Energy Demand and Inflows - System gross demand is expected to grow by 1.7% from 2024 to 2025[22] - The Compound Annual Growth Rate (CAGR) for gross demand over the last 5 years is 4.1%[23] - Natural energy inflow in October 2025 was 67% of the Long-Term Average (LTA), with November 2025 recovering to 75% LTA[27] - The expected natural energy inflow for 2025 is 79.6% of the LTA[27] - From 2016 to 2025, the average inflow was 84% LTA, the lowest in history[33] Generation and Storage - Peak storage level for 2025 reached 70%, similar to 2024, with a minimum expected storage of 44% by 2025[36] - Distributed Generation (DG) is developing faster than centralized solar generation[39] Spot Prices and Market Prices - Average spot price in the Southeast region since January 1st is 219 BRL/MWh[44, 51] - Average spot price in the Northeast region since January 1st is 167 BRL/MWh[44, 51] Curtailment - Wind curtailment reached 39.9% for some producers, averaged from December 2024 to November 2025[59] - Solar curtailment reached 44.8% for some producers, averaged from December 2024 to November 2025[61] - The industry's current curtailment forecast is more negative, anticipating an average of 20% to 25%[70] TAG (Gas Transportation) - Market opening has led to a 2,660% increase in the number of contracts and a 106% increase in active chargers among the three main carriers between 2022 and 2025[93] - Market opening brought new gas suppliers, with 71% of the volume contracted by distributors in the Northeast Region in 2024 coming from private suppliers[99] - Relative savings in TAG's area due to market opening is R$7 billion[99]

Financial Data and Key Metrics Changes - Enbridge reported a record third quarter adjusted EBITDA, driven by contributions from U.S. gas utilities and organic growth in gas transmission [6][24] - The debt to EBITDA ratio for the quarter was 4.8 times, remaining within the target leverage range of 4.5 to 5 times [6][27] - Compared to Q3 2024, adjusted EBITDA increased by $66 million, while EPS decreased from $0.55 to $0.46 per share due to seasonal lower EBITDA in Q3 [24][25] Business Line Data and Key Metrics Changes - Liquids segment achieved record mainline volumes of 3.1 million barrels per day, reflecting strong demand for Canadian crude [10][11] - Gas transmission experienced strong performance with favorable contracting outcomes and contributions from new projects [24] - Gas distribution segment benefited from a full quarter contribution from Enbridge Gas North Carolina and quick-turn capital projects in Ohio [24] Market Data and Key Metrics Changes - The U.S. Northeast is experiencing increased demand for natural gas, with expansions in the Algonquin pipeline to address supply shortages [15][17] - The North American storage market is tightening, with Enbridge positioned to add over 60 BCF of new natural gas storage capacity [17][18] Company Strategy and Development Direction - Enbridge's strategy focuses on executing a diverse range of growth projects across all business segments, with a commitment to maintaining a low-risk business model [10][28] - The company anticipates achieving 5% growth through the end of the decade, supported by $35 billion in secured capital [28][29] - Enbridge is advancing projects that align with energy demand growth driven by LNG development, power generation, and data centers [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's resilience and the ability to deliver strong results through various economic cycles [25][28] - The company noted improving policy support for energy infrastructure investments, which is expected to enhance growth opportunities [28][55] Other Important Information - Enbridge has sanctioned $3 billion in new growth capital projects during the quarter, showcasing continued execution on growth commitments [7][27] - The company has maintained a consistent dividend growth for 30 consecutive years, reflecting the stability of its business fundamentals [27] Q&A Session Summary Question: Acceleration in gas distribution and storage - Management noted an acceleration in commercial activity driven by demand from data centers and power generation, particularly in Ohio and Utah [30][31] Question: Line 5 construction and permitting - Management indicated that permitting for the Wisconsin Reboot and Michigan tunnel is regaining momentum, with expectations to complete the Wisconsin Reboot by 2027 [34] Question: Mainline optimization phase two - Management confirmed that the optimization is not an acceleration but a continuation of efforts to meet customer demand, with significant supply growth expected from Canadian producers [37][39] Question: Growth outlook and capital sequencing - Management expressed confidence in maintaining capital spending between $9 billion and $10 billion, with a strong project pipeline supporting growth [42][44] Question: LNG Canada and gas storage opportunities - Management highlighted strong customer interest in gas storage expansions, with significant contracts already signed for new capacity [49] Question: Managing cost risk in hot markets - Management emphasized prudent capital management and strong contractor relationships to mitigate cost risks in competitive areas [51][52]

Summary of Forum Energy Technologies (FET) Conference Call Company Overview - **Company**: Forum Energy Technologies (FET) - **Ticker**: FET - **Industry**: Energy Equipment Manufacturing - **CEO**: Neil Lux - **Coverage Initiation**: Coverage launched with a $24 price target due to strong global presence and cash flow generation capabilities [2][10] Core Business and Financial Performance - FET does not drill wells or produce hydrocarbons but manufactures critical capital equipment and consumable products for energy production [6][7] - Revenue segments include: - **Artificial Lift and Downhole**: Products for maintaining production and increasing efficiency [8] - **Drilling and Completion**: Equipment for drilling rigs and well completion activities [9] - Financial performance highlights: - Revenue growth at a compound rate of 15% since 2021 [9] - EBITDA growth over 70% annually, with margins improving from under 4% in 2021 to over 12% in 2024 [10] - Approximately 50% of sales are outside the U.S. [9] Market Demand and Growth Drivers - Global energy demand is projected to increase by 30% over the next two decades, driven by population growth, energy security, and quality of life improvements [13][15] - Fossil fuels are expected to satisfy around two-thirds of energy demand by 2050, despite growth in alternative energy sources [16] - FET's revenue is closely correlated with global drilling rig counts, indicating that increased energy demand will drive revenue growth [17] Competitive Strategy - FET aims to grow market share through: - Developing differentiated products and technologies [20] - Competing in niche markets with limited competition [22] - Focusing on innovation to meet customer demands for efficiency and safety [24] - Examples of innovative products include: - EnviroLite greaseless cable for faster operations [25] - DuraCoil coil tubing for enhanced performance [26] - Veraperm Energy Services for customized sand and flow control solutions [27] Financial Guidance and Shareholder Returns - 2025 is expected to be a transitional year with a potential 2-5% decrease in global drilling activity [32] - Adjusted EBITDA guidance for 2025 is between $80 million to $105 million, with free cash flow guidance of $40 million to $60 million [32] - FET plans to utilize 50% of free cash flow for debt reduction and the remainder for strategic investments, including a $75 million share repurchase program [38][39] Risk Management and Market Conditions - The company is proactively managing risks related to geopolitical and macroeconomic uncertainties, including price increases to offset tariffs [34][35] - FET's low capital expenditure requirements (less than 1% of revenue) allow for better cash flow generation compared to traditional oilfield service companies [54][56] Conclusion - FET presents a compelling investment opportunity with a strong track record of performance, significant free cash flow yield, and a robust growth strategy [39][40] - The company is well-positioned to capitalize on increasing energy demand while maintaining a focus on innovation and shareholder returns [41][63]