Enbridge Reports Record Second Quarter EBITDA, Reaffirms 2025 Financial Guidance and Announces Investments To Serve Growing Industrial, Power and LNG Demand
CALGARY, AB, Aug. 1, 2025 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX:ENB) (NYSE:ENB) today reported second quarter 2025 financial results, reaffirmed its 2025 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.)
Second quarter GAAP earnings attributable to common shareholders of $2.2 billion or $1.00 per common share, compared with GAAP earnings attributable to common shareholders of $1.8 billion or $0.86 per common share in 2024
Adjusted earnings* of $1.4 billion or $0.65 per common share*, compared with $1.2 billion or $0.58 per common share in 2024
Adjusted earnings before interest, income taxes and depreciation and amortization (EBITDA)* of $4.6 billion, an increase of 7%, compared with $4.3 billion in 2024
Cash provided by operating activities of $3.2 billion, compared with $2.8 billion in 2024
Distributable cash flow (DCF)* of $2.9 billion compared with the same amount in 2024
Reaffirmed 2025 full year financial guidance and multi-year financial outlook
Sanctioned the Clear Fork Solar project, a 600 MW, US$0.9 billion development supporting Meta's data center power needs under a long-term offtake agreement
Sanctioned a US$0.1 billion Line 31 expansion of Texas Eastern Transmission to serve growing industrial and power demand
Closed the acquisition of a 10% interest in the Matterhorn Express Pipeline (MXP)
Upsized the Traverse Pipeline from 1.75 to 2.5 Bcf/d, driven by strong market demand, providing bidirectional service between Katy and Agua Dulce in the U.S. Gulf Coast
Sanctioned a $0.3 billion, 40 Bcf expansion of the Aitken Creek gas storage facility, providing critical flexibility in the western Canadian LNG value chain
Closed the 12.5% equity investment in the Westcoast natural gas pipeline system by the Stonlasec8 Indigenous Alliance, a consortium of First Nations groups, for proceeds of $0.7 billion
Exited the quarter with Debt-to-EBITDA* of 4.7x, providing significant financial flexibility
CEO COMMENTGreg Ebel, President and CEO commented the following:
"Our all-of-the-above approach to energy investment continues to surface value for shareholders. We are capitalizing on growing power demand and strong natural gas fundamentals. Today we sanctioned projects in GTM that will serve rising natural gas demand. This was on top of our recently announced 600 MW Clear Fork solar project in Texas that will support Meta's data center operations. Looking forward, our backlog is now over $30 billion across all four businesses, highlighting the advantage of Enbridge's scale and diversification. We remain excited about our suite of opportunities in natural gas, liquids, and power infrastructure, and are well set up to win in multiple ways as we deliver energy to our customers across North America.
"High utilization across all our systems and low-risk commercial frameworks continue to drive predictable results despite geopolitical and macroeconomic volatility. We deliver steady, dependable returns and continue to grow through optimizing our existing assets, disciplined project selection and leveraging scale where others can't. This is what allows us to succeed in all market cycles and the second quarter was no different. Enbridge reported record Q2 EBITDA and we expect to finish the year in the upper end of that guidance range. In addition, we're well on track to meet the mid-point of our per share metrics in 2025 and achieve financial guidance for the 20th consecutive year.
"In Liquids, Mainline volumes averaged 3.0 mmbpd for the second quarter, with the system apportioned for six of eight months this year, including July and August. We concluded an oversubscribed Flanagan South Pipeline open season during the quarter bringing us another step closer to sanctioning Mainline Optimization Phase 1 later this year. We also launched the Southern Illinois Connector open season which will leverage Enbridge and its partner's existing infrastructure, allowing customers expanded access to Nederland and providing additional end-market optionality. In the Permian, we completed the first 80 kbpd phase of the Gray Oak Pipeline expansion and expect to complete the remaining 40 kbpd by mid-2026. Overall, the Liquids earnings for the second quarter again underline the breadth and depth of the business that continually delivers for our customers and investors.
"In U.S. Gas Transmission, we sanctioned an expansion of Texas Eastern Transmission for up to 160 mmcf/d which will support rising industrial and power demand in Mississippi. Alongside our partners, we upsized the previously sanctioned Traverse Pipeline from 1.75 bcf/d to 2.5 bcf/d to accommodate strong customer demand. On the U.S. Gulf Coast, we continue to optimize existing assets through low-capital compression projects at highly attractive multiples on both the Southeast Supply Header Pipeline and Tres Palacios gas storage.
"In British Columbia, Aitken Creek is the only underground natural gas storage facility in the province, and we're proceeding with a 40 bcf expansion which will provide enhanced flexibility for our LNG related customers. In addition, we completed our 12.5% equity interest investment transaction with Stonlasec8 Indigenous Alliance on the Westcoast System in British Columbia, delivering sustained economic benefit to Indigenous communities and continuing our track record of recycling capital at attractive valuations.
"In Gas Distribution, we reached a settlement on rebasing Phase II in Ontario and the Public Utilities Commission of Ohio issued its decision on Enbridge Gas Ohio's rate case. Both outcomes are in line with our guidance. We have two more rate cases underway in Utah and North Carolina and expect that we'll reach fair settlements in those jurisdictions with new rates effective for 2026.
"In Renewable Power, we recently sanctioned the US$0.9 billion Clear Fork Solar project which we expect to enter service in 2027 and is fully backed by a long-term offtake agreement with Meta. This project demonstrates the growing demand for renewable power from blue chip companies across North America. Looking ahead, we don't currently expect the changes to renewable tax credits enacted in the One Big Beautiful Bill Act to impact Clear Fork or any of our other late-stage development projects.
"We're laser focused on disciplined capital allocation. Since the acquisition of three natural gas utilities in 2024, our leverage has improved and now sits at 4.7x, below the midpoint of the Company's target range. Our strong balance sheet, in combination with $9 to $10 billion of annual investment capacity, provides Enbridge the flexibility to execute on our $32 billion backlog and to continue to pursue the longer term $50 billion opportunity set we laid out earlier this year. Visible growth plans underpin annual expected dividend increases and positions Enbridge as a first-choice investment opportunity."
FINANCIAL RESULTS SUMMARY
Financial results for the three and six months ended June 30, 2025 and 2024 are summarized in the table below:
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
(Unaudited; millions of Canadian dollars, except per share amounts; number of shares in millions)
GAAP Earnings attributable to common shareholders
2,177
1,848
4,438
3,267
GAAP Earnings per common share
1.00
0.86
2.04
1.53
Cash provided by operating activities
3,238
2,814
6,291
5,965
Adjusted EBITDA1
4,644
4,335
10,472
9,289
Adjusted Earnings1
1,418
1,248
3,660
3,203
Adjusted Earnings per common share1
0.65
0.58
1.68
1.50
Distributable Cash Flow1
2,903
2,858
6,680
6,321
Weighted average common shares outstanding
2,180
2,137
2,180
2,131
1
Non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices.
GAAP earnings attributable to common shareholders for the second quarter of 2025 increased by $0.3 billion, or $0.14 per share, compared with the same period in 2024. This increase was primarily due to non-cash, unrealized changes in the value of derivative financial instruments used to manage foreign exchange, interest rate and commodity price risks, partially offset by the absence in 2025 of a gain on sale from the disposition of interests in Alliance Pipeline and Aux Sable and an impairment of rate-regulated assets in Enbridge Gas Ohio. In addition, the quarterly operating performance factors discussed below contributed to higher earnings, compared to the second quarter of 2024.
The period-over-period comparability of GAAP earnings attributable to common shareholders is impacted by certain unusual, infrequent or other non-operating factors which are noted in the reconciliation schedule included in Appendix A of this news release. Refer to the Company's Management's Discussion & Analysis for Q2 2025 filed in conjunction with the quarter-end financial statements for a detailed discussion of GAAP financial results.
Adjusted EBITDA in the second quarter of 2025 increased by $0.3 billion compared with the same period in 2024. This was due primarily to contributions from the U.S. natural gas utility acquisitions (the Acquisitions), rate settlements and favorable contracting on U.S. Gas Transmission assets, and colder weather and higher distribution margin from increases in rates and customer base at Enbridge Gas Ontario. These factors were partially offset by lower volumes within the Liquid Pipelines Gulf Coast and Mid-Continent segment.
Adjusted earnings in the second quarter of 2025 increased by $0.2 billion, or $0.07 per share, compared with the same period in 2024, due to EBITDA factors discussed above and lower income tax expense mainly driven by higher investment tax credits, partially offset by higher financing costs and depreciation expense from the Acquisitions and capital investments.
DCF for the second quarter of 2025 was comparable with the same period in 2024, primarily due to EBITDA factors discussed above, offset by higher financing costs, maintenance capital expenditures related to new assets, and higher current taxes on higher earnings.
Per share metrics in 2025, relative to 2024, are impacted by the at-the-market (ATM) issuances of common shares in the second quarter of 2024 as part of the pre-funding plan for the Acquisitions.
Detailed financial information and analysis can be found below under Second Quarter 2025 Financial Results.
FINANCIAL OUTLOOK
The Company reaffirms its 2025 financial guidance for adjusted EBITDA between $19.4 billion and $20.0 billion and DCF per share between $5.50 and $5.90.
The Company also reaffirms its financial outlook presented at its Investor Day on March 4, 2025;
2023 to 2026 near-term growth of 7-9% for adjusted EBITDA, 4-6% for adjusted earnings per share (EPS) and approximately 3% for DCF per share; and
Post 2026; adjusted EBITDA, EPS and DCF per share are all expected to grow by approximately 5% annually.
Enbridge does not expect tariffs to have a material impact on our current operations or deployment of capital, though the Company will continue to monitor developments.
FINANCING UPDATE
In June 2025, Enbridge Gas Ohio issued US$0.5 billion of senior notes consisting of US$250 million of 10-year notes and US$250 million of 30-year notes. Proceeds from these offerings were used to refinance maturing debt at Enbridge Gas Ohio.
In June 2025, Enbridge issued US$2.25 billion of medium term notes consisting of US$400 million of 3-year notes, US$600 million of 5-year notes, US$900 million of 10-year notes, and US$350 million of 30-year notes. Proceeds from these offerings were used to pay down existing indebtedness, fund capital expenditures, and for general corporate purposes.
The Company's rolling 12 month Debt-to-EBITDA metric at the end of the quarter was 4.7x.
SECURED GROWTH PROJECT EXECUTION UPDATE
Enbridge added approximately $2 billion of projects to its secured growth backlog this quarter:
Clear Fork Solar; US$0.9B
North Aitken Creek expansion; $0.3B
Line 31 expansion of Texas Eastern Transmission; US$0.1B
Woodfibre LNG costs have been updated, along with the commercial terms to set the preferred return closer to the completion of construction, resulting in an update to Enbridge's share of the expected capital costs to be US$2.9 billion. The secured growth backlog now sits at approximately $32 billion. Financing of the secured growth program is expected to be provided entirely through the Company's anticipated $9-10 billion of annual growth capital investment capacity.
SECOND QUARTER BUSINESS UPDATES
Liquids Pipelines: Southern Illinois Connector Open Season
Enbridge has launched an open season for long-term contracted service on the proposed Southern Illinois Connector Pipeline, leveraging existing infrastructure on ETCOP (Energy Transfer Crude Oil Pipeline), to provide customers additional end-market optionality to Nederland, Texas.
The open season has been extended to August 8, 2025 based on customer feedback.
Gas Transmission: North Aitken Creek Expansion
Enbridge has sanctioned a 40 Bcf expansion of the Aitken Creek gas storage facility to support growing west coast LNG export demand. The storage expansion involves additional onsite wells, compression and facility modernization, to enhance existing withdrawal capacity and throughput. The development has been substantially de-risked under 10-year storage contracts at the facility, with capacity dedicated to ensuring availability for growing LNG demand across the west coast. Enbridge expects the project to cost approximately $0.3 billion and enter service in 2028.
Gas Transmission: Line 31 Expansion
Enbridge has sanctioned an up to 160 mmcf/d expansion of Texas Eastern Transmission Line 31, including a new lateral connection in Mississippi. The additional capacity will serve growing industrial and power demand in the region under long-term take-or-pay arrangements. Enbridge expects the project to cost approximately US$0.1 billion and enter service in 2028.
Gas Transmission: Permian and Gulf Coast Franchise Strategic Updates
On June 16, 2025, Enbridge closed the previously announced acquisition of a 10% interest in MXP, a leading natural gas infrastructure asset providing 2.5 bcf/d of Permian egress to the Katy area in the U.S. Gulf Coast region. In addition, the Company has announced the upsizing of the Traverse Pipeline from 1.75 Bcf/d to 2.5 Bcf/d, which provides bidirectional service between Agua Dulce and Katy area in Texas. The expanded scope was prompted by strong market demand and customer feedback, and enhances egress optionality across the U.S. Gulf Coast. The pipeline is expected to enter service in 2027.
Enbridge has advanced an expansion on the Southeast Supply Header Pipeline and secured a binding commitment from a southern utility to support growing industrial and data center demand in the U.S. southeast. In addition, the Company has also approved enhancements of the Tres Palacios gas storage facility to support future expansion opportunities.
Gas Transmission: Woodfibre LNG Commercial Update
Enbridge's share of the capital costs has been updated to US$2.9 billion and the preferred return is expected to be set closer to the completion of construction, de-risking Enbridge's return on capital. The project is underpinned by 15-year offtake agreements with BP Gas Marketing Limited for 100% of capacity.
Gas Transmission: Westcoast Pipeline Indigenous Investment
On July 2, 2025, Enbridge closed the previously announced transaction of a 12.5% equity interest investment in the Westcoast natural gas pipeline system by the Stonlasec8 Indigenous Alliance Limited Partnership, a group of 38 First Nations in B.C., for total proceeds of $0.7 billion. The transaction included a $400 million loan guarantee from the Canada Development Investment Corporation, marking a significant milestone in the advancement of Indigenous involvement and ownership within Canada's energy infrastructure.
Gas Distribution: Enbridge Gas Ohio Rate Case
On June 26, 2025, the Public Utilities Commission of Ohio issued an order on the Enbridge Gas Ohio base rate case. The order maintains a strong return on equity of 9.8%, an increase to the equity thickness to 51.9%, and protects existing riders that allow for efficient capital returns. In July 2025, Enbridge Gas Ohio filed an application for rehearing regarding certain aspects of the order and continues to assess legal options.
Renewable Power: Clear Fork Solar
On July 22, 2025, Enbridge announced it has sanctioned the Clear Fork Solar project, which is expected to generate approximately 600 MW of renewable power and will be located near San Antonio, Texas. Clear Fork Solar is expected to cost approximately US$0.9 billion and enter service in 2027. All generation is secured under a long-term offtake agreement with Meta Platforms, Inc.
SECOND QUARTER 2025 FINANCIAL RESULTS
GAAP Segment EBITDA and Cash Flow from Operations
Three months endedJune 30,
Six months ended June 30,
2025
2024
2025
2024
(unaudited; millions of Canadian dollars)
Liquids Pipelines
2,331
2,450
4,924
4,854
Gas Transmission
1,442
2,095
2,915
3,360
Gas Distribution and Storage
510
567
2,110
1,332
Renewable Power Generation
109
138
332
395
Eliminations and Other
1,167
(155)
1,207
(797)
EBITDA1
5,559
5,095
11,488
9,144
Earnings attributable to common shareholders
2,177
1,848
4,438
3,267
Cash provided by operating activities
3,238
2,814
6,291
5,965
1
Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices.
For purposes of evaluating performance, the Company makes adjustments to GAAP reported earnings, segment EBITDA and cash flow provided by operating activities for unusual, infrequent or other non-operating factors, which allow management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
Adjusted EBITDA By Segment
Adjusted EBITDA generated from U.S. dollar denominated businesses was translated to Canadian dollars at a higher average exchange rate (C$1.38/US$) in the second quarter of 2025 when compared with the same quarter in 2024 (C$1.37/US$). A significant portion of U.S. dollar earnings are hedged under the Company's enterprise-wide financial risk management program. The hedge settlements are reported within Eliminations and Other.
Liquids Pipelines
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
(unaudited; millions of Canadian dollars)
Mainline System
1,304
1,317
2,753
2,655
Regional Oil Sands System
245
243
493
470
Gulf Coast and Mid-Continent Systems1
348
436
733
863
Other Systems2
439
460
978
928
Adjusted EBITDA3
2,336
2,456
4,957
4,916
1
Consists of Flanagan South Pipeline, Seaway Pipeline, Gray Oak Pipeline, Cactus II Pipeline, Enbridge Ingleside Energy Center, and others.
2
Other consists of Southern Lights Pipeline, Express-Platte System, Bakken System, and others.
3
Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices.
Liquids Pipelines adjusted EBITDA decreased $120 million compared with the second quarter of 2024, primarily related to:
lower contributions from the Gulf Coast and Mid-Continent System due to lower volumes on the Flanagan South Pipeline and Spearhead Pipeline; and
lower contributions from the Bakken System due to lower volumes; partially offset by
the favorable effect of translating U.S. dollar earnings at a higher average exchange rate in 2025 compared to the same period in 2024.
Gas Transmission
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
(unaudited; millions of Canadian dollars)
U.S. Gas Transmission
1,098
891
2,269
1,840
Canadian Gas Transmission
150
98
317
294
Other1
136
93
237
222
Adjusted EBITDA2
1,384
1,082
2,823
2,356
1
Other consists of Tomorrow RNG, Gulf Offshore assets, our investment in DCP Midstream, and others.
2
Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices.
Gas Transmission adjusted EBITDA increased $302 million compared with the second quarter of 2024, primarily related to:
favorable contracting and successful rate case settlements on our U.S. Gas Transmission assets;
contributions from the acquisitions of an interest in the Whistler Parent JV in the second quarter of 2024 and the Delaware Basin Residue Pipeline in the fourth quarter of 2024;
higher volumes at the BC Pipeline and stronger utilization at the Aitken Creek Storage facility due to strong demand;
contributions from the Venice Extension project which entered service in the fourth quarter of 2024; and
the favorable effect of translating U.S. dollar earnings at a higher average exchange rate in 2025 compared to the same period in 2024.
Gas Distribution and Storage
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
(unaudited; millions of Canadian dollars)
Enbridge Gas Ontario1
499
376
1,368
1,073
U.S. Gas Utilities1
335
178
1,050
228
Other
6
13
22
31
Adjusted EBITDA2
840
567
2,440
1,332
1
Enbridge Gas Inc. doing business as Enbridge Gas Ontario. U.S. Gas Utilities consist of East Ohio Gas Company (doing business as Enbridge Gas Ohio), Questar Gas Company (doing business as Enbridge Gas Utah) and Public Service Company of North Carolina (doing business as Enbridge Gas North Carolina).
2
Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices.
Adjusted EBITDA for Enbridge Gas Ontario, Enbridge Gas Utah and Enbridge Gas North Carolina typically follows a seasonal profile. EBITDA is generally highest in the first and fourth quarters of the year. Seasonal profiles for Enbridge Gas Ontario, Enbridge Gas Utah and Enbridge Gas North Carolina reflect greater volumetric demand during the heating season and the magnitude of the seasonal adjusted EBITDA fluctuations will vary from year-to-year in Ontario reflecting the impact of colder or warmer than normal weather on distribution volumes. Enbridge Gas Ohio's earnings are largely decoupled from volumes and less impacted by weather fluctuations. Enbridge Gas Utah and Enbridge Gas North Carolina have revenue decoupling mechanisms that are not impacted by weather or gas volume variability, but revenues are shaped to align with the seasonal usage profile. Enbridge Gas Ontario revenue is affected by weather variability.
Adjusted EBITDA for the second quarter increased $273 million compared with the second quarter of 2024 primarily related to:
full-quarter contributions from the Acquisitions;
higher distribution margin resulting from increases in rates and customer base in Enbridge Gas Ontario in addition to higher storage pricing; and
colder weather impacting Enbridge Gas Ontario in 2025.
When compared with the normal forecast embedded in rates, the positive impact of weather to Adjusted EBITDA for Enbridge Gas Ontario was approximately $10 million in the second quarter of 2025 compared to a negative impact of approximately $28 million in the same period of 2024.
Renewable Power Generation
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
(unaudited; millions of Canadian dollars)
Adjusted EBITDA1
120
