Enbridge (ENB) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 EBITDA and strong DCF per share, driven by high asset utilization and successful integration of major U.S. gas utility acquisitions, including PSNC, EOG, and Questar.

• Reaffirmed 2024 guidance, expecting results near the top end of the EBITDA range and midpoint for DCF per share.

• Expanded asset base with new docks and land at Ingleside, and sanctioned major projects in pipelines and renewables.

• Maintained a low-risk, diversified business model with minimal commodity price exposure and strong investment-grade credit ratings.

• Continued focus on returning capital to shareholders, with a 29-year track record of growing dividends.

Financial highlights

• Q3 adjusted EBITDA rose to $4.39B from $2.84B year-over-year; Q3 adjusted DCF per share was $1.19, including impacts from acquisitions.

• Q3 2024 GAAP earnings were $1.3B ($0.59/share), up from $0.5B ($0.26/share) in Q3 2023, with adjusted EPS at $0.55.

• Distributable cash flow (DCF) for Q3 was $2.6B, flat year-over-year.

• Liquids and gas transmission EBITDA increased year-over-year, while renewables saw mixed results.

• Financing costs and maintenance capital rose due to acquisitions and higher interest rates.

Outlook and guidance

• Trending toward the top end of 2024 EBITDA guidance ($17.7–$18.3B) and midpoint for DCF per share ($5.40–$5.80).

• Near-term (2023–2026) EBITDA CAGR expected at 7–9%, EPS CAGR at 4–6%, and DCF/share CAGR at ~3%.

• Medium-term (post-2026) EBITDA, DCF/share, and EPS growth rates projected at ~5%.

• Balanced, diversified secured backlog of CAD 27B, with CAD 5B to be placed into service by year-end.

• Management expects strong liquidity and no need to access capital markets for the next 12 months.