Enbridge raises quarterly dividend, approves $1.1B in new capital projects

Enbridge Inc. has raised its quarterly dividend as it announced the approval of $1.1 billion in new capital projects.

The Calgary-based pipeline company said in its investor day Tuesday it will now pay a quarterly dividend of 86 cents per share, up from 83.5 cents. It also reaffirmed its 2021 full-year guidance range for adjusted earnings of $13.9 billion to $14.3 billion.

In a news release, chief executive Al Monaco said recent global energy shortages have confirmed the essential role Enbridge's assets will play in years to come.

He said the company's three-year growth plan will focus on enhancing existing asset returns, modernizing the company's assets, and low capital intensity opportunities within Enbridge's conventional businesses.

"We also plan to continue to invest in low-carbon opportunities that leverage our existing assets and provide a platform for future growth," Monaco said.

Monaco said Enbridge has sanctioned $1.1 billion of new growth projects, along with the $1 billion announced earlier this year.

Newly announced capital projects include $500-million expansion of its Valley Crossing Pipeline in Texas. It will also spend $300 million on an expansion of its Dawn to Parkway system in Ontario.

The company will also invest $100 million in a floating offshore wind project off the southern coast of France.

Last week, Enbridge and Capital Power agreed to jointly evaluate and advance a carbon capture and sequestration (CCS) project, with Enbridge as the transportation and storage service provider and Capital Power as the CO2 provider, subject to the Government of Alberta's competitive carbon hub selection process and a future final investment decision.

The proposed project would serve Capital Power's Genesee Generating Station near Warburg, Alta., which currently provides over 1,200 megawatts of baseload electricity

Enbridge also said Tuesday it plans to buy back up to $1.5 billion worth of its shares.