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

Enbridge Income Fund Holdings Inc. Announces First Quarter Results; Declares 
Monthly Dividend 
CALGARY, ALBERTA -- (Marketwired) -- 05/06/13 --  
HIGHLIGHTS 
(all financial figures are unaudited and in Canadian dollars) 


 
--  Earnings for the first quarter ended March 31, 2013 totaled $21.2
    million ($0.40 per common share).
 
--  The Fund's cash available for distribution (CAFD) increased 25% in the
    first quarter of 2013 primarily as a result of contributions from a
    portfolio of crude oil storage assets and renewable power generation
    assets acquired in December 2012. 
 
--  Bakken Expansion Program commenced operations on March 1, 2013. 
 
--  Westspur Toll Settlement with a group of shippers announced; Fund
    recognizes $12.0 million impairment of regulatory asset. 
 
--  The Fund's capitalization was rebalanced and bolstered with a $250
    million equity injection from owners, including the Company's $119
    million common share issuance.
 
--  A monthly dividend of $0.11125 per common share was declared by the
    Company's Board of Directors to be paid on June 17, 2013.

 
Enbridge Income Fund Holdings Inc. (TSX:ENF) (ENF or the Company)
announced today earnings of $21.2 million, or $0.40 per common share,
for the three months ended March 31, 2013, 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 $70.2
million for the three months ended March 31, 2013 compared with $56.3
million in the prior year. The improvement in CAFD is primarily due
to increased cash flow generated by the Hardisty Crude Oil Storage
assets, Greenwich Wind Farm and Tilbury and Amherstburg Solar Farms
following their acquisition in December 2012 (the 2012 Acquisition).
CAFD also reflects cash flow from the Bakken Expansion Program which
was declared in service on March 1, 2013.  
"The Fund's strong first quarter results reflect the successful
execution of our strategy to expand our diversified portfolio of high
quality energy infrastructure assets through both organic growth and
acquisition opportunities," said John Whelen, President, Enb
ridge
Income Fund Holdings Inc. "The assets acquired in the 2012
Acquisition are a great fit for the Fund and were strong contributors
to earnings and cash flow in the first quarter and the Bakken
Expansion in our crude oil transportation business began to
contribute incremental cash flow after going into service at the
beginning of March."  
On May 6, 2013, the Company's Board of Directors declared a monthly
cash dividend of $0.11125 per common share to be paid on June 17,
2013 to shareholders of record at the close of business on May 31,
2013. The dividend is designated an eligible dividend for Canadian
tax purposes which qualifies for the enhanced dividend tax credit. 
FIRST QUARTER 2013 REVIEW 
The unaudited 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. We further draw your attention to Note 2
- Revision of Prior Period Financial Statements of the Fund's
Consolidated Financial Statements as at and for the three months
ended March 31, 2013 which discusses a non-cash revision to the
comparative financial statements. These revisions were not material
to the Fund's earnings in prior periods and did not impact the Fund's
cash available for distribution.  


 
--  The Company's earnings for the first quarter ended March 31, 2013 were
    $21.2 million ($0.40 per common share) compared with $14.3 million
    ($0.36 per common share) for the first quarter ended March 31, 2012.
    First quarter 2013 earnings reflected an 11% per unit increase in the
    Fund's distribution in December 2012 combined with the Company's
    increased ownership in the Fund following the December 2012 acquisition
    of 11,982,000 trust units of the Fund and February 2013 acquisition of
    4,768,000 trust units.
 
--  The Fund generated cash available for distribution for the three months
    ended March 31, 2013 of $70.2 million. First quarter 2013 CAFD reflected
    cash flow generated by the Hardisty Crude Oil Storage assets, Greenwich
    Wind Farm and Tilbury and Amherstburg Solar Farms following the 2012
    Acquisition. CAFD also reflected cash flow from the Bakken Expansion
    Program which was declared in service on March 1, 2013. 
    
--  The Fund issued 4,768,000 trust units to the Company at a price of
    $25.00 per unit (gross proceeds of $119.2 million) and Enbridge Inc.
    subscribed for 5,232,000 preferred units of Enbridge Commercial Trust
    (ECT) at a price of $25.00 per unit (gross proceeds of $130.8 million).
    To finance its increased investment in the Fund, the Company completed
    an offering of 3,820,000 common shares at a price of $25.00 per share
    and issued 948,000 common shares to Enbridge at price of $25.00 per
    common share for total gross proceeds of $119.2 million. 
    
--  On April 1, 2013, the Fund announced it concluded a settlement (the
    Settlement) with a group of shippers relating to new tolls on the
    Westspur System. Pursuant to the Settlement, the tolls on the Westspur
    System will be fixed and increased annually with reference to a pre-
    identified inflation index, subject to throughput remaining within a
    volume band close to volumes recently transported on the Westspur
    System. The Settlement resulted in the discontinuance of rate regulated
    accounting for the Westspur System and the Fund recorded an after-tax
    write-off of approximately $12 million in the first quarter of 2013
    related to a deferred regulatory asset which will not be collected under
    the terms of the Settlement. At the request of certain shippers who did
    not execute the Settlement, the NEB has not removed the interim status
    from the historical tolls and has made the new tolls interim as well. As
    of May 6, 2013, the Fund continues to work with shippers to resolve the
    matter. 
    
--  The NEB denied the recovery of indirect costs incurred by Alliance
    Canada resulting in a one-time charge to the Fund's earnings of $2.1
    million in the first quarter of 2013. The indirect costs related to the
    2012 planned system outage to accommodate the relocation of a segment of
    the Alliance pipeline as required by the NEB. 
    
--  The Fund and other renewable power generators reached an agreement with
    the Ontario Power Authority to amend existing power purchase agreements
    to include both annual and contract term curtailment caps beyond which
    renewable power generators will be compensated for lost production. The
    Fund expects uncompensated curtailment, which will impact the Ontario
    Wind Project, Talbot Wind Project and Greenwich Wind Project, to be less
    than 1% of the operating hours of the affected assets both annually and
    over the life of the contracts. 
    
--  The 145,000 barrels per day (bpd) Bakken Expansion Program was declared
    in service on March 1, 2013. The estimated final cost of the Canadian
    portion of the project is expected to be within the project's $190
    million budget. As a result of high crude oil differentials at markets
    serviced by downstream pipelines, capacity is not expected to be well
    utilized in 2013.
 However, the Fund is collecting revenues pursuant to
    firm take-or-pay commitments totaling 100,000 bpd, a portion of which
    are subject to a waiver of 25% of the take-or-pay amount in 2013. 
    
--  In the first quarter of 2013, the Fund amended its policy for certain
    operations related to recognition of a regulatory asset equal to the
    cumulative amount of depreciation expense not yet recovered in tolls but
    required to be recovered in future tolls under the terms of applicable
    long term shipper contracts and as approved by federal regulatory
    authorities. The Fund's historic accounting method treatment was adopted
    at inception in 2003. The Fund's auditors, PwC LLP (PwC), agreed with
    this treatment. Accounting guidance found in ASC 980-340 (previously FAS
    92) was deemed to be not applicable to the Fund's circumstances given
    the high degree of assurance over collectability of the regulatory asset
    afforded by the long-term contracts. Management applied its policy
    consistently from inception to 2012. 
    
    In April 2013, Management became aware that the predominant view among
    accounting authorities is now that FAS 92 represents a blanket
    prohibition on the recognition of such regulatory assets. The Fund has
    prepared its financial statements for the three months ended March 31,
    2013 following the method now viewed to be appropriate by Management and
    its auditors, PwC, and will apply this method going forward. Financial
    statements for prior periods have been revised to permit comparability
    on a consistent basis. The new method has no effect on cash flow, past
    or future, and the revisions to the historical periods are not material.
    
--  The Company's Board of Directors declared monthly dividends of $0.11125
    per common share for each of January, February and March 2013. In
    addition, monthly dividends of $0.11125 per common share were declared
    on April 15, 2013 and on May 6, 2013 for payment to shareholders on May
    15, 2013 and June 17, 2013, respectively. 

 
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, natural
gas liquids and green energy; prices of crude oil, natural gas,
natural gas liquids and green energy; expected exchange rates;
inflation; interest rates; the availability and price of labour and
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, natural gas liquids and green energy, 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 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 obligati
on 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 (CAFD). CAFD represents the Fund's cash available to
fund distributions on Fund 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. CAFD 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 CAFD
reconciliation is as follows: 


 
                                                                            
                                                                            
Three months ended March 31,                                 2013      2012 
----------------------------------------------------------------------------
(millions of Canadian dollars)                                              
 Cash provided by operating activities(1)                    49.6      60.6 
   Add/(deduct):                                                            
   Retrospective pre-Acquisition cash flows(1)                  -     (22.4)
   Green Power maintenance capital expenditures              (0.1)     (0.2)
   Green Power joint ventures cash                                          
   distributed/(retained)                                    (0.1)      0.2 
   Liquids Transportation and Storage maintenance                           
   capital expenditures                                      (1.1)     (1.7)
   Change in operating assets and liabilities in the                        
   period                                                    21.9      19.8 
----------------------------------------------------------------------------
Cash available for distribution                              70.2      56.3 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) In accordance with U.S. GAAP, cash provided by operating activities for 
 2012 periods has been retrospectively adjusted to furnish comparative      
 information related to the 2012 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 


 
                                                          Three months ended
ENBRIDGE INCOME FUND HOLDINGS INC.                                 March 31,
                                                                            
                                                          2013          2012
----------------------------------------------------------------------------
(millions of Canadian dollars, except share and                             
 per share amounts)                                                         
Earnings                                                  21.2          14.3
   Earnings per common share, basic and diluted  $        0.40 $        0.36
Cash provided by operating activities                     17.3          11.7
Dividends declared                                        18.3          12.3
   Dividends per common share                    $       0.334 $       0.309
Number of common shares outstanding                 56,491,000    39,741,000
----------------------------------------------------------------------------
                                                                            
                                                        Three months ended  
ENBRIDGE INCOME FUND(1)                                           March 31, 
                                              ------------------------------
                                                        2013      2012(2,3) 
----------------------------------------------------------------------------
(millions of Canadian dollars, except unit and                              
 per unit amounts)                                                          
Earnings                                                                    
    Green Power                                         26.1           23.4 
    Liquids Transportation and Storage                   2.9           12.2 
    Alliance Canada                                     12.3           13.1 
    Corporate                                          (27.7)         (30.8)
    Retrospective Adjustments(3)                           -            9.2 
----------------------------------------------------------------------------
                                                        13.6           27.1 
Cash available for distribution(4)                                          
  Green Power                                           41.2           36.0 
  Liquids Transportation and Storage                    33.1           19.2 
  Alliance Canada                                       17.9           18.2 
  Corporate                                            (22.0)         (17.1)
----------------------------------------------------------------------------
                                                        70.2           56.3 
Cash provided by operating activities(3)                49.6           60.6 
Cash distributions declared                             54.4           37.4 
  Distributions per trust unit and ECT                                      
   preferred unit                              $       0.403  $       0.362 
Number of units outstanding                                                 
  ECT preferred units                             72,465,750     54,074,750 
  Trust units                                     65,991,000     49,241,000 
Operating Results                                                           
  Green Power (thousands of megawatt hours                                  
   produced)                                                                
    Wind Projects                                      354.3          298.2 
    Solar Projects                                      23.9           23.0 
    Waste Heat Projects                                 19.2           19.6 
  Liquids Transportation and Storage                                        
   (thousands of barrels per day)         
                                  
    Westspur System                                    161.2          215.2 
    Saskatchewan Gathering System                      112.0          146.1 
    Weyburn System                                      31.8           31.8 
    Virden System                                       24.7           24.7 
  Alliance Canada (millions of cubic feet per                               
   day)                                              1,632.0        1,632.0 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
(1) Financial Highlights for Enbridge Income Fund have been extracted
from financial statements prepared in accordance with U.S. GAAP.  
(2) Earnings for the three months ended March 31, 2012 have been
revised. See Note2 of the March 31, 2013 financial statements of
Enbridge Income Fund.  
(3) In accordance with U.S. GAAP, earnings and cash provided by
operating activities for all 2012 periods have been retrospectively
adjusted to furnish comparative information related to the 2012
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.  
(4) See Non-GAAP Measures. 
Contacts:
Enbridge Income Fund Holdings Inc.
Jennifer Varey
Media
(403) 508-6563
jennifer.varey@enbridge.com 
Enbridge Income Fund Holdings Inc.
Teri Majer
Investment Community
(403) 508-3185
teri.majer@enbridge.com
 
 
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