Earnings call transcript: Enbridge Q2 2025 shows earnings beat, stock rises

Enbridge Inc. reported a strong second quarter for 2025, exceeding earnings expectations with an EPS of $0.65 compared to the forecasted $0.58, marking a 12.07% surprise. Revenue also surpassed predictions, reaching $9.7 billion against an anticipated $9.6 billion. Following the announcement, Enbridge’s stock saw a pre-market increase of 0.35%, with shares trading at $45.45. According to InvestingPro data, the company commands a substantial market capitalization of $100 billion, though current valuations suggest the stock may be trading above its Fair Value.

Key Takeaways

• Enbridge reported record second quarter EBITDA, with a 7% year-over-year increase.
• The company sanctioned a $900 million solar project in Texas for Meta.
• Enbridge’s stock rose 0.35% in pre-market trading following the earnings beat.
• Executives expressed confidence in meeting the upper end of EBITDA guidance.

Company Performance

Enbridge demonstrated robust performance in Q2 2025, driven by strong global oil demand and increased energy needs for data centers and AI. The company’s diversified operations across four business units and its strategic investments, such as the Clear Fork solar project, contributed to its positive results. Enbridge’s low-risk commercial frameworks and significant EBITDA from regulated returns or long-term contracts underscore its stable financial position.

Financial Highlights

• Revenue: $9.7 billion, up from the forecasted $9.6 billion
• Earnings per share: $0.65, up 12% year-over-year
• Debt to EBITDA ratio: 4.7x

Earnings vs. Forecast

Enbridge’s EPS of $0.65 exceeded the forecasted $0.58 by 12.07%. This marks a significant earnings surprise, reflecting the company’s effective cost management and strategic growth initiatives. Revenue also beat expectations by $100 million, a 1.04% surprise.

Market Reaction

The market reacted positively to Enbridge’s earnings beat, with the stock price increasing by 0.35% pre-market to $45.45. This movement positions the stock closer to its 52-week high of $47.44, indicating strong investor confidence in the company’s future prospects. InvestingPro analysis shows the stock has demonstrated low price volatility and delivered a strong 28.18% total return over the past year. The company’s financial health score is rated as "FAIR" by InvestingPro analysts, who maintain comprehensive coverage in their Pro Research Report.

Outlook & Guidance

Enbridge remains optimistic about its growth trajectory, expecting a 5% growth through the end of the decade. The company is focused on a $32 billion secured capital program and is evaluating accretive investment opportunities in power generation, with potential projects valued at $4-5 billion. The company’s revenue has shown impressive growth of 43% over the last twelve months, though InvestingPro data indicates its P/E ratio of 23.25x is relatively high compared to its near-term earnings growth prospects.

Executive Commentary

"Our size, diversity, and disciplined capital allocation put us in a great position to deliver predictable returns to shareholders," said CEO Greg Ebel. He also highlighted Enbridge’s strategic position, stating, "We are connected to 100% of Gulf Coast operating LNG export capacity."

Risks and Challenges

• Supply chain disruptions could impact project timelines and costs.
• Regulatory changes may affect pipeline operations and expansion plans.
• Volatility in oil and gas prices could influence revenue streams.
• Competition in the renewable energy sector may pressure margins.
• Environmental concerns and policies could pose operational challenges.

Q&A

During the earnings call, analysts focused on Enbridge’s data center and power generation opportunities. The company discussed potential expansions in gas pipelines and storage, as well as strategies for navigating regulatory environments, such as the Ohio utility rate case. Enbridge emphasized its flexible approach to energy infrastructure and its commitment to sustainable growth.

Full transcript - Enbridge Inc (ENB) Q2 2025:

Rebecca Morley, Vice President of Investor Relations and Insurance, Enbridge Inc.: Good morning, and welcome to the Enbridge Inc. Second quarter twenty twenty five financial results conference call. My name is Rebecca Morley, and I’m the vice president of investor relations and insurance. Joining me this morning are Greg Ebel, president and CEO Pat Murray, executive vice president and chief financial officer, and the heads of each of our business units, Colin Grunding, Liquids Pipelines, Cynthia Hanson, Gas Transmission, Michelle Heritance, Gas Distribution and Storage, and Matthew Ackman, Renewable Power. At this time, all participants are in a listen only mode.

Following the presentation, we will conduct a question and answer session for the investment community. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. Please note this conference is being recorded. As per usual, this call is being webcast, and I encourage those listening on the phone to follow along with the supporting slides.

We’ll try to keep the call to roughly one hour. And in order to answer as many questions as possible, we will be limiting questions to one plus a single follow-up if necessary. We’ll be prioritizing questions from the investment community. So if you are a member of the media, please direct your inquiries to our communications team who will be happy to respond. As always, our Investor Relations team will be available following the call for any follow-up questions.

On to slide two, where I will remind you that we will be referring to forward looking information on today’s presentation and Q and A. By its nature, this information contains forecast assumptions and expectations about future outcomes, which are subject to the risks and uncertainties outlined here and discussed more fully in our public disclosure filings. We’ll also be referring to non GAAP measures summarized below. And with that, I’ll turn it over to Greg Ebel.

Greg Ebel, President and CEO, Enbridge Inc.: Well, thanks very much, Rebecca, and good morning, and thank you all for joining us on the call today. I’m excited to share another strong quarter and highlight the progress we’ve made across all segments of our business. Last quarter, I spoke about the importance of continued dialogue with policymakers and regulators to ensure North American energy independence and security. I’m optimistic about our ongoing conversations and the alignment we’re seeing today on both sides of the border to advance projects and legislation that serve growing energy demand. And Enbridge continues to be in a great position to serve this growing demand with its large incumbent footprint across all four business units.

We’re gonna start today with a midyear check-in on financial performance, execution, and an update on our growth projects. I’ll walk through how Enbridge is effectively navigating trade conflict, legislative change, and geopolitical volatility. I’ll then touch on how Enbridge is capitalizing on rising power demand in North America before providing an update on each of our four core franchises. Pat will then review our financial results and reiterate our capital allocation priorities. And lastly, I’ll close the presentation with a few comments on our first choice value proposition before we open the call for your questions.

We’ve made significant progress on the commitments we laid out for you at the start of the year, and I’m proud of the work the team has done to execute our financial, operational, and growth priorities. We set another record for second quarter EBITDA driven primarily by contributions from the acquired US gas utilities and successful rate settlements in our gas transmission business. Our strong 2025 gives us confidence that we’ll finish the year in the upper end of our EBITDA guidance range, and we are well on track to meet our DCF per share midpoint. The balance sheet is also in great shape. As of June 30, we’re at 4.7 times debt to EBITDA, primarily due to realizing another full quarter of earnings from The US gas utility acquisitions that closed throughout 2024.

Our assets remained highly utilized during the quarter, and the mainline transported 3,000,000 barrels per day. That system has now been in apportionment for six of the first eight months of the year, including July and August. We closed an investment on our West Coast system by a consortium of 38 indigenous groups backed by a loan guarantee provided by the Canadian government. This partnership provides sustained economic benefits to First Nations and is aligned with Enbridge’s continuous goal of recycling capital at attractive valuations for shareholders. We also closed the previously announced acquisition of a 10% interest in the Matterhorn Express Pipeline in the Permian and upsized the Traverse Pipeline project from 1.75 BCF per day to two and a half BCF per day driven by strong customer demand.

As a reminder, the Traverse pipeline is part of the Whistler JV and is designed to transport natural gas between AquaDulce and the Katy area in Texas. Work on our planned liquids mainline optimizations is ongoing, and we’re pleased to announce that our recent 100,000 barrel per day open season on Flanagan South Pipeline was oversubscribed. We expect to reach FID on the first phase of the mainline optimization later this year. On the growth front, we sanctioned the $900,000,000 Clear Fork project in Texas located just outside San Antonio. The project is fully contracted under a long term off take agreement with Meta and will support its data center operations.

Meta represents a new addition to our growing list of AI and data center related customers. In gas transmission, we sanctioned expansions of Texas Eastern and Aiken Creek Gas Storage to serve growing industrial power and LNG demand across North America. Together, these renewable and gas projects highlight the competitive advantage of our all of the above approach and our ability to serve increasing natural gas and power demand through multiple business units, services, and geographies. Now let’s touch on the stability Enbridge continues to offer investors despite the ongoing volatility we are seeing today. The markets have been turbulent thus far in 2025, but the volatility has really showcased Enbridge’s stable business model and the value of our low risk commercial frameworks.

Our size, diversity, and disciplined capital allocation puts us in a great position to deliver predictable returns to shareholders in these conditions. Our exposure to tariffs is negligible across our operations, and importantly, Canadian oil and gas delivered to The US via our systems has not attracted tariffs. Roughly 80% of our EBITDA is generated by assets with revenue inflators or regulatory mechanisms for recovering rising costs, which helps to backstop our ratable and growing dividend and earnings. On the tax policy front, the extension of bonus depreciation provides benefits to Enbridge’s near term growth, and our sanctioned or late stage renewable projects are not expected to be impacted negatively by the One Big Beautiful Bill Act. The second quarter saw continued price volatility across commodity markets driven by geopolitical instability, but Enbridge’s low risk business model protected us from those dynamics with virtually no exposure to commodity prices and over 98% of EBITDA generated by assets with regulated returns or long term take or pay contracts.

Lastly, our footprint puts us in an ideal position to capitalize on growing energy demand in North America and beyond. We are connected to a 100% of Gulf Coast operating LNG export capacity, and our natural gas systems are located within 50 miles of 29 new data centers, 78 coal plants, and 45% of all North American natural gas power generation. Our gas distribution franchise is the largest natural gas utility business in North America, and we deliver reliable natural gas to over 7,000,000 customers every day in geographies with growing gas demand. In the crude market, our incumbency positions us as the leading operator to provide new and expanded egress options for customers, something both producers and policymakers are in fact seeking. And our renewable power business is opportunistically providing power to some of the largest AI and data center players in the world as the demand for energy across North America continues to grow.

And let’s take a couple of minutes to spotlight some of the investments we’re making related to growing power demand. As you can see from this slide, Enbridge has already won and will continue to win power demand related opportunities by deploying our all of the above approach to energy in order to serve blue chip customers across various sectors. During our investor day in March, we shared 4 to $5,000,000,000 of near term power generation opportunities across our gas and renewable businesses that we expected to begin announcing within six months. I’m pleased to say that we’re ahead of schedule with over $1,000,000,000 of recently sanctioned projects between Clear Fork Solar in Texas and the line 31 expansion in Mississippi. In addition, we can now confirm that Texas Eastern Transmission will be interconnected to the Homer City redevelopment generating facility in Pennsylvania.

We are working to commercialize opportunities to support data centers and hyperscalers in the state further adding to our growth backlog. We’ve recently completed milestone projects for solar power backed by PPAs with Amazon and AT and T and continue to advance over $5,000,000,000 of power demand projects serving a combined six gigawatts of new generation. With that being said, we can’t forget about the progress we’re making across various exciting opportunities in our liquids business, which I’ll get into now. Mainline volumes were strong again this quarter, delivering 3,000,000 barrels per day on average for the quarter and 3,100,000 barrels per day for the 2025. At investor day, we announced up to $2,000,000,000 of investment in the mainline through 2028 to support continued high utilization of the system while also extending asset life and reliability.

That investment is now underway, and we will earn attractive returns within the MTS agreement collar of 11 to 14 and a half percent. We also continue to advance mainline optimization phase one. Our full path FSP open season was oversubscribed, and the team is now working towards FID ing the 150,000 barrel per day mainline expansion later this year. Additionally, we launched an open season for the Southern Illinois Connector, which will leverage our existing footprint and our interest in the EPCO pipeline to provide full path optionality for our customers serving additional US Gulf Coast demand. Mainline investments of this nature are permit like, provide attractive economics, and will be sanctioned to meet our customers’ increasing egress requirements.

And lastly, down on the Gulf Coast, our 120,000 barrel per day Gray Oak expansion has partially entered service with full COD expected in mid twenty twenty six. Now let’s turn to gas transmission. We’ve got a number of exciting announcements this quarter spread out across our footprint. In Mississippi, we sanctioned the line 31 expansion of Texas Eastern to serve rising industrial and power demand, all secured under twenty year take or pay agreements with a well known investment grade customer. This project was among the opportunities highlighted at investor day to serve growing gas demand.

On the Gulf Coast, we’ve progressed optimization projects, including a $50,000,000 expansion of SESH to serve the growing power generation needs of a major electric utility that’s there serving data centers as well as an upgrade to the Tres Palajas storage facility in Texas. This storage upgrade is being done to increase injection and withdrawal rates and is part of a larger expansion opportunity we expect to realize later in the decade. In Canadian gas transmission, I’m pleased to announce a 40 BCF expansion of the Aiken Creek storage facility that will support the growing Canadian LNG market. That project will also optimize our other expansions underway on the West Coast system, providing customers with critical flexibility in a rapidly developing region, particularly on the LNG front. Lastly, we are updating our capital investment for wood fiber.

As a reminder, Enbridge has a contract structure that provides us the ability to earn a low double digit return, and we will now set that rate closer to the in service date. We remain excited about the growing LNG market in Western Canada as all of these projects are expected to enter service in the 2027 to ’29 time period, extending and adding visibility to our long term growth outlook. Now let’s move on to our gas distribution business. We remain excited about the long term growth outlook for our utility business and the foundational growth that helps to support the dividend. In Ontario, the phase two rebasing process was completed, setting rates through 2028.

And in Ohio, we received a decision on the rate case filed in 2023. While we didn’t get all that we asked for, I’m encouraged by the almost 10% ROE and increased equity thickness, which remains among the strongest returns within our utility franchise. Of note, existing capital riders are a great and continuing feature, ensuring quick cycle capital returns, which was part of what attracted us to the investment back in 2023. Lastly, we filed for new rates in North Carolina and Utah this quarter and expect we’ll have new rates in those jurisdictions by next year. And now I’ll turn to the renewable power sector.

Enbridge continues to advance its world class renewable portfolio using our financial strength, supply chain reach, and construction expertise under a low risk commercial model that delivers competitive returns. In July, we announced the Clear Fork solar project near San Antonio, Texas, a 600 megawatt facility that will support data center needs. All generation is sold under a long term offtake agreement with Meta Platforms. And importantly, the project is expected to meet all the requirements to fully qualify for renewable tax credits under new US legislation. Also in Texas, we are progressing the 815 megawatts Sequoia solar development.

The project is on track to partially enter service in 2025 with full production coming online in 2026. Also of importance, the one big beautiful bill act is not expected to impact any of our sanctioned projects, but we’ll continue to monitor future developments in this fast moving policy environment. It’s our view that the recent US legislative changes makes our backlog of late stage development projects even more valuable. But now I’ll pass it off to Pat to go over our financial performance.

Pat Murray, Executive Vice President and Chief Financial Officer, Enbridge Inc.: Thanks, Greg, and welcome, everyone. Strong utilization across our asset base has led to another solid quarter. We’re posting record second quarter EBITDA despite continued trade uncertainty and geopolitical events. Compared to the 2024, adjusted EBITDA is up 7%, earnings per share up 12%, while DCF per share is comparable. In our Liquids segment, we saw strong volumes with the mainline transporting 3,000,000 barrels per day, although weaker results at FSP and Spearhead resulted in a slight decrease compared to 2024.

In gas transmission, strong operational performance across our pipes and storage assets in addition to revised rates on U. S. GT assets added to the segment year over year. Our Whistler JV and DBR system acquisitions, in addition to Venice Extension, entering service at the 2024 provided additional contributions. Gas distribution is up relative to last year with the acquisitions of the U.

S. Gas Utilities being the main driver. Higher rates, customers, and storage revenues at Enbridge Gas Ontario, in addition to the colder weather, also contribute to the strong results within the segment. In renewables, we saw lower contributions at our European offshore assets, which were partially offset by stronger wind resources in North America. For DCF per share and EPS, higher financing costs, current taxes and maintenance capital, primarily driven by the US Gas Utilities acquisition, partially offset the higher EBITDA contributions.

The per share metrics are, of course, impacted by the at the market issuances that were completed in the 2024 to prefund The US utility. I’m pleased to reaffirm our 2,025 guidance and growth outlook across all metrics. With our strong performance through the 2025, we’re in a great position to finish the year in the upper end of our guidance range for EBITDA. The resilience of our business model is really on display as we continue to deliver predictable returns through market volatility. The acquisition of a 10% interest in the Matterhorn Express, strong mainline volumes and the strength of The U.

S. CAD exchange rate are all tailwinds to our full year guidance, but are partially offset by higher than expected U. S. Interest rates. We remain confident in our ability to achieve our near term and medium term growth outlooks.

Now let’s touch base on our capital allocation priorities. As you would expect, we continue to be focused on disciplined capital allocation. Our balance sheet provides us with financial strength and flexibility, and our debt to EBITDA has decreased to below the midpoint of our target range over the past few quarters, as expected, following the close of The U. S. Gas utility acquisitions.

We also extended our track record of recycling capital at attractive valuations. The investment by our First Nation partners and a 12.5% stake in the West Coast system, which closed in July, generated cash proceeds of $700,000,000 and demonstrated our ongoing commitment to economic reconciliation and partnership with indigenous communities. One of the keys to our value proposition is to sustainably return capital to shareholders, and we prioritize being in the 60% to 70% range of DCF payout. Our dividend is underpinned by high quality, low risk cash flow growth, and continues to support our dividend aristocrat status. As a reminder, we’ve increased our dividend to shareholders for thirty consecutive years, and we expect to return approximately $40,000,000,000 to $45,000,000,000 over the next five years.

In terms of further growth, we will continue to make disciplined investment decisions and prioritize low multiple brownfield and utility like projects with our nine to ten billion dollars of annual investment capacity. What I especially like about this quarter is that we’ve announced or made significant progress on opportunities in each of our four business units, and those opportunities are spread throughout the end of the decade, adding even more clarity to our growth plans. And with that, I’ll pass it back to Greg for some closing remarks.

Greg Ebel, President and CEO, Enbridge Inc.: Well, thanks very much, Ted. And as you’ve just heard, it’s been another strong showing from all the teams this quarter. Enbridge is ideally positioned to deliver predictable results through virtually all economic conditions and cycles. Our low risk business continues to prove its value to shareholders, evidenced by the consistency of our cash flows and earnings growth. This year marks our thirtieth consecutive annual dividend increase supported by our business model.

We’ve also secured high quality and sustainable growth via our now $32,000,000,000 secured capital program, adding visibility to our expected 5% growth through the end of the decade. We will continue to evaluate accretive tuck ins and tax efficient investment opportunities that fit within our wheelhouse to diligently ensure lasting returns to shareholders. And with that, I’d like to thank you all for listening. And operator, please open the line for questions.

Speaker 3: Thank you. We will now begin the question and answer session. Your first question comes from the line of Jeremy Tonet from JPMorgan. Your line is open.

Speaker 4: Hi, good morning.

Greg Ebel, President and CEO, Enbridge Inc.: Good morning, Jeremy.

Speaker 4: Just wondering if you might be able to frame a little bit more, I guess, opportunities you’re seeing across your footprint as it relates to natural gas expansion to serve incremental power demand and possibly data center demand growth as well. We’ve seen news coming out of Pennsylvania Energy and Innovation Summit, a lot going on in Ohio as well. I think the slides reference other opportunities across your footprint such as in the West. So I was just wondering if you could frame a bit more the opportunity set, where you see it most across the portfolio and I guess timeline to new projects materializing. Do you see this kind of a near term or just kind of steady cadence over time?

Greg Ebel, President and CEO, Enbridge Inc.: Well, Jeremy, maybe I’ll start and then, Cynthia can chime in, too and maybe even yeah. I know not on the gas side, but maybe Matthew too. So it’s really all of the above. Like, we we in the, GDS business the GTM business and our renewable business, I was at the technology and economic summit you were talking about in Pennsylvania. And, obviously, out of that came a press release of a big player using the Texas Eastern system to, support Homer City, in North Carolina and Mississippi and Georgia.

We talked about on this call, Utah. All of those, we’re really starting to see, things come in. I guess the point I would make, there is two elements here. There’s one there, utility element, which I would say is most of where we’re picking up the opportunities, and you heard us talk about line 31 just a few minutes ago as well as Sesh, very much utility based. But there’s a nice smattering of behind the meter type stuff, which is what Homer City would look like.

And then let’s not forget about the renewable side. I know you’re asking about gas. So it’s right across the system. Haven’t seen that much in Canada yet, but I think that’s actually an opportunity that will come too. Cynthia, do you wanna add more from what we had laid out back at the Investor Day?

Cynthia Hanson, Head of Gas Transmission, Enbridge Inc.: Yeah. I’ll just build on on what you said, Greg. So if we look at what we said at Investor Day, we have, just on the gas transmission side, 35 plus opportunities to 11 BCF of gas, about, you know, 4,000,000,000, one to 2,000,000,000 of that in that late stage development. Right now, we have 10 plus specific data center opportunities in that late stage. Of course, we’re located, you know, next to the natural gas generation.

So 45% of all natural gas power generations within 50 miles of our system. And within that area too, that 50 miles, there’s 29 new data centers. And then of course, we still have the opportunities for coal to gas conversions. There’s 78 coal plants in that in that area. That’s about eight eighty gigawatts of current of current power generation.

So what I would say is we’re seeing opportunities across the system in The US in particular, and that’s not to discount the opportunities we have in the natural gas side with along US Gulf Coast to serve LNG. So we still see lots of opportunities there in Canada. We’ve done lots of expansions and as was noted with the storage at Acorn Creek that’s going to serve more LNG opportunities. And last quarter we had announced our Birch Grove expansion too. So we continue to see a lot of opportunities, Jeremy.

Speaker 4: Got it. That’s helpful. Thank you for that. And just want to pivot to wood fiber if you could, if you could provide a little bit more detail on some of the drivers in the higher cost expectations there and as well as maybe just any more detail to share. It seems like you still have the ability to earn a low double digit return, but any any color, incremental on those two points would be helpful.

Thank you.

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. For sure, Jeremy. You know, I’m, and we are never that pleased when we see more capital than we originally planned. However, with wood fiber, as you mentioned, our contract structure does allow us to earn that double digit return on capital as we agree to invest in the project. Fortunately, and through the agreements with departments, we’re now gonna set that toll on the higher capital amount nearer to the projects in in service.

Our partner, which owns 70% of the project, as you probably recall, they they do take capital cost risk, but they get the benefit of selling the LNG commodity. So I think it’s a really good balance of interest there. And I guess my point being, while we’re always really focused on the capital being deployed to the couple of dozen projects we’ve got in execution right across the portfolio, we’re equally focused on the contractual and regulatory structures around that capital to ensure to the extent possible that we can make sure we get the return protected should capital cost change, particularly on multiyear projects. And I really think that combined focus is serving us well on this project. Now with respect to capital cost increases, I wouldn’t it’s not really one thing.

Right? We’ve had some changes in in building codes. Permitting delays, not a new issue for most jurisdictions. We’re adding additional flotilla, so that’s where we house our employees. So that’ll create room for another 900 approximately folks as we get into the heavy builds and then some site conditions.

So all those have really added up to this slide. Again, the key is, as you pointed out, our ability to continue to earn that low double digit return.

Speaker 4: Got it. Thank you.

Greg Ebel, President and CEO, Enbridge Inc.: Thanks, Jeremy.

Speaker 3: Your next question comes from the line of Robert Katsaliev from CIBC Capital Markets. Your line is open.

Speaker 6: Hi, good morning, I was hoping, Greg, you can discuss how you’re seeing energy policy evolving in Canada. And if you could compare the prospects of a new pipeline to Tidewater compared to some of the various incremental expansion opportunities that are available in the industry on the liquids pipeline side.

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. Well, I think as you saw us announce today and you’ve really seen us been going hard at this since January and last fall, our customers at this point in time really wanna go south. Right? That’s the premium market, which we’re able to deliver to both PADD two and PADD three, think the Gulf Coast. And so Colin and his team have really put forward a number of really great incremental projects, and, you know, you can see those in the presentation.

That’s the first move. It’s the most valuable market. It’s the smartest way to do this. And then when that’s done and as our customer production grows, that’s when an opportunity could be created to go to the West Coast. And and there’s lots of discussion with governments on that.

And as you know, Robert, we have been a proponent of such a project in the past and, in fact, invested several $100,000,000 to get there. So the issue isn’t not one of, they’re being a proponent. The issue is one of government policy setting the conditions for that to get investment to occur. Let’s be honest. The government has not done that yet, and it’s not clear they intend to, at least from our perspective.

In particular, there’s still an emissions cap in place for our customers, which really stifles their ability to grow oil production. And then secondly, the West Coast tanker ban remains in place that, frankly, as long as that’s there, would make building a pipeline to the West Coast being a pipeline to nowhere. So and none nothing’s been deemed in the national interest yet either. So lots of us to watch from an industry perspective. We’re very active on that front, but we’re continuing to find ways to serve our customers’ needs by adding that incremental egress that they really want, which really means the Gulf Coast.

So TBD. Meanwhile, as you’re seeing south of the border, a lot of changes, accelerated permitting. We even start to see it in changes to the army corps of engineers and a desire to actually build energy sovereignty and project power. And so, hopefully, that’ll translate up here as the government gets its footing. And in the meantime, we’ll continue to provide counsel and advice to folks like the premier of Alberta who, you know, she continues to work to advance not only the province’s interest, but I actually think Canada’s energy interests and sovereignty via new energy infrastructure.

Speaker 6: That’s a very helpful response. Thank you. And I was just curious how the the Ohio rate case order impacts your strategy on rate cases in general in The U. S. Franchises and obviously Ohio in particular.

Greg Ebel, President and CEO, Enbridge Inc.: Yeah, Michelle’s here. I’ll let her go at that. Obviously regulatory ex piece is something we’re very focused on.

Michelle Heritance, Head of Gas Distribution and Storage, Enbridge Inc.: Sure. So, obviously, we were disappointed in the Ohio rate case, but but, really, it’s turning on a couple of, I’d call it, legal and regulatory issues. As Greg mentioned in his opening remarks, at the end of the day, the fact is we still have really strong ROE amongst the the best that you can have. We saw an increase in our equity thickness. We didn’t have any material denials into what we submitted as appropriate o and m.

All of the capital that we’ve invested is has gone into rate base. We continue to have the strong capital riders that we really like to know Ohio. So it’s still a very strong and productive jurisdiction, but we do have a couple specific issues so that we think there were errors made by the PUC in Ohio, and we filed a rehearing about a week ago a week ago today on that. So we’re we’re confident in the Ohio utility, and we’re certainly confident in its growth as as we was mentioned in an earlier question. Lots of lots of data centers, lots of generation there, so it’s a good, it’s a good utility.

But we are in rate cases in all four of our our major utilities as we mentioned. We’re coming to the tail end in Ontario, and then we would expect to see our results in Utah and North Carolina coming through in the fall. I think the big difference, though, for Utah and North Carolina is their rate cases are a matter of routine. We go every two or three years. So it’s really just a question of updating things, having a discussion about what’s the most appropriate, levels of return without the fifteen year lag that we had in Ohio.

That that really created a lot of complexity in the Ohio rate case. So we’re very confident with North Carolina and Utah. Good relationships there, transparent work. So things are good.

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. So, you know, obviously, if you think back to the acquisition, which, know, we haven’t even had all these closed for a year yet, That’ll come up in September. Very consistent results and expectations. You know, we’re as you know, Rob, we’re quite conservative in the way we look at things. And I would say we’ve probably been imated the growth opportunity there, right across all the utilities and the regulatory, filings and rate cases.

That’s standard what we do across all our businesses. And, you know, sometimes you get what you want, sometimes you don’t, But it the business continues to drive forward.

Speaker 6: Excellent. Thank you.

Speaker 3: Your next question comes from the line of Aaron MacNeil from TD Cowen. Your line is open.

Speaker 8: Hey, good morning all. Thanks for taking my questions. Greg, you mentioned in your prepared remarks, but can you speak to the Cowboy Solar and Seven Stars projects? I guess I’m just trying to get a sense of if your customers are encouraging you to get these types of projects across the line, just given the changing tax credit landscape. And as it relates to other solar projects in your mid stage development bucket, are there any practical limitations that we should be thinking about in terms of your ability to get more across the line?

And then I guess finally, just given the urgency, do you have the room in your annual investment capacity to get more projects like this done?

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. So we I’ll let Matthew kinda jump in here in a second. But one thing I would point out is our customer need is driven not just on the renewable side. Historically, maybe more focused from an ESG perspective. Today, the issue is the need for power, all types of power.

Right? So and you definitely see that in, like, the Metas and the AT and Ts and Amazons. Yeah. Sure. Everybody wants to kinda move forward on the sustainability front, but it’s really that need for power.

So the late stage stuff that we have continue to see, if anything, an increase. Matthew, maybe you can speak to that in request for that power. I think your question, Aaron, if I’m hearing it correctly, really, you know, post the projects we have and that are in late stage, all of which can be done within the new legislative changes in The US. It’s really after that, the next stage called later in the in the decade or the end of the decade and beyond. You know, without the tax incentives, will they be attractive?

I think that’s a TBD, but it doesn’t it doesn’t prevent the projects that we have in the backlog from moving forward. That’s for sure. And if tax incentives aren’t an element of projects on a go forward basis, they’re gonna have to compete just like everything else with capital, and we’ll see what happens macrolays. You could make an argument. What you’ll see is power prices go up, which still allows you to make your returns, but we’ll see what happens at that time.

But do you wanna speak specifically to those two projects, Matthew?

Matthew Ackman, Head of Renewable Power, Enbridge Inc.: Yeah. Sure. Thanks. Thanks. Just to add what to what Greg said, we do have some projects in addition to the ones we’ve announced that are late stage and with a very high probability will continue to qualify for the credits.

And we do see very, very strong customer customer demand from these blue chip type customers like Aemeta, and we’re very pleased to add them to our roster. And these are the types of customers that wanna work with Enbridge, not just in our renewable business, but frankly across our gas businesses. As Greg talked about, it’s it’s really a multiplatform strategy, to satisfy demand for electricity that’s rising rapidly. We do so I think we have visibility to some more of these projects. You mentioned a couple, that should qualify, but the key is to be very disciplined in this environment.

It’s very fluid. There’s still some moving parts. The the bill was relatively favorable on the tax credit front, but there are still some administrative actions that could occur. So we’ll be conservative, and we’ll be opportunistic, but, we’ll stick to our very strong capital discipline in renewables. As Greg said, I think one thing to note on the seven stars that you mentioned, that is actually a Canadian project.

So, I think the policy in Canada is much more stable, and predictable right now. That’s a wind project in Saskatchewan. On cowboy, we’ll see. It’s a late stage project, solar project in Wyoming. And, again, on that one, it’ll have to hit our low risk commercial model, and that’s still evolving, frankly.

So we’ll keep developing those projects, but we’ll be disciplined and low risk in our approach to FID. And, Erin, I

Greg Ebel, President and CEO, Enbridge Inc.: think your last point was on the capital capacity. Yeah. I mean, the projects that Matthew has spoken about and the opportunities that we talked about for renewables, at the Investor Day, very much taken into account in our financial plans, and, they would they even with those projects coming forward, remember, we always have a couple of billion dollars of incremental capacity we could invest. So it’s really not it’s not capacity. It’s more investment quality and return relative to what is a plethora of opportunities across the, the entire business.

Speaker 8: Thanks. That’s a lot of great detail. Maybe just as my follow-up, one point of clarification. You’ve mentioned Homer City a couple of times today. Looks like this project is pretty far along.

Can you just give us a sense of you know, timeline to FID, potential capital requirements, returns in service date, and any potential gating items?

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. Cynthia can chime in here, but, to be blunt, no. Like, I think it is it’s kind of far along from an announcement perspective, but there’s a lot of work here. Right? That’s a four gigawatt plus project towards the end of the decade.

You know, they’re working through getting their gas supply agreements in principle. There’s a lot of pieces in there. So, you know, it could be everything from a straight lateral to an expansion of Texas Eastern. But until the customer actually has determined exactly how it wants to deal with that, all I can tell you is we will get our fair share.

Cynthia Hanson, Head of Gas Transmission, Enbridge Inc.: Yeah. Thanks for that, Greg. I would just add that we are in those discussions. These discussions had started, you know, months ago. It’ll take a little while until we get through that final design and the commitments.

But as Greg said, we will definitely have to need to participate. I would note that Texas Eastern has about 10 BCF per day of underutilized receipt potential in that Marcellus supply region. And so we can do some very economical pipeline expansions, you know, to serve Pennsylvania and Ohio along our existing right of ways. So it’s great, and we have lots of ongoing conversations with developers, power generators, hyperscalers around that area of Pennsylvania and Ohio. So more to come, and we’ll keep you posted.

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. You know, Erin, I I think about this as winning by a lot of singles and maybe the odd double. You know, I think as you would well understand, say, a gigawatt plant takes, say, a 150 a day, gigawatt gas plant, you know, that’s not a massive pipeline. Right? So and you can see that with line 31.

You can see that with with the Stash. With the Stash development. So it’s a lot of incremental pieces built very economically that add up to really nice investments. So sometimes I think people looking for the big splash billion dollar pipeline projects. I think those are gonna be few and far between for individual data centers.

So I think you gotta keep watching these incremental pieces. And, frankly, as investors, I think you should so I’ll do $1,000,000,000 expansions that happened quickly, relatively permanent light, probably not cross state, even though it may involve interstate pipe, all day long versus a big, say, greenfield new billion dollar pipe.

Speaker 8: That’s helpful. Thanks, everyone. I’ll turn it back.

Greg Ebel, President and CEO, Enbridge Inc.: Thanks. Your

Speaker 3: next question comes from the line of Praneeth Satish from Wells Fargo. Your line is open.

Greg Ebel, President and CEO, Enbridge Inc.0: Thanks. Good morning. Maybe I’ll just piggyback off of that question. You’ve talked about obviously a lot of power generation opportunity and things. But so far, the announcements on the gas pipeline side, the pace of announcements has been a bit slower compared to peers.

I mean, you talked about having excess capacity. So maybe that’s one of the reasons why your projects are maybe smaller in size than some of the larger builds that are CapEx projects that we’re seeing. But maybe you could just kind of walk us through the differences here on Texas Eastern versus some of your other competitors? And is it because you have excess capacity? Are you waiting for the right returns?

Are there dependencies tied to, you know, associated utilities? Just trying to get some more color there.

Greg Ebel, President and CEO, Enbridge Inc.: Well, I think it’s a bit of both. And I’m not sure I’d agree with your view that people have actually made more announcements on the other side. I think there’s people talk about stuff, but let’s go down the list. Right? You got a gigawatt and a half billion dollar projects.

And, for TVA, they were proceed with it that’s going ahead. In North Carolina and GDS. There’s a gig 1.4 gigawatts, 600,000,000 plus for a Duke facility in Utah, couple of 100 megawatts plus. In Ontario, we’re still pursuing some of those opportunities and then the stuff that we just announced today. So I’m not sure I’m not sure I’d be on the same page there.

I think some people that’s maybe all they have. And as you know, we’ve got opportunities across multiple businesses on that front. And, I mean, I don’t know, perhaps you could you have that, but I’m not aware of anybody else having signed up Amazon, having signed up Meta, having signed up AT and T on the renewable side. So I think it’s an all of the above opportunity for us, and and I’m a big believer that much of this is actually gonna be done with utilities and the power utilities. And you will know that in neither the case in Mississippi or the SESH project that we announced, which utilities, those are two.

And that’s because they’re not really keen on actually indicating exactly what we’re doing on the data center side. So I think I think, Praneeth, you’ll you’ll find I think if you if you crawl through it, I mean, we can do a better job of communicating that to you, that there’s lots of pieces that we’re knocking off. And I think we’re actually ahead of what we said in terms of announcements from the investor day when we talked about the eighteen month look forward of which we’re now, what, four months since that time frame and more to come.

Greg Ebel, President and CEO, Enbridge Inc.0: Yeah. No. I mean, just to kind of clarify, I think you’re definitely getting a lot of traction certainly on the renewable side and on the utility side. So I’m not saying there is an exposure to the theme, but it was more just on the gas pipeline side because you have a premier footprint there and you’re kind of in the heart of this, especially with Homer City building. Would have thought there would be more, but like you mentioned, maybe it’s TBD and we’ll definitely stay tuned.

Maybe just switching gears for my other question. Mean, mentioned OBBA and the bonus DD and A provisions there that could benefit near term growth. Guess just from a tax perspective, does that lower your cash tax burden in the near term? When do you now expect to be a meaningful cash taxpayer?

Pat Murray, Executive Vice President and Chief Financial Officer, Enbridge Inc.: Yeah. Hi. Thanks for the question. Yeah.

Greg Ebel, President and CEO, Enbridge Inc.1: I think, generally, it’s a very positive outcome from the various tax changes, like, as you said, extension of bonus depreciation, which affects a big portion of our overall business. I think the way to think about it is this further, you know, adds helps to the fact that we’ll now be able to grow per share kind of in line with our EBITDA guidance. The last few years, there’s been a bit of a differential because of the growing cash tax, but this will help to offset that and give us more and more confidence and clarity into that growth into the back part of the decade. So, yeah, we’re excited about it, and we think it can help to grow our our cash flows for our shareholders.

Speaker 8: Thank you.

Speaker 3: Your next question comes from the line of Rob Hope from Scotiabank. Your line is open.

Greg Ebel, President and CEO, Enbridge Inc.2: Good morning, everyone. On the data center theme, can you maybe add a little bit of commentary on how you’re thinking about the contractual frameworks and contractual protections regarding who the counterparty is and how you would potentially alter it, if at all, if it’s a utility customer or a behind the fence customer?

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. Obviously, from a credit perspective, other than and you see this on a renewable side, the Google’s and Meadows and AT and T’s, they’re obviously super credits. And that’s why we’re actually on balancing 75% of the opportunities with utilities who are existing customers today. They’re amazing credits too. So and they like to sign up for long term ten, fifteen, twenty year contracts take or pay.

If it is with a small data center hyperscaler player, I we we look at that really carefully. And, you know, some of those folks would have to probably provide LCs, etcetera. But, you know, that’s why, as I said, I think as this get continues to move forward rapidly, I I’m a strong believer you’re gonna continue to see those utility players there because this isn’t as easy as what people think. And the commitment to sign up for a ten or fifteen or twenty year pipeline contract or renewable contract says the big players will will be there. So from a analytical perspective, with all the data center opportunities out there, the winners here, just like on the pipeline side, will be the big players with scale, and that’s the customers that will largely largely serve.

I and and when I think about it, where the smaller players may have a better opportunity is frankly from our gas utilities where, you know, there’s a much larger scope of customers we have a requirement to serve. But even in some of those cases, depending what happens, they’d have to provide aids to construct, which is, you know, is an element. So I think we’ve got it covered from the big players and on the utility relatively small behind the meter stuff. You’d see that as a typical cost of service structure inside a utility. Super safe for the investor and very fair for the customer.

Greg Ebel, President and CEO, Enbridge Inc.3: Does that give Appreciate that color.

Greg Ebel, President and CEO, Enbridge Inc.2: Yeah. Exactly. And then switching gears here, just regarding the 9,000,000,000 to $10,000,000,000 of investment capacity per year. It is looking like you’re getting towards that range for 26,000,000,000 and $27,000,000,000 based off of the recent wins. How are you thinking about the cadence of when new or the cadence of project announcements and layering further capital in the next couple of years?

Or is now the focus turning towards the kind of, we’ll call it, beyond ’twenty seven timeframe?

Greg Ebel, President and CEO, Enbridge Inc.1: Yeah. I can take that, Rob. Yeah. I think it’s fair to say that in ’twenty five and ’twenty six, we’ve been filling up set pretty well over the last six to twelve months, and I think that should give people more and more clarity into that kind of 2728 growth rate. And I think it’s also fair to say that, you know, you look at the projects that we announced today, know, within service dates around 2829 that we’re now starting to fill in that back piece.

We still probably have a little bit of capacity to take some of the smaller bite sized things, a quick turn capital as we go here. But I think your comment is probably right in that we I think we’ve added a lot of great projects that add that clarity, call it, to the middle of the next half of the decade, and our job is to continue to provide high return projects into the back part. So from a capacity perspective, as I think I said in my remarks, I like the way it’s spread out across our businesses, but also spread out across the the rest of the decade here. So feeling very good as we get more transparency into that.

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. I’d I’d say our our business development team is very much focused on the back half of the decade, and have been. Right? So that’s about extending, the growth, which, you know, we’ve got a lot of confidence in that post ’26 period. And then as Pat says, most of what we talked about today will be very little capital in the next twelve months.

And the stuff that does have capital, like on the GDS side of things, in some cases, you’ll start to earn on it before it even goes into service. But, otherwise, it’ll actually generate EBITDA within, say, the twelve months, which, of course, then creates capacity. Right?

Greg Ebel, President and CEO, Enbridge Inc.4: Thank you. Thanks.

Speaker 3: Your next question comes from the line of Ben Pham from BMO. Your line is open.

Greg Ebel, President and CEO, Enbridge Inc.3: Hi, thanks. Good morning. Just want to go to your backlog and returns? And as I look at some of these projects you sanctioned the last couple of years, you mentioned Woodfiber low double digit returns, T North, T South, percent returns. When I look at that and I look at the new projects you’re announcing today, much better returns, is it is the trend then for Enbridge capital allocation increasingly shifting more these higher return projects that,

Speaker 8: you know, you talked about

Greg Ebel, President and CEO, Enbridge Inc.3: the singles high returns that as we look up the next twelve months, that average return is gonna start moving higher in that secured backlog?

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. Absolutely. I think you put a finger on the great tension inside the company. Lots of opportunities, but only those those projects and those jurisdictions that provide better returns, I e lower build multiples are gonna get serviced. Right?

So I would tell you right now, that’s a challenge to do more in a place like British Columbia or even Ontario relative to Ohio or or, say, Texas. So, you know, we wanna keep our builds, you know, in that six to eight times, and then and then Colin has tons of stuff that is even on the bottom end, if not the below that six to eight times, so very competitive. And then, of course, Michelle has higher multiples but quicker cycle. And so, yeah, it’s a you you should see, and this is very much our focus, steady, and it’s a big boat to move or a big denominator to move, increase in return on capital employed as we move up the chain in value added investments. You you hit it right on.

It’s it’s actually a really nice environment as capital allocators to be able to pick and choose the best returns so we can keep those steady and stay stable and growing earnings that you all expect from us.

Speaker 6: Okay. Got it.

Greg Ebel, President and CEO, Enbridge Inc.3: Maybe switching to the storage side, you have the Aiken expansion. Can you confirm, is there more white space beyond the 40 Bcf a day? And then what’s the strategy on The U. S. Storage assets?

Is it more recontract or is there opportunity to expand as well?

Greg Ebel, President and CEO, Enbridge Inc.: Well, Cynthia, do you want to speak to that?

Cynthia Hanson, Head of Gas Transmission, Enbridge Inc.: Sure. So this 40 Bcf Aiken Creek is the most accessible. There would be other opportunities, but it would be not as accessible as this 40 BCF. This was part of what we knew in the acquisition that it would be as an easier stage step to get through. As it comes to other opportunities on the Gulf Coast, we continue to look at that.

We had some open seasons for storage expansions that we launched in May, and we’ve gotten some really good interest. So we’re looking at developing our salt caverns there along The US Gulf Coast. Of course, we expanded Trace Cavern 4 that just got into service beginning of the year. We also, as Greg noted, are continuing to the structure there, but we’re looking at whether with the open season interest, we’ll be expanding more at Trace, Egan, and Moss. There’s a lot of, obviously, opportunities in that area and the continued expansions and and LNG growth just provides some really good opportunities that we’re excited about right now.

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. Sometimes I think it’s under you know, we’ve got 600 bees out of storage across North America. Don’t forget, you know, Cynthia’s got great elements here, and the contracting has moved out a little longer and higher. You know, all that stuff sort of more three to five year type contracts, but at a higher rates than what we’ve seen for, say, the last five years. That’s kinda changed in the last eighteen months.

And don’t forget at GDS, we have a 100 or so BCF of storage that is unregulated. And is all the needs that come in on the power projects we’re talking about, LNG, not so much on data center, but LNG, etcetera, that makes that storage all the more valuable. Right? So it’s a good time for storage on the Gulf Coast and the Great Lakes regions and obviously in Western Canada where Aitken really is the only player in BC as LNG comes on.

Greg Ebel, President and CEO, Enbridge Inc.5: Okay. Thanks for update.

Pat Murray, Executive Vice President and Chief Financial Officer, Enbridge Inc.: Thanks.

Speaker 3: Your next question comes from the line of Sam Berwold from Jefferies. Your line is open.

Speaker 8: Hey, good morning guys. Thanks for squeezing me in. This has been hit on a little bit from some other angles, but just wanted to ask what’s your appetite for greenfield gas pipeline in Canada? There’s a pending LNG project that needs a pipe and likely someone to develop it. So would that be of any interest to you if you got assurances similar to what you said you would need to underwrite a larger pipe on the crude side?

Greg Ebel, President and CEO, Enbridge Inc.: Well, I’ll let Cynthia speak to it, but I think there’s no doubt. Seems like gas pipelines in Western Canada or across Canada seem to have a not not easy, but an easier road than, say, liquids lines. And as you know, I think we’ve set ourselves up to do that. The West Coast system is fabulous. Indigenous participation in the West Coast system is fabulous setup.

No guarantee that that gets you consent, but very helpful in aligning interest. But, Cynthia?

Cynthia Hanson, Head of Gas Transmission, Enbridge Inc.: Yeah. We still have the Pacific Trails pipeline project. Our p two p project would serve, you know, onto the West Coast. So there’s future opportunities there. We’ll continue to maintain that.

It’s fully certified. Of course, you know, that would require a new large scale LNG facility in the region to proceed. But we are obviously very supportive and continue to look at opportunities. Opportunities. It would, as Greg noted, have to hunt in our overall capital allocation, but it is something, of course, with our West Coast system and that knowledge and experience.

And now with our our recent move to improve our indigenous relationships in BC, I think we’re well positioned to support that.

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. I think the situation is it’s gonna any greenfield pipe in Canada is gonna gonna have to have better returns in the West Coast system because, you know, the West Coast system is great and been there. It’s a cost of service type structure, but you’re not taking on the risk you would with a with a greenfield project. So that that that would be the determining factor. And as we’ve talked about throughout the call, we’re not exactly opportunity poor.

Speaker 8: Okay. Understood. Thanks very much, guys.

Greg Ebel, President and CEO, Enbridge Inc.: Thanks.

Speaker 3: Your next question comes from the line of Manav Gupta from UBS. Your line is open.

Greg Ebel, President and CEO, Enbridge Inc.6: Good morning, guys. Congrats on a very strong quarter and I think it’s not appreciated enough, but you probably indicated that you’re coming in towards the top end of the guidance. So given your track record, we actually think you might beat it, but we keep our estimates within that range. My question to you is a little bit on the Southern Illinois Connector open season. Looks like a very exciting project.

Can you talk a little bit more about this project and how this what what the path forward for this project is?

Greg Ebel, President and CEO, Enbridge Inc.: I think the guy that runs the liquids business is here. He usually gets the first question, so I’m glad he gets probably the last one.

Greg Ebel, President and CEO, Enbridge Inc.7: Yeah. Good morning. Good morning, Manav. And we’re we’re excited about building out the the plumbing in North America here to serve some long term pretty sticky demand. And so maybe unlike m l o one, Southern Illinois Connector is is more of a a recontracting play.

So it’s it’s it’s kind of a it’s not new egress over the Canadian US border, but but think of it as long hauling existing barrels on the system even further to serve some Louisiana refineries, you know, adding to that, you know, 75% of refineries served on the continent. So just adds another market to to the network and in an efficient way, right, using using existing pipes and and in this case, you know, partnering with existing JV partner. So process on that one is the open season will will go into August, and we’ll we’ll we’ll we’ll look to roll some contracts on on the Spearhead pipeline and and add further long term sticky paths to the mainline. So that’s it’s exciting, and we’re looking for more of those type of projects here to to complement the the low multiple build out and egress ads for customers.

Greg Ebel, President and CEO, Enbridge Inc.6: Perfect, guys. On top of that, so I’ll turn it over. Thank you so much.

Greg Ebel, President and CEO, Enbridge Inc.: Thank you. Thanks, Moe.

Speaker 3: Your next question comes from the line of Keith Stanley from Wolfe Research. Your line is open.

Greg Ebel, President and CEO, Enbridge Inc.0: Hi, good morning. Curious what the remaining gating items are on the Mainline expansion from this point? And are you expecting based on discussions that returns on this are going to be carved out separately from the CTS?

Greg Ebel, President and CEO, Enbridge Inc.7: Yeah. So as as mentioned in the prepared remarks, we’re we’re we’re looking at and tracking for an FID later this year. The the primary gating item has has has been achieved, which is the open season on the Southern part of the path, Flanagan South, and that was oversubscribed. So lots of interest in in long term demand to The US Gulf Coast. The other gating item is working with with the traditional counterparties within cap, if you like, or industry on on base kind of rolling in the, like, the mainline capital into the rate base.

And there’s many precedents for that historically. We’ve expanded the mainline, you know, countless times over the years, and we’re we’re confident we’ll, come to agreement with industry on that. And so it would fit within, CTS or in rate bay or MTS or in rate base. And when when we roll, you know, the subsequent tranche of of mainline agreement beyond its expiry in 2028, that capital would be, you know, duly considered in in the rate base of the mainline going forward. So we’d earn of and on the capital in the mainline as well.

So two parts to that project, kind of the mainline and then Flanagan South and and Seaway to The Gulf, and we’ve got many precedents for doing this historically. So there’s some, you know, a little bit of gating there, but a well treaded path historically to do such.

Greg Ebel, President and CEO, Enbridge Inc.0: Okay. Thanks. Thanks for that. Second question, there’s there’s a few different project proposals now to bring Permian gas to other markets away from the Gulf Coast. So I’m curious what you see as the next steps for your JV with Whitewater.

Can you extend the value chain into Louisiana? Do you look more at storage? What other opportunities do you see in that JV with Whitewater the next few years?

Cynthia Hanson, Head of Gas Transmission, Enbridge Inc.: Yeah. Thanks, Keith. You know, we’re really pleased with how our investment in and our joint venture with Whitewater has gone. There has been obviously some upside since the original one. We continue to have expansion projects.

You know, with Traverse, we just upsized that. We still see a lot of gas that would flow or want to flow to serve the the LNG markets. And so we think that there’s further expansion opportunities there. I know Whitewater just announced with a similar project yesterday that they’ve upsized Pelican. So we’re still seeing a lot of interest in that area.

The traverse pipeline as was noted provides more interconnectivity to allow that bidirectional flow between Agua Dolce and Katy hub. So that does create that tie. It does tie you know, what we loved about that those assets is it does tie to our existing footprint, that header system that we have with Techco and, of course, Traceable Ashes storage. So, yes, we would look at all opportunities to expand to to move those volumes, and we continue to see a lot of opportunities on a go forward basis.

Greg Ebel, President and CEO, Enbridge Inc.: And we we could do something on our

Cynthia Hanson, Head of Gas Transmission, Enbridge Inc.: own too. We could.

Greg Ebel, President and CEO, Enbridge Inc.: So it’s not just whitewater. It’s obviously, you know, be customer driven and, you know, do we think we have a better mousetrap than maybe the JV? Although, as Cynthia says, we’ve been really pleased with the the way that’s operated together. So, yeah, I mean, anything’s on the table there. And as you know, as GORs go up in the region, the demand for that gas continues to rise.

And, you know, I as as Cynthia just said, I think it’s you witnessed that in going from a b and three quarters to two and a quarter on the Traverse pipeline. So the opportunity is there, and we’ll either use the JV or we’ll figure out something on our own.

Speaker 6: Thank you.

Speaker 3: Your next question comes from the line of Maurice Choi from RBC Capital Markets. Your line is open.

Greg Ebel, President and CEO, Enbridge Inc.4: Thanks and good morning everyone. I’ll just stick with one question, but it’s more of a wholesome question about relationships of customers rather than delivering individual assets. If you continue to hear more record spending on AI, you know, how broad of a cooperation discussion did you have with Meta in terms of supporting their needs beyond Clearfork? And maybe even AT and T and Amazon since you touched on them earlier, recognizing that Enbridge certainly has the assets, expertise, and relationships across all energy forms?

Greg Ebel, President and CEO, Enbridge Inc.: Well, you know, maybe I’ll start, and and Matthew can chime in here. It’s that that’s actually a really great question because, you know, I would say early days, you know, you’re almost dealing with supply chain people where they see it as a a source of something they need, I e power or the case of gas, to run their operation. I think as time goes off, we’re moving up the chain in who we’re dealing with at these corporations because of the real strategic nature of energy, which we all know, but it’s not you know, that’s not something maybe the tech world or data centers were kinda thinking through in the same way that we have. So making sure we understand their long term interest, what they’re trying to do, the scalability has has caused it to move up as opposed to just be a supply chain issue. Yeah.

Matthew Ackman, Head of Renewable Power, Enbridge Inc.: I totally agree, Maurice. Thanks for the question. That’s exactly how we think of it. And, you know, we’re in the early innings of a major trend in energy that we can capitalize on across several of our business units. Renewable can be a little bit of a nexus, for for that initially.

And if you saw the quote from Meta, in our Clearfork announcement was that they were thrilled to be working with Enbridge, and we’re very pleased to be working with them. And it just goes to show that, you know, they’re signaling they wanna definitely do more, and there’s lots of conversations with these types of customers that are ongoing. And so we see those being more the types of customers we can do business with across all of our platforms.

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. And and and size matters. Right? The old Russian accent that quantity has a quality all of its own. People wanna work with big players.

So, you know, Meta doesn’t wanna wanna work with a small cap energy provider. They wanna work with a major, player and someone who’s in 40 plus states and, you know, multiple countries and and all the provinces, if you will, if you think in a North American context. So that is really mattering in a big way. And I think as you see further projects FID ed and Matthew’s World and and, both on GDS and, GTM. You’ll see these players come to the fore either through a utility, but they wanna know how are they ultimately getting that infrastructure served, and can they rely on the energy?

And and that’s what we provide.

Greg Ebel, President and CEO, Enbridge Inc.4: No. That’s very good to hear. Thank you very much.

Greg Ebel, President and CEO, Enbridge Inc.: Thank you.

Speaker 3: Your next question comes from the line of Theresa Chen from Barclays. Your line is open.

Greg Ebel, President and CEO, Enbridge Inc.5: Thank you for squeezing me in. I just had a follow-up on the Ohio utility. Related to the impairment of this asset, can you talk about what led to this considering that it was only recently acquired? And when we take this into account as well as the rate case decision that’s currently being appealed, longer term, does this change your view on the trajectory of growth or on the margin change the amount of CapEx you would allocate between the utilities?

Michelle Heritance, Head of Gas Distribution and Storage, Enbridge Inc.: I’ll get things started and Pat can add if he wants to, Teresa. But the impairment the primary impairment associated with the Ohio utility, it was to do with the treatment of the pension asset, which was quite a significant asset that was in there. And and they were determined those pension assets were determined to be excluded from the calculation of rate base. The the position we had actually put forward was to have them excluded from rate base, so that’s not inconsistent with what we were looking for. We’re just asking for a rehearing with regard to how they treated the accumulated deferred income tax on that pension and where they they put that in for the purposes of calculating revenue reduction.

So it’s something we expected was going to happen. And that that’s the majority of the the write off of the regulatory asset that we recorded. And then there’s a smaller amount associated with the annual incentive plan. And in that case, again, we’re we’re applying for rehearing on that point and primarily with regard to the what we believe is retroactive rate making where they’ve gone and disallowed it from anything that was put in attributable to that piece previously. But, Pat, I don’t know if there’s anything else you’d like

Greg Ebel, President and CEO, Enbridge Inc.5: to add.

Greg Ebel, President and CEO, Enbridge Inc.1: I think you covered the kind of the genesis of the write off. Well, I think your second question on let’s just change our capital allocation. No. I mean, I think Greg hit it quite quite clearly that it’s still a very good return, almost 10%. We actually got a higher equity thickness coming through that.

We have the main maintenance of the of the capital riders, which are important in this asset. And so I think it’s still a very positive framework to to work with for a regulatory perspective. So I think you could see us go back for hearings a little more often than they would have done historically. As you know, there was this first hearing in, like, fifteen years. So I think you’ll see some of that from a from a rate strategy perspective.

But at at the end of the day, not at all unexpected as a result of the rate case.

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. And I I wouldn’t I don’t think it has anything what to do with the fundamentals of the business, your comment about a write off so soon after the acquisition. Like, frankly, we think they’ve erred in law. In fact, they may be where they’re going violates actually some federal pension laws, but we’ll take we’ll take that up with them. And if we’re right, you’re gonna see this reverse down the road.

So, that’s the way we kinda think about it.

Michelle Heritance, Head of Gas Distribution and Storage, Enbridge Inc.: Yeah. The only thing I’d pass on is a lot of those pension assets actually went with Dominion. So remember, this is a rate case that was filed by Dominion in 2023. Dominion continues to carry the obligation with regard to the pensions with for all the retired employees. And because it had been fifteen years, that had really grown to quite a large piece.

That’s with Dominion. We’ve just got the current employees going forward. So all of that needs to be updated with the regulator, and our plan is to file for another rate case here likely by the end of this year just to bring all those numbers. These are these numbers date back to ’23. They date it back to pre acquisition, so there’s a lot that needs to be updated with the regulator too.

Greg Ebel, President and CEO, Enbridge Inc.5: Thank you for the detailed answer and we look forward to the next chapters of this development.

Greg Ebel, President and CEO, Enbridge Inc.: Thanks.

Speaker 3: Your final question comes from the line of Patrick Kenny from National Bank Financial. Your line is open.

Greg Ebel, President and CEO, Enbridge Inc.8: Thank you. Good morning. Just back on the preference here of customers continuing to push more and more barrels to the Gulf Coast. Just wondering if we can get a quick update on Ingleside, how throughput has been trending on a year over year basis and where things are at with respect to potentially sanctioning some of the optimization and dock expansion opportunities?

Greg Ebel, President and CEO, Enbridge Inc.7: Hey, Pat. It’s Colin. Up until the right, I think, is the the summation to your answer. So we steadily are growing volumes through the terminal. As we’ve talked to you about its advantaged.

We’ve got some more storage coming online. I would also, yeah, point you to some longer term kind of bigger upsides and and adding docks and stuff. We’ve done all the dredging, as you know, historically, and continue to add add barrels to it. We’re adding a fungible service, which is incremental to the historic business model, which has been just, you know, dedicated term storage. So that’s incremental as well.

So I think all the the whole menu of services and variety of of smaller, you know, optimizations and tweaks. And then later on as as the Permian Basin grows, we can we can add docks. I can confirm that we have connected the the adjacent Flint Dock over and are able to load there too and optimize windows to get, you know, the smaller vessels there and the bigger vessels, VLCCs at the Legacy Dock. So plan is on track and and more to come.

Greg Ebel, President and CEO, Enbridge Inc.: It’s interesting that we all often focus on domestic demand and things like that, but global oil demand is really, really strong. And, obviously, that’s a that’s a a great setup for Ingleside on a go forward basis as well, regardless if you see some Permian weakness later in the year.

Greg Ebel, President and CEO, Enbridge Inc.8: And maybe as a quick follow-up there on your point, Greg. I know you’ve been previously looking at NGL export opportunities as well at Ingleside. But I guess in light of Asian buyers perhaps looking to diversify their petrochemical supply, curious if you might be looking to pivot opportunistically at other sites across North America, including Canada’s West Coast here, especially as LNG exports continue to ramp up over time?

Greg Ebel, President and CEO, Enbridge Inc.7: Yeah. You know, I’d I’d say the the strategy still is to kind of copy paste all the advantages from crude export at that terminal to other commodities at that terminal. So still NGL and potentially, you know, clean ammonia over time as well here. So that that remains the playbook. We got lots of land.

Greg Ebel, President and CEO, Enbridge Inc.: Yeah. You better move us, you know, as opposed to doing it in Canada. Think if we copy paste to a different location, probably somewhere else along the Gulf Coast, and you’ve heard us ruminate about that from time to time. And, yeah, that that’ll come to fruition over time a little further out, though.

Greg Ebel, President and CEO, Enbridge Inc.8: Okay. That’s great. Appreciate it. Thank you.

Greg Ebel, President and CEO, Enbridge Inc.: Thank you. And

Speaker 3: that concludes our question and answer session. I will now turn the call back over to Rebecca Morley for some final closing remarks.

Rebecca Morley, Vice President of Investor Relations and Insurance, Enbridge Inc.: Great. Thank you. And we appreciate your ongoing interest in Enbridge. As always, our Investor Relations team is available following the call for any additional questions that you may have. Once again, thanks, and have a great day.

Speaker 3: This concludes today’s conference call. Thank you for your participation. You may now disconnect.

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