Canadian pipeline operator Enbridge Inc. on Dec. 8 forecast higher core earnings in 2021 and raised its annual dividend, saying it expects to see volume on its Liquids Mainline System improve next year.
A coronavirus-led plunge in demand for crude and related products had forced companies to shut-in production this year. However, with fuel demand having rebounded and prices hovering at about $50/bbl, producers have started restoring their shut-in drilling.
Enbridge said it also expects rates for gas transportation to rise and a growing customer base for gas distribution and storage.
The company forecast 2021 EBITDA to be in the range of CA$13.9 billion (US$10.86 billion) to CA$14.3 billion, higher than 2020 forecast of about CA$13.7 billion.
The Calgary, Alberta-based company also forecast 2021 distributable cash flow per share to be between CA$4.70 and CA$5.00 compared with its 2020 forecast of CA$4.50 to CA$4.80.
Enbridge raised its dividend by 3% to CA$0.835/quarter or CA$3.34 annually, effective March 1, 2021.
(US$1 = 1.2797 Canadian dollars)
Recommended Reading
SEC Launches Probe of Exxon Mobil on Permian Basin Asset Valuation
Several people involved in valuing the Exxon Permian Basin asset during an internal assessment in 2019 said employees were being forced to use unrealistic assumptions, according to a report from the Wall Street Journal.
Exxon Mobil Discloses Emissions Data for First Time
Exxon Mobil, the largest U.S. oil producer, said the emissions from its product sales in 2019 were equivalent to 730 million metric tons of CO₂, higher than rival oil majors.
Exxon Mobil Signals Up to $20 Billion Write-down to Overwhelm Fourth-quarter Gains
Exxon Mobil signaled in a regulatory filing that higher oil and gas prices and improved chemicals margins would aid fourth-quarter results, but the gains would be overshadowed by an up to $20 billion asset write down.