Corporate Vision And Key Objective
Enbridge is an energy delivery company that transports natural gas and crude oil, which are used for many purposes, including to heat homes, power transportation systems and provide fuel and feedstock for industries. The Company's vision is to be North America's leading energy delivery company and its key objective is to generate superior shareholder value. The Company will deliver superior shareholder value through an investment proposition consisting of:
- industry leading earnings per share growth rate;
- a low risk commercial business model; and
- a balanced combination of near-term dividend income and capital appreciation.
Enbridge's 2008 Strategic Plan consisted of four key strategic priorities to generate superior shareholder value and position the Company for the energy environment of the future.
1. Expand Existing Core Businesses
Developing and operating energy delivery infrastructure assets remains the Company's core competency and strength. To capitalize on its asset position, Enbridge will pursue opportunities in both its liquids and natural gas delivery businesses. The Company will aggressively focus on the expansion and extension of its liquids pipeline and terminaling businesses. The Company will also seek to capture additional growth opportunities associated with its gas businesses to maintain as much diversification as is prudent. Strategies for each core business are included in the sections to follow.
2. Focus on Operations
Effective day-to-day management of operations is integral to Enbridge's broader strategy. Achieving the Company's long-term objectives depends on its ability to consistently deliver safe, cost-effective and high quality service to customers and meet the broader expectations of communities it serves. Operational excellence will ensure that the Company is able to deliver consistent and predictable operating and financial performance while rapidly growing its asset and earnings base. Enbridge will continue its focus on operational excellence, including cost efficiency, safety and customer service.
3. Mitigating and Managing Execution Risk
Executing Enbridge's unprecedented capital program demands effective strategies for mitigating and managing project development risk. Key priorities include enhanced project management systems and processes, proactive human resource planning and an increased focus on social investment, to both facilitate project development and meet the expectations of the Company's stakeholders.
4. Developing New Platforms for Longer-term Growth
In the longer term, developing new business platforms will be important to maintaining growth and diversification within the Company. New platforms currently being pursued include renewable energy (wind and solar), CO2 transportation and sequestration and investment in smaller start-up entities to enable the development of new technologies that complement the Company's core operations.
To successfully pursue these strategies, the Company must also mitigate other risks. These risks, and the Company's strategies for managing them, are described under Risk Management.
Enbridge's strategy is reviewed annually with direction from its Board of Directors. The Company continually assesses ways to generate value for shareholders, including reviewing opportunities that may lead to acquisitions, dispositions or other strategic transactions, some of which may be material. Opportunities are screened, analyzed and must meet operating, strategic and financial benchmarks before being pursued.