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 financial and operational performance year-to-date.

• Completed and funded major U.S. Gas Utilities acquisitions (Questar, East Ohio Gas), with PSNC expected to close in Q3 2024, enhancing business diversification and stable cash flow.

• Integration of acquired utilities progressing smoothly, with significant customer and employee additions, and a focus on leveraging growth opportunities in high-growth regions.

• Strategic focus on maximizing returns from existing assets, integrating new utilities, and executing a $24–25 billion project backlog, primarily in power and gas.

• Major project milestones include 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; distributable cash flow per share was $1.34.

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

• US Gas Utilities acquisitions contributed approximately CAD 175 million of EBITDA compared to 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.

• Maintained DCF per share guidance at CAD 5.40–5.80; reaffirmed 7–9% EBITDA growth through 2026.

Outlook and guidance

• 2024 adjusted EBITDA guidance raised to CAD 17.7–18.3 billion, reflecting partial year contributions from U.S. gas utilities.

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

• Cash flow expected to grow 5% long-term, supporting annual TSR of 10–12% with a growing dividend.

• All growth opportunities expected to be self-funded through strong balance sheet and disciplined capital allocation.

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