ENB

Shares of Enbridge (NYSE: ENB) are down about 7% over the past month, after the midstream company reported disappointing second-quarter earnings. While there were some causes for alarm in the report, most notably its debt level, the Canadian utility infrastructure company remains a favorite among income investors. Enbridge has more than 18,000 miles of crude pipeline and more than 19,373 miles of natural gas pipelines. It transports roughly 30% of the crude oil produced in North America and delivers nearly 20% of the natural gas consumed in the U.S. It is also involved in renewable energy, with solar and wind power operations. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » I've owned the stock for more than two years, and it has delivered a total return of more than 67% in that time. I'm not jumping ship any time soon. Here are three reasons why I'm holding onto this utility stock. At its current share price, Enbridge's dividend yield stands at around 5.47%, more than five times the average S&P 500 dividend. The company raised its quarterly dividend by 3% this year to $0.97 per share, marking the 31st consecutive year of dividend increases. Enbridge is the largest natural gas utility by volume in North America. As a result, 98% of its cash flow is bolstered by long-term, rate-regulated contracts with built-in inflation adjustments. The company has said it intends to maintain a distributable cash flow (DCF) payout range of 60% to 70% to keep the dividend safe. The company reported second-quarter adjusted earnings per share (EPS) of CA$0.63, down 3% year over year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) were up only 2% over the same period last year, to CA$4.77 billion. Thanks to expenditures for new projects, the company's debt-to-EBITDA level is around 6.328, the highest it has been in three years. While that level of debt could weigh on earnings for a while, it's important to recognize that the additional spending will pay off, and Enbridge's new energy infrastructure projects should lead to long-term revenue growth. The good news is Enbridge continues to grow its DCF -- it rose 35.2% year over year to CA$2.9 billion in the second quarter. That means the company's dividend is well covered, giving investors reason to breathe easy as they wait for the new projects to start paying off. The company also predicts that its yearly DCF will increase to CA$5.70-CA$6.10, up 3.5% at the midpoint, and that yearly adjusted EBITDA will be between CA$20.2 billion and CA$20.8 billion, up 4% at the midpoint. The company is focusing on expanding its business. That includes its 2023 purchase of natural gas utilities from Dominion Energy (NYSE: D) and its ongoing pipeline expansions, including the Sunrise Expansion in the Pacific Northwest and the expansion of its 348-mile Vector Pipeline that runs from Eastern Canada to key energy needs in the U.S. Midwest. On the data center front, Enbridge is actively exploring more than 50 power utility deals to connect natural gas infrastructure to regional power grids and data centers. Enbridge is spending money to make money in the future, and while additional loan payments may wear on its earnings for now, the completed projects should help deliver increased revenue for decades. Before you buy stock in Enbridge, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enbridge wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,040!* Now, it’s worth noting Stock Advisor’s total average return is 969% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 18, 2026. James Halley has positions in Enbridge. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy. I Own Enbridge for the Yield, Not the Growth Story. Here's Why This Quarter Didn't Change My Mind. was originally published by The Motley Fool

Enbridge Inc. ENB reported second-quarter 2026 adjusted earnings of 46 cents per share, down 3.1% from 47 cents a year ago. The bottom line surpassed the Zacks Consensus Estimate of 43 cents by 6.98%. Revenues increased 97.1% to $21.2 billion from $10.8 billion in the prior-year quarter. The top line surpassed the consensus estimate of $10.8 billion by 96.3%. The better-than-expected results were driven by high utilization across Enbridge’s four businesses. Mainline throughput averaged roughly 3.1 million barrels per day (MMBbl/d), up from 3 MMBbl/d a year earlier. Enbridge Inc price-consensus-eps-surprise-chart | Enbridge Inc Quote Liquids Pipelines generated adjusted earnings before interest, income taxes and depreciation, and amortization (EBITDA) of C$2.34 billion, largely consistent with C$2.34 billion in the prior-year quarter. Higher Mainline, Line 9 and Seaway volumes, along with optimization initiatives, supported the business. Lower Line 9 tolls partly offset these gains. Adjusted EBITDA from the Mainline and Market Access Systems rose 5.1% to C$1.6 billion. Average ex-Gretna Mainline throughput increased 3.6% to 3.07 MMBbl/d. However, the Regional Oil Sands and Express-Platte Systems contribution declined to C$351 million from C$376 million. Enbridge placed the Houston Oil Terminal into service during the quarter. It sanctioned the C$1 billion Wisconsin Line 5 Relocation project, which is under construction and expected to enter service in early 2027. Gas Transmission adjusted EBITDA increased 2.7% to C$1.4 billion. U.S. Gas Transmission contributed C$1.2 billion, up 7% from the year-ago quarter, reflecting favorable rate outcomes at East Tennessee and a phased increase from the Texas Eastern rate settlement. Canadian Gas Transmission adjusted EBITDA declined to C$143 million from C$150 million. Contributions from other gas assets fell to C$103 million from C$136 million. During the quarter, ENB began commissioning the Blackcomb natural gas pipeline and remained on track to begin full service by year-end. The company sanctioned the Bay Runner Twin project to serve additional liquefaction capacity at Rio Grande LNG. Gas Distribution and Storage adjusted EBITDA rose 4.5% to C$878 million. The U.S. gas utilities generated C$380 million, up 13.4%, primarily due to higher base rates following recent proceedings for Enbridge Gas Utah and Enbridge Gas North Carolina. Enbridge Gas Ontario’s adjusted EBITDA declined 3.6% to C$481 million. Its adjusted earnings increased to C$166 million from C$153 million due to lower depreciation, interest and income tax expenses. Renewable Power Generation adjusted EBITDA advanced 9.2% to C$131 million. Enbridge is constructing more than 2 gigawatts of generation capacity across North America and Europe. The Sequoia Solar project remains scheduled to enter full service by the end of 2026. Adjusted EBITDA increased 2.8% year over year to C$4.8 billion. Adjusted earnings declined 2.5% to C$1.4 billion as higher depreciation from newly commissioned assets and increased interest expense offset operating growth. Distributable cash flow ("DCF") increased 1.6% to C$2.95 billion. DCF per share rose to C$1.35 from C$1.33, aided by the increase in operating performance and lower maintenance capital expenditures. Maintenance capital expenditure declined to C$227 million from C$316 million. This benefit was partly offset by a rise in interest expense, net of capitalized interest, to C$1.3 billion from C$1.2 billion. Enbridge ended June 2026 with cash and cash equivalents of $2 billion. Long-term debt was $103.9 billion, while short-term debt totaled $10.1 billion. The company continues to fund the equity portion of its growth program internally. Enbridge returned C$4.2 billion through common-share dividends during the first six months of 2026, up from C$4.1 billion in the prior-year period. Management reaffirmed the 2026 financial guidance issued in December. Favorable contracting across Gas Transmission and strong Seaway performance provide support, while lower market-access contributions and higher U.S. interest rates remain headwinds. Enbridge has a C$41 billion secured capital backlog and sanctioned approximately C$9 billion of projects during 2026. The company remains on track to secure as much as C$20 billion of new projects during 2026 and 2027, supported by opportunities across liquids pipelines, natural gas infrastructure, utilities and renewable power. Enbridge currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the energy sector are PBF Energy Inc. PBF, HF Sinclair Corporation DINO and Cactus, Inc. WHD. PBF sports a Zacks Rank #1 (Strong Buy), while DINO and WHD carry a Zacks Rank #2 (Buy) each, at present. You can see the complete list of today’s Zacks Rank #1 stocks here. PBF reported second-quarter 2026 adjusted earnings of $6.22 per share, surpassing the Zacks Consensus Estimate of $4.05. As of June 30, 2026, PBF had total debt of $1.75 billion, and cash and cash equivalents of $894.1 million. HF Sinclair reported second-quarter 2026 adjusted earnings of $5.31 per share, topping the Zacks Consensus Estimate of $4.39. As of June 30, 2026, DINO had total debt of $2.77 billion, and cash and cash equivalents of $2.26 billion. Cactus reported second-quarter 2026 adjusted earnings of 93 cents per share, surpassing the Zacks Consensus Estimate of 71 cents. As of June 30, 2026, WHD had cash and cash equivalents of $365 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enbridge Inc (ENB) : Free Stock Analysis Report PBF Energy Inc. (PBF) : Free Stock Analysis Report Cactus, Inc. (WHD) : Free Stock Analysis Report HF Sinclair Corporation (DINO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Enbridge Inc. ENB used its second-quarter 2026 earnings call to emphasize the range of growth opportunities emerging across its liquids, natural gas, utility and renewable power businesses. Management highlighted strong asset utilization, a growing project backlog and improving industry fundamentals as key factors supporting its outlook. Executives also stressed that rising power demand, LNG development and supportive energy policies are creating one of the most favorable growth environments the company has seen in years. The discussion focused less on quarterly fluctuations and more on long-term infrastructure investment opportunities. Enbridge reported second-quarter earnings of $0.46 per share, which exceeded the Zacks Consensus Estimate of $0.43 per share. Revenues totaled $21.18 billion, which outpaced the Zacks Consensus Estimate of $10.85 billion, reflecting better-than-expected top-line performance during the quarter. Enbridge Inc price-consensus-eps-surprise-chart | Enbridge Inc Quote President and CEO Greg Ebel said the company finished the first half of 2026 with solid operating performance and remains on track to achieve its full-year guidance. High utilization across all four business segments continued to support results. Management pointed to strong Mainline volumes averaging 3.1 million barrels per day during the quarter. The company also advanced several major projects, including commissioning activities on the Blackcomb pipeline and the startup of the Enbridge Houston Oil Terminal. Chief financial officer Patrick Murray reaffirmed 2026 guidance, citing favorable contracting trends in gas transmission assets and strong performance from Seaway operations. Ebel described the current environment as one of the strongest growth periods for the energy infrastructure sector in recent memory. The company highlighted roughly $50 billion of organic growth opportunities through 2030. During the call, management noted that approximately $9 billion of capital projects have already been sanctioned in 2026. Enbridge expects to secure up to $20 billion of additional projects during the 2026-2027 period. Executives said demand is emerging across multiple markets, including LNG exports, power generation, data centers and utility infrastructure, creating opportunities across the company’s diversified asset base. Management devoted significant attention to the outlook for liquids transportation. Ebel said improving policy support in Canada and stronger producer confidence are creating conditions for additional infrastructure investment. The company sanctioned the Wisconsin Line 5 Relocation project during the quarter and continues advancing Mainline optimization initiatives designed to expand capacity and improve system reliability. During the analyst question-and-answer session, Scotiabank asked about the evolution of the Mainline Optimization 2 project. Management explained that the project is being resequenced to focus initially on downstream market-access opportunities while producers finalize longer-term production commitments. Gas transmission remained one of the most discussed themes on the call. Management cited strong demand from LNG facilities, utilities, industrial customers and power-generation markets. The company signed an exclusive option agreement to acquire the TTC Connector Pipeline, which would strengthen its Gulf Coast footprint and connect gas storage assets to Freeport LNG. A Citigroup analyst asked about Project Beacon in the Northeast. Management said customer interest significantly exceeded expectations and indicated that additional phases or expansions could eventually be considered, subject to commercial and permitting progress. Renewable power also emerged as an important growth platform. Management highlighted more than 2 gigawatts of generation currently under construction across North America and Europe. Executives emphasized the company’s growing relationship with Meta, which now spans four projects involving solar, wind and battery-storage development. During the Q&A session, management said the renewables portfolio continues to benefit from strong customer demand and long-term contracted cash flows, while remaining part of a broader all-of-the-above energy strategy. Murray said Enbridge exited the quarter with debt-to-EBITDA of 5.1 times, though foreign-exchange impacts affected the reported figure. Adjusted for currency movements, leverage would have been within the company’s target range. Management reiterated its commitment to self-funding growth through equity and maintaining a disciplined capital-allocation framework. Executives also highlighted a $41 billion secured capital backlog that provides visibility into future growth and supports continued dividend expansion. The overarching message from management was one of confidence in the company’s diversified business model and expanding opportunity set. Executives repeatedly pointed to strong customer demand, favorable infrastructure fundamentals and a growing inventory of projects across liquids, natural gas, utilities and renewable power. Rather than emphasizing quarterly results, the call centered on Enbridge’s ability to convert its extensive asset footprint and customer relationships into long-term growth investments. ENB currently carries a Zacks Rank #4 (Sell). Under the Zacks framework, lower-ranked stocks generally reflect less favorable earnings estimate revision trends than higher-ranked peers. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock also holds a Momentum Score of A, while its Value Score is D, Growth Score is F and VGM Score is D. According to the Zacks Style Scores methodology, stronger Style Scores can complement a favorable Zacks Rank, though earnings estimate revisions remain the primary driver of the ranking system. Investors should remember that Zacks Rank and Style Scores can change as analysts revise earnings estimates following the company’s latest quarterly results and management commentary. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enbridge Inc (ENB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Enbridge (ENB) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.98%. A quarter ago, it was expected that this oil and natural gas transportation and power transmission company would post earnings of $0.69 per share when it actually produced earnings of $0.71, delivering a surprise of +2.9%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Enbridge, which belongs to the Zacks Oil and Gas - Production and Pipelines industry, posted revenues of $21.18 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 95.21%. This compares to year-ago revenues of $10.75 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Enbridge shares have added about 15.9% since the beginning of the year versus the S&P 500's gain of 8.7%. While Enbridge has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Enbridge was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $10.59 billion in revenues for the coming quarter and $2.13 on $48.33 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Production and Pipelines is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Williams Companies, Inc. (The) (WMB), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This pipeline operator is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +13%. The consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level. Williams Companies, Inc. (The)'s revenues are expected to be $3.08 billion, up 10.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enbridge Inc (ENB) : Free Stock Analysis Report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Enbridge Inc? Here are five stocks we like better. Enbridge reaffirmed its full-year guidance after a solid second quarter, with adjusted EBITDA up more than CAD 130 million year over year and distributable cash flow per share higher. Earnings per share declined slightly due to increased depreciation and interest expense. The company is expanding its growth pipeline, having sanctioned about CAD 9 billion of projects in 2026 and targeting up to CAD 20 billion in new projects during 2026–2027. Key developments include Mainline capacity expansions, the Wisconsin Line 5 relocation, LNG-related gas infrastructure and the Sunrise BC Pipeline expansion. Enbridge reported quarter-end debt-to-EBITDA of 5.1 times, slightly above its target range because of foreign-exchange effects, while maintaining plans to return CAD 40 billion to CAD 45 billion to shareholders over the next five years after 31 consecutive years of dividend increases. Energy Stocks Surge on Oil Spike: Buy, Hold, or Take Profits? Enbridge (NYSE:ENB) said it completed the first half of 2026 with a solid second quarter, supported by high utilization across its four business units, and reaffirmed its full-year guidance. The company also outlined a growing project pipeline spanning liquids transportation, natural gas transmission, gas utilities and renewable power. President and CEO Greg Ebel said second-quarter Mainline volumes averaged 3.1 million barrels per day. The company began commissioning the Blackcomb Pipeline during the quarter and expects the project to enter service by year-end. Enbridge also placed the Enbridge Houston Oil Terminal into service, sanctioned the Wisconsin Line 5 relocation project and signed an option agreement to acquire the TTC Connector pipeline serving Freeport LNG. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 4 Canadian Oil Stocks That Are Filling the Heavy Crude Gap “We are well on track to secure up to CAD 20 billion in new projects in the 2026-2027 timeframe,” Ebel said. The company has sanctioned approximately CAD 9 billion of capital so far in 2026 and cited a CAD 50 billion organic-growth opportunity set through 2030. Chief Financial Officer Pat Murray said adjusted EBITDA increased by more than CAD 130 million from the second quarter of 2025. Higher Seaway Pipeline spot volumes, stronger Mainline and Line 9 volumes, and optimization initiatives supported Liquids Pipelines results, partly offset by lower Line 9 tolls. → Microsoft Just Flipped the AI Spending Narrative Overnight Is Energy Transfer Undervalued or a Value Trap? In Gas Transmission, EBITDA benefited from a rate-case outcome at East Tennessee and a phased increase under a previously announced Texas Eastern rate settlement. Gas Distribution results were helped by higher base rates following rate cases at Enbridge Gas Utah and Enbridge Gas North Carolina. Distributable cash flow per share increased with the operating performance and lower maintenance capital, Murray said. Earnings per share declined slightly year over year, however, due to higher depreciation from assets entering service and increased interest expense tied to higher debt principal. → Carrier Earnings Could Send the Stock to a New All-Time High Enbridge exited the second quarter with debt-to-EBITDA of 5.1 times. Murray said the measure was affected by the quarter-end Canadian-U.S. exchange rate, and would have been within the company’s 4.5-to-5-times target range after adjusting for the foreign-exchange impact. The company’s CAD 41 billion secured capital backlog provides a growth runway through the decade, according to Murray. He said Enbridge expects to return between CAD 40 billion and CAD 45 billion to shareholders over the next five years, following CAD 38 billion returned over the past five years. Enbridge is advancing Mainline Optimization Phase I and the Southern Illinois Connector, projects expected to add 180,000 barrels per day of incremental capacity. Ebel said these are the first Canadian liquids egress expansions to reach final investment decision since 2017. The company also sanctioned the roughly CAD 1 billion Wisconsin Line 5 relocation project, with construction underway and an expected in-service date in early 2027. Management said it is adjusting the sequencing of its Mainline Optimization Phase II, or MLO2, plans as Canadian producers and governments work through policy, fiscal and regulatory frameworks that could support future Western Canadian production growth. Colin Gruending, Enbridge’s president of Liquids Pipelines, said the company is prioritizing Chicago South market-access segments, which would move existing egress volumes farther south toward lower PADD 2 and PADD 3 refining centers and U.S. Gulf Coast export outlets. Gruending said the downstream-focused approach would require significant capital but would have a simpler scope and better initial economics than the broader MLO2 plan. Enbridge expects any temporary imbalance created by adding downstream capacity before further Mainline expansion to be manageable. The company also sees potential investment opportunities in its regional oil sands, condensate and diluent systems. Gruending said Enbridge has available capacity on its Southern Lights and Norlite systems before requiring twinning, while adding that rising oil sands production would eventually require additional imported condensate. Enbridge highlighted growing gas demand associated with LNG exports, utilities, industrial development, power generation and data centers. The company said an open season for Project Beacon in the U.S. Northeast materially exceeded its initial expectations. Matthew Akman, president of Gas Transmission, said Enbridge is working with utility, power and data-center customers to secure binding commitments and advance permitting. He said the potential project could be multiple times the size of an existing 70,000-dekatherm-per-day Algonquin Gas Transmission project. In the Gulf Coast region, Enbridge signed an exclusive option to acquire TTC Connector, a pipeline connecting its Tres Palacios gas-storage facility with Freeport LNG. The project is supported by long-term take-or-pay contracts with BP, and Enbridge intends to exercise its option when the facility enters service, expected around year-end. Alongside WhiteWater joint-venture partners, Enbridge sanctioned the Bay Runner Twin project to serve additional liquefaction capacity at Rio Grande LNG. The company also started construction of the CAD 4 billion Sunrise expansion of its BC Pipeline system, intended to serve residential, commercial, power-generation and LNG-export demand. Enbridge said its utility businesses continue to benefit from regulatory mechanisms including capital-investment riders, revenue decoupling and performance-based rates. The company has one active rate case, at Enbridge Gas Ohio, where it recently received what management described as a constructive staff response from the Public Utilities Commission of Ohio. New rates are expected to take effect in early 2027. Michele Harradence, president of Gas Distribution and Storage, said Enbridge forecasts rate-base growth above 8% across its utilities, including growth tied to data centers, industrial activity, manufacturing and residential development. She said Enbridge Gas Ohio remains the lowest-cost provider among the state’s four local distribution companies. In Renewable Power, Enbridge is constructing more than 2 gigawatts of generation across North America and Europe. Its Sequoia Solar project is expected to be fully in service by year-end. Through four projects with Meta, Enbridge expects to construct more than 1.4 gigawatts of solar and onshore wind generation and provide 1.6 gigawatt-hours of battery storage. Ebel said the company’s diversified infrastructure footprint and 31 consecutive years of dividend increases position it to pursue demand for reliable and affordable energy across North America. Enbridge Inc is a Calgary, Alberta–based energy infrastructure company that develops, owns and operates a diversified portfolio of energy transportation, distribution and generation assets. Its core activities include the operation of crude oil and liquids pipelines, natural gas transmission and distribution systems, and energy storage facilities. In addition to midstream transportation and storage, Enbridge has expanded into renewable power generation and energy transition projects, including wind, solar and utility-scale generation assets. The company serves customers primarily in Canada and the United States and has interests in other international energy projects. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Enbridge Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

CALGARY, AB, July 31, 2026 /CNW/ - Enbridge Inc. (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) today reported second quarter 2026 financial results, reaffirmed its 2026 financial guidance and provided a quarterly business update. Highlights (All financial figures are unaudited and in Canadian dollars unless otherwise noted. * identifies non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices.) Second quarter GAAP earnings attributable to common shareholders of $1.4 billion or $0.64 per common share, compared with GAAP earnings attributable to common shareholders of $2.2 billion or $1.00 per common share in 2025 Adjusted earnings* of $1.4 billion or $0.63 per common share*, compared with $1.4 billion or $0.65 per common share in 2025 Adjusted earnings before interest, income taxes and depreciation and amortization (EBITDA)* of $4.8 billion, compared to $4.6 billion in 2025 Cash provided by operating activities of $4.1 billion, compared with $3.2 billion in 2025 Distributable cash flow (DCF)* of $2.9 billion, in-line with results in 2025 Reaffirmed 2026 full year financial guidance and medium-term financial outlook Sanctioned and began construction of the US$1.0 billion Line 5 Relocation project in Wisconsin, supporting the continued safe and reliable delivery of energy to the Midwest, Ontario and Quebec Signed exclusive option to acquire TTC Connector Pipeline (TTC Connector), expanding existing U.S. Gulf Coast footprint and increasing connectivity between Tres Palacios and Freeport LNG Sanctioned the 2.6 Bcf/d Bay Runner Twin Pipeline (Bay Runner Twin), providing Permian natural gas supply to the Rio Grande LNG facility under long-term take-or-pay agreements Completed Project Beacon open season for increased capacity on Algonquin Gas Transmission with demand exceeding initial expectations; working to commercialize potential expansion CEO COMMENT Greg Ebel, President and CEO commented the following: "Shaped by ongoing geopolitical developments around the world, energy markets have remained volatile in recent months. While supply disruptions persist and uncertainty continues, one thing is clear; energy security, reliability, and affordability are more important than ever. Against this backdrop, Enbridge's scale, connectivity, and portfolio of strategic infrastructure assets position us to help strengthen North America's energy future while delivering value for customers and shareholders. We are advancing projects all across our businesses and in the second quarter added $1 billion to our now $41 billion growth project backlog. Year-to-date, we have sanctioned $9 billion of new projects and are well on track to meet our targeted $10-20 billion of new project announcements over the 2026 to 2027 timeframe. "We continue to see a wide array of high-quality opportunities in our Gas Transmission business, driven by customer demand across the continent. In the U.S. Northeast, we completed an open season for Project Beacon, a proposed expansion of our Algonquin Gas Transmission system, which received significantly more interest than our initial expectations. We also signed an exclusive option to acquire the TTC Connector Pipeline. This pipeline will connect Enbridge's Tres Palacios Gas Storage facility to Freeport LNG and is expected to enter service by the end of the year. Lastly in our Permian JV, the Blackcomb Pipeline has begun commissioning and we've sanctioned the Bay Runner Twin to service additional trains at Rio Grande LNG. "The accelerating momentum we're seeing in Canada to support growth in the Western Canadian Sedimentary Basin presents a differentiated opportunity for Enbridge. As production continues to increase, Enbridge is ideally positioned to help enable that growth through new WCSB egress, including various Mainline Optimizations, as well as opportunities on our other industry-leading Liquids assets. Our Regional Oil Sands system serves around 50% of all Alberta oil sands production, while our Southern Lights and Norlite systems provide critical diluent supply and are expandable alongside future production growth. These assets will become increasingly important to our growth profile as Canadian oil production rises in response to favourable market fundamentals and the implementation of more supportive policies by Canadian governments. As a result, Mainline Optimization Phase 2 has evolved into a broader suite of expansion opportunities, and as greater clarity emerges around policies supporting production growth later this year, Enbridge is well positioned to provide the egress solutions our customers require. This quarter we sanctioned and began construction on the Line 5 Relocation project in Wisconsin, which we expect to enter service in early 2027. The relocation reinforces the long-term reliability of Line 5, which remains essential to delivering secure, affordable energy to the Great Lakes region. "Our Gas Distribution and Storage business continues to provide year-round reliable and affordable service to over 7 million customers. This quarter the Public Utilities Commission of Ohio Staff filed its report on our Enbridge Gas Ohio rate case. The report was constructive and we look forward to working with the Commission towards a settlement in 2027. "Lastly, our Renewable Power segment continues to advance over 1.5 GW of safe harboured opportunities. This builds on the momentum we've seen over the past 12 months, which saw us sanction over 1.4 GW of solar and onshore wind generation capacity and 1.6 GWh of battery storage capacity, all underpinned by long-term power purchase agreements with Meta. We expect to sanction additional safe harboured projects during the remainder of the year. "As our secured capital backlog continues to grow, our teams also remain focused on execution. This quarter we began construction on our largest project, the $4 billion Sunrise Expansion of our B.C. Pipeline system. This is in addition to a number of projects that are progressing well, including Tennessee Ridgeline, Aspen Point and the second phase of Sequoia Solar, all which are expected to enter service later this year. "Looking ahead, we remain committed to being the first choice for our customers, policymakers, and regulators to advance essential infrastructure across North America under our all-of-the-above approach to energy investment. With an unmatched incumbent footprint, a $41 billion secured capital backlog, and $10 to $11 billion of annual growth investment capacity, Enbridge is well positioned to capitalize on the best macro environment for growth in the last 10 years. We will continue to add visibility to, and extend, our 5% growth outlook further into the future. Enbridge remains on track to deliver on our financial guidance this year, reinforcing the strength of our first-choice investment proposition." FINANCIAL RESULTS SUMMARY Financial results for the three months and six months ended June 30, 2026 and 2025 are summarized in the table below: GAAP earnings attributable to common shareholders for the second quarter of 2026 decreased by $0.8 billion, or $0.36 per share, compared with the same period in 2025. This decrease was primarily due to non-cash, unrealized changes in the value of derivative financial instruments used to manage foreign exchange, interest rate and commodity price risks. In addition, a non-cash pre-issuance hedge loss was recorded on an exchange of medium-term notes and a non-cash adjustment to crude oil inventory was recorded in our Liquids Pipelines segment. This was partially offset by the absence of an impairment of rate-regulated assets in Enbridge Gas Ohio and the operating performance items discussed below. The period-over-period comparability of GAAP earnings attributable to common shareholders is impacted by certain unusual, infrequent or other non-operating factors which are noted in the reconciliation schedule included in Appendix A of this news release. Refer to the Company's Management's Discussion & Analysis for Q2 2026 filed in conjunction with the quarter-end financial statements for a detailed discussion of GAAP financial results. Adjusted EBITDA in the second quarter of 2026 increased by $132 million compared with the same period in 2025. This was primarily as a result of the increased revenues attributable to the East Tennessee, Texas Eastern, and the Enbridge Gas Utah rate cases. Adjusted earnings in the second quarter of 2026 decreased by $36 million, or $0.02 per share, compared with the same period in 2025, due to higher depreciation from assets placed into service and higher interest expense on incremental debt balances, partially offset by the operating performance discussed above. DCF for the second quarter of 2026 increased $45 million compared with the same period in 2025, due primarily to EBITDA factors discussed above and the timing of maintenance capital expenditures, partially offset by higher incremental debt balances driving higher interest expense. Detailed financial information and analysis can be found below under Second Quarter 2026 Financial Results. FINANCIAL OUTLOOK The Company reaffirms its 2026 financial guidance for adjusted EBITDA between $20.2 billion and $20.8 billion and DCF per share between $5.70 and $6.10. The Company also reaffirms its post-2026 adjusted EBITDA, DCF per share, and EPS near-term average compound annual growth rate of approximately 5%. FINANCING UPDATE The Company's rolling 12-month Debt-to-EBITDA metric at the end of the second quarter of 2026 was 5.1x, elevated in part due to the period end debt balance translating at a 1.42 CAD/USD foreign exchange rate compared to EBITDA translating at an average trailing 12-month rate of 1.38. SECURED GROWTH PROJECT EXECUTION UPDATE Enbridge added over $1 billion to its secured growth backlog through the sanctioning of the Line 5 Relocation project. In addition, the Enbridge Houston Oil Terminal entered service during the quarter. The secured growth backlog now sits at approximately $41 billion. Financing of the secured growth program is expected to be provided through the Company's anticipated $10 to $11 billion of annual growth capital investment capacity. SECOND QUARTER BUSINESS UPDATES Liquids Pipelines: Line 5 Relocation Project Enbridge has sanctioned and begun construction of 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 Mainline rate base. All key state and federal permits have been secured, including right-of-way agreements and the U.S. Army Corps of Engineers' Clean Water Act permit. Enbridge expects the project to cost US$1.0 billion and enter service in early 2027. Gas Transmission: TTC Connector Enbridge has signed an exclusive option agreement to purchase the TTC Connector, an under-construction natural gas development connecting Tres Palacios Gas Storage to the Coastal Bend Header pipeline for delivery to Freeport LNG. TTC Connector is a 25-mile, 300 MMcf/d greenfield pipeline with direct connection to Tres Palacios Gas Storage. The development is supported by long-term service agreements with bp for all available capacity. Upon the pipeline entering service, Enbridge has the option to acquire TTC Connector at an accretive valuation. Gas Transmission: Bay Runner Twin Within the Whistler Joint Venture, Enbridge and partners have sanctioned the Bay Runner Twin, a twinning of the under-construction Bay Runner extension project delivering Permian natural gas supply to NextDecade's Rio Grande LNG facility in Texas. The project will run along Bay Runner's existing right-of-way, offering up to 2.6 Bcf/d of incremental capacity between Agua Dulce and Rio Grande. The Bay Runner Twin is underpinned by long-term take-or-pay agreements for all incremental service capacity, and is expected to enter service by 2030. SECOND QUARTER 2026 FINANCIAL RESULTS GAAP Segment EBITDA and Cash Flow from Operations For purposes of evaluating performance, the Company makes adjustments to GAAP reported earnings, segment EBITDA and cash flow provided by operating activities for unusual, infrequent or other non-operating factors, which allow management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release. Adjusted EBITDA By Segment Adjusted EBITDA generated from U.S. dollar denominated businesses was translated to Canadian dollars at a similar average exchange rate (C$1.38/US$) in the second quarter of 2026 when compared with the same quarter in 2025 (C$1.38/US$). A significant portion of U.S. dollar earnings are hedged under the Company's enterprise-wide financial risk management program. Liquids Pipelines Liquids Pipelines adjusted EBITDA increased $5 million compared with the second quarter of 2025, primarily related to: higher Mainline volumes, net of earnings sharing, higher Line 9 volumes, and benefits from system optimization initiatives; and higher equity earnings from Seaway Pipeline due to higher spot volumes; partially offset by lower Mainline tolls on Line 9 deliveries; and lower revenue from Southern Lights following expiry of cost of service agreements on June 30, 2025. Gas Transmission Gas Transmission adjusted EBITDA increased $37 million compared with the second quarter of 2025, primarily related to: increased revenues attributable to East Tennessee rate case settlement and Texas Eastern previously approved rate increase; partially offset by lower equity earnings from our investment in DCP Midstream. Gas Distribution and Storage Adjusted EBITDA for Enbridge Gas Ontario, Enbridge Gas Utah and Enbridge Gas North Carolina typically follows a seasonal profile. EBITDA is generally highest in the first and fourth quarters of the year. Seasonal profiles for Enbridge Gas Ontario, Enbridge Gas Utah and Enbridge Gas North Carolina reflect greater volumetric demand during the heating season and the magnitude of the seasonal adjusted EBITDA fluctuations will vary from year-to-year in Ontario reflecting the impact of colder or warmer than normal weather on distribution volumes. Enbridge Gas Ohio's earnings are largely decoupled from volumes and less impacted by weather fluctuations. Enbridge Gas Utah and Enbridge Gas North Carolina have revenue decoupling mechanisms that are not impacted by weather or gas volume variability, but revenues are shaped to align with the seasonal usage profile. Gas Distribution and Storage adjusted EBITDA increased $38 million compared with the second quarter of 2025 primarily related to: higher base rates for Enbridge Gas Utah and Enbridge Gas North Carolina due to recent rate cases. When compared with the normal weather forecast embedded in rates, the positive impact of weather to adjusted EBITDA for Enbridge Gas Ontario was approximately $9 million in the second quarter of 2026, net of sharing, in line with the a positive impact of approximately $10 million in the same period of 2025. Renewable Power Generation Renewable Power Generation adjusted EBITDA increased $11 million compared with the second quarter of 2025 primarily related to: contributions from assets placed into service since the second quarter of 2025. Eliminations and Other Operating and administrative recoveries captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) inclusive of amounts recovered from business units for the provision of those services. U.S. dollar denominated earnings within operating segment results are translated at average foreign exchange rates during the quarter, and the impact of settlements made under the Company's enterprise foreign exchange hedging program are captured in this corporate segment. Eliminations and Other adjusted EBITDA increased $41 million compared with the second quarter of 2025 primarily due to: Lower realized foreign exchange losses on hedge settlements in 2026. Distributable Cash Flow Second quarter 2026 DCF increased $45 million compared with the same period of 2025 due to factors discussed above contributing to higher adjusted EBITDA, and: lower maintenance capital due to timing; partially offset by higher interest expense due to incremental debt issuances. Adjusted Earnings Adjusted earnings decreased $36 million and adjusted earnings per share decreased by $0.02 when compared with the second quarter of 2025, due to: higher interest expense due to incremental debt issuances; and higher depreciation from assets placed into service since the second quarter of 2025; partially offset by higher adjusted EBITDA due to the operating factors discussed above. CONFERENCE CALL Enbridge will host a conference call and webcast on July 31, 2026 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to provide a business update and review 2026 second quarter results. Analysts, members of the media and other interested parties can access the call toll free at 1-800-606-3040. The call will be webcast live at https://events.q4inc.com/attendee/193728984/. It is recommended that participants dial in or join the webcast fifteen minutes prior to the scheduled start time. A webcast replay will be available soon after the conclusion of the event and a transcript will be posted to the website. The replay will be available for seven days after the call toll-free 1-(800)-606-3040 (conference ID: 9581867). The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions. DIVIDEND DECLARATION On July 27, 2026, our Board of Directors declared the following quarterly dividends. All dividends are payable on September 1, 2026 to shareholders of record on August 14, 2026. FORWARD-LOOKING INFORMATION Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge and its subsidiaries and affiliates, including management's assessment of Enbridge and its 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 our strategic priorities and enablers; 2026 financial guidance and near-term outlook, including projected DCF per share, EPS and adjusted EBITDA and expected growth thereof; expected dividends, dividend growth and payout policy; 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; industry and market conditions; anticipated utilization of our assets; expected EBITDA and adjusted EBITDA; expected earnings/(loss) and adjusted earnings/(loss); expected DCF and DCF per share; expected future cash flows; expected shareholder returns and asset returns; expected performance of Enbridge's businesses; financial strength, capacity and flexibility; financing costs and plans; expectations on leverage, including Debt-to-EBITDA ratio; expectations on sources of liquidity and sufficiency of financial resources; expected costs, benefits and in-service dates related to announced projects and projects under construction; investable capacity and capital allocation priorities; impact of weather and seasonality; expected future growth, development and expansion opportunities, including with respect to the Line 5 Relocation, Bay Runner Twin, and the TTC Connector; the characteristics, anticipated benefits, financing and timing of our acquisitions, dispositions and other transactions; government trade policies, as well as possible impacts of potential and announced tariffs, duties, fees, economic sanctions, or other trade measures and the timing thereof; expected future actions and decisions of regulators and courts and the timing and impact thereof; and toll and rate case discussions and proceedings and anticipated outcomes, timelines and impacts therefrom. Although Enbridge believes 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 assumptions about the following: the expected supply of, demand for, export of and prices of crude oil, natural gas, NGL, LNG, RNG and renewable energy; energy transition, including the drivers and pace thereof; global economic growth and trade; anticipated utilization of our assets; exchange rates; inflation; interest rates; tax laws and tax rates; evolving government trade policies, including potential and announced tariffs, duties, fees, economic sanctions, or other trade measures; availability and price of labour and construction materials; the stability of our supply chain; operational reliability and performance; maintenance of support and regulatory approvals for our projects and transactions; anticipated in-service dates and final investment decisions; weather; the timing, terms and closing of announced and potential acquisitions, dispositions and other transactions and projects and the anticipated benefits thereof; governmental legislation; litigation; credit ratings; capital project funding; hedging program; expected EBITDA and adjusted EBITDA; expected earnings/ (loss) and adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows; expected future DCF and DCF per share; estimated future dividends; financial strength and flexibility; debt and equity market conditions; general economic and competitive conditions. 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 announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labour and construction materials; the stability of our supply chain; the effects of inflation and foreign exchange rates on labour 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. Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the successful execution of our strategic priorities; operating performance; legislative and regulatory parameters and decisions; litigation; acquisitions, dispositions and other transactions and the realization of anticipated benefits therefrom; evolving government trade policies, including potential and announced tariffs, duties, fees, economic sanctions or other trade measures; operational dependence on third parties; project approval and support; renewals of rights-of-way; weather; economic and competitive conditions; global geopolitical conflicts and conditions; political decisions; public opinion; dividend policy; changes in tax laws and tax rates; exchange rates; interest rates; inflation; commodity prices; access to and cost of capital; our ability to maintain adequate insurance in the future at commercially reasonable rates and terms; and supply of, demand for, and prices of commodities and other alternative energy, including but not limited to those risks and uncertainties discussed in this news release and in Enbridge's other filings with Canadian and U.S. 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, Enbridge assumes no obligation to publicly update or revise any forward-looking statement made in this news release 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. ABOUT ENBRIDGE INC. At Enbridge, we safely connect millions of people to the energy they rely on every day, fueling quality of life through our North American natural gas, oil and renewable power networks and our European offshore wind portfolio. We're investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on more than a century of operating conventional energy infrastructure and two decades of experience in renewable power. We're advancing new technologies including hydrogen, renewable natural gas, and carbon capture and storage. Headquartered in Calgary, Alberta, Enbridge's common shares trade under the symbol ENB on the Toronto (TSX) and New York (NYSE) stock exchanges. To learn more, visit us at enbridge.com. None of the information contained in, or connected to, Enbridge's website is incorporated in or otherwise forms part of this news release. Jesse Semko Marlon SamuelToll Free: (888) 992-0997Toll Free: (800) 481-2804Email: [email protected] Email: [email protected] NON-GAAP RECONCILIATIONS APPENDICES This news release contains references to EBITDA, adjusted EBITDA, adjusted earnings, adjusted earnings per common share (EPS) and DCF per share. Management believes the presentation of these metrics gives useful information to investors and shareholders, as they provide increased transparency and insight into the performance of the Company. EBITDA represents earnings before interest, tax, depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for unusual, infrequent or other non-operating factors on both a consolidated and segmented basis. Management uses EBITDA and adjusted EBITDA to set targets and to assess the performance of the Company and its business units. Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, infrequent or other non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, infrequent or other non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes, noncontrolling interests and redeemable noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another measure of the Company's ability to generate earnings and uses EPS to assess performance of the Company. DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests and redeemable noncontrolling interests, preference share dividends and maintenance capital expenditures and further adjusted for unusual, infrequent or other non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target. This news release also contains references to Debt-to-EBITDA, a non-GAAP ratio which utilizes adjusted EBITDA as one of its components. Debt-to-EBITDA is used as a liquidity measure to indicate the amount of adjusted earnings to pay debt, as calculated on the basis of generally accepted accounting principles in the United States of America (U.S. GAAP), before covering interest, tax, depreciation and amortization. Reconciliations of forward-looking non-GAAP financial measures and non-GAAP ratios to comparable GAAP measures are not available due to the challenges and impracticability of estimating certain items, particularly certain contingent liabilities and non-cash unrealized derivative fair value losses and gains subject to market variability. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures and non-GAAP ratios is not available without unreasonable effort. Our non-GAAP financial measures and non-GAAP ratios described above are not measures that have standardized meaning prescribed by U.S. GAAP and are not U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers. The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures. APPENDIX A NON-GAAP RECONCILIATIONS – ADJUSTED EBITDA AND ADJUSTED EARNINGS CONSOLIDATED EARNINGS ADJUSTED EBITDA TO ADJUSTED EARNINGS EBITDA TO ADJUSTED EARNINGS APPENDIX B NON-GAAP RECONCILIATION – ADJUSTED EBITDA TO SEGMENTED EBITDA LIQUIDS PIPELINES GAS TRANSMISSION GAS DISTRIBUTION AND STORAGE RENEWABLE POWER GENERATION ELIMINATIONS AND OTHER APPENDIX C NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING ACTIVITIES TO DCF View original content:https://www.prnewswire.com/news-releases/enbridge-reports-strong-second-quarter-results-reaffirms-2026-guidance-and-grows-secured-backlog-to-41b-302839600.html

This article first appeared on GuruFocus. Adjusted EBITDA: Increased by over $130 million compared to the second quarter of 2025. Earnings Per Share (EPS): Slightly down versus the prior year, due to higher depreciation from assets placed into service and increased interest expense on higher debt principal. Distributable Cash Flow (DCF) Per Share: Increased, supported by stronger operating results and lower maintenance capital. Mainline Volumes: Averaged 3.1 million barrels per day in Q2. Debt-to-EBITDA: 5.1x at the end of Q2 2026, impacted by the quarter-end CAD/US spot rate of $1.42; within target range when adjusted for FX impact. Secured Capital Backlog: $41 billion, providing a runway for growth through the decade. Dividend Returns: Returned $38 billion to shareholders over the past 5 years; expects to return between $40 billion and $45 billion over the next 5 years. Warning! GuruFocus has detected 12 Warning Signs with ENB. Is ENB fairly valued? Test your thesis with our free DCF calculator. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Enbridge Inc (NYSE:ENB) delivered a solid Q2 2026 with strong financial performance and high utilization across all four business units, positioning the company to achieve its 2026 guidance. The company has a robust growth pipeline, with a $41 billion secured capital backlog and approximately $9 billion of capital already sanctioned in 2026, on track to secure up to $20 billion in new projects by 2027. Enbridge Inc (NYSE:ENB) is capitalizing on a favorable macro environment, with strong demand for natural gas, LNG exports, and power generation, leading to significant opportunities across its Gas Transmission and Renewables segments. The company's strategic partnerships, such as the expanded collaboration with Meta for over 1.4 GW of renewable power, are driving growth in its Power business with long-term contracted cash flows. Enbridge Inc (NYSE:ENB) continues to demonstrate financial strength and shareholder commitment, having returned $38 billion to shareholders over the past five years and maintaining a 31-year streak of dividend increases. The company is advancing key projects like the Blackcomb pipeline and the Houston oil terminal, which are on track to come online by year-end, adding to its revenue-generating capacity. Enbridge Inc (NYSE:ENB) is seeing improved returns on capital, targeting a 100 basis point increase in ROCE, driven by brownfield projects and operational efficiencies across its footprint. Enbridge Inc (NYSE:ENB) faces headwinds from lower market access contributions in its Liquids segment and higher US interest rates, which could impact full-year 2026 financial performance. The company's debt-to-EBITDA ratio exited Q2 2026 at 5.1x, slightly above its target range, primarily due to unfavorable FX movements, indicating potential balance sheet pressure. The MLO2 project has been disaggregated and resequenced, with the upstream Mainline expansion delayed, creating a temporary system imbalance and uncertainty around future egress capacity. Geopolitical tensions and commodity price volatility are creating a challenging backdrop for producers, refiners, and pipeline companies, potentially delaying large-scale project commitments. Enbridge Inc (NYSE:ENB) is navigating regulatory and affordability concerns, as evidenced by proposed legislation in Ohio for a utility rate freeze, which could impact its Gas Distribution segment's returns. The company's growth is partly dependent on the implementation of supportive government policies in Canada, which are still in non-binding stages, adding uncertainty to the timing of production growth and associated infrastructure investments. Higher depreciation from assets placed into service and increased interest expense on higher debt principal led to a slight decrease in earnings per share for Q2 2026. Q: Can you provide more color on what drove the evolution of MLO2 into a broader set of opportunities, and when can we expect incremental clarity on the timing and shape of these opportunities?A: Greg Ebel (CEO) and Colin Gruending (President, Liquids Pipelines) explained that while the policy environment in Canada is becoming a generational tailwind for WCSB production, producers are waiting for proposed government changes to be fully implemented before making binding commitments. Enbridge is responding by disaggregating and resequencing MLO2, focusing first on the Chicago South market access segments to move existing egress barrels further south to PADD II/III refining centers and Gulf Coast export options. This simpler scope will yield better initial economics, with the upstream Mainline expansion to follow later, potentially creating a temporary but manageable system imbalance. Q: With the best growth environment in over a decade, what is this translating to in terms of returns on capital, and can we expect upward pressure on the return threshold?A: Greg Ebel (CEO) stated that Enbridge is targeting a 100 basis point improvement in return on capital employed across the enterprise. This is being driven by higher returns in the Liquids business due to operating leverage, better build multiples from scale in purchasing, and a focus on brownfield projects. While harder to achieve in pure regulated utilities, the company is ensuring it fully earns its regulated rate of return in each jurisdiction, making the overall 100 basis point move extremely valuable given the size of the asset base. Q: Given the significant interest in Project Beacon, can you talk about your ability to expand the scope or develop a second phase to accommodate all that demand?A: Matthew Akman (President, Gas Transmission) confirmed that the open season for Project Beacon significantly exceeded expectations, reflecting a real recognition of the need for gas pipeline capacity in New England for affordability, reliability, and reducing emissions from oil-burning power. The company is working on the Algonquin enhancement (a $70,000 Dth/d project) and expects Beacon to be multiple times that size. Studies suggest the project could save over $1 billion a year for utility customers in New England. While permitting remains the key hurdle, the company is pursuing this commercially with discipline. Q: Can you talk about your Permian gas strategy and all the ways Enbridge can benefit from the basin?A: Matthew Akman (President, Gas Transmission) highlighted the intentional strategic advancement in the Permian, including the Whitewater assets and the recent sanctioning of the Bay Runner Twin project. Beyond the main pipelines, there are opportunities for storage expansion and downstream movement of gas into the Houston market and further east via the Texas Eastern footprint. Greg Ebel (CEO) added that this is a replication strategy of the successful oil-side build-out from Ingleside, demonstrating how the company builds "super systems" across both oil and gas. Q: Can you provide more detail on the MLO2 postponement and what has changed in recent months regarding cost, customer demand, or other elements?A: Greg Ebel (CEO) attributed the shift to "geopolitics of volatility and the psychology of sanctioning projects," citing recent WTI price swings and changing policy stances. Producers, refiners, and exporters are hesitant to fully commit to large-scale projects amid this volatility. Colin Gruending (President, Liquids Pipelines) added that the pace of policy implementation has taken longer than expected, and producers are behaving with discipline. However, the need for capacity remains, as refineries are running at high 90s utilization, and Enbridge is ready to solve bottlenecks as they come into focus. Q: How do you think the debt-to-EBITDA metric will progress through the end of 2027 given the $41 billion secured capital program?A: Patrick Murray (CFO) stated that the company is comfortable with leverage levels at 5.1x, which would be within the 4.5-5.0x target range when adjusted for FX. With a significant number of projects coming into service late this year and in the back half of 2027, leverage will likely stay near the top of the range during that period. However, the company has levers such as cash flow generation, hybrid capacity, and potential asset sales to manage within the range. The metric should naturally come down as cash flows come on, though this could be offset by new project sanctions. Q: Can you dive into the specific types of projects and areas that make up the $20 billion project sanctioning target for '26-'27?A: Greg Ebel (CEO) noted that with $9 billion already sanctioned year-to-date, the go-forward mix will see a significant portion on the gas transmission side to serve power, LNG, storage, and industrial onshoring. Matthew Akman (President, Gas Transmission) added that there is a lot of activity across the entire footprint, including utility demand in the Southeast and Northeast. Michele Harradence (President, Gas Distribution) highlighted over 8% rate base growth in utilities, with North Carolina at 19%, driven by data centers and industrial reshoring. Q: What is the outlook for your condensate tools, specifically Southern Lights, and what ability do you have to expand capacity there?A: Colin Gruending (President, Liquids Pipelines) confirmed that as the basin grows, diluent will be needed, and Enbridge has a full value chain to import condensate on Southern Lights and Norlite with meaningful headroom on both assets prior to looping. The company recently moved Southern Lights from a cost-of-service to a contract model with upward-tilted returns and inflators. Domestic condensate supply will be insufficient, requiring more imports, and Enbridge is prepared with additional import solutions, having contemplated this equation for a long time. Q: Should we assume a short time lag between the downstream expansions and an upstream Mainline expansion, and is the Mainline tolling settlement a consideration?A: Colin Gruending (President, Liquids Pipelines) stated that the timing is TBD, and the solution does not have to be the exact same scope as MLO2. The company has multiple MLO designs and can manage the interim imbalance. The Mainline will most probably be expanded at some point, potentially through various solutions like digital optimization or pipe crossing. Greg Ebel (CEO) added that Enbridge is adding 180,000 barrels per day with MLO1 and the SIC project, the only FID for egress out of the basin in a decade, and is also looking at alternative market access like Ingleside. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Enbridge Inc. ENB is set to report second-quarter 2026 results on July 31, before the opening bell. In the last reported quarter, Enbridge’s adjusted earnings of 71 cents per share beat the Zacks Consensus Estimate of 69 cents, primarily driven by higher adjusted EBITDA contributions from its Gas Transmission, and Gas Distribution and Storage business segments. Lower adjusted EBITDA contributions from the Liquids Pipelines segment slightly offset the positives. Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same once, delivering an average surprise of 1.79%. This is depicted in the graph below. Enbridge Inc price-eps-surprise | Enbridge Inc Quote The Zacks Consensus Estimate for second-quarter earnings per share of 43 cents has witnessed two downward and no upward revisions in the past seven days. The estimated figure suggests a decline of 8.5% from the prior-year reported figure. The Zacks Consensus Estimate for revenues of $10.85 billion indicates a 0.9% increase from the year-ago recorded figure. As a leading midstream energy firm, Enbridge serves more than 75% of North American refineries, supplies roughly 20% of the continent's natural gas and reaches more than 7 million utility customers. Backed by long-term contracts and low exposure to commodity price volatility, the company's low-risk business model is expected to deliver stable earnings for the to be-reported quarter. Despite the stable nature of its business model, ENB’s performance in the to-be-reported quarter is anticipated to have been affected by increased financing costs, which is likely to have weighed on its overall profitability and dampened Enbridge’s quarterly performance. Our proven model does not conclusively predict an earnings beat for ENB this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below. Earnings ESP: Enbridge has an Earnings ESP of -0.59%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. ENB’s Zacks Rank: ENB currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the energy sector are NOV Inc. NOV, Cactus, Inc. WHD and Western Midstream Partners, LP WES. NOV, Cactus and Western Midstream currently carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here. NOV has an Earnings ESP of +19.69%. The company is scheduled to release second-quarter 2026 earnings on July 28, 2026. The Zacks Consensus Estimate for NOV’s earnings is pegged at 16 cents per share, indicating a 44.8% decline from the prior-year reported figure. Cactus has an Earnings ESP of +7.04%. The company is scheduled to release second-quarter 2026 earnings on July 29, 2026. The Zacks Consensus Estimate for WHD’s earnings is pegged at 71 cents per share, suggesting a 7.6% improvement from the prior-year reported figure. Western Midstream  has an Earnings ESP of +1.19%.The partnership is scheduled to release second-quarter 2026 earnings on Aug. 5, 2026. The Zacks Consensus Estimate for WES’ earnings is pegged at 90 cents per share, suggesting a 3.4% improvement from the prior-year reported figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enbridge Inc (ENB) : Free Stock Analysis Report NOV Inc. (NOV) : Free Stock Analysis Report Western Midstream Partners, LP (WES) : Free Stock Analysis Report Cactus, Inc. (WHD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research