At Veresen, direct line of sight to our long-term growth strategy guides all of our business decisions. While certain aspects of our strategy have been fine-tuned over the years to adapt to current market circumstances, our overall strategic vision has remained unchanged. We remain focused on optimizing and growing each of our existing businesses and developing new, high-quality, long-life, energy infrastructure assets that complement or diversify our existing solid asset base.
At the heart of operating our day-to-day business is our commitment to maintain the financial strength and flexibility of our balance sheet.
The key components of our strategy include:
- Cash flow supported by long-term, fee-for-service contracts with creditworthy counterparties;
- A portfolio of assets diversified by business segment and geography;
- Pipeline and midstream businesses focused on large, proven resources plays;
- Prudent exposure to natural gas liquids margins;
- Power business focused on acquisition and greenfield opportunities in Canada (Ontario and B.C.) and the United States to provide future, stable long-term cash flows; and
- Maintaining our financial strength and flexibility.
The mainstays of our financial strategy are as follows:
- Maintain a prudent capital structure to support our investment grade credit ratings;
- Maintain a sustainable dividend policy underpinned by long-term contracted cash flows;
- Fund maintenance capital and organic expansion capital with operating cash flow, proceeds from our dividend reinvestment plan and prudent debt leverage; and
- Fund major expansion projects and acquisitions with new debt and equity issuances.