Q1 2024 Enbridge Inc Earnings Call

Rebecca Morley: Good morning, and welcome to the Enbridge Inc. first quarter 2024 conference call. My name is Rebecca Morley, and I'm the Vice President of Investor Relations. Joining me this morning are Greg Ebel, President and CEO, Pat Murray, Executive Vice President and Chief Financial Officer, and the heads of each of our business units, Colin Gruending, Liquid Pipelines, Cynthia Hansen, Gas Transmission and Midstream, Michele Harradence, Gas Distribution and Storage, and Matthew Akman, Renewable Power. At this time, all participants are in listen-only mode.

Good morning, and welcome to the Enbridge, Inc. First quarter 2024 Conference call. My name is Rebecca Morley and I'm, the Vice President of Investor Relations joining.

Speaker Change: Joining me. This morning are Gregg <unk>, President and CEO, Pat Murray Executive Vice President and Chief Financial Officer.

Speaker Change: And the heads of each of our business units.

Speaker Change: Liquids Pipelines', Cynthia Hansen gas transmission, and midstream Michel inheritance gas distribution and storage and Matthew Ackman renewable power.

Speaker Change: At this time all participants are in listen only mode. Following the presentation. We will conduct a question and answer session for the investment community. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad.

Rebecca Morley: Following the presentation, we will conduct a question and answer session for the investment community. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the pound key.

Speaker Change: If you would like to withdraw your question press the pound key.

Rebecca Morley: Please note that this conference is being recorded. As per usual, this call is being webcast, and I encourage those listening to follow along with the supporting slides. We'll try to keep the call to roughly one hour, and in order to answer as many questions as possible, we will be limiting the questions to one plus a single follow-up, if necessary. We'll be prioritizing questions from the investment community, so if you are a member of the media, please direct your inquiries to our communications team, who will be happy to respond.

Speaker Change: Please note that this conference is being recorded.

Speaker Change: As per usual this call is being webcast and I encourage those listening to follow along with the supporting slides.

I'll try to keep the call to roughly one hour and in order to answer as many questions as possible, we will be limiting the questions to one plus a single follow up if necessary will.

Speaker Change: We will be prioritizing questions from the investment community. So if you are a member of the media. Please direct your inquiries to our communications team, who will be happy to respond.

Rebecca Morley: As always, our investor relations team will be available following the call for any follow-up questions. Now, on to slide two, where I'll remind you that we'll be referring to forward-looking information in today's presentation and Q&A. By its nature, this information contains forecast assumptions and expectations about future outcomes, which are subject to the risks and uncertainties outlined here and discussed more fully in our public disclosure file. We'll also be referring to non-GATT measures, summarized below. And with that, I'll turn it over to Greg Ebel. Thanks very much.

Speaker Change: As always our Investor relations team will be available following the call for any follow up questions.

Speaker Change: On slide two where I'll remind you that we'll be referring to forward looking information on today's presentation and Q&A.

Speaker Change: By its nature. This information contains forecasts assumptions and expectations about future outcomes, which are subject to the risks and uncertainties outlined here and discussed more fully in our public disclosure filings.

Speaker Change: Well also be referring to non-GAAP measures summarized below and with that I'll turn it over to Greg.

Gregory Lorne Ebel: Thanks very much Rebecca and good morning everyone. Thanks for joining us on this call. I'm pleased to be here today to report record financial results for the quarter, driven by strong operational performance and strong energy fundamentals. I'll provide a quick recap for Q1 and update you on each of our businesses, and Pat will speak further to our financial performance, capital allocation priorities, and future growth outlooks. And, as always, the management team is here to answer any questions that the investment community may have following our presentation.

Greg: Thanks, very much Rebecca and good morning, everyone. Thanks for joining us for this call I am pleased to be here today to report record financial results for the quarter driven by strong operational performance and strong energy fundamentals I'll provide a quick recap for Q1 and update you on each of our businesses and Pat will speak further to our financial.

Patrick Robert Murray: Performance capital allocation priorities and future growth.

Patrick Robert Murray: And as always the management team is here to answer any questions that the investment community has following our presentation.

Gregory Lorne Ebel: I'm pleased to report adjusted EBITDA is up 11% year over year, and we're well on our way to meeting our financial guidance for 2024. We saw high utilization rates across our systems, and safety, which remains a top priority, was also excellent during the quarter. As you know, the acquisition of East Ohio Gas closed on March 6, which further diversifies our business, extends our growth outlook, and enhances the stable cash flow profile of our asset base.

Patrick Robert Murray: I am pleased to report adjusted EBITDA is up 11% year over year, and we're well on our way to meeting our financial guidance for 2024.

Patrick Robert Murray: We saw high utilization rates across our systems and safety, which remains a top priority was also excellent during the quarter.

Patrick Robert Murray: As you know the acquisition of East, Ohio gas closed on March six which further diversifies our business extends our growth outlook and enhances the stable cash flow profile of our asset base. As a reminder, we've already secured over 85% of the required financing for the U S gas utility acquisitions.

Gregory Lorne Ebel: As a reminder, we've already secured over 85% of the required financing for the U.S. gas utility acquisitions and will fund the remainder using a combination of alternatives, which may include hybrid or bond issuances, capital recycling, and ATM issuance. We have the capacity to utilize any and all of these sources of funding, and so that we can be in a position to optimize market conditions, you'll see us updating and preparing security filings to preserve this funding flexibility and ensure we complete all the utility acquisition funding well in advance of year end. We closed the Allianz Sachs-Sable divestiture in April, continuing our track record of recycling capital at a rate of multiple.

Patrick Robert Murray: And we will fund the remainder using a combination of alternatives, which may include hybrid or bond issuances capital recycling and ATM issuances.

Patrick Robert Murray: We have the capacity to utilize any and all of these sources of funding and so that we can be in a position to optimize market conditions youll see us updating of preparing security filings to preserve this funding flexibility and ensure we complete all the utility acquisition funding well in advance of year end.

Patrick Robert Murray: We closed the alliance on Sable divestiture in April continuing our track record of recycling capital at attractive multiples.

Gregory Lorne Ebel: The Mainline Toning Agreement was recently approved, as filed, by the Canadian Energy Regulatory Commission. The mainline continues to operate at or near capacity, and we are ready to add additional egress as our customers request. We had exciting growth announcements in the U.S. Gulf Coast with our recent Whistler JV, the sanctioning of Sparta Pipeline, and the acquisition of two marine docks and adjacent land at our Ingleside Export Facility. We've also recently progressed a full FID on the Tennessee Ridgeline Expansion Project following the TVA's decision to construct a new natural gas combined cycle plant in Kingston, Tennessee.

Patrick Robert Murray: The mainline tolling agreement was recently approved as filed by the Canadian Energy regulator. The mainline continues to operate at or near capacity and we are ready to add additional egress as our customers need it.

Patrick Robert Murray: Exciting growth announcements in the U S Gulf Coast with our recent Whistler JV.

Patrick Robert Murray: <unk> of spirit of pipeline and the acquisition of two marine docks and adjacent land at our Ingleside export facility.

Patrick Robert Murray: We've also recently progressed to full on the Tennessee Rich line expansion project. Following the TVA is decision to construct a new natural gas combined cycle plant in Kingston, Tennessee.

Gregory Lorne Ebel: This project further underlines the criticality of pipelines in fueling lower carbon power via gas generation. Today, we published our 23rd annual sustainability report, which highlights our performance and approach to environmental, social, and governance goals. Now, before I touch on these developments further, let me take a moment to highlight what really was a first-rate financial performance in the quarter.

Patrick Robert Murray: This project further underlines the criticality of pipelines and fueling lower carbon power via gas generation.

Patrick Robert Murray: Today, we published our 2000 <unk> annual sustainability report, which highlights our performance in approach to environmental social and governance goals.

Patrick Robert Murray: Now before I touch on these developments further let me take a moment to highlight what really was the first rate financial performance in the quarter.

Gregory Lorne Ebel: We'll be getting into this in more detail later, but we're going to be presenting side-by-side, those being Adjusted Actuals and the base business we guided again. We believe this transparency will let you see our base business against our 24-month guidance as well as the all-in results, which include a partial month of owning East Ohio Gas and all our utility financings to date. Starting with all-in, our EBITDA is up 11% and DCF per share up 4% from last year, primarily due to strong asset performance across liquids, gas transmission, and renewables, as well as a partial month contribution from EOG.

Patrick Robert Murray: That will be getting into this in more detail later, but we're going to be presenting side by side results those being adjusted actuals and the base business, we guided against.

Patrick Robert Murray: We believe this transparency will let you see our base business against our 2000 and for guidance as well as the Orlando, which include a partial month of owning east, Ohio gas and all of our utility financings to date.

Patrick Robert Murray: Starting with all in our EBITDA is up 11% and DCF per share up 4% from last year, primarily due to strong asset performance across liquids gas transmission that renewables as well as a partial month contribution from EOG.

Gregory Lorne Ebel: Our balance sheet remains well positioned ahead of the closings of Questar and PSNC at 4.7 times that to EBITDA. Since this number is as of March 31st, these leverage numbers don't yet include the beneficial proceeds from the sale of Alliance and Auxable.

Our balance sheet remains well positioned ahead of the closings of quest star at TSMC at four seven times debt to EBITDA.

Patrick Robert Murray: Since this number is as of March 31st these leverage numbers don't yet include the beneficial proceeds from the sale of alliance and Akshay.

Gregory Lorne Ebel: Touching briefly on the base business, we are very much on track with our financial guidance. In fact, our base business EBITDA on DCF per share is up close to 8%, and debt-to-EBITDA is at 4.6 times. Under both views, we've had a record financial quarter, and we look forward to keeping that momentum going. Our industry-leading business risk supports our long-held leverage target of 4.5 to 5 times. Enbridge has virtually no commodity price exposure, and over 98% of our earnings are generated from either cost-of-service or take-or-pay contracted assets. Additionally, 80% of our EBITDA is earned from assets with protection against inflation, and we are well hedged against interest rate volatility with less than 5% of our debt portfolio exposed to floating rates.

Patrick Robert Murray: Touching briefly on the base business, we are very much on track with our financial guidance in fact, our base business EBITDA and DCF per share of 8% and debt to EBITDA is at four six times.

Patrick Robert Murray: Under both views, we've had a record financial quarter, and we look forward to keeping that momentum going.

Patrick Robert Murray: Our industry, leading business risk supports our long held leverage target of four five to five times Enbridge has virtually no commodity price exposure and over 98% of our earnings are generated from either cost of service or take or pay contracted assets and 80% of our EBITDA is earned from assets with protection again.

Patrick Robert Murray: The installation.

Patrick Robert Murray: And we are well hedged against interest rate volatility with less than 5% of our debt portfolio exposed to floating rates now.

Gregory Lorne Ebel: Now let's take a look at the notable highlights I mentioned earlier from each of our businesses, starting with... Liquids pipelines delivered high utilization levels once again. The mainline transported over 3.1 million barrels per day during the first quarter, and we continue to expect average throughput of 3 million barrels per day for the year.

Speaker Change: Now, let's take a look at the notable highlights as I mentioned earlier from each of our businesses starting with liquids.

Speaker Change: Liquids pipelines delivered high utilization levels once again.

Speaker Change: The mainline transported over $3 1 million barrels per day during the first quarter and we continue to expect average throughput of 3 million barrels per day for the year.

Gregory Lorne Ebel: As I mentioned earlier, the Canadian Energy Regulator approved the mainline tolling settlement, which we view as a win-win-win for Enbridge, our customers, and the industry. Switching gears to the U.S. Gulf Coast, we acquired two strategic docks and nearby land adjacent to Ingleside for $200 million. This acquisition will optimize existing operations in the area by increasing VLCC docking windows at Ingleside and will help set the stage for Ingleside to realize its ultimate potential as the industry-leading multiproducts export terminal in North America.

Speaker Change: As I mentioned earlier, the Canadian energy regulator approves the mainline tolling settlement, which we view as a win win win for Enbridge, our customers and the industry.

Speaker Change: Switching gears to the U S. Gulf Coast, we acquired two strategic docs and nearby land adjacent to Ingleside for $200 billion U S.

Speaker Change: This acquisition will optimize existing operations in the area by increasing VLCC dockings windows at Ingleside and will help set the stage for Ingalls side to realize its ultimate potential as the industry, leading multi products export terminal in North America.

Gregory Lorne Ebel: In the Permian, we've launched our open season to expand grey oak capacity by up to 120,000 barrels per day pending a successful open season. Recently, we finished constructing four new storage tanks at Eagleside, bringing total storage capacity to 18 million barrels there, and we've already sanctioned an additional five tanks to add another 2.5 million barrels of storage capacity by 2025. Now, let's take a deeper look at gas

Speaker Change: In the Permian, we've launched our open season to expand gray oak capacity by up to 120000 barrels per day pending a successful open season.

Recently, we finished constructing for new storage tanks at Eagle side, bringing total storage capacity to 18 million barrels there and we've already sanctioned that additional five tanks to add another $2 5 million barrels of storage capacity by 2025.

Speaker Change: Now, let's take a deeper look at gas transmission.

Gregory Lorne Ebel: In Canada, wood fiber is progressing well, and we expect to reach the 60% engineering milestone in the second half of 2024. In the United States, we announced the formation of the Enbridge-Whitewater-MPLX joint venture. This transaction will be immediately accretive to DCF per share and our balance sheet metrics and allows us to establish a natural gas footprint in the Permian Basin. The Tennessee Ridgeline Expansion Project has progressed to full FID.

Speaker Change: In Canada with fiber is progressing well and we expect to reach the 60% engineering milestone in the second half of 2024.

Speaker Change: In the United States, we announced the formation of the Enbridge Whitewater MPLX joint venture.

Speaker Change: This transaction will be immediately accretive to DCF per share and our balance sheet metrics and allows us to establish a natural gas footprint in the Permian basin.

Speaker Change: The Tennessee Ridge line expansion project has progressed to full.

Gregory Lorne Ebel: This is the natural gas pipeline we announced a few years ago that will deliver gas to the Tennessee Valley Authority's new natural gas combined cycle plant, an emissions-friendly replacement of their existing coal-fired power plant. Construction will begin in 2025 with an expected in-service date of Q4 2026. We also sanctioned the construction of offshore pipelines to service Shell and Equinor's U.S. Gulf Coast operations. Now, before I discuss our strategic joint venture in more detail, let me take a moment to comment on the topic du jour. In addition to the growing demand for natural gas to feed LNG ton, the build-out of data centers and generative AI is forecasted to require a material increase in power generation.

Speaker Change: This is the natural gas pipeline, we announced a few years back that will deliver gas to the Tennessee Valley authority as new natural gas combined cycle plant and emissions friendly replacement of their existing coal fired power.

Speaker Change: Construction will begin in 2025 with an expected in service date of Q4 2026.

Speaker Change: We also sanctioned the construction of offshore pipelines to service shell and <unk> U S Gulf Coast operations now.

Speaker Change: Now before I discuss our strategic joint venture in more detail, let me take a moment to comment on the topic Du jour in.

Speaker Change: In addition to the growing demand for natural gas to feed LNG terminals. The build out of data centers and generative AI is forecasted to require immaterial increase in power generation.

Gregory Lorne Ebel: This new power generation will be fed by a combination of natural gas and renewable energy and supports our view that the world needs all forms of energy. As the sector evolves, Enbridge is well positioned to serve this increased demand through the vast footprint of our assets connected to key supply bases. And with Enbridge's asset base, we can offer customers access to permanent power by fueling natural gas generation and renewable power. It's a competitive advantage that we have to offer jurisdictions throughout North America.

Speaker Change: This new power generation will be fed by a combination of natural gas and renewables and supports our view that the world needs all forms of energy.

Speaker Change: As the sector evolves enbridge is well positioned to serve this increased demand through the vast footprint of our assets connected to key supply basins.

Speaker Change: And with Enbridge as asset base, we can offer customers access to permanent power by fueling natural gas generation and renewable power. It is a competitive advantage that we have done through jurisdictions throughout North America.

Gregory Lorne Ebel: We expect this trend of serving data centers will take some time to wrap up, but we are ready to serve our customers and their energy needs through our integrated infrastructure network. Now, let's take a deeper dive into our Whitewater joint venture.

Speaker Change: We expect this trend of serving data centers will take some time to wrap up but are ready to serve our customers and their energy needs through our integrated infrastructure network.

Speaker Change: Now, let's take a deeper dive into our whitewater joint venture.

Gregory Lorne Ebel: On March 26, we announced the formation of the Whistler Pipeline JV, which will own the gas pipeline and storage network connecting the Permian Basin to the growing U.S. Gulf Coast demand. This transaction further extends our access to the U.S. Gulf Coast LNG terminals, adding a connection to Chenier's Corpus Christi. There are four assets within the JV, the Whistler pipeline and the Oaxaca natural gas storage, which are currently in operation; the ADCC pipeline, which is expected to come into service in Q3, and the Rio Bravo pipeline, which will enter service in 2026. The portfolio of assets is highly contracted, in fact, by predominantly investment-grade counterparties, which aligns perfectly with our low-risk commercial model.

Speaker Change: Our March 26, we announced the formation of the Whistler pipeline, JV, which will own the gas pipeline and storage network connecting the Permian basin to the growing U S Gulf coast demand.

Speaker Change: This transaction further extends our access to the U S Gulf Coast, LNG terminals, adding a connection to Cheniere Corpus Christi terminal there.

Speaker Change: There are four assets within the JV, the Whistler pipeline Wockhardt natural gas storage, which are currently in operation. The ADC pipeline, which is expected to come into service in Q3, and the Rio Bravo pipeline, which will enter service in 2026.

Speaker Change: Folio of assets is highly contracted and backed by predominantly investment grade counterparties, which aligns perfectly with our low risk commercial model.

Gregory Lorne Ebel: Beyond that, the system has embedded future growth opportunities, which will support growing LNG export volume. This new JV is a strategic move into a prime Gas Supply Basin, bringing together three key Texas midstream partners in an extremely attractive and financially beneficial manner. So now, let's take a closer look at gas distribution and storage.

Speaker Change: Beyond that the system has embedded future growth opportunities, which will support growing LNG export volumes. This new JV is a strategic move into the prime gas supply basin, bringing together three key Texas midstream partners, and an extremely attractive and financially beneficial manner.

Speaker Change: So now, let's take a closer look at gas distribution and storage.

Gregory Lorne Ebel: As I mentioned earlier, we closed the Enbridge Gas Ohio acquisition on March 6th, and we are making great progress on the remaining U.S. gas utilities acquisition. The integration teams are working hard, and we look forward to continuing to deliver safe, reliable, and affordable natural gas to millions of residents and businesses. The Ohio Gas Utility serves 1.2 million customers and includes rate structures that decouple revenue from volumes, reducing earnings seasonality.

As I mentioned earlier, we closed the Enbridge gas, Ohio acquisition on March six and we are making great progress on the remaining U S gas utilities acquisitions.

Speaker Change: Gration teams are working hard and we look forward to continuing to deliver safe reliable and affordable natural gas to millions of residents and businesses.

Speaker Change: The Ohio gas utility serves one 2 million customers and includes rate structures that decoupled revenue from volumes reducing earnings seasonality.

Speaker Change: In addition over 80% of the capital subject to recovery riders, which allows enbridge gas, Ohio to recover on that capital in a matter of months rather than years.

Gregory Lorne Ebel: In addition, over 80% of the capital is subject to recovery riders, which allows Enbridge Gas Ohio to recover on that capital in a matter of months rather than years. We continue to work collaboratively with Questar and PSNC's regulatory bodies and expect to close those acquisitions later this year. Turning to our Canadian gas utility, we filed a court appeal and submitted a motion with the OEB to review their December rate rebasing decision for EGI. The Court of Appeal has been placed in abeyance until the OEB.

Speaker Change: We continue to work collaboratively with Westar and TSMC is regulatory bodies and expect to close those acquisitions later this year.

Speaker Change: Turning to our Canadian gas utility, we filed a court of appeal and submitted a motion, but the OSB to review their December rate re basing decision for UGI.

Speaker Change: The court has been placed in abeyance until the review is complete which we expect could be during the third or fourth quarter of this year.

Gregory Lorne Ebel: Complete, which we expect could be during the third or fourth quarter of this year. The Province of Ontario is enacting the Keep Energy Costs Down Act, and we're encouraged that the Government of Ontario is taking positive steps to preserve customer choice and affordability. In the meantime, we'll continue to focus on delivering safe and reliable energy to our growing customer base in Ontario and the second phase of the rebasing procedure. On the operations side, our Dawn Hub continues to serve nearby markets with about 290 BCF of network storage capacity, roughly a third of which is non-regulated and available to benefit from improved storage rates.

Speaker Change: The province of Ontario is enacting the keep energy costs down.

Speaker Change: And we're encouraged that the government of Ontario is taking positive steps to preserve customer choice and affordability.

Speaker Change: In the meantime, we will continue to focus on delivering safe and reliable energy to our growing customer base in Ontario, and the second phase of the Rebase proceedings.

Speaker Change: On the operation side, our dawn hub continues to serve nearby markets with about 290 Bcf of networking storage capacity roughly a third of which is not regulated and available to benefit from improved storage rates.

Gregory Lorne Ebel: Let's jump into the Renewables section. As mentioned at Investor Day, we like offshore wind in France because of the solid risk-adjusted returns, strong partnerships, and long-term government-backed off-take. This focus point is exhibited through the three French projects we have coming into service shortly with FACOMP, PGL, and Calvado. At Bay Comp, all 71 turbines have been installed, and the wind farm has begun generating electricity, powering the equivalent of more than 400,000 homes. At Provence Ground Large, all the turbines and the floaters have been installed.

So let's jump into the renewable section as mentioned at Investor Day, we like offshore wind in France, because of the solid risk adjusted returns strong partnerships and long term government backed off take agreements. This focal point as exhibited through the three French projects, we have coming into service shortly with phase <unk>.

Speaker Change: And calibrate us.

Speaker Change: They comped all 71 turbines have been installed and the wind farm has begun generating electricity powering the equivalent of more than 400000 homes at prevalence ground large all turbines and the floaters have been installed now, let's pivot to our ESG progress outlined in our 2023 sustainability report.

Gregory Lorne Ebel: Now let's pivot to our ESG progress outlined in our 2023 Sustainability Report. Today, we published that 23rd Annual Sustainability Report, and I'm pleased to report great progress towards our environmental, social, and governance goals. Since 2018, we've reduced our GHG emissions intensity by 37%, and we're well on our way to net zero emissions by 2050, having reduced our absolute emissions by 20% and our methane emissions by 40% since 2018.

Speaker Change: Today, we published that 23rd annual sustainability report and I am pleased to report great progress towards our environmental social and governance goals. Since 2018, we've reduced our <unk> emissions intensity by 37% and we're well on our way to net zero emissions by 2050, having reduce.

Speaker Change: Our absolute emissions by 20% and our methane emissions by 40% since 2018.

Gregory Lorne Ebel: On diversity, we've already met and exceeded our board targets and have increased our workforce representation in all measurable areas since this time last year. Safety remains our highest priority, of course, and we continue to drive industry-leading standards and achieve a 10% improvement over our previous three-year average total recordable incident rate. Sustainability is core to Enbridge, and we're committed to meeting the needs of our customers, investors, and society as we continue to provide energy in a planet-friendly way everywhere people need it. So now, I turn things over to Pat to walk you through our quarterly financial results, our capital allocation priorities, and our growth outlook. Thanks, Greg. Good morning, everyone.

Our diversity, we've already met and exceeded our board targets and have increased our workforce representation in all measurable areas. Since this time last year.

Speaker Change: Safety remains our highest priority of course, and we continue to drive industry, leading standards and achieved a 10% improvement over our previous three year average total recordable incident rate.

Speaker Change: Sustainability is core to Enbridge and were committed to meeting the needs of our customers investors and society as we continue to provide energy and our planet friendly way everywhere people need it.

Speaker Change: So now let me turn things over to Pat to walk you through our quarterly financial results, our capital allocation priorities and our growth outlook.

Patrick Robert Murray: We're off to a great start in 2024. It's been another strong quarter operationally, and I'm proud of the teams for successfully closing the acquisition of Enbridge Gas Ohio on March 6. Utilization was high across all franchises, showcasing continued demand for assets. I'm going to speak primarily about the actual results today.

Patrick Robert Murray: Thanks, Greg and good morning, everyone. We're off to a great start in 2024, it's been another strong quarter operationally and I'm proud of the teams for successfully closing the acquisition of the Enbridge gas, Ohio on March six utilization.

Patrick Robert Murray: Utilization was high across all franchises showcasing continued demand for assets.

Patrick Robert Murray: Im going to speak primarily about the actual results today. We've also broken out what we referred to as our base business results, which exclude the contribution from and the related financings of U S gas utilities, and we'll continue to report our base business results for comparison against financial guidance.

Patrick Robert Murray: We've also broken out what we refer to as our base business results, which exclude the contribution from and related financing from U.S. gas utilities. And we'll continue to report our base business results for comparison against financial guidance. In the supplementary materials posted on our website, we provided a reconciliation between the two for transparency purposes.

Patrick Robert Murray: In the supplemental materials posted on our website, we've provided a reconciliation between the two for transparency purposes.

Patrick Robert Murray: Now on to the results of the business. Year-over-year, first quarter adjusted EBIT is up 11%, and DCF per share is up 4. Inclusive of the share issued last September to fund the U.S. gas utility. In liquids, continued demand for our full-path system drove strong results, particularly on the mainline and our mid-continent and Gulf Coast assets, specifically up line against South Line and the Ingletide Export Facility. Gas transmission had another quarter of high utilization and favorable recontracting on storage and transmission assets, as well as benefiting from the acquisition of our gas storage facilities at Trace Palacios and Eakin Creek and the new Tomorrow RNG portfolio.

Patrick Robert Murray: Now onto the results of the business.

Patrick Robert Murray: Year over year first quarter, adjusted EBIT was up 11% and DCF per share up four inclusive of share issued last September to fund the U S gas utilities and liquids continued demand for our full path system drove strong results, particularly on the mainline and our mid continent and Gulf Coast assets, specifically, our Flanagan South line and the Ingleside.

Patrick Robert Murray: Export facility.

Patrick Robert Murray: Gas transmission had another quarter of high utilization and favorable re contracting on storage and transmission assets as well as benefiting from the acquisition of our gas storage facilities Tres Palacios in Eastern Creek, and the new Tomorrow R&D portfolio.

Patrick Robert Murray: Despite significantly warmer weather in Ontario, which impacted first quarter results by almost $80 million, EGI's results were consistent year-over-year, as the Canadian utility benefited from higher rates and increased customer base. Enbridge Gas Ohio, as I noted, closed at the beginning of March and contributed about $50 million of EBITDA in the 24 days of ownership.

Patrick Robert Murray: Despite significantly warmer weather in Ontario, which impact first quarter results by almost $80 million <unk> results were consistent year over year as the Canadian utility benefited from higher rates and increased customer base.

Patrick Robert Murray: Enbridge gas, Ohio as I noted closed at the beginning of March and contributed about $50 million of EBITDA in the 24 days of ownership.

Patrick Robert Murray: The renewables business benefited from increased OTC and Albatross ownership compounded by strong international wind resources on those same assets, as well as contributions from our investments in Fox Squirrel as a result of the generation of investment tax credits. As a reminder, our energy services segment is now embedded into the business units, so you will not see it as a standalone segment anymore. This change has no impact on our segmented 2024 financial guide.

Patrick Robert Murray: The renewables business benefited from increased OTC, an albatross ownership.

Patrick Robert Murray: Founded by strong International wind resources on those same assets as well as contributions from our investments in Fox World as a result of the generation of investment tax credits.

Patrick Robert Murray: As a reminder, our energy services segment is now embedded into the business units. So you will not see it as a standalone segment anymore. This change has no impact on our segments in 2024 financial guidance.

Patrick Robert Murray: Eliminations and others are up in 2024, owing to the higher investment income and lower operating administrative costs within the quarter. Below the line in DCF per share, higher EBITDA was partially offset by higher interest rates impacting both floating rate and new debt. And finally, the additional share count from the FEDS rents in September of last year also impacted our per share measure.

Patrick Robert Murray: Eliminations and others up in 2024, owing to the higher investment income and lower operating and administrative costs within the quarter.

Patrick Robert Murray: Below the line in DCF per share higher EBITDA was partially offset by higher interest rates impacting both floating rate and new debt.

Patrick Robert Murray: And finally, the additional share count from the equity issuance in September of last year also impacted our per share measures.

Patrick Robert Murray: Today, we're also reaffirming business financial guidance, and we expect to be well within the range. If we are able to close the Utah acquisition within the second quarter, as we expect, we'll look to update the full year guidance inclusive of the utility acquisitions on our Q2 call. Before I move on, I want to remind the investment community that our results have implicit seasonality. The first and fourth quarters are typically our strongest financial quarters.

Patrick Robert Murray: Today, we're also reaffirming base business financial guidance, and we expect to be well within the range.

Patrick Robert Murray: We were able to close the <unk> acquisition within the second quarter as we expect we will look to update the full year guidance inclusive of the utility acquisitions on our Q2 call.

Before I move on I want to remind the investment community that our results have implicit seasonality.

Patrick Robert Murray: The first and fourth quarters are typically our strongest financial quarters gas consumption at the Ontario utility and gas transmission on our gas pipelines increases during colder months, while refinery turnarounds typically take place in the spring and summer, which means our liquid deliveries or lower during these periods with that let's turn to our growth drivers.

Patrick Robert Murray: Gas consumption at the Ontario Utility and gas transmission on our gas pipelines increases during colder months, while refinery turnarounds typically take place in the spring and summer, which means our liquid deliveries are lower during these periods.

Patrick Robert Murray: With that, let's turn to our growth drivers. This slide drives a bit deeper into our Secured Capital Program and optimization opportunities, providing visibility to 4-5% of our overall medium-term growth outlook. As mentioned, our Secured Growth Program now sits at $25 billion. The backlog is heavily weighted towards our gas transmission and utility business, and the diversity of projects, both in terms of scope and geography, reduces our exposure to inflation and regulatory risks.

Patrick Robert Murray: This slide drives a bit deeper into our secured capital program and optimization opportunities providing visibility so 45% of our overall medium term growth outlook as mentioned our secured growth program now sits at 25 billion.

Patrick Robert Murray: The backlog is heavily weighted towards our gas transmission and utility business and the diversity of projects. Both in terms of scope and geography reduces our exposure to inflation or regulatory risk.

Patrick Robert Murray: Also worth pointing out is that our share of capital in Rio Bravo has been reduced in line with our lower interest in the pipeline, as outlined in our joint venture press release in March. On cost savings, we continue to evaluate opportunities to reduce overhead, improve productivity, and incorporate inflation protection into our commercial agreements on an ongoing basis. Asset optimisation, cost management, and contract negotiations have historically generated 1-2% of annual growth for Enbridge and will remain important drivers of our business going forward.

Patrick Robert Murray: Also worth pointing out is that our share of capital and Rio Bravo has been reduced in line with our lower interest in the pipeline as outlined in our joint venture press release in March.

Patrick Robert Murray: On cost savings, we continue to evaluate opportunities to reduce overhead and improve productivity and incorporate inflation protection into our commercial agreements ongoing basis.

Patrick Robert Murray: Asset optimization cost management and contract negotiations have historically generated 1% to 2% of annual growth for Enbridge and will remain important drivers of our business going forward.

Patrick Robert Murray: Lastly, I'll touch on our capital allocation priorities that we spoke about at Enbridge. With the remaining LDC closes in sight, I'd like to reiterate our continued commitment to balance sheet strength and sustainable capital return. Our leverage guardrails and four and a half times to five times debt to EBITDA remain in place and are supported by our industry-leading low-risk business model. The sale of our interest in Lions Rock Sable reinforces the balance sheet and ensures continued financial flexibility ahead of the Questar and PSNC closings this year. As I reiterated last quarter and emphasized on Embridge Day, our focus remains grounded in capital prudence.

Patrick Robert Murray: Lastly, I'll touch on our capital allocation priorities that we spoke about at Enbridge days.

Patrick Robert Murray: With the remaining LDC closes insight I'd like to reiterate our continued commitment to balance sheet strength and sustainable capital returns our leverage guardrails and four five times to five times debt to EBITDA remain in place and are supported by our industry, leading low risk business model.

Patrick Robert Murray: The sale of our interest in livestock stable reinforces the balance sheet and ensures continued financial flexibility ahead of the quest start and TSMC closings this year.

Patrick Robert Murray: As I noted last quarter and emphasize that our focus remains grounded in capital prudency.

Gregory Lorne Ebel: Our value proposition has always been underpinned by a rateable growing dividend. We've distributed $34 billion to our shareholders over the past five years alone, and looking ahead, we expect that figure to grow to roughly $40 billion over the next five years while maintaining our 60-70% DCF payout range. We're able to achieve that thanks to the visibility and duration of our multi-year growth outlook. We plan to spend $6 to $7 billion per year on our secured growth program, and while we have additional capacity, we don't need to spend it to achieve our growth targets. With that, I'll pass it back to Greg to wrap things up. Well, thanks very much, Pat.

Patrick Robert Murray: Value proposition has always been underpinned by our ratable growing dividend.

Patrick Robert Murray: Distributed $34 billion to our shareholders over the past five years alone and looking ahead, we expect that figure to grow to roughly $40 billion over the next five years, while maintaining our 60% to 70% DCF payout range.

Patrick Robert Murray: To achieve that thanks for the visibility and duration of our multi year growth outlook.

Patrick Robert Murray: We plan to spend $6 billion to $7 billion per year on our secured growth program and while we have additional capacity, we don't need to spend it to achieve our growth targets with that I'll pass it back to Greg to wrap things up.

Unknown Executive: That's a really nice summary of a very successful first quarter to start the year and of the great progress we've made across all of our business. The decisions we're making today are setting the stage for Enbridge to continue growing its dividend and sustainably returning capital to its shareholders for years to come. Over the last 20 years, we've generated an industry-leading average TSR CAGR of 12% through a balance of capital appreciation and dividend growth.

Greg: Well, thanks, very much Pat that's a really nice summary of a very successful first quarter to start the year and of the great progress we've made across all of our businesses.

Decisions, we're making today are setting the stage for Enbridge to continue growing our dividend and sustainably returning capital to our shareholders for years to come over the last 20 years, we've generated an industry, leading average GSR CAGR of 12% through a balance of capital appreciation and dividend growth.

Unknown Executive: Our value drivers are unchanged, unrivaled, and quite unique in the midstream sector. We have diversified utility-like cash flows and a strong balance sheet that has supported 29 years of dividend increases, and we maintain an attractive risk-adjusted growth outlook. We benefit from lower carbon optionality throughout our conventional business, which will support an affordable and responsibly paced global energy transition. Our strong value fundamentals are expected to continue delivering attractive shareholder returns, making Enbridge your first choice investment opportunity. Thank you all, and now we'll open the line for questions. Please stand by while we prepare for the Q&A session.

Value drivers are unchanged unrivaled and quite unique in the midstream sector. We have diversified utility like cash flows and a strong balance sheet that has supported 29 years of dividend increases and we maintain an attractive risk adjusted growth outlook, we benefit from lower carbon optionality throughout or conventional <unk>.

Greg: <unk>, which will support affordable and responsibly paced global energy transition our strong value fundamentals are expected to continue delivering attractive shareholder returns, making enbridge your first choice investment opportunity.

Speaker Change: Thank you and now let's open the line for questions.

Speaker Change: Please standby, while we prepare for the Q&A session.

Unknown Executive: If you would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Your first question comes from the line of Robert Catellier from CIBC. Your line is open.

Speaker Change: If you would like to ask a question. Please press star one on your telephone keypad to raise your hand and joined the queue. If you would like to withdraw your question simply press Star. One again, if you are called upon.

Speaker Change: To ask your question and our listening via loud speaker on your advice. Please pickup your handset and ensure that your phone is not on mute when asking your question.

Speaker Change: Your first question comes from the line of Robert <unk> from CIBC. Your line is open.

Speaker Change: Sure.

Gregory Lorne Ebel: Hey, good morning, everyone. I wondered if you could give us your updated view on the financial markets and asset sale markets. And, you know, how you're weighing capital recycling versus other options for funding utility acquisitions, notably the ATM.

Robert: Hey, good morning, everyone I wondered if you could give us your updated view on financial markets and adds until markets.

Robert: And.

Robert: How are you weighing.

Robert: Capital recycling versus other options for funding of utility acquisitions, notably.

Robert: The ATM.

Gregory Lorne Ebel: Yeah, Robert, maybe I'll start, and maybe Pat will want to add here. Look, I think you've seen lots of asset sales. People have adjusted to higher interest rates, and you can see what I would argue is a more robust market today for asset sales. And, as you know, we've done well in excess of $10 billion in asset sales since 2018. So that's always on the table.

Speaker Change: Yes, Robert maybe I'll start and maybe Pat will want to add here look I think you've seen lots of asset sales.

Speaker Change: <unk> adjusted to higher interest rates.

Robert: And you can see what I would argue a more robust market today for asset sales and as you know we've done.

Patrick Robert Murray: Well excess of $10 billion in asset sales since 2018, so thats always on the table I think we want to make sure and I think what we're doing is making sure that we've got maximum flexibility maximum optionality and preparedness to complete the last 10% or so.

Gregory Lorne Ebel: I think what we want to make sure, and I think what we're doing, is making sure that we've got maximum flexibility, maximum optionality, and preparedness to complete the last 10% or so of the financing. So no decisions have been made, but obviously, everything is on the table, and we think that probably gives us the best opportunity given the markets, given we're not exactly sure when the transactions are going to close. So all that being said, I'm highly confident we'll get that all closed.

Patrick Robert Murray: Of the financing so no.

Patrick Robert Murray: No decisions have been made but obviously everything on the table and we think that probably gives us the best opportunity given the markets.

Patrick Robert Murray: Given we're not exactly sure when the transactions are going to close so.

Patrick Robert Murray: All that being said highly confident we will get that all close in fact, I guess, if you had regulatory approval today you could actually just closed small right now too. So I think we're set up with everything still on the table maximum flexibility and thats going to create the best opportunity to maximize value.

Gregory Lorne Ebel: In fact, I guess if you had regulatory approval today, you could actually just close them all right now too. So I think we're set up with everything still on the table, maximum flexibility, and that's going to create the best opportunity to maximize value.

Unknown Executive: Okay, my next question is, just wondering if you could update us on how the US Gulf Coast crude oil export market is evolving. Specifically, you know, in the short to medium term, we have a number of impacts, refinery maintenance in Europe, less Mexican exports, and the indirect impacts from the startup of TMX.

Speaker Change: Okay. My next question just.

Speaker Change: I'm wondering if you could update us on how the U S Gulf Coast crude.

Speaker Change: Export market is evolving.

Speaker Change: Specifically.

Speaker Change: The short to medium term here, we have a number of impacts refinery maintenance in Europe, less Mexican exports and the indirect impacts from the startup of Pemex.

Colin Kenneth Gruending: Yeah, sure, Robert and Colin here. So yeah, you sound like you're on top of it. It's It's still pretty robust. Certainly, the light export market is on, you can see that permeant supplies are up, and we're seeing strong throughputs off the dock, and likewise, the heavy export market, or even just maybe even further upstream a little bit just heavy into the US Gulf market itself is still robust. Like you said, we're seeing Mexican oil staying home, and it's just creating more room for the Canadian heavy barrel, which is a strategy we've worked on for a long time, and we're going to bring EHOT here soon to help our plumbing in that area. So we're watching that closely. It sounds like you are too.

Colin Kenneth Gruending: Yeah, sure, Robert and Colin.

Speaker Change: Yeah sure Robert calling here so it.

Speaker Change: Sounds like Youre on top of it.

Speaker Change: Okay.

Speaker Change: <unk>.

Speaker Change: Yes.

Speaker Change: So a pretty robust certainly the delight export market as you can see that Permian supplies up and we're seeing strong throughput off the dock.

Speaker Change: And likewise on the heavy export market.

Speaker Change: And just maybe even further upstream a little bit just heavy into the U S Gulf market itself.

Speaker Change: It's still robust like you said, we're seeing Mexican oil staying home and it's just creating more room for the Canadian heavy barrel, which.

Speaker Change: We're a strategy we've worked on for a long time, and we're going to bring on hot here soon to help our plumbing in that area. So.

Colin Kenneth Gruending: It remains pretty robust,

Speaker Change: We're watching that closely it sounds like you are too it remains pretty robust.

Speaker Change: Okay. Thanks, everyone.

Speaker Change: Thanks Robert.

Unknown Executive: Your next question comes from the line of Rob Hope from Scotiabank. Your line is open.

Speaker Change: Your next question comes from the line of Rob Hope from Scotiabank. Your line is open.

Unknown Executive: Morning, everyone. One of the follow-ups on the commentary in the prepared remarks on increasing gas demand related to data centers, how large of an opportunity would this be for your gas pipeline systems and specifically kind of when do you think you could start to see some expansions being required?

Robert Hope: Good morning, everyone wanted to follow up on morning.

Robert Hope: I wanted to follow up on the commentary in the prepared remarks on increasing gas demand related to data centers.

Robert Hope: How large of an opportunity would this be for your gas pipeline systems, and specifically kind of when do you think you can start to see some expansions being required.

Gregory Lorne Ebel: Sure. Well, you know what? I'll turn it over to Cynthia.

Speaker Change: Sure well you know what I'll turn it over to Cynthia I guess lots of numbers out there for sure Robert and.

Cynthia Lynn Hansen: I guess, you know, lots of numbers out there for sure, Robert, and lots of predictions. But I think it's early, to be quite honest. But in any event, it's going to be positive from a power and gas demand perspective. So whether it's, you know, on the power side, a half to one and a half percent increase through 2030, or, you know, I've seen numbers from 5 BCF up to 16 BCF, I think we're well situated. There's not just the pipelines, but I'll turn it over to Cynthia, maybe last Michele and Matthew to make a comment too.

Cynthia Lynn Hansen: Lots of predictions I think it's early to be quite honest.

Cynthia Lynn Hansen: But in any event, it's going to be positive from a power and gas demand perspective, so whether it's on the power side half to one 5% increase through 2030 or I've seen numbers from five Bcf up to 16 Bcf I think for well situated there is that just the pipelines, but I'll turn it over to Cynthia maybe last Michelle in and Matthew.

Speaker Change: They come to you.

Speaker Change: Thanks.

Cynthia Lynn Hansen: Rob, we are excited by this opportunity, obviously, to help build out the supporting infrastructure for the natural gas generation to support AI data centers. Our GTM assets are really well located. We're within 50 miles of 45% of all the natural gas power generation in North America, so we are going to be in a position to build that out. As you look at the timeline, just like Greg said, there'll be some opportunities in the near term, just depending on what your capacity and availability is and where you are located. And so we look forward to that. And in the longer term, it seems to be really positive.

Speaker Change: Rob.

Cynthia Lynn Hansen: We are excited by this opportunity obviously to help build out the.

Cynthia Lynn Hansen: Supporting infrastructure for for the natural gas generation to support AI data centers.

Cynthia Lynn Hansen: <unk> assets are really well located with.

Cynthia Lynn Hansen: 50 miles up 45% of all the natural gas power generation in North America.

So we are going to be in a position to build that out.

Cynthia Lynn Hansen: As you look to timeline, just like Greg said there'll be some opportunities in the near term just depending on what you.

Cynthia Lynn Hansen: <unk> and availability is in location.

Cynthia Lynn Hansen: So we look forward to that and then the longer term it seems to be really positive Michelle.

Michele E. Harradence: Michelle

Michele E. Harradence: Sure. You know, Rob, what we're finding as we're speaking to customers about data centers is they're typically looking for reliable and affordable electricity in locally supportive jurisdictions. So the jurisdictions we currently are certainly the ones we will operate in, whether that's Utah, North Carolina, or Ohio, they offer that really very much hand in hand with gas fire generation. So to the degree that there is data growth in those regions, we certainly expect there will be data center growth in those regions will certainly play a role.

Michelle: Sure Rob.

Michelle: Rob.

Michelle: We're finding as we're speaking to customers about data centers as they are typically looking for reliable and affordable electricity in locally supportive jurisdiction. So the jurisdictions. We currently are certainly the ones, we will operate in whether that Utah, and North Carolina or Ohio. They offer that really very much hand in hand with gas fired generation.

Michelle: That there is data growth in those regions. We certainly expect there will be data center growth in those regions will certainly play a role.

Matthew A. Akman: Yeah, hi, it's Matthew. Just quickly on renewables, demand for renewables is already very strong, and I think, you know, the data center stuff just enhances that large tech companies are really our kind of customers. And I think we're their kind of developer; we've got a reliable offering we can deliver. We've got interconnection agreements ready to go, and the capabilities. So just adds another tailwind for our renewable Yeah, good setup. And we didn't mention storage, but you know, given people want to jump on stuff. So obviously, as you know, we've got 600 bees or so in storage across the continent. That's going to be powerful.

Michelle: Yes, hi, its Matthew just quickly on renewables demand for for renewables is already very strong and I think.

Matthew A. Akman: The data center stuff, just enhances that large tech companies.

Matthew A. Akman: Really our kind of customers and I think where they're kind of developer we've got a reliable offering we can deliver.

Matthew A. Akman: We've got interconnection agreements ready to go in and the capabilities. So just adds another tailwind for our renewable business.

Matthew A. Akman: Good setup, and we Didnt mentioned storage, but given people will want to jump on SAP. So obviously as you know, we get 600 bps or so of storage across the continent, that's going to be powerful too.

Matthew A. Akman: Okay.

Unknown Executive: All right, I appreciate that. And then maybe just switching over to the heavy and crude oil system. You know, interesting, we're talking about expansions as Trans Mountain is ramping up. But even still, it does seem like there's an increasing pull of heavy traffic to the Gulf Coast. So how have discussions with shippers formed regarding kind of the next phase of expansions of heavy capacity out of Alberta? And you know, what do you think the pacing or timing will be of your phased expansions on the mainline? Sure. Hey, Robert.

Speaker Change: Alright, I appreciate that and then maybe just switching over the the heavy in the crude oil system interesting, we're talking about expansion of those trends.

Speaker Change: It's ramping up.

Speaker Change: Even still it does seem like there is an increasing pool of heavy to the Gulf coast. So.

Speaker Change: How have discussions with shippers.

Speaker Change: Fourth regarding kind of the next phase of expansions of heavy capacity out of.

Speaker Change: Out of Alberta, and what do you think the pacing or timing will be at your phased expansions of the mainline.

Colin Kenneth Gruending: Yeah. So, indeed, now that we've got the multi-year [inaudible] Currently, and we've got some offerings in front of them that are relatively capital efficient, executable, permitting wise, with a view to keeping some open egress here through the whole piece. So, you know, prices are higher.

Colin Kenneth Gruending: Sure. Hey, Robert, and Colin.

Speaker Change: Sure Hey, Robert Yes, so indeed now that we've got the.

Speaker Change: Multiyear.

Robert Hope: Tolling deal done, it's kind of cleared the way and the.

Robert Hope: Table for discussions with shippers on the next series of things to do in the job jar expanding.

The system.

Robert Hope: Or even just continuing to optimize the system, which we've been doing over and over again are on the table right. Now we are in discussions with shippers.

Robert Hope: Currently and we've got some offerings in front of them that are relatively capital efficient.

Robert Hope: Executable permitting wise with a view to keeping some open egress here through the whole piece.

Robert Hope: So that.

Robert Hope: Prices are are higher so that's the that's the objective timing wise.

Colin Kenneth Gruending: So that's the objective. Timing-wise, you're going to see optimizations continue from us serially here, month to month, quarter to quarter. And then, you know, chunkier expansions, you know, in the 100,000 a day category in the next two years, which would pair up pretty well with. I think the forecast, we've been, Conveying around the system refilling within that period of time, so that's the current discussion and plan, which is consistent with what we've had for the last year or two.

Youre going to see optimizations continue from us serially here, a month to month quarter to quarter and then chunk.

Robert Hope: <unk> expansions and the 100000 a day category.

Robert Hope: And the next two years, which would pair up pretty well with I think the forecast we had been.

Robert Hope: Conveying around Sis.

Robert Hope: System refilling within that period of time, so that's the that's.

Robert Hope: That's the current discussion and plan, which is consistent with what we've had for the last year or two.

Speaker Change: Thank you.

Speaker Change: Thank you.

Unknown Executive: Your next question comes from the line of Benjamin Pham from BMO. Your line is open.

Speaker Change: Our next question comes from the line of Benjamin Pham from BMO. Your line is open.

Unknown Executive: Hi, thanks. Good morning.

Benjamin Pham: Hi, Thanks, good morning.

Colin Kenneth Gruending: On the recent Cup of Power, they shelved their CCS project. How does that impact you or in any way affect your Wabman Hub project?

Benjamin Pham: On the recent copper powered shell, they're the Ccs projects.

Benjamin Pham: How does that impact you or.

Benjamin Pham: The way for your Washington.

Benjamin Pham: Project.

Colin Kenneth Gruending: Ben, it's Colin. I can take that. Yeah, so that's disappointing. And I think, as Capital Power noted, the project's technically viable, but just economically unviable for a number of reasons. Notwithstanding, we've got a kind of a sister project at the Waldman Hub with Heidelberg Materials for their cement plant in northwest Edmonton. So that project has garnered some more financial support, and we'll be working with them to consider FID later this year.

Benjamin Pham: Ben It's Colin I can take that yeah. So thats.

Ben: That's disappointing.

Ben: And I think as capital power noted the projects technically viable, but economically unviable for it from it for a number of reasons.

Ben: Including.

Colin: Governmental support for it.

Colin: Notwithstanding we've got a a kind.

Colin: Kind of a sister project at <unk>.

Colin: Hub with Heidelberg materials for their cement plant in northwest Edmonton.

Colin: So that project has garnered some more financial support and we'll be working with with them too.

Colin Kenneth Gruending: So Duabin Open Access Hub will generally continue. We've incurred some very modest capital costs preparing for Capitol Power, but we have a Reimbursement Agreement with them, so it will be recovered. So that's that's our update on that hub. But more broadly, we remain keenly interested in growing a carbon capture and transportation and sequestered business. Across North America, we've got a couple other projects under development, as you know, in the States, namely, Texas. So that's that's a broad update.

Colin: Consider <unk>.

Colin: Later later this year.

Colin: So robin open access hub.

Colin: We will generally continue.

Colin: We've incurred some very modest capital cost and preparing for capital power, but we have a reimbursement.

Colin: Our reimbursement agreement with them so it's.

Colin: Yes.

Colin: That'd be recovered so that's our update on that but more broadly we remain keenly interested in growing our carbon capture and transportation and sequester business.

Colin: Across North America, and we've got a couple of other projects under development as you know in the states, namely, namely, Texas. So.

Gregory Lorne Ebel: That's that's a broad update. You know, Ben, it's an interesting one because I think it's a good example of, even in some of these new technologies where there appears to be lots of government support, they're going to be highly competitive. All right, as Colin said, the Heidelberg project looks quite good. And then, you know, you're going to compare jurisdictions. We sure do, and I think capital power sounds like they are, too. This is the NPV of tax benefits in Canada versus the U.S. for CCUS. It's just more attractive down south.

Colin: That's a broad update Ben it's an interesting one because I think it's a good example of.

Colin: Even in some of these new technologies, where there appears to be lots of government support there going to be highly competitive alright, as Colin said, the Heidelberg project looks quite good.

Colin: And then you know you're going to compare jurisdictions, we sure do and I think capital power sounds like they are too and.

Colin: This is the NPV of tax benefits in the Canada, Canada versus the U S for <unk>, it's just more attractive down south so.

Gregory Lorne Ebel: So, you know, we're really careful how we deal with this. As Colin said, we've got a reimbursement agreement there, but we're going to keep pursuing these. And I think that's like a lot of other things. There'll probably be fewer of these than more than, obviously, the proposals that are out there. We're going to do this really carefully, and it sounds like they are as well.

Colin: We're real careful how we do with this as Colin said, we've got reimbursement agreement there, but we're going to keep pursuing Nathan I think.

Colin: That's like a lot of other things will probably fewer of these than more than obviously the proposals that are out there we're going to do this really disciplined and it sounds like they are as well.

Speaker Change: Okay. Thanks for that.

Colin Kenneth Gruending: Okay, thanks for that. And maybe on Inglis' side, just going back to that and the strong volumes, the windows that you're talking about, what do you think your expectation is in terms of capital deployment each year, going forward, and maybe just an update on specific developments like solar generation, ammonia export, anything that's been notable in the last quarter or two.

Speaker Change: And then.

English: And maybe on English side, just going back to that in the strong volumes the windows that you're talking about.

English: What do you think your expectation is in terms of capital deployment each here.

Speaker Change: Going forward in <unk>.

Speaker Change: And then maybe just an update on specific developments axon, where generation ammoniac sport.

Speaker Change: Anything thats been notable in Alaska last quarter or two.

Colin Kenneth Gruending: Sure, Ben. So yeah, I mean, consider Ingleside as kind of a Swiss Army knife, multi-product, ambition. Currently, it's just crude, but over time, all the advantages that Support Droods, Advantage Off That Dock are portable to other products, Purity products. Blue Ammonia, which we're developing. So we've announced a couple of expansions at Ingleside now, right, just for storage, and we've got headroom there with both permits for storage and docks. As you know, we acquired or announced we have to close that yet later this year, but the docks next door, which are gonna basically double the windows, and we can immediately optimize the loading of smaller vessels at the neighboring docks and reserve our legacy docks for the LCCs. And by the way, we've got.

Speaker Change: Sure Ben So yeah, I think they considered at Ingleside is that kind of a Swiss army knife multi product ambition currently just crude but over time all of the advantages that.

Speaker Change: Support crudes advantage off that dock, our portable to other products purity products.

Speaker Change: Hello, ammonia, which we are developing so.

Speaker Change: We have it.

Speaker Change: Just a couple of expansions at Ingleside now alright, this for storage and we've got headroom, there with boats permitting for storage and docs.

Speaker Change: As you know we acquired the <unk>.

Speaker Change: Now so we have to close that yet later this year, but the docs next door, which youre going to basically double the windows and we can immediately optimize the loading of smaller vessels at the neighboring docs and reserve our legacy docs for Vlccs and by the way we have.

Colin Kenneth Gruending: We've deepened our dock there to 54 feet now. So we can fully, not fully load, but 1.6 million barrels a day of two million barrels at BLCC. So that's pretty efficient capital deployment. To your question, over time, we'd like to... You know, the FID on that would be over a year away yet, but that would be a chunkier capital deployment. You know, the commercial models we're looking at would be utility-like and have strong, strong margins over our hurdle rate. So, hopefully, that gets to your question.

Speaker Change: <unk>.

Speaker Change: Deepened our doctor to 54 feet now so we can fully not fully load, but one 6 million barrels a day up 2 million barrel VLCC. So.

Speaker Change: That's pretty efficient capital deployment.

To your question over time, we'd like to.

Speaker Change: Two copy paste that model, if you like to other other products.

Speaker Change: We're still looking at the Blue ammonia.

Speaker Change: Project with with Euro and.

Speaker Change: That would be on that would be over a year away yet but that.

Speaker Change: That'd be a chunkier.

Speaker Change: Capital deployment, but.

Speaker Change: The commercial models, we're looking at would be.

Speaker Change: Utility like and.

Speaker Change: Strong strong.

Speaker Change: Margins over our hurdle rate so.

Speaker Change: Hopefully that gets to your question.

Colin Kenneth Gruending: That does sound calm. Okay, thank you.

Speaker Change: It doesn't call okay. Thank you.

Speaker Change: Thanks Pat.

Unknown Executive: Your next question comes from a line of Theresa Chen from Barclays. Your line is open.

Speaker Change: Your next question comes from the line of Theresa Chen from Barclays. Your line is open.

Cynthia Lynn Hansen: Morning, thank you for taking my questions. First, on the gas transmission side, related to the Whistler JV acquisition, just curious how you think about, you know, optimizing or how this optimizes your portfolio over time. And related to the mention of organic growth opportunities on this, you know, clearly we're seeing very tight Permian egress right now and the need for additional capacity out of Oahu. Do you view additional expansion opportunities on Whistler as likely, or would you be willing to take part of another greenfield egress solution?

Theresa Chen: Good morning, Thank you for taking my questions.

Theresa Chen: First on the gas transmission side.

Theresa Chen: To the <unk> JV acquisition.

Theresa Chen: Curious on how you think about optimizing our how this optimizing your portfolio over time and.

And related to the mentioned nonorganic growth opportunities.

Theresa Chen: This clearly we are seeing very tight Permian egress, right now and the need for additional capacity at the Baja do you view on additional expansion opportunities on Whistler with likely or would you be willing to take part as had another greenfield egress solution.

Cynthia Lynn Hansen: Yeah, Theresa, Cynthia, thanks for that question. You know, we're really excited about this opportunity with this joint venture. It is, as you mentioned, very strategic. The Permian has an opportunity to grow to support all the activity on the US Gulf Coast, including the LNG expansion and the terminals there. You know, we see right now that, obviously, Rio Bravo, with our contribution, will have a new buildup to support that LNG. So that'll eventually have an opportunity to take incremental gas out of the Permian.

Speaker Change: Yeah Theresa.

Speaker Change: Cynthia Thanks for that question, we're really excited about this opportunity with the strength and share. It is as you mentioned very strategic Permian has an opportunity to grow to support all the activity in the U S Gulf coast, including that the LNG.

Speaker Change: Terminals there.

Speaker Change: We see a.

Right now, obviously Rio Bravo with our contribution there will be and you build out to support that the LNG.

Speaker Change: So that will eventually have an opportunity to take incremental.

Speaker Change: Gas out of the Permian.

Cynthia Lynn Hansen: Now, there will be opportunities, both brownfield and greenfield. And so we'll continue to look at that. And we'll look at We think we'll be able to get attractive returns and help extend that footprint even more, but again, it'll have to meet our threshold, and that's further out, but yeah, it's a great opportunity for us to continue to build out and enhance what we believe is our super system already by having that incremental connectivity. And now, of course, with the Whistler, JV will be tied to all of the existing LNG facilities because we get that connection to Schneer's Corpus Christi LNG facility.

Speaker Change: Now there will be opportunities, both brownfield and greenfield.

And so we'll continue to look at that and.

We'll look at.

Speaker Change: We think we'll be able to get attractive returns and help extend that footprint, even more but again it will have to meet our threshold and that's further out but yes, it's a great opportunity for us to continue to build out and enhance what we believe is our super system already by having that incremental connectivity and now of course with the waste.

Speaker Change: Sure.

Speaker Change: JV will be tied to all.

Speaker Change: The existing LNG facilities, because we get that connection to Cheniere Corpus Christi LNG facility, Yes, I guess, we'd also look at opportunities outside the JV as well as they come along rate areas.

Gregory Lorne Ebel: Yeah, I guess we'd also look at opportunities outside the JV as well, if they come along, go to areas like Port Arthur and stuff like that. So I think we're open to any of it. I think it actually creates good optionality down into the Corpus area, etc., with the JV. And then we'll continue to look at other opportunities, because frankly, we haven't been as deep into the Permian as some other players.

Areas like Port Arthur and stuff like that so I think we're open to any of it I think it actually creates good optionality down into the corpus area et cetera, with the JV and then we're continuing to look at other opportunities because frankly, we haven't been as deep into the Permian as some other players and we do have as Greg noted in open season right now.

Cynthia Lynn Hansen: Yeah, and we do have, as Greg noted, an open season right now from Permian to Port Arthur that's going to close on May 20th, and we have a lot of interest. So it's a great opportunity to support the development there.

Speaker Change: And Deb Deibert your fighter.

Deb Deibert: That's going to close on May 20th then we have a lot of interest.

Deb Deibert: It's a great opportunity to support the development there.

Colin Kenneth Gruending: Got it. And then maybe turning back to the liquid segment, I wanted to follow up on the line of questioning related to TMX ramping up and how everything's tracking within your internal budget. As we look to the second quarter, right, so you have the line fill happening right now, and then you have seasonal producer maintenance upstream. Just quarter over quarter, given the strong earnings, not just on your mainline system in the first quarter, but also Express Plus and the systems south of Mainline.

Deb Deibert: Got it and then maybe turning back to the liquid segment.

Speaker Change: I wanted to follow up on the line of questioning related to <unk> ramping up and how the things tracking within your internal budget as we look to second quarter right. So you had the line fill happening right now and then you have seasonal producer maintenance upstream just quarter over quarter given to.

Strong earnings not just on your mainline system in the first quarter, but also express class M D.

Speaker Change: System South of mainline would we expect to see some alleviation.

Colin Kenneth Gruending: Would we expect to see some alleviation or a decrease in volumes from those systems, even as mainline remains a portion just at a lower level? How should we think about the evolution of that through the year?

Speaker Change: Or a decrease in volumes from dosing, even as my language.

Speaker Change: <unk> remains a portion just at a lower level, how should we think about the evolution of that through the year.

Colin Kenneth Gruending: Hey, Theresa, and Colin. Yeah, I guess we'd normally reserve till late June to update you on volumes for Q2, but maybe a quick sneak peak here. So the line feels, you know, complete, I think, on TMX, it's flowing. From what we can tell, it looks like that was all line-filled from inventory. You know, elevated inventories anticipated going into it, so we've not really seen a blip on our system here through April or May.

Speaker Change: <unk> III is to call and yes, I guess, we would normally reserve to Ola.

Speaker Change: Late June to update you on volumes for Q2, but maybe sneak a peek here.

Speaker Change: So line feels complete I think on <unk>, it's flowing.

Speaker Change: From what we can tell it looks like that was all landfills from inventory.

Elevated inventories anticipated going into it so.

Speaker Change: We've not really seen a blip on our system here.

Speaker Change: Through April or May.

Colin Kenneth Gruending: And likewise, our downstream pipes remain pretty robust. So I think the pieces we've been offering here are unfolding like we thought they would. So, I'll stop short of giving you volume numbers, but that's a general.

Speaker Change: And likewise, our downstream pipes remain pretty robust so.

Speaker Change: I think.

Speaker Change: The the thesis we have been.

Speaker Change: Offering here is unfolding.

Speaker Change: We thought it would so.

Speaker Change: I'll stop short of giving you a volume numbers, but as a general.

Trend.

Speaker Change: Thank you.

Speaker Change: Thank you.

Unknown Executive: Your next question comes from the line of Linda Ezergailis from TD Cowen. Your line is open.

Speaker Change: Your next question comes from the line of Linda <unk> from TD Cowen Your line is open.

Gregory Lorne Ebel: Thank you. As we see economic demand increasing from I'm wondering, when you look out through your system and see any pinch points along the transportation value chain, how important is it for your customers, whether they be producers or end-users like utilities or, in the future, data centers, to have full-path solutions from you? On the gas side, you don't have upstream gathering, so I'm wondering if that might be an extension of your value chain consideration as we see more complexity in terms of these molecules traversing through the system. Similarly, on the liquid side, are your shippers sophisticated enough to navigate all the steps in the value chain, or are you seeing increasing demand and interest in bundled services, more full-path?

Linda: Thank you I'm wondering as we see economic demand increasing from.

Linda: Data centers, and onshoring of industrial demand et cetera, and the supply response working as hard as it can to meet that I'm wondering when you look.

Linda: Through your system and see any pinch points, along the transportation value chain, how important is it for your customers.

Linda: Whether it be producers or end users like utilities are in the future data centers to have full path solutions from you.

Linda: On the gas side.

Linda: You don't have.

Linda: Upstream gathering so I'm wondering if that might be an extension of your value chain consideration as we see kind of more complexity in terms of these molecules traversing through the system and then similarly on the liquid side.

Linda: Are your shippers sophisticated enough to navigate all the steps in the value chain or are you seeing increasingly.

Linda: Demand and interest in bundled services full path morpho path.

Gregory Lorne Ebel: Linda, maybe I'll start and then maybe Colin and Cynthia want to get into you. Look, I mean, we're seeing incredible utilization of the assets, right? So, Stephen, take a place like British Columbia, like, we've just seen unbelievable elements of peak days that have gone through there. We saw on the West Coast South system, almost 600 Bs of gas in 2023, which is 6% more than a year ago. And 99 of our top 100 days on TCEV have occurred since November 22.

Linda: So Linda maybe I'll start and then maybe a colon and sit there on a time and see you look I mean, we're seeing incredible utilization of the assets alright, So Stephen take a place like British Columbia.

Linda: We've just seen unbelievable elements of peak days that have gone through there.

Linda: The West Coast.

Linda: System, almost 600 BS of gas in 2023, which is 6% more than a year ago and 99 of our top 100 days on T cells have occurred since November 'twenty. Two so people are looking for that path. As you know we're looking to develop that Theyre also look into storage as you know we bought Aitken Creek.

Gregory Lorne Ebel: So, people are looking for that path, and as you know, we're looking to develop that. They're also looking to storage; as you know, we've bought Aitkin Creek. You know, we're not in the gathering side in a big way now, but if we could do that in a way that's consistent with our low-risk model, that's something we would definitely look at.

Linda: We're not in the gathering side in a big way now, but if we could do that in a way that's consistent with our low risk model. That's something we would definitely look at and then yeah on the liquid side I mean, not only our customers plenty sophisticated to look at this I think we're doing a great job with the customer team and Collins group are figuring out ways that we can bring.

Cynthia Lynn Hansen: And then, yeah, on the liquid side, I mean, not only are our customers pretty sophisticated to look at this, but I think we're doing a great job with the customer team and Colin's group of figuring out ways that we can bring innovative solutions to them, full path, right? So, and you see that with the number of our, whether it's open seasons in the Gulf Coast or our efforts on Flanagan and et cetera, and obviously the Mainline Toll Agreement.

Linda: Innovative solutions to them full path right, so and you see that with the number of whether its open seasons in the Gulf coast or our efforts.

Linda: On flat again, and et cetera, and obviously the mainline toll agreement. So yes, I think on all fronts, where we see they want a full path and we see they want lots of Optionality and I would I would even include the utilities now in that regard too and look at a place like <unk>.

Cynthia Lynn Hansen: So, yeah, I think on all fronts, we see they want a full path, and we see they want lots of optionality. And I would even include the utilities now in that regard, too, and look at a place like Ohio, where we've got all those assets available, whether it's renewable, gas, liquids, and you've got data center activity and stuff. So, I think we've got the full suite of tools and that's exactly what we're trying to be able to do to benefit them and ourselves and our investors, obviously. Cynthia, Colin?

Linda: Where we've got all of those assets available, whether it's renewable gas liquids and you've got data center activity and stuff. So I think we've got the full suite of tools and that's exactly what we're trying to be able to do to benefit them and ourselves and our investors, obviously don't simply a collar.

Cynthia Lynn Hansen: I would just offer, Glenda, your observation is right, value chains are getting longer. Right, we can see that with TMX, we see that with heavy down in the Gulf. So customers are sophisticated, for sure. But there is, you know, that last mile element that is in, call it, increasingly foreign territory, where we can help navigate that with facilities or integrated tools. Think about something like EHOD or even something like the seaway docks down in South Texas. Those are incrementally kind of new to the equation over the last couple years.

Speaker Change: I was just.

Speaker Change: Linda your observations right value chains are getting longer.

Speaker Change: All right, we can see that with <unk>, we see that with heavy down at the Gulf. So customers are sophisticated for sure. But there are there are you know that last mile element that is in let's.

Speaker Change: Call it increasingly foreign territory, where we can help navigate that with the facilities or integrated tools think about something like E hot or even something like the seaway docks.

Speaker Change: In South, Texas, those are incrementally kind of new to the equation over the last couple of years.

Cynthia Lynn Hansen: Yeah, I would just reinforce the point that we're always looking to listen to what our customers want, and having new customers come in the AI data center space, we'll look at how we can evolve that, but they are very sophisticated, and there are other players in that space, marketers, that can help build out that full value chain too. But, you know, our assets are in great locations, and we'll be well positioned to take advantage of that.

Speaker Change: Yeah, I would just reinforce the point that we're always looking to listen to what our customers want and having new customers come in on the AI data Center space will look at how we can evolve that but they are very sophisticated and there are other players in that space marketers that can help build out that full.

Speaker Change: Value chain to you but.

Speaker Change: Our assets are in great locations and will be well positioned to take advantage of that.

Speaker Change: Thank you.

Speaker Change: Okay.

Unknown Executive: Your next question comes from the line of Jeremy Tonet from J.P. Morgan. Your line is open.

Your next question comes from the line of Jeremy Tonet from Jpmorgan. Your line is open.

Jeremy Bryan Tonet: Hi, good morning.

Speaker Change: Morning.

I just wanted to pick up on that last point, I guess a bit more having closed the Ohio LDC acquisition.

Gregory Lorne Ebel: I just wanted to pick up on that last point a bit more. Having closed the Ohio LDC acquisition, I'm just wondering if you could talk a bit more, I guess, on specific opportunities you see for growth in your footprint, such as Nexus running through the state, and it seems like there's some capacity to expand there and, you know, having the LDCs. Just wondering if you could walk us through that a bit more.

Jeremy Bryan Tonet: Wondering if you could talk a bit more I guess on specific opportunities we see for growth in your footprint.

Such as Nexus running through the state and it seems like there is some capacity to expand there and.

Jeremy Bryan Tonet: Having the LDC I was just wondering if you could walk us through that a bit more.

Jeremy Bryan Tonet: Yes.

Gregory Lorne Ebel: Sure, I mean, we're certainly starting to take a look at it. It's been about two months, and it's gone really well.

Speaker Change: Sure I mean, we're certainly starting to take a look at it its been about two months, it's gone really well and highlights.

Gregory Lorne Ebel: And, you know, Ohio is very, very well served with its position in terms of having that access and availability to gas. We also have about 80 BCF of storage just in Ohio, and, of course, access to the Don Hub. So we think there are quite a few opportunities. We're also looking for locations where we have similar customers. So, for example, whether that's steel manufacturing that uses and converts to natural gas in order to reduce its emissions and that sort of thing. So we think there are quite a few opportunities. And the team has been going in pretty deep to look for them.

Speaker Change: It's very very well served with its position in terms of having that access and availability of the gas. We also have about.

Speaker Change: 80 Bcf of storage just in Ohio and of course access to the Dawn hub, we think theres quite a few opportunities. We're also looking for where we have.

Speaker Change: Similar customers. So for example, whether that's steel manufacturing, that's using and converting to natural gas.

Speaker Change: Ordinary to reduce their emissions and that sort of thing. So I think we think there are quite a few opportunities and that the team has been that going in pretty deep to look for them.

Gregory Lorne Ebel: Remember, Jeremy, also that Ohio is interesting and that a lot of the growth there isn't so much about load, although we'll see how that goes. It's a lot about replacement, too, which is structured in the rates and stuff, and there's a lot of capital to go in that regard. So anything incremental on these commercial synergies we're talking about, which I fully expect we'll be able to realize, was not something we had assumed in our acquisition assumptions. So all that will be upside.

Speaker Change: Jeremy also.

Speaker Change: It's interesting in that a lot of the growth there isn't so much about load, although we'll see how that goes and got believer in it. It's a lot about replacement too which is structured in their rates and stuff in there. There's a lot of capital to go in that regard so.

Speaker Change: Anything incremental on these commercial synergies, we're talking which I fully expect we'll be able to realize this was not something we had assumed in our acquisition assumptions. So all of that will be upside.

Speaker Change: Sure.

Gregory Lorne Ebel: Got it. That's very helpful. And as you start to close these LDC acquisitions, just wondering if you could talk a bit more, I guess, on how you think about your LDC portfolio and, if EGI doesn't deliver the mechanisms that are as attractive as maybe some of your other jurisdictions, the potential to wheel capital around to where you see the best opportunity. Yeah.

Speaker Change: Got it that's very helpful and as you start to close these LDC acquisitions, just wondering if you could talk a bit more I guess on how you think about your LDC portfolio and if <unk> doesn't.

Deliberate the mechanisms that are as attractive as maybe some of your other jurisdictions I guess the potential two wheel capital around to where you see the best opportunities.

Gregory Lorne Ebel: Yeah, absolutely. I think it's exactly the same way now with multiple jurisdictions and geographies, the same way we look at gas transmission on the renewable side and on the liquid side. We only have so much capital, A, and B; we want to put that capital to work where it attracts the best returns. I am confident that, particularly with the support from the Ontario government in ensuring that consumers have choice, we'll have our opportunities in Ontario. But you're exactly right.

Yeah, absolutely I think it's exactly the same way now with multiple jurisdictions and geographies. The same way, we look at gas transmission on the renewable side and on the liquid side I know you.

Speaker Change: We only you only have so much capital a and B, we want to put that capital to work where it attracts the best returns.

Speaker Change: I am confident that particularly with the support from the Ontario government in ensuring that consumers have choice that we'll have our opportunities, Ontario, but youre exactly right just given things like population growth and penetration in places like Utah and North Carolina.

Gregory Lorne Ebel: Just given things like population growth and penetration in places like Utah and North Carolina, that's going to be highly competitive. And fortunately, we've got the resources and backing to be able to meet all those challenges. So yeah, that's exactly what we want to be able to do.

Speaker Change: That's going to be highly competitive and Fortunately, we've got the resources backing to be able to meet all of those so yes, that's exactly what we want to be able to do and again, we see it on the liquid side as well.

Gregory Lorne Ebel: And again, we see it on the liquid side as well. We've redeployed a lot of capital into the Gulf Coast, where we weren't. And at the same time, now we've got egress opportunities, which I'm not sure many people were seeing two years ago. But once again, the good old mainline in the Western Canadian Sedimentary Basin is proving to be a robust area. And then, yeah, of course, on the gas transmission side, whether it's on the LNG side, a lot of our capital, I would say, has moved south in the last few years.

Speaker Change: Redeployed a lot of capital into the Gulf Coast, where we Werent and at the same time now we've got egress opportunities, which I'm not sure. Many people were seeing two years ago, but once again the good old mainline in Western Canadian sedimentary basin is proving a robust area and then yes of course on the gas transmission side, whether it's on the on the.

Speaker Change: LNG side, a lot of our capital I would say has moved south in the last few years. Eventually in the northeast is going to have to do something and that will create opportunities too so and obviously in and around the great Lakes I mean, it is the benefit of the portfolios are not all jurisdictions are going to be the most attractive at the time, but when you've got assets in 43 states.

Gregory Lorne Ebel: Eventually, the Northeast is going to have to do something, and that'll create opportunities, too. And obviously, around the Great Lakes, I mean, that is the benefit of the portfolio. Not all jurisdictions are going to be the most attractive at the time. But when you've got assets in 43 states, 8 provinces, and 5 countries, you can make those capital allocation decisions with great discipline.

Speaker Change: The provinces in five countries, you can make those capital allocation decisions with great discipline.

Unknown Executive: Got it. Very helpful. Thank you.

Speaker Change: Got it very helpful. Thank you.

Speaker Change: Thanks, Jeremy.

Unknown Executive: Your next question comes from the line of Robert Kwan from RBC Capital Markets. Your line is open. Thank you.

Your next question comes from the line of Robert Kwan from RBC capital markets. Your line is open.

Unknown Executive: Thank you, good morning. If I can just start on the Dominion funding side of things, and she made a comment that you expect to exit the deal funded well within the four and a half to five times. I'm just wondering if you can square that up. I think at the outset of the deal, you were targeting being, at the midpoint, or even in the lower half of the range, and just in achieving whatever, you know, the target is now. Do you think you can do that within the levers that avoids the usage of the ATM?

Robert Michael Kwan: Thank you good morning.

Robert Michael Kwan: If I can just start.

Robert Michael Kwan: The Dominion funding side of things and you made a comment that you expect to exit the deal funded well within the four five to five times I'm just wondering if you can.

Robert Michael Kwan: Square that up I think at the outset of the deal you were targeting being.

Robert Michael Kwan: At the midpoint or even in the lower half of the range and just didnt achieving whatever the target is now.

Robert Michael Kwan: Do you think you can do that within the leverage that avoids the usage of the ATM.

Patrick Robert Murray: Well, I think Robert, as Greg said,

Speaker Change: Well I think Robert.

Patrick Robert Murray: Greg said we'll look at all the levers that we have to complete what is really just about 10-15% of the overall funding for that acquisition. Really, the goal behind getting some of that or a big chunk of that financing done early in the process was to allow us as much flexibility as we have to kind of do what we need to do throughout 2024 to close off the rest of the funding. I think we're really comfortable that we can fund this in a way that keeps us well within that 4.5 to 5 times, and that's how we'll move forward on the funding.

Speaker Change: Gregg said, we'll look at all the levers that we have to complete what is really just about 10% 15% of the overall funding for that acquisition.

Speaker Change: Really the goal behind getting some of that.

Speaker Change: Chunk of that.

Speaker Change: Financing done early on in the process will allow us as much flexibility as we have to kind of do what we need to do throughout 2024 to close off the rest of the funding so.

Speaker Change: I think we're really comfortable that we can.

Speaker Change: Fund this in a way that maintains our us well within that four five to five times.

Speaker Change: So that's how we'll move forward on the funding.

Speaker Change: Okay.

Unknown Executive: Okay. Thank you.

Speaker Change: Okay.

Speaker Change: As you.

Patrick Robert Murray: Also, just think about finishing on capital allocation and just your approach to thinking about your payout. You know, when you look at your earnings profile, and you've really focused more on DCF payout versus earnings payout, so what are the accounting measures that differ sustainably over the long term? versus your view of the true economics underlying your assets, and specifically, you've got about a billion dollars in maintenance capital expenditure. How much of that is coming from your gas distribution segment? So I think

Speaker Change: Also just finished you on capital allocation and just your approach to thinking about your payout.

When you look at your earnings profile.

Speaker Change: Really focus more on DCF payout versus earnings payout. So just what are the accounting measures that deferred sustainably over the long term.

Speaker Change: Versus your view of the true economics underlying your assets and specifically <unk> got about $1 billion of maintenance Capex, how much of that is coming from the gas distribution segment.

Patrick Robert Murray: So I think about half of the current maintenance capital is coming from the distribution unit. It'll go up a bit as we acquire these three utilities in the U.S. as we go around.

Speaker Change: So I think about half of the current maintenance capital is coming from the distribution.

Speaker Change: It will go up a bit as we acquire these three utilities in the U S. As we go around I think if you're asking kind of what the difference between EPS and DCF as it really is that primarily that difference between depreciation and.

Patrick Robert Murray: I think if you're asking kind of what the difference between EPS and DCF is, it really is primarily the difference between depreciation and what we'd call maintenance capital. But I think the important thing to know about our assets, of course, is that if you maintain your assets appropriately, like we believe we do, their life is almost non-ending. And so, as a result, you can utilize these assets for a very long period of time.

Speaker Change: And what we would call maintenance capital, but I think the important thing to know about with our assets of course is that if you maintain your assets appropriately like we believe we do their life is almost.

Speaker Change: Non ending and so as a result, you can utilize these assets for a very long period of time. So when we look at our payout what we're really looking at is that cash flow generation and how sustainable that is and therefore make kind of dividend increase decision based on that that's why we've been guiding for a number of years now that we're going to grow that dividend in line with how we grow cash flow.

Patrick Robert Murray: So when we look at our payout, what we're really looking at is cash flow generation and how sustainable that is, and therefore, we make kind of dividend increase decisions based on that. That's why we've been guiding for a number of years now that we're going to grow that dividend in line with how we grow cash flows. So I think cash is king in our minds within this business. And so we make sure that that's sustainable, and then we make our dividend recommendations based on that. And our plan would be to continue to grow the dividend in line with cash.

Speaker Change: So I.

Speaker Change: I think cash is king in our mind within this business and so we make sure that that's sustainable.

Speaker Change: And then we make our dividend recommendations based on that and our plan would be to continue to grow the dividend in line with cash flows.

That's great. Thank you.

Unknown Executive: Your next question comes from the line of Praneeth Satish from Wells Fargo. Your line is open.

Speaker Change: Your next question come the line of <unk> Satish from Wells Fargo. Your line is open.

Unknown Executive: Thanks, Good morning. So as it relates to the funding for the LDC acquisitions, you mentioned the levers that you have, but I mean, it looks like Q1 was incrementally strong, so is there a scenario here where you generate more EBITDA than expected this year and therefore get to where you need to be from a leverage perspective and avoid having to sell more assets or ATM issuance, or is it too early to think that? Just trying to think through the [inaudible]

Satish: Thanks, Good morning, so as it relates to the funding for the LDC acquisitions, you mentioned the levers that you have but I mean, it looks like Q1 was incrementally strong. So is there a scenario here, where you generate more EBITDA than expected this year, and therefore get to where you need to be from a leverage perspective and.

Satish: Boyd, having to sell more assets or ATM issuance.

Satish: Is it too early to think that just just trying to think through the dynamics there.

Gregory Lorne Ebel: Yeah, I think it's a little early. I think what we're really trying to do, Praneeth, is make sure we've got that maximum flexibility. Again, you know, we haven't come to any inclusions where we are, you're right, a very strong quarter. As you know, we've got some seasonality in our year, the first quarter and the fourth quarter, always much stronger. I think what we'll do is, as Pat mentioned in his early commentary, I believe that as we get the assets in the door here, and I expect you'll see this as we announce the second quarter, give you a good outlook for the full economics of the transaction, if you will, and what the full year will look like on a fully loaded basis. So I think that'll give you a good view at this time.

Boyd: Yes, I think it's a little early I think what we're really trying to do is Judy this making sure. We've got that maximum flexibility again, we havent come to any inclusions, where you're right very strong quarter.

Boyd: We've got some seasonality in our in our first quarter in the fourth quarter always much stronger.

I think what we'll do is as Pat mentioned in his early.

Boyd: Commentary I believe that as we get.

Boyd: The assets in the door here and I expect Youll see this as we announced second quarter.

Boyd: Gives you a good outlook further for the full economics of the.

Boyd: The transaction, if you will and what the full year will look like on a fully loaded basis. So I think that'll give you a good view at this time, yes, I mean look we came into the year stronger finished stronger than we thought we've started the fourth the first quarter stronger than than a lot of people were looking for and we.

Gregory Lorne Ebel: Yeah, I mean, look, we came into the year stronger, and we finished stronger than we thought. We started the first quarter stronger than a lot of people were looking for, and we felt we would have a strong start. And I believe we've been able to execute both on the funding to date and in getting these assets in the house much quicker than we thought. From the energy fundamentals perspective, I've mentioned some of the things going on on the gas side.

Boyd: Felt we would have a strong start and I believe we've been able to execute both on the funding to date and in getting these assets in the house.

Boyd: Much quicker than we thought from the energy fundamentals perspective, I've mentioned some of the things going on the gas side.

Gregory Lorne Ebel: I think you've got to give it to us that the LP team were bang on about their expectations of what would happen with volumes and stuff, and we're nailing those. So yeah, an optimistic start to the year, but we'll come back and talk to you in August exactly how the full year will look.

Boyd: I think you got to give it to us that the <unk> team had been bang on their expectations of what would happen with volumes and stuff and we're now in those so yes optimistic start to the year, but we will come back and talk to you in August exactly how the full year will look.

Unknown Executive: Okay, that's very helpful. And then on Gray Oak; so good to see the open season started there. Do you think producers are waiting to see the outcome of some of these potential offshore VLCC docks like Spot before committing more barrels to Corpus? And then, I guess, just broadly, how do you think about the risks to your Corpus footprint if one of those offshore projects gets sanctioned? Perhaps how much of your volume flowing into Ingleside is backed by take or pay contracts?

Speaker Change: Okay, that's very helpful.

Speaker Change: And then on Gray oak so.

Speaker Change: See the open season started there do you think producers, though or are waiting to see the outcome of some of these potential offshore.

Speaker Change: The LCC docs like spot before committing more barrels to corpus and then I guess just broadly how do you think about the risks to your corporate footprint, if one of those offshore projects get sanctioned.

Speaker Change: Maybe how much of your volume flowing into Ingleside is is backed by take or pay contracts.

Colin Kenneth Gruending: Hey Praneeth, yeah, thanks for the question. So as you know, the basin's tightening kind of serially here every quarter, as more production comes on and Ow. And by the way, you know, Corpus, I think, is trading at a 30 or 40 cent premium to Houston for distance and loading advantages. So there's a structural advantage to corpus. I think the timing of this open season, and we've sounded customers, is going to fit their pistol.

Speaker Change: Yeah. Thanks for the question so as you know.

Speaker Change: The basin is tightening.

Speaker Change: Kind of serially here every every quarter.

Speaker Change: More production comes on.

Speaker Change: And by the way corporate headache is trading at 30 or 40 premium to Houston for distance.

Speaker Change: Loading advantages. So there is a structural advantage to corpus.

Speaker Change: The timing of this open season, and we have found to customers.

Speaker Change: It's going to fit fit their pistol.

Colin Kenneth Gruending: I think with respect to offshore buoys. You know, I think if that were to go ahead, or one of them went ahead, I think the competitors that would suffer most are the smaller, probably Houston-based, Ship Channel, less economical docks, whereas I think that the corpus docs will remain advantaged. So we see a pretty positive outlook for Grey Oak and, I think you asked a question about take or pays, so Ingleside is take or pay for us entirely, and it's fed by and connected to all five pipes from the Permian, and shippers typically have a TakerPay on that. One of them is Gray Oak, which we own most of.

Speaker Change: I think with your question with respect to offshore boys.

Speaker Change: I think yes.

Speaker Change: That were to go ahead or one of them go ahead I think.

Speaker Change: The competitors that would would suffer most of the smaller probably Houston based chip channel less economic docks.

Whereas I think the corpus stocks will remain advantaged so.

Speaker Change: We see a pretty.

Speaker Change: Positive outlook for Gray oak in.

Colin Kenneth Gruending: So it's basically a TakerPay model for us all the way to the dog. Got it. Thank you. Thank you.

Speaker Change: And Eagle side, I think you asked a question about take or pays.

Speaker Change: Ingleside is take or pay for us entirely and it is fed by.

Speaker Change: And connected to all five types.

Speaker Change: From the Permian.

Speaker Change: And shippers typically have.

Speaker Change: I'll take or pay on on that one of them scale, which which we own most of it.

Speaker Change: It's basically a take or pay model for us all the way to the dog.

Speaker Change: Got it thank you.

Speaker Change: Thank you.

Unknown Executive: Your next question, Colina, is from Zack Everin from TPH. Your line is open. Perfect. Thanks for taking my question, guys. Just to follow up on Gray Oak, when that open season wrapped up, you know, how fast will that volume come up?

Speaker Change: Your next question line of Zack <unk> from T. H. Your line is open.

Zack: Perfect. Thanks for taking my question guys just to follow up on Gray oak when that open season wraps.

How fast will that volume come online.

Unknown Executive: Yeah, thanks. So open season scheduled to close June 28. And bring the capacity on in two tranches, two thirds of it, in the second quarter of 2025, and the other piece of it a number of months later. That's how we see it coming on relatively quickly and at a very capital-efficient, low-multiple. [inaudible] Pretty executable.

Zack: Yeah. Thanks, So open season scheduled to close June 28.

Speaker Change: And we will.

Speaker Change: Bringing the capacity on in two tranches two thirds of it.

Speaker Change: In the second quarter of 2025.

Speaker Change: They're a piece of it.

Speaker Change: A number of months later so.

Speaker Change: That's how we see it coming on relatively quickly.

Speaker Change: It's a very capital efficient low multiple.

Speaker Change: Expansion, perhaps mostly drag reducing agents.

Speaker Change: A couple of tanks.

Speaker Change: Pretty executable.

Speaker Change: Perfect that makes sense and then maybe flipping to the gas side on your Venice project.

Speaker Change: You guys delivered a little bit of gas to the Gator Express pipeline, maybe an update on the timeline for that facility or that project to be online.

Unknown Executive: Yeah, thanks for the question, Zack. It's under construction now, and we're working to get that in by the end of the year.

Speaker Change: Yeah. Thanks for the question Zack.

Speaker Change: It's under construction now and we're working to get that in by the end of the year.

Speaker Change: Perfect Thats, all I had thanks guys.

Speaker Change: Thanks, Eric.

Unknown Executive: Your next question comes from the line of Patrick Kenny from National Bank Financial. Your line is open.

Speaker Change: Your next question comes from the line of Patrick Kenny from National Bank Financial Your line is open.

Unknown Executive: Thank you. Good morning, everybody.

Patrick Kenny: Thank you and good morning, everybody.

Patrick Kenny: Just maybe on your power business on the back of the tenancy rich line expansion.

Patrick Kenny: As you talked about this new demand profile for more reliable base load capacity, whether it's from.

Matthew A. Akman: Just maybe on your power business on the back of the Tennessee Ridgeline expansion. And as you talked about this new demand profile for more reliable baseload capacity, whether it's from data centers or other industrial customers, curious if you might be open to integrating combined cycle or other gas-fired opportunities now within your power segment. Assuming you can maintain your, your long-term, you know, utility-like contracted profile.

Patrick Kenny: From data centers or other industrial customers I'm curious if you might be open to integrating combined cycle or other gas fired opportunities now within your power segment.

Patrick Kenny: Assuming you can maintain your your long term utility like contracted profile.

Matthew A. Akman: Hey, Pat, it's Matthew. Thanks for the question. It's not really on our radar to expand it to gas-fired right now. You know, we think that, you know, you're right, that the data centers and a lot of these customers obviously want reliable 24 / 7 power, but they also want renewable credits. So, you know, gas-fired power will be, I think, a real important part of meeting this increased electricity demand, but so will renewable energy.

Patrick Kenny: Hey, Pat it's Matthew Thanks for the question, it's not really on our radar to expanded a gas fired right now.

Patrick Kenny: We.

Matthew A. Akman: We think that Youre right that the data centers and a lot of these customers, obviously want reliable 24, seven power, but they also want the renewable credits. So youll see gas fired will be I think a real important part.

Matthew A. Akman: And then, you know, the customer will take sort of that combined bundled 24-7 power plus receipts off the grid. So we're very focused on, you know, building out, as we talked about yesterday, our late stage projects that have interconnection agreements. And, you know, we'll work with Gas Fired and obviously with Cynthia's business in order to make sure customers get the product that they need. I think, in the long term, you're right. [inaudible]

Matthew A. Akman: Meeting this increased electricity demand, but but so will renewable and then the customer will take sort of that combined bundled $24 seven power plus Rex.

Matthew A. Akman: The grid. So we're very focused on building out as we talked at our Investor day, our our late stage projects that.

Matthew A. Akman: That have interconnection agreements.

Matthew A. Akman: And we will work with the gas fired and obviously with with Cynthia's business in order to to make sure our customers get the product that they need I think longer term.

Matthew A. Akman: Youre right there is a potential.

Matthew A. Akman: Fourth potential for gas fired but again, we're not really focused on it right now and it would have to.

Matthew A. Akman: It would have to meet our commercial model utility like contract, but again not a focus right now probably the biggest pop youre going to see from power generation on the gas side will be incentives business and remember a lot of gas fired generation is still 50%, 60% utilization could definitely go up.

Gregory Lorne Ebel: Probably the biggest jump we're going to see from power generation on the gas side will be in Cynthia's business. And remember, a lot of gas-fired generation is still, you know, 50, 60 percent utilization. It could definitely go up. A lot of gas-fired generation does not have long-term contracts that could happen. And, you know, because typically it's been a it's been, you know, we haven't had as long of a utilization full year for the pipelines. Now we do.

Matthew A. Akman: A lot of gas fired generation does not have long term contracts that could happen.

Matthew A. Akman: And yes, because typically it's been a it's been.

Matthew A. Akman: We haven't had as long of utilization full year for the pipelines now we do so there is probably going to be a requirement for some of the gas fired generation folks to firm up and that is around storage as well, but yes, we'll keep our eyes open and I don't think there's any doubt.

Gregory Lorne Ebel: So there's probably going to be a requirement for some of the gas-fired generation folks to firm up, and that's on storage as well. But, yeah, we'll keep our eyes open. And I don't think there's any doubt electricity demands are going up.

Matthew A. Akman: Electricity demand is going up.

Gregory Lorne Ebel: Yeah, that's great. And Greg, maybe just to follow up on your comments there about gas storage. You know, just curious in light of the extreme cold out west this quarter and perhaps a view towards more extreme highs and lows in terms of temperatures going forward, if you're seeing incremental demand from customers for more storage capacity and how you're thinking about this opportunity from a, you know, brownfield, greenfield, or perhaps M&A standpoint.

Matthew A. Akman: Yeah, that's great and Greg maybe just to follow up on your comments around gas storage.

Matthew A. Akman: Just curious in light of the extreme cold or west here in the quarter and perhaps a view towards more.

Greg: Extreme highs and lows in terms of temperatures going forward.

Greg: If you are seeing incremental demand from customers for more storage capacity.

Greg: And how youre thinking about this opportunity from a brownfield green.

Greg: Greenfield or perhaps M&A standpoint.

Cynthia Lynn Hansen: Yeah, well, maybe taking your last one first. You know, we did. I think the team was on it and ahead of the game. We picked up assets on the storage side last year, both Trace and Aitkin Creek, and others have stepped in there now. And yeah, we continue to add additional, additional cavern space where we can from a brownfield perspective. I would also say on the distribution side, we see that, and let's not forget a third of our distribution storage in Ontario is market-based. So Cynthia, do you want to make any comments on what you're seeing from a pricing or even term perspective? Yeah, so we've seen

Speaker Change: Yes, maybe taking your last one first.

Speaker Change: We did I think the team was on it and ahead of the game when we picked up assets on the storage side last year, both trace in Aitken Creek and others have stepped in there now and yeah, we continue to add additional.

Speaker Change: Additional cavern space, where we can from a brownfield perspective, I would say also on the distribution side, we see that and let's not forget a third of our distribution storage in Ontario as market base. So since you want to make any comments on what youre seeing from a pricing or even term perspective, yeah. So we've seen our <unk>.

Cynthia Lynn Hansen: Yeah, so we've seen our recontracting prices go up from 100 to 150%, so there's really strong demand for that. We're bringing on a little bit more this year with Trace Cavern 4, so that'll be out by the end of the year. We continue to get inbound calls for looking at what we can do brownfield and even greenfield. I mean, you know, it'd have to be a big demand to get across that, and that would take more time, but we'll look to optimize the existing structures that we have.

Speaker Change: Contracting prices go up from 100% to 150%. So there's really strong demand for that we're bringing on a little bit or this year with trace Catherine force that will be on by the end of the year, we continue to get inbounds flour.

Speaker Change: Looking at what we can do brownfield and even Greenfield I mean, I'd have to be a big demand to get across that and that would take more time, but we will look to optimize the existing structures that we have.

Unknown Executive: Okay, that's great, thank you very much. Oh, sorry. Oh, I was just going to say on the GDS side, we're seeing very similar things to what Cynthia quoted at DAWN in terms of not just the recontracting rates but a lot of customers who previously maybe were just a couple of years that they were signing up for or going up to four, even five years.

Sure Okay, that's great.

Speaker Change: Thanks.

Speaker Change: Alright.

Speaker Change: Oh I was just going to say on the GDS side, we're seeing very similar things to what Don let Cynthia quoted in terms of not just the re contracting rates spent a lot of customers who previously maybe we're just a couple of years that they were signing up for are going up to four even five years.

Unknown Executive: Okay, that's perfect. Thanks again. Your next question comes from the line of Manav Gupta from UB.

Speaker Change: Okay. That's perfect. Thanks again.

Speaker Change: Thanks.

Unknown Executive: Your next question comes from the line of Manav Gupta from UBS. Your line is open. Just one question.

Speaker Change: Your next question comes from the line of Manav Gupta from UBS. Your line is open.

Manav Gupta: Just one question what should we the Capex cadence once you get into this once you close your utility acquisitions, what would be the capex cadence.

Manav Gupta: For 2025 or so.

Unknown Executive: Yeah, we've kind of guided the fact that we've got a run rate of six to seven billion dollars of growth CapEx on an annual basis, and we have a little more capacity than that, but we'll be very selective in how we use that. So that's our growth CapEx number that we've been talking about. All of which is consistent with equity self-financing, which is important to us and to investors as well.

Manav Gupta: Yes, we've kind of guided to the fact that we have.

Manav Gupta: Run rate of $6 $7 billion of growth Capex on an annual basis get a little more capacity than that but we'll be very selective in how we use that so that is our growth capex number that we've been talking about all of which is consistent with equity self financing.

Manav Gupta: Which is important to us and I know this to investors as well.

Speaker Change: Thank you so much.

Rebecca Morley: That concludes our question and answer session. I will now turn the call back over to Rebecca for some final closing remarks.

Speaker Change: That concludes our question and answer session I will now turn the call back over to Rebecca for some final remarks.

Unknown Executive: Great. Thank you. And we appreciate your ongoing interest in Enbridge. As always, our investor relations team is available following the call for any additional questions that you may have. Once again, thank you, and have a great day.

Rebecca: Great. Thank you and we appreciate your ongoing interest in Enbridge as always our Investor Relations team is available following the call for any additional questions that you may have once again, thank you and have a great day.

Speaker Change: Yeah.

Thank you, ladies and gentlemen. We appreciate your participation. This concludes today's conference. You may now disconnect.

Speaker Change: Thank you ladies and gentlemen, we appreciate your participation. This concludes today's conference you may now disconnect.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].