CALGARY, AB, Feb. 14, 2025 /PRNewswire/ – Enbridge Inc. (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) today reported fourth quarter 2024 financial results, reaffirmed its 2025 financial guidance and provided a quarterly business update.
Highlights
(All financial figures are unaudited and in Canadian dollars unless otherwise noted. * identifies non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices.)
CEO COMMENT
Greg Ebel, President and CEO commented the following:
“2024 has been a historic year for Enbridge. We completed the previously announced $19 billion acquisition of three leading U.S. gas utilities (the Acquisitions), raised our dividend for the 30th consecutive year, and posted record EBITDA and DCF per share marking the 19th straight year that we have met or exceeded our financial guidance. Enbridge’s operational and financial performance throughout the year helped deliver a 37% total annual return to investors and 2025 is off to a good start. Our low-risk business model continues to deliver predictable results and stable returns for shareholders and impacts from proposed tariffs on U.S. energy imports are not expected to be material to Enbridge’s financial guidance. I would also like to acknowledge and thank our dedicated and hardworking employees who, once again, delivered for our customers, communities and investors in 2024.
“In Liquids Pipelines, Mainline volumes for 2024 averaged 3.1 million barrels per day, exceeding our guidance assumption, and the system has been in apportionment since November. Western Canadian Sedimentary Basin (WCSB) production growth has expedited customer discussions to expand our Mainline and Express-Platte pipeline systems. In addition, we signed a letter of intent with the Government of Alberta to develop opportunities to accelerate the expansion of our system even further. To the south, our Permian, Mid-Continent and U.S. Gulf Coast systems continue to be highly utilized. In 2024, we moved record volumes through the Enbridge Ingleside Energy Center (EIEC) and the Gray Oak Pipeline. We already have capacity expansions underway on both of these assets, and just recently completed the integration of two additional marine docks purchased at EIEC in 2024. That acquisition is expected to double the number of Very Large Crude Carrier loading windows available at the terminal and strengthen EIEC’s position as a premier energy export facility in the Gulf Coast.
“In Gas Transmission, we sanctioned Tennessee Ridgeline, a US$1.1 billion expansion of the East Tennessee Natural Gas system, which will deliver natural gas for the Tennessee Valley Authority to support a 1.5 GW gas generation plant. In Texas, we also announced two accretive investments in the Permian, establishing meaningful equity stakes in the Whistler Pipeline, the ADCC Pipeline, Waha Gas Storage LLC, and the recently sanctioned Blackcomb Pipeline. Also in the Permian, we acquired 15% of the Delaware Basin Residue pipeline system, which is a key supply conduit for the Whistler Pipeline and extends Enbridge’s natural gas value chain deeper into the basin. In the Gulf, we sanctioned two sets of projects to serve BP Exploration & Production Company’s Kaskida development and Shell and Equinor’s Sparta development. These projects are expected to help extend our growth to the end of the decade and are designed to accommodate connections from new discoveries in the area.
“In Gas Distribution, we completed the $19 billion, once-in-a-generation, acquisition of three leading U.S. gas distribution companies. This transaction positions Enbridge as the owner of North America’s largest natural gas utility franchise and complements our existing low-risk business model, and each of the utilities is well-positioned to serve growing natural gas demand in North America. As part of the Acquisitions, we’ve added two larger secured projects to our backlog, both in North Carolina. The first, Moriah Energy Center, is a 2 Bcf liquefied natural gas facility in Person County that will enhance reliability for our growing customer base. The second, the T15 Reliability Project, will connect Enbridge Gas North Carolina to Duke Energy’s 1.4 GW Roxboro gas-fired generation power plant. Incrementally, we are actively evaluating opportunities across our entire utility portfolio to service growing power demand.
“In Renewable Power, we capitalized on decreasing solar panel costs and strong demand for renewable Power Purchase Agreements (PPAs) and sanctioned ~1,200 net MW across three projects, all backed by long-term PPAs with Amazon, AT&T and Toyota. All of this capacity is expected to be fully in-service in 2026, with over 200 MW already operating. Short construction windows and favorable tax incentives are enabling Enbridge to put highly efficient capital to work to deliver attractive quick-cycle returns. We also continued our track record of regularly recycling capital and announced the sale of our interest in East West Tie Line at a multiple of 17x enterprise value-to-EBITDA (2024).
“Looking ahead, we’ll continue to adhere to our long-held capital allocation priorities. A strong balance sheet, growing shareholder returns, and capital discipline govern each strategic decision. Our scale and diversification, in combination with our incumbent footprint and low-risk business model, continue to provide competitive advantages as demand for all forms of North American energy reaches new heights. We’ll continue to equity-self fund attractive risk-adjusted conventional and renewable projects. These efforts collectively position the Company for long-term success, making Enbridge a first-choice investment.”
FINANCIAL RESULTS SUMMARY
Financial results for the three and twelve months ended December 31, 2024 and 2023 are summarized in the table below:
Three months ended
December 31,
Twelve months ended
December 31,
2024
2023
2024
2023
(unaudited; millions of Canadian dollars, except per share amounts; number of shares in millions)
GAAP Earnings attributable to common shareholders
493
1,726
5,053
5,839
GAAP Earnings per common share
0.23
0.81
2.34
2.84
Cash provided by operating activities
3,662
3,812
12,600
14,201
Adjusted EBITDA1
5,130
4,107
18,620
16,454
Adjusted Earnings1
1,640
1,363
6,037
5,743
Adjusted Earnings per common share1
0.75
0.64
2.80
2.79
Distributable Cash Flow1
3,074
2,732
11,991
11,267
Weighted average common shares outstanding
2,178
2,126
2,155
2,056
1 Non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices.
GAAP earnings attributable to common shareholders for the fourth quarter of 2024 decreased by $1.2 billion, or $0.58 per share, compared with the same period in 2023. This decrease was primarily due to non-cash, unrealized changes in the value of derivative financial instruments used to manage foreign exchange, interest rate and commodity price risks and the absence in 2024 of non-cash gains recognized as a result of the discontinuation of rate-regulated accounting for the Southern Lights Pipeline. These negative impacts were partially offset by lower impairments related to certain capital projects, capital costs and pension balances in the fourth quarter of 2023 as a result of the Ontario Energy Board (OEB) Phase 1 Decision, as well as the quarterly operating performance factors discussed below.
On a full year basis for 2024, GAAP earnings attributable to common shareholders decreased by $786 million due to the same factors discussed above. Those negative impacts were partially offset by a gain on sale related to the disposition of interests in the Alliance Pipeline and Aux Sable and the absence in 2024 of a realized loss due to termination of foreign exchange hedges related to the Competitive Tolling Settlement and the annual operating performance factors discussed below.
The period-over-period comparability of GAAP earnings attributable to common shareholders is impacted by certain unusual, infrequent factors or other non-operating factors which are noted in the reconciliation schedule included in Appendix A of this news release. Refer to the Company’s annual Management’s Discussion & Analysis for 2024 filed in conjunction with the year-end financial statements for a detailed discussion of GAAP financial results.
Adjusted EBITDA in the fourth quarter of 2024 increased by $1.0 billion compared with the same period in 2023. This was due primarily to contributions from the Acquisitions, higher Mainline system tolls from annual escalators, lower Mainline power costs, favorable contracting and lower operating costs on U.S. Gas Transmission assets, higher distribution charges from increases in rates and customer base at Enbridge Gas Ontario, higher renewable contributions from the generation of investment tax credits and the effect of translating U.S. dollar earnings at a higher average exchange rate in 2024, as compared to 2023. These factors were partially offset by lower Mainline throughput and lower uncommitted volumes on Flanagan South Pipeline, and the absence of contributions from Alliance Pipeline and Aux Sable due to the sale of our interests in these investments in April 2024.
Adjusted EBITDA for the year ended December 31, 2024 increased by $2.2 billion compared with the same period in 2023. This was primarily driven by the impact of the operating factors listed above, as well as higher contributions from the Gulf Coast and Mid-Continent System due primarily to higher volumes, the discontinuation of rate-regulated accounting for the Southern Lights Pipeline, the acquisition of an additional 24.25% interest in the Hohe See and Albatros Offshore Wind Facilities in November, 2023 and higher investment income in our Eliminations and Other segment. These factors were partially offset by warmer weather impacting Enbridge Gas Ontario, and lower annualized Mainline tolls as a result of revised tolls effective July 1, 2023 and a lower Line 3 Replacement (L3R) surcharge.
Adjusted earnings in the fourth quarter of 2024 increased by $277 million, or $0.11 per share, compared with the same period in 2023, due to EBITDA factors discussed above, partially offset by higher financing costs and depreciation expense from the Acquisitions and capital investments as well as higher taxes on higher earnings and an increase in U.S. Corporate Alternative Minimum taxes (U.S. minimum tax).
Adjusted earnings for the year ended December 31, 2024 increased by $294 million, or $0.01 per share, compared with the same period in 2023, primarily due to the same factors discussed above for the fourth quarter.
DCF for the fourth quarter of 2024 increased by $342 million compared with the same period in 2023, primarily due to EBITDA factors discussed above, partially offset by higher financing costs and maintenance capital from the Acquisitions and capital investments as well as higher taxes on higher earnings and an increase in U.S. minimum tax.
DCF for the year ended December 31, 2024 increased by $724 million, compared with the same period in 2023, primarily due to the same factors discussed above for the fourth quarter.
Per share metrics in 2024, relative to 2023, are impacted by the prefunding activities for the Acquisitions, including the bought deal equity issuance in the third quarter of 2023 and at-the-market (ATM) issuances in the second quarter of 2024 as part of the financing plan for the Acquisitions.
Detailed financial information and analysis can be found below under Fourth Quarter 2024 Financial Results.
FINANCIAL OUTLOOK
The Company reaffirms its 2025 financial guidance for adjusted EBITDA between $19.4 billion and $20.0 billion and DCF per share between $5.50 and $5.90.
Enbridge expects annualized contributions from the Acquisitions, projects placed into service and acquired during 2024, and the Texas Eastern Transmission, LP (TETLP) rate settlement to drive the majority of growth in 2025.
Enbridge increased its 2025 quarterly dividend by 3.0% to $0.9425 ($3.77 annualized) per share, commencing with the dividend payable on March 1, 2025 to shareholders of record on February 14, 2025.
The Company also reaffirms its 2023 to 2026 near-term growth outlook of 7-9% for adjusted EBITDA growth, 4-6% for adjusted earnings per share (EPS) growth and approximately 3% for DCF per share growth.
FINANCING UPDATE
Enbridge did not undertake any public debt financings in the fourth quarter of 2024. Enbridge plans to continue financing its secured capital growth program within an equity self-funding model
The company’s Debt-to-EBITDA metric at the end of the year was 5.0x. This metric only includes partial year EBITDA from the Acquisitions in 2024 and during the fourth quarter, the impact of the translation of U.S. dollar debt principal was approximately 0.2x. Enbridge expects annualized EBITDA contributions from the Acquisitions to strengthen its debt-to-EBITDA metric towards the midpoint of its 4.5-5.0x target range throughout 2025.
SECURED GROWTH PROJECT EXECUTION UPDATE
Enbridge brought approximately $5 billion of growth projects into service in 2024 across each of its business units, including:
During the year, Enbridge added approximately $8 billion of new organic growth projects to its backlog, including Tennessee Ridgeline, Canyon System Pipelines, Sparta Pipeline, Orange Grove Solar, Sequoia Solar and another year of Utility Growth and Gas Transmission modernization capital. The secured growth backlog now sits at approximately $26 billion and is underpinned by commercial frameworks consistent with Enbridge’s low-risk model.
Financing of the secured growth program is expected to be provided entirely through the Company’s anticipated $8-9 billion of annual growth capital investable capacity.
FOURTH QUARTER BUSINESS UPDATES
Liquids Pipelines: Government of Alberta Letter of Intent
On January 6, 2025, Enbridge signed a Letter of Intent with the Government of Alberta to form a working group, alongside the Alberta Petroleum Marketing Commission to evaluate future egress, transport, storage, terminaling and market access opportunities across Enbridge’s pipeline network to accelerate further egress development. Enbridge plans to engage with customers, governments, communities and Indigenous groups as it develops cost effective plans to add incremental egress to its network.
Gas Transmission: Algonquin
In December 2024, Algonquin reached a settlement in principle with customers which will be filed for Federal Energy Regulatory Commission (FERC) approval in the first quarter of 2025. Rates are expected to be effective December 1, 2024.
Gas Transmission: Maritimes & Northeast Pipeline
In December 2024, M&N U.S. reached a settlement in principle with customers which will be filed for FERC approval in the first quarter 2025. Rates are expected to be effective January 1, 2025.
Gas Distribution: Enbridge Gas Ontario Rebasing Phase 2 Update
On November 29, 2024, the OEB issued its Decision approving the Phase 2 Partial Settlement Proposal and accompanying Rate Order that allows for the recovery of 2024 impacts resulting from the Phase 2 settlement through a rate rider that will be effective throughout 2025, and for the establishment of interim 2025 rates effective January 1, 2025.
The Phase 2 Partial Settlement Proposal establishes a harmonized storage cost allocation methodology, the level of Dawn to Corunna Project costs to be included in regulated rates, and cost recovery for utility services provided for unregulated Enbridge Sustain activities. In addition, the Phase 2 Partial Settlement Proposal establishes a price cap incentive regulation rate setting mechanism to be used for establishing rates for 2025 to 2028. Interim 2025 rates approved as part of the Rate Order reflect application of this mechanism.
Issues not addressed as part of the Phase 2 Settlement Proposal include an intervenor proposal to decouple revenues from customer numbers, the appropriate meter reading performance metric, and the terms for including renewable natural gas as part of gas supply. 2024 and 2025 rates have been classified as interim pending the OEB decision on outstanding Phase 2 issues and the resolution of the Notice of Appeal and Amended Notice of Motion on Phase 1. Enbridge expects a decision on the Phase 2 unresolved issues in the first half of 2025.
Renewable Power: East-West Tie Line
Enbridge announced a definitive agreement to sell its 24% interest in the East-West Tie Limited Partnership to Hydro One Limited for cash proceeds of $0.1 billion. East-West Tie Limited Partnership owns the East-West Tie Line, a 450-kilometre, 230 kV double-circuit transmission line, regulated by the OEB, spanning from Wawa to Thunder Bay, Ontario, along the north shore of Lake Superior. The sale is expected to close in the first half of 2025.
FOURTH QUARTER AND ANNUAL 2024 FINANCIAL RESULTS
GAAP Segment EBITDA and Cash Flow from Operations
Three months ended
December 31,
Twelve months ended
December 31,
2024
2023
2024
2023
(unaudited; millions of Canadian dollars)
Liquids Pipelines
2,352
2,439
9,531
9,383
Gas Transmission
1,150
1,044
5,656
4,264
Gas Distribution and Storage
1,015
238
2,869
1,592
Renewable Power Generation
236
(146)
733
149
Eliminations and Other
(1,402)
926
(1,904)
916
EBITDA1
3,351
4,501
16,885
16,304
Earnings attributable to common shareholders
493
1,726
5,053
5,839
Cash provided by operating activities
3,662
3,812
12,600
14,201
1 Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices.
For purposes of evaluating performance, the Company makes adjustments to GAAP reported earnings, segment EBITDA and cash flow provided by operating activities for unusual, infrequent or other non-operating factors, which allow management and investors to more accurately compare the Company’s performance across periods, normalizing for factors that are not indicative of underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
Adjusted EBITDA By Segment
Adjusted EBITDA generated from U.S. dollar denominated businesses was translated to Canadian dollars at a higher average exchange rates (C$1.40/US$) in the fourth quarter of 2024 when compared with the same quarter in 2023 (C$1.36/US$). On a full year basis, adjusted EBITDA generated from U.S. dollar denominated businesses was translated at C$1.37/US$, compared with $C1.35/US$ in 2023. A significant portion of U.S. dollar earnings are hedged under the Company’s enterprise-wide financial risk management program. The hedge settlements are reported within Eliminations and Other.
Liquids Pipelines
Three months ended
December 31,
Twelve months ended
December 31,
2024
2023
2024
2023
(unaudited; millions of Canadian dollars)
Mainline System
1,339
1,300
5,342
5,396
Regional Oil Sands System
232
228
925
954
Gulf Coast and Mid-Continent Systems1
369
442
1,596
1,582
Other Systems2
455
395
1,791
1,503
Adjusted EBITDA3
2,395
2,365
9,654
9,435
Operating Data (average deliveries – thousands of bpd)
Mainline System volume4
3,079
3,212
3,061
3,080
Canadian International Joint Tariff5 ($C)
$1.75
$1.65
$1.70
$1.65
U.S. International Joint Tariff5 ($US)
$2.59
$2.57
$2.58
$2.57
Line 3 Replacement Surcharge6 ($US)
$0.76
$0.77
$0.76
$0.77
1
Consists of Flanagan South Pipeline, Seaway Pipeline, Gray Oak Pipeline, Cactus II Pipeline, EIEC, and others.
2
Other consists of Southern Lights Pipeline, Express-Platte System, Bakken System, and others.
3
Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices.
4
Mainline System throughput volume represents Mainline System deliveries ex-Gretna, Manitoba which is made up of U.S. and eastern Canada deliveries originating from Western Canada.
5
Tariff tolls, per barrel, for heavy crude oil movements from Hardisty, AB to Chicago, IL. Effective July 1, 2023 the Company began collecting a dual currency, international joint tariff set within the negotiated settlement for tolls on the Mainline System. Excludes abandonment surcharge.
6
Effective July 1, 2022, the Line 3 Replacement Surcharge (L3R), exclusive of the receipt terminalling surcharge, is determined on a monthly basis by a volume ratchet based on the 9-month rolling average of ex-Gretna volumes. Each 50 kbpd volume ratchet above 2,835 kbpd (up to 3,085 kbpd) applies a US$0.035/bbl discount whereas each 50 kbpd volume ratchet below 2,350 kbpd (down to 2,050 kbpd) adds a US$0.04/bbl charge. Refer to Enbridge’s Application for a Toll Order respecting the implementation of the L3R Surcharges and CER Order TO-003-2021 for further details.
Liquids Pipelines adjusted EBITDA increased $30 million compared with the fourth quarter of 2023, primarily related to:
Full year 2024 Liquids Pipelines adjusted EBITDA increased by $219 million compared with 2023 and was primarily impacted by the same factors discussed above as well as:
Gas Transmission
Three months ended
December 31,
Twelve months ended
December 31,
2024
2023
2024
2023
(unaudited; millions of Canadian dollars)
U.S. Gas Transmission
1,009
833
3,795
3,433
Canadian Gas Transmission
157
182
552
640
Other1
106
69
435
325
Adjusted EBITDA2
1,272
1,084
4,782
4,398
1
Other consists of Tomorrow RNG, Gulf Offshore assets, our investment in DCP Midstream, and others.
2
Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices.
Gas Transmission adjusted EBITDA increased $188 million compared with the fourth quarter of 2023, primarily related to:
Full year 2024 Gas Transmission adjusted EBITDA increased $384 million compared with 2023 and was primarily impacted by the same factors discussed above as well as:
Gas Distribution and Storage
Three months ended
December 31,
Twelve months ended
December 31,
2024
2023
2024
2023
(unaudited; millions of Canadian dollars)
Enbridge Gas Ontario1
502
503
1,872
1,825
U.S. Gas Utilities1
502
—
947
—
Other
11
16
50
48
Adjusted EBITDA2
1,015
519
