Enbridge(US:ENB)2026-02-13 12:05Financial Performance and Metrics - Enbridge uses EBITDA as a key performance measure, providing transparency and insight into its financial performance[16]. - The company holds a 13.2% effective economic interest in DCP, impacting its financial results through changes in natural gas and NGL prices[285]. - Enbridge's financial results are subject to fluctuations in commodity prices, which can adversely affect revenue and profitability[282]. - The company is exposed to credit risk from customers and counterparties, which could adversely affect earnings and cash flows[286]. - Changes in tax rates and exposure to additional tax liabilities may affect the company's effective tax rates and financial condition[302]. - The company is subject to examinations by tax authorities, and adverse outcomes could materially affect financial results[303]. Acquisitions and Growth Opportunities - The company completed the acquisitions of US Gas Utilities in 2024, which are expected to enhance growth opportunities, although integration challenges may arise[275]. - Integration of acquisitions may involve unforeseen expenses and delays, potentially impacting the anticipated benefits and overall financial performance[276]. Regulatory and Compliance Risks - Enbridge faces risks related to sustainability and regulatory compliance, which could lead to increased costs and operational challenges[270]. - Enbridge's operations are influenced by evolving government regulations, which may affect project approvals and operational costs[288]. - FERC rescinded draft GHG and Updated Certificate policy statements, eliminating an order that slowed project construction timelines[294]. - Compliance with environmental laws is expected to require significant capital investment and higher operating costs, which may not be recoverable[295]. - Failure to obtain required environmental regulatory approvals could delay or prevent the operation of existing facilities or development of new ones[296]. - Regulatory scrutiny may increase operating costs or limit future projects, impacting future earnings and construction costs[299]. - Economic regulation risk could negatively impact business operations and financial results if regulatory approvals for commercial arrangements are not secured[300]. - Renewable Power Generation assets are subject to variable regulations that could adversely impact revenues and earnings[301]. Market and Operational Risks - Unexpected shifts in energy demand, particularly due to climate change concerns, could reduce throughput volumes on pipeline systems, impacting revenue[271]. - Enbridge relies on access to capital markets for financing, and any downgrade in credit ratings could significantly increase borrowing costs[279]. - Ongoing legal proceedings related to business operations could result in additional expenditures that adversely affect financial results[304].