Enbridge Announces Normal Course Issuer Bid
Enbridge Inc. announced approval from the Toronto Stock Exchange for a normal course issuer bid (NCIB), allowing the company to repurchase up to 31,062,331 common shares, amounting to $1.5 billion. The NCIB is set to begin on January 5, 2022, and run until January 4, 2023, or until the maximum shares are acquired. The repurchase represents approximately 1.53% of outstanding shares as of December 22, 2021. The company aims to maintain a strong balance sheet while executing these buybacks, with purchases made at market prices.
- Approval for NCIB indicates confidence in financial stability.
- Repurchase of shares may enhance shareholder value.
- Potential market volatility could impact the effectiveness of share repurchases.
- The effectiveness of the NCIB is contingent on market conditions.
CALGARY, AB, Dec. 31, 2021 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced today that the Toronto Stock Exchange (TSX) has approved the Company's normal course issuer bid (NCIB) to purchase, for cancellation, up to 31,062,331 of its outstanding common shares to an aggregate amount of up to
Purchases under the NCIB may be made through the facilities of the TSX, the New York Stock Exchange (NYSE) and other designated exchanges and alternative trading systems, commencing on January 5, 2022 and continuing until January 4, 2023, when the bid expires, or such earlier date on which the Company has either acquired the maximum number of common shares allowable under the NCIB or otherwise decides not to make any further repurchases under the NCIB. The maximum number of common shares that Enbridge may repurchase for cancellation represents approximately
Share repurchases made pursuant to the Company's NCIB will be predicated upon maintaining a strong balance sheet, performance of the business, and the availability and attractiveness of alternative capital investment opportunities. The price that Enbridge will pay for common shares in open market transactions will be the market price at the time of purchase and common shares purchased under the NCIB will be cancelled. The actual number of common shares purchased under the NCIB, the timing of purchases, and the price at which the common shares are acquired will depend upon future market conditions.
The NCIB will be effected in accordance with the TSX's NCIB rules and Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended, which contain restrictions on the number of common shares that may be purchased on a single day, subject to certain exceptions for block purchases, based on the average daily trading volumes of Enbridge's common shares on the applicable exchange. Subject to exceptions for block purchases, Enbridge will limit daily purchases of common shares on the TSX in connection with the NCIB to no more than 25 percent (1,929,706 common shares) of the average daily trading volume of the common shares on the TSX from June 1, 2021 to and including November 30, 2021 (7,718,824 common shares) during any trading day.
The Company has engaged TD Securities Inc. as its broker to effect repurchases of the Company's common shares under the NCIB within a defined set of criteria.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which owns approximately 1,766 megawatts (net) in renewable power generation capacity in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. 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", "will" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to Enbridge's intention to commence the NCIB, the purpose of the NCIB, and the timing, methods and quantity of any purchases of common shares under the NCIB.
Although Enbridge believes 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. 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, as they may impact current and future levels of demand for the Company's services. Similarly, energy transition, including the drivers and pace thereof, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company'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.
Enbridge's forward-looking statements are subject to risks and uncertainties, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States 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 Enbridge'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, Enbridge assumes 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 Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original content:https://www.prnewswire.com/news-releases/enbridge-announces-normal-course-issuer-bid-301452033.html
SOURCE Enbridge Inc.
FAQ
What is Enbridge's normal course issuer bid (NCIB)?
When does Enbridge's NCIB start and end?
How many shares can Enbridge repurchase under the NCIB?
What factors influence Enbridge's share repurchase strategy?
What exchanges will be used for the NCIB purchases?
