Enbridge Reports Strong Second Quarter Results, Reaffirms 2026 Guidance and Grows Secured Backlog to $41B

Enbridge Inc. (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) today reported second quarter 2026 financial results, reaffirmed its 2026 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.) Second quarter GAAP earnings attributable to common shareholders of $1.4 billion or $0.64 per common share, compared with GAAP earnings attributable to common shareholders of $2.2 billion or $1.00 per common share in 2025 Adjusted earnings* of $1.4 billion or $0.63 per common share*, compared with $1.4 billion or $0.65 per common share in 2025 Adjusted earnings before interest, income taxes and depreciation and amortization (EBITDA)* of $4.8 billion, compared to $4.6 billion in 2025 Cash provided by operating activities of $4.1 billion, compared with $3.2 billion in 2025 Distributable cash flow (DCF)* of $2.9 billion, in-line with results in 2025 Reaffirmed 2026 full year financial guidance and medium-term financial outlook Sanctioned and began construction of the US$1.0 billion Line 5 Relocation project in Wisconsin, supporting the continued safe and reliable delivery of energy to the Midwest, Ontario and Quebec Signed exclusive option to acquire TTC Connector Pipeline (TTC Connector), expanding existing U.S. Gulf Coast footprint and increasing connectivity between Tres Palacios and Freeport LNG Sanctioned the 2.6 Bcf/d Bay Runner Twin Pipeline (Bay Runner Twin), providing Permian natural gas supply to the Rio Grande LNG facility under long-term take-or-pay agreements Completed Project Beacon open season for increased capacity on Algonquin Gas Transmission with demand exceeding initial expectations; working to commercialize potential expansion CEO COMMENT Greg Ebel, President and CEO commented the following: "Shaped by ongoing geopolitical developments around the world, energy markets have remained volatile in recent months. While supply disruptions persist and uncertainty continues, one thing is clear; energy security, reliability, and affordability are more important than ever. Against this backdrop, Enbridge's scale, connectivity, and portfolio of strategic infrastructure assets position us to help strengthen North America's energy future while delivering value for customers and shareholders. We are advancing projects all across our businesses and in the second quarter added $1 billion to our now $41 billion growth project backlog. Year-to-date, we have sanctioned $9 billion of new projects and are well on track to meet our targeted $10-20 billion of new project announcements over the 2026 to 2027 timeframe. "We continue to see a wide array of high-quality opportunities in our Gas Transmission business, driven by customer demand across the continent. In the U.S. Northeast, we completed an open season for Project Beacon, a proposed expansion of our Algonquin Gas Transmission system, which received significantly more interest than our initial expectations. We also signed an exclusive option to acquire the TTC Connector Pipeline. This pipeline will connect Enbridge's Tres Palacios Gas Storage facility to Freeport LNG and is expected to enter service by the end of the year. Lastly in our Permian JV, the Blackcomb Pipeline has begun commissioning and we've sanctioned the Bay Runner Twin to service additional trains at Rio Grande LNG. "The accelerating momentum we're seeing in Canada to support growth in the Western Canadian Sedimentary Basin presents a differentiated opportunity for Enbridge. As production continues to increase, Enbridge is ideally positioned to help enable that growth through new WCSB egress, including various Mainline Optimizations, as well as opportunities on our other industry-leading Liquids assets. Our Regional Oil Sands system serves around 50% of all Alberta oil sands production, while our Southern Lights and Norlite systems provide critical diluent supply and are expandable alongside future production growth. These assets will become increasingly important to our growth profile as Canadian oil production rises in response to favourable market fundamentals and the implementation of more supportive policies by Canadian governments. As a result, Mainline Optimization Phase 2 has evolved into a broader suite of expansion opportunities, and as greater clarity emerges around policies supporting production growth later this year, Enbridge is well positioned to provide the egress solutions our customers require. This quarter we sanctioned and began construction on the Line 5 Relocation project in Wisconsin, which we expect to enter service in early 2027. The relocation reinforces the long-term reliability of Line 5, which remains essential to delivering secure, affordable energy to the Great Lakes region. "Our Gas Distribution and Storage business continues to provide year-round reliable and affordable service to over 7 million customers. This quarter the Public Utilities Commission of Ohio Staff filed its report on our Enbridge Gas Ohio rate case. The report was constructive and we look forward to working with the Commission towards a settlement in 2027. "Lastly, our Renewable Power segment continues to advance over 1.5 GW of safe harboured opportunities. This builds on the momentum we've seen over the past 12 months, which saw us sanction over 1.4 GW of solar and onshore wind generation capacity and 1.6 GWh of battery storage capacity, all underpinned by long-term power purchase agreements with Meta. We expect to sanction additional safe harboured projects during the remainder of the year. "As our secured capital backlog continues to grow, our teams also remain focused on execution. This quarter we began construction on our largest project, the $4 billion Sunrise Expansion of our B.C. Pipeline system. This is in addition to a number of projects that are progressing well, including Tennessee Ridgeline, Aspen Point and the second phase of Sequoia Solar, all which are expected to enter service later this year. "Looking ahead, we remain committed to being the first choice for our customers, policymakers, and regulators to advance essential infrastructure across North America under our all-of-the-above approach to energy investment. With an unmatched incumbent footprint, a $41 billion secured capital backlog, and $10 to $11 billion of annual growth investment capacity, Enbridge is well positioned to capitalize on the best macro environment for growth in the last 10 years. We will continue to add visibility to, and extend, our 5% growth outlook further into the future. Enbridge remains on track to deliver on our financial guidance this year, reinforcing the strength of our first-choice investment proposition." FINANCIAL RESULTS SUMMARY Financial results for the three months and six months ended June 30, 2026 and 2025 are summarized in the table below: Three months endedJune 30, Six months endedJune 30, 2026 2025 2026 2025 (unaudited; millions of Canadian dollars, except per share amounts; number of shares in millions) GAAP Earnings attributable to common shareholders 1,396 2,177 3,067 4,438 GAAP Earnings per common share 0.64 1.00 1.41 2.04 Cash provided by operating activities 4,111 3,238 6,453 6,291 Adjusted EBITDA1 4,776 4,644 10,586 10,472 Adjusted Earnings1 1,382 1,418 3,512 3,660 Adjusted Earnings per common share1 0.63 0.65 1.61 1.68 Distributable Cash Flow1 2,948 2,903 6,799 6,680 Weighted average common shares outstanding 2,184 2,180 2,183 2,180 1 Non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices. GAAP earnings attributable to common shareholders for the second quarter of 2026 decreased by $0.8 billion, or $0.36 per share, compared with the same period in 2025. 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. In addition, a non-cash pre-issuance hedge loss was recorded on an exchange of medium-term notes and a non-cash adjustment to crude oil inventory was recorded in our Liquids Pipelines segment. This was partially offset by the absence of an impairment of rate-regulated assets in Enbridge Gas Ohio and the operating performance items discussed below. The period-over-period comparability of GAAP earnings attributable to common shareholders is impacted by certain unusual, infrequent 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 Management's Discussion & Analysis for Q2 2026 filed in conjunction with the quarter-end financial statements for a detailed discussion of GAAP financial results. Adjusted EBITDA in the second quarter of 2026 increased by $132 million compared with the same period in 2025. This was primarily as a result of the increased revenues attributable to the East Tennessee, Texas Eastern, and the Enbridge Gas Utah rate cases. Adjusted earnings in the second quarter of 2026 decreased by $36 million, or $0.02 per share, compared with the same period in 2025, due to higher depreciation from assets placed into service and higher interest expense on incremental debt balances, partially offset by the operating performance discussed above. DCF for the second quarter of 2026 increased $45 million compared with the same period in 2025, due primarily to EBITDA factors discussed above and the timing of maintenance capital expenditures, partially offset by higher incremental debt balances driving higher interest expense. Detailed financial information and analysis can be found below under Second Quarter 2026 Financial Results. FINANCIAL OUTLOOK The Company reaffirms its 2026 financial guidance for adjusted EBITDA between $20.2 billion and $20.8 billion and DCF per share between $5.70 and $6.10. The Company also reaffirms its post-2026 adjusted EBITDA, DCF per share, and EPS near-term average compound annual growth rate of approximately 5%. FINANCING UPDATE The Company's rolling 12-month Debt-to-EBITDA metric at the end of the second quarter of 2026 was 5.1x, elevated in part due to the period end debt balance translating at a 1.42 CAD/USD foreign exchange rate compared to EBITDA translating at an average trailing 12-month rate of 1.38. SECURED GROWTH PROJECT EXECUTION UPDATE Enbridge added over $1 billion to its secured growth backlog through the sanctioning of the Line 5 Relocation project. In addition, the Enbridge Houston Oil Terminal entered service during the quarter. The secured growth backlog now sits at approximately $41 billion. Financing of the secured growth program is expected to be provided through the Company's anticipated $10 to $11 billion of annual growth capital investment capacity. SECOND QUARTER BUSINESS UPDATES Liquids Pipelines: Line 5 Relocation Project Enbridge has sanctioned and begun construction of the Line 5 Relocation project in Wisconsin, which involves a 41-mile re-route of the existing pipeline system. Upon entering service, Recoverable Line 5 Capital will be added to Mainline rate base. All key state and federal permits have been secured, including right-of-way agreements and the U.S. Army Corps of Engineers' Clean Water Act permit. Enbridge expects the project to cost US$1.0 billion and enter service in early 2027. Gas Transmission: TTC Connector Enbridge has signed an exclusive option agreement to purchase the TTC Connector, an under-construction natural gas development connecting Tres Palacios Gas Storage to the Coastal Bend Header pipeline for delivery to Freeport LNG. TTC Connector is a 25-mile, 300 MMcf/d greenfield pipeline with direct connection to Tres Palacios Gas Storage. The development is supported by long-term service agreements with bp for all available capacity. Upon the pipeline entering service, Enbridge has the option to acquire TTC Connector at an accretive valuation. Gas Transmission: Bay Runner Twin Within the Whistler Joint Venture, Enbridge and partners have sanctioned the Bay Runner Twin, a twinning of the under-construction Bay Runner extension project delivering Permian natural gas supply to NextDecade's Rio Grande LNG facility in Texas. The project will run along Bay Runner's existing right-of-way, offering up to 2.6 Bcf/d of incremental capacity between Agua Dulce and Rio Grande. The Bay Runner Twin is underpinned by long-term take-or-pay agreements for all incremental service capacity, and is expected to enter service by 2030. SECOND QUARTER 2026 FINANCIAL RESULTS GAAP Segment EBITDA and Cash Flow from Operations Three months endedJune 30, Six months endedJune 30, 2026 2025 2026 2025 (unaudited; millions of Canadian dollars) Liquids Pipelines 2,623 2,331 4,580 4,924 Gas Transmission 1,433 1,442 3,003 2,915 Gas Distribution and Storage 878 510 2,587 2,110 Renewable Power Generation 118 109 306 332 Eliminations and Other (216) 1,167 (620) 1,207 EBITDA1 4,836 5,559 9,856 11,488 Earnings attributable to common shareholders 1,396 2,177 3,067 4,438 Cash provided by operating activities 4,111 3,238 6,453 6,291 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 Three months endedJune 30, Six months endedJune 30, 2026 2025 2026 2025 (unaudited; millions of Canadian dollars) Liquids Pipelines 2,341 2,336 4,644 4,957 Gas Transmission 1,421 1,384 2,939 2,823 Gas Distribution and Storage 878 840 2,587 2,440 Renewable Power Generation 131 120 333 361 Eliminations and Other 5 (36) 83 (109) Adjusted EBITDA1 4,776 4,644 10,586 10,472 Adjusted Earnings1 1,382 1,418 3,512 3,660 1 Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. Adjusted EBITDA generated from U.S. dollar denominated businesses was translated to Canadian dollars at a similar average exchange rate (C$1.38/US$) in the second quarter of 2026 when compared with the same quarter in 2025 (C$1.38/US$). A significant portion of U.S. dollar earnings are hedged under the Company's enterprise-wide financial risk management program. Liquids Pipelines Three months endedJune 30, Six months endedJune 30, 2026 2025 20261 20251 (unaudited; millions of Canadian dollars) Mainline & Market Access Systems2 1,567 1,491 3,016 3,160 Regional Oil Sands & Express-Platte Systems 351 376 741 725 Gulf Coast & Other Systems3 423 469 887 1,072 Adjusted EBITDA4 2,341 2,336 4,644 4,957 1 Effective January 1, 2026, to better align with our operational structure, Enbridge reorganized the reporting sub-segments of Liquids Pipelines. Prior year comparatives have also been restated to reflect the reporting change. 2 Consists of Mainline System, Flanagan South Pipeline, Spearhead Pipeline, and Seaway Pipeline. 3 Consists of Gray Oak Pipeline, Cactus II Pipeline, Enbridge Ingleside Energy Center, Southern Lights, Bakken System, and others. 4 Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. Liquids Pipelines adjusted EBITDA increased $5 million compared with the second quarter of 2025, primarily related to: higher Mainline volumes, net of earnings sharing, higher Line 9 volumes, and benefits from system optimization initiatives; and higher equity earnings from Seaway Pipeline due to higher spot volumes; partially offset by lower Mainline tolls on Line 9 deliveries; and lower revenue from Southern Lights following expiry of cost of service agreements on June 30, 2025. Gas Transmission Three months endedJune 30, Six months endedJune 30, 2026 2025 2026 2025 (unaudited; millions of Canadian dollars) U.S. Gas Transmission 1,175 1,098 2,351 2,269 Canadian Gas Transmission 143 150 365 317 Other1 103 136 223 237 Adjusted EBITDA2 1,421 1,384 2,939 2,823 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 $37 million compared with the second quarter of 2025, primarily related to: increased revenues attributable to East Tennessee rate case settlement and Texas Eastern previously approved rate increase; partially offset by lower equity earnings from our investment in DCP Midstream. Gas Distribution and Storage Three months endedJune 30, Six months endedJune 30, 2026 2025 2026 2025 (unaudited; millions of Canadian dollars) Enbridge Gas Ontario1 481 499 1,432 1,368 U.S. Gas Utilities1 380 335 1,113 1,050 Other 17 6 42 22 Adjusted EBITDA2 878 840 2,587 2,440 1 Enbridge Gas Inc. doing business as Enbridge Gas Ontario. U.S. Gas Utilities consist of The East Ohio Gas Company (doing business as Enbridge Gas Ohio), Questar Gas Company (doing business as Enbridge Gas Utah) and Public Service Company of North Carolina Incorporated (doing business as Enbridge Gas North Carolina). 2 Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. Adjusted EBITDA for Enbridge Gas Ontario, Enbridge Gas Utah and Enbridge Gas North Carolina typically follows a seasonal profile. EBITDA is generally highest in the first and fourth quarters of the year. Seasonal profiles for Enbridge Gas Ontario, Enbridge Gas Utah and Enbridge Gas North Carolina reflect greater volumetric demand during the heating season and the magnitude of the seasonal adjusted EBITDA fluctuations will vary from year-to-year in Ontario reflecting the impact of colder or warmer than normal weather on distribution volumes. Enbridge Gas Ohio's earnings are largely decoupled from volumes and less impacted by weather fluctuations. Enbridge Gas Utah and Enbridge Gas North Carolina have revenue decoupling mechanisms that are not impacted by weather or gas volume variability, but revenues are shaped to align with the seasonal usage profile. Gas Distribution and Storage adjusted EBITDA increased $38 million compared with the second quarter of 2025 primarily related to: higher base rates for Enbridge Gas Utah and Enbridge Gas North Carolina due to recent rate cases. When compared with the normal weather forecast embedded in rates, the positive impact of weather to adjusted EBITDA for Enbridge Gas Ontario was approximately $9 million in the second quarter of 2026, net of sharing, in line with the a positive impact of approximately $10 million in the same period of 2025. Renewable Power Generation Three months endedJune 30, Six months endedJune 30, 2026 2025 2026 2025 (unaudited; millions of Canadian dollars) Adjusted EBITDA1 131 120 333 361 1 Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. Renewable Power Generation adjusted EBITDA increased $11 million compared with the second quarter of 2025 primarily related to: contributions from assets placed into service since the second quarter of 2025. Eliminations and Other Three months endedJune 30, Six months endedJune 30, 2026 2025 2026 2025 (unaudited; millions of Canadian dollars) Operating and administrative recoveries 79 94 162 225 Realized foreign exchange hedge settlement (loss)/gain (74) (130) (79) (334) Adjusted EBITDA1 5 (36) 83 (109) 1 Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. Operating and administrative recoveries captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) inclusive of amounts recovered from business units for the provision of those services. U.S. dollar denominated earnings within operating segment results are translated at average foreign exchange rates during the quarter, and the impact of settlements made under the Company's enterprise foreign exchange hedging program are captured in this corporate segment. Eliminations and Other adjusted EBITDA increased $41 million compared with the second quarter of 2025 primarily due to: Lower realized foreign exchange losses on hedge settlements in 2026. Distributable Cash Flow Three months endedJune 30, Six months endedJune 30, 2026 2025 2026 2025 (unaudited; millions of Canadian dollars; number of shares in millions) Liquids Pipelines 2,341 2,336 4,644 4,957 Gas Transmission 1,421 1,384 2,939 2,823 Gas Distribution and Storage 878 840 2,587 2,440 Renewable Power Generation 131 120 333 361 Eliminations and Other 5 (36) 83 (109) Adjusted EBITDA1,3 4,776 4,644 10,586 10,472 Maintenance capital (227) (316) (445) (545) Interest expense1 (1,283) (1,202) (2,530) (2,449) Current income tax1 (232) (227) (581) (617) Distributions to noncontrolling interests and redeemable noncontrolling interest1 (116) (95) (215) (195) Cash distributions in excess of equity earnings1 135 190 247 197 Preference share dividends (105) (104) (212) (206) Other receipts of cash not recognized in revenue2 17 43 (41) 53 Other non-cash adjustments1 (17) (30) (10) (30) DCF3 2,948 2,903 6,799 6,680 Weighted average common shares outstanding 2,184 2,180 2,183 2,180 1 Presented net of adjusting items. 2 Consists of cash received, net of revenue recognized, for contracts under make-up rights and similar deferred revenue arrangements. 3 Non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices. Second quarter 2026 DCF increased $45 million compared with the same period of 2025 due to factors discussed above contributing to higher adjusted EBITDA, and: lower maintenance capital due to timing; partially offset by higher interest expense due to incremental debt issuances. Adjusted Earnings Three months endedJune 30, Six months endedJune 30, 2026 2025 2026 2025 (unaudited; millions of Canadian dollars; except per share amounts) Adjusted EBITDA1,2 4,776 4,644 10,586 10,472 Depreciation and amortization (1,482) (1,441) (2,967) (2,900) Interest expense2 (1,288) (1,213) (2,541) (2,474) Income taxes2 (450) (429) (1,201) (1,138) Noncontrolling interests and redeemable noncontrolling interest2 (69) (41) (153) (95) Preference share dividends (105) (102) (212) (205) Adjusted earnings1 1,382 1,418 3,512 3,660 Adjusted earnings per common share1 0.63 0.65 1.61 1.68 1 Non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices. 2 Presented net of adjusting items. Adjusted earnings decreased $36 million and adjusted earnings per share decreased by $0.02 when compared with the second quarter of 2025, due to: higher interest expense due to incremental debt issuances; and higher depreciation from assets placed into service since the second quarter of 2025; partially offset by higher adjusted EBITDA due to the operating factors discussed above. CONFERENCE CALL Enbridge will host a conference call and webcast on July 31, 2026 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to provide a business update and review 2026 second quarter results. Analysts, members of the media and other interested parties can access the call toll free at 1-800-606-3040. The call will be webcast live at https://events.q4inc.com/attendee/193728984/. It is recommended that participants dial in or join the webcast fifteen minutes prior to the scheduled start time. A webcast replay will be available soon after the conclusion of the event and a transcript will be posted to the website. The replay will be available for seven days after the call toll-free 1-(800)-606-3040 (conference ID: 9581867). The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only. Enbridge's media and investor relations teams will be available after the call for any additional questions. DIVIDEND DECLARATION On July 27, 2026, our Board of Directors declared the following quarterly dividends. All dividends are payable on September 1, 2026 to shareholders of record on August 14, 2026. Dividend per share Common Shares $0.9700 Preference Shares, Series A $0.34375 Preference Shares, Series B $0.32513 Preference Shares, Series D $0.33825 Preference Shares, Series F $0.34613 Preference Shares, Series G1 $0.30247 Preference Shares, Series H $0.38200 Preference Shares, Series I2 $0.27789 Preference Shares, Series L US$0.36612 Preference Shares, Series N $0.41850 Preference Shares, Series P $0.36988 Preference Shares, Series R $0.39463 Preference Shares, Series 1 US$0.41898 Preference Shares, Series 3 $0.33050 Preference Shares, Series 43 $0.29427 Preference Shares, Series 5 US$0.41769 Preference Shares, Series 7 $0.37425 Preference Shares, Series 9 $0.35450 Preference Shares, Series 11 $0.34231 Preference Shares, Series 13 $0.33719 Preference Shares, Series 15 $0.35163 Preference Shares, Series 19 $0.38825 1 The quarterly dividend per share paid on Preference Shares, Series G was increased to $0.30247 from $0.29616 on June 1, 2026 due to the reset of the dividend on a quarterly basis. 2 The quarterly dividend per share paid on Preference Shares, Series I was increased to $0.27789 from $0.27159 on June 1, 2026 due to the reset of the dividend on a quarterly basis. 3 The quarterly dividend per share paid on Preference Shares, Series 4 was increased to $0.29427 from $0.28797 on June 1, 2026 due to the reset of the dividend on a quarterly basis. FORWARD-LOOKING INFORMATION Forward-looking information, or forward-looking statements, have been included in this news release to provide information... Read more

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