Enbridge Inc.

Enbridge said Q2 2026 adjusted EBITDA increased by over $130 million versus Q2 2025, driven by higher spot volumes on Seaway, stronger Mainline and Line 9 volumes, optimization initiatives, a constructive East Tennessee rate case outcome, phased step-up benefits in Texas Eastern, and higher utility base rates in Utah and North Carolina. DCF per share increased, while EPS was slightly down year over year because of higher depreciation from assets placed into service and increased interest expense on higher debt principal. Management reaffirmed full-year 2026 guidance and said the company is on track to achieve it. They also reiterated a $41 billion secured backlog, about $9 billion of capital sanctioned in 2026 so far, and a target of up to $20 billion of new project sanctions in the 2026-2027 period. Quarter-end debt-to-EBITDA was 5.1x, but management said FX-adjusted leverage would have been within its target range.

Greg Ebel framed the quarter as evidence that Enbridge is in a favorable growth phase, with strong demand across liquids, gas transmission, utilities and renewables. He emphasized that the company sees a widening set of opportunities, including Mainline optimization, the Line 5 relocation, Sunrise expansion, Blackcomb, Bay Runner Twin and utility growth, and said Enbridge is well positioned to customize infrastructure solutions for customers. His tone was confident and upbeat, but he repeatedly noted that project timing depends on policy implementation, customer commitments and regulatory execution.

Pat Murray said high utilization across all four businesses drove another strong quarter, and he quantified year-over-year adjusted EBITDA growth at more than $130 million. He linked performance to Seaway, Mainline, Line 9, East Tennessee, Texas Eastern and utility rate cases, while noting that EPS was slightly lower due to depreciation and interest expense. He reaffirmed 2026 guidance, said lower market access contributions in Liquids Pipelines and higher U.S. interest rates are headwinds, and highlighted a strong balance sheet with debt-to-EBITDA at 5.1x at quarter-end. He also said the company returned $38 billion to shareholders over the past five years and expects to return between $40 billion and $45 billion over the next five years.

Analysts pressed for more detail on the Mainline optimization strategy, especially the move to resequence MLO2 into downstream Chicago South market-access segments first. Management said policy changes in Western Canada are positive but still need time to be implemented, and that producers are not yet ready to make binding commitments for larger upstream expansions. Questions also focused on Project Beacon, where management said the open season far exceeded expectations and the project could be expanded in phases, and on leverage, where management said quarter-end FX pushed reported debt-to-EBITDA above target but the underlying metric was within range. Analysts also asked about WCSB condensate supply and Ohio regulatory risk; management said domestic condensate will be insufficient in a growth scenario and that the Ohio rate-case legislation does not appear to be a material threat.