Enbridge(ENB) - 2025 Q1 - Quarterly Report

Financial Performance - Total operating revenues for Q1 2025 reached CAD 18,502 million, a 67.5% increase from CAD 11,038 million in Q1 2024[20] - Operating income increased to CAD 3,672 million in Q1 2025, up 35.5% from CAD 2,711 million in Q1 2024[20] - Earnings attributable to common shareholders rose to CAD 2,261 million, representing a 59.1% increase compared to CAD 1,419 million in the same period last year[20] - Diluted earnings per common share increased to CAD 1.03, up from CAD 0.67 in Q1 2024, reflecting a 54% growth[20] - Comprehensive income for Q1 2025 was CAD 2,565 million, down from CAD 2,961 million in Q1 2024[21] - EBITDA for the three months ended March 31, 2025, increased by $931 million compared to the same period in 2024, primarily due to non-operating factors[164] Revenue Breakdown - Total revenue from contracts with customers for the three months ended March 31, 2025, was CAD 8,809 million, an increase from CAD 6,778 million in the same period of 2024, representing a growth of 30$2.0 billion in its Mainline System through 2028 to enhance reliability and efficiency[171] - The Texas Eastern Modernization project has an estimated capital cost of US$0.4 billion, with US$162 million spent to date and expected to be completed between 2025 and 2026[166] Debt and Liquidity - As of March 31, 2025, total committed credit facilities amounted to $24,196 million, with$11,273 million available[67] - Long-term debt issuances during the three months ended March 31, 2025, totaled $2.8 billion[71] - Long-term debt repayments during the same period amounted to US$1.9 billion and $0.1 billion[72] - The company reported a net available liquidity of$13.4 billion as of March 31, 2025, down from $14.4 billion at the end of 2024[178] Asset and Equity Changes - Total assets as of March 31, 2025, were CAD 220,045 million, up from CAD 218,973 million at the end of 2024[28] - Total equity increased to CAD 71,280 million as of March 31, 2025, compared to CAD 67,303 million at the end of 2024[28] Risk Management - The company has exposure to foreign exchange risk due to revenues and expenses denominated in currencies other than Canadian dollars, which affects earnings and cash flows[80] - The company limits its maximum floating rate debt to 30% of total debt outstanding to manage interest rate risk, with an average fixed rate of 3.5% for floating-to-fixed interest rate swaps[82] - The company employs financial and physical derivative instruments to manage commodity price risk, particularly for natural gas, crude oil, and power[84] Regulatory and Legal Matters - Enbridge filed a Notice of Appeal on June 30, 2023, with a decision from the Court of Appeals anticipated in 2025[210] - The Michigan Attorney General's lawsuit against Enbridge regarding Line 5 has been remanded back to the Circuit Court, with a decision expected in 2025[212] - Enbridge filed a petition for certiorari with the US Supreme Court on January 13, 2025, seeking to reverse the 6th Circuit's remand decision[213] Segment Performance - Liquids Pipelines segment earnings before interest, income taxes, and depreciation and amortization (EBITDA) rose to CAD 2,593 million in Q1 2025, compared to CAD 2,404 million in Q1 2024, a 7.9% increase[153] - Gas Transmission segment EBITDA increased to CAD 1,473 million in Q1 2025, up from CAD 1,265 million in Q1 2024, reflecting a 16.4% growth[155] - Gas Distribution and Storage segment EBITDA surged to CAD 1,600 million in Q1 2025, a significant increase from CAD 765 million in Q1 2024, marking a 109% rise[158] - Renewable Power Generation segment EBITDA decreased to CAD 223 million in Q1 2025, down from CAD 257 million in Q1 2024, a decline of 13.2%[159]