10-QPeriod: Q2 FY2026

ENBRIDGE INC Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 31, 2026For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. reported its financial results for the three and six months ended June 30, 2026. For the three-month period, earnings attributable to common shareholders were $1,396 million ($0.64 per share), a decrease from $2,177 million ($1.00 per share) in the prior year period. This decline was primarily driven by a significant decrease in unrealized derivative fair value gains compared to the prior year, alongside higher interest expenses. The six-month period also saw a decrease in earnings attributable to common shareholders to $3,067 million ($1.41 per share) from $4,438 million ($2.04 per share) in the comparable period of 2025, again influenced by lower unrealized derivative gains and increased interest costs, partially offset by contributions from the Gas Distribution and Storage, and Gas Transmission segments. Despite the year-over-year earnings decline, Enbridge continues to execute on its growth strategy, with substantial capital expenditures underway across its Liquids Pipelines, Gas Transmission, Gas Distribution and Storage, and Renewable Power Generation segments. The company highlighted ongoing projects such as the Line 5 Relocation Project in Wisconsin, expected to enter service in early 2027, and expansions in its Gas Transmission segment. Enbridge also confirmed compliance with its debt covenants and maintained significant liquidity, with total available credit facilities of $8.9 billion and unrestricted cash and cash equivalents of $2.0 billion as of June 30, 2026.

Key Highlights

  • 1Earnings attributable to common shareholders decreased year-over-year for both the three-month and six-month periods ended June 30, 2026, primarily due to lower unrealized derivative fair value gains and increased interest expense.
  • 2The Gas Distribution and Storage segment showed EBITDA growth driven by higher base rates and customer growth, while the Gas Transmission segment benefited from rate case settlements and approved rate increases.
  • 3Liquids Pipelines segment EBITDA experienced fluctuations primarily due to changes in the mark-to-market value of derivative financial instruments and crude oil inventory adjustments.
  • 4Enbridge continues to invest heavily in its growth pipeline, with numerous commercially secured projects across all segments, including the Line 5 Relocation Project and expansions in Gas Transmission.
  • 5The company maintained a strong liquidity position with $8.9 billion in available credit facilities and $2.0 billion in unrestricted cash and cash equivalents as of June 30, 2026.
  • 6Enbridge is actively managing its debt and has completed several long-term debt issuances and repayments during the period, while remaining in compliance with all debt covenants.
  • 7Significant legal proceedings related to Line 5 and the Dakota Access Pipeline are ongoing, with recent developments impacting the legal landscape for these assets.

Frequently Asked Questions

The primary driver for the decrease in earnings attributable to common shareholders for the three months ended June 30, 2026, compared to the same period in 2025, was a significant reduction in the net unrealized gain from derivative financial instruments. Additionally, higher interest expenses also contributed to the decline.

Enbridge is financing its capital expenditures through a combination of cash generated from operations, commercial paper issuances, draws under committed credit facilities, and proceeds from capital market offerings. The company maintains significant liquidity through committed credit facilities to ensure funding through extended periods of market disruption.

Key ongoing legal matters include the Line 5 easement dispute with the Bad River Band, which resulted in a court order for ongoing quarterly payments and a shutdown deadline pending appeal, and the Dakota Access Pipeline (DAPL) litigation concerning environmental reviews and tribal consultation, where a final EIS identified continued operation with additional conditions as the preferred alternative.

The Gas Distribution and Storage segment demonstrated positive EBITDA growth, driven by higher base rates in key jurisdictions like Enbridge Gas Utah, customer growth, and improved storage pricing and short-term sales at Enbridge Gas Ontario. The company expects this segment to continue contributing positively.