Enbridge — Q3 2026 Earnings Summary

Financial Performance

• GAAP earnings attributable to common shareholders for the third quarter of 2026 were $1.3 billion ($0.59 per share), compared to $0.7 billion ($0.30 per share) in 2025.
• Adjusted earnings for the third quarter of 2026 were $1.1 billion ($0.49 per share), compared to $1.0 billion ($0.46 per share) in 2025.
• Adjusted EBITDA for the third quarter of 2026 was $4.4 billion, compared to $4.3 billion in 2025.
• Cash provided by operating activities for the third quarter of 2026 was $2.7 billion, compared to $2.9 billion in 2025.
• Distributable cash flow (DCF) for the third quarter of 2026 was $2.7 billion, compared to $2.6 billion in 2025.
• For the nine months ended September 30, 2026, GAAP earnings were $4.4 billion ($2.00 per share) versus $5.1 billion ($2.34 per share) in 2025; Adjusted EBITDA was $15.0 billion versus $14.7 billion; and DCF was $9.5 billion versus $9.2 billion.
• Liquids Pipelines adjusted EBITDA decreased $101 million year-over-year in Q3 2026, driven by lower Mainline volumes and Market Access contributions, partially offset by favorable foreign exchange translation.
• Gas Transmission adjusted EBITDA increased $165 million year-over-year in Q3 2026, driven by rate settlements, higher allowance for equity during construction, and favorable foreign exchange translation.
• Gas Distribution and Storage adjusted EBITDA increased $105 million year-over-year in Q3 2026, driven by higher base rates in Utah and North Carolina and higher distribution margins in Ontario.
• Renewable Power Generation adjusted EBITDA increased $27 million year-over-year in Q3 2026, driven by contributions from the Sequoia Solar Phase 1.
• The rolling 12-month Debt-to-EBITDA metric at the end of Q3 2026 was 5.1x, slightly above the target range due to foreign exchange translation differences.

Guidance and Future Outlook

• Reaffirmed 2026 full-year financial guidance for adjusted EBITDA between $20.2 billion and $20.8 billion.
• Reaffirmed 2026 full-year financial guidance for DCF per share between $5.70 and $6.10.
• Reaffirmed medium-term outlook for adjusted EBITDA, DCF per share, and EPS average compound annual growth rate of approximately 5%.
• Secured growth backlog stands at $38 billion.
• Target for new project announcements through 2027 is $10–20 billion.
• Annual investment capacity is anticipated to be $10 to $11 billion.
• The company aims to achieve its financial guidance for the 21st consecutive year.

Business Segments and Product Lines

• Liquids Pipelines: Announced the acquisition of Tallgrass Energy LP's crude oil business for US$2.6 billion, adding a Rockies-to-Cushing platform (Pony Express Pipeline and Powder River Gateway system) and the US$0.3 billion Pony Express 2 (PXP2) growth project. Closed the US$0.6 billion acquisition of Salt Creek Midstream's crude oil gathering business in the Permian basin. Sanctioned the $0.2 billion Long Lake Expansion project, expected to enter service in 2028.
• Gas Transmission: Placed the Aspen Point expansion of the B.C. Pipeline and the Tennessee Ridgeline projects into service. Secured a $2.7 billion commitment from KKR and Apollo ($0.7 billion closed, $2.0 billion additional commitment) to support the Aspen Point and Sunrise Expansion Programs on the Westcoast B.C. Pipeline system.
• Gas Distribution and Storage: Entered into a US$0.5 billion agreement to acquire Laramie Energy assets to expand natural gas supply for Enbridge Gas Utah. Filed for new rates in Ohio seeking an annual revenue requirement increase of approximately US$145 million, with new rates expected to be effective March 1, 2027.
• Renewable Power: Construction continues on more than 2 GW of generation capacity; the second phase of Sequoia Solar is expected to enter service by year-end. Total capacity built since 2002 exceeds 8 GW, with 1.5 GW of safe-harbored opportunities under development.

Market and Competitive Landscape

• Energy demand is accelerating due to AI infrastructure, advanced manufacturing, and broader economic growth.
• The company's strategy focuses on energy security, reliability, and affordability, leveraging a diversified asset base and "all-of-the-above" investment approach.
• Strategic focus includes expanding connectivity in the Bakken, Powder River, and Denver-Julesburg basins, as well as deepening presence in the Permian basin.
• Natural gas demand across North America continues to support a robust pipeline of opportunities, underpinned by accelerating electricity and LNG demand.

Risks and Challenges

• Forward-looking statements involve risks including commodity price volatility, exchange rates, inflation, interest rates, and tax laws.
• Risks include potential impacts from government trade policies, tariffs, duties, and economic sanctions.
• Project execution risks include availability and price of labor and construction materials, supply chain stability, and regulatory approvals.
• Operational risks include weather impacts, maintenance of support and regulatory approvals, and potential litigation.
• The Debt-to-EBITDA ratio is sensitive to foreign exchange rates, as seen in the Q3 2026 metric of 5.1x.

Management Commentary and Tone

• CEO Greg Ebel highlighted the company's strong position to serve growing energy demand and deliver predictable, long-term value.
• Management expressed confidence in executing the secured backlog and extending visibility to the 5% growth outlook.
• Greg Ebel announced his retirement in January 2027 and expressed confidence in successor Michele Harradence to lead the company.
• Management emphasized the ability to selectively deploy capital into high-quality assets to enhance the existing footprint and create shareholder value.
• The tone regarding the acquisition strategy was positive, describing the Tallgrass and Salt Creek Midstream transactions as accretive tuck-in acquisitions.

Other Key Points

• Completed a $3.0 billion common equity offering to partially fund the Tallgrass and Salt Creek Midstream acquisitions and enhance financial flexibility.
• Enbridge Gas North Carolina completed a US$500 million medium-term note offering to refinance maturing debt.
• Enbridge Gas Ontario completed a $1.0 billion medium-term note offering to refinance maturing debt.
• Board of Directors declared a quarterly common share dividend of $0.9700 per share, payable December 1, 2026.
• The PXP2 growth project is underpinned by take-or-pay contracts and expected to enter service in late 2027.
• The KKR and Apollo investment in the Westcoast system will result in a 29% ownership stake upon Sunrise entering service in 2028, with Enbridge retaining majority ownership and an option to repurchase the interest between years 7 and 14.