Enbridge Earnings Fell as Financing Costs Offset Operating Gains
Cash provided by operations climbed to C$4.111 billion in the second quarter.
Enbridge Inc. (ENB), the pipeline and utility operator, reported lower second-quarter earnings as higher depreciation and financing costs outweighed improvement in its operations. GAAP earnings fell to C$1.396 billion, or C$0.64 a share, from C$2.177 billion, or C$1.00 a share, a year earlier.
The decline extended from the first quarter, when Enbridge earned C$1.7 billion, or C$0.77 a share. Adjusted EBITDA rose C$132 million from a year earlier to C$4.776 billion, while dropping from about C$5.8 billion in the preceding quarter.
Adjusted earnings declined C$36 million to C$1.382 billion, and adjusted earnings per share slipped C$0.02 to C$0.63. Depreciation and amortization increased to C$1.482 billion, while adjusted interest expense rose to C$1.288 billion.
Distributable cash flow edged up to C$2.948 billion from C$2.903 billion a year earlier, helped by lower maintenance capital and constrained by higher interest expense. The measure declined from C$3.9 billion in the first quarter.
Liquids Pipelines adjusted EBITDA was nearly flat at C$2.341 billion. Higher Mainline and Line 9 volumes, system optimization and stronger Seaway spot volumes supported the business, while lower Line 9 tolls and the expiration of Southern Lights cost-of-service agreements weighed on results.
Gas Transmission adjusted EBITDA increased C$37 million to C$1.421 billion, led by U.S. Gas Transmission. Gas Distribution and Storage rose C$38 million to C$878 million as higher Utah and North Carolina base rates lifted U.S. Gas Utilities, offsetting a decline at Enbridge Gas Ontario.
Enbridge reaffirmed its 2026 guidance for adjusted EBITDA of C$20.2 billion to C$20.8 billion and distributable cash flow of C$5.70 to C$6.10 a share, leaving the outlook unchanged for a third consecutive release.
The secured growth backlog increased for a second straight quarter to C$41 billion after Enbridge sanctioned the US$1.0 billion Line 5 Relocation and committed to the 2.6 Bcf/d Bay Runner Twin. The company had sanctioned C$9 billion of projects year to date, moving toward its C$10 billion-to-C$20 billion target for new project announcements during 2026 and 2027.