Enbridge NYSE: ENB reaffirmed its 2026 financial guidance and expects to finish at the midpoint of its range after reporting higher third-quarter adjusted earnings, executives said on the company’s earnings call.
Adjusted earnings before interest, taxes, depreciation and amortization rose CAD 167 million from a year earlier, Chief Financial Officer Pat Murray said. Higher contributions from gas transmission, gas distribution and renewable power more than offset lower results in liquids pipelines.
The call was the last for President and CEO Greg Ebel, who plans to retire at year-end. Michele Harradence, currently executive vice president and president of gas distribution and storage, is scheduled to become CEO on Jan. 1.
Gas businesses support earnings growth
Murray said gas transmission results benefited from favorable contracting and rate case settlements in the company’s U.S. assets. Gas distribution benefited from higher rates in Utah and North Carolina and customer growth in Ontario. Renewable power results increased slightly following the first phase of Sequoia Solar entering service at the end of 2025.
Liquids pipelines results declined because of lower tolls on Line 9 deliveries and reduced throughput on Flanagan South, which Murray attributed to high refining utilization in the U.S. Midwest and market pricing dynamics.
Distributable cash flow increased year over year, primarily because of higher adjusted EBITDA and lower maintenance capital spending, partially offset by higher financing costs from additional debt, Murray said. He cited strong execution in gas transmission and tailwinds at Seaway as support for the outlook, while noting lower liquid market access contributions and higher U.S. interest rates.
Acquisitions and projects expand footprint
During the quarter, Enbridge announced the acquisition of Tallgrass’s crude transportation business, including the Pony Express Pipeline and Powder River Gateway system, and acquired Salt Creek Midstream’s crude gathering assets in the Delaware Basin. The company also completed a CAD 3 billion common equity offering to help finance its recent acquisitions.
Colin Gruending, executive vice president and president of liquids pipelines, said Enbridge expects the Tallgrass assets to remain in light-oil service for the foreseeable future. He also said the company would be selective in pursuing further opportunities in the Permian Basin.
Enbridge announced an agreement to acquire Laramie Energy gas assets to support Enbridge Gas Utah. Ebel said the deal, expected to close following regulatory approval later in November, would provide a cost-of-service gas supply and a utility return without commodity exposure.
The company sanctioned the CAD 200 million Long Lake Expansion to support CNOOC’s oil sands operations, with service expected in 2028. It also completed a CAD 2.7 billion Westcoast partnership with KKR and Apollo, which executives said provides flexibility to fund organic growth.
Enbridge’s secured capital backlog stands at approximately CAD 38 billion, Ebel said. Murray said debt to EBITDA was 5.1 times at quarter-end, driven by foreign-exchange movements. On an exchange-rate-adjusted basis, leverage would have remained within the company’s target range, he said.
Pipeline expansions and LNG demand in focus
Enbridge placed the Aspen Point gas transmission project in British Columbia into service ahead of schedule and under budget. Tennessee Ridgeline entered service on Nov. 1, on time despite construction challenges, Ebel said.
Matthew Akman, executive vice president and president of gas transmission, said negotiations on a new Westcoast toll settlement were progressing. The existing settlement expires at year-end, and Enbridge is seeking higher achieved returns while maintaining competitive tolls for customers.
Akman also said commercial discussions for Project Beacon, a proposed expansion of the Algonquin gas system, were progressing after a successful open season. The company is aiming for commercialization very early in the new year, though discussions with customers continue.
In liquids, Enbridge closed an open season for additional Flanagan South capacity, while an open season for Southern Access Extension remains open until later this year. Gruending said the projects could move toward capital investment decisions by the next quarterly call. The company separated those downstream expansions from a proposed Mainline expansion after policy uncertainty in Canada made it difficult to align customers on the Mainline investment.
Incoming CEO signals continuity
Asked about her priorities, Harradence said she intends to build on Enbridge’s existing approach to operations and capital allocation, emphasizing safety, reliability, cost discipline and capital efficiency. She also pointed to the company’s 31 consecutive years of dividend increases.
“We’re talking about taking a great company and making it even better here,” Harradence said.
Ebel said growing demand for energy from power generation, industrial activity and exports presents opportunities across the company’s businesses. He also said his earlier forecast for Western Canadian supply growth of 1 million barrels by 2035 was probably too low, though he did not provide a revised estimate.
About Enbridge (NYSE:ENB)
Enbridge Inc is a North American energy infrastructure company that transports and distributes energy. Its businesses include crude oil and liquids pipelines, natural gas transmission and storage, and natural gas utilities that serve homes and businesses.
Founded in 1949 as Interprovincial Pipe Line Company, Enbridge has grown into a cross-border operator serving customers and energy markets in Canada and the United States. Its infrastructure moves crude oil, natural gas and natural gas liquids, connecting producers with refineries, utilities and other markets.
Enbridge also invests in renewable power, including wind and solar projects, alongside its energy transportation and distribution operations.
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