Enbridge Inc.

Q2 adjusted EBITDA increased by over $130 million versus the second quarter of 2025. DCF per share increased, while EPS was slightly down year over year because of higher depreciation from assets placed into service and higher interest expense on more debt principal. Mainline volumes averaged 3.1 million barrels per day in Q2. Leverage ended Q2 at 5.1x debt-to-EBITDA, though Pat Murray said adjusting for FX it would be within the company’s target range. Management reaffirmed 2026 guidance and said the company expects to return between $40 billion and $45 billion to shareholders over the next 5 years. The secured backlog is $41 billion, and Enbridge said it has already sanctioned approximately $9 billion of capital in 2026, with up to $20 billion targeted for 2026-27.

Greg Ebel struck a notably constructive tone, saying the first half of the year showed strong financial performance and set the company up to meet 2026 guidance. He emphasized that Enbridge sees a widening set of opportunities across all four core franchises, supported by LNG, power, data centers, utility growth, and a more supportive policy backdrop. He also framed the company as a flexible capital allocator with multiple ways to serve customers, repeatedly pointing to customized brownfield solutions, operating leverage, and long-duration infrastructure needs.

Pat Murray said Q2 benefited from high utilization, with adjusted EBITDA up over $130 million year over year. He attributed the improvement to stronger liquids volumes, a constructive East Tennessee rate case outcome, a phased step-up from the Texas Eastern settlement, and higher base rates in utilities, partly offset by lower Line 9 tolls. He noted EPS was slightly down because of depreciation and interest expense, but DCF per share improved. On the balance sheet, he said leverage was 5.1x debt-to-EBITDA at quarter-end, but would be within the target range after FX adjustment, and he highlighted continued equity self-funding, a strong balance sheet, and 31 years of dividend increases.

Analysts focused on the shift in the Mainline Expansion/ MLO2 approach, asking whether upstream expansion was being delayed and what changed. Management said the issue was not weak demand or costs but rather policy timing and producer discipline, so Enbridge is resequencing MLO2 toward downstream Chicago South market access first while keeping other Mainline options open. Questions also centered on Project Beacon, the Permian strategy, Southern Lights/condensate, Ohio regulation, leverage, and whether the $20 billion target was mostly gas-related; management said gas will likely be a major share, but liquids, utilities, and renewables all contribute, and they stressed permitting discipline and affordability in Ohio.