ENBRIDGE INC earnings calls

MLO2 big-picture change

Q (Robert Hope · Scotiabank): Analyst asked what drove MLO2 becoming broader and when timing and shape will be clear.

A: Management said the policy changes in Canada could be a generational change for production and infrastructure. They said producers will sequence decisions until policies are implemented, so Enbridge will customize solutions and await clearer timing.

"Yes. Let me hand this to Colin, but maybe just let's recognize, first and foremost, the real possibility that we really are -- I think what is a generational change, for the positive, for the WCSB, oil and gas production and enhanced infrastructure." — Gregory Ebel (CEO)

MLO2 timing and plan

Q (Colin Gruending): Analyst wanted more color on what drove MLO2's evolution and when clarity on timing and shape will appear.

A: Management said producers and governments are still at a nonbinding MOU stage and it will likely take quarters to convert into law. They do not expect producers to start meaningful FIDs yet and Enbridge is resequencing MLO2 to focus first on Chicago South market access.

Oil sands pipeline spare capacity

Q (Robert Hope · Scotiabank): Analyst asked how much latent capacity exists in the regional oil sands network and what optimization or expansion could occur.

A: Management said there is some latent capacity in the regional network but there will be bottlenecks in parts of it. They noted seven trunk lines feeding Fort McMurray and that they are in active talks with producers and expect near-term FIDs on incremental capital.

"We do have some latent capacity in the regional area, as you pointed out, although there will be some bottlenecks in certain parts of that network." — Colin Gruending

Return on capital outlook

Q (Spiro Dounis · Citi): Analyst asked if the better growth environment is translating into higher returns and if returns on new projects could rise above prior levels.

A: Management said returns are strongest in Liquids and gas pipelines and they aim to increase enterprise ROCE by 100 basis points. They noted gains come from multiple levers like buying scale, brownfield projects and regulatory execution, though regulated parts are harder to lift.

"So it's not a one thing. It's on all of those fronts." — Gregory Ebel (CEO)

Project Beacon scope and phases

Q (Matthew Akman · Citi): Analyst asked if Project Beacon interest allows expanding scope or adding a second phase to meet demand.

A: Management said Beacon showed strong demand and they are pursuing an Algonquin enhancement as an initial phase which is smaller, and expect future phases to be multiple times larger. They said permitting is the main hurdle and they will maintain discipline on permitting risk while pursuing further commercial phases.

Permian gas strategy

Q (Manav Gupta · UBS): Analyst asked about Enbridge's Permian gas strategy and how the company benefits in the basin.

A: Management said they have advanced intentionally into the Permian through assets like WhiteWater and Bay Runner and will address LNG and storage tied to that gas. They highlighted ability to move gas through Texas Eastern and storage expansions on the Gulf Coast as key opportunities.

Permian growth details

Q (Matthew Akman · UBS): Analyst wanted more on Permian developments and opportunities across pipeline, storage and downstream.

A: Management said they have sanctioned Bay Runner phase two and see room for further expansion across pipelines, storage and downstream markets like Corpus and Houston. They noted almost 50 Bcf a day of expansion across their wholly owned Gulf Coast storage facilities as opportunity.

Renewables portfolio progress

Q (Manav Gupta · UBS): Analyst asked about Enbridge's renewables portfolio, big customers like Meta, and tax credit impacts.

A: Management said they have FID-ed about $3.4 to $3.5 billion of renewables since Investor Day and have over 1.5 GW under construction with blue-chip customers like Meta. They also said another ~1.5 gigs are in safe harbor and projects can be economic even without tax credits in some tariff settings.

"Right now, we've got, as you can see from the slide, over 1.5 gigs just under construction." — Allen Capps

Why MLO2 upstream delayed

Q (Maurice Choy · RBC): Analyst asked what changed to postpone the MLO2 upstream project—costs, demand, or other factors—and asked about debt/EBITDA trajectory.

A: Management said the delay is more about geopolitical volatility and producer psychology than costs, citing oil price swings and policy moves that make firms cautious to sanction large projects. On leverage, they said end-of-quarter debt/EBITDA was 5.1x (4.5x-5x adjusted FX), expect many projects to come into service late this year and back half of 2027, and they can manage leverage with cash flow, hybrids, or monetizations.

"So I think you can see there's a fair bit of a challenging backdrop for producers, refiners, exporters and pipelines to fully commit to large-scale projects." — Gregory Ebel (CEO)

$20B sanctioning mix

Q (Jeremy Tonet · JPMorgan): Analyst asked what types of projects make up the $20 billion sanctioning target and which areas will contribute.

A: Management said sanctioned projects so far include gas transmission, liquids, renewables and gas distribution, with more expected on the gas transmission side to serve power, LNG, storage and industrial onshoring. They noted many projects are across utility footprints, the Southeast, Northeast and Gulf Coast, and that Blackcomb is ramping to full by year-end.

"It is a very exciting time for the Gas Transmission business." — Matthew Akman

Ohio utility regulation and affordability

Q (Robert Catellier · CIBC): Analyst asked about Ohio rate case strategy and a proposed utility rate freeze law.

A: Management said they received a constructive staff report and will enter settlement discussions with a hearing in late September, and they do not see the specific legislation gaining traction. They emphasized focus on affordability and cited storage investments that saved customers money as part of their approach.

"The legislation itself, the way it was brought forward, it missed some particularly relevant deadlines in order to be able to get through." — Michele Harradence

Southern Lights capacity and timing

Q (Aaron MacNeil · TD Cowen): Analyst asked how much Southern Lights or Norlite could add without twinning and timeline for solutions.

A: Management said both pipes have headroom that can be added via pumping or compression and they will bring capacity on in pieces as needed under a commercial playbook, moving Southern Lights to a contract model. They said domestic condensate will be insufficient if production grows, so imports and additional import solutions will be required.

"Yes and yes." — Colin Gruending

Timing between downstream then upstream expansions

Q (George Burwell · Jefferies): Analyst asked if upstream Mainline expansion will quickly follow downstream expansions and whether tolling settlement timing matters.

A: Management said timing is TBD and the upstream solution need not be identical to MLO2; many variants and interim designs exist. They said they will remain customer-led and agile, and that multiple technical and siting solutions exist for Mainline expansion when required.

"It does not." — Colin Gruending

Recontracting returns and white space

Q (Benjamin Pham · BMO): Analyst asked how recontracting affects returns and whether the $20 billion fills white space through decade end; also asked West Coast pipeline outlook.

A: Management said recontracting generally yields as-good-or-better rates and storage returns have risen; the opportunity set is ~$50 billion so $20 billion is a portion and they have no shortage of opportunities. On the West Coast, they cited strong renewed support for gas in British Columbia, permitting and stakeholder support for LNG and expansions like T-North/T-South and said they have a fully permitted LNG pipeline.

"The opportunity set is more like $50 billion." — Gregory Ebel (CEO)