Enbridge(ENB) - 2025 Q2 - Quarterly Report

Front Matter Report Information & Table of Contents This section identifies the Form 10-Q quarterly report for Enbridge Inc. for Q2 2025 and presents its official table of contents - Form 10-Q quarterly report filed by Enbridge Inc. for the period ended June 30, 2025[1] - Registrant is a large accelerated filer and not a shell company[1] - 2,180,514,839 common shares outstanding as at July 25, 2025[1] Glossary & Conventions This section defines key terms and abbreviations, clarifies the collective reference to "Enbridge" and its subsidiaries, and specifies that all dollar amounts are in Canadian dollars unless otherwise stated - All dollar amounts are in Canadian dollars unless specified, with 'US$' indicating United States dollars[5] - Key terms such as 'Questar Acquisition' and 'EOG Acquisition' are defined, referring to Enbridge's US gas utility acquisitions[3] Forward-Looking Information This section outlines forward-looking statements, their basis in management's assessment, and inherent risks and uncertainties that could cause actual results to differ - Forward-looking statements, identified by terms like 'anticipate' and 'expect', cover corporate vision, strategy, market conditions, and financial strength[6] - Material assumptions include expected supply, demand, and prices for crude oil, natural gas, NGL, LNG, RNG, and renewable energy, along with exchange rates, inflation, interest rates, and regulatory approvals[7] - Risks and uncertainties encompass operating performance, legislative and regulatory changes, litigation, acquisitions, evolving trade policies, and commodity prices[9] Non-GAAP and Other Financial Measures This section defines non-GAAP financial measures, specifically EBITDA, and clarifies they are not standardized under US GAAP and may not be comparable - EBITDA is defined as earnings before interest, income taxes, depreciation, and amortization[10] - Non-GAAP measures are not standardized under US GAAP and may not be comparable to those of other issuers[11] PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS This section presents Enbridge Inc.'s unaudited interim consolidated financial statements, prepared under US GAAP, including statements of earnings, comprehensive income, equity, cash flows, and financial position, with detailed notes - Interim consolidated financial statements are prepared in accordance with US GAAP and Regulation S-X[25] - Operations and earnings are subject to seasonal fluctuations in gas distribution and other factors like crude oil and natural gas supply and demand[26] Consolidated Financial Statements Consolidated Statements of Earnings This section presents the consolidated statements of earnings for the three and six months ended June 30, 2025 and 2024, detailing revenues, expenses, and earnings per share Consolidated Statements of Earnings (Three Months Ended June 30) | Metric | 2025 (Millions CAD) | 2024 (Millions CAD) | | :----- | :------------------ | :------------------ | | Total operating revenues | 14,876 | 11,336 | | Total operating expenses | 12,587 | 9,063 | | Operating income | 2,289 | 2,273 | | Earnings attributable to common shareholders | 2,177 | 1,848 | | Earnings per common share | 1.00 | 0.86 | Consolidated Statements of Earnings (Six Months Ended June 30) | Metric | 2025 (Millions CAD) | 2024 (Millions CAD) | | :----- | :------------------ | :------------------ | | Total operating revenues | 33,378 | 22,374 | | Total operating expenses | 27,417 | 17,390 | | Operating income | 5,961 | 4,984 | | Earnings attributable to common shareholders | 4,438 | 3,267 | | Earnings per common share | 2.04 | 1.53 | Consolidated Statements of Comprehensive Income This section presents the consolidated statements of comprehensive income for the three and six months ended June 30, 2025 and 2024, including earnings and other comprehensive income Consolidated Statements of Comprehensive Income (Three Months Ended June 30) | Metric | 2025 (Millions CAD) | 2024 (Millions CAD) | | :----- | :------------------ | :------------------ | | Earnings | 2,321 | 2,001 | | Other comprehensive income/(loss), net of tax | (3,006) | 584 | | Comprehensive income/(loss) attributable to common shareholders | (767) | 2,418 | Consolidated Statements of Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (Millions CAD) | 2024 (Millions CAD) | | :----- | :------------------ | :------------------ | | Earnings | 4,811 | 3,566 | | Other comprehensive income/(loss), net of tax | (2,931) | 1,980 | | Comprehensive income/(loss) attributable to common shareholders | 1,567 | 5,198 | Consolidated Statements of Changes in Equity This section presents the consolidated statements of changes in equity, detailing total equity and common share dividends for the periods ended June 30, 2025 and 2024 Total Equity (June 30) | Metric | 2025 (Millions CAD) | 2024 (Millions CAD) | | :----- | :------------------ | :------------------ | | Total Enbridge Inc. shareholders' equity | 65,448 | 67,228 | | Noncontrolling interests | 2,910 | 3,025 | | Total equity | 68,358 | 70,253 | - Common share dividends declared for the three and six months ended June 30, 2025, were $2,055 million and $2,055 million, respectively, compared to $1,946 million for both periods in 2024[19] Consolidated Statements of Cash Flows This section presents the consolidated statements of cash flows for the six months ended June 30, 2025 and 2024, detailing cash from operating, investing, and financing activities Consolidated Statements of Cash Flows (Six Months Ended June 30) | Activity | 2025 (Millions CAD) | 2024 (Millions CAD) | | :------- | :------------------ | :------------------ | | Operating activities | 6,291 | 5,965 | | Investing activities | (4,648) | (11,230) | | Financing activities | (2,166) | 2,787 | | Net change in cash and cash equivalents and restricted cash | (578) | (2,286) | | Cash and cash equivalents and restricted cash at end of period | 1,422 | 3,699 | Consolidated Statements of Financial Position This section presents the consolidated statements of financial position as of June 30, 2025, and December 31, 2024, detailing total assets, liabilities, and equity Consolidated Statements of Financial Position (As at June 30, 2025 and December 31, 2024) | Metric | June 30, 2025 (Millions CAD) | December 31, 2024 (Millions CAD) | | :----- | :----------------------------- | :------------------------------- | | Total assets | 211,592 | 218,973 | | Total liabilities | 143,234 | 150,080 | | Total equity | 68,358 | 68,893 | - Common shares outstanding were 2,181 million at June 30, 2025, an increase from 2,178 million at December 31, 2024[24] Notes to the Interim Consolidated Financial Statements Basis of Presentation (Note 1) This note clarifies that interim financial statements are unaudited, prepared under US GAAP, and that interim results may not predict annual outcomes due to seasonality - Interim financial statements are unaudited and prepared in accordance with US GAAP and Regulation S-X[25] - Interim results may not be indicative of annual results due to seasonal fluctuations in gas distribution and crude oil/natural gas supply and demand[26] Changes in Accounting Policies (Note 2) This note discusses new accounting standards, ASU 2023-09 and ASU 2024-03, which will enhance income tax and expense disclosures in future periods - ASU 2023-09, effective January 1, 2025, will improve income tax disclosures by requiring specified categories in the annual rate reconciliation and further disaggregation of income taxes paid by jurisdiction[27] - ASU 2024-03, effective January 1, 2027, will require additional disclosures about specific expense categories, such as inventory purchases and employee compensation, in financial statement notes[28] Revenue (Note 3) This note details revenue recognition policies, including reclassification of certain gas distribution sales and future revenue from performance obligations - Revenues from customers procuring their own gas but using Enbridge's distribution system are reclassified to Gas distribution sales, with no impact on total operating revenues[30] Total Operating Revenues by Segment (Three Months Ended June 30) | Segment | 2025 (Millions CAD) | 2024 (Millions CAD) | | :------ | :------------------ | :------------------ | | Liquids Pipelines | 10,837 | 8,158 | | Gas Transmission | 1,604 | 1,492 | | Gas Distribution and Storage | 2,016 | 1,384 | | Renewable Power Generation | 145 | 106 | | Eliminations and Other | 274 | 196 | | Consolidated Total | 14,876 | 11,336 | - Total revenues from future performance obligations are $59.4 billion, with $5.0 billion expected in the remaining six months of 2025 and $8.1 billion in 2026[40] Segmented Information (Note 4) This note provides financial information by segment, including EBITDA and capital expenditures, and highlights a significant impairment in the Gas Distribution and Storage segment EBITDA by Segment (Three Months Ended June 30) | Segment | 2025 (Millions CAD) | 2024 (Millions CAD) | | :------ | :------------------ | :------------------ | | Liquids Pipelines | 2,331 | 2,450 | | Gas Transmission | 1,442 | 2,095 | | Gas Distribution and Storage | 510 | 567 | | Renewable Power Generation | 109 | 138 | | Eliminations and Other | 1,167 | (155) | | Total EBITDA | 5,559 | 5,095 | Capital Expenditures by Segment (Six Months Ended June 30) | Segment | 2025 (Millions CAD) | 2024 (Millions CAD) | | :------ | :------------------ | :------------------ | | Liquids Pipelines | 593 | 498 | | Gas Transmission | 1,295 | 1,161 | | Gas Distribution and Storage | 1,396 | 737 | | Renewable Power Generation | 359 | 117 | | Eliminations and Other | 51 | 51 | | Total Capital Expenditures | 3,694 | 2,564 | - The Gas Distribution and Storage segment recognized a $330 million impairment for certain rate-regulated assets due to pension and other disallowances from the Ohio Commission's June 2025 order[46] Earnings Per Common Share and Dividends Per Share (Note 5) This note presents basic and diluted earnings per common share for the periods ended June 30, 2025 and 2024, and details the quarterly dividend declared Earnings Per Common Share (Three Months Ended June 30) | Metric | 2025 | 2024 | | :----- | :--- | :--- | | Basic EPS | 1.00 | 0.86 | | Diluted EPS | 1.00 | 0.86 | Earnings Per Common Share (Six Months Ended June 30) | Metric | 2025 | 2024 | | :----- | :--- | :--- | | Basic EPS | 2.04 | 1.53 | | Diluted EPS | 2.03 | 1.53 | - The quarterly dividend per common share declared is $0.94250, payable September 1, 2025[54] Acquisitions and Dispositions (Note 6) This note details significant acquisitions, including Questar Gas, East Ohio Gas, and Morrow Renewables, and the disposition of interests in Alliance Pipeline and Aux Sable - Acquired Questar Gas Company on May 31, 2024, for $4.1 billion (US$3.0 billion) cash, enhancing natural gas distribution, storage, and transmission services[60][61] - Acquired The East Ohio Gas Company on March 6, 2024, for $5.8 billion (US$4.3 billion) cash, expanding natural gas distribution services in Ohio[65][67] - Acquired six Morrow Renewables RNG production facilities on January 2, 2024, for $1.3 billion (US$1.0 billion), advancing a lower-carbon strategy[72][73] - Disposed of 50.0% interest in Alliance Pipeline, Aux Sable, and NRGreen for $3.1 billion on April 1, 2024, resulting in a $1.1 billion pre-tax gain[79] - Formed the Whistler Parent JV on May 29, 2024, contributing the Rio Bravo Pipeline project and $487 million cash for a 19.0% equity interest and a special 25.0% economic interest in the Rio Bravo Pipeline project[80][82] Debt (Note 7) This note details the company's committed credit facilities, including maturities and available amounts, and summarizes long-term debt issuances and repayments Total Committed Credit Facilities (As at June 30, 2025) | Company | Maturity | Facilities (Millions CAD) | Draws (Millions CAD) | Available (Millions CAD) | | :------ | :------- | :------------------------ | :------------------- | :----------------------- | | Enbridge Inc. | 2026-2049 | 8,032 | 6,112 | 1,920 | | Enbridge (U.S.) Inc. | 2026-2029 | 10,259 | 3,781 | 6,478 | | Enbridge Pipelines Inc. | 2026 | 2,000 | 441 | 1,559 | | Enbridge Gas Inc. | 2026 | 2,500 | 915 | 1,585 | | Total | | 22,791 | 11,249 | 11,542 | - Renewed approximately $8.8 billion of 364-day extendible credit facilities, extending maturities to July 2027, and $7.8 billion of five-year credit facilities, extending maturities to July 2030[85] - During the six months ended June 30, 2025, completed long-term debt issuances totaling $2.8 billion and US$2.8 billion, and repayments totaling US$2.5 billion, $661 million, and €21 million[90][91] Share Capital (Note 8) This note describes the ATM equity issuance program, including shares issued and proceeds, and its termination to fund acquisitions - Established an ATM equity issuance program in May 2024 to issue up to $2.75 billion of common shares[97] - Issued 51,298,629 common shares under the ATM Program for aggregate gross proceeds of $2.50 billion from May 15, 2024, to June 30, 2024[98] - The ATM Program was terminated on August 1, 2024, with proceeds partially funding the Questar Acquisition and the acquisition of Public Service Company of North Carolina, Incorporated[98] Components of Accumulated Other Comprehensive Income (Note 9) This note details changes in accumulated other comprehensive income attributable to common shareholders, primarily due to cumulative translation adjustments Changes in AOCI Attributable to Common Shareholders (Six Months Ended June 30) | Component | Balance Jan 1, 2025 (Millions CAD) | OCI Retained (Millions CAD) | OCI Reclassified (Millions CAD) | Tax Impact (Millions CAD) | Balance June 30, 2025 (Millions CAD) | | :-------- | :--------------------------------- | :-------------------------- | :------------------------------ | :------------------------ | :----------------------------------- | | Cash Flow Hedges | 407 | (15) | 2 | (1) | 408 | | Net Investment Hedges | (2,033) | 413 | — | — | (1,620) | | Cumulative Translation Adjustment | 8,452 | (3,356) | — | — | 5,096 | | Total AOCI | 7,115 | (2,863) | (2,863) | (8) | 4,244 | - Other comprehensive income/(loss) retained in AOCI for the six months ended June 30, 2025, was a loss of $2,863 million, primarily due to cumulative translation adjustments[99] Risk Management and Financial Instruments (Note 10) This note describes Enbridge's use of financial derivatives to hedge foreign currency and interest rate exposures, and details the valuation of derivative instruments - Enbridge uses financial derivative instruments to hedge foreign currency-denominated earnings exposure and US dollar-denominated debt to hedge net investments in US dollar-denominated assets[105] - The company limits floating rate debt to 30% of total debt and uses interest rate swaps and costless collars to mitigate short-term interest rate volatility[106] Total Net Derivative Asset/(Liability) (As at June 30, 2025 and December 31, 2024) | Metric | June 30, 2025 (Millions CAD) | December 31, 2024 (Millions CAD) | | :----- | :----------------------------- | :------------------------------- | | Foreign exchange contracts | (947) | (2,175) | | Interest rate contracts | 32 | 53 | | Commodity contracts | (11) | (131) | | Other contracts | — | 3 | | Total Net Derivative Asset/(Liability) | (926) | (2,250) | - Level 3 derivatives, primarily long-dated power, NGL, and natural gas contracts, are valued using less observable inputs and methodologies benchmarked against industry standards[136][137] Income Taxes (Note 11) This note presents effective income tax rates for the periods ended June 30, 2025 and 2024, and explains the factors influencing rate changes Effective Income Tax Rates (Periods Ended June 30) | Period | 2025 | 2024 | | :----- | :--- | :--- | | Three months | 22.3% | 27.0% | | Six months | 22.1% | 24.0% | - Decreases in effective income tax rates were primarily due to higher US investment tax credits and lower US minimum tax, partially offset by prior year tax benefits[154] - The One Big Beautiful Bill Act, signed July 4, 2025, is not expected to materially impact consolidated financial results[155] Other Income/(Expense) (Note 12) This note details other income and expenses for the three and six months ended June 30, 2025 and 2024, including foreign currency gains/losses and pension credits Other Income/(Expense) (Three Months Ended June 30) | Metric | 2025 (Millions CAD) | 2024 (Millions CAD) | | :----- | :------------------ | :------------------ | | Realized foreign currency gain/(loss) | (104) | (8) | | Unrealized foreign currency gain/(loss) | 1,194 | (213) | | Net defined pension and OPEB credit | 72 | 48 | | Other | 207 | 142 | | Total | 1,369 | (31) | Other Income/(Expense) (Six Months Ended June 30) | Metric | 2025 (Millions CAD) | 2024 (Millions CAD) | | :----- | :------------------ | :------------------ | | Realized foreign currency gain/(loss) | (286) | 114 | | Unrealized foreign currency gain/(loss) | 1,249 | (1,071) | | Net defined pension and OPEB credit | 144 | 89 | | Other | 382 | 286 | | Total | 1,489 | (582) | Contingencies (Note 13) This note addresses legal and regulatory actions, uncertain tax positions, and self-insurance, with management believing no material impact on financial position or results - Management believes that the resolution of various legal and regulatory actions and proceedings will not materially impact the interim consolidated financial position or results of operations[157] - Enbridge maintains tax liabilities for uncertain tax positions, which may be challenged by tax authorities[158] - The company self-insures a significant portion of certain risks through wholly-owned captive insurance subsidiaries, and future insurance coverage at commercially reasonable rates is not assured[159][160] ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This section provides management's analysis of Enbridge's financial condition and operational results, covering recent developments, segment performance, growth projects, liquidity, and legal updates - Enbridge continues to qualify as a foreign private issuer but files annual, quarterly, and current reports with the SEC as a domestic issuer[164] - This discussion should be read in conjunction with the interim consolidated financial statements and the annual report on Form 10-K for the year ended December 31, 2024[163] Introduction This section introduces the MD&A, emphasizing its reliance on interim financial statements and the annual Form 10-K, and clarifies Enbridge's SEC filing status - The MD&A is based on and should be read in conjunction with the interim consolidated financial statements and the annual report on Form 10-K for the year ended December 31, 2024[163] - Enbridge continues to qualify as a foreign private issuer but files reports (10-K, 10-Q, 8-K) with the SEC as a domestic issuer[164] Recent Developments This section highlights recent corporate activities, including an Indigenous alliance investment, FERC rate case settlements, an Ohio rate case outcome, and debt issuances and facility renewals - Stonlasec8 Indigenous Alliance Limited Partnership invested $736 million for a 12.5% interest in the Westcoast Energy Inc. BC natural gas pipeline system on July 2, 2025[165] - Algonquin Gas Transmission and Maritimes & Northeast Pipeline US rate cases were settled and approved by FERC in April 2025, with rates effective December 2024 and January 2025, respectively[167][168] - Enbridge Gas Ohio's rate case resulted in an annual revenue decrease of US$26.3 million and disallowances of $330 million (US$240 million) in June 2025[176] - Enbridge completed long-term debt issuances totaling $2.8 billion and US$2.8 billion in February and June 2025, and renewed approximately $8.8 billion of 364-day extendible credit facilities and $7.8 billion of five-year credit facilities in July 2025[181][183][184] Results of Operations This section analyzes earnings attributable to common shareholders for the three and six months ended June 30, 2025 and 2024, highlighting impacts from derivative gains and dispositions Earnings Attributable to Common Shareholders (Periods Ended June 30) | Metric | Three Months 2025 (Millions CAD) | Three Months 2024 (Millions CAD) | Six Months 2025 (Millions CAD) | Six Months 2024 (Millions CAD) | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Earnings attributable to common shareholders | 2,177 | 1,848 | 4,438 | 3,267 | | Earnings per common share | 1.00 | 0.86 | 2.04 | 1.53 | - Three months ended June 30, 2025, earnings were positively impacted by a $1.4 billion non-cash, net unrealized derivative fair value gain, offset by the absence of a $1.1 billion gain on sale from 2024 dispositions[189] - Six months ended June 30, 2025, earnings were positively impacted by a $1.3 billion non-cash, net unrealized derivative fair value gain and the absence of $105 million severance costs in 2024, offset by the absence of a $1.1 billion gain on sale from 2024 dispositions and a $330 million impairment in 2025[193] Business Segments Liquids Pipelines This section analyzes EBITDA for the Liquids Pipelines segment, detailing impacts from lower spot volumes and contributions from litigation settlements and Mainline System Liquids Pipelines EBITDA (Periods Ended June 30) | Metric | Three Months 2025 (Millions CAD) | Three Months 2024 (Millions CAD) | Six Months 2025 (Millions CAD) | Six Months 2024 (Millions CAD) | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | EBITDA | 2,331 | 2,450 | 4,924 | 4,854 | - Three months ended June 30, 2025, EBITDA was negatively impacted by $119 million due to lower spot volumes on the Flanagan South and Spearhead Pipelines and lower Bakken System volumes[195] - Six months ended June 30, 2025, EBITDA increased by $41 million (after non-operating factors) due to equity earnings from a litigation settlement, higher Mainline System contributions, and favorable US dollar translation[197] Gas Transmission This section analyzes EBITDA for the Gas Transmission segment, detailing impacts from the absence of a gain on sale from dispositions and increased revenues from rate case settlements Gas Transmission EBITDA (Periods Ended June 30) | Metric | Three Months 2025 (Millions CAD) | Three Months 2024 (Millions CAD) | Six Months 2025 (Millions CAD) | Six Months 2024 (Millions CAD) | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | EBITDA | 1,442 | 2,095 | 2,915 | 3,360 | - Three months ended June 30, 2025, EBITDA was negatively impacted by $955 million due to the absence of a $1.1 billion gain on sale from the 2024 disposition of Alliance Pipeline and Aux Sable[198] - Six months ended June 30, 2025, EBITDA increased by $467 million (after non-operating factors) due to favorable contracting, lower operating costs on US Gas Transmission assets, increased revenues from rate case settlements, and new equity investments[201] Gas Distribution and Storage This section analyzes EBITDA for the Gas Distribution and Storage segment, detailing impacts from an impairment related to the Ohio Commission's order and contributions from acquired US Gas Utilities Gas Distribution and Storage EBITDA (Periods Ended June 30) | Metric | Three Months 2025 (Millions CAD) | Three Months 2024 (Millions CAD) | Six Months 2025 (Millions CAD) | Six Months 2024 (Millions CAD) | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | EBITDA | 510 | 567 | 2,110 | 1,332 | - EBITDA for both three and six months ended June 30, 2025, was negatively impacted by a $330 million impairment related to pension and other disallowances from the Ohio Commission's June 2025 order[202] - Six months ended June 30, 2025, EBITDA increased by $1.1 billion (after impairment) due to two full quarters of contributions from acquired US Gas Utilities, positive weather impact, lower operating costs, and higher storage optimization and distribution margin at Enbridge Gas Ontario[205] Renewable Power Generation This section analyzes EBITDA for the Renewable Power Generation segment, detailing decreases due to lower wind development fees and reduced contributions from European offshore wind facilities Renewable Power Generation EBITDA (Periods Ended June 30) | Metric | Three Months 2025 (Millions CAD) | Three Months 2024 (Millions CAD) | Six Months 2025 (Millions CAD) | Six Months 2024 (Millions CAD) | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | EBITDA | 109 | 138 | 332 | 395 | - Three months ended June 30, 2025, EBITDA decreased by $27 million (after non-operating factors) due to lower fees on wind development contracts and reduced contributions from European offshore wind facilities[206] - Six months ended June 30, 2025, EBITDA decreased by $65 million (after non-operating factors) primarily due to lower contributions from European offshore wind facilities, including weaker wind resources[206] Eliminations and Other This section analyzes EBITDA for Eliminations and Other, detailing positive impacts from non-cash unrealized gains on derivative financial instruments Eliminations and Other EBITDA (Periods Ended June 30) | Metric | Three Months 2025 (Millions CAD) | Three Months 2024 (Millions CAD) | Six Months 2025 (Millions CAD) | Six Months 2024 (Millions CAD) | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | EBITDA | 1,167 | (155) | 1,207 | (797) | - Three months ended June 30, 2025, EBITDA was positively impacted by $1.4 billion due to a non-cash, net unrealized gain of $1.3 billion on derivative financial instruments[210] - Six months ended June 30, 2025, EBITDA was positively impacted by $2.4 billion due to a non-cash, net unrealized gain of $1.4 billion on derivative financial instruments and the absence of $105 million severance costs in 2024[211] Growth Projects - Commercially Secured Projects This section outlines material commercially secured growth projects, including estimated capital costs, expenditures to date, and expected in-service dates across various segments Material Commercially Secured Projects (As at June 30, 2025) | Project | Segment | Enbridge's Ownership Interest | Estimated Capital Cost | Expenditures to Date | Expected In-Service Date | | :------ | :------ | :---------------------------- | :--------------------- | :------------------- | :----------------------- | | Texas Eastern Modernization | Gas Transmission | 100% | US$0.4 billion | US$191 million | 2025 - 2026 | | T-North Expansion (Aspen Point) | Gas Transmission | 100% | $1.2 billion | $459 million | 2026 | | Tennessee Ridgeline Expansion | Gas Transmission | 100% | US$1.1 billion | US$327 million | 2026 | | Woodfibre LNG | Gas Transmission | 30% | US$2.9 billion | US$1.1 billion | 2027 | | Moriah Energy Center | Gas Distribution and Storage | 100% | US$0.6 billion | US$300 million | 2027 | | Sequoia Solar | Renewable Power Generation | 100% | US$1.1 billion | US$579 million | 2025 - 2026 | | Calvados Offshore Wind | Renewable Power Generation | 21.7% | $1.0 billion (€0.6 billion) | $426 million (€294 million) | 2027 | - The T-North Expansion (Birch Grove) project, a 100% owned BC Pipeline system expansion, aims to add 178 million cubic feet per day capacity with an expected in-service date in Q3 2028[222] - Updated commercial terms for Woodfibre LNG are agreed upon, with the preferred return expected closer to construction completion, de-risking Enbridge's return on capital[222] Liquidity and Capital Resources This section discusses Enbridge's liquidity strategy, detailing committed credit facilities, available liquidity, and cash flows from operating, investing, and financing activities - Enbridge targets maintaining sufficient liquidity through committed credit facilities to fund anticipated requirements for approximately one year without accessing capital markets[219] Total Committed Credit Facilities (As at June 30, 2025) | Company | Maturity | Facilities (Millions CAD) | Draws (Millions CAD) | Available (Millions CAD) | | :------ | :------- | :------------------------ | :------------------- | :----------------------- | | Enbridge Inc. | 2026-2049 | 8,032 | 6,112 | 1,920 | | Enbridge (U.S.) Inc. | 2026-2029 | 10,259 | 3,781 | 6,478 | | Enbridge Pipelines Inc. | 2026 | 2,000 | 441 | 1,559 | | Enbridge Gas Inc. | 2026 | 2,500 | 915 | 1,585 | | Total | | 22,791 | 11,249 | 11,542 | - Net available liquidity totaled $12.7 billion at June 30, 2025, comprising $11.5 billion in available credit facilities and $1.2 billion in unrestricted cash[227] - During the six months ended June 30, 2025, cash provided by operating activities was $6,291 million, cash used in investing activities was $4,648 million, and cash used in financing activities was $2,166 million[236] Summarized Financial Information This section outlines the reciprocal guarantee arrangement for senior notes among Enbridge, SEP, and EEP, and presents a summarized combined statement of earnings - Enbridge, SEP, and EEP have a reciprocal guarantee arrangement for outstanding senior notes, placing holders of guaranteed notes of the Partnerships in the same position as holders of Enbridge's guaranteed notes[240] Summarized Combined Statement of Earnings (Six Months Ended June 30, 2025) | Metric | 2025 (Millions CAD) | | :----- | :------------------ | | Operating income | 3 | | Earnings | 1,682 | | Earnings attributable to common shareholders | 1,477 | - The guarantees of the Guaranteed Enbridge Notes contain provisions to limit liability to prevent fraudulent conveyance or transfer under US federal or state law[250] Legal and Other Updates This section provides updates on significant legal proceedings, including the US Supreme Court review of the Line 5 lawsuit, the Line 5 Tunnel Project permitting, and the DAPL operation appeal - The US Supreme Court granted Enbridge's petition to review the Sixth Circuit's decision on the Michigan Attorney General's Line 5 lawsuit, with a decision anticipated in the first half of 2026[257] - The US Army Corps of Engineers announced in April 2025 that the Line 5 Tunnel Project qualifies for expedited federal permitting review[258] - The District Court dismissed the Standing Rock Sioux Tribe's new complaint seeking to permanently enjoin DAPL's operation on March 28, 2025; the Tribe filed an appeal on May 27, 2025[267] ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK This section refers to the annual report for market risk disclosures and confirms no material changes since the previous filing - Market risk exposure is described in Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk of the annual report on Form 10-K for the year ended December 31, 2024[270] - No material changes to market risk exposure have occurred since the previous annual report[270] ITEM 4. CONTROLS AND PROCEDURES This section confirms the effectiveness of disclosure controls and procedures as of June 30, 2025, and reports no material changes in internal control over financial reporting - Disclosure controls and procedures were evaluated as of June 30, 2025, and deemed effective by the CEO and CFO[272] - No material changes in internal control over financial reporting occurred during the fiscal quarter ended June 30, 2025[273] PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS This section states that ongoing legal and regulatory actions are not expected to materially impact financial results, and no significant environmental proceedings are present - Management believes that the resolution of various legal and regulatory actions will not materially impact the consolidated financial position or results of operations[275] - No environmental proceedings requiring disclosure (monetary sanctions over US$1 million) are present in this quarterly report[276] ITEM 1A. RISK FACTORS This section highlights new or modified risks related to government policies on tariffs and trade relations, detailing potential adverse impacts on business and financial results - No material modifications to risk factors other than those related to government policies on tariffs and trade relations[277] - US tariff announcements (e.g., 25% on Canadian goods, 50% on steel/aluminum) and potential retaliatory measures introduce significant risks, including macroeconomic worsening, inflationary pressures, increased costs, and reduced demand for Canadian energy[278][279][280] - Uncertainty in North American energy and capital markets, supply chain disruption, and jeopardized competitiveness could result from these trade measures[280] ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS This section confirms that there were no unregistered sales of equity securities or use of proceeds to report during the period - No unregistered sales of equity securities or use of proceeds to report[282] ITEM 3. DEFAULTS UPON SENIOR SECURITIES This section confirms that there were no defaults upon senior securities to report during the period - No defaults upon senior securities to report[283] ITEM 4. MINE SAFETY DISCLOSURES This section states that mine safety disclosures are not applicable to the company's operations - Mine safety disclosures are not applicable[284] ITEM 5. OTHER INFORMATION This section notes officer and director participation in stock-based compensation plans, potentially involving Rule 10b5-1 trading arrangements - Officers and directors participate in Enbridge stock-based compensation and benefit plans, potentially making elections under Rule 10b5-1 or non-Rule 10b5-1 trading arrangements[285] ITEM 6. EXHIBITS This section lists the exhibits included in or incorporated by reference into the quarterly report, such as Subsidiary Guarantors and SOX Certifications - Exhibits include Subsidiary Guarantors, Certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, and Inline XBRL documents[288] Signatures This section contains the signatures of the President and CEO, and the Executive Vice President and CFO, certifying the report on behalf of Enbridge Inc - Report signed by Gregory L. Ebel, President and Chief Executive Officer, and Patrick R. Murray, Executive Vice President and Chief Financial Officer, on August 1, 2025[292]