Enbridge(US:ENB)2024-11-01 17:10Financial Data and Key Metrics Changes - The company reported record third-quarter EBITDA and DCF per share of $1.19, which includes the impact of pre-funding the U.S. Gas Utilities [26] - Liquid EBITDA increased year-over-year, primarily due to annual OpEx inflation and power cost escalators [26] - The company expects to achieve guidance range for the 19th consecutive year, with a secured backlog of $27 billion and approximately $5 billion expected to be placed into service by the end of 2024 [30][31] Business Line Data and Key Metrics Changes - The Gas Distribution business now includes a full quarter of EBITDA from Enbridge Gas Ohio and Enbridge Gas Utah, driving significant growth [27] - The Liquids segment is on track to exceed the full-year forecast of 3 million barrels per day, with strong customer demand evident [15] - The Gas Transmission business saw growth driven by the acquisition of Tomorrow RNG and the 19% interest in the Whistler JV, alongside strong performance from gas storage assets [26] Market Data and Key Metrics Changes - The company is well-positioned to benefit from rising power demand, with S&P forecasting up to 20 Bcf per day of incremental gas demand growth by 2030 [11] - Enbridge's gas footprint is within 50 miles of approximately 45% of all gas power generation in North America [11] - The company is strategically connected to over 30% of existing and announced LNG export capacity, supporting global demand growth [14] Company Strategy and Development Direction - Enbridge aims to grow the business by 5% annually while maintaining financial discipline to support sustainable capital returns to shareholders [10] - The company is focused on low-risk, long-life investments and plans to allocate $6 billion to $7 billion for low capital intensity expansion and modernization [31] - Enbridge is committed to integrating its recent acquisitions and leveraging its position as the largest natural gas utility in North America to drive growth [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a volatile world, highlighting strong energy infrastructure fundamentals and rising power demand [11] - The company anticipates continued strong operational performance, with expectations to finish the year around the midpoint of guidance for DCF per share [29] - Management emphasized the importance of data center growth and industrial demand as key drivers for future growth [40][41] Other Important Information - Enbridge has successfully concluded the acquisition of three U.S. Gas utilities, returning to an equity self-funded model [7] - The company has added $7 billion to its secured growth program so far this year, with significant investments in renewable projects [9] - Enbridge's strategic approach has resulted in partnerships with blue-chip companies for renewable projects, enhancing growth potential [24] Q&A Session Summary Question: Future expansion potential for the mainline - Management indicated that production is ramping nicely and discussions for additional pipeline capacity are ongoing, with in-service dates expected in late 2026 to 2027 [36][37] Question: Future growth in the LDC side - Management stated that the focus is on integrating recent acquisitions and leveraging organic growth opportunities, particularly in data centers and modernization programs [38][39] Question: Capital deployment into onshore renewables - Management highlighted strong returns from solar projects, with mid-teens type returns expected due to favorable market conditions and established customer relationships [45] Question: Update on the Rio Bravo Pipeline Project - Management expressed disappointment over the DC Circuit's vacatur but noted that it is not having a material impact on guidance, with ongoing support for the project [72][73]