On November 3, 2023, Enbridge Inc (ENB, Financial) released its third-quarter 2023 financial results, reaffirming its 2023 financial outlook. The company reported GAAP earnings of $0.5 billion or $0.26 per common share, a decrease from $1.3 billion or $0.63 per common share in 2022. Adjusted earnings were $1.3 billion or $0.62 per common share, compared with $1.4 billion or $0.67 per common share in 2022.
Financial Highlights
The company's adjusted EBITDA increased by 3% to $3.9 billion, compared with $3.8 billion in 2022. Cash provided by operating activities was $3.1 billion, compared with $2.1 billion in 2022. Distributable cash flow (DCF) was $2.6 billion, an increase of $0.1 billion, compared with $2.5 billion in 2022.
Strategic Acquisitions
Enbridge entered into definitive agreements with Dominion Energy, Inc. to acquire The East Ohio Gas Company, Questar Gas Company and its related Wexpro companies, and Public Service Company of North Carolina, Incorporated for an aggregate purchase price of US$14 billion (CDN$19 billion). The company has filed applications for all key federal and state required regulatory approvals to complete the pending acquisitions and approximately 75% of the financing for the aggregate purchase price has been secured.
CEO Commentary
Despite ongoing market volatility, Enbridge's four businesses delivered another solid quarter of financial performance. We saw high utilization across our systems delivering reliable, affordable, and sustainable energy for our customers while upholding industry-leading safety standards. We're tracking to plan and expect to achieve our 2023 EBITDA and DCF per share guidance for the 18th consecutive year."
Financial Outlook
The company reaffirms its 2023 financial guidance for EBITDA and DCF. Results for the first nine months of 2023 are in line with the company's expectations and the company anticipates that its businesses will continue to experience strong capacity utilization and operating performance through the balance of the year with normal course seasonality.
Conclusion
Enbridge Inc (ENB, Financial) has demonstrated a solid financial performance in Q3 2023, with a 3% increase in adjusted EBITDA compared to the same period in 2022. The company's strategic acquisitions and reaffirmed 2023 financial guidance indicate a positive outlook for the remainder of the fiscal year.
Explore the complete 8-K earnings release (here) from Enbridge Inc for further details.
