mitigate interest rate, foreign exchange and commodity price risks that create volatility in short-term earnings. Over the long term, EIPLP believes its hedging program supports reliable cash flows. EIPLP EBIT also included an $850 million gain on disposal of the South Prairie Region assets in December 2016.

Excluding the impact of unusual, non-recurring or non-operating factors, EIPLP EBIT increased in 2016 primarily as a result of stronger contributions from the Liquids Pipelines and Gas Pipelines segments. The Canadian Mainline contribution increased primarily due to higher throughput that resulted from strong oil sands production in western Canada enabled by pipeline capacity expansion projects placed into service in 2015. EBIT growth was partially offset by the impact of extreme wildfires in northeastern Alberta and the combination of a lower average International Joint Tariff (IJT) Residual Benchmark Toll, which decreased effective April 1, 2016, and a lower foreign exchange hedge rate used to record Canadian Mainline revenues in 2016. The Gas Pipelines contribution increased relative to the prior year due to improved operational efficiencies and enhanced asset performance that was driven by strong demand for seasonal firm service under Alliance Pipeline's new services framework that commenced in the fourth quarter of 2015.

EIPLP EBIT for the fourth quarter of 2016 was $1,215 million compared to $387 million for the same quarter of 2015, and includes an $850 million gain related to the disposition of the South Prairie Region assets. Excluding the impact of the gain on disposition and other non-recurring or non-operating factors, performance drivers were largely consistent with the year-to-date trend of strong throughput in Liquids Pipelines and Gas Pipelines, including a record month of throughput achieved on the Canadian Mainline in December 2016.

Adjusted Earnings Before Interest and Income Taxes

EIPLP adjusted EBIT was $1,887 million for the year ended December 31, 2016 compared to $933 million for the year ended December 31, 2015. The increase in adjusted EBIT is attributable to the substantial increase of EIPLP's asset base following the 2015 Transaction. The most notable assets contributing incremental adjusted EBIT were the Canadian Mainline, due to expansion, as well as the reversal and expansion of Line 9B in the fourth quarter of 2015 and the Regional Oil Sands System, which benefitted from assets placed into service late in 2015. Also bolstering adjusted EBIT were higher contributions from the Gas Pipelines segment as discussed above.

EIPLP adjusted EBIT for the fourth quarter of 2016 was $472 million compared to $478 million over the same period of 2015, reflecting increased volumes and the impact of the reversal and expansion of Line 9B, which were offset by a decrease in the Canadian Mainline IJT Residual Benchmark Toll and lower foreign exchange hedge rate over the prior year, as discussed above. The IJT Residual Benchmark Toll is reset on an annual basis, effective April 1 of each year.

FUND GROUP
Available Cash Flow from Operations1
Three months ended Year ended
December 31, December 31,
2016 2015 2016 2015
(unaudited; millions of Canadian dollars)
EIPLP Adjusted earnings before interest and income taxes 472 478 1,887 933
Depreciation and amortization expense 152 155 627 299
Distributions from Southern Lights Class A units2 5 4 18 20
Cash distributions in excess of/(less than) equity earnings 23 3 15 (12 )
Maintenance capital expenditures3 (38 ) (6 ) (109 ) (40 )
Interest expense4 (80 ) (91 ) (343 ) (124 )
Current income taxes4 (2 ) (41 ) (34 ) (97 )
Special interest rights distributions - IDR5 (12 ) - (47 ) -
Other adjusting items 23 7 37 7
EIPLP ACFFO 543 509 2,051 986
Fund and ECT operating, administrative and interest expense (52 ) (53 ) (214 ) (152 )
The Fund Group ACFFO 491 456 1,837 834
Distributions paid to Enbridge 336 296 1,343 517
Distributions paid to ENF 67 42 252 141
The Fund Group distributions declared 403 338 1,595 658
The Fund Group annual payout ratio 87 % 79 %
1 ACFFO is a non-GAAP measure that does not have any standardized meaning prescribed by U.S. GAAP. See definition within Non-GAAP Measures.
2 Prior to the close of the 2015 Transaction, EIPLP received distributions on Class A units from both Enbridge subsidiaries that indirectly owned the Southern Lights Class A units. Subsequent to the close of the 2015 Transaction, EIPLP received distributions on Class A units from the Enbridge subsidiary that indirectly owns the United States portion of the Southern Lights Pipeline only.
3 Maintenance capital expenditures are expenditures that are required for the ongoing support and maintenance of the existing pipeline system or that are necessary to maintain the service capability of the existing assets (including the replacement of components that are worn, obsolete or completing their useful lives). For the purpose of ACFFO, maintenance capital excludes expenditures that extend asset useful lives, increase capacities from existing levels or reduce costs to enhance revenues or provide enhancements to the service capability of the existing assets. Maintenance capital expenditures occur primarily within EIPLP's Liquids Pipelines segment.
4 These balances are presented net of adjusting items.
5 Incentive Distribution Right (IDR) refers to the cash component of the Special Interest Rights (SIR) distributions. IDR distributions are declared monthly and paid in cash to holders of the SIR in the following month. SIR were first issued on September 1, 2015 pursuant to the 2015 Transaction.

Fund Group ACFFO underpins the Fund Group's ability to pay distributions to holders of Fund Units, including the Company. The Fund Group's ACFFO increased to $491 million and $1,837 million for the three and twelve months ended December 31, 2016, respectively, from $456 million and $834 million over the comparable periods of 2015. Similar to adjusted EBIT, the year-over-year increase in ACFFO was driven by the significant increase of EIPLP's asset base following the 2015 Transaction as well as stronger contributions from EIPLP's investment in Alliance Pipeline and lower current income taxes due to the optimization of tax deductions within the Fund Group. The increase was partially offset by higher maintenance capital expenditures and higher interest expense, both resulting from increased business activity associated with the increased asset base. ACFFO in 2016 was also negatively impacted by approximately $36 million as a result of the northeastern Alberta wildfires in the second quarter of 2016. The fourth quarter of 2016 reflected similar operational trends as noted in the discussion on adjusted EBIT.

ENBRIDGE INCOME FUND HOLDINGS INC.
Three months ended Year ended
December 31, December 31,
2016 2015 2016 2015
(unaudited; millions of Canadian dollars)
Distribution income 67 41 252 141
Dividends declared 58 37 219 119

The Company's distribution income represents substantially all of the Company's earnings and cash flows and is derived from the Fund Unit distributions paid to the Company. For the quarter and year ended December 31, 2016, distribution income increased significantly over the comparable periods of 2015. The increase reflects the Company's additional investments in the Fund Group in late 2015 and the first half of 2016 combined with an increase in the distribution rate on Fund Units, which is underpinned by growth in Fund Group ACFFO.

The following table summarizes the dividend rate and total dividends declared by the Company for the years ended December 31, 2016 and 2015, and the quarters therein.

2016 2015
Dividend
Rate
Total Dividend
Rate
Total
(unaudited; millions of Canadian dollars except dividend rate)
Three months ended March 31 0.4665 45 0.3855 27
Three months ended June 30 0.4665 58 0.3855 27
Three months ended September 30 0.4665 58 0.3984 28
Three months ended December 31 0.4665 58 0.4242 37
Year ended December 31 1.8660 219 1.5936 119

CONFERENCE CALL

The Company will hold a joint conference call with Enbridge on Friday, February 17, 2017 at 9 a.m. Eastern Time (7 a.m. Mountain Time) to discuss the 2016 annual results. Analysts, members of the media and other interested parties can access the call toll-free at 1-866-215-5508 or outside North America at 1-514-841-2157 using the access code of 44103871#. The call will be audio webcast live at http://edge.media-server.com/m/p/9npceoa2. A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within approximately 24 hours. An audio replay will be available for seven days after the call at toll-free 1-888-843-7419 or outside North America at 1-630-652-3042 using the replay passcode 44103871#.

The conference call will begin with presentations by Enbridge's President and Chief Executive Officer and the Chief Financial Officer, followed by a question and answer period with Enbridge and ENF management for investment analysts. A question and answer period for members of the media will immediately follow thereafter.

Enbridge Income Fund Holdings Inc. is a publicly traded corporation. The Company, through its investment in Enbridge Income Fund, indirectly holds high quality, low risk energy infrastructure assets. The Fund's indirectly owned assets consist of a portfolio of Canadian liquids transportation and storage businesses, including the 2,306-kilometre Canadian segment of the Mainline System (the largest conduit of oil into the United States), the Regional Oil Sands System, the Canadian segment of the Southern Lights Pipeline, Class A units entitling the holder to receive defined cash flows from the United States segment of the Southern Lights Pipeline, a 50% interest in the Alliance Pipeline, which transports natural gas from Canada to the United States, and interests in more than 1,400 megawatts of renewable and alternative power generation capacity. Enbridge Income Fund Holdings Inc. shares trade on the Toronto Stock Exchange under the symbol ENF. Information about Enbridge Income Fund Holdings Inc. is available on the Company's website at www.enbridgeincomefund.com. None of the information contained in, or connected to, the Company's website is incorporated in or otherwise forms part of this news release.

FORWARD-LOOKING INFORMATION

Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its investee, the Fund, and the Fund's direct and indirect investments and joint ventures (collectively, the Fund Group), including management's assessment of future plans and operations of the Company and the Fund Group. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: mainline system throughput; expected or target ACFFO; cash flows; equity capital requirements; in-service dates of projects; safety and reliability of pipeline systems; regulatory approvals; impact of the hedging program; shareholder returns; future dividends and distributions by the Fund; and dividend increases.

Although the Company and the Fund Group believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply, demand and prices for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; exchange rates; completion of growth projects; inflation; interest rates; availability and price of labour and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Fund Group's projects; anticipated in-service dates; weather; the impact of the dividend policy on the Company's or the Fund Group's future cash flows; capital project funding; the Fund Group's credit ratings; EBIT or adjusted EBIT; earnings/(loss) or adjusted earnings/(loss); earnings/(loss) per share; future cash flows and future ACFFO; and dividends or distributions. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements. These factors are relevant to all forward-looking statements as they may impact current and future levels of demand for the Fund Group's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company and the Fund Group operate and may impact levels of demand for the Fund Group's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to earnings/(loss), adjusted EBIT, ACFFO and associated per share amounts or dividends or distributions. The most relevant assumptions associated with forward-looking statements on projects under construction, including completion dates and capital expenditures include the following: the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather; and customer and regulatory approvals on construction and in-service schedules.

The Company's and the Fund Group's forward-looking statements are subject to risks and uncertainties pertaining to ACFFO guidance, operating performance, regulatory parameters, project approval and support, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, exchange rates, interest rates, commodity prices and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in the Company's and the Fund Group's other filings with Canadian securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and the Company's or the Fund Group's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, the Company and the Fund Group assume no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to the Company or the Fund Group or persons acting on the Company's or the Fund Group's behalf, are expressly qualified in their entirety by these cautionary statements.

HIGHLIGHTS
Three months ended Year ended
December 31, December 31,
2016 2015 2016 2015
(millions of Canadian dollars, except per share amounts)
ENBRIDGE INCOME FUND HOLDINGS INC.
Earnings
Distribution and other income1 67 42 254 143
Income taxes - (1 ) (2 ) (5 )
Earnings 67 41 252 138
Earnings per common share 0.54 0.47 2.18 1.86
Diluted earnings per common share 0.54 0.46 2.14 1.83
Cash flow data
Cash provided by operating activities 66 37 243 131
Dividends
Dividends declared 58 37 219 119
Dividends per common share 0.4665 0.4242 1.8660 1.5936
Shares outstanding (millions)
Common shares outstanding2 124 97
Weighted average common shares outstanding 124 86 116 74
AVAILABLE CASH FLOW FROM OPERATIONS
EIPLP Adjusted EBIT
Liquids Pipelines 383 384 1,512 640
Gas Pipelines 40 37 184 151
Green Power 34 39 133 112
Eliminations and Other 15 18 58 30
Adjusted earnings before interest and income taxes 472 478 1,887 933
Depreciation and amortization expense 152 155 627 299
Distributions from Southern Lights Class A units 5 4 18 20
Cash distributions in excess of/(less than) equity earnings 23 3 15 (12 )
Maintenance capital expenditures (38 ) (6 ) (109 ) (40 )
Interest expense (80 ) (91 ) (343 ) (124 )
Current income taxes (2 ) (41 ) (34 ) (97 )
Special interest rights distributions - IDR (12 ) - (47 ) -
Other adjusting items 23 7 37 7
EIPLP ACFFO 543 509 2,051 986
Fund and ECT operating, administrative and interest expense (52 ) (53 ) (214 ) (152 )
Fund Group ACFFO 491 456 1,837 834
Distributions to Enbridge3 336 296 1,343 517
Distributions to ENF 67 42 252 141
Fund Group distributions declared 403 338 1,595 658
The Fund Group annual payout ratio 87 % 79 %
EIPLP OPERATING RESULTS4
Liquids Pipelines - Average deliveries (thousands of barrels per day)
Canadian Mainline5 2,481 2,243 2,405 2,238
Regional Oil Sands System6 1,197 996 1,032 945
Gas Pipelines - Average throughput (millions of cubic feet per day)
Alliance Pipeline Canada 1,429 1,481 1,532 1,488
Alliance Pipeline US 1,541 1,642 1,668 1,645
Green Power (thousands of megawatt hours produced)
Wind Facilities 707 750 2,539 1,645
Solar Facilities 24 25 156 160
Waste Heat Facilities 19 21 89 70
1 Includes Fund Unit distributions.
2 As at December 31, 2016 and 2015.
3 Includes EIPLP Class C unit, ECT Preferred Unit and Fund Unit distributions paid to Enbridge.
4 Reflects statistics of operating assets held by direct or indirect investees of the Fund Group for the period they were held.
5 Canadian Mainline average throughput volume represents deliveries ex-Gretna, Manitoba which is made up of United States and eastern Canada deliveries originating from western Canada.
6 Volumes are for the Athabasca mainline, Waupisoo Pipeline and Woodland Pipeline and exclude laterals on the Regional Oil Sands System.

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