Enbridge (NYSE: ENB) posts Q2 2026 results and cash flow data
Enbridge Inc. reported higher operating revenues for the three and six months ended June 30, 2026. Quarterly operating revenues were C$29,318 million and year-to-date revenues were C$51,675 million, compared with C$14,876 million and C$33,378 million in the prior-year periods, largely reflecting higher commodity sales.
Earnings attributable to common shareholders were C$1,396 million (basic EPS C$0.64) for the quarter versus C$2,177 million (C$1.00) a year earlier; for the first half, earnings were C$3,067 million (C$1.41) compared with C$4,438 million (C$2.04). Operating income rose to C$2,910 million from C$2,289, while other income/(expense) moved to a C$35 million loss from a C$1,369 million gain and interest expense increased.
Segment earnings before interest, income taxes, depreciation and amortization totaled C$5,052 million in the quarter, led by Liquids Pipelines at C$2,623 million and Gas Transmission at C$1,433 million. Net cash provided by operating activities for the first half was C$6,453 million, modestly above C$6,291 million, funding capital expenditures of C$5,523 million. At June 30, 2026, total assets were C$231,647 million and long-term debt was C$103,852 million. Enbridge had 2,184 million common shares outstanding, declared a quarterly common dividend of C$0.97 per share, and reported C$57.6 billion of future contracted revenues, including C$5.1 billion expected in the remainder of 2026 and C$8.6 billion in 2027.
Positive
- None.
Negative
- None.
Filing Explained
Completed debt financing and renewed credit facilities expand Enbridge’s disclosed financing structure without changing the reported common-share count.
As an unaudited quarterly report, the 10-Q updates Enbridge’s interim financial statements, risks and liquidity for the six months ended
At that date, committed credit facilities totaled
Enbridge completed debt issuances totaling
The board declared a
Key Figures
Key Terms
EBITDA financial
Accumulated other comprehensive income financial
non-GAAP and other financial measures financial
subordinated term notes financial
performance obligations financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Enbridge (ENB) perform financially in Q2 2026?
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How strong was Enbridge (ENB)’s cash flow in the first half of 2026?
What does Enbridge (ENB)’s balance sheet look like as of June 30, 2026?
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
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(Exact Name of Registrant as Specified in Its Charter)
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(Address of Principal Executive Offices) (Zip Code)
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(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Non-accelerated filer |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
The registrant had
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PART I |
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Item 1. |
Financial Statements |
6 |
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
33 |
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
49 |
Item 4. |
Controls and Procedures |
50 |
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PART II |
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Item 1. |
Legal Proceedings |
50 |
Item 1A. |
Risk Factors |
51 |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
51 |
Item 3. |
Defaults Upon Senior Securities |
51 |
Item 4. |
Mine Safety Disclosures |
52 |
Item 5. |
Other Information |
52 |
Item 6. |
Exhibits |
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Signatures |
54 |
2
GLOSSARY
"we", "our", "us" and "Enbridge" |
Enbridge Inc. |
AOCI |
Accumulated other comprehensive income/(loss) |
Army Corps |
the US Army Corps of Engineers |
East Tennessee |
East Tennessee Natural Gas, LLC |
EBITDA |
Earnings before interest, income taxes and depreciation and amortization |
EEP |
Enbridge Energy Partners, L.P. |
EIS |
Environmental Impact Statement |
Enbridge Gas Ontario |
Enbridge Gas Inc. |
Exchange Act |
United States Securities Exchange Act of 1934, as amended |
OCI |
Other comprehensive income/(loss) |
OPEB |
Other postretirement benefit obligations |
SEP |
Spectra Energy Partners, LP |
Texas Eastern |
Texas Eastern Transmission, LP |
the Partnerships |
Spectra Energy Partners, LP and Enbridge Energy Partners, L.P. |
US |
United States of America |
US Gas Utilities / the Acquisitions |
Enbridge Inc.'s acquisitions of three US gas utilities from Dominion Energy, Inc. |
3
CONVENTIONS
The terms "we", "our", "us" and "Enbridge" as used in this report refer collectively to Enbridge Inc. and its subsidiaries unless the context suggests otherwise. These terms are used for convenience only and are not intended as a precise description of any separate legal entity within Enbridge.
Unless otherwise specified, all dollar amounts are expressed in Canadian dollars, all references to "dollars" or "$" are to Canadian dollars and all references to "US$" are to United States (US) dollars. All amounts are provided on a before-tax basis, unless otherwise stated.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this quarterly report on Form 10-Q to provide information about us and our subsidiaries and affiliates, including management’s assessment of our and our subsidiaries’ future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "anticipate", "believe", "estimate", "expect", "forecast", "intend", "likely", "plan", "project", "target" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: our corporate vision and strategy, including strategic priorities and enablers; expected supply of, demand for, exports of and prices of crude oil, natural gas, natural gas liquids (NGL), liquefied natural gas (LNG), renewable natural gas (RNG) and renewable energy; energy evolution and lower-carbon energy, and our approach thereto; our sustainability goals, practices and performance; industry and market conditions; anticipated utilization of our assets; dividend growth and payout policy; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected strategic priorities and performance of the Liquids Pipelines, Gas Transmission, Gas Distribution and Storage, and Renewable Power Generation businesses; the characteristics, anticipated benefits, financing and timing of our acquisitions, dispositions and other transactions, including the anticipated benefits of the acquisitions of three US gas utilities (US Gas Utilities) from Dominion Energy, Inc. (the Acquisitions); expected future actions of regulators and courts; government trade policies and potential impacts of potential and announced tariffs, duties, fees, economic sanctions, or other trade measures and the timing thereof; expected costs, benefits and in-service dates related to announced projects and projects under construction; expected capital expenditures; investable capacity and capital allocation priorities; expected equity funding requirements for our commercially secured growth program; expected future growth, development and expansion opportunities; expected optimization and efficiency opportunities; expectations about our joint venture partners' ability to complete and finance projects under construction; our ability to successfully integrate the US Gas Utilities; expected closing of acquisitions, dispositions and other transactions and the timing thereof; toll and rate case discussions and proceedings and anticipated timeline and impact therefrom, including those relating to the Gas Distribution and Storage and Gas Transmission businesses; operational, industry, regulatory, climate change and other risks associated with our businesses; and our assessment of the potential impact of the various risk factors identified herein.
Although we believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include the following: the expected supply of, demand for, export of and prices of crude oil, natural gas, NGL, LNG, RNG and renewable energy; anticipated utilization of our assets; exchange rates; inflation; interest rates; tariffs and trade policies; availability and price of labor and construction materials; the stability of our supply chain; operational reliability; maintenance of support and regulatory approvals for our projects and transactions; anticipated in-service dates; weather; the timing, terms and closing of acquisitions, dispositions and other transactions; the realization of anticipated benefits of transactions, including the Acquisitions; governmental legislation; litigation; estimated future dividends and impact of our dividend policy on our future cash flows; our credit ratings; capital project funding; hedging program; expected earnings before interest, income taxes, and depreciation and amortization (EBITDA); expected earnings/(loss); expected future cash flows; and expected distributable cash flow. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL, LNG, RNG and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for our services. Similarly, exchange rates, inflation, interest rates and tariffs impact the economies and business environments in which we operate and may impact levels of demand for our services and cost of inputs and are therefore inherent in all forward-looking statements. The most relevant assumptions associated with forward-looking statements regarding
4
announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labor and construction materials; the stability of our supply chain; the effects of inflation and foreign exchange rates on labor and material costs; the effects of interest rates on borrowing costs; the impact of weather; and customer, government, court and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Our forward-looking statements are subject to risks and uncertainties pertaining to the successful execution of our strategic priorities; operating performance; legislative and regulatory parameters; litigation; acquisitions, dispositions and other transactions and the realization of anticipated benefits therefrom (including the anticipated benefits from the Acquisitions); evolving government trade policies, including potential and announced tariffs, duties, fees, economic sanctions or other trade measures; operational dependence on third parties; dividend policy; project approval and support; renewals of rights-of-way; weather; economic and competitive conditions; public opinion; changes in tax laws and tax rates; exchange rates; inflation; interest rates; commodity prices; access to and cost of capital; our ability to maintain adequate insurance in the future at commercially reasonable rates and terms; political decisions; global geopolitical conflicts and conditions; and the supply of, demand for and prices of commodities and other alternative energy, including but not limited to, those risks and uncertainties discussed in this quarterly report on Form 10-Q and in our other filings with Canadian and US securities regulators. The impact of any one assumption, risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent, and our future course of action depends on management’s assessment of all information available at the relevant time. Except to the extent required by applicable law, we assume no obligation to publicly update or revise any forward-looking statements made in this quarterly report on Form 10-Q or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to us or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements.
NON-GAAP AND OTHER FINANCIAL MEASURES
Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) in this quarterly report on Form 10-Q makes reference to non-GAAP and other financial measures, including EBITDA. EBITDA is defined as earnings before interest, income taxes and depreciation and amortization. Management uses EBITDA to assess performance of Enbridge and to set targets. Management believes the presentation of EBITDA gives useful information to investors as it provides increased transparency and insight into the performance of Enbridge.
The non-GAAP and other financial measures are not measures that have a standardized meaning prescribed by the accounting principles generally accepted in the US (US GAAP) and are not US GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers. A reconciliation of historical non-GAAP and other financial measures to the most directly comparable GAAP measures is set out in this MD&A and is available on our website. Additional information on non-GAAP and other financial measures may be found on our website, www.sedarplus.ca or www.sec.gov.
5
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ENBRIDGE INC.
CONSOLIDATED STATEMENTS OF EARNINGS
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Operating and administrative |
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Depreciation and amortization |
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Impairment of long-lived assets |
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Total operating expenses |
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Other income/(expense) (Note 10) |
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Interest expense |
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Earnings before income taxes |
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Income tax expense |
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Earnings attributable to noncontrolling interests and redeemable noncontrolling interest |
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Earnings attributable to controlling interests |
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Earnings per common share attributable to common shareholders (Note 5) |
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Diluted earnings per common share attributable to common shareholders (Note 5) |
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The accompanying notes are an integral part of these interim consolidated financial statements.
6
ENBRIDGE INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
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Earnings |
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Other comprehensive income/(loss), net of tax |
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Change in unrealized gain/(loss) on cash flow hedges |
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Gain/(loss) on net investment hedges (Note 8) |
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Other comprehensive income/(loss) from equity investees and other investments |
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Excluded components of fair value hedges |
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Reclassification to earnings of loss on cash flow hedges |
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Reclassification to earnings of pension and other postretirement benefits (OPEB) amounts |
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Foreign currency translation adjustments |
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Other comprehensive income/(loss), net of tax |
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Comprehensive income/(loss) |
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Comprehensive (income)/loss attributable to noncontrolling interests and redeemable noncontrolling interest |
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The accompanying notes are an integral part of these interim consolidated financial statements.
7
ENBRIDGE INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
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Common shares |
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Shares issued on exercise of stock options |
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Shares issued on vesting of restricted stock units (RSU) |
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Deficit |
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Earnings attributable to controlling interests |
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Preference share dividends |
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Redemption value adjustment attributable to redeemable noncontrolling interest |
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Balance at beginning of period |
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Other comprehensive income/(loss) attributable to common shareholders, net of tax |
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Balance at end of period |
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Total Enbridge Inc. shareholders' equity |
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Noncontrolling interests |
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Earnings attributable to noncontrolling interests |
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Distributions |
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Contributions |
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Other |
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Balance at end of period |
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Total equity |
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Dividends paid per common share |
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The accompanying notes are an integral part of these interim consolidated financial statements.
8
ENBRIDGE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
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(unaudited; millions of Canadian dollars) |
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Operating activities |
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Earnings |
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Adjustments to reconcile earnings to net cash provided by operating activities: |
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Depreciation and amortization |
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Deferred income tax expense |
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Unrealized derivative fair value loss/(gain), net |
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Income from equity investments |
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Distributions from equity investments |
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Impairment of long-lived assets |
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Other |
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Changes in operating assets and liabilities |
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Net cash provided by operating activities |
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Investing activities |
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Capital expenditures |
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Long-term, restricted and other investments |
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Distributions from equity investments in excess of cumulative earnings |
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Additions to intangible assets |
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( |
) |
|
( |
) |
Proceeds from disposition of equity investments |
|
|
|
|
||
Other |
|
( |
) |
|
( |
) |
Net cash used in investing activities |
|
( |
) |
|
( |
) |
Financing activities |
|
|
|
|
||
Net change in short-term borrowings |
|
|
|
|
||
Net change in commercial paper and credit facility draws |
|
|
|
( |
) |
|
Debenture and term note issues, net of issue costs |
|
|
|
|
||
Debenture and term note repayments |
|
( |
) |
|
( |
) |
Contributions from noncontrolling interests |
|
|
|
|
||
Distributions to noncontrolling interests |
|
( |
) |
|
( |
) |
Contributions from redeemable noncontrolling interest |
|
|
|
|
||
Distributions to redeemable noncontrolling interest |
|
( |
) |
|
|
|
Common shares issued, net of issue costs |
|
|
|
|
||
Preference share dividends |
|
( |
) |
|
( |
) |
Common share dividends |
|
( |
) |
|
( |
) |
Net change in affiliate loans |
|
|
|
|
||
Other |
|
( |
) |
|
( |
) |
Net cash provided by/(used in) financing activities |
|
|
|
( |
) |
|
Effect of translation of foreign denominated cash and cash equivalents and restricted cash |
|
|
|
( |
) |
|
Net change in cash and cash equivalents and restricted cash |
|
|
|
( |
) |
|
Cash and cash equivalents and restricted cash at beginning of period1 |
|
|
|
|
||
Cash and cash equivalents and restricted cash at end of period1 |
|
|
|
|
||
The accompanying notes are an integral part of these interim consolidated financial statements.
1
9
ENBRIDGE INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
June 30, |
|
December 31, |
|
||
(unaudited; millions of Canadian dollars; number of shares in millions) |
|
|
|
|
||
Assets |
|
|
|
|
||
Current assets |
|
|
|
|
||
Cash and cash equivalents |
|
|
|
|
||
Restricted cash |
|
|
|
|
||
Trade receivables and unbilled revenues |
|
|
|
|
||
Other current assets |
|
|
|
|
||
Accounts receivable from affiliates |
|
|
|
|
||
Inventory |
|
|
|
|
||
|
|
|
|
|
||
Property, plant and equipment, net |
|
|
|
|
||
Long-term investments |
|
|
|
|
||
Restricted long-term investments and cash (Note 8) |
|
|
|
|
||
Deferred amounts and other assets |
|
|
|
|
||
Intangible assets, net |
|
|
|
|
||
Goodwill |
|
|
|
|
||
Deferred income taxes |
|
|
|
|
||
Total assets |
|
|
|
|
||
|
|
|
|
|
||
Liabilities and equity |
|
|
|
|
||
Current liabilities |
|
|
|
|
||
Short-term borrowings |
|
|
|
|
||
Trade payables and accrued liabilities |
|
|
|
|
||
Other current liabilities |
|
|
|
|
||
Accounts payable to affiliates |
|
|
|
|
||
Interest payable |
|
|
|
|
||
Current portion of long-term debt |
|
|
|
|
||
|
|
|
|
|
||
Long-term debt |
|
|
|
|
||
Other long-term liabilities |
|
|
|
|
||
Deferred income taxes |
|
|
|
|
||
|
|
|
|
|
||
Contingencies (Note 11) |
|
|
|
|
||
Redeemable noncontrolling interest |
|
|
|
|
||
Equity |
|
|
|
|
||
Share capital |
|
|
|
|
||
Preference shares |
|
|
|
|
||
Common shares ( |
|
|
|
|
||
Additional paid-in capital |
|
|
|
|
||
Deficit |
|
( |
) |
|
( |
) |
Accumulated other comprehensive income (Note 7) |
|
|
|
|
||
Total Enbridge Inc. shareholders’ equity |
|
|
|
|
||
Noncontrolling interests |
|
|
|
|
||
|
|
|
|
|
||
Total liabilities and equity |
|
|
|
|
||
The accompanying notes are an integral part of these interim consolidated financial statements.
10
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements of Enbridge Inc. ("we", "our", "us" and "Enbridge") have been prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP) and Regulation S-X for interim consolidated financial information. They do not include all of the information and notes required by US GAAP for annual consolidated financial statements and should therefore be read in conjunction with our audited consolidated financial statements and notes for the year ended December 31, 2025. In the opinion of management, the interim consolidated financial statements contain all normal recurring adjustments necessary to present fairly our financial position, results of operations and cash flows for the interim periods reported. These interim consolidated financial statements follow the same significant accounting policies as those included in our audited consolidated financial statements for the year ended December 31, 2025. Amounts are stated in Canadian dollars unless otherwise noted.
Our operations and earnings for interim periods can be affected by seasonal fluctuations within the gas distribution utility businesses, as well as other factors such as supply of and demand for crude oil and natural gas and may not be indicative of annual results.
Certain comparative figures in our interim consolidated financial statements have been reclassified to conform to the current year's presentation.
2. CHANGES IN ACCOUNTING POLICIES
FUTURE ACCOUNTING POLICY CHANGES
Disaggregation of Income Statement Expenses
Accounting Standards Update (ASU) 2024-03 was issued in November 2024 to improve financial reporting by requiring entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The ASU requires entities to disclose 1) the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, (e) depreciation, depletion and amortization recognized as part of oil and gas producing activities, (f) expense reimbursements included in a relevant expense caption, and (g) selling expenses, and 2) a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective January 1, 2027, with interim period disclosure requirements effective after January 1, 2028 and can be applied either prospectively or retrospectively. The additional note disclosures will be included in our December 31, 2027 annual consolidated financial statements and in our interim financial statements beginning in 2028.
11
3. REVENUE
REVENUE FROM CONTRACTS WITH CUSTOMERS
Major Products and Services
Three months ended June 30, 2026 |
Liquids Pipelines |
|
Gas Transmission |
|
Gas Distribution |
|
Renewable Power Generation |
|
Eliminations and Other |
|
Consolidated |
|
||||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transportation revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Storage and other revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gas distribution sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Electricity revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commodity sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total revenue from contracts with customers |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commodity sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other revenue1,2 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Intersegment revenue |
|
|
|
|
|
( |
) |
|
|
|
( |
) |
|
|
||||
Total revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Three months ended June 30, 2025 |
Liquids Pipelines |
|
Gas Transmission |
|
Gas Distribution |
|
Renewable Power Generation |
|
Eliminations and Other |
|
Consolidated |
|
||||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transportation revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Storage and other revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gas distribution sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Electricity revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commodity sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total revenue from contracts with customers |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commodity sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other revenue1,2 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Intersegment revenue |
|
|
|
|
|
( |
) |
|
|
|
( |
) |
|
|
||||
Total revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Six months ended June 30, 2026 |
Liquids Pipelines |
|
Gas Transmission |
|
Gas Distribution |
|
Renewable Power Generation |
|
Eliminations and Other |
|
Consolidated |
|
||||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transportation revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Storage and other revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gas distribution sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Electricity revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commodity sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total revenue from contracts with customers |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commodity sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other revenue1,2 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Intersegment revenue |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Total revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
12
Six months ended June 30, 2025 |
Liquids Pipelines |
|
Gas Transmission |
|
Gas Distribution |
|
Renewable Power Generation |
|
Eliminations and Other |
|
Consolidated |
|
||||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transportation revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Storage and other revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gas distribution sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Electricity revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commodity sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total revenue from contracts with customers |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commodity sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other revenue1,2 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Intersegment revenue |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Total revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
We disaggregate revenues into categories which represent our principal performance obligations within each business segment. These revenue categories represent the most significant revenue streams in each segment and consequently are considered to be the most relevant revenue information for management to consider in evaluating performance.
Contract Balances
|
Contract Receivables |
|
Contract |
|
Contract Liabilities |
|
|||
(millions of Canadian dollars) |
|
|
|
|
|
|
|||
Balance as at June 30, 2026 |
|
|
|
|
|
|
|||
Balance as at December 31, 2025 |
|
|
|
|
|
|
|||
Contract receivables represent the amount of receivables derived from contracts with customers.
Contract assets represent the amount of revenues which have been recognized in advance of payments received for performance obligations we have fulfilled (or have partially fulfilled) and prior to the point in time at which our right to payment is unconditional. Amounts included in contract assets are transferred to accounts receivable when our right to receive the consideration becomes unconditional.
Contract liabilities represent payments received for performance obligations which have not been fulfilled. Contract liabilities primarily relate to make-up rights and deferred revenues. Revenues recognized during the three and six months ended June 30, 2026 included in contract liabilities at the beginning of the period were $
Performance Obligations
There were no material revenues recognized in the three and six months ended June 30, 2026 from performance obligations satisfied in previous periods.
Revenues to be Recognized from Unfulfilled Performance Obligations
Total revenues from performance obligations expected to be fulfilled in future periods is $
13
The revenues excluded from the amounts above based on optional exemptions available under ASC 606, as explained below, represent a significant portion of our overall revenues and revenues from contracts with customers. Certain revenues such as flow-through operating costs charged to shippers are recognized at the amount for which we have the right to invoice our customers and are excluded from the amounts for revenues to be recognized in the future from unfulfilled performance obligations above. Variable consideration is excluded from the amounts above due to the uncertainty of the associated consideration, which is generally resolved when actual volumes and prices are determined. For example, we consider interruptible transportation service revenues to be variable revenues since volumes cannot be estimated. Additionally, the effect of escalation on certain tolls which are contractually escalated for inflation has not been reflected in the amounts above as it is not possible to reliably estimate future inflation rates. Revenues for periods extending beyond the current rate settlement term for regulated contracts where the tolls are periodically reset by the regulator are excluded from the amounts above since future tolls remain unknown. Finally, revenues from contracts with customers which have an original expected duration of one year or less are excluded from the amounts above.
Recognition and Measurement of Revenues
Three months ended June 30, 2026 |
Liquids Pipelines |
|
Gas Transmission |
|
Gas Distribution |
|
Renewable Power Generation |
|
Consolidated |
|
|||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|||||
Revenues from products transferred at a point in time |
|
|
|
|
|
|
|
|
|
|
|||||
Revenues from products and services transferred over time1 |
|
|
|
|
|
|
|
|
|
|
|||||
Total revenue from contracts with customers |
|
|
|
|
|
|
|
|
|
|
|||||
Three months ended June 30, 2025 |
Liquids Pipelines |
|
Gas Transmission |
|
Gas Distribution |
|
Renewable Power Generation |
|
Consolidated |
|
|||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|||||
Revenues from products transferred at a point in time |
|
|
|
|
|
|
|
|
|
|
|||||
Revenues from products and services transferred over time1 |
|
|
|
|
|
|
|
|
|
|
|||||
Total revenue from contracts with customers |
|
|
|
|
|
|
|
|
|
|
|||||
Six months ended June 30, 2026 |
Liquids Pipelines |
|
Gas Transmission |
|
Gas Distribution |
|
Renewable Power Generation |
|
Consolidated |
|
|||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|||||
Revenues from products transferred at a point in time |
|
|
|
|
|
|
|
|
|
|
|||||
Revenues from products and services transferred over time1 |
|
|
|
|
|
|
|
|
|
|
|||||
Total revenue from contracts with customers |
|
|
|
|
|
|
|
|
|
|
|||||
Six months ended June 30, 2025 |
Liquids Pipelines |
|
Gas Transmission |
|
Gas Distribution |
|
Renewable Power Generation |
|
Consolidated |
|
|||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|||||
Revenues from products transferred at a point in time |
|
|
|
|
|
|
|
|
|
|
|||||
Revenues from products and services transferred over time1 |
|
|
|
|
|
|
|
|
|
|
|||||
Total revenue from contracts with customers |
|
|
|
|
|
|
|
|
|
|
|||||
14
4. SEGMENTED INFORMATION
Three months ended June 30, 2026 |
Liquids |
|
Gas |
|
Gas |
|
Renewable |
|
Total |
|
|||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|||||
Operating revenues2 |
|
|
|
|
|
|
|
|
|
|
|||||
Commodity and gas distribution costs |
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|
Operating and administrative |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
Income from equity investments |
|
|
|
|
|
|
|
|
|
|
|||||
Other income |
|
|
|
|
|
|
|
|
|
|
|||||
Earnings before interest, income taxes and depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|||||
Eliminations and Other |
|
|
|
|
|
|
|
|
|
( |
) |
||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
( |
) |
||||
Interest expense |
|
|
|
|
|
|
|
|
|
( |
) |
||||
Earnings before income taxes |
|
|
|
|
|
|
|
|
|
|
|||||
Three months ended June 30, 2025 |
Liquids |
|
Gas |
|
Gas |
|
Renewable |
|
Total |
|
|||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|||||
Operating revenues2 |
|
|
|
|
|
|
|
|
|
|
|||||
Commodity and gas distribution costs |
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|
Operating and administrative |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
Impairment of long-lived assets3 |
|
|
|
|
|
( |
) |
|
|
|
( |
) |
|||
Income from equity investments |
|
|
|
|
|
|
|
|
|
|
|||||
Other income |
|
|
|
|
|
|
|
|
|
|
|||||
Earnings before interest, income taxes and depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|||||
Eliminations and Other |
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
( |
) |
||||
Interest expense |
|
|
|
|
|
|
|
|
|
( |
) |
||||
Earnings before income taxes |
|
|
|
|
|
|
|
|
|
|
|||||
Six months ended June 30, 2026 |
Liquids |
|
Gas |
|
Gas |
|
Renewable |
|
Total |
|
|||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|||||
Operating revenues2 |
|
|
|
|
|
|
|
|
|
|
|||||
Commodity and gas distribution costs |
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|
Operating and administrative |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
Income from equity investments |
|
|
|
|
|
|
|
|
|
|
|||||
Other income |
|
|
|
|
|
|
|
|
|
|
|||||
Earnings before interest, income taxes and depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|||||
Eliminations and Other |
|
|
|
|
|
|
|
|
|
( |
) |
||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
( |
) |
||||
Interest expense |
|
|
|
|
|
|
|
|
|
( |
) |
||||
Earnings before income taxes |
|
|
|
|
|
|
|
|
|
|
|||||
15
Six months ended June 30, 2025 |
Liquids |
|
Gas |
|
Gas |
|
Renewable |
|
Total |
|
|||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|||||
Operating revenues2 |
|
|
|
|
|
|
|
|
|
|
|||||
Commodity and gas distribution costs |
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|
Operating and administrative |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
Impairment of long-lived assets3 |
|
|
|
|
|
( |
) |
|
|
|
( |
) |
|||
Income from equity investments |
|
|
|
|
|
|
|
|
|
|
|||||
Other income |
|
|
|
|
|
|
|
|
|
|
|||||
Earnings before interest, income taxes and depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|||||
Eliminations and Other |
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
( |
) |
||||
Interest expense |
|
|
|
|
|
|
|
|
|
( |
) |
||||
Earnings before income taxes |
|
|
|
|
|
|
|
|
|
|
|||||
Capital Expenditures1
|
Three months ended June 30, |
|
Six months ended June 30, |
|
||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
||||
Liquids Pipelines |
|
|
|
|
|
|
|
|
||||
Gas Transmission |
|
|
|
|
|
|
|
|
||||
Gas Distribution and Storage |
|
|
|
|
|
|
|
|
||||
Renewable Power Generation |
|
|
|
|
|
|
|
|
||||
Eliminations and Other |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
Property, Plant and Equipment
|
June 30, |
|
December 31, |
|
||
(millions of Canadian dollars) |
|
|
|
|
||
Liquids Pipelines |
|
|
|
|
||
Gas Transmission |
|
|
|
|
||
Gas Distribution and Storage |
|
|
|
|
||
Renewable Power Generation |
|
|
|
|
||
Eliminations and Other |
|
|
|
|
||
|
|
|
|
|
||
5. EARNINGS PER COMMON SHARE AND DIVIDENDS PER SHARE
NUMERATOR
The numerator used in calculating both basic and diluted earnings per share equals Earnings attributable to common shareholders per the Consolidated Statements of Earnings, less Redemption value adjustment attributable to redeemable noncontrolling interest per the Consolidated Statements of Changes in Equity.
DENOMINATOR
The denominator of the basic earnings per common share calculation represents the weighted average number of common shares outstanding.
16
The denominator of the diluted earnings per common share calculation uses the treasury stock method to determine the dilutive impact of stock options and share-settled RSUs. This method assumes any proceeds from the exercise of stock options and vesting of share-settled RSUs would be used to purchase common shares at the average market price during the period. The basic weighted average shares outstanding are adjusted by this dilutive impact to derive the diluted weighted average shares outstanding.
Weighted average shares outstanding used to calculate basic and diluted earnings per common share are as follows:
|
Three months ended |
|
Six months ended |
|
||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
(number of shares in millions) |
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
||||
Effect of dilutive options and RSUs |
|
|
|
|
|
|
|
|
||||
Diluted weighted average shares outstanding |
|
|
|
|
|
|
|
|
||||
For the three months ended June 30, 2025,
For the six months ended June 30, 2026 and 2025,
DIVIDENDS PER SHARE
On July 27, 2026, our
|
Dividend per share |
Common Shares |
$ |
Preference Shares, Series A |
$ |
Preference Shares, Series B |
$ |
Preference Shares, Series D |
$ |
Preference Shares, Series F |
$ |
Preference Shares, Series G1 |
$ |
Preference Shares, Series H |
$ |
Preference Shares, Series I2 |
$ |
Preference Shares, Series L |
US$ |
Preference Shares, Series N |
$ |
Preference Shares, Series P |
$ |
Preference Shares, Series R |
$ |
Preference Shares, Series 1 |
US$ |
Preference Shares, Series 3 |
$ |
Preference Shares, Series 43 |
$ |
Preference Shares, Series 5 |
US$ |
Preference Shares, Series 7 |
$ |
Preference Shares, Series 9 |
$ |
Preference Shares, Series 11 |
$ |
Preference Shares, Series 13 |
$ |
Preference Shares, Series 15 |
$ |
Preference Shares, Series 19 |
$ |
17
18
6. DEBT
CREDIT FACILITIES
The following table provides details of our committed credit facilities as at June 30, 2026:
|
Maturity1 |
Total |
|
Draws2 |
|
Available |
|
|||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|||
Enbridge Inc. |
2027-2049 |
|
|
|
|
|
|
|||
Enbridge (U.S.) Inc. |
2027-2030 |
|
|
|
|
|
|
|||
Enbridge Pipelines Inc. |
2027 |
|
|
|
|
|
|
|||
Enbridge Gas Inc. |
2027 |
|
|
|
|
|
|
|||
Total committed credit facilities |
|
|
|
|
|
|
|
|||
In July 2026, we renewed our
In addition to the committed credit facilities noted above, we maintain $
Our credit facilities carry a weighted average standby fee of
As at June 30, 2026 and December 31, 2025, commercial paper and credit facility draws, net of short-term borrowings and non-revolving credit facilities that mature within one year, of $
LONG-TERM DEBT ISSUANCES
During the six months ended June 30, 2026, we completed the following long-term debt issuances totaling $
Company |
Issuance Date |
|
|
Principal |
(millions of Canadian dollars, unless otherwise stated) |
||||
Enbridge Inc. |
||||
|
February 2026 |
medium-term notes due February 2031 |
$ |
|
|
February 2026 |
medium-term notes due February 2036 |
$ |
|
|
February 2026 |
medium-term notes due February 2056 |
$ |
|
|
March 2026 |
senior notes due March 2031 |
US$ |
|
|
March 2026 |
senior notes due March 2036 |
US$ |
|
19
LONG-TERM DEBT REPAYMENTS
During the six months ended June 30, 2026, we completed the following long-term debt repayments totaling $
Company |
Repayment Date |
|
|
Principal |
(millions of Canadian dollars, unless otherwise stated) |
||||
Enbridge Gas Inc. |
||||
|
June 2026 |
medium-term notes |
$ |
|
Enbridge Pipelines (Southern Lights) L.L.C. |
||||
|
June 2026 |
senior notes |
US$ |
|
Enbridge Pipelines Inc. |
||||
|
May 2026 |
medium-term notes1 |
$ |
|
Enbridge Southern Lights LP |
||||
|
June 2026 |
senior notes |
$ |
|
Blauracke GmbH |
||||
|
April 2026 |
senior notes |
€ |
|
Public Service Company of North Carolina, Incorporated |
||||
|
January 2026 |
debentures |
US$ |
|
SUBORDINATED TERM NOTES
As at June 30, 2026 and December 31, 2025, our fixed-to-floating rate and fixed-to-fixed rate subordinated term notes had an aggregate principal value of $
FAIR VALUE ADJUSTMENT
As at June 30, 2026 and December 31, 2025, the fair value adjustments to decrease total debt assumed in historical acquisitions were $
DEBT COVENANTS
Our credit facility agreements and term debt trust indentures include standard events of default and covenant provisions whereby accelerated repayment and/or termination of the agreements may result if we were to default on payment or violate certain covenants. As at June 30, 2026, we were in compliance with all such debt covenant provisions.
20
7. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME
Changes in Accumulated other comprehensive income (AOCI) attributable to our common shareholders for the six months ended June 30, 2026 and 2025 are as follows:
|
Cash |
|
Net |
|
Cumulative |
|
Equity |
|
Pension |
|
Total |
|
||||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as at January 1, 2026 |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|||||
Other comprehensive income/(loss) retained in AOCI |
|
|
|
( |
) |
|
|
|
( |
) |
|
— |
|
|
|
|||
Other comprehensive (income)/loss reclassified to earnings |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts1 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
||
Amortization of pension and OPEB actuarial gain2 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
( |
) |
|
|
|
|
( |
) |
|
|
|
( |
) |
|
( |
) |
|
|
|||
Tax impact |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income tax on amounts retained in AOCI |
|
( |
) |
|
— |
|
|
— |
|
|
( |
) |
|
— |
|
|
( |
) |
Income tax on amounts reclassified to earnings |
|
( |
) |
|
— |
|
|
— |
|
|
— |
|
|
|
|
( |
) |
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
( |
) |
|||
Balance as at June 30, 2026 |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|||||
|
Cash |
|
Excluded |
|
Net |
|
Cumulative |
|
Equity |
|
Pension |
|
Total |
|
|||||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance as at January 1, 2025 |
|
|
|
( |
) |
|
( |
) |
|
|
|
|
|
|
|
|
|||||
Other comprehensive income/(loss) retained in AOCI |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Other comprehensive (income)/loss reclassified to earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate contracts1 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
||
Foreign exchange contracts3 |
|
— |
|
|
( |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
Amortization of pension and OPEB actuarial gain2 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Tax impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Income tax on amounts retained in AOCI |
|
|
|
( |
) |
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
( |
) |
|
Income tax on amounts reclassified to earnings |
|
( |
) |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|||
|
|
( |
) |
|
|
|
|
|
|
|
|
|
( |
) |
|
( |
) |
||||
Balance as at June 30, 2025 |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
||||||
8. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
MARKET RISK
Our earnings, cash flows and other comprehensive income/(loss) (OCI) are subject to movements in foreign exchange rates, interest rates, commodity prices and our share price (collectively, market risks). Formal risk management policies, processes and systems have been designed to mitigate these risks.
The following summarizes the types of market risks to which we are exposed and the risk management instruments used to mitigate them. We use a combination of qualifying and non-qualifying derivative instruments to manage the risks noted below.
21
Foreign Exchange Risk
We generate certain revenues, incur expenses and hold a number of investments and subsidiaries that are denominated in currencies other than Canadian dollars. As a result, our earnings, cash flows and OCI are exposed to fluctuations resulting from foreign exchange rate variability.
We employ financial derivative instruments to hedge foreign currency-denominated earnings exposure. A combination of qualifying and non-qualifying derivative instruments is used to hedge anticipated foreign currency-denominated revenues and expenses and to manage variability in cash flows. We hedge certain net investments in US dollar-denominated investments and subsidiaries using US dollar-denominated debt.
Interest Rate Risk
Our earnings and cash flows are exposed to short-term interest rate variability due to the regular repricing of our variable rate debt, primarily commercial paper. We have a policy of limiting the maximum floating rate debt to
We are exposed to changes in the fair value of fixed rate debt that arise as a result of changes in market interest rates. Pay floating-receive fixed interest rate swaps are used, when applicable, to hedge against future changes to the fair value of fixed rate debt which mitigates the impact of fluctuations in fair value. Executed fixed-to-floating interest rate swaps have an average swap rate of
Our earnings, cash flows and OCI are also exposed to variability in longer term interest rates ahead of anticipated fixed rate term debt issuances. A combination of qualifying and non-qualifying forward starting interest rate swaps are used to hedge against the effect of future interest rate movements. We have established a program including some of our subsidiaries to partially mitigate our exposure to long-term interest rate variability on forecasted term debt issuances via execution of floating-to-fixed interest rate swaps with an average swap rate of
Commodity Price Risk
Our earnings, cash flows and OCI are exposed to changes in commodity prices as a result of our ownership interests in certain assets and investments, as well as through the activities of our energy marketing subsidiaries. These commodities include natural gas, crude oil, power and natural gas liquids (NGL). We employ financial and physical derivative instruments to fix a portion of the variable price exposures that arise from physical transactions involving these commodities. For our US Gas Utilities, changes in derivatives' fair values are deferred as regulatory assets or liabilities until settlement. We use primarily non-qualifying derivative instruments to manage commodity price risk.
Equity Price Risk
Equity price risk is the risk of earnings fluctuations due to changes in our share price. We have exposure to our own common share price through the issuance of various forms of stock-based compensation, which affect earnings through the revaluation of outstanding units every period.
TOTAL DERIVATIVE INSTRUMENTS
We have a policy of entering into individual International Swaps and Derivatives Association, Inc. (ISDA) agreements, or other similar derivative agreements, with the majority of our financial derivative counterparties. These agreements provide for the net settlement of derivative instruments outstanding with specific counterparties in the event of bankruptcy or other significant credit events and reduce our credit risk exposure on financial derivative asset positions in those circumstances.
The following tables summarize the Consolidated Statements of Financial Position location and carrying value of our derivative instruments, as well as the maximum potential settlement amounts, in the event of the specific circumstances described above.
22
June 30, 2026 |
Derivative |
|
Derivative |
|
Non- |
|
Total Gross |
|
Amounts |
|
Total Net |
|
||||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other current assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Interest rate contracts |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Commodity contracts |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Deferred amounts and other assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Interest rate contracts |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Commodity contracts |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Other current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
Interest rate contracts |
|
|
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
( |
) |
||
Commodity contracts |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
|
|
|
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
( |
) |
||
Other long-term liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
Interest rate contracts |
|
|
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
( |
) |
||
Commodity contracts |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
|
|
|
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
( |
) |
||
Total net derivative asset/(liability) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
Interest rate contracts |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|||||
Commodity contracts |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
( |
) |
||
December 31, 2025 |
Derivative |
|
Derivative |
|
Non- |
|
Total Gross |
|
Amounts |
|
Total Net |
|
||||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other current assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Interest rate contracts |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Commodity contracts |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Deferred amounts and other assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Interest rate contracts |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Commodity contracts |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||||
Other current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
Interest rate contracts |
|
( |
) |
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
||
Commodity contracts |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
|
|
( |
) |
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
||
Other long-term liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
Interest rate contracts |
|
|
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
( |
) |
||
Commodity contracts |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
|
|
|
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
( |
) |
||
Total net derivative asset/(liability) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts |
|
|
|
|
|
( |
) |
|
( |
) |
|
— |
|
|
( |
) |
||
Interest rate contracts |
|
|
|
( |
) |
|
|
|
|
|
— |
|
|
|
||||
Commodity contracts |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|||||
|
|
|
|
( |
) |
|
( |
) |
|
( |
) |
|
— |
|
|
( |
) |
|
23
The following table summarizes the maturity and notional principal or quantity outstanding related to our derivative instruments:
June 30, 2026 |
2026 |
|
|
2027 |
|
|
2028 |
|
|
2029 |
|
|
2030 |
|
Thereafter |
|
Total |
|
|||
Foreign exchange contracts - US dollar forwards - purchase (millions of US dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Foreign exchange contracts - US dollar forwards - sell (millions of US dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Foreign exchange contracts - US dollar collars - sell (millions of US dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Foreign exchange contracts - British pound (GBP) forwards - sell (millions of GBP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Foreign exchange contracts - Euro forwards - sell (millions of Euro) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate contracts - short-term pay fixed rate (millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate contracts - receive fixed rate (millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate contracts - long-term pay fixed rate (millions of Canadian dollars)1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate contracts - costless collar (millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commodity contracts - natural gas (billions of cubic feet)2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commodity contracts - crude oil (millions of barrels)2 |
|
( |
) |
|
( |
) |
|
|
|
|
|
|
|
|
|
( |
) |
||||
Commodity contracts - power (megawatt per hour (MW/H)) |
|
|
|
|
|
|
|
|
|
( |
) |
|
( |
) |
|
||||||
Derivatives Designated as Fair Value Hedges
The following table presents interest rate and foreign exchange derivative instruments that are designated and qualify as fair value hedges. The realized and unrealized gain or loss on the derivative is included in Other income/(expense) or Interest expense in the Consolidated Statements of Earnings. The offsetting loss or gain on the hedged item attributable to the hedged risk is included in Other income/(expense) or Interest expense in the Consolidated Statements of Earnings. Any excluded components are included in the Consolidated Statements of Comprehensive Income.
|
Three months ended |
|
Six months ended |
|
||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
||||
Unrealized gain/(loss) on derivative |
|
( |
) |
|
|
|
( |
) |
|
( |
) |
|
Unrealized gain/(loss) on hedged item |
|
|
|
( |
) |
|
|
|
( |
) |
||
Realized gain/(loss) on derivative |
|
|
|
( |
) |
|
|
|
|
|||
Realized gain/(loss) on hedged item |
|
( |
) |
|
|
|
( |
) |
|
( |
) |
|
24
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income
The following table presents the effect of cash flow hedges and fair value hedges on our consolidated earnings and comprehensive income, before the effect of income taxes:
|
Three months ended |
|
Six months ended |
|
||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
||||
Amount of unrealized gain/(loss) recognized in OCI |
|
|
|
|
|
|
|
|
||||
Cash flow hedges |
|
|
|
|
|
|
|
|
||||
Interest rate contracts |
|
|
|
|
|
|
|
( |
) |
|||
Commodity contracts |
|
|
|
( |
) |
|
|
|
( |
) |
||
Fair value hedges |
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
( |
) |
|||
Amount of (income)/loss reclassified from AOCI to earnings |
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts¹ |
|
|
|
( |
) |
|
|
|
( |
) |
||
Interest rate contracts² |
|
|
|
|
|
|
|
|
||||
|
|
|
|
( |
) |
|
|
|
|
|||
We estimate that a gain of $
Non-Qualifying Derivatives
The following table presents the unrealized gains and losses associated with changes in the fair value of our non-qualifying derivatives:
|
Three months ended |
|
Six months ended |
|
||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts1 |
|
( |
) |
|
|
|
( |
) |
|
|
||
Interest rate contracts2 |
|
|
|
|
|
|
|
( |
) |
|||
Commodity contracts3 |
|
|
|
|
|
|
|
|
||||
Other contracts4 |
|
|
|
|
|
|
|
( |
) |
|||
Total unrealized derivative fair value gain/(loss), net |
|
|
|
|
|
( |
) |
|
|
|||
25
LIQUIDITY RISK
Liquidity risk is the risk that we will not be able to meet our financial obligations, including commitments and guarantees, as they become due. In order to mitigate this risk, we forecast cash requirements over a
CREDIT RISK
Entering into derivative instruments may result in exposure to credit risk from the possibility that a counterparty will default on its contractual obligations. In order to mitigate this risk, we enter into risk management transactions primarily with institutions that possess strong investment grade credit ratings. Credit risk relating to derivative counterparties is mitigated through the maintenance and monitoring of credit exposure limits, contractual requirements and netting arrangements. We also review counterparty financial strength using external credit rating services and other analytical tools to manage credit risk.
We have credit concentrations and credit exposure, with respect to derivative instruments, in the following counterparty segments:
|
June 30, |
|
December 31, |
|
||
(millions of Canadian dollars) |
|
|
|
|
||
Canadian financial institutions |
|
|
|
|
||
US financial institutions |
|
|
|
|
||
European financial institutions |
|
|
|
|
||
Asian financial institutions |
|
|
|
|
||
Other1 |
|
|
|
|
||
|
|
|
|
|
||
As at June 30, 2026, we did not provide any letters of credit in lieu of providing cash collateral to our counterparties pursuant to the terms of the relevant ISDA agreements. We held
Gross derivative balances have been presented without the effects of collateral posted. Derivative assets are adjusted for non-performance risk of our counterparties using their credit default swap spread rates and are reflected at fair value. For derivative liabilities, our non-performance risk is considered in the valuation.
26
Credit risk also arises from trade and other long-term receivables, and is mitigated through credit exposure limits and contractual requirements, the assessment of counterparty credit ratings and netting arrangements. Within the Gas Distribution and Storage segment, credit risk is mitigated by the utilities' large and diversified customer base and the ability to recover expected credit losses through the ratemaking process. We actively monitor the financial strength of large industrial customers and, in select cases, have obtained additional security to minimize the risk of default on receivables. Generally, we utilize a loss allowance matrix which contemplates historical credit losses by age of receivables, adjusted for any forward-looking information and management expectations to measure lifetime expected credit losses of receivables. The maximum exposure to credit risk related to non-derivative financial assets is their carrying value.
FAIR VALUE MEASUREMENTS
Our financial assets and liabilities measured at fair value on a recurring basis include derivatives and other financial instruments. We also disclose the fair value of other financial instruments not measured at fair value. The fair value of financial instruments reflects our best estimates of market value based on generally accepted valuation techniques or models and is supported by observable market prices and rates. When such values are not available, we use discounted cash flow analysis from applicable yield curves based on observable market inputs to estimate fair value.
FAIR VALUE OF FINANCIAL INSTRUMENTS
We categorize our financial instruments measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement.
Level 1
Level 1 includes financial instruments measured at fair value based on unadjusted quoted prices for identical assets and liabilities in active markets that are accessible at the measurement date. An active market for a financial instrument is considered to be a market where transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Under the fair value hierarchy, cash and cash equivalents are classified as Level 1. Our Level 1 instruments consist primarily of exchange-traded derivatives used to mitigate the risk of crude oil price fluctuations and US and Canadian treasury bills. We also hold restricted long-term investments in exchange-traded funds and common shares in trusts in accordance with the regulatory requirements of the Canada Energy Regulator (CER) under the Land Matters Consultation Initiative (LMCI), to cover future pipeline decommissioning costs in the state of Minnesota and to satisfy retirement obligations as Wexpro properties are abandoned.
Level 2
Level 2 includes financial instrument valuations determined using directly or indirectly observable inputs other than quoted prices included within Level 1. Financial instruments in this category are valued using models or other industry standard valuation techniques derived from observable market data. Such valuation techniques include inputs such as quoted forward prices, time value, volatility factors and broker quotes that can be observed or corroborated in the market for the entire duration of the financial instrument. Derivatives valued using Level 2 inputs include non-exchange-traded derivatives such as over-the-counter foreign exchange forward and cross-currency swap contracts, interest rate swaps, physical forward commodity contracts, as well as commodity swaps and options for which observable inputs can be obtained.
We have also categorized the fair value of our long-term debt, investments in debt securities held by our captive insurance subsidiary, and restricted long-term investments in Canadian government bonds held in trust in accordance with the CER's regulatory requirements under the LMCI as Level 2. The fair value of our long-term debt is based on quoted market prices for instruments of similar credit risk and tenor. When possible, the fair value of our restricted long-term investments is based on quoted market prices for similar instruments and, if not available, based on broker quotes.
27
Level 3
Level 3 includes derivative valuations based on inputs which are less observable, unavailable or where the observable data does not support a significant portion of the derivative's fair value. Generally, Level 3 derivatives are longer dated transactions, occur in less active markets, occur at locations where pricing information is not available or have no binding broker quote to support Level 2 classification. We have developed methodologies, benchmarked against industry standards, to determine fair value for these derivatives based on the extrapolation of observable future prices and rates. Derivatives valued using Level 3 inputs primarily include long-dated derivative power, NGL and natural gas contracts, basis swaps, commodity swaps, and power and energy swaps, physical forward commodity contracts, as well as options. We do not have any other financial instruments categorized in Level 3.
We use the most observable inputs available to estimate the fair value of our derivatives. When possible, we estimate the fair value of our derivatives based on quoted market prices. If quoted market prices are not available, we use estimates from third-party brokers. For non-exchange-traded derivatives classified in Levels 2 and 3, we use standard valuation techniques to calculate the estimated fair value. These methods include discounted cash flows for forwards and swaps and Black-Scholes-Merton pricing models for options. Depending on the type of derivative and nature of the underlying risk, we use observable market prices (interest, foreign exchange, commodity and share price) and volatility as primary inputs to these valuation techniques. Finally, we consider our own credit default swap spread, as well as the credit default swap spreads associated with our counterparties, in our estimation of fair value.
Fair Value of Derivatives
We have categorized our derivative assets and liabilities measured at fair value as follows:
June 30, 2026 |
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total Gross |
|
||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
||||
Financial assets |
|
|
|
|
|
|
|
|
||||
Current derivative assets |
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts |
|
|
|
|
|
|
|
|
||||
Interest rate contracts |
|
|
|
|
|
|
|
|
||||
Commodity contracts |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
Long-term derivative assets |
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts |
|
|
|
|
|
|
|
|
||||
Interest rate contracts |
|
|
|
|
|
|
|
|
||||
Commodity contracts |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
Financial liabilities |
|
|
|
|
|
|
|
|
||||
Current derivative liabilities |
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts |
|
|
|
( |
) |
|
|
|
( |
) |
||
Interest rate contracts |
|
|
|
( |
) |
|
|
|
( |
) |
||
Commodity contracts |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
|
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
Long-term derivative liabilities |
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts |
|
|
|
( |
) |
|
|
|
( |
) |
||
Interest rate contracts |
|
|
|
( |
) |
|
|
|
( |
) |
||
Commodity contracts |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
|
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
Total net financial asset/(liability) |
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts |
|
|
|
( |
) |
|
|
|
( |
) |
||
Interest rate contracts |
|
|
|
|
|
|
|
|
||||
Commodity contracts |
|
|
|
|
|
|
|
|
||||
|
|
|
|
( |
) |
|
|
|
( |
) |
||
28
December 31, 2025 |
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total Gross |
|
||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
||||
Financial assets |
|
|
|
|
|
|
|
|
||||
Current derivative assets |
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts |
|
|
|
|
|
|
|
|
||||
Interest rate contracts |
|
|
|
|
|
|
|
|
||||
Commodity contracts |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
Long-term derivative assets |
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts |
|
|
|
|
|
|
|
|
||||
Interest rate contracts |
|
|
|
|
|
|
|
|
||||
Commodity contracts |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
Financial liabilities |
|
|
|
|
|
|
|
|
||||
Current derivative liabilities |
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts |
|
|
|
( |
) |
|
|
|
( |
) |
||
Interest rate contracts |
|
|
|
( |
) |
|
|
|
( |
) |
||
Commodity contracts |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
|
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
Long-term derivative liabilities |
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts |
|
|
|
( |
) |
|
|
|
( |
) |
||
Interest rate contracts |
|
|
|
( |
) |
|
|
|
( |
) |
||
Commodity contracts |
|
|
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
|
|
( |
) |
|
( |
) |
|
( |
) |
|
Total net financial asset/(liability) |
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts |
|
|
|
( |
) |
|
|
|
( |
) |
||
Interest rate contracts |
|
|
|
|
|
|
|
|
||||
Commodity contracts |
|
|
|
( |
) |
|
|
|
|
|||
|
|
|
|
( |
) |
|
|
|
( |
) |
||
The significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments were as follows:
June 30, 2026 |
Fair |
|
Unobservable |
Minimum |
|
Maximum |
|
Weighted |
|
Unit of |
||||
(fair value in millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
||||
Commodity contracts - financial¹ |
|
|
|
|
|
|
|
|
|
|
||||
Natural gas |
|
|
Forward gas price |
|
|
|
|
|
|
$/mmbtu2 |
||||
Crude |
|
|
Forward crude price |
|
|
|
|
|
|
$/barrel |
||||
Power |
|
( |
) |
Forward power price |
|
|
|
|
|
|
$/MW/H |
|||
Commodity contracts - physical¹ |
|
|
|
|
|
|
|
|
|
|
||||
Natural gas |
|
( |
) |
Forward gas price |
|
|
|
|
|
|
$/mmbtu2 |
|||
Crude |
|
|
Forward crude price |
|
|
|
|
|
|
$/barrel |
||||
Power |
|
( |
) |
Forward power price |
|
|
|
|
|
|
$/MW/H |
|||
Commodity options3 |
|
|
|
|
|
|
|
|
|
|
||||
Natural gas |
|
|
Forward gas price |
|
|
|
|
|
|
$/mmbtu2 |
||||
|
|
|
Price volatility |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||
29
If adjusted, the significant unobservable inputs disclosed in the table above would have a direct impact on the fair value of our Level 3 derivative instruments. The significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments include forward commodity prices. Changes in forward commodity prices could result in significantly different fair values for our Level 3 derivatives.
Changes in the net fair value of derivative assets and liabilities classified as Level 3 in the fair value hierarchy were as follows:
|
Six months ended |
|
||||
|
2026 |
|
2025 |
|
||
(millions of Canadian dollars) |
|
|
|
|
||
Level 3 net derivative asset/(liability) at beginning of period |
|
|
|
( |
) |
|
Total gain/(loss), unrealized |
|
|
|
|
||
Included in earnings¹ |
|
|
|
|
||
Included in OCI |
|
|
|
( |
) |
|
Included in regulatory assets/liabilities |
|
( |
) |
|
( |
) |
Settlements |
|
|
|
|
||
Level 3 net derivative asset at end of period |
|
|
|
|
||
There were
Net Investment Hedges
We currently have designated a portion of our US dollar-denominated debt as a hedge of our net investment in US dollar-denominated investments and subsidiaries.
During the six months ended June 30, 2026 and 2025, we recognized unrealized foreign exchange losses of $
Fair Value of Other Financial Instruments
Certain long-term investments in other entities with no actively quoted prices are classified as Fair Value Measurement Alternative (FVMA) investments and are recorded at cost less impairment. The carrying value of FVMA investments totaled $
30
We have restricted long-term investments and cash held in trust for the purpose of funding pipeline abandonment in accordance with the CER's regulatory requirements under the LMCI, to cover future pipeline decommissioning costs in the state of Minnesota and to satisfy retirement obligations as Wexpro properties are abandoned.
|
June 30, |
|
December 31, |
|
||
(millions of Canadian dollars) |
|
|
|
|
||
Fair value |
|
|
|
|
||
Level 1 |
|
|
|
|
||
Level 2 |
|
|
|
|
||
Total fair value1 |
|
|
|
|
||
|
|
|
|
|
||
Cost |
|
|
|
|
||
Level 1 |
|
|
|
|
||
Level 2 |
|
|
|
|
||
Total cost |
|
|
|
|
||
|
Three months ended |
|
Six months ended |
|
||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
||||
Unrealized holding gains |
|
|
|
|
|
|
|
|
||||
During the six months ended June 30, 2026, we purchased and sold investments totaling $
We have a wholly-owned captive insurance subsidiary whose principal activity is providing insurance and reinsurance coverage for certain insurable property and casualty risk exposures of our operating subsidiaries and certain equity investments. As at June 30, 2026, our investments in debt securities held by our captive insurance subsidiary had a fair value of $
As at June 30, 2026, the maturities for our investments in debt securities were as follows:
|
Total |
|
Less than |
|
5 years |
|
10 years |
|
Thereafter |
|
|||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|||||
Fair value of debt securities |
|
|
|
|
|
|
|
|
|
|
|||||
As at June 30, 2026 and December 31, 2025, our long-term debt, including finance lease liabilities, had a carrying value before debt issuance costs of $
31
The fair value of financial assets and liabilities other than derivative instruments, certain long-term investments in other entities, restricted long-term investments, investments held by our captive insurance subsidiary and long-term debt described above approximate their carrying value due to the short period to maturity.
9. INCOME TAXES
The effective income tax rates for the three months ended June 30, 2026 and 2025 were
The period-over-period changes in the effective income tax rates are due to higher US minimum tax, the absence of US investment tax credits in 2026, and the effects of rate-regulated accounting for income taxes, mainly driven by the Reaccelerated Investment Incentive Property rules enacted in March 2026 as part of Bill C-15 (45-1), Budget Implementation Act, No. 1, relative to lower earnings over the comparative periods.
10. OTHER INCOME/(EXPENSE)
|
Three months ended |
|
Six months ended |
|
||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
||||
Realized foreign currency loss |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
Unrealized foreign currency gain/(loss) |
|
( |
) |
|
|
|
( |
) |
|
|
||
Net defined pension and OPEB credit |
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
||||
|
|
( |
) |
|
|
|
( |
) |
|
|
||
11. CONTINGENCIES
LITIGATION
We and our subsidiaries are subject to various legal and regulatory actions and proceedings which arise in the normal course of business, including interventions in regulatory proceedings and challenges to regulatory approvals and permits. While the final outcome of such actions and proceedings cannot be predicted with certainty, management believes that the resolution of such actions and proceedings will not have a material impact on our interim consolidated financial position or results of operations.
INSURANCE
We maintain an insurance program for us, our subsidiaries and certain of our affiliates to mitigate a certain portion of our risks. However, not all risks are insurable, or are insured by us. We self-insure a significant portion of certain risks through our wholly-owned captive insurance subsidiary, which requires certain assumptions and management judgment regarding the frequency and severity of claims, claim development and settlement practices and the selection of estimated loss among estimates derived using different methods. Our insurance coverage is also subject to terms and conditions, exclusions and large deductibles or self-insured retentions which may reduce or eliminate coverage in certain circumstances.
Our insurance policies are generally renewed annually, and premiums, terms, policy limits and/or deductibles can vary substantially based on factors like market conditions. We can give no assurance that we will be able to maintain adequate insurance in the future at rates or on other terms we consider commercially reasonable. In such a case, we may decide to self-insure additional risks.
In the unlikely event multiple insurable incidents occur which exceed coverage limits within the same insurance period, the total insurance coverage will be allocated among entities on an equitable basis based on an insurance allocation agreement we have entered into with us and other subsidiaries.
32
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
INTRODUCTION
The following discussion and analysis of our financial condition and results of operations is based on and should be read in conjunction with our interim consolidated financial statements and the accompanying notes included in Part I. Item 1. Financial Statements of this quarterly report on Form 10-Q and our consolidated financial statements and the accompanying notes included in Part II. Item 8. Financial Statements and Supplementary Data of our annual report on Form 10-K for the year ended December 31, 2025.
We continue to qualify as a foreign private issuer for purposes of the United States Securities Exchange Act of 1934, as amended (Exchange Act), as determined annually as of the end of our second fiscal quarter. We intend to continue to file annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K with the United States (US) Securities and Exchange Commission (SEC) instead of filing the reporting forms available to foreign private issuers. We also intend to maintain our Form S-3 registration statements.
RECENT DEVELOPMENTS
GAS TRANSMISSION RATE PROCEEDINGS
East Tennessee
East Tennessee Natural Gas, LLC (East Tennessee) filed a rate case on April 29, 2025. On May 29, 2025, the Federal Energy Regulatory Commission (FERC) issued an order accepting and suspending tariff records, subject to refund, conditions, and establishing hearing procedures. In compliance with the order, East Tennessee made a filing to implement the rates to be effective November 1, 2025, subject to refund. On April 23, 2026, East Tennessee reached a settlement in principle with all parties in the proceeding. On May 29, 2026, East Tennessee filed the settlement agreement for the FERC’s review and approval.
Vector
Vector Pipeline L.P. (Vector) filed a rate case on May 30, 2025 and a settlement in principle was reached with all active participants in February 2026. The Stipulation and Agreement was approved by the FERC on May 26, 2026 with rates effective April 1, 2026.
GAS DISTRIBUTION AND STORAGE RATE APPLICATIONS
Enbridge Gas Ontario
In relation to Enbridge Gas Inc. (Enbridge Gas Ontario)'s application with the Ontario Energy Board (OEB) to establish a 2024-2028 Incentive Regulation rate setting framework, undertaken in three phases, Enbridge Gas Ontario continues to appeal the OEB's Phase 1 findings on depreciation, equity thickness, and undepreciated capital through Ontario courts. The Phase 1 judicial review and appeal hearing took place in the second quarter of 2026, and a decision is expected before the end of the year.
In March 2026, the OEB issued a decision approving the settlement proposal for Phase 3 of Enbridge Gas Ontario's application, which addressed cost allocation and the harmonization of rates, rate classes, and services. The remaining non-ratemaking Phase 3 matters are being addressed through a written hearing process, with a decision expected in 2026. The implementation of Phase 3, which is anticipated to occur in 2027, is not expected to impact earnings.
FINANCING UPDATE
In February 2026, we closed a three-tranche offering consisting of five, ten and thirty-year medium-term notes, for an aggregate principal amount of $2.0 billion, which mature in February 2031, 2036, and 2056, respectively.
33
In March 2026, we closed a two-tranche offering consisting of five and ten-year senior notes for an aggregate principal amount of US$2.0 billion, which mature in March 2031 and 2036, respectively.
On May 11, 2026, Enbridge Pipelines Inc. (EPI) redeemed, at par, all of the outstanding $400 million 3.00% medium-term notes that carried an original maturity date in August 2026.
On June 16, 2026, we completed an exchange of all outstanding series of EPI medium-term notes (EPI Notes) for an equal principal amount of newly issued medium-term notes of Enbridge Inc. (Enbridge Notes), with financial terms identical to those of the EPI Notes (the Note Exchange Transaction) and which are unconditionally guaranteed by Spectra Energy Partners, LP (SEP) and Enbridge Energy Partners, L.P (EEP).
In July 2026, we renewed our 364-day extendible credit facilities, extending the maturity dates to July 2028, which includes a one-year term out provision from July 2027. We also renewed our five-year credit facilities, extending the maturity dates to July 2031. Further, we extended the maturity dates of our three-year credit facilities to July 2029.
These financing activities, in combination with the financing activities executed in 2025, are expected to provide sufficient liquidity to enable us to fund our current portfolio of capital projects and other operating working capital requirements through potential periods of extended market disruption without requiring access to the capital markets, should market access be restricted or pricing be unattractive. Refer to Liquidity and Capital Resources.
RESULTS OF OPERATIONS
|
Three months ended |
|
Six months ended |
|
||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
(millions of Canadian dollars, except per share amounts) |
|
|
|
|
|
|
|
|
||||
Segment earnings/(loss) before interest, income taxes and depreciation and amortization1 |
|
|
|
|
|
|
|
|
||||
Liquids Pipelines |
|
2,623 |
|
|
2,331 |
|
|
4,580 |
|
|
4,924 |
|
Gas Transmission |
|
1,433 |
|
|
1,442 |
|
|
3,003 |
|
|
2,915 |
|
Gas Distribution and Storage |
|
878 |
|
|
510 |
|
|
2,587 |
|
|
2,110 |
|
Renewable Power Generation |
|
118 |
|
|
109 |
|
|
306 |
|
|
332 |
|
Eliminations and Other |
|
(216 |
) |
|
1,167 |
|
|
(620 |
) |
|
1,207 |
|
Earnings before interest, income taxes and depreciation and amortization1 |
|
4,836 |
|
|
5,559 |
|
|
9,856 |
|
|
11,488 |
|
Depreciation and amortization |
|
(1,429 |
) |
|
(1,391 |
) |
|
(2,862 |
) |
|
(2,799 |
) |
Interest expense |
|
(1,395 |
) |
|
(1,181 |
) |
|
(2,617 |
) |
|
(2,515 |
) |
Income tax expense |
|
(442 |
) |
|
(666 |
) |
|
(1,029 |
) |
|
(1,363 |
) |
Earnings attributable to noncontrolling interests and redeemable noncontrolling interest |
|
(69 |
) |
|
(42 |
) |
|
(69 |
) |
|
(168 |
) |
Preference share dividends |
|
(105 |
) |
|
(102 |
) |
|
(212 |
) |
|
(205 |
) |
Earnings attributable to common shareholders |
|
1,396 |
|
|
2,177 |
|
|
3,067 |
|
|
4,438 |
|
Earnings per common share attributable to common shareholders |
|
0.64 |
|
|
1.00 |
|
|
1.41 |
|
|
2.04 |
|
Diluted earnings per common share attributable to common shareholders |
|
0.64 |
|
|
1.00 |
|
|
1.40 |
|
|
2.03 |
|
34
EARNINGS ATTRIBUTABLE TO COMMON SHAREHOLDERS
Three months ended June 30, 2026, compared with the three months ended June 30, 2025
Earnings attributable to common shareholders were negatively impacted by $745 million due to certain infrequent or other non-operating factors, primarily explained by a non-cash, net unrealized derivative fair value gain of $308 million ($232 million after-tax) in 2026, compared with a net unrealized gain of $1.4 billion ($1.0 billion after-tax) in 2025, reflecting changes in the mark-to-market value of derivative financial instruments used to manage foreign exchange, interest rate and commodity price risks.
The non-cash, unrealized derivative fair value gains and losses discussed above generally arise as a result of our comprehensive economic hedging program to mitigate foreign exchange, interest rate and commodity price risks. This program creates volatility in reported short-term earnings through the recognition of unrealized non-cash gains and losses on derivative instruments used to hedge these risks. Over the long-term, we believe our hedging program supports the reliable cash flows and dividend growth upon which our investor value proposition is based.
After taking into consideration the factors above, the remaining $36 million decrease in earnings attributable to common shareholders is primarily explained by:
Six months ended June 30, 2026, compared with the six months ended June 30, 2025
Earnings attributable to common shareholders were negatively impacted by $1.2 billion due to certain infrequent or other non-operating factors, primarily explained by:
After taking into consideration the factors above, the remaining $148 million decrease in earnings attributable to common shareholders is primarily explained by:
35
BUSINESS SEGMENTS
LIQUIDS PIPELINES
|
Three months ended |
|
Six months ended |
|
||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
||||
Earnings before interest, income taxes and depreciation and amortization |
|
2,623 |
|
|
2,331 |
|
|
4,580 |
|
|
4,924 |
|
Three months ended June 30, 2026, compared with the three months ended June 30, 2025
EBITDA was positively impacted by $287 million due to certain infrequent or other non-operating factors, primarily explained by:
After taking into consideration the factors above, the remaining $5 million increase is primarily explained by the following significant business factors:
Six months ended June 30, 2026, compared with the six months ended June 30, 2025
EBITDA was negatively impacted by $31 million due to certain infrequent or other non-operating factors, primarily explained by:
After taking into consideration the factors above, the remaining $313 million decrease is primarily explained by the following significant business factors:
GAS TRANSMISSION
|
Three months ended |
|
Six months ended |
|
||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
||||
Earnings before interest, income taxes and depreciation and amortization |
|
1,433 |
|
|
1,442 |
|
|
3,003 |
|
|
2,915 |
|
36
Three months ended June 30, 2026, compared with the three months ended June 30, 2025
EBITDA was negatively impacted by $46 million due to certain infrequent or other non-operating factors primarily explained by a non-cash, net unrealized gain of $17 million in 2026, compared with a net unrealized gain of $40 million in 2025, reflecting net fair value gains and losses arising from changes in the mark-to-market value of derivative financial instruments used to manage commodity price risks.
After taking into consideration the factors above, the remaining $37 million increase is primarily explained by the following significant business factors:
Six months ended June 30, 2026 compared with the six months ended June 30, 2025
EBITDA was negatively impacted by $28 million due to certain infrequent or other non-operating factors primarily explained by the following:
After taking into consideration the factors above, the remaining $116 million increase is primarily explained by the following significant business factors:
GAS DISTRIBUTION AND STORAGE
|
Three months ended |
|
Six months ended |
|
||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
||||
Earnings before interest, income taxes and depreciation and amortization |
|
878 |
|
|
510 |
|
|
2,587 |
|
|
2,110 |
|
Three months ended June 30, 2026, compared with the three months ended June 30, 2025
EBITDA was positively impacted by $330 million due to the absence in 2026 of an impairment of certain rate-regulated assets in 2025 related to Enbridge Gas Ohio's rate case.
The remaining $38 million increase is primarily explained by higher base rates for Enbridge Gas Utah due to recent rate cases.
37
Six months ended June 30, 2026, compared with the six months ended June 30, 2025
EBITDA was positively impacted by $330 million due to the absence in 2026 of an impairment of certain rate-regulated assets in 2025 related to Enbridge Gas Ohio's rate case.
The remaining $147 million increase is primarily explained by the following significant business factors:
RENEWABLE POWER GENERATION
|
Three months ended |
|
Six months ended |
|
||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
||||
Earnings before interest, income taxes and depreciation and amortization |
|
118 |
|
|
109 |
|
|
306 |
|
|
332 |
|
Three months ended June 30, 2026, compared with the three months ended June 30, 2025
EBITDA was comparable period-over-period.
Six months ended June 30, 2026, compared with the six months ended June 30, 2025
EBITDA was negatively impacted by $26 million, primarily explained by the following significant business factors:
ELIMINATIONS AND OTHER
|
Three months ended |
|
Six months ended |
|
||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|
||||
Earnings/(loss) before interest, income taxes and depreciation and amortization |
|
(216 |
) |
|
1,167 |
|
|
(620 |
) |
|
1,207 |
|
Eliminations and Other includes operating and administrative costs that are not allocated to business segments, and the impact of foreign exchange hedge settlements and the activities of our wholly-owned captive insurance subsidiary. Eliminations and Other also includes our natural gas and power marketing businesses and the impact of new business development activities and corporate investments.
38
Three months ended June 30, 2026, compared with the three months ended June 30, 2025
EBITDA was negatively impacted by $1.4 billion due to certain infrequent or non-operating factors, primarily explained by a non-cash, net unrealized loss of $173 million in 2026, compared with a net unrealized gain of $1.3 billion in 2025, reflecting changes in the mark-to-market value of derivative financial instruments used to manage foreign exchange and commodity price risks.
After taking into consideration the non-operating factor above, the remaining $41 million increase in EBITDA is primarily explained by lower realized foreign exchange losses on hedge settlements in 2026.
Six months ended June 30, 2026, compared with the six months ended June 30, 2025
EBITDA was negatively impacted by $2.0 billion due to certain infrequent or non-operating factors, primarily explained by a non-cash, net unrealized loss of $612 million in 2026, compared with a net unrealized gain of $1.4 billion in 2025, reflecting changes in the mark-to-market value of derivative financial instruments used to manage foreign exchange and commodity price risks.
After taking into consideration the non-operating factor above, the remaining $192 million increase in EBITDA is primarily explained by lower realized foreign exchange losses on hedge settlements in 2026.
39
GROWTH PROJECTS - COMMERCIALLY SECURED PROJECTS
The following table summarizes the status of our material commercially secured projects, organized by business segment:
|
|
Enbridge's |
Estimated |
Expenditures |
Status2 |
Expected |
|
|
(Canadian dollars, unless stated otherwise) |
|
|
|
|
|
|||
LIQUIDS PIPELINES |
|
|
|
|
|
|
||
|
Mainline Optimization |
|
|
|
Pre- |
|
|
|
1. |
Phase 1 |
100% |
US$1.4 billion |
US$143 million |
construction |
|
2027 |
|
|
|
|
|
No significant |
|
|
|
|
|
Southern Illinois |
|
|
expenditures to |
Pre- |
|
|
|
2. |
Connector |
100%3 |
US$0.5 billion |
date |
construction |
2028 |
|
|
|
|
|
|
No significant |
|
|
|
|
|
|
|
|
expenditures to |
Pre- |
|
|
|
3. |
Pelican CO2 Hub |
50% |
US$0.3 billion |
date |
construction |
|
2029 |
|
GAS TRANSMISSION |
|
|
|
|
|
|
||
|
Texas Eastern |
|
|
|
|
|
|
|
4. |
Modernization |
100% |
US$0.4 billion |
US$334 million |
Various stages |
|
2026 |
|
|
T-North Expansion |
|
|
|
Under |
|
|
|
5. |
(Aspen Point) |
100%4 |
$1.2 billion |
$1.0 billion |
construction |
2026 |
|
|
6. |
Tennessee Ridgeline Expansion |
100% |
US$1.4 billion |
US$1.0 billion |
Under construction |
|
2026 |
|
7. |
Woodfibre LNG5 |
30% |
US$2.9 billion |
US$1.8 billion |
Under construction |
2027 |
|
|
8. |
T-South Expansion (Sunrise) |
100%4 |
$4.0 billion |
$860 million |
Under construction |
2028 |
|
|
|
T-North Expansion |
|
|
|
Pre- |
|
|
|
9. |
(Birch Grove) |
100%4 |
$0.4 billion |
$32 million |
construction |
2028 |
|
|
10. |
Canyon System Pipelines |
100% |
US$1.0 billion |
US$259 million |
Pre-construction |
|
2029 |
|
|
Algonquin Gas |
|
|
No significant |
|
|
|
|
|
Transmission |
|
|
expenditures to |
Pre- |
|
|
|
11. |
Enhancement |
100% |
US$0.3 billion |
date |
construction |
|
2029 |
|
|
|
|
|
No significant |
|
|
|
|
|
USGC Storage Growth |
|
|
expenditures to |
Pre- |
|
|
|
12. |
Program |
100% |
US$0.8 billion |
date |
construction |
2028 - 2033 |
|
|
GAS DISTRIBUTION AND STORAGE |
|
|
|
|
|
|||
13. |
Moriah Energy Center6 |
100% |
US$0.6 billion |
US$409 million |
Under construction |
2027 |
|
|
14. |
T-15 Reliability Project6,7 |
100% |
US$0.7 billion |
US$181 million |
Under construction |
2027 - 2028 |
|
|
RENEWABLE POWER GENERATION |
|
|
|
|
|
|||
15. |
Sequoia Solar |
100% |
US$1.1 billion |
US$1.0 billion |
Various stages |
|
2026 |
|
16. |
Clear Fork Solar |
100% |
US$0.9 billion |
US$361 million |
Under construction |
|
2027 |
|
17. |
Easter |
100% |
US$0.4 billion |
US$180 million |
Under construction |
2026 - 2027 |
|
|
18. |
Cowboy Phase 1 |
100% |
US$1.2 billion |
US$128 million |
Under construction |
|
2027 |
|
|
|
|
|
|
Pre- |
|
|
|
19. |
Cone |
100% |
US$0.7 billion |
US$58 million |
construction |
|
2027 |
|
|
Courseulles |
|
$1.0 billion |
$468 million |
Under |
|
|
|
20. |
Offshore Wind8 |
21.7% |
(€0.6 billion) |
(€315 million) |
construction |
2027 |
|
|
40
A full description of each of our material projects is provided in our annual report on Form 10-K for the year ended December 31, 2025. Material updates that have occurred since the date of filing of our Form 10-K are discussed below.
GAS TRANSMISSION
RENEWABLE POWER GENERATION
OTHER ANNOUNCED PROJECTS UNDER DEVELOPMENT
LIQUIDS PIPELINES
Line 5 Relocation Project
During the quarter, we sanctioned and began construction on the Line 5 Relocation Project in Wisconsin, which involves a 41-mile re-route of the existing pipeline system. Upon entering service, Recoverable Line 5 Capital will be added to the Mainline System's rate base. All key state and federal permits have been secured, including right-of-way agreements and the US Army Corps of Engineers (Army Corps) Clean Water Act permit. The project is expected to cost approximately US$1.0 billion and is targeted to enter service in early 2027. Refer to Legal and Other Updates for more information on this project.
41
LIQUIDITY AND CAPITAL RESOURCES
The maintenance of financial strength and flexibility is fundamental to our growth strategy, particularly in light of the significant number and size of capital projects currently secured or under development. Access to timely funding from capital markets could be limited by factors outside our control, including but not limited to, financial market volatility resulting from economic and political events both inside and outside North America. To mitigate such risks, we actively manage financial plans and strategies to help ensure we maintain sufficient liquidity to meet routine operating and future capital requirements.
In the near term, we generally expect to utilize cash from operations together with commercial paper issuances and/or credit facility draws and the proceeds of capital market offerings to fund liabilities as they become due, finance capital expenditures and acquisitions and fund debt retirements. We seek to maintain significant liquidity through access to committed credit facilities with a diversified group of banks and financial institutions to enable us to fund all anticipated requirements through periods of extended market disruptions without accessing the capital markets.
We have signed contracts committing to the purchase of services, pipe and other materials totaling approximately $6.3 billion, which are expected to be paid over the next five years.
Our financing plan is regularly updated to reflect evolving capital requirements and financial market conditions and identifies a variety of potential sources of debt and equity funding alternatives.
CAPITAL MARKET ACCESS
We enable access to capital markets, subject to market conditions, through maintenance of shelf prospectuses in the US and Canada that allow for issuances of long-term debt, equity and other forms of long-term capital when market conditions are attractive.
Credit Facilities and Liquidity
To ensure ongoing liquidity and to mitigate the risk of capital market disruption, we maintain access to funds through committed bank credit facilities and actively manage our bank funding sources to optimize pricing and other terms. The following table provides details of our committed credit facilities as at June 30, 2026:
|
Maturity1 |
Total |
|
Draws2 |
|
Available |
|
|||
(millions of Canadian dollars) |
|
|
|
|
|
|
|
|||
Enbridge Inc. |
2027-2049 |
|
8,045 |
|
|
6,866 |
|
|
1,179 |
|
Enbridge (U.S.) Inc. |
2027-2030 |
|
10,667 |
|
|
3,916 |
|
|
6,751 |
|
Enbridge Pipelines Inc. |
2027 |
|
2,000 |
|
|
1,996 |
|
|
4 |
|
Enbridge Gas Inc. |
2027 |
|
2,500 |
|
|
1,570 |
|
|
930 |
|
Total committed credit facilities |
|
|
23,212 |
|
|
14,348 |
|
|
8,864 |
|
In July 2026, we renewed our 364-day extendible credit facilities, extending the maturity dates to July 2028, which includes a one-year term out provision from July 2027. We also renewed our five-year credit facilities, extending the maturity dates to July 2031. Further, we extended the maturity dates of our three-year credit facilities to July 2029.
In addition to the committed credit facilities noted above, we maintain $1.6 billion of uncommitted demand letter of credit facilities, of which $885 million was unutilized as at June 30, 2026. As at December 31, 2025, we had $1.6 billion of uncommitted demand letter of credit facilities, of which $932 million was unutilized.
42
As at June 30, 2026, our net available liquidity totaled $10.9 billion (December 31, 2025 - $10.8 billion), consisting of available credit facilities of $8.9 billion (December 31, 2025 - $9.7 billion) and unrestricted cash and cash equivalents of $2.0 billion (December 31, 2025 - $1.1 billion) as reported in the Consolidated Statements of Financial Position.
Our credit facility agreements and term debt indentures include standard events of default and covenant provisions whereby accelerated repayment and/or termination of the agreements may result if we were to default on payment or violate certain covenants. As at June 30, 2026, we were in compliance with all such debt covenant provisions.
LONG-TERM DEBT ISSUANCES
During the six months ended June 30, 2026, we completed the following long-term debt issuances totaling $2.0 billion and US$2.0 billion:
Company |
Issuance Date |
|
|
Principal |
(millions of Canadian dollars, unless otherwise stated) |
||||
Enbridge Inc. |
||||
|
February 2026 |
3.57% |
medium-term notes due February 2031 |
$850 |
|
February 2026 |
4.35% |
medium-term notes due February 2036 |
$850 |
|
February 2026 |
5.10% |
medium-term notes due February 2056 |
$300 |
|
March 2026 |
4.85% |
senior notes due March 2031 |
US$1,000 |
|
March 2026 |
5.45% |
senior notes due March 2036 |
US$1,000 |
LONG-TERM DEBT REPAYMENTS
During the six months ended June 30, 2026, we completed the following long-term debt repayments totaling $655 million, US$64 million and €22 million:
Company |
Repayment Date |
|
|
Principal |
(millions of Canadian dollars, unless otherwise stated) |
||||
Enbridge Gas Inc. |
||||
|
June 2026 |
2.81% |
medium-term notes |
$250 |
Enbridge Pipelines (Southern Lights) L.L.C. |
||||
|
June 2026 |
3.98% |
senior notes |
US$14 |
Enbridge Pipelines Inc. |
||||
|
May 2026 |
3.00% |
medium-term notes1 |
$400 |
Enbridge Southern Lights LP |
||||
|
June 2026 |
4.01% |
senior notes |
$5 |
Blauracke GmbH |
||||
|
April 2026 |
2.10% |
senior notes |
€22 |
Public Service Company of North Carolina, Incorporated |
||||
|
January 2026 |
6.99% |
debentures |
US$50 |
Cash flow growth, ready access to liquidity from diversified sources and a stable business model have enabled us to manage our credit profile. We actively monitor and manage key financial metrics with the objective of sustaining investment grade credit ratings from the major credit rating agencies and ongoing access to bank funding and term debt capital on attractive terms. Key measures of financial strength that are closely managed include the ability to service debt obligations from operating cash flow and the ratio of debt to EBITDA.
There are no material restrictions on our cash. Total Restricted cash of $58 million, as reported in the Consolidated Statements of Financial Position, primarily includes reinsurance security, cash collateral, future pipeline abandonment costs collected and held in trust, amounts received in respect of specific shipper commitments and capital projects. Cash and cash equivalents held by certain subsidiaries may not be readily accessible for alternative uses by us.
43
Excluding current maturities of long-term debt, as at June 30, 2026 and December 31, 2025, we had negative working capital positions of $146 million and $2.8 billion, respectively. During both the six months ended June 30, 2026, and the year ended December 31, 2025, the major contributing factor to the negative working capital position was the current liabilities associated with our growth capital program.
SOURCES AND USES OF CASH
|
Six months ended June 30, |
|
||||
|
2026 |
|
2025 |
|
||
(millions of Canadian dollars) |
|
|
|
|
||
Operating activities |
|
6,453 |
|
|
6,291 |
|
Investing activities |
|
(5,895 |
) |
|
(4,648 |
) |
Financing activities |
|
288 |
|
|
(2,166 |
) |
Effect of translation of foreign denominated cash and cash equivalents and restricted cash |
|
46 |
|
|
(55 |
) |
Net change in cash and cash equivalents and restricted cash |
|
892 |
|
|
(578 |
) |
Significant sources and uses of cash for the six months ended June 30, 2026 and 2025 are summarized below:
Operating Activities
The primary factors impacting cash provided by operating activities period-over-period include changes in our operating assets and liabilities in the normal course due to various factors, including the impact of fluctuations in commodity prices and activity levels on working capital within our business segments, the timing of tax payments and cash receipts and payments generally. Cash provided by operating activities is also impacted by changes in earnings and certain infrequent or other non-operating factors, as discussed in Results of Operations, as well as Distributions from equity investments.
Investing Activities
Cash used in investing activities includes capital expenditures to execute our capital program, which is further described in Growth Projects - Commercially Secured Projects. The timing of project approval, construction and in-service dates impacts the timing of cash requirements. Cash used in investing activities is also impacted by acquisitions, dispositions and changes in contributions to, and distributions from, our equity investments. The increase in cash used in investing activities period-over-period was primarily due to higher capital expenditures, partially offset by a decrease in contributions to equity investments.
Financing Activities
Cash provided by financing activities primarily relates to issuances and repayments of external debt, as well as transactions with our common and preference shareholders relating to dividends, share issuances, and share redemptions. Cash provided by financing activities is also impacted by changes in distributions to, and contributions from, noncontrolling interests and redeemable noncontrolling interest. The increase in cash provided by financing activities period-over-period was primarily due to:
44
SUMMARIZED FINANCIAL INFORMATION
On January 22, 2019, Enbridge entered into supplemental indentures with its wholly-owned subsidiaries, SEP and EEP (together, the Partnerships), pursuant to which Enbridge fully and unconditionally guaranteed, on a senior unsecured basis, the payment obligations of the Partnerships with respect to the outstanding series of notes issued under the respective indentures of the Partnerships. Concurrently, the Partnerships entered into a subsidiary guarantee agreement pursuant to which they fully and unconditionally guaranteed, on a senior unsecured basis, the outstanding series of senior notes of Enbridge. The Partnerships have also entered into supplemental indentures with Enbridge pursuant to which the Partnerships have issued full and unconditional guarantees, on a senior unsecured basis, of senior notes issued by Enbridge subsequent to January 22, 2019. On June 16, 2026, all outstanding series of EPI Notes were exchanged for an equal principal amount of newly issued Enbridge Notes, with financial terms identical to those of the EPI Notes and which are unconditionally guaranteed by the Partnerships. As a result of the guarantees, holders of any of the outstanding guaranteed notes of the Partnerships (the Guaranteed Partnership Notes) are in the same position with respect to the net assets, income and cash flows of Enbridge as holders of Enbridge's outstanding guaranteed notes (the Guaranteed Enbridge Notes), and vice versa. Other than the Partnerships, Enbridge subsidiaries (including the subsidiaries of the Partnerships, collectively, the Subsidiary Non-Guarantors), are not parties to the subsidiary guarantee agreement and have not otherwise guaranteed any of Enbridge's outstanding series of notes.
Consenting SEP notes and EEP notes under Guarantees
SEP Notes1 |
EEP Notes2 |
3.38% Senior Notes due 2026 |
5.95% Notes due 2033 |
5.95% Senior Notes due 2043 |
6.30% Notes due 2034 |
4.50% Senior Notes due 2045 |
7.50% Notes due 2038 |
|
5.50% Notes due 2040 |
|
7.38% Notes due 2045 |
45
Enbridge Notes under Guarantees
USD Denominated1 |
CAD Denominated2 |
1.60% Senior Notes due 2026 |
3.20% Senior Notes due 2027 |
5.90% Senior Notes due 2026 |
5.70% Senior Notes due 2027 |
4.25% Senior Notes due 2026 |
6.55% Senior Notes due 2027 |
5.25% Senior Notes due 2027 |
3.55% Senior Notes due 2028 |
3.70% Senior Notes due 2027 |
4.90% Senior Notes due 2028 |
4.60% Senior Notes due 2028 |
6.10% Senior Notes due 2028 |
6.00% Senior Notes due 2028 |
Floating Rate Senior Notes due 2028 |
4.20% Senior Notes due 2028 |
6.05% Senior Notes due 2029 |
5.30% Senior Notes due 2029 |
3.52% Senior Notes due 2029 |
3.13% Senior Notes due 2029 |
6.50% Senior Notes due 2029 |
4.90% Senior Notes due 2030 |
2.99% Senior Notes due 2029 |
6.20% Senior Notes due 2030 |
4.21% Senior Notes due 2030 |
4.50% Senior Notes due 2031 |
3.90% Senior Notes due 2030 |
4.85% Senior Notes due 2031 |
7.22% Senior Notes due 2030 |
5.70% Sustainability-Linked Senior Notes due 2033 |
3.57% Senior Notes due 2031 |
2.50% Sustainability-Linked Senior Notes due 2033 |
2.82% Senior Notes due 2031 |
5.63% Senior Notes due 2034 |
7.20% Senior Notes due 2032 |
5.55% Senior Notes due 2035 |
6.10% Sustainability-Linked Senior Notes due 2032 |
5.20% Senior Notes due 2035 |
5.36% Sustainability-Linked Senior Notes due 2033 |
5.45% Senior Notes due 2036 |
3.10% Sustainability-Linked Senior Notes due 2033 |
4.50% Senior Notes due 2044 |
4.73% Senior Notes due 2034 |
5.50% Senior Notes due 2046 |
4.56% Senior Notes due 2035 |
4.00% Senior Notes due 2049 |
5.57% Senior Notes due 2035 |
3.40% Senior Notes due 2051 |
4.35% Senior Notes due 2036 |
6.70% Senior Notes due 2053 |
5.08% Senior Notes due 2036 |
5.95% Senior Notes due 2054 |
5.75% Senior Notes due 2039 |
|
5.35% Senior Notes due 2039 |
|
5.33% Senior Notes due 2040 |
|
5.12% Senior Notes due 2040 |
|
4.24% Senior Notes due 2042 |
|
4.55% Senior Notes due 2043 |
|
4.57% Senior Notes due 2044 |
|
4.87% Senior Notes due 2044 |
|
4.55% Senior Notes due 2045 |
|
4.13% Senior Notes due 2046 |
|
4.33% Senior Notes due 2049 |
|
4.20% Senior Notes due 2051 |
|
4.10% Senior Notes due 2051 |
|
6.51% Senior Notes due 2052 |
|
5.76% Senior Notes due 2053 |
|
5.82% Senior Notes due 2053 |
|
5.32% Senior Notes due 2054 |
|
5.10% Senior Notes due 2056 |
|
4.56% Senior Notes due 2064 |
Rules 3-10 and 13-01 of the US SEC Regulation S-X, together with Exchange Act Rule 12h-5, provide an exemption from the reporting requirements of the Exchange Act for fully consolidated subsidiary issuers of guaranteed securities and subsidiary guarantors and allow for summarized financial information in lieu of filing separate financial statements for each of the Partnerships.
46
The following Summarized Combined Statement of Earnings and Summarized Combined Statements of Financial Position combine the balances of SEP, EEP and Enbridge.
Summarized Combined Statement of Earnings
Six months ended June 30, |
2026 |
|
|
(millions of Canadian dollars) |
|
|
|
Operating loss |
|
(63 |
) |
Earnings |
|
688 |
|
Earnings attributable to common shareholders |
|
476 |
|
Summarized Combined Statements of Financial Position
|
June 30, |
|
December 31, |
|
||
(millions of Canadian dollars) |
|
|
|
|
||
Cash and cash equivalents |
|
432 |
|
|
391 |
|
Accounts receivable from affiliates |
|
4,092 |
|
|
3,873 |
|
Short-term loans receivable from affiliates |
|
4,266 |
|
|
6,239 |
|
Other current assets |
|
421 |
|
|
467 |
|
Long-term loans receivable from affiliates |
|
53,535 |
|
|
46,858 |
|
Other long-term assets |
|
2,320 |
|
|
1,994 |
|
Accounts payable to affiliates |
|
1,887 |
|
|
2,079 |
|
Short-term loans payable to affiliates |
|
2,568 |
|
|
2,082 |
|
Trade payables and accrued liabilities |
|
406 |
|
|
537 |
|
Other current liabilities |
|
7,684 |
|
|
6,990 |
|
Long-term loans payable to affiliates |
|
33,210 |
|
|
34,488 |
|
Other long-term liabilities |
|
75,911 |
|
|
67,004 |
|
The Guaranteed Enbridge Notes and the Guaranteed Partnership Notes are structurally subordinated to the indebtedness of the Subsidiary Non-Guarantors in respect of the assets of those Subsidiary Non-Guarantors.
Under US bankruptcy law and comparable provisions of state fraudulent transfer laws, a guarantee can be voided, or claims may be subordinated to all other debts of that guarantor if, among other things, the guarantor, at the time the indebtedness evidenced by its guarantee or, in some states, when payments become due under the guarantee:
The guarantees of the Guaranteed Enbridge Notes contain provisions to limit the maximum amount of liability that the Partnerships could incur without causing the incurrence of obligations under the guarantee to be a fraudulent conveyance or fraudulent transfer under US federal or state law.
Each of the Partnerships is entitled to a right of contribution from the other Partnership for 50% of all payments, damages and expenses incurred by that Partnership in discharging its obligations under the guarantees for the Guaranteed Enbridge Notes.
47
Under the terms of the guarantee agreement and applicable supplemental indentures, the guarantees of either of the Partnerships of any Guaranteed Enbridge Notes will be unconditionally released and discharged automatically upon the occurrence of any of the following events:
The guarantee obligations of Enbridge will terminate with respect to any series of Guaranteed Partnership Notes if that series is discharged or defeased.
The Partnerships also guarantee the obligations of Enbridge under its existing credit facilities.
LEGAL AND OTHER UPDATES
LINE 5 EASEMENT - BAD RIVER BAND
This is a federal lawsuit in the US District Court for the Western District of Wisconsin (the Court) brought by the Bad River Band of the Lake Superior Tribe of Chippewa Indians of the Bad River Reservation (the Band) against Enbridge and certain of its pipeline subsidiaries. The case concerns Enbridge’s continued operation of Line 5 across the Bad River Reservation after certain easements expired in 2013.
The Band asserts claims in trespass and public nuisance and seeks ejectment (removal of the pipeline), along with monetary compensation for past and ongoing use of Reservation lands. Enbridge disputes the trespass finding, the availability of shutdown and removal remedies and asserts, among other things, that federal pipeline safety law preempts such relief, that continued operations do not present an imminent threat, and that treaty and foreign affairs considerations limit the remedies available.
In September 2022, the Court issued summary-judgment rulings that resolved several claims and determined that Enbridge was trespassing on certain Reservation parcels, while declining to order an immediate shutdown or removal of the pipeline. A bench trial was held in October 2022 on the remaining issues, including nuisance, injunctive relief, and the appropriate monetary remedy for trespass.
In June 2023, the Court issued a final order awarding US$5.1 million as compensation for past trespass, requiring ongoing quarterly payments while Line 5 operates without valid rights-of-way, imposing monitoring and shutdown requirements, and ordering Line 5 to cease operating on any parcel lacking a valid right-of-way by June 16, 2026. The Court stayed the shutdown order pending the appellate decision.
Enbridge and the Band have filed a consolidated appeal and cross-appeal in the US Court of Appeals for the Seventh Circuit (Seventh Circuit) addressing liability and remedies. Upon request by the Seventh Circuit, the US Government filed a brief in the appeal as amicus curiae to address the effect of the 1977 Transit Pipelines Treaty. The Seventh Circuit issued its decision on July 30, 2026, dismissing the public nuisance claim, affirming Enbridge is in trespass, and remanding all remedies to the US District Court. Refer to Other Announced Projects under Development for more information on the Line 5 relocation project.
48
DAKOTA ACCESS PIPELINE
We hold an effective 27.6% interest in the Bakken Pipeline System, which includes the Dakota Access Pipeline (DAPL). The Standing Rock Sioux Tribe and the Cheyenne River Sioux Tribe filed lawsuits in 2016 with the US Court for the District of Columbia (the District Court) challenging the Army Corps' easement for DAPL, citing concerns over the adequacy of the Army Corps' environmental review and tribal consultation process. The Oglala Sioux and Yankton Sioux Tribes also filed lawsuits alleging similar claims in 2018. In 2017 and again in 2020, the District Court found deficiencies in the Army Corps' environmental assessments and ordered the preparation of a full Environmental Impact Statement (EIS).
In July 2020, the District Court vacated the easement and ordered the pipeline shut down, but that order was stayed by the US Court of Appeals for the District of Columbia. In January 2021, the US Court of Appeals upheld the requirement for an EIS and confirmed the easement's vacatur, though it ruled that DAPL could continue operating absent an injunction. The US Supreme Court declined to review the case, and the Army Corps indicated it would not seek to halt operations during the review process.
On September 8, 2023, the Army Corps released a draft EIS evaluating five alternatives, including continued operation, shutdown, rerouting, and removal of the pipeline. No preferred alternative was identified. The public comment period closed on December 13, 2023.
On December 19, 2025, the Army Corps published the final EIS for DAPL. The final EIS includes an extensive analysis of spill risks from the pipeline, including the pipeline safety record of Energy Transfer Crude Oil Pipeline. The final EIS identified continued operation of the existing pipeline with additional conditions as the preferred alternative. On May 21, 2026, the Army Corps issued the final Record of Decision, which permits continued operations with additional conditions that include groundwater monitoring and leak detection.
Separately, on October 15, 2024, the Standing Rock Sioux Tribe filed a new complaint in the District Court seeking a permanent injunction against DAPL's operation, alleging that the Army Corps is unlawfully allowing continued operations without a valid easement or compliant Facility Response Plan. Dakota Access, LLC and 13 states intervened in support of continued operations. On March 28, 2025, the District Court dismissed the complaint. The Tribe filed a notice of appeal on May 27, 2025, and, on June 14, 2026, filed an unopposed motion to dismiss its appeal.
OTHER LITIGATION
We and our subsidiaries are subject to various other legal and regulatory actions and proceedings which arise in the normal course of business, including interventions in regulatory proceedings and challenges to regulatory approvals and permits. While the final outcome of such actions and proceedings cannot be predicted with certainty, management believes that the resolution of such actions and proceedings will not have a material impact on our consolidated financial position or results of operations.
CHANGES IN ACCOUNTING POLICIES
Refer to Part I. Item 1. Financial Statements - Note 2 - Changes in Accounting Policies.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our exposure to market risk is described in Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk of our annual report on Form 10-K for the year ended December 31, 2025. We believe our exposure to market risk has not changed materially since then.
49
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed by us in the reports filed with, or submitted to, securities regulatory authorities, including under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified under Canadian and US securities law. Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurance that information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Under the supervision of and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as at June 30, 2026, and based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these controls and procedures are effective in ensuring that information required to be disclosed by us in reports that we file with or submit to the SEC and the Canadian Securities Administrators is recorded, processed, summarized and reported within the time periods required.
Changes in Internal Control over Financial Reporting
Under the supervision of and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, we have evaluated changes in internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fiscal quarter ended June 30, 2026 and found no change that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We are involved in various legal and regulatory actions and proceedings which arise in the ordinary course of business. While the final outcome of such actions and proceedings cannot be predicted with certainty, management believes that the resolution of such actions and proceedings will not have a material impact on our consolidated financial position or results of operations. Refer to Part I. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Legal and Other Updates for discussion of certain legal proceedings with recent developments.
SEC regulations require the disclosure of any proceeding under environmental laws to which a governmental authority is a party unless the registrant reasonably believes it will not result in monetary sanctions over a certain threshold. Given the size of our operations, we have elected to use a threshold of US$1 million for the purposes of determining proceedings requiring disclosure. We have no such proceedings to disclose in this quarterly report.
50
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this report, careful consideration should be given to the factors discussed in Part I. Item 1A. Risk Factors of our annual report on Form 10-K for the year ended December 31, 2025, as updated by Part II. Item 1A. Risk Factors of our interim report on Form 10-Q for the quarter ended March 31, 2026, which could materially affect our financial condition or future results. There have been no material modifications to those risk factors, other than as set forth below.
The effects of US, Canadian and other governments' policies on tariffs and trade relations are uncertain and could adversely impact our business, operations or financial results.
Tariffs and other trade measures announced, imposed, modified, suspended, terminated or replaced by the US, together with potential, announced or implemented retaliatory tariffs by other governments on imports from the US, and other potential measures, including duties, fees, economic sanctions or other trade measures, as well as the potential impacts of these tariffs and trade measures, present significant risks to our business operations and financial results. Such measures may include, among other tariffs or surcharges on certain goods that do not qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA), global tariffs on steel, aluminum and other metals, and other periodic retaliatory tariffs or trade measures affecting Canada.
Several of the US tariff announcements have been followed by announcements of limited exemptions, temporary pauses on implementation dates and litigation. In response to the US tariff announcements, certain governments have threatened or announced retaliatory measures against the US and/or are in the process of negotiating with the US on tariff agreements. In addition, while in February 2026, the US Supreme Court ruled that the US President did not have authority to impose certain tariffs and trade measures on an "emergency" basis, the US administration is pursuing other means of imposing tariffs. These announcements and activities have led to significant uncertainty and market volatility.
If maintained, such trade measures, the nature, extent and timing of which are uncertain, and the potential for escalation of trade disputes, including retaliatory measures, could lead to, among other things, worsening of macroeconomic conditions, inflationary pressures, increased construction costs, costs to maintain our assets and other costs and expenses, as well as to potential reductions in demand for US and/or Canadian energy. The measures also introduce uncertainty in North American energy and capital markets and have the potential to disrupt supply chains and access to capital markets and jeopardize our competitiveness.
On July 1, 2026, the formal review period for USMCA began with the US Government announcing its intent not to renew the agreement without changes. As a result, the USMCA is not renewed; however, the agreement remains in force pending resolution of these issues or until the agreement’s termination in 2036. Results of these negotiations could further impact the energy market and our business.
Any of the foregoing could significantly adversely impact our business, operations or financial results.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
51
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
OFFICERS AND DIRECTORS TRADING ARRANGEMENTS
Certain of our officers and directors have made elections to participate in, and are participating in, our compensation and benefit plans involving Enbridge securities, such as our 401(k) plan and directors' compensation plan, and may from time to time make elections which may be designed to satisfy the affirmative defense conditions of Rule 10b5-1 under the Exchange Act or may constitute non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K). During the second quarter of 2026, none of our directors or officers
52
ITEM 6. EXHIBITS
Each exhibit identified below is included as a part of this quarterly report. Exhibits included in this filing are designated by an asterisk ("*"); all exhibits not so designated are incorporated by reference to a prior filing as indicated.
Exhibit No. |
|
Description |
4.1 |
|
Shareholder Rights Plan Agreement between Enbridge Inc. and Computershare Trust Company of Canada dated as of November 9, 1995 and Amended and Restated as of May 6, 2026 (incorporated by reference to Exhibit 4.1 to Enbridge’s Current Report on Form 8-K filed May 7, 2026) |
4.2* |
|
Trust Indenture between IPL Energy Inc. and Montreal Trust Company of Canada dated as of October 20, 1997 |
4.3* |
|
Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.), Montreal Trust Company of Canada, and Computershare Trust Company of Canada dated as of November 28, 2001 |
4.4* |
|
Second Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of December 21, 2011 |
4.5* |
|
Third Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of September 26, 2017 |
4.6* |
|
Fourth Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of April 12, 2018 |
4.7* |
|
Fifth Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.), Spectra Energy Partners, LP, Enbridge Energy Partners, L.P., and Computershare Trust Company of Canada dated as of June 20, 2019 |
4.8* |
|
Sixth Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of January 19, 2022 |
4.9* |
|
Seventh Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of September 29, 2023 |
4.10* |
|
Eighth Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of September 29, 2023 |
4.11* |
|
Ninth Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of February 14, 2025 |
4.12* |
|
Tenth Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of September 17, 2025 |
22.1* |
|
Subsidiary Guarantors |
31.1* |
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2* |
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1* |
|
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2* |
|
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.SCH* |
|
Inline XBRL Taxonomy Extension Schema Document. |
101.CAL* |
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF* |
|
Inline XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB* |
|
Inline XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE* |
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
104 |
|
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document (included in Exhibit 101) |
53
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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Date: |
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July 31, 2026 |
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By: |
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/s/ Gregory L. Ebel |
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Gregory L. Ebel |
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President and Chief Executive Officer |
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(Principal Executive Officer) |
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Date: |
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July 31, 2026 |
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By: |
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/s/ Patrick R. Murray |
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Patrick R. Murray |
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Executive Vice President and Chief Financial Officer |
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(Principal Financial Officer) |
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