Enbridge Inc. Q3 2008 Earnings Call Transcript

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2008-11-05 12:31:11.0

Tags: Merrill Lynch & Co. Inc., Call Transcript, Agreement, Liquidity, Business Development, Earnings, Strategic Planning, Strategy, Management, Seeking Alpha, Merrill Lynch & Co. Inc., Call Transcript, Agreement, Liquidity, Business Development, Earnings, Strategic Planning, Strategy, Management, Seeking Alpha

Question-and-Answer Session

At this time, we'll now take question from all analysts. [Operator Instructions]. And your first question comes from the line of Linda with TD Newcrest. Please proceed.

Linda Ezergailis - TD Newcrest

Thank you. I am wondering if you can quantify the amount of business development expenses for wave two projects in Q3 and what your expectation of a run-rate going forward for I guess the balance of the year as well as 2009 and 2010 would be?

Patrick D. Daniel - President and Chief Executive Officer

Richard or Colin, can you take that?

J. Richard Bird - Chief Financial Officer, Executive Vice President and Corporate Development

Sure, I'll take it. Q3 business development costs, I think ran us at a $2 million higher than of course one quarter in the prior year. And, I'm not sure that's indicative of what our running REI is going to be a go forward basis, because I think we are looking at starting to manage those down to a certain degree. So, it's probably a little bit more of a onetime lift that we would expect to see on a go forward basis.

Linda Ezergailis - TD Newcrest

Okay. Thank you. And, if you can just clarify your revolving credit agreement with EEP of $500 million, would you expect that the magnitude of that agreement to grow and for how long is that agreement in place?

J. Richard Bird - Chief Financial Officer, Executive Vice President and Corporate Development

That's a three year term facility, and when we display Enbridge's available liquidity, we lock that amount off the top because that is set aside for EEP. At the moment, there is no plans to extend additional liquidity to EEP or above that. We believe what it has in place, will be sufficient but we do have the ability to do so if that were necessary.

Linda Ezergailis - TD Newcrest

Great, thank you.

Patrick D. Daniel - President and Chief Executive Officer

Thanks Linda.

Operator

And your next question will come from the line of Andrew Fairbanks with Merrill Lynch. Please proceed.

Andrew Fairbanks - Merrill Lynch

Hey, good morning guys. I'm just curious, as we see potentially the mix of oil sands projects move more to raw bitumen from synthetic crude oil. How would that affect your capacity plans going forward and the overall system's ability to deliver volumes to where they mostly used by U.S. refining systems?

 

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