Overview
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Enbridge Income Fund is underpinned with high quality assets supporting its income/safety investment thesis. These assets possess the following characteristics:
- Strategic oil and gas pipeline assets
- Green power generation assets
- Long life assets, supported by strong supply/demand fundamentals
- Low risk. Predictable commercial terms
- Minimal maintenance capital expenditure requirements
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The Enbridge Income Fund assets are a 50% interest in the Alliance Canada Pipeline ("Alliance Canada") 100% interest in Enbridge Pipelines (Saskatchewan) Inc. ("Saskatchewan System"), and Green Power assets which include a 50% interest in NRGreen Power Limited Partnership, ("NRGreen") which is developing electrical generation opportunities with waste heat and interests in three wind power projects in Western Canada.
These assets fit with and are integral to Enbridge Inc.'s continuing business strategy and remain part of the Enbridge family.
The Fund’s objectives are to provide a stable and sustainable flow of distributable cash and to increase, where prudent, distributions of distributable cash on a per trust unit basis.
In order to further achieve these growth and stability objectives, the Manager pursues a business strategy for the Fund which involves:
- Maximizing the efficiency and profitability of its existing assets through representation on the Boards and/or management committees of the Fund's assets;
- pursuing organic growth and expansion opportunities through its existing businesses; and
- acquiring and or developing new energy infrastructure businesses that are complementary and in keeping with the risk and return profile of its existing business.
Over time the Fund should become even more diversified which will further lower its risk profile. The following diagram is a simple depiction of the Enbridge Income Fund value proposition. The emphasis is on high cash return, with a modest amount of growth, and a high level of safety with respect to income, growth and the preservation of capital.
Investment Thesis
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Distributable Cash Flow (2007)
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* Green Power added in Q4 2006
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