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DATE
Fri, Nov. 6, 2026
CALL PARTICIPANTS
- Vice President of Investor Relations and Insurance – Marlon Samuel
- President and CEO – Gregory Lorne Ebel
- EVP and Chief Financial Officer – Patrick Robert Murray
- Liquid Pipelines – Colin Kenneth Gruending
- Gas Transmission – Matthew Akman
- Gas Distribution and Storage – Michele Harradence
- Renewable Power – Allen Capps
TAKEAWAYS
- Adjusted EBITDA — $4.4 billion, reflecting a $167 million increase driven by strong utilization and rate case settlements in Gas Transmission and Gas Distribution.
- Distributable Cash Flow — $2.7 billion, representing a $123 million increase due to higher EBITDA and reduced maintenance capital spending.
- Liquids Pipelines Adjusted EBITDA — $2.2 billion, representing a $101 million decrease caused by lower tolls on Line 9 and reduced throughput on the Flanagan South pipeline.
- Gas Transmission Adjusted EBITDA — $1.4 billion, increasing $165 million due to rate settlements on Texas Eastern and East Tennessee assets.
- Gas Distribution and Storage Adjusted EBITDA — $665 million, growing $105 million reflecting higher rates in Utah and North Carolina.
- Renewable Power Generation Adjusted EBITDA — $127 million, up $27 million following the commencement of the first phase of Sequoia Solar.
- Tallgrass Energy Acquisition — US$2.6 billion, expanding the liquids footprint into the Rockies region with a 75% interest in the Pony Express Pipeline.
- Salt Creek Midstream Acquisition — US$0.6 billion, establishing a wellhead-to-water export service in the Delaware Basin.
- Laramie Energy Acquisition — US$0.5 billion, increasing natural gas supply assets for utility customers in Utah under a cost-of-service framework.
- Common Equity Offering — $3 billion, providing funding for recent acquisitions and maintaining the targeted leverage profile.
- Secured Growth Backlog — $38 billion, supported by approximately $10 billion to $11 billion in annual growth capital investment capacity.
- Long Lake Expansion — $200 million, sanctioned to support oil sands operations in Northern Alberta with a targeted 2028 in-service date.
- Debt-to-EBITDA Ratio — 5.1 times, slightly exceeding the target range due to foreign exchange rate fluctuations at the end of the quarter.
- Blackcomb Pipeline Capacity — 2.5 billion cubic feet per day, entering service during the quarter to transport gas out of the Permian Basin.
- Bayrunner Pipeline Capacity — 2.6 billion cubic feet per day, achieving mechanical completion to transport gas to the Rio Grande LNG facility.
- GAAP Earnings Per Share — $0.59, increasing from $0.30 in the previous year primarily due to non-cash changes in derivative values.
- Adjusted Earnings Per Share — $0.49, compared to $0.46 in the prior year quarter, reflecting improved operating performance across core business segments.
- Future Shareholder Returns — $40 billion to $45 billion, projected in dividends over the next five years following $39 billion returned in the previous five-year period.
- 2026 Adjusted EBITDA Guidance — $20.2 billion to $20.8 billion, representing the company’s objective to achieve its targets for the 21st consecutive year.
- 2026 DCF Per Share Guidance — $5.70 to $6.10, reflecting management’s confidence in the underlying performance of the diversified asset base.
- KKR and Apollo Partnership — $2.7 billion, representing the total commitment to fund capital expenditures for the B.C. Pipeline expansion programs.
- Maintenance Capital — $231 million, decreasing from $303 million in the previous year due to enterprise-wide saving initiatives.
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RISKS
- Murray stated, “The decrease in Liquids Pipelines results reflects impacts similar to the first 2 quarters, with lower tolls on the Line 9 deliveries and reduced throughput on the Flanagan South pipeline due to high PADD II utilization and market pricing dynamics,” acknowledging persistent headwinds in the liquids segment.
SUMMARY
Enbridge Inc. (ENB -2.54%) reported an increase in adjusted earnings and reaffirmed its full-year financial targets during its third-quarter call. Management reported that President and Chief Executive Officer Gregory Ebel will retire on Dec. 31 and be succeeded by Michele Harradence on Jan. 1. The company completed a $3 billion common equity offering to fund US$3.2 billion in acquisitions across the Permian and Rockies regions, strengthening its integrated crude oil and natural gas infrastructure. Strategic initiatives highlighted during the call included the closing of a $2.7 billion capital recycling partnership with KKR and Apollo to support expansions of the B.C. Pipeline system, providing further financial flexibility to fund the company’s $38 billion secured growth backlog.
- Gregory Lorne Ebel stated, “In the spring of 2024, we expressed a strong view that supply growth out of Western Canada would reach 1 million barrels by 2035,” indicating that this prediction may now be too low.
- The company is securing long-term contracts with hyperscalers and blue-chip customers to meet rising power demand, including 1.4 gigawatts of generation capacity currently under construction for Meta.
- Management noted that the Woodfibre LNG project remains on track for first gas in 2027 following the completion of the pipeline tunnel breakthrough and ongoing drilling at the site.
- Michele Harradence stated, “We believe in the future of the energy that our customers produce and demand, whether it is natural gas liquids, or renewable energy, and we will keep doing that,” while emphasizing the role of natural gas in providing affordable energy.
- A settlement in the Enbridge Gas Ohio rate case was filed for approval during the quarter, which includes increases to revenue requirements and the rate base to support system modernization.
- Negotiations for the West Coast toll settlement on the B.C. Pipeline system are well advanced, with an agreement and regulatory approval expected in early 2027.
- Management indicated that the macro backdrop remains constructive for energy infrastructure due to population growth, manufacturing investment, and the increasing global importance of North American resources.
INDUSTRY GLOSSARY
- Bcf/d: Billion cubic feet per day, a common unit of measure for natural gas flow rates.
- DCF: Distributable Cash Flow, a non-GAAP financial measure used to assess the company’s ability to pay dividends.
- EBITDA: Earnings Before Interest, Income Taxes, and Depreciation and Amortization.
- GAAP: Generally Accepted Accounting Principles.
- GW: Gigawatts, a unit of power equal to 1 billion watts.
- LNG: Liquefied Natural Gas, natural gas that has been cooled to a liquid state for easier shipping and storage.
- PADD II: Petroleum Administration for Defense District 2, a U.S. region including
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
