Enbridge (ENB) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with record Mainline and Ingleside export volumes, high asset utilization, and robust operational safety across all business units.

• Closed Questar and East Ohio Gas acquisitions, with PSNC expected to close in Q3 2024, expanding US gas utility operations and diversifying the business.

• Completed funding for all US Gas Utilities acquisitions via equity, ATM, and hybrid issuances, and recast 2024 guidance to include new contributions.

• Integration of acquired utilities progressing smoothly, enhancing diversification and stable cash flow.

• Announced major project milestones, including sanctioning the Blackcomb Pipeline, Orange Grove Solar, and Gray Oak Pipeline expansion.

Financial highlights

• Q2 2024 adjusted EBITDA was $4.335 billion, up 8% year-over-year; DCF per share at $1.34, reflecting higher share count from pre-funding.

• Operating revenues for Q2 2024 were $11.3 billion, up from $10.4 billion in Q2 2023.

• Adjusted EPS for Q2 2024 was $0.58, down from $0.68 in Q2 2023, mainly due to higher interest, taxes, and depreciation.

• Dividend per common share declared for Q3 2024 is $0.915.

• Credit ratings upgraded or affirmed by DBRS, S&P, and Fitch following acquisition funding completion.

Outlook and guidance

• 2024 adjusted EBITDA guidance raised to $17.7–$18.3 billion, including US Gas Utilities; DCF per share guidance reaffirmed at $5.40–$5.80.

• Near-term outlook reaffirmed: 7–9% adjusted EBITDA CAGR, 4–6% adjusted EPS CAGR, and ~3% DCF per share growth through 2026.

• Management expects sufficient liquidity to fund capital projects and acquisitions without new capital market access for the next 12 months.

• Dividend growth commitment continues, supported by a 29-year track record.

• $24 billion secured capital backlog to be funded through internal investment capacity.