Almost like clockwork, Enbridge Inc. is back in the market Monday, raising $250-million by issuing preferred shares.
Sound familiar? It should. This is the sixth time the pipeline operator has raised equity this year, and the fifth time it chose to issue preferred shares.
In total, the company has issued an incredible $2.1-billion in equity in 2012.
Does this mean the company’s severely short on cash? Nope. It just has ambitious capital expenditures. On the last quarterly conference call, chief financial officer Richard Bird noted that Enrbridge’s funding requirements for all of its programs jumped to $23.5-billion. About $3.7-billion of it has to come from equity.
Yet the $3.7-billion figure was said to be needed over the next five years. At $2.1-billion in pretty much six months, Enbridge is clearing all the tough hurdles practically right out of the blocks.
Whatever the reason, no one on Bay Street is complaining. In such a slow quarter, big issuance like this is much appreciated.