Enbridge Inc.

What they do

Enbridge operates through segments including Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, and Renewable Power. It transports crude oil and natural gas, distributes gas to customers, and provides storage and other services, primarily in Canada and the U.S.

Revenue drivers

• Liquids Pipelines — Mainline and regional systems transport crude oil and diluent, including the Mainline Optimization and Regional Oil Sands system serving ~50% of Alberta oil sands production.
• Gas Transmission and Midstream — Interstate natural gas pipelines and storage, like Algonquin Gas Transmission and Tres Palacios, generate fee-based revenue from long-term contracts.
• Gas Distribution and Storage — Gas distribution sales contributed C$1.84B in Q2 2026 and C$5.98B in H1 2026, serving residential and commercial customers.
• Commodity Sales — Commodity sales are the largest revenue stream (C$22.6B in Q2 2026), but largely pass-through with matching commodity costs.

Recent performance

For Q2 2026, Enbridge reported GAAP earnings attributable to common shareholders of $1.4B ($0.64/share), down from $2.2B ($1.00/share) in Q2 2025. Adjusted EBITDA rose to $4.8B from $4.6B, and cash from operations improved to $4.1B from $3.2B. For H1 2026, revenue totaled $51.7B (up from $33.4B) but net earnings fell to $3.3B from $4.8B due largely to commodity cost pass-through and other items.

Strategy

Management is focused on organic growth, having sanctioned $9B of new projects year-to-date in 2026 and growing the secured backlog to $41B. They are expanding natural gas capacity, including the Bay Runner Twin and Project Beacon, and are advancing WCSB egress via Mainline Optimizations. They are also pursuing acquisitions, like the exclusive option for TTC Connector, and recently started construction on the Line 5 Relocation project.

Risks

• Commodity price sensitivity — Commodity sales revenue is large but volatile, and cost pass-through can lead to earnings swings as seen in Q2 2026.
• Regulatory and political risk — As a pipeline operator, Enbridge faces regulatory requirements from Canadian and U.S. authorities, including NYSE governance differences and potential changes in energy policy.
• High leverage — Long-term debt stood at $104.41B as of year-end 2025, and rising interest expense (C$2.6B in H1 2026) could pressure earnings.
• Project execution and cost overruns — Large capital projects like Line 5 Relocation and Bay Runner Twin carry construction, permitting, and timing risks that could affect returns.

Outlook

Enbridge reaffirmed its 2026 full-year guidance and medium-term outlook, targeting $10-20B in new project announcements over 2026-2027. The company expects continued strong demand for gas transmission and WCSB egress, with Phase 2 Mainline Optimizations evolving into broader expansion opportunities. Management expects the TTC Connector to enter service by end of 2026 and remains on track with the $41B backlog.