Enbridge Income Fund Holdings Inc. Announces Fourth Quarter Results; Declares Monthly Dividend

Enbridge Income Fund Holdings Inc. Announces Fourth Quarter Results; Declares 
Monthly Dividend 
CALGARY, ALBERTA -- (Marketwire) -- 02/12/13 --  
HIGHLIGHTS 


 
--  Earnings for the fourth quarter and year ended December 31, 2012 totaled
    $16.6 million ($0.39 per common share) and $59.8 million ($1.48 per
    common share), respectively. 
 
--  The Company announced an 8.0% dividend increase in December 2012. 
 
--  The Fund's cash available for distribution (CAFD) increased 46% in 2012
    primarily as a result of a full year contribution from a portfolio of
    renewable power generation assets acquired in October 2011.  
 
--  In December 2012, the Company and the Fund completed a further
    acquisition of crude oil storage facilities and renewable power
    generation facilities (the 2012 Acquisition) from Enbridge Inc.
    (Enbridge) for an aggregate price of $1.168 billion. 
 
--  A monthly dividend of $0.11125 per common share was declared by the
    Company's Board of Directors to be paid on March 15, 2013. 

 
Enbridge Income Fund Holdings Inc. (TSX:ENF) (ENF or the Company)
announced today earnings of $59.8 million, or $1.48 per common share,
for the year ended December 31, 2012, reflecting the performance of
its investment in Enbridge Income Fund (the Fund).  
The Company's financial performance is a direct reflection of the
Fund's ability to generate cash for distribution to its unitholders.
The Fund's cash available for distribution (CAFD) totaled $195.6
million for the year ended December 31, 2012 compared with $134.3
million in the prior year. The improvement in CAFD is primarily due
to increased cash flow generated by the Fund's Green Power business
following the acquisition of a 369 megawatt (MW) portfolio of wind
and solar power generation assets owned by subsidiaries of Enbridge
in October 2011 (the 2011 Acquisition).  
"Enbridge Income Fund Holdings delivered very solid results for 2012,
growing distributable cash flow by 46% over the previous year," said
John Whelen, President, Enbridge Income Fund Holdings Inc. "We are
very pleased with the overall performance of the renewable power
generation assets that we acquired from Enbridge in the fall of 2011.
They have proved to be a very strong contributor to earnings and cash
flows in 2012.  
"The successful completion of another significant acquisition of
crude oil storage and additional renewable energy assets from
Enbridge in the fourth quarter of 2012 has further strengthened and
diversified the Fund's portfolio of low-risk energy infrastructure
assets and helped support an 8% increase in the Company's monthly
dividend in December," Mr. Whelen continued. 
The Fund also made progress on organic growth opportunities. The
Bakken Expansion Program, a joint initiative between the Fund and
Enbridge Energy Partners, L.P., is expected to be completed in the
first quarter of 2013. The project, which involves the reversal of
existing pipelines and the construction of new pipeline and related
facilities, will provide capacity to bring up to an additional
145,000 barrels per day of light crude oil to Enbridge's mainline
terminal in Cromer, Manitoba. The total cost for the Fund's portion
of this project is expected to be $190 million.  
Construction of NRGreen's Whitecourt Recovered Energy Project near
Whitecourt, Alberta, remains on schedule with an expected in-service
date in the second quarter of this year. Once completed, the waste
heat facility will generate 14 MW of clean energy and will bring the
Fund's interests in renewable and alternative power generation to 530
MW of capacity.  
In December, the Fund completed a $500 million issue of medium term
notes comprised of $275 million of 3.94%, 10-year notes and $225
million of 2.92%, 5-year notes. Proceeds of the offering were used to
repay a 5% subordinated term loan that had been provided by Enbridge
to partially fund the 2012 acquisition. 
"The success of this offering clearly demonstrates the Fund's ability
to access capital on attractive terms and the interest cost savings
achieved with this refinancing further enhances the accretive nature
of the acquisition we completed in December 2012," noted Mr. Whelen.  
On February 11, 2013, the Company's Board of Directors declared a
monthly cash dividend of $0.11125 per common share to be paid on
March 15, 2013 to shareholders of record at the close of business on
February 28, 2013. The dividend is designated an eligible dividend
for Canadian tax purposes which qualifies for the enhanced dividend
tax credit. 
FOURTH QUARTER 2012 REVIEW 
The audited financial statements and Management's Discussion and
Analysis (MD&A) of both ENF and the Fund, which contain additional
notes and disclosures, are available on the Company's website at
www.enbridgeincomefund.com. 


 
--  The Company's earnings for the fourth quarter and year ended December
    31, 2012 were $16.6 million ($0.39 per common share) and $59.8 million
    ($1.48 per common share), respectively, compared with $16.8 million
    ($0.46 per common share) and $37.3 million ($1.33 per common share) for
    the fourth quarter and year ended December 31, 2011. Fourth quarter 2012
    earnings reflected the Company's increased ownership in the Fund and a
    11% per unit increase in the Fund's distribution. 
 
--  The Fund generated cash available for distribution for the three months
    and year ended December 31, 2012 of $43.8 million and $195.6 million,
    respectively. Fourth quarter 2012 CAFD was impacted by weak wind and
    solar resource at the Fund's Green Power facilities, higher maintenance
    capital expenditures within the Fund's Liquids Transportation and
    Storage business and higher Corporate costs incurred in connection with
    the 2012 Acquisition.  
 
--  In December 2012, the Fund completed the 2012 Acquisition for an
    aggregate price of $1.168 billion, inclusive of working capital
    adjustments. The assets acquired consist of above and below ground crude
    oil storage facilities at Hardisty, Alberta, the 99 MW Greenwich Wind
    Project near Thunder Bay, Ontario, and the 15 MW Amherstburg and 5 MW
    Tilbury Solar Projects in Southern Ontario. 
 
--  The Fund financed the 2012 Acquisition with a combination of debt and
    equity. Enbridge provided the Fund with a $582.0 million unsecured,
    subordinated pre-payable 10-year loan at a fixed interest rate of 5% per
    annum. The Fund issued 13,159,000 preferred units of ECT to Enbridge at
    a price of $23.15 per unit (gross proceeds of $304.6 million) and
    11,982,000 trust units to the Company at a price of $23.15 per unit
    (gross proceeds of $277.4 million). To finance its increased investment
    in the Fund, the Company completed an offering of 9,597,000 subscription
    receipts (subsequently converted to common shares) at a price of $23.15
    per unit and issued 2,385,000 common shares to Enbridge at price of
    $23.15 per common share for total proceeds of $277.4 million. 
 
--  In December 2012, the Fund also issued $275.0 million of 10-year medium
    term notes at a fixed interest rate of 3.94% and $225.0 million of 5-
    year medium term notes at a fixed interest rate of 2.92%. The proceeds
    from the issues and a draw of $82.0 million of the Fund's credit
    facility were used to repay the $582.0 million loan provided by Enbridge
    in connection with the 2012 Acquisition. 
 
--  The 145,000 barrels per day (bpd) Bakken Expansion Program is expected
    to be in service in the first quarter of 2013. Total c
osts of the
    Canadian portion of the project are currently expected to be $190
    million. Firm take or pay commitments totaling 100,000 bpd have been
    received from anchor shippers, a portion of which are subject to a
    waiver of 25% of the take or pay amount in 2013. As a result of high
    crude oil differentials at markets serviced by downstream pipelines,
    capacity is not expected to be well utilized in 2013. 
 
--  The Company's Board of Directors declared monthly dividends of $0.103
    per common share for each of October and November and $0.11125 per
    common share for December. 

 
ABOUT ENBRIDGE INCOME FUND HOLDINGS INC.  
Enbridge Income Fund Holdings Inc. is a publicly traded corporation.
The Company, through its investment in Enbridge Income Fund, holds
high quality, low risk energy infrastructure assets. The Fund's
assets include interests in more than 500 megawatts of renewable and
alternative power generation capacity, a portfolio of liquids
transportation and storage businesses and a 50% interest in the
Canadian segment of the Alliance Pipeline. Information about Enbridge
Income Fund Holdings Inc. is available on the Company's website at
www.enbridgeincomefund.com.  
FORWARD LOOKING INFORMATION 
In the interest of providing the Company's shareholders and potential
investors with information about the Company and its investee, the
Fund, and the Fund's subsidiaries and joint ventures, including
management's assessment of the Company's and the Fund's future plans
and operations, certain information provided in this News Release
constitutes forward-looking statements or information (collectively,
"forward-looking statements"). 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" and similar words suggesting future outcomes or statements
regarding an outlook. In particular, forward-looking statements
include: 


 
--  expected earnings or earnings per share; 
--  expected costs related to projects under construction; 
--  expected scope and in-service dates for projects under construction; 
--  expected timing and amount of recovery of capital costs of assets; 
--  expected capital expenditures; 
--  expected future dividends, Fund distributions and taxability thereof; 
--  the Fund's expected cash available for distribution; and 
--  expected future actions of regulators. 

 
Although the Company believes that these forward-looking statements
are reasonable based on the information available on the date such
statements are made and processes are 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 expected supply and demand for crude oil, natural gas and natural
gas liquids; prices of crude oil, natural gas and natural gas
liquids; expected exchange rates; inflation; interest rates; the
availability and price of labour and pipeline construction materials;
operational reliability; customer project approvals; maintenance of
support and regulatory approval for the Fund's projects; anticipated
in-service dates and weather. Assumptions regarding the expected
supply and demand of crude oil, natural gas and natural gas liquids,
and the prices of these commodities, are material to and underlay 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's services. Similarly, exchange rates,
inflation and interest rates impact the economies and business
environments in which the Company and the Fund operates, may impact
levels of demand for the Fund'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 expected
earnings and associated per unit or per share amounts, or estimated
future distributions or dividends. The most relevant assumptions
associated with forward-looking statements on projects under
construction, including estimated in-service dates and expected
capital expenditures, include: the availability and price of labour
and pipeline construction materials; the effects of inflation on
labour and material costs; the effects of interest rates on borrowing
costs; and the impact of weather, customer and regulatory approvals
on construction schedules. 
The Company's forward-looking statements, and forward looking
statements with respect to the Fund, are subject to risks and
uncertainties pertaining to operating performance, regulatory
parameters, project approval and support, weather, economic
conditions, exchange rates, interest rates and commodity prices,
including but not limited to those risks and uncertainties discussed
in this News Release and in the Company's and the Fund'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 and the Fund's future course of action depends on
management's assessment of all information available at the relevant
time. Except to the extent required by law, the Company and the Fund
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 or persons acting on the Company's or the
Fund's behalf, are expressly qualified in their entirety by these
cautionary statements. 
NON-GAAP MEASURES 
This News Release contains references to the Fund's cash available
for distribution. Cash available for distribution represents the
Fund's cash available to fund distributions on Trust Units and ECT
Preferred Units as well as for debt repayments and reserves. This
measure is important to shareholders as the Company's objective is to
provide a predictable flow of dividends to shareholders and the
Company's cash flows are derived from its investment in the Fund.
Cash available for distribution is not a measure that has
standardized meaning prescribed by United States Generally Accepted
Accounting Principles (U.S.GAAP) and is not considered a GAAP
measure. Therefore, this measure may not be comparable with similar
measures presented by other issuers. The Fund's Cash Available for
Distribution reconciliation is as follows: 


 
                                                                            
                                   Three months ended            Year ended 
                                         December 31,          December 31, 
                                --------------------------------------------
                                --------------------------------------------
                                      2012       2011       2012       2011 
----------------------------------------------------------------------------
(millions of Canadian dollars)                                              
Cash provided by operating                                                  
 activities(1)                        58.3      102.8      266.7      338.5 
 Add/(deduct):                                                              
 Retrospective pre-Acquisition                                              
  cash flows(1)                      (13.2)     (22.5)     (82.4)    (189.7)
 Green Power maintenance capital                                            
  expenditures                           -          -       (0.2)      (0.2)
 Green Power joint ventures cash                                            
  distribu
ted/(retained)              (1.1)      (0.4)       0.2       (1.3)
 Liquids Transportation and                                                 
  Storage maintenance capital                                               
  expenditures                        (5.1)      (2.3)     (12.1)      (5.4)
 Change in operating assets and                                             
  liabilities in the period            4.9      (27.2)      23.4       (7.6)
----------------------------------------------------------------------------
Cash available for distribution       43.8       50.4      195.6      134.3 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) In accordance with U.S. GAAP, cash provided by operating activities for 
    all 2012 and 2011 periods has been retrospectively adjusted to furnish  
    comparative information related to the 2012 Acquisition and the 2011    
    Acquisition. The impact of the retrospective adjustments has been       
    eliminated from CAFD as these cash flows were not available to          
    distribute to unitholders.                                              

 
SELECTED FINANCIAL AND OPERATING HIGHLIGHTS 


 
ENBRIDGE INCOME FUND            Three months ended                Year ended
 HOLDINGS INC.                        December 31,              December 31,
                        ----------------------------------------------------
                                 2012         2011         2012         2011
----------------------------------------------------------------------------
(millions of Canadian                                                       
 dollars, except share                                                      
 and per share amounts)                                                     
Earnings                         16.6         16.8         59.8         37.3
 Earnings per common                                                        
  share, basic and                                                          
  diluted                 $      0.39  $      0.46  $      1.48  $      1.33
Cash provided by                                                            
 operating activities            14.0         12.5         53.1         35.7
Dividends declared               15.9         13.1         52.8         34.8
 Dividends per common                                                       
  share                   $     0.317  $     0.302  $     1.244  $     1.166
Number of common shares                                                     
 outstanding                                         51,723,000   39,741,000
----------------------------------------------------------------------------
                                                                            
ENBRIDGE INCOME              Three months ended                 Year ended  
 FUND(1)                           December 31,          
      December 31, 
                    --------------------------------------------------------
                             2012       2011(3)          2012       2011(3) 
----------------------------------------------------------------------------
(millions of                                                                
 Canadian dollars,                                                          
 except unit and per                                                        
 unit amounts)                                                              
Earnings                                                                    
  Green Power                13.8          14.9          70.7          16.8 
  Liquids                                                                   
   Transportation                                                           
   and Storage               13.6          11.8          50.3          47.2 
  Alliance Canada            12.6          13.0          51.3          54.2 
  Corporate                 (30.2)        (26.3)       (116.4)        (64.9)
  Retrospective                                                             
   Adjustments(2)             5.6          14.5          31.9          94.2 
----------------------------------------------------------------------------
                             15.4          27.9          87.8         147.5 
Cash available for     
                                                     
 distribution(3)                                                            
  Green Power                26.5          23.9         121.4          27.2 
  Liquids                                                                   
   Transportation                                                           
   and Storage               18.5          20.2          74.2          78.2 
  Alliance Canada            16.5          17.5          70.9          71.9 
  Corporate                 (17.7)        (11.2)        (70.9)        (43.0)
----------------------------------------------------------------------------
                             43.8          50.4         195.6         134.3 
Cash provided by                                                            
 operating                                                                  
 activities(2)               58.3         102.8         266.7         338.5 
Cash distributions                                                          
 declared                    42.2          36.9         154.4         112.3 
  Distributions per                                                         
   trust unit and                                                           
   ECT preferred                                                            
   unit               $     0.376   $     0.357   $     1.462   $     1.392 
Number of units                                                             
 outstanding                                                                
  ECT preferred                                                             
   units                                           67,233,750    54,074,750 
  Trust units                                      61,223,000    49,241,000 
Operating Results                                                           
 Green Power                                                                
  (thousands of                                                             
  megawatt hours                                                            
  produced)                                                                 
  Wind Projects             265.2         239.1         877.1         301.5 
  Solar Projects             15.8          12.9         128.0          12.9 
  NRGreen (50%)              18.2          18.9          70.6          69.6 
 Liquids                                                                    
  Transportation and                                                        
  Storage (thousands                                                        
  of barrels per                                                            
  day)                                                                      
  Westspur System           173.6
         225.5         182.4         200.2 
  Saskatchewan                                                              
   Gathering System         123.4         147.2         129.8         135.4 
  Weyburn System             30.8          32.5          31.5          31.0 
  Virden System              22.3          18.1          23.2          18.4 
 Alliance Canada                                                            
  (millions of cubic                                                        
  feet per day)           1,561.0       1,562.0       1,553.0       1,564.0 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1) Financial Highlights for Enbridge Income Fund have been extracted from  
    financial statements prepared in accordance with U.S. GAAP.             
(2) In accordance with U.S. GAAP, earnings and cash provided by operating   
    activities for all 2012 and 2011 periods have been retrospectively      
    adjusted to furnish comparative information related to the 2012         
    Acquisition and the 2011 Acquisition. Financing charges have not been   
    retrospectively adjusted. The impact of the retrospective adjustments   
    has been eliminated from CAFD as these cash flows were not available to 
    distribute to unitholders.                                              
(3) See Non-GAAP Measures.                                                  

Contacts:
Enbridge Income Fund Holdings Inc.
Media
Jennifer Varey
(403) 508-6563
jennifer.varey@enbridge.com 
Enbridge Income Fund Holdings Inc.
Investment Community
Teri Majer
(403) 508-3185
teri.majer@enbridge.com
www.enbridge.com
 
 
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