Enbridge Q1 Earnings Call Highlights

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Enbridge (NYSE:ENB) reaffirmed its 2026 financial guidance and medium-term growth outlook after what management described as a strong first quarter, supported by high utilization across its liquids, gas transmission, gas distribution and renewables businesses.

President and CEO Greg Ebel said the company remained within its target leverage range of 4.5 times to 5 times debt-to-EBITDA and continued to execute on a large capital program. He said Enbridge recorded “record Q1 Mainline volumes” and saw numerous peak delivery days across its U.S. gas transmission and distribution systems.

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“The 1st quarter was a strong start to the year, reflecting solid financial performance and continued execution across our businesses,” Ebel said. He added that Enbridge reaffirmed both its 2026 guidance and its medium-term outlook.

Financial Results and Guidance

Chief Financial Officer Pat Murray said first-quarter adjusted EBITDA was consistent with the prior-year period, while distributable cash flow per share rose by CAD 0.03. Earnings per share declined by about CAD 0.05 year over year.

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Murray said the liquids business saw lower year-over-year results, reflecting the absence of a litigation settlement, lower contributions from market access pipelines and lower Line 9 tolls. Gas Transmission benefited from favorable contracting on U.S. assets and strong storage results. Gas Distribution increased due to recent rate cases in Utah and North Carolina, as well as rate escalators in Ontario.

Renewables results were lower than a year earlier because of the absence of investment tax credits related to the Fox Squirrel Solar project, partially offset by stronger international wind resources. Murray also said a CAD 0.07 decrease in average CAD-to-U.S. foreign exchange rates affected all four business units, lowering EBITDA in 2026, though this was partially offset by hedging gains in eliminations and other.

Enbridge said it remains on track to achieve the midpoints of its 2026 guidance ranges for EBITDA and distributable cash flow per share. The company also reaffirmed its outlook for approximately 5% average annual growth in EBITDA, DCF per share and EPS through the end of the decade.

Liquids Pipelines See Record Volumes

Enbridge’s Liquids Pipelines segment recorded Mainline volumes of 3.2 million barrels per day in the quarter. The company is advancing Mainline Optimization Phase 2, which is expected to add 250,000 barrels per day of incremental Western Canadian Sedimentary Basin egress capacity by the end of 2028.

To support that expansion, Enbridge launched binding open seasons for 200,000 barrels per day of incremental Flanagan South Pipeline capacity and 50,000 barrels per day on the Southern Access Extension pipeline. It also completed a successful open season on the Spearhead Pipeline, recontracting volumes into the next decade.

Along the Gulf Coast, Enbridge completed its seventh tank storage expansion at Ingleside, increasing storage capacity to approximately 20 million barrels. It also brought the 120,000-barrel-per-day Gray Oak expansion into service, bringing operating capacity on that system above 1 million barrels per day.

During the question-and-answer portion, Colin Gruending, head of Liquids Pipelines, said Enbridge has seen increased inbound interest for incremental export capacity at Ingleside in recent months. “It showed up strongly in April, May, and June,” Gruending said, adding that the company expects more business there on what he called a capital-efficient basis.

Gas Transmission and Storage Projects Advance

Ebel said Enbridge is advancing more than CAD 10 billion of near-term growth opportunities in Gas Transmission, with several projects reaching final investment decision during the quarter.

The company sanctioned an expansion at Tres Palacios that will add 25 billion cubic feet of natural gas storage along the Gulf Coast. The project is expected to cost CAD 400 million and enter service in stages from 2028 through 2030. Enbridge also sanctioned an expansion of its 60%-owned Vector Pipeline for just over CAD 100 million, adding 400 million cubic feet per day of westbound capacity to serve local utility demand, with an expected in-service date in 2028.

Matthew Akman, head of Gas Transmission, said Enbridge now has almost 50 billion cubic feet of storage expansion underway on the Gulf Coast, as well as 40 billion cubic feet under construction at Aitken Creek in Canada. He said the value of storage is rising as the U.S. gas market becomes more “peaky.”

In Canada, Enbridge received required approvals for the CAD 4 billion Sunrise expansion, with construction expected to begin by early summer. The company also cited progress at WoodFibre LNG, where delivery of the liquefaction module marked another execution milestone.

Gas Distribution and Renewables Growth

In Gas Distribution, Enbridge sanctioned approximately 8 billion cubic feet of unregulated natural gas storage expansion at the Dawn Hub in Ontario, with an in-service date of 2029. The company also discussed its Ohio rate case, filed Dec. 31, 2025, with new rates expected to take effect in 2027.

Michele Harradence, head of Gas Distribution and Storage, said the Ohio filing reflects material changes since the prior rate case, including higher interest rates and investments tied to existing rider programs.

Enbridge said it expects its utilities to grow rate base by 5% annually through 2029. Ebel said Ontario growth is slowing, but the company can redirect capital to U.S. utilities, where growth could exceed an 8% compound annual rate through 2029.

In Renewables, Enbridge sanctioned Cone, a 300-megawatt onshore wind project in Texas backed by its partnership with Meta. Ebel said Enbridge expects to invest $700 million in the project, with service targeted by the end of 2027. The partnership with Meta now totals more than 1 gigawatt of generation capacity across Clear Fork, Easter and Cone.

Allen Capps, head of Power, said Meta’s goal of powering its operations with renewables supports further opportunities. “We really are excited about the relationship,” Capps said, adding that Enbridge has built trust with Meta that could support future projects.

Capital Allocation and Outlook

Murray said Enbridge’s capital allocation strategy remains unchanged, supported by equity self-funding and regulated and predictable cash flows. The company has a CAD 40 billion secured capital backlog extending through 2033 and expects to return CAD 40 billion to CAD 45 billion to shareholders over the next five years.

Management also discussed a broader opportunity set of approximately CAD 50 billion in unsanctioned projects. Murray said Enbridge expects CAD 10 billion to CAD 20 billion of projects to reach final investment decision over the next roughly two years, drawn from that broader opportunity set.

Ebel said energy infrastructure is experiencing the strongest growth backdrop he has seen in 10 to 15 years, driven by energy security needs, LNG demand, power growth and export opportunities. He said Enbridge’s diversified platform positions it to respond across liquids, natural gas transmission, gas distribution and power.

“We are in a world with an amazing growth macro for energy infrastructure,” Ebel said.

About Enbridge (NYSE:ENB)

Enbridge Inc is a Calgary, Alberta–based energy infrastructure company that develops, owns and operates a diversified portfolio of energy transportation, distribution and generation assets. Its core activities include the operation of crude oil and liquids pipelines, natural gas transmission and distribution systems, and energy storage facilities. In addition to midstream transportation and storage, Enbridge has expanded into renewable power generation and energy transition projects, including wind, solar and utility-scale generation assets.

The company serves customers primarily in Canada and the United States and has interests in other international energy projects.

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