Enbridge Reports Strong Second Quarter 2024 Financial Results and Business Performance, Advances Strategic Priorities and Recasts Financial Outlook to include U.S. Gas Utilities Acquisitions

Press Release

CALGARY, AB, Aug. 2, 2024 – Enbridge Inc. (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) today reported second quarter 2024 financial results, recast its 2024 financial guidance and provided a quarterly business update.

Highlights

(All financial figures are unaudited and in Canadian dollars unless otherwise noted. * identifies non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices.)

Recast 2024 full year financial outlook to include contributions from the U.S. Gas Utilities acquisitions announced on September 5, 2023 (the “Acquisitions”) and the associated financing (previously excluded). The full year adjusted earnings before interest, income taxes and depreciation and amortization (EBITDA)* guidance range has increased to $17.7 billion to $18.3 billion and distributable cash flow (DCF)* per share is unchanged at $5.40 to $5.80 despite the impact of our fully funding the Acquisitions prior to closing and benefiting from full year EBITDA contributions
Second quarter GAAP earnings of $1.8 billion or $0.86 per common share, compared with GAAP earnings of $1.8 billion or $0.91 per common share in 2023
Adjusted earnings* of $1.2 billion or $0.58 per common share*, compared with $1.4 billion or $0.68 per common share in 2023
Adjusted EBITDA of $4.3 billion, an increase of 8%, compared with $4.0 billion in 2023
Cash provided by operating activities of $2.8 billion, compared with $3.4 billion in 2023
Distributable cash flow of $2.9 billion, an increase of 3%, compared with $2.8 billion in 2023
Re-affirmed the Company’s growth outlook announced at Enbridge Day on March 6, 2024
Closed the acquisition of Questar Gas Company and Wexpro (together “Questar” and conducting business as “Enbridge Gas Utah”) from Dominion Energy Inc. on May 31, 2024 for a purchase price of US$4.3 billion (including US$1.3 billion of assumed debt)
Completed the Acquisitions funding and terminated the Company’s at-the-market (ATM) equity issuance program; returning to an equity self-funded model
Announced Final Investment Decision (FID) of Blackcomb Pipeline, an up to 2.5 Bcf/d natural gas pipeline which will provide transportation service from Rankin, Texas to the Agua Dulce area in South Texas providing much needed export capacity for Permian shippers
Reached a negotiated settlement with customers on Texas Eastern Transmission to ensure appropriate cost recovery by increasing rates effective October 1, 2024
Sanctioned Orange Grove solar farm (130 MW) northwest of Corpus Christi, Texas, for ~US$250 million, backed by a long-term power purchase agreement with AT&T for 100% of capacity
Sanctioned a 120 kbpd expansion of Gray Oak Pipeline following a successful open season
Exited the quarter with Debt-to-EBITDA of 4.7x; Enbridge expects annualized EBITDA contributions from the US$14 billion of Acquisitions in 2024 to strengthen Enbridge’s Debt-to-EBITDA position

CEO COMMENT

Greg Ebel, President and CEO commented the following:

“During the quarter, we made significant progress on our strategic priorities. We completed the acquisition of Questar and filed a settlement with the Public Staff for the North Carolina Utilities Commission giving us a clear path to closing the acquisition of PSNC in Q3. In addition, we completed all the remaining financing for the Acquisitions and discontinued the company’s at-the-market equity issuance program. As such, we are recasting our 2024 financial outlook to include contributions from the acquired assets. I’m proud of our team’s commitment to execution and look forward to working with our new team members and customers.

“The scale and connectivity of our business is extending growth opportunities across our four business franchises. Enbridge is a one-stop shop for a wide range of customers and partners. Deep relationships, strategic incumbency and proven ability to deliver makes us a first-choice partner. A great example of this is the Seven Stars Energy project, which brought Enbridge and Indigenous communities together to develop a 200 MW wind farm in Saskatchewan. This was the result of our Liquids and Renewable Power teams partnering to strengthen existing relationships and create new opportunities.

“The need for reliable and affordable energy drove high utilization across all of our systems during the quarter. Customer demand and operational reliability of our assets helped generate record second quarter EBITDA.

“In Liquids, Mainline demand remained strong, and the system was in apportionment throughout the second quarter. Volumes averaged 3.1 mmbpd and we are advancing discussions with customers for further egress out of Western Canada. In the Permian, we sanctioned an expansion of the Gray Oak pipeline to accommodate growing demand for crude exports at our Ingleside facility. The terminal remains highly utilized, setting new daily and quarterly delivery records as global demand for North American energy products continues to grow.

“In Gas Transmission, we closed the 19% acquisition in an integrated Permian natural gas pipeline and storage JV (the “Whistler Parent JV”), which is immediately accretive and directly connected to our existing infrastructure at Agua Dulce. This investment is already yielding additional growth opportunities through the announced FID of Blackcomb Pipeline which is expected to provide much needed egress for Permian natural gas shippers in 2026. On Texas Eastern, we’ve reached a negotiated settlement with shippers ensuring we earn a reasonable return on our rate base investments as we continue delivering safe and reliable energy.

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