Enbridge Q2 Earnings Call Highlights

Enbridge Q2 Earnings Call Highlights

Key Points Enbridge reaffirmed its full-year guidance after a solid second quarter, with adjusted EBITDA up more than CAD 130 million year over year and distributable cash flow per share higher. Earnings per share declined slightly due to increased depreciation and interest expense. The company is expanding its growth pipeline, having sanctioned about CAD 9 billion of projects in 2026 and targeting up to CAD 20 billion in new projects during 2026–2027. Key developments include Mainline capacity expansions, the Wisconsin Line 5 relocation, LNG-related gas infrastructure and the Sunrise BC Pipeline expansion. Enbridge reported quarter-end debt-to-EBITDA of 5.1 times, slightly above its target range because of foreign-exchange effects, while maintaining plans to return CAD 40 billion to CAD 45 billion to shareholders over the next five years after 31 consecutive years of dividend increases.

Enbridge NYSE: ENB said it completed the first half of 2026 with a solid second quarter, supported by high utilization across its four business units, and reaffirmed its full-year guidance. The company also outlined a growing project pipeline spanning liquids transportation, natural gas transmission, gas utilities and renewable power. President and CEO Greg Ebel said second-quarter Mainline volumes averaged 3.1 million barrels per day. The company began commissioning the Blackcomb Pipeline during the quarter and expects the project to enter service by year-end. Enbridge also placed the Enbridge Houston Oil Terminal into service, sanctioned the Wisconsin Line 5 relocation project and signed an option agreement to acquire the TTC Connector pipeline serving Freeport LNG.

“We are well on track to secure up to CAD 20 billion in new projects in the 2026-2027 timeframe,” Ebel said. The company has sanctioned approximately CAD 9 billion of capital so far in 2026 and cited a CAD 50 billion organic-growth opportunity set through 2030.

Financial performance and capital outlook

Chief Financial Officer Pat Murray said adjusted EBITDA increased by more than CAD 130 million from the second quarter of 2025. Higher Seaway Pipeline spot volumes, stronger Mainline and Line 9 volumes, and optimization initiatives supported Liquids Pipelines results, partly offset by lower Line 9 tolls.

In Gas Transmission, EBITDA benefited from a rate-case outcome at East Tennessee and a phased increase under a previously announced Texas Eastern rate settlement. Gas Distribution results were helped by higher base rates following rate cases at Enbridge Gas Utah and Enbridge Gas North Carolina. Distributable cash flow per share increased with the operating performance and lower maintenance capital, Murray said. Earnings per share declined slightly year over year, however, due to higher depreciation from assets entering service and increased interest expense tied to higher debt principal.

Enbridge exited the second quarter with debt-to-EBITDA of 5.1 times. Murray said the measure was affected by the quarter-end Canadian-U.S. exchange rate, and would have been within the company’s 4.5-to-5-times target range after adjusting for the foreign-exchange impact. The company’s CAD 41 billion secured capital backlog provides a growth runway through the decade, according to Murray. He said Enbridge expects to return between CAD 40 billion and CAD 45 billion to shareholders over the next five years, following CAD 38 billion returned over the past five years.