10% Divideng increase Press release from Marketwire
Enbridge Income Fund Holdings Inc. Releases 2018 Guidance and Long Term Financial Outlook
Wednesday, November 29, 2017
Enbridge Income Fund Holdings Inc. Releases 2018 Guidance and Long Term Financial Outlook
16:34 EST Wednesday, November 29, 2017
CALGARY, ALBERTA--(Marketwired - Nov. 29, 2017) - Enbridge Income Fund Holdings Inc. (TSX:ENF) ("ENF" or the "Company") announced today its Financial Guidance for 2018 as well as its long term business and financial outlook. The Company is a premier Canadian investment vehicle for investors looking for growing and predictable cash flow and distribution growth from a portfolio of high-quality, low-risk energy infrastructure assets.
Business Outlook
The Company's business outlook for the 2018 - 2020 planning period is expected to be strong, with continued available cash flow from operations ("ACFFO") growth within the Liquids Pipelines segment as a result of a full year contribution from $3.7 billion of new capital projects coming into service in 2017, primarily within the Regional Oil Sands business. In addition, Canadian Mainline performance is expected to further strengthen in 2018, driven primarily by increasing throughput and a higher average Canadian residual toll. Other factors leading to the improved performance include a higher effective hedge rate on the US dollar revenues generated by the Canadian Mainline and cost savings from enterprise-wide initiatives.
ACFFO Guidance for 2018
The Company expects 2018 ACFFO for the Fund Group to be in a range of $2.45 billion to $2.65 billion inclusive of the impact of the common equity issuance announced by the Company today for further investment in the Fund Group. This assumes core maintenance capital expenditures of between $65 million and $100 million and cash taxes in the range of $200 million to $260 million.
2018 Dividend Increase and Long Term Dividend Guidance
The ENF Board of Directors has declared a cash dividend of $0.1711 per common share to be paid on January 15, 2018, to shareholders of record at the close of business on December 29, 2017, and a cash dividend of $0.1883 per common share to be paid on February 15, 2018 to shareholders of record at the close of business on January 31, 2018. This represents a 10% increase in the monthly dividend rate, consistent with previously announced guidance.
The Company is now extending its 10% annual dividend growth guidance by an additional year to 2020. The Fund Group expects to maintain distribution coverage for the period of 1.2x - 1.3x.