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To: Kerm Yerman who wrote (13272)	11/5/1998 8:24:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Denbury Resources Inc. Announces Third Quarter 1998 Results NYSE SYMBOL: DNR TSE SYMBOL: DNR. NOVEMBER 5, 1998 DALLAS, TEXAS--Denbury Resources Inc. ("Denbury" or the "Company")(NYSE:DNR)(TSE:DNR.) is pleased to report its operating and financial results for the third quarter of 1998 with comparatives. All dollar amounts are in U.S. dollars and production volumes and dollars are expressed on a net revenue interest basis with gas volumes converted to equivalent barrels at 6:1 ("BOE"). /T/ FINANCIAL HIGHLIGHTS (Amounts in thousands of U.S.dollars) Three Months Ended September 30, ---------------- Percentage 1998 1997 Change ------- ------- -------- Revenues: Oil sales 10,921 12,085 - 10 Gas sales 8,342 8,095 + 3 Interest and other income 336 221 + 52 ------- ------- ------- Total revenues 19,599 20,401 - 4 ------- ------- ------- Expenses: Production 6,819 5,425 + 26 General and administrative 1,543 1,415 + 9 Interest 4,419 235 + /a Depletion and depreciation 9,070 8,126 + 12 Franchise taxes 171 103 + 66 ------- ------- ------- Total expenses 22,022 15,304 + 44 ------- ------- ------- Income (loss) before income taxes (2,423) 5,097 - 148 Provision for income taxes -- (1,886) - 100 ------- ------- ------- NET INCOME (LOSS) (2,423) 3,211 - 175 ------- ------- ------- ------- ------- ------- Earnings (loss) per common share: Basic (0.09) 0.16 - 156 Fully diluted (0.09) 0.15 - 160 Average common shares outstanding 26,743 20,273 + 32 Production (daily - net of royalties) Oil (barrels) 12,764 8,148 + 57 Gas (mcf) 39,829 36,282 + 10 BOE (6:1) 19,402 14,195 + 37 Unit sales price Oil (per barrel) 9.30 16.12 - 42 Gas (per mcf) 2.28 2.43 - 6 Three Months Ended September 30, ---------------- Percentage 1998 1997 Change ------- ------- -------- Cash flow from operations /b 6,817 13,243 - 49 Cash flow per common share: Basic /c 0.25 0.65 - 62 Fully diluted /d 0.25 0.60 - 58 Oil & gas capital investments 17,429 34,617 - 50 BOE data (6:1) Revenue 10.79 15.45 - 30 Production expenses (3.82) (4.15) - 8 ------- ------- ------- Production netback 6.97 11.30 - 38 General and administrative (0.96) (1.16) - 17 Interest (2.19) - + 100 ------- ------- ------- Cash flow /c 3.82 10.14 - 62 ------- ------- ------- ------- ------- ------- /a Greater than 1000 percent. /b Exclusive of the net change in non-cash working capital balances. /c Cash flow from operations (excluding change in working capital balances) divided by average common shares outstanding. /d Assumes conversion or exercise of all securities as of beginning of period and investment of any pro forma proceeds. Nine Months Ended September 30, ---------------- Percentage 1998 1997 Change ------- ------- -------- Revenues: Oil sales 41,748 36,436 + 15 Gas sales 25,211 23,647 + 7 Interest and other income 1,078 986 + 9 ------- ------- -------- Total revenues 68,037 61,069 + 11 ------- ------- -------- Expenses: Production 22,782 15,737 + 45 General and administrative 4,996 4,535 + 10 Interest 12,788 387 + /a Depletion and depreciation 37,528 23,224 + 62 Franchise taxes 603 308 + 96 Writedown of oil and natural gas properties 165,000 - + 100 ------- ------- -------- Total expenses 243,697 44,191 + 451 ------- ------- -------- Income (loss) before income taxes (175,660) 16,878 - /a Provision for income taxes 50,618 (6,245) - 911 ------- ------- -------- NET INCOME (LOSS) (125,042) 10,633 - /a ======= ======= ======== Earnings (loss) per common share: Basic (4.88) 0.53 - /a Fully diluted (4.88) 0.50 - /a Nine Months Ended September 30, ---------------- Percentage 1998 1997 Change ------- ------- -------- Average common shares outstanding 25,631 20,175 + 27 Production (daily - net of royalties) Oil (barrels) 14,373 7,615 + 89 Gas (mcf) 39,255 34,061 + 15 BOE (6:1) 20,916 13,292 + 57 Unit sales price Oil (per barrel) 10.64 17.53 - 39 Gas (per mcf) 2.35 2.54 - 7 Cash flow from operations /b 27,324 40,166 - 32 Cash flow per common share: Basic /c 1.07 1.99 - 46 Fully diluted /d 1.03 1.83 - 44 Oil & gas capital investments 93,682 70,773 + 32 BOE data (6:1) Revenue 11.73 16.59 - 29 Production expenses (3.99) (4.34) - 8 ------- ------- -------- Production netback 7.74 12.22 - 37 General and administrative (0.98) (1.33) - 26 Interest (1.97) 0.18 + (a) ------- ------- -------- Cash flow /b 4.79 11.07 - 57 ------- ------- -------- ------- ------- -------- /a Greater than 1000 percent /b Exclusive of the net change in non-cash working capital balances. /c Cash flow from operations (excluding change in working capital balances) divided by average common shares outstanding. /d Assumes conversion or exercise of all securities as of beginning of period and investment of any pro forma proceeds. /T/ Although production for the third quarter of 1998 is 37 percent higher than the comparable quarter of 1997, revenue dropped 4 percent as a result of a 42 percent drop in the oil price and a 6 percent drop in the natural gas prices. Because of the severe economic impact of the decline in price, the Company has shut-in uneconomic wells and postponed several oil projects, including the horizontal well program at Heidelberg. Normal production declines on existing horizontal wells have accordingly not been offset by subsequent development, with the result that for the first time in several years, the Company experienced a decline in overall production rates between quarters. During the third quarter, production averaged 19,402 BOE/d, a 37 percent increase over the comparable period in 1997, but a drop of 12 percent from our second quarter high of 21,927 BOE/d. This decline was entirely in oil production with gas production increasing from 37.7 MMcf/d in the second quarter to 39.9 MMcf/d in the third quarter. Exclusive of the effect of low oil prices, overall financial results were positive. The Company was able to reduce its operating and administrative expenses on a BOE basis to one of the lowest levels in the Company's history. Operating expenses for the third quarter of 1998 were $3.82 per BOE, a decline of 8 percent from the third quarter of 1997. Administrative expenses averaged $0.96 per BOE for the current period, a reduction of 17 percent from the comparable period in 1997. Late in the third quarter, the Company's group of banks completed their semi-annual review of the Company's borrowing base, reducing it from $165 million to $130 million almost entirely as a result of lower prices. This leaves the Company with approximately $30 million of bank line availability as of November 5, 1998. In response to the continued low oil price and rising debt levels, the Company took additional steps to reduce its future capital expenditures to a level that approximates estimated available cash flow and expects its fourth quarter development expenditures to more closely match its available cash flow. Operationally, the Company is focused on finalizing several new waterflood units at Heidelberg field. Water injection is now underway at the large East Heidelberg waterflood and the response has been encouraging. At Eucutta Field, preliminary data from the 92 square mile 3-D shoot looks promising and may result in several new drilling locations. In Louisiana, the Company is completing two gas wells that were drilled based on data from the 95 square mile Lirette 3-D shoot and is also drilling an exploratory well in the Main Pass area where the Company has a 50 percent interest in approximately 12,800 recently acquired acres. Meanwhile, the Company has built a significant inventory of oil projects for the future when oil prices recover. Denbury is a natural resource company with operations in the states of Louisiana, Mississippi and Texas. This press release, other than historical financial information, contains forward looking statements that involve risks and uncertainties including budgeted capital expenditures and expected production results and other risks and uncertainties detailed in the Company's SEC reports, including the reports on Form 10-Q. Actual results may vary materially.

To: Kerm Yerman who wrote (13272)	11/5/1998 8:26:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Part 1 of 2 - Enbridge Nine Month Results Show Continued Strong Growth TSE, ME SYMBOL: ENB NASDAQ SYMBOL: ENBRF NOVEMBER 5, 1998 CALGARY, ALBERTA--November 5, 1998 HIGHLIGHTS - Nine month earnings up 12 percent to $248.6 million; earnings per share up 5 percent to $3.44. - Shareholders approve strategic name change, creating Enbridge Inc. - Construction starts on Terrace expansion of crude oil pipeline; Athabasca pipeline on target for second quarter 1999 completion. - Alliance and Vector gas pipeline projects receive key regulatory approvals. Enbridge Inc. today announced nine month earnings of $248.6 million, a 12 percent increase over the comparable period in 1997. The results reflect a 44 percent improvement in contribution from the Company's Energy Transportation segment offset in part by significantly warmer weather which adversely affected earnings from the Energy Distribution segment. Earnings per share for the first nine months of 1998 were $3.44, an increase of 5 percent compared with the same period in 1997. Brian MacNeill, President and Chief Executive Officer, noted "the improved results reflect progress on various strategic fronts and we continue to be positive on the future growth potential of our business." The Enbridge Board of Directors also declared a quarterly dividend of $0.575 per common share. The dividend is payable on December 1, 1998, to shareholders of record on November 19, 1998. ENBRIDGE: ONE COMPANY, ONE VISION On October 6, 1998, by a 98 percent vote in favour, shareholders approved a change in the Company's name from IPL Energy Inc. to Enbridge Inc. Mr. MacNeill called the change "one of the more strategic investments this Company will ever make. The Company is about more than just pipelines and natural gas", he said. "As important as these services are to our present and future, being truly one Company with one vision offers tremendous opportunities for further growth. With a single brand name to build on and nurture, we can leverage our identity across all our markets, building stronger levels of consumer and marketplace recognition and, ultimately, brand loyalty for the growing array of energy related services we envision for our Company." Enbridge has phased out the IPL Energy name and will phase out the more than 20 other operating names. Interprovincial Pipe Line Inc. has become Enbridge Pipelines Inc., while The Consumers' Gas Company Ltd. will be known as Enbridge Consumers Gas during a transition period. Enbridge anticipates that a single brand identity will result in immediate cost savings and support significant administrative and marketing efficiencies. FINANCIAL RESULTS For the nine months ended September 30, the Energy Transportation segment contributed $131.1 million to earnings, an increase of $39.8 million, or 44 percent, from the same period in 1997. The segment increased earnings as a result of higher contributions from Canadian and U.S. pipeline operations, the settlement of an insurance claim outstanding since 1991 and a higher level of investment in the Colombia Pipeline. Enbridge Pipelines recorded improved earnings, resulting from system expansion, new infrastructure projects and increased efficiencies under incentive tolling arrangements. The U.S. Lakehead System achieved record deliveries for the first nine months of 1998, resulting in increased equity earnings and higher incentive allocations to Enbridge Inc. Contributions from the Energy Distribution segment totalled $133.2 million compared with $159.0 million in 1997. The segment's results include earnings from Enbridge Consumers Gas for the nine month period October 1997 through June 1998 and income from the Company's 32 percent investment in Noverco acquired in the third quarter of 1997. Due to the seasonal nature of these gas distribution operations, nine month results are not indicative of full year operations with the fourth quarter generally incurring operating losses. For the nine month period ended September 30, 1998, Enbridge Consumers Gas and related gas distribution utilities contributed $114.7 million, down $44.0 million, or 28 percent, from the same period of 1997. The decline reflects both the impact of warmer weather and unfavourable elements of regulatory decisions including a lower allowed rate of return on equity, partially offset by an increase in the rate base. Growth in the franchise area continued with 46,000 new customers being added in the first nine months of the year, reflecting positive economic conditions in Ontario and residential fuel conversions. In the first nine months of 1998, weather was 15 percent warmer than last year and 17 percent warmer than normal. The impact of the warmer weather represents a reduction in 1998 annual earnings of approximately $40 million as compared with earnings assuming normal weather patterns. Through a variety of cost reduction initiatives, operational efficiencies and other corporate actions across the Enbridge group of companies, management anticipates that the adverse effect of weather on consolidated 1998 earnings will be substantially mitigated. Virtually all of the impact of weather and most of the offsetting mitigation initiatives have been reflected in the nine month results ended September 30, 1998. Earnings contribution from Noverco amounted to $23.5 million for the nine months ended September 30, 1998, compared with $2.1 million in 1997. The Corporate segment results for the nine month period include one time after tax gains of approximately $8 million relating to the sale of non-strategic real estate property and the recovery of previously expensed assets held in trust under a financing arrangement. These gains were recorded in first half results ended June 30, 1998. For the three months ended September 30, 1998, Enbridge's earnings increased 15 percent over the same period in 1997 to $38.8 million (1997 - $33.8 million), or $0.54 per share (1997- $0.49). Reduced earnings at Enbridge Consumers Gas were more than offset by higher earnings from the North American pipeline operations and the settlement of an outstanding insurance claim. OTHER On September 30, 1998, Enbridge acquired a 23 percent interest in the Chicap Pipe Line Company for US$22 million (CDN$34 million). The pipeline transports crude oil between the refining centres of Patoka and Chicago, Illinois. The acquisition is consistent with the Company's strategy to geographically diversify its pipeline operations and provides a strategic entry into the U.S. Gulf Coast to Chicago pipeline corridor. On October 20, 1998, the Company announced a 1.75 million treasury common share offering in Canada for distribution to the public at $67.05 per share. The proceeds of the offering will be approximately $117 million, with closing to occur November 10, 1998. Also on October 20, 1998, the Company entered into a private placement agreement to sell an additional 250,000 common shares at $67.05 per share to Noverco, for closing on November 13, 1998. This transaction maintains Noverco's ownership interest in Enbridge at approximately 10 percent. The proceeds from these issues will be used to fund investments in subsidiaries, repay indebtedness and for general corporate purposes.

To: Kerm Yerman who wrote (13272)	11/5/1998 8:28:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Part 2 of 2 - Enbridge Nine Month Results Show Continued Strong Growth TSE, ME SYMBOL: ENB NASDAQ SYMBOL: ENBRF NOVEMBER 5, 1998 CALGARY, ALBERTA--November 5, 1998 PROJECT UPDATES SEP II Expansion Continues Construction continued on the SEP II expansion with the Canadian arm expected to be in service by December 31, 1998. The U.S. portion of the pipeline is anticipated to be completed during the first quarter of 1999. The expansion is designed to increase main line system capacity by 120,000 barrels per day. CONSTRUCTION COMMENCED ON TERRACE EXPANSION Construction is under way on the Terrace Expansion project. The expansion links increasing Western Canadian heavy and synthetic crude oil supply with increasing demand in the U.S. Midwest markets. Building on the existing Canadian and U.S. pipeline systems, Phase I of the expansion will provide an incremental 95,000 barrels per day capacity in the first quarter of 1999, increasing to 170,000 barrels by the end of 1999. The estimated investment for Phase I is $610 million in Canada and US$138 million in the United States. During the quarter, the first construction contracts were awarded in Canada and pre-construction surveying activity began. Construction commenced on the main line and a new tank site at Superior, Wisconsin, in October 1998. ATHABASCA PIPELINE ON TARGET FOR SECOND QUARTER 1999 COMPLETION Construction continued on schedule on the wholly owned Enbridge Pipelines (Athabasca) System, with approximately 45 percent of the mainline completed. The line is designed to carry 570,000 barrels per day of crude oil from the Athabasca and Cold Lake regions of Alberta, south to the Hardisty hub. At Hardisty, crude will access the expanded Enbridge system, further reinforcing the strategic North American market linkages Enbridge continues to forge. The pipeline is scheduled for completion in April 1999. LINE 9 CONSTRUCTION BEGINS During the quarter, work began to reverse the flow of Line 9, which will transport crude oil from Montreal, Quebec, to refiners in Nanticoke and Sarnia, Ontario. Pump station work is now underway and a new lateral pipeline extending to two Sarnia area refiners is nearing completion. Initial capacity of 160,000 barrels per day is expected to come on stream during the second quarter of 1999. ALLIANCE RECEIVES CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY IN U.S. During the third quarter, the Alliance Pipeline project received the Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission (FERC). The certification is a significant step in that it represents final approval of the project in the United States. In Canada, the National Energy Board (NEB) submitted its environmental report to the federal Environment Minister in October, and the NEB's final decision is expected shortly. Alliance expects to begin construction in early 1999 with an expected in service date during the fourth quarter of 2000. Enbridge is a founding partner in the Alliance Pipeline and holds a 21 percent ownership position in the natural gas pipeline project. VECTOR PIPELINE OBTAINS FERC APPROVALS The Enbridge sponsored Vector Pipeline project received a Draft Environmental Impact Statement (DEIS) from FERC for the U.S. portion of the project on September 1, 1998. The DEIS was followed on October 19 by FERC's Preliminary Determination on non-environmental matters. Receipt of these documents represent key steps in the regulatory process and confirm Vector as the most advanced project for transporting gas from the Chicago area to growing markets in the Eastern and Midwest U.S. and Eastern Canada. The application for the Canadian portion of the pipeline was filed with the NEB on July 6, 1998, with the hearing before the NEB set for January 18, 1999. CORNWALL ELECTRIC On July 31, Enbridge concluded the acquisition of all of the outstanding shares of Cornwall Electric, the first municipally owned electric utility to be privatized in Ontario. The acquisition represents an opportunity to expand beyond gas distribution into a complementary energy business and creates a platform to capitalize on deregulation of the electricity market in Ontario. The shares of Cornwall Electric were acquired for $68 million. -------------------------------------------------------------- When used in this press release, the words "anticipate", "expect", "project" and similar expressions are intended to identify forward looking statements. Such statements are subject to certain risks, uncertainties and assumptions pertaining to operating performance, regulatory parameters, weather, economic conditions, etc. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. -------------------------------------------------------------- Enbridge Inc., formerly IPL Energy Inc., is a leader in energy transportation, distribution and services. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids pipeline system. The Company also is involved in liquids marketing and international energy projects, and has a growing involvement in natural gas transmission. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, which provides gas and retail services in Ontario, Quebec and New York State; and is involved in the generation and distribution of electricity. In addition, Enbridge provides retail energy products and services to a growing number of Canadian and U.S. markets. The Company employs more than 5,000 people, primarily in Canada, the U.S. and South America. Enbridge common shares trade on the Toronto and Montreal stock exchanges in Canada under the symbol "ENB" and on The NASDAQ National Market in the U.S. under the symbol "ENBRF". Information about Enbridge is available on the World Wide Web at enbridge.com. -------------------------------------------------------------- /T/ -------------------------------------------------------------- ENBRIDGE INC. (formerly IPL Energy Inc.) HIGHLIGHTS 1 -------------------------------------------------------------- Three months ended Nine months ended September 30, September 30, (unaudited; Canadian 1998 1997 1998 1997 dollars in millions, except per share amounts) -------------------------------------------------------------- FINANCIAL 2 Earnings Energy Transportation 60.1 33.4 131.1 91.3 Energy Distribution (8.1) 8.4 133.2 159.0 Corporate (13.2) (8.0) (15.7) (27.8) -------------------------------------------------------------- Consolidated Earnings 38.8 33.8 248.6 222.5 -------------------------------------------------------------- -------------------------------------------------------------- Operating Revenue Energy Transportation 135.0 134.4 394.7 386.3 Energy Distribution 331.0 434.1 1,593.8 1,787.7 -------------------------------------------------------------- Consolidated Operating Revenue 466.0 568.5 1,988.5 2,174.0 -------------------------------------------------------------- -------------------------------------------------------------- Cash Provided by Operating Activities 221.8 104.8 305.5 131.9 Cash Used in Investing Activities (578.7) (550.6) (1,039.1) (808.7) Dividends 42.7 37.0 123.6 106.7 Per Share Amounts Earnings 0.54 0.49 3.44 3.28 Dividends 0.575 0.545 1.665 1.575 Weighted Average Shares Outstanding (millions) 72.3 67.7 -------------------------------------------------------------- -------------------------------------------------------------- OPERATING Energy Transportation 3 Deliveries (thousands of barrels per day) 2,094 2,084 2,150 2,026 Barrel miles (billions) 188 196 581 568 Average haul (miles) 979 1,022 990 1,027 Energy Distribution Gas distribution volumes 2 (billion cubic feet) 78 98 353 382 Number of active customers (thousands) 1,408 1,355 1,408 1,355 Degree day deficiency 4 Actual 387 626 3,309 3,896 Forecast based on normal weather 550 562 3,985 3,878 -------------------------------------------------------------- -------------------------------------------------------------- /T/ 1. Highlights of Energy Distribution reflect the results of Enbridge Consumers Gas (The Consumers' Gas Company Ltd.) and other gas distribution assets on a quarter lag basis of consolidation for the three and nine months ended June 30, 1998 and 1997. Gas distribution earnings for the year ended September 30, 1998 were $83 million (1997 - $125 million) and will be included in the December 31, 1998 consolidated Enbridge results. 2. Due to the seasonal nature of gas distribution operations, the amounts shown for the three and nine month periods are not indicative of the results for the full fiscal year. 3. Energy Transportation operating highlights include the statistics of the 16.6 percent owned portion of the mainline system located in the United States. 4. Degree day deficiency is a measure of coldness which is indicative of volumetric requirements of natural gas utilized for heating purposes in all markets. It is calculated by accumulating from October 1 the total number of degrees each day by which the daily mean temperature falls below 18 degrees Celsius. The figures given are those accumulated in the Toronto area. /T/ -------------------------------------------------------------- ENBRIDGE INC. (formerly IPL Energy Inc.) CONSOLIDATED STATEMENT OF EARNINGS -------------------------------------------------------------- Three months ended Nine months ended September 30, September 30, (unaudited; Canadian 1998 1997 1998 1997 dollars in millions, except per share amounts) -------------------------------------------------------------- Operating Revenue Gas sales 236.3 379.0 1,287.7 1,605.1 Transportation revenue 154.1 137.2 491.6 404.3 Other 75.6 52.3 209.2 164.6 -------------------------------------------------------------- 466.0 568.5 1,988.5 2,174.0 -------------------------------------------------------------- Expenses Gas costs 142.3 235.1 797.5 954.4 Operating and administrative 155.6 154.0 476.5 457.9 Depreciation 77.3 69.4 227.6 202.2 -------------------------------------------------------------- 375.2 458.5 1,501.6 1,614.5 -------------------------------------------------------------- Operating Income 90.8 110.0 486.9 559.5 Investment and Other Income 30.7 15.3 116.2 38.4 Interest Expense (77.6) (68.2) (228.8) (206.3) -------------------------------------------------------------- Earnings Before Income Taxes 43.9 57.1 374.3 391.6 Income Taxes (5.1) (23.3) (125.7) (169.1) -------------------------------------------------------------- Earnings 38.8 33.8 248.6 222.5 -------------------------------------------------------------- -------------------------------------------------------------- Earnings Per Share 0.54 0.49 3.44 3.28 -------------------------------------------------------------- -------------------------------------------------------------- Weighted Average Shares Outstanding (millions) 72.3 67.7 -------------------------------------------------------------- -------------------------------------------------------------- -------------------------------------------------------------- ENBRIDGE INC. (formerly IPL Energy Inc.) CONSOLIDATED STATEMENT OF CASH FLOWS -------------------------------------------------------------- Nine months ended September 30, (unaudited; Canadian dollars 1998 1997 in millions) -------------------------------------------------------------- Cash from Operating Activities Earnings 248.6 222.5 Charges (credits) not affecting cash Depreciation 227.6 202.2 Other (33.3) 13.6 Changes in working capital Accounts receivable and other current assets (121.6) (103.2) Gas in storage 83.4 160.4 Short term borrowings (80.9) (309.3) Accounts payable and other current liabilities (18.3) (54.3) -------------------------------------------------------------- 305.5 131.9 -------------------------------------------------------------- Investing Activities Additions to property, plant and equipment (871.7) (405.5) Long term investments (177.6) (391.3) Other 10.2 (11.9) -------------------------------------------------------------- (1,039.1) (808.7) -------------------------------------------------------------- Financing Activities Variable rate financing, net 438.8 528.4 Fixed rate financing, net 419.3 221.1 Capital stock 7.5 25.4 Dividends (123.6) (106.7) -------------------------------------------------------------- 742.0 668.2 -------------------------------------------------------------- Increase (Decrease) in Cash and Cash Equivalents 8.4 (8.6) Cash and Cash Equivalents at Beginning of Period 51.3 13.8 -------------------------------------------------------------- Cash and Cash Equivalents at End of Period 59.7 5.2 -------------------------------------------------------------- -------------------------------------------------------------- -------------------------------------------------------------- ENBRIDGE INC. (formerly IPL Energy Inc.) CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION -------------------------------------------------------------- September 30, December 31, (unaudited; except for 1998 1997 December 31, 1997; Canadian dollars in millions) -------------------------------------------------------------- ASSETS Cash and cash equivalents 59.7 51.3 Accounts receivable and other current assets 558.2 436.6 Gas in storage 226.5 309.9 Long term investments 658.0 517.3 Deferred charges and other assets 169.8 142.1 Property, plant and equipment, net 5,917.4 5,215.0 -------------------------------------------------------------- 7,589.6 6,672.2 -------------------------------------------------------------- -------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Short term borrowings 317.9 398.8 Accounts payable and other current liabilities 545.9 564.2 Current portion of long term liabilities 32.1 409.4 Long term debt 4,403.4 3,166.4 Deferred liabilities 432.2 434.0 Shareholders' equity 1,858.1 1,699.4 -------------------------------------------------------------- 7,589.6 6,672.2 -------------------------------------------------------------- -------------------------------------------------------------- /T/

To: Kerm Yerman who wrote (13272)	11/5/1998 8:31:00 PM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / Canop Announces Paladin Joint Venture in Tanzania ASE SYMBOL: CWC NOVEMBER 5, 1998 CALGARY, ALBERTA--Canop Worldwide Corp. ("Corp."), an international oil and gas exploration company based in Calgary, Canada, announce they have signed an agreement whereby Paladin Resources plc ("Paladin") of London, England will earn a 20 percent interest in a 4.3 million acre oil and gas exploration concession in coastal Tanzania which is governed by a Production Sharing Agreement (PSA) issued on June 10, 1997 by the government of Tanzania to Canop. Paladin will earn their interest in the entirety of the PSA area by paying certain seismic costs in the initial exploration phase, and by reimbursing Canop for certain previously incurred costs.

To: Kerm Yerman who wrote (13272)	11/5/1998 8:33:00 PM
From: Herb Duncan	Respond to of 15196

PIPELINES / The Consumers' Gas Company Ltd. Operating as Enbridge Consumers Gas TSE, ME SYMBOL: ENB NASDAQ SYMBOL: ENBRF AND ENBRIDGE CONSUMERS GAS NOVEMBER 5, 1998 TORONTO, ONTARIO--(November 5, 1998) Enbridge Consumers Gas, today announced income applicable to common shares of $90.8 million or $1.34 per common share for the year ended September 30, 1998, compared to $134.2 million or $2.01 per common share last year. The Board of Directors declared the quarterly dividends on all classes of preference shares payable on January 1, 1999, to shareholders of record on December 3, 1998. /T/ Pref. Group 1, Series A & B $1.375 Pref. Group 1, Series C $1.25 Pref. Group 2, Series C $0.403125 /T/ The Consumers' Gas Company Ltd., Toronto (operating as Enbridge Consumers Gas), is a wholly-owned subsidiary of Enbridge Inc. of Calgary. Enbridge Inc. ("Enbridge"), formerly IPL Energy Inc., is a leader in energy transportation, distribution and services. As a transporter of energy, Enbridge operates in Canada and the U.S. the world's longest crude oil and liquids pipeline system, is involved in liquids marketing and international energy projects, and has a growing involvement in natural gas transmission. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company which provides gas and retail services in Ontario, Quebec and New York State, and is involved in the generation and distribution of electricity. In addition, Enbridge provides retail energy products and services to a growing number of Canadian and U.S. markets. Enbridge employs more than 5,000 people in Canada, the U.S. and South America. Enbridge Inc.'s common shares trade on the Toronto and Montreal stock exchanges in Canada under the symbol "ENB". In the United States the shares trade on The NASDAQ National Market under "ENBRF". /T/ THE CONSUMERS' GAS COMPANY LTD. Financial and Operating Highlights For the year ended September 30 ------------------------------------------------------------- 1998 1997 ------------------------------------------------------------- Financial (expressed in thousands except per share amounts) Gas sales $1,397,177 $1,749,752 Transportation of gas 130,136 24,505 Other revenue 244,425 212,521 ------------------------ Total revenue 1,771,738 1,986,778 Gas costs 861,832 1,036,252 ------------------------ Net revenue $ 909,906 $ 950,526 ------------------------ ------------------------ Net income $ 91,069 $ 134,493 Income applicable to common shares $ 90,822 $ 134,207 Earnings per common share $ 1.34 $ 2.01 Long term interest coverage ratio 2.1 2.7 Net tangible asset coverage ratio of long term debt Before and after deferred taxes 1.5 1.7 Operating Volumetric statistics (millions of cubic metres) Gas sales Residential 3,276 4,070 Commercial 2,694 4,035 Industrial 824 1,292 Wholesale 104 173 Transportation of gas 4,337 2,567 ----------------------- Total distribution volume 11,235 12,137 ----------------------- ----------------------- Number of active customers 1,392,485 1,341,779 Degree day deficiency(1) Actual 3,352 4,011 Forecast based on normal weather 4,079 4,003 Preference Share Information TSE closing price of preference shares CGT.PR.A - Group 1, Series A, 5 1/2 percent $ 99.00 $ 97.00 CGT.PR.B - Group 1, Series B, 5 1/2 percent $ 98.50 $ 95.35 CGT.PR.H - Group 2, Series C, 6.45 percent $ 26.90 $ 27.25 CGT.PR.G - Group 3, Series C, 5.72 percent $ 24.85 $ 26.25 ---------------------------------------------------------- ---------------------------------------------------------- /T/ Note 1: Degree day deficiency is a measure of coldness which is indicative of volumetric requirements of natural gas utilized for heating purposes in all markets. It is calculated by accumulating from October 1 the total number of degrees each day by which the daily mean temperature falls below 18 degrees Celsius. The figures given are those accumulated in the Toronto area. /T/ THE CONSUMERS' GAS COMPANY LTD. Consolidated Statements of Income(1) (thousands of dollars except per share amounts) ------------------------------------------------------------- Year ended September 30 ------------------------------------------------------------- 1998 1997 ------------------------------------------------------------- Gas sales $1,397,177 $1,749,752 Gas costs 861,832 1,036,252 ---------------------- Gas sales margin 535,345 713,500 Transportation of gas for customers 130,136 24,505 ---------------------- Net gas distribution revenue 665,481 738,005 Other revenue 244,425 212,521 ---------------------- 909,906 950,526 ---------------------- Expenses Operation and maintenance 319,201 328,348 Depreciation 196,752 169,713 Municipal and other taxes 39,557 37,207 ---------------------- 555,510 535,268 ---------------------- Income before undernoted items 354,396 415,258 Financial charges Interest on long term debt 154,637 149,931 Other interest and finance costs 15,768 9,915 Dividends on Group 2 and 3 preference shares 6,085 6,085 Interest capitalized (3,818) (5,397) ---------------------- 172,672 160,534 ---------------------- Income before income taxes 181,724 254,724 Income taxes Current 108,898 129,063 Deferred (18,243) (8,832) ---------------------- 90,655 120,231 ---------------------- Net income 91,069 134,493 Dividends on Group 1 preference shares 247 286 ---------------------- Income applicable to common shares $90,822 $134,207 ---------------------- ---------------------- Earnings per common share $ 1.34 $ 2.01 ------------------------------------------------------------- ------------------------------------------------------------- /T/ (1) The accompanying information represents a condensed version of the Company's full financial statements. For notes to the financial statements, which are an integral part of these statements, refer to the Company's Annual Review and Financial Statements. /T/ THE CONSUMERS' GAS COMPANY LTD. Consolidated Balance Sheets(1) (thousands of dollars) ------------------------------------------------------------- September 30 ------------------------------------------------------------- 1998 1997 ------------------------------------------------------------- Assets Current assets Cash and short term investments $ 51,216 $ 892 Accounts receivable 215,045 191,653 Materials and supplies 34,492 37,257 Gas in storage 357,820 309,901 Income taxes recoverable 40,076 - Deferred income taxes 9,363 - Prepaid expenses 15,059 16,673 -------------------- 723,071 556,376 -------------------- Property, plant and equipment 4,208,433 3,874,719 Accumulated depreciation 1,114,458 974,029 -------------------- 3,093,975 2,900,690 -------------------- Other assets and deferred charges 111,446 85,132 --------------------- $3,928,492 $3,542,198 ------------------------------------------------------------- ------------------------------------------------------------- Liabilities and shareholders' equity Current liabilities Loans and notes payable $ 405,061 $ 354,268 Accounts payable 309,088 317,467 Income and other taxes payable - 47,648 Deferred income taxes - 9,867 Dividends payable 21,278 20,231 Preference shares 100,000 - Current portion of long term debt 48,390 253,640 --------------------- 883,817 1,003,121 --------------------- Long term debt 1,946,320 1,408,145 --------------------- Deferred credits 42,100 - --------------------- Deferred revenue 10,054 - --------------------- Preference shares - 100,000 --------------------- Deferred income taxes 4,515 3,880 --------------------- Shareholders' equity Capital stock Group 1 preference shares 3,962 5,182 Common shares 333,420 333,420 Contributed surplus 50,208 50,195 Retained earnings 654,096 638,255 --------------------- 1,041,686 1,027,052 --------------------- $3,928,492 $3,542,198 ------------------------------------------------------------- ------------------------------------------------------------- THE CONSUMERS' GAS COMPANY LTD. Consolidated Statements of Cash Flow(1) (thousands of dollars) ------------------------------------------------------------- Year ended September 30 ------------------------------------------------------------- 1998 1997 ------------------------------------------------------------- Cash from Operating Activities Net income $ 91,069 $ 134,493 Charges (credits) not affecting cash Depreciation 196,752 169,713 Deferred income taxes (18,243) (8,832) Amortization of deferred charges and other items 2,410 2,617 -------------------- 271,988 297,991 Change in non-cash working capital (163,035) 19,388 -------------------- 108,953 317,379 -------------------- Financing Activities Loans and notes payable 50,793 (94,337) Issue of long term debt 596,363 304,427 Long term debt repayments (263,438) (72,811) Deferred credits 42,100 - Deferred revenue 10,054 - Issue of common shares - 34,171 Dividends paid, common shares (77,067) (71,874) Redemption of Group 1 preference shares (1,220) (328) Dividends paid, Group 1 preference shares (264) (291) -------------------- 357,321 98,957 -------------------- Investing Activities Additions to property, plant and equipment (390,037) (405,247) Additions to other assets and deferred charges (28,724) (11,518) Other, net 2,811 913 -------------------- (415,950) (415,852) -------------------- Increase in cash 50,324 484 Cash and short term investments, beginning of year 892 408 -------------------- Cash and short term investments, end of year $ 51,216 $ 892 ------------------------------------------------------------ ------------------------------------------------------------

To: Kerm Yerman who wrote (13272)	11/5/1998 8:34:00 PM
From: Herb Duncan	Respond to of 15196

FINANCING / Paramount Resources Ltd. - Receipt For Filing of Final Short Form Prospectus TSE SYMBOL: POU NOVEMBER 5, 1998 CALGARY, ALBERTA--Paramount Resources Ltd. announces that it has today received receipt for a final short form prospectus dated November 4, 1998, from the securities commissions in Alberta, British Columbia, Manitoba, Saskatchewan, Ontario and Quebec covering the issue of 3.0 million common shares at $15.00 per share for gross proceeds of $45 million. The Corporation expects closing to occur on or about November 13, 1998. Paramount's common shares are listed for trading on the Toronto Stock Exchange under the symbol "POU".

To: Kerm Yerman who wrote (13272)	11/5/1998 8:37:00 PM
From: Herb Duncan	Respond to of 15196

PROPEERTY ACQUISITION / Eurogas Awarded Seismic Option Permit in Southern Tunisia TSE SYMBOL: EUG NOVEMBER 5, 1998 CALGARY, ALBERTA--Eurogas Corporation is pleased to announce that they have been awarded the 4,455 square kilometer (1.1 million acre) El Hamra seismic option permit in southern Tunisia. The permit is favorably positioned along the southern flank of the Telemzane Arch, a major geologic feature in the northern portion of the Ghadames Basin that extends from Algeria, across Tunisia and into Libya. The basin is host to major oil and gas fields including the giant El Borma oil field located some 50 kilometers south of the El Hamra permit. The seismic option is for a term of two years, during which the Corporation will complete a work program consisting of the reprocessing of 2,000 kilometers of existing seismic data and the acquisition of 100 kilometers of new seismic data. After the completion of this program the Corporation may convert the option into an exploration concession for an additional four-year period. Eurogas, as operator, has a 33-1/3 percent working interest in the El Hamra permit. Eurogas is also pleased to announce the official confirmation of a two-year extension of the Bazma permit to October 31, 2000. The Corporation remains optimistic about the exploration potential of the 500,000 acre Bazma block and plans are being formulated for further seismic evaluation of the permit. Eurogas has a 40 percent working interest in the permit. Additionally, Eurogas and its partners are continuing to consider their position regarding the Sud Nefta permit in western Tunisia where another well commitment will be required in order to extend the permit. Eurogas Corporation is an independent oil and gas company engaged in the development of a major gas storage project in Spain, exploration for oil and gas reserves in Tunisia, development of a major gas/condensate/oil field in Russia and the exploration for and production of oil and gas in Canada. The company is listed on the Toronto Stock Exchange (TSE) under the symbol EUG.

To: Kerm Yerman who wrote (13272)	11/5/1998 8:39:00 PM
From: Herb Duncan	Respond to of 15196

MERGERS-ACQUISITIONS / Del Roca Energy Ltd. to Begin Trading ASE SYMBOL: DRQ AND DEL ROCA ENERGY INC. ASE SYMBOL: DER AND TEKERRA GAS INC. VSE SYMBOL: TKG NOVEMBER 5, 1998 CALGARY, ALBERTA--DEL ROCA ENERGY LTD. (the "Corporation" or " Del Roca"), announces that its common shares will commence trading on the Alberta Stock Exchange at the opening of business on FRIDAY, NOVEMBER 6, 1998. As a result of the amalgamation by way of Plan of Arrangement of Del Roca Energy Inc. (ASE:DER) and Tekerra Gas Inc. (VSE:TKG) continuing as Del Roca Energy Ltd., which was effective on October 31, 1998, the common shares of Del Roca Energy Inc. were delisted at the opening of business on Monday November 2, 1998, The stock symbol for the common shares of Del Roca Energy Ltd. is DRQ. Del Roca will not make application to have its common shares posted for trading on the Vancouver Stock Exchange. Del Roca Energy Ltd. is a Calgary based emerging junior oil and gas company engaged in the business of exploration and development of oil and gas reserves in Alberta.