01—Abstract
Summary
Summary of the 8-K filed May 9, 2025. Cited figures are marked; the original filing is the authoritative source.
Enbridge Inc. (ENB) reported record first quarter 2025 results on May 9, 2025, with GAAP earnings attributable to common shareholders of C$2.3 billiona (C$1.04 per share), up from C$1.4 billion (C$0.67) a year earlier, and adjusted earnings of C$2.2 billion (C$1.03 per share, versus C$0.92).
Adjusted EBITDA rose 18% to C$5.8 billionb and DCF rose 9% to C$3.8 billion. Much of the GAAP improvement reflects non-cash unrealized derivative gains and the absence of 2024 severance costs, so investors should focus on adjusted metrics. Growth was driven largely by the U.S. gas utility acquisitions from Dominion Energy, higher Mainline throughput and tolls, and colder weather in Ontario, partly offset by higher interest expense and a larger realized FX hedge loss.
Management reaffirmed 2025 guidance of adjusted EBITDA of C$19.4c-20.0 billion and DCF per share of C$5.50-5.90, along with its Investor Day outlook of 7-9% near-term adjusted EBITDA growth through 2026 and about 5% annual growth thereafter. The company announced several growth investments: up to C$2 billion of Mainline capital through 2028, a 10% interest in the Matterhorn Express pipeline for US$0.3 billion (expected to close in Q2 2025), the Traverse Pipeline FID, a C$0.4 billion Birch Grove expansion, and a T15 expansion.
Its secured growth backlog is now C$28 billiond, and Debt-to-EBITDA stood at 4.9x against a 4.5-5.0x target, with management expecting improvement toward the midpoint through 2025. The quarterly common dividend is C$0.94250, payable June 1, 2025.
02—Key points
Key Highlights
- GAAP EPS of C$1.04 vs C$0.67 prior year; adjusted EPS of C$1.03 vs C$0.92, up 12%
- Adjusted EBITDA up 18% to C$5.8B (C$5,828M vs C$4,954M), driven mainly by U.S. gas utility acquisitions and higher Mainline volumes and tolls
- DCF rose 9% to C$3.8B (C$3,777M vs C$3,463M); cash from operations was roughly flat at C$3.1B
- 2025 guidance reaffirmed: adjusted EBITDA C$19.4-20.0B and DCF/share C$5.50-5.90
- About C$3B of new secured projects added this quarter, lifting the secured backlog to C$28B; the Matterhorn Express 10% stake (US$0.3B) is expected to close in Q2 2025
- Debt-to-EBITDA of 4.9x, with expected improvement toward the 4.5-5.0x target midpoint as acquisition EBITDA annualizes
- Quarterly common dividend of C$0.94250 declared, payable June 1, 2025 to holders of record May 15, 2025
03—Questions
Frequently Asked Questions
Why did GAAP earnings rise so much more than adjusted earnings?
GAAP earnings were boosted by non-cash unrealized derivative gains (C$158M EBITDA adjustment) and by the absence of C$105M in 2024 severance costs. These items are excluded from adjusted earnings, which rose a more modest 12% per share, so adjusted earnings give a better picture of underlying performance.
Is the company on track to meet its 2025 guidance?
Yes. Enbridge reaffirmed its 2025 adjusted EBITDA range of C$19.4-20.0B and DCF per share of C$5.50-5.90. Management said it expects to meet or exceed guidance for the 20th consecutive year, supported by strong Mainline utilization and the contribution from the U.S. gas utility acquisitions.
What are the main risks to the investment case highlighted in the filing?
Higher interest expense from acquisition-related debt (interest expense rose to C$1.26B adjusted from C$1.01B), a larger realized FX hedge loss (C$204M vs C$19M), weaker European offshore wind resources, and lower Flanagan South volumes. The filing also cites tariffs and trade policy, regulatory outcomes for rate cases in North Carolina and Utah, and project execution risk as forward-looking risks.
How will the company fund its growth program?
Enbridge said financing for the secured growth program will come entirely from its expected C$9-10 billion of annual growth capital investment capacity. It issued C$2.8B of senior notes in February 2025 to pay down debt and fund capital needs. Management says this framework supports a strong balance sheet and sustainable shareholder returns.
What is the significance of the Matterhorn Express and Traverse Pipeline investments?
These deals expand Enbridge's U.S. natural gas transmission footprint in the Permian-to-Gulf Coast corridor. Matterhorn is a 2.5 bcf/d, fully contracted pipeline, and Enbridge's 10% stake costs US$0.3B. The Traverse Pipeline (1.8 bcf/d, Agua Dulce to Katy) is backed by investment-grade firm transportation agreements, has a 13.3% effective Enbridge interest, and is expected to enter service in 2027.
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