US federal and state officials are lining up with oil refiners to support a plan by Phillips 66 and Kinder Morgan to deliver gasoline to California via what could become the world’s largest fuel pipeline https://t.co/azLTc0ZlxE ...

I’ve had several folks ask me about the latest pitch from Porter & Co., which was mostly about hedging for the likely collapse of the “circular economy” of artificial intelligence capital investments that revolves around OpenAI.It’s a compelling argument that you’ve probably heard across the financial media (and social media) over the past year — that OpenAI is building a house of cards by raising tons of money to pay for hardware and services from partners who own data centers and provide chips, but is far ...

Enbridge Inc. (NYSE:ENB) on Wednesday disclosed the 2026 guidance, expecting adjusted EBITDA of $20.2 billion–$20.8 billion and distributable cash flow (DCF) per share of $5.70–$6.10. • ENB is in positive territory. Watch the momentum here.Further 2026 GuidanceIn particular, the company sees EBITDA from Liquids Pipelines of about $9.6 billion, Gas Transmission of around $5.5 billion and Gas Distribution & Storage of roughly $4.5 billion.Enbridge plans to invest about $10 billion in growth capital in 2026, e ...

Core Viewpoint - Enbridge Inc. announced its 2026 financial guidance, projecting steady growth driven by new projects and strong utilization of existing assets, alongside a 3% increase in its annual common share dividend [1][2]. Financial Guidance - The company provided 2026 adjusted EBITDA guidance of CAD 20.2 billion to CAD 20.8 billion and distributable cash flow (DCF) per share guidance of CAD 5.70 to CAD 6.10 [1]. - Enbridge reaffirmed its 2025 full-year guidance, expecting to finish in the upper half of the EBITDA range of CAD 19.4 billion to CAD 20.0 billion and at the midpoint for DCF per share [1]. - The company anticipates a compound annual growth rate of 7-9% for EBITDA, 4-6% for adjusted earnings per share (EPS), and approximately 3% for DCF per share from 2023 to 2026 [1]. Dividend Increase - Enbridge declared a 3% increase in its quarterly common share dividend from CAD 0.9425 to CAD 0.97, effective March 1, 2026, marking the 31st consecutive annual increase [1]. Growth Drivers - The projected EBITDA for 2026 is supported by approximately CAD 8 billion of new projects entering service, strong growth from recent rate settlements, and optimization of existing assets [1]. - Key growth drivers include contributions from organic projects, increased rates on U.S. Gas Transmission assets, and favorable re-contracting [1]. Capital Investments and Financing - Enbridge plans to deploy approximately CAD 10 billion of growth capital in 2026, with a strong balance sheet and a debt-to-EBITDA ratio expected to remain within the target range of 4.5-5.0x [1]. - The financing plan includes CAD 10 billion of debt issuances, primarily for refinancing CAD 5 billion of debt maturities, with no external equity required [1].

Group 1: Canadian Energy Sector Overview - The Canadian energy sector, particularly oil and gas stocks, has reached a new all-time high, including dividends, reflecting strong performance [2][4] - The investment thesis for Canadian oil and gas stocks has proven successful, with the index (XEG-T) increasing by 410% since October 2020, as companies have heavily invested in their projects and are well-positioned for lower price environments [4][8] - Canadian pipeline companies are also increasing their volumes, with TC Energy and Enbridge being highlighted as strong performers in the sector [6][8] Group 2: Key Companies in the Sector - Major companies such as Canadian Natural Resources (CNQ), Imperial Oil (IMO), Suncor Energy (SU), and Tourmaline Oil (TOU) are favored investments, with many accounts holding these stocks [5] - Fortis Inc. reported net earnings of CAD 409 million for Q3 2025 and increased its dividend by 4.1%, with a capital plan of CAD 28.8 billion for 2026-2030 [17] - Brookfield Infrastructure Partners operates in various sectors, including utilities, and has a valuation that is 7.9% higher than its current price [19] Group 3: Performance and Future Outlook - The performance of Canadian energy holdings is beneficial for Canadian investors and indices, with materials being a significant driver of stock outperformance compared to the U.S. [8][12] - Analysts have noted the durability of earnings in Canadian regulated utilities, with companies like Fortis and Hydro One showing strong growth trajectories [11][12] - The long-term outlook for the utility sector suggests a reliable total return in the high-single to low-double digits, driven by sustainable dividend growth [12]

South Bow Investor Day Summary Company Overview - **Company**: South Bow - **Event**: Inaugural Investor Day - **Key Executives Present**: Bevin Wirzba (CEO), Van Dafoe (CFO), Richard Prior (COO) [1][2] Core Industry Insights - **Industry Focus**: Heavy oil supply and demand dynamics - **Market Position**: South Bow connects the strongest supply of heavy oil globally to high demand markets in the Midwest and Gulf Coast [4][9] - **Unique Value Proposition**: South Bow operates an integrated value chain, enhancing customer relationships and creating value for both shareholders and customers [4][10] Financial Performance and Goals - **Milestones Achieved**: Successfully completed a spin-off from TC, listed on NYSE on October 8, 2024, and met all initial commitments [6][7] - **Financial Strategy**: Focus on reducing costs, maintaining a lean operational model, and optimizing capital allocation [11][30] - **Debt Management**: Targeting a leverage ratio of four times by 2027, ahead of schedule [30][54] Safety and Operational Excellence - **Safety Record**: Achieved 1.5 million work hours without a recordable incident in 2025 [18] - **Operational Goals**: Continuous improvement in safety performance and operational efficiency [27][33] - **Asset Integrity Focus**: Investing $150 million annually in pipeline integrity programs, aiming for industry-leading performance [56][57] Growth Strategy - **Growth Opportunities**: Plans for both organic growth (e.g., BlackRod project) and inorganic opportunities to expand revenue streams [28][41] - **Market Demand**: Anticipated increase in Canadian crude oil demand in the U.S., particularly in PADD 2 and PADD 3 markets [71][72] - **Production Forecast**: Potential for an additional million barrels per day from the Western Canadian Sedimentary Basin (WCSB) over the next decade [74] Key Challenges and Responses - **Incident Management**: Addressed the Milepost 171 incident effectively, with rapid response and remediation efforts [62][63] - **Regulatory Compliance**: Ongoing transparency with regulators and commitment to improving pipeline integrity [66][67] Conclusion - **Commitment to Shareholders**: South Bow emphasizes a sustainable dividend, financial discipline, and a focus on long-term growth while maintaining a strong balance sheet [44][45][53] - **Future Outlook**: Confident in the ability to leverage existing assets and market conditions to drive growth and enhance shareholder value [48][72]

Core Insights - Enbridge Inc. has approved a $1.4 billion expansion project, the Mainline Optimization Phase 1, to increase the capacity of the Mainline and Flanagan South pipelines, which are essential for transporting Canadian crude oil to U.S. refineries [1][8] Capacity Expansion for Mainline and Flanagan South - The expansion will add a total capacity of 250,000 barrels per day (bbl/d) for Canadian oil producers, enhancing the ability to transport crude to U.S. Midwest and Gulf Coast markets [2] - The Mainline network will see an increase of 150,000 bbl/d through terminal upgrades and upstream system enhancements, while the Flanagan South pipeline capacity will be boosted by 100,000 bbl/d via new pump stations and increased terminal capacity [2] - The expanded capacity is expected to be operational by 2027 [2] Current Capacity and Performance - The Mainline System currently has a capacity of 3 million bbl/d and achieved record shipments of 3.1 million bbl/d in the third quarter [3] - The Mainline Optimization Phase 1 project aims to enhance egress capacity for Canadian oil shippers while maintaining capital efficiency, improving connectivity to refining markets across North America [3] Future Expansion Considerations - Enbridge is evaluating a potential second phase of expansion for the Mainline network, which could add another 250,000 bbl/d [4] - The company plans to assess commercial interest in this second phase next year, indicating a strategic focus on expanding transportation networks to the U.S. despite Canadian government efforts to diversify markets [4] Oil Production Trends - Canadian oil production reached a record 5.1 million bbl/d last year, with expectations of growth by 500,000-600,000 bbl/d by the end of the decade [5] - Enbridge's planned expansions are aligned with anticipated demand growth in the coming years [5]

Core Viewpoint - TC Energy is highlighted as a strong investment choice in the energy sector, particularly for investors seeking steady income due to its extensive pipeline network and power generation capabilities [1]. Group 1: Company Overview - TC Energy is headquartered in Calgary, Alberta, and operates nearly 58,000 miles of natural gas pipelines [1]. - The company manages seven power-generation facilities that can supply energy to over 4 million homes [1]. Group 2: Performance Metrics - TC Energy has seen a Relative Strength (RS) Rating upgrade to 71, indicating improving technical performance [3]. - The company has reached an RS Rating benchmark of 80-plus, showcasing its strong market position [3]. Group 3: Market Position - TC Energy is noted for offering a rare combination of high yield and steady stock performance, making it an attractive option for investors [3].

Core Insights - Enbridge Inc. reported Q3 2025 adjusted EPS of 33 cents, missing the Zacks Consensus Estimate of 39 cents and down from 40 cents in the previous year [1][10] - Total revenues for the quarter were $10.6 billion, a decline from $10.9 billion year-over-year, also missing the Zacks Consensus Estimate of $10.86 billion [1][10] - The weak performance was primarily due to lower Adjusted EBITDA contributions from the Liquids Pipelines and Renewable Power Generation segments [2][10] Segmental Analysis - **Liquids Pipelines**: Adjusted EBITDA was C$2.31 billion, down from C$2.34 billion year-over-year, affected by lower contributions from the Flanagan South and Spearhead Pipelines [4] - **Gas Transmission**: Adjusted earnings increased to C$1.26 billion from C$1.15 billion, driven by favorable contracting and contributions from the Venice Extension project [5] - **Gas Distribution and Storage**: Profit rose to C$560 million from C$522 million, supported by increased contributions from U.S. Gas Utilities and acquisitions in North Carolina [6] - **Renewable Power Generation**: Earnings increased to C$100 million from C$86 million year-over-year [6] - **Eliminations and Other**: Adjusted EBITDA decreased to C$38 million from C$96 million in the previous year [7] Financial Metrics - Distributable Cash Flow (DCF) was reported at C$2.57 billion, down from C$2.6 billion a year ago [8] - Long-term debt stood at C$100.6 billion, with cash and cash equivalents of C$1.4 billion and a current portion of long-term debt at C$1.8 billion [9] Outlook - For 2025, Enbridge reaffirmed its guidance for Adjusted EBITDA in the range of $19.4-$20.0 billion and DCF per share between $5.50-$5.90 [10] - The company expects a near-term growth outlook (2023-2026) of 7-9% for adjusted EBITDA and nearly 3% for DCF per share [10]

Financial Data and Key Metrics Changes - The company reported a record third quarter adjusted EBITDA, driven by contributions from U.S. gas utilities and organic growth in gas transmission [7][24] - Adjusted EBITDA increased by $66 million compared to Q3 2024, while EPS decreased from $0.55 to $0.46 due to seasonal lower EBITDA in Q3 [24] - The debt to EBITDA ratio for the quarter is 4.8 times, remaining within the target leverage range of 4.5 to 5 times [7][26] Business Line Data and Key Metrics Changes - In the liquids segment, mainline volumes reached a record average of 3.1 million barrels per day, reflecting strong demand for Canadian crude [10][11] - The gas transmission segment experienced strong performance due to favorable contracting and rate case outcomes, contributing to overall growth [25] - The gas distribution segment benefited from a full quarter contribution from Enbridge Gas North Carolina and quick-turn capital projects in Ohio [25] Market Data and Key Metrics Changes - The company added $3 billion in new growth capital to its secured capital program, showcasing continued execution on commitments [8][9] - The North American energy landscape is evolving with increased demand driven by LNG development, power generation, and data centers [31][32] - The company is positioned to add over 60 BCF of new natural gas storage capacity adjacent to major LNG centers in North America [18][19] Company Strategy and Development Direction - The company aims for 5% growth through the end of the decade, supported by $35 billion in secured capital [31][32] - The focus remains on brownfield, highly strategic projects that are economically viable and supported by underlying energy fundamentals [28][31] - The company is actively pursuing opportunities in gas distribution and storage, particularly in response to power demand and data center growth [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year EBITDA in the upper half of the guidance range of $19.4 billion to $20 billion [26] - The company anticipates continued strong performance despite headwinds from higher interest rates and tight differentials [27] - Management highlighted the importance of strategic positioning in the growing North American storage market to support LNG capacity and power demand growth [19][20] Other Important Information - The company has sanctioned expansions of gas storage facilities to support LNG buildout along the U.S. Gulf Coast [9][17] - The company is advancing a joint venture with Oxy to develop the Pelican CO2 hub in Louisiana, which will provide transportation and sequestration for 2.3 million tons of CO2 per year [9][15] Q&A Session Summary Question: Acceleration in gas distribution and storage - Management noted an acceleration in commercial activity across various regions, particularly in Ohio and Utah, driven by data center demand and power generation [34][35] Question: Construction timeline for Line 5 - Management indicated that permitting for the Wisconsin Reboot and Michigan tunnel is regaining momentum, with completion expected in 2027 [42][43] Question: Mainline optimization phase two - Management confirmed that customer demand and a favorable environment are driving the expedited timing for expanded egress to Canadian producers [48][49] 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 [55][56] Question: Customer conversations regarding gas storage in Western Canada - Management highlighted strong customer interest in gas storage expansions, with significant contracts already signed for new capacity [70][72] Question: Managing cost risk in power generation projects - Management emphasized prudent capital management and strong contractor relationships to mitigate cost risks in competitive markets [78][80]