Enbridge Inc.

Enbridge said Q2 2026 adjusted EBITDA increased over $130 million versus Q2 2025, driven by higher volumes in Liquids, a constructive rate case outcome at East Tennessee and a Texas Eastern rate step-up in Gas Transmission, and higher base rates in Gas Distribution. DCF per share increased, supported by those operating results and lower maintenance capital, while EPS was slightly down year over year due to higher depreciation from assets placed into service and higher interest expense on more debt principal. The company said Q2 Mainline volumes averaged 3.1 million barrels per day. Enbridge reaffirmed its 2026 guidance, noted it ended Q2 at 5.1x debt to EBITDA, and said FX-adjusted leverage would have been within its target range. It also reiterated a $41 billion secured capital backlog, about $50 billion of organic growth capital opportunities through 2030, and a target of up to $20 billion of new projects in the 2026-2027 time frame.

Greg Ebel framed the quarter as proof that Enbridge is entering a new growth phase, with demand from LNG, power, data centers and oil sands supporting a broad set of opportunities across all four franchises. His tone was confident and upbeat, emphasizing that Enbridge’s scale, incumbency and brownfield execution should support better project economics and build multiples. He repeatedly highlighted optionality and said the company can customize solutions as policy and customer plans evolve, especially in the Mainline/WCSB system and in U.S. gas markets.

Pat Murray emphasized strong operating performance across all four businesses despite geopolitical tensions and commodity volatility. He cited adjusted EBITDA growth of over $130 million year over year, EPS slightly down due to depreciation and interest expense, and stronger DCF per share helped by lower maintenance capital. He said leverage ended the quarter at 5.1x debt/EBITDA, but FX-adjusted leverage would have been within target, and he reiterated that Enbridge will continue to self-fund growth while maintaining a strong balance sheet. He also pointed to $38 billion returned to shareholders over the past five years and a plan to return between $40 billion and $45 billion over the next five years.

Analysts focused on the shifting shape of MLO2, asking why upstream Mainline expansion appears delayed and whether Enbridge would expand downstream or split the project into phases. Management said the change reflects policy timing and producer discipline, and that Enbridge is resequencing MLO2 to start with Chicago South market-access segments while keeping other Mainline options available. Questions also centered on Project Beacon, with management saying the open season exceeded expectations and that a larger, later phase may be pursued, though permitting remains the key hurdle. Other questions covered Permian gas, renewables, leverage through 2027, and Ohio regulation; management stressed strong demand, more opportunities than the current backlog can absorb, and no material threat from the Ohio utility-rate-freeze legislation.