Q2 2024 Enbridge Inc Earnings Call
Rebecca Morley: Good morning and welcome to the Enbridge Inc. Second Quarter 2024 Financial Results Conference Call. My name is Rebecca Morley.
Rebecca Morley: My name is Rebecca Morley. I'm Rebecca Morley, and I'm the Vice President of the Investor Relations Committee. Joining me this morning are Greg Ebel, President and CEO, Pat Murray, EVP and Chief Financial Officer, and the heads of each of our businesses: Colin Gruending, Liquids Pipelines, Cynthia Hansen, Gas Transmission and Midstream, Michele Harradence, Gas Distribution and Storage, and Matthew Akman, Renewable Power.
Rebecca Morley: I'm Morley and I'm the Vice President of the Investor Relations Team.
Speaker Change: Joining me this morning are Gregory Ebel, President and CEO , Pat Murray, EVP and Chief Financial Officer, and the heads of each of our business units.
Speaker Change: Colin Gruending, Liquids 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 a listen-only mode.
Unknown Executive: At this time, all participants are in a 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. If you'd like to withdraw your questions, press the pound. Please note that this conference call is being recorded. As usual, this call is being webcast, and I encourage those listening on the phone to follow along with the supporting slides.
Speaker Change: Following the presentation, we will conduct a question and answer session for the investment community.
Speaker Change: If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press the pound key.
Speaker Change: Please note that this conference call is being recorded.
Speaker Change: As per usual, this call is being webcast and I encourage those listening on the phone to follow along with the supporting slides.
Unknown Executive: 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 questions to one plus a single follow-up, if necessary. 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. As always, our Investor Relations team will be available following the call for any follow-up questions.
Speaker Change: 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 questions to one plus a single follow-up if necessary.
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. As always, our investor relations team will be available following the call for any follow-up questions.
Unknown Executive: On to slide two, where I will 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-GAAP measures, summarized below. And with that, I'll turn it over to Gregory Ebel. Well, thanks very much.
Speaker Change: On to slide two.
Speaker Change: where I will 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 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 filings.
Gregory Ebel: We will also be referring to non- GAAP measures summarized below. And with that, I'll turn it over to Gregory Ebel. Well, thanks very much, Rebecca, and good morning, everyone. We appreciate you joining us on the call today.
Gregory Ebel: Well, thanks very much, Rebecca. And good morning, everyone. We appreciate you joining us on the call. I'm pleased to be here to highlight the significant progress we've made on our strategic priorities and to discuss our strong second quarter results. I'll start by providing a mid-year update outlining the team's strong execution of our financial, operational, and growth priorities. We've accomplished exactly what we said we would, and then some, and look forward to continuing the momentum through the balance of the year.
Gregory Ebel: I'm pleased to be here to highlight the significant progress we've made on our strategic priorities and to discuss our strong second quarter results. I'll start by providing a mid-year update outlining the team's strong execution of our financial, operational, and growth priorities.
Gregory Ebel: We've accomplished exactly what we said we would, and then some, and look forward to continuing the momentum through the balance of the year.
Gregory Ebel: I'll give an overview of the utilities acquisitions and highlight what the team has managed to accomplish since we announced the deal less than a year ago. I'll also provide an update on each of the businesses and highlight key development theories.
Gregory Ebel: I'll give an overview on the Utilities Acquisition and highlight what the team has managed to accomplish since we announced the deal less than a year ago.
Gregory Ebel: I'll also provide an update on each of the businesses and highlight key developments there.
Gregory Ebel: And then, before having Pat take us through the details of the financial results, I'll take the opportunity to share how we are seeing our scale in connectivity. Thank you all for joining us today, and more specifically, how we're seeing this play out in the market with growing power, natural gas, and oil demand. And some of you have heard me say, you can't run a full-time economy on part-time power, and Enbridge is in a position to serve our customers and their growing demand full-time through multiple service offerings.
Gregory Ebel: And then before having packed tickets through the details of the financial results, I'll take the opportunity to share how we are seeing our scale and connectivity extending growth and providing opportunities across all our four business franchises.
Gregory Ebel: And more specifically, how we're seeing this play out in the market with growing power, natural gas, and oil demand.
Gregory Ebel: And some of you have heard me say, you can't run a full-time economy on part-time power, and Enbridge is in a position to serve our customers and their growing demand full-time through multiple service offerings.
Gregory Ebel: Once Pat wraps up, I'll close with a few key messages, and then our management team will be pleased to answer questions following our presentation. Before I jump into the progress we've made this year, I want to acknowledge everyone impacted by the ongoing wildfires in northern Alberta and British Columbia. We are committed to supporting our partners, customers, and communities during this challenging time. And while we've seen no impact on operations to date, safety will be our number one priority as we continue to monitor the situation. Now on to the mini-euro.
Gregory Ebel: Once Pat wraps up, I'll close with a few key messages and then our management team will be pleased to answer questions following our presentation.
Pat Murray: Before I jump into the progress we've made this year, I want to acknowledge everyone impacted by the ongoing wildfires in northern Alberta and British Columbia.
Pat Murray: We're committed to supporting our partners, customers, and communities during this challenging time. And while we've seen no impact on the operations to date, safety will be our number one priority as we continue to monitor the situation.
Gregory Ebel: As you can see, we've achieved or made significant headway on the commitments we laid out at the start of the year. I'm pleased to share that the U.S. Gas Utilities Acquisition Funding is now fully complete. Moving forward, we don't see returning to the public markets for the equity portion of our capital needs, and consistent with that, we have now cancelled our ATM program.
Pat Murray: Now on to the Mid-Year Update. As you can see, we've achieved or made significant headway on the commitments we laid out at the start of the year.
Speaker Change: I'm pleased to share that the U.S. Gas Utilities Acquisition funding is now fully complete. Moving forward, we don't see returning to the public markets for the equity portion of our capital needs, and consistent with that, we have now cancelled our ATM program.
Gregory Ebel: I'm pleased to report our base business performance is very much on track through the first half of the year. Separately, you will see that we are recasting our full year financial guidance. By adding to that original 2024 guidance, the expected contributions from the two U.S. gas utilities, we have closed. We expect the closing of PSNC and all of the associated acquisition finances. Pat will talk more about this later in the call.
Pat Murray: I'm pleased to report our base business performance is very much on track through the first half of the year.
Pat Murray: Separately, you will see that we are recasting our full year financial outlook.
Speaker Change: By adding to that original 2024 guidance, the expected contributions from the two U.S. gas utilities, we have closed.
Pat Murray: The expected closing of PSNC and all of the associated acquisition financings.
Gregory Ebel: Our balance sheet remains strong with debt to EBITDA well within our targeted range at 4.7x, providing financial flexibility to execute on our capital allocation priorities. I'm really proud of the team's execution and focus on operational safety and execution. So far this year, we've had strong asset performance with high utilization across our franchise. As an example, just look at what's happening in... During the second quarter, we achieved record volumes on the mainline and at our Ingleside Export Facility.
Speaker Change: Pat will talk more about this later in the call.
Pat Murray: Our balance sheet remains strong with debt to EBITDA well within our targeted range at 4.7 times, providing financial flexibility to execute on our capital allocation priorities.
Speaker Change: I'm really proud of the team's execution and focus on operational safety and excellence.
Speaker Change: So far this year, we've had strong asset performance with high utilization across our franchises.
Speaker Change: As an example, just look at what's happening in liquids.
Speaker Change: During the second quarter, we achieved record volumes on the mainline and at our Ingleside Export Facility.
Gregory Ebel: As mentioned, we've closed two of the three U.S. gas facilities that we acquired representing what will ultimately be approximately 80% of the total annualized EBITDA and have reached a settlement in principle with the public staff for the North Carolina Utility Commission. DSNC remains on track to close in Q3.
Speaker Change: As mentioned, we've closed two of the three U.S. gas utilities.
Speaker Change: ...that we acquired representing what will ultimately be approximately 80% of the total annualized EBITDA and have reached a settlement in principle with the public staff for the North Carolina Utility Commission.
Speaker Change: DSNC remains on track to close in Q3.
Gregory Ebel: We're also pleased to have reached a pre-packaged rate settlement on our Texas Eastern Pipeline with customers. This reflects our continued focus on optimizing our return assets to ensure we are earning a reasonable return while delivering safe and reliable energy for customers. And I'm pleased to report that the FERC has now approved this customer set. On growth, we've made good progress executing opportunities in our development pipeline. We sanctioned a 130 MW Orange Grove solar project in Texas backed by a long-term PPA with AT&T. In addition to our Whistler time venture, we have reached a final investment decision for the Blackcomb pipeline, which will provide up to 2.5 BCF of much needed natural gas egress for Permian shipping.
Speaker Change: We're also pleased to have reached a pre-packaged freight settlement on our Texas Eastern Pipeline with customers.
Speaker Change: This reflects our continued focus on optimizing our return assets to ensure we are earning a reasonable return while delivering safe and reliable energy for customers.
Speaker Change: And I'm pleased to report that the FERC has now approved this customer settlement.
Speaker Change: On growth, we've made good progress executing opportunities in our development pipeline.
Speaker Change: We sanctioned a 130-megawatt Orange Grove solar project in Texas backed by a long-term PPA with AT&T.
Speaker Change: Through our Whistler time venture, we have reached final investment decision for the Blackcomb pipeline, which will provide up to 2.5 BCF of much-needed natural gas egress for Permian shippers.
Gregory Ebel: And we sanctioned an expansion of our Gray Oak Pipeline in our... With clear line of sight to the U.S. gas utilities acquisition closing, let me take a moment to highlight our strong execution of that transaction. We're ahead in our plan to complete the $19 billion acquisition of these three gas utilities that we announced just last September. This reinforces our proven track record of effective M&A execution and highlights the strength of our relationships with all our stakeholders, including customers, regulators, and governments right across North America.
Speaker Change: And we sanctioned an expansion of our Gray Oak pipeline in our liquids business.
Speaker Change: With clear line of sight to the U.S. gas utilities acquisition closing, let me take a moment to highlight our strong execution of that transaction.
Speaker Change: We are ahead in our plan to complete the $19 billion acquisition of these three gas utilities that we announced just last September .
Speaker Change: This reinforces our proven track record of effective M&A execution and highlights the strength of our relationships with all our stakeholders, including customers, regulators, and governments right across North America.
Gregory Ebel: Federal approvals were all received in due course, with the closing of East Ohio Gas occurring well before our expectations in early March. We look forward to continuing to build long-term productive relationships with all stakeholders in Ohio as we integrate that premier utility business. Next, we announce the closing of Questar in Wexborough in early June.
Speaker Change: Federal approvals were all received in due course, with the closing of East Ohio Gas occurring well before our expectations in early March.
Speaker Change: We look forward to continuing to build long-term productive relationships with all stakeholders in Ohio as we integrate that premier utility business.
Gregory Ebel: Again, our experience and relationships helped ensure timely regulatory approvals were obtained to welcome a growing multi-state utility into our Enbridge family ahead of expectations. Integration is going well so far, and we will continue to provide safe, reliable, and affordable energy for our customers throughout the transition. In North Carolina, we are on track to receive regulatory approval and close in Q3. The team's dedication to executing these transactions and integrating these assets, which diversify our business and enhance our stable cash flow and growth profile, has been first class. Now let's jump into the exceptional performance at each of the BUs.
Speaker Change: Next, we announce the closing of Questar in Wexborough in early June . Again, our experience and relationships helped ensure timely regulatory approvals were obtained to welcome a growing multi-state utility into our Enbridge family ahead of expectations.
Speaker Change: Integration is going well so far, and we will continue to provide safe, reliable, and affordable energy for our customers throughout the transition.
Speaker Change: In North Carolina, we are on track to receive regulatory approval and close in Q3. The team's dedication to executing these transactions
Speaker Change: Completing the financing and integrating these assets which diversify our business and enhance our stable cash flow and growth profile has been first-rate. Now let's jump into the exceptional performance at each of the BU's.
Gregory Ebel: We saw high utilization across our system once again this quarter. This highlights the demand-pull nature of our systems and the continued need for crude oil to fuel everyday life in North America and beyond. The mainline transported record second quarter volume.
Speaker Change: We saw high utilization across our liquid system.
Speaker Change: Once again, this quarter.
Speaker Change: This highlights the demand pull nature of our systems and continued need for crude oil to fuel everyday life in North America and beyond.
Gregory Ebel: 3.1 million barrels per day and has so far been a portion for all months in 2024. July volumes are also expected to be strong, and we're expecting apportionment again in August. The utilization year to date and the great macro backdrop keeps us confident in our 3 million barrels per day estimate on the mainline for 2024 and underpins discussions with customers for expansions in 2026 and beyond. I will also note that this marks our first full year under the new Mainline Tolling Settlement.
Speaker Change: The mainline transported record second-quarter volumes of 3.1 million barrels per day and has so far been a portion for all months in 2024.
Speaker Change: July volumes are also expected to be strong, and we're expecting apportionment again in August .
Speaker Change: The utilization year-to-date and the great macro backdrop keeps us confident in our 3 million barrels per day estimate on the mainline for 2024 and underpins discussions with customers for expansions in 2026 and beyond.
Speaker Change: I will also note that this marks our first full year under the new Mainline Tolling Settlement.
Gregory Ebel: The agreement has proven to be a win-win-win for us, our customers, and the markets we serve. And as a reminder, we have annual toll inflators for operating expenses and power that were effective July 1st. We are also earning in the upper half of the ROE performance call. In the Permian, we sanctioned a 120,000 barrel per day expansion of the Grey Oak pipeline following a successful open season this quarter, and we expect this expansion will come fully online in 2026.
Speaker Change: The agreement has proven to be a win-win-win for us, our customers, and the markets we serve. And as a reminder, we have annual toll inflators for operating expenses and power that were effective July 1st. We are also earning in the upper half of the ROE performance color.
Speaker Change: In the Permian, we sanctioned a 120,000 barrel per day expansion of the grey oak pipeline following a successful open season this quarter and expect this expansion will come fully online in 2026.
Gregory Ebel: The incremental volumes will serve growing demand at our Ingleside facility, and we expect the expansion to be capital efficient, with an EBITDA multiple below five times. We now have 18 million barrels of storage capacity at Ingleside with an additional two and a half million barrels under construction. Of note, Ingleside also set a quarterly record for exports and saw a single day loading record of more than 2.3 million barrels. This again underscores our belief that cash flow from that asset will be sustainable and growing for many years to come. Now, let's take a look at gas transmission.
Speaker Change: The incremental volumes will serve growing demand at our Ingleside facility, and we expect the expansion to be capital efficient, with an EBITDA multiple below five times.
Speaker Change: We now have 18 million barrels of storage capacity at Ingleside with an additional two and a half million barrels under construction. Of note, Ingleside also set a quarterly record for exports and saw a single day loading record of more than 2.3 million barrels.
Speaker Change: This again underscores our belief that cash flow from that asset will be sustainable and growing for many years to come.
Gregory Ebel: We optimized our assets and advanced our U.S. Gulf Coast strategy during the quarter. As mentioned on Texas Eastern, we reached, and the FERC approved, a negotiated settlement with shippers effective October 1st. Base rates are expected to increase by 6% through 2025, with an additional uplift of approximately 3% in 2026. In the Permian, we closed the previously announced acquisition of an interest in the Whistler JV, which brought the ADCC pipeline into service on July 1st.
Speaker Change: Now let's take a look at gas transmission.
Speaker Change: We optimized our assets and advanced our U.S. Gulf Coast strategy during the quarter. As mentioned on Texas Eastern, we reached and the FERC approved a negotiated settlement with shippers effective October 1st.
Speaker Change: Base rates are expected to increase by 6% through 2025, with an additional uplift of approximately 3% in 2026.
Speaker Change: In the Permian, we closed the previously announced acquisition of an interest in the Whistler JV, which brought into service the ADCC pipeline on July 1st. That asset will support US LNG exports to global markets.
Gregory Ebel: That asset will support US LNG exports to global markets. In addition, the JV recently reached FID for the Blackcomb pipeline after securing firm transportation agreements. When completed in 2026, LATCOM is expected to add up to 2.5 billion cubic feet per day of desperately needed natural gas egress for our Permian customers. The Venice Extension, another project serving LNG exports on the Louisiana coast through the Plaquemines LNG facility, is on budget and on track to enter service later this year.
Speaker Change: In addition, the JV recently reached FID for the Blackcomb pipeline after securing firm transportation agreements.
Speaker Change: When completed in 2026, Blackcomb is expected to add up to 2.5 billion cubic feet per day of desperately needed natural gas egress for our Permian customers.
Speaker Change: The Venice Extension and other projects serving LNG exports on the Louisiana coast through the Plaquemines LNG facility is on budget and on track to enter service later this year.
Gregory Ebel: Now let's move on to our gas distribution sector. As I mentioned earlier, we closed the acquisition of Questar and Wexpro at the end of May, and we are well on our way to creating the largest natural gas utility in North America and expect North Carolina to close in the third quarter. As a reminder, each of these utilities has attributes that position us for long-term growth. Enbridge Utah is a fully regulated gas utility that serves more than 1.2 million customers, and we are excited about the data center opportunities we are seeing there. Utah's projected population growth is 5% annually through at least 2028.
Speaker Change: Now let's move on to our gas distribution signal.
Speaker Change: As I mentioned earlier, we closed the acquisition of Questar and Wexpro at the end of May, and we are well on our way to creating the largest natural gas utility in North America, and expect North Carolina to close in the third quarter.
Speaker Change: As a reminder, each of these utilities have attributes that position us for long-term growth. Enbridge Utah is a fully regulated gas utility that serves more than 1.2 million customers, and we are excited about the data center opportunities we are seeing there.
Speaker Change: Utah's projected population growth is 5% annually through at least 2028, which we expect to drive rate-based growth for years to come. EnbridgeCAST Utah rates are effective until 2026.
Gregory Ebel: We expect to drive rate-based growth for years to come. EnbridgeCAST Utah rates are effective until 2026. In Ontario, we have almost 4 million customers and expect residential and industrial growth, as well as system modernization, will backstop ongoing rate-based growth in Ontario. In Ohio, we have another 1.2 million customers connected to our utility.
Speaker Change: In Ontario, we have almost 4 million customers and expect residential and industrial growth, as well as system modernization, will backstop ongoing rate-based growth in Ontario.
Speaker Change: In Ohio, we have another 1.2 million customers connected to our utility. We expect to continue growing rate-based through necessary investments.
Gregory Ebel: We expect to continue growing rate-based through necessary investment in modernizing existing infrastructure, ensuring reliable and affordable energy for our customers. Enbridge Gas Ohio has a rate case ongoing with new rates expected in 2025.
Speaker Change: which will modernize existing infrastructure, ensuring reliable and affordable energy for our customers.
Speaker Change: Enbridge Gas Ohio has a rate case ongoing with new rates expected in 2025.
Gregory Ebel: All of our utilities, including PSNC, which we expect to close in the coming months, have attractive returns on equity and are located in natural gas supportive jurisdictions. That was the terms of our renewables business, and we made great progress on the growth commitments laid out at our investor day for that business. We previously announced a plan to develop the Seven Stars Wind Project in Saskatchewan, with FID expected in 2025. This 200-megawatt wind farm will have greater than 30% Indigenous participation and is backed by government loan guarantees.
Speaker Change: All of our utilities, including PSNC, which we expect to close in the coming months, have attractive returns on equity and are located in natural gas supportive jurisdictions.
Speaker Change: That was terms of renewables business and we made great progress on the growth commitments laid out at our investor day for that business.
Speaker Change: We previously announced a plan to develop the Seven Stars Wind Project in Saskatchewan, with FID expected in 2025. This 200-megawatt wind farm will have greater than 30% Indigenous participation and is backed by government loan guarantees.
Gregory Ebel: This project is expected to provide emissions-free power to more than 100,000 Skage 1 homes and is a great example of how the cross-pollination of our business units is generating growth. Moving on to solar, we expect to complete our investment in Flux World Phase 2 and Q3. Similar to Phase 1, Phase 2, is backed by a long-term PPA with Amazon for 100% of the energy production. We also sanctioned the 130-megawatt Orange Grove Solar Project in Texas, with an in-service expected in 2025.
Speaker Change: The project is expected to provide emissions-free power to more than 100,000 Saskatchewan homes and is a great example of how the cross-pollination of our business units is generating growth.
Speaker Change: Moving on to solar, we expect to complete our investment in Flux World Phase II and Q3. Similar to Phase I, Phase II is backed by a long-term PPA with Amazon for 100% of the energy production.
Speaker Change: We also sanctioned the 130 MW Orange Grove solar project in Texas with an in-service expected in 2025. This project is backed by a long-term PPA with AT&T for 100% of the offtake.
Gregory Ebel: This project is backed by a long-term PPA with AT&T for 100% of the off-grid. In our conversations, we're finding more and more that hyperscalers value the reliability, experience, and proven track record that Enbridge brings to the table as a truly diversified energy provider. And finally, FACOMP is now fully operational, supplying nearly 770,000 people with low-carbon electricity across the Saint-Marie-Thames region in France.
Speaker Change: In our conversations, we're finding more and more that hyperscalers value the reliability, experience, and proven track record that Enbridge brings to the table as a truly diversified energy provider.
Speaker Change: And finally, FACOMP is now fully operational, supplying nearly 770,000 people with low-carbon electricity across the Seine-Maritime region in France.
Gregory Ebel: With four growing franchises and gas utility acquisitions almost complete, let's take a look at Enbridge's collective offering and why we're positioned to benefit from growing global demand. Our asset footprint makes us North America's first-choice energy provider. In fact, we don't just have assets; we have franchises.
Speaker Change: With four growing franchises and gas utility acquisitions almost complete, let's take a look at Enbridge's collective offering and why we're positioned to benefit from growing global demand.
Speaker Change: Our asset footprint makes up North America's first choice energy provider. In fact, we don't just have assets, we have franchises.
Gregory Ebel: Each of the businesses where we're involved, and each of those franchises contained supercenters, which are integrated value chains connecting the best supply bases in North America to key domestic demand markets and export terminals. Strong relationships with governments, regulatory, and tribal bodies make us the first choice for energy delivery within the jurisdictions we serve. We have a strong track record of operational excellence, utilizing technology and innovation to drive efficiency. Diversification and Asset Interconnectivity make us a one-stop shop, which attracts high-quality customers and partners like AT&T, Amazon, Exxon, BT, Suncor, and NextEra, to name but a few.
Speaker Change: in each of the businesses where we're involved. Each of those franchises contain SuperSystem.
Speaker Change: which are integrated value chains connecting the best supply basins in North America to key domestic demand markets and export terminals.
Speaker Change: Strong relationships with governments, regulatory, and tribal bodies makes us the first choice for energy delivery within the jurisdictions we serve.
Speaker Change: We have a strong track record of operational excellence, utilizing technology and innovation to drive efficiencies.
Speaker Change: Diversification and asset interconnectivity makes us a one-stop shop, which attracts high-quality customers and partners like AT&T, Amazon, Exxon, BT, Suncor, and NextEra, to name but a few.
Gregory Ebel: Lower carbon optionality exists throughout our balanced conventional portfolio, and we plan to focus on investments that match the pace of the global energy transition. And importantly, we believe all these growth opportunities can be equity self-funded through our strong balance sheet and disciplined capital allocation. Scale and connectivity are key competitive advantages that are driving new growth opportunities, so let me touch on those briefly.
Speaker Change: Lower carbon optionality exists throughout our balanced conventional portfolio, and we plan to focus on investments that match the pace of global energy transition.
Speaker Change: And importantly, we believe all these growth opportunities can be equity self-funded through our strong balance sheet and disciplined capital allocation. Scale and connectivity are key competitive advantages that are driving new growth opportunities, so let me touch on those briefly.
Gregory Ebel: Our large incumbent asset position allows us to provide differentiated service offerings that are driving value for our customers. It's still in the early innings for us to fully realize the advantage of our vast position, but we're seeing growing opportunities across our footprint due to increasing natural gas and renewable power demand and their interconnectivity. As an example, in our gas utility business, data center growth in Utah is being driven by the need for reliable and affordable energy.
Speaker Change: Our large incumbent asset position allows us to provide differentiated service offerings that is driving value for our customers.
Speaker Change: It's still in the early innings for us, fully realizing the advantage of our vast position, but we're seeing growing opportunities across our footprint.
Speaker Change: Due to increasing natural gas and renewable power demand and their interconnectivity. As an example, in our gas utility business, data center growth in Utah is being driven by the need for reliable and affordable energy.
Gregory Ebel: This quarter, we added 50 megawatts under contract and have numerous additional inquiries to provide natural gas for up to an additional 1.5 gigawatts of capacity. Throughout our utility footprint, we are engaged in additional early-stage discussions with data centers that we expect to translate into future growth. In gas transmission, our assets are ideally located and well-connected. We are within 50 miles of 45% of all natural gas power generation in North America.
Speaker Change: New this quarter, we added 50 megawatts under contract and have numerous additional inquiries to provide natural gas for up to an additional 1.5 gigawatts of capacity.
Speaker Change: Throughout our utility footprint, we are engaged in additional early-stage discussions with data centers that we expect to translate into future growth.
Speaker Change: In gas transmission, our assets are ideally located and well connected. We are within 50 miles.
Gregory Ebel: In fact, in July, we achieved 7 of our highest ever daily deliveries to U.S. power plants from our gas transmission system. We've had a range of customers in the U.S. Southeast express interest in securing approximately 700 million cubic feet of transmission capacity daily to serve up to 5,000 megawatts of new gas power. In renewable power, scale, financial, and execution capabilities are differentiated. Data centers need baseload power solutions such as natural gas.
Speaker Change: of 45% of all natural gas power generation in North America. In fact, in July , we achieved 7 of our highest ever daily deliveries to U.S. power plants from our gas transmission system.
Speaker Change: We've had a range of customers in the U.S. Southeast express interest in securing approximately 700 million cubic feet a day of transmission capacity to serve up to 5,000 megawatts of new gas fired demand.
Speaker Change: In renewable power, scale, financial, and execution capabilities are differentiators.
Speaker Change: Data centers need baseload power solutions, such as natural gas, to support the 24-7 energy demands of hyperscalers, but many customers are balancing that reliability requirement with their renewable energy commitments.
Gregory Ebel: It's not always possible to co-locate or develop behind-the-meter power solutions to support new data centers, so we are having discussions with large blue-chip customers to provide traditional and virtual long-term PPAs. Virtual long-term PPAs are where customers may look at signing long-term offtake agreements to support the development of clean energy projects to offset emissions produced elsewhere in the business. We have over 2 gigawatts of regionally diverse wind and solar projects in development that we talked about yesterday, which are capable of serving new data center load within service expectations in 2026 and beyond.
Speaker Change: It's not always possible to co-locate or develop behind-the-meter power solutions to support new data centers, so we are having discussions with large blue-chip customers to provide traditional and virtual long-term PPAs.
Speaker Change: Virtual long-term PPAs are where customers may look at signing long-term offtake agreements to support development of clean energy projects to offset emissions produced elsewhere in the business.
Speaker Change: We have over 2 gigawatts of regionally diverse wind and solar projects in development that we talked about it in yesterday, which are capable of serving new data center load within service expectations in 2026 and beyond.
Pat Murray: The collective strength of our franchises lends well to the growth opportunities in front of us, and I'm confident Enbridge will play an essential role delivering energy everywhere people go. With that, I'll pass it over to Pat to walk through yet another strong quarter of financial results. Thanks, Greg. And good morning, everyone.
Speaker Change: The collective strength of our franchises lends well to the growth opportunities in front of us, and I'm confident Enbridge will play an essential role delivering energy everywhere people need it.
Speaker Change: With that, I'll pass it over to Pat to walk through yet another strong quarter of financial results.
Pat Murray: It's been a very strong quarter for Enbridge, and as Greg noted, we had continued high utilization across all of our franchises. Quests are closed in May, and we've now brought roughly 80% of the total annualized US LDC EBITDA in-house. I'll be speaking to adjusted results on this slide, inclusive of the utility acquisitions. Year over year, second quarter adjusted EBITDA is up 8%, and DCF per share of 134 includes a higher share count from all the pre-funding of the U.S. gas utility. Liquid volumes were high across the board, with the mainline transporting 3.1 million barrels per day, a second quarter record. Ingleside also broke its previously quarterly and daily records for export volumes.
Pat Murray: Thanks Greg, and good morning everyone. It's been a very strong quarter for Enbridge, and as Greg noted, we had continued high utilization across all of our franchises. Quests are closed in May, and we've now brought in roughly 80% of the total annualized U.S. LDC EBITDA in-house.
Pat Murray: I'll be speaking to adjusted results on this slide, inclusive of the utility acquisitions. Year over year, second quarter adjusted EBITDA is up 8%, and DCF per share of 134 includes a higher share count from all the pre-funding of the U.S. gas utilities.
Pat Murray: Liquids volumes were high across the board, with the mainline transporting 3.1 million barrels per day, a second quarter record. Ingleside also broke its previously quarterly and daily records for export volumes.
Pat Murray: In GTM, lower operating costs, as well as the Aiken Creek and Tomorrow R&G acquisitions, more than offset the sale of Alliance and Xable on April 1st. A full quarter of Enbridge Gas Ohio and partial contributions from our Questor acquisition added approximately $175 million of EBITDA as compared to Q2 in 2023. And in Canada, a higher distribution margin and customer additions over the last year helped offset the negative impact of warm weather at our Ontario utilities. Below the line, higher financing costs on floating rate debt and new issuances, and the higher share count that I mentioned before, impacted the per share metric.
Pat Murray: In GTM, lower operating costs, as well as the Aitkin Creek and Tomorrow RNG acquisitions, more than offset the sale of Alliance and Uxable on April 1st.
Speaker Change: A full quarter of Enbridge Gas Ohio and partial contributions from our Questor acquisition added approximately $175 million of EBITDA as compared to Q2 in 2023.
Speaker Change: And in Canada, a higher distribution margin and customer additions over the last year helped offset the negative impact of warm weather at our Ontario utility.
Speaker Change: Below the line, higher financing costs on floating rate debt and new issuances, and the higher share count that I mentioned before, impacted per share metrics.
Pat Murray: As you can see at the bottom of the slide, the base business continues to deliver strong financial results. So let's look ahead to how the rest of the year is shaping up. With two gas utilities in the door, all the financing complete, and a good line of sight to closing PSNC, we're pleased to be able to recast Enbridge's 2024 financial guidance. We're raising our 2024 EBITDA range to $17.7 to $18.3 billion. This increase reflects partial year contributions from each of the U.S. gas utilities and assumes we close PSNC mid-third quarter.
Speaker Change: As you can see at the bottom of the slide, the BASE business continues to deliver strong financial results. So let's look ahead to how the rest of the year is shaping up.
Speaker Change: With two gas utilities in the door, all the financing complete, and a good line of sight to closing PSNC, we're pleased to be able to recast Enbridge's 2024 financial guidance. We're raising our 2024 EBITDA range to $17.7 to $18.3 billion.
Speaker Change: This increase reflects partial year contributions from each of the U.S. gas utilities and assumes we close PSNC mid-third quarter.
Pat Murray: Even with the partial years of EBITDA and all of the funding completed for these transactions, we're still maintaining our DCF guidance range of $540 to $580 per share. I'm also reaffirming our near-term financial outlook of 7-9% EBITDA growth through 2026, 4-6% EPS growth, and approximately 3% DCF growth per share. All in all, it's shaping up to be another strong year, with Bay's business performing well and great execution on both the closings and the full financing of the U.S. gas utility. Now, let's turn to the ballots.
Speaker Change: Even with the partial years of EBITDA and all of the funding completed for these transactions, we're still maintaining our DCF guidance range of $540 to $580 per share.
Speaker Change: I'm also reaffirming our near-term financial outlook of 7-9% EBITDA growth through 2026, 4-6% EPS growth, and approximately 3% DCF growth per share.
Speaker Change: All in all, it's shaping up to be another strong year with Bayes Business performing well and great execution on both the closings and the full financing of the U.S. gas utilities.
Pat Murray: In reaction to closing Questar and the progress on the acquisition funding plan, DBRS and S&P took positive actions on our credit ratings during the quarter. DBRS upgraded Enbridge to A-Low, and S&P removed the negative outlook, affirming Enbridge's BBB plus stable outlook. Fitch also reaffirmed our BBB-plus rating.
Speaker Change: Now let's turn to the balance sheet.
Speaker Change: In reaction to closing Questar and the progress on the Acquisition Funding Plan, DVRS and S&P took positive actions on our credit ratings during the quarter.
Speaker Change: PBRS upgraded Enbridge to ALO, and S&P removed the negative outlook, affirming Enbridge's BBB plus stable outlook. Fitch also reaffirmed our BBB plus rating. While not unexpected, we're pleased to see that the agency's share of view that our long-held leverage target of 4.5 to 5 times is a sweet swap for Enbridge.
Pat Murray: While not unexpected, we're pleased to see that the agency's share of you, and our long-held leverage target of 4.5 to 5 times is a sweet swap for Enbridge. As we previously communicated, we expect leverage to peak after closing the PSMC acquisition and decrease throughout 2025 as we earn annualized EBITDA contributions from all of the utilities. With that, let me move on to capital allocation. Our priorities remain unchanged, and we're laser focused on the balance sheet.
Speaker Change: As we previously communicated, we expect leverage to peak after closing the PSNC acquisition and decrease throughout 2025 as we earn annualized EBITDA contributions from all of the utilities.
Speaker Change: With that, let me move on to capital allocation. Our priorities remain unchanged and we're laser focused on the balance sheet. We cancel the remaining APM this morning as we return to our equity self-funding model.
Pat Murray: We cancel the remaining APM this morning as we return to our equity self-funding model, and we were well within our target debt-to-eBITDA range, despite only partially eBITDA contributions from our newly acquired US LDCs. The dividend remains a staple of our investment offering, and we're committed to extending our 29-year track record of responsible dividend growth by continuing to grow the business in a very sustainable manner. Our $24 billion of secured capital backlog, which is underpinned by low-risk commercial terms, will be funded entirely through internally generated investment capacity.
Speaker Change: We're well within our target debt-to-eBITDA range, despite only partially eBITDA contributions from our newly acquired US LDCs.
Speaker Change: The dividend remains a staple of our investment offering, and we're committed to extending our 29-year track record of responsible dividend growth by continuing to grow the business in a very sustainable manner.
Speaker Change: Our $24 billion of secured capital backlog, which is underpinned by low-risk commercial terms, will be funded entirely through internally generated investment capacity.
Pat Murray: We plan to deploy approximately $6 to $7 billion per year in growth capital, leaving us another $2 billion that can be allocated towards the next available opportunities, whether that be sanctioning new strategic projects, Accretive Tuck in M&A, or Debt Reduction. With that, I'll pass it back to Greg to close off the call. Great financial overview, Pat. Thanks very much.
Speaker Change: We plan to deploy approximately $6-$7 billion per year in growth capital, leaving us another $2 billion that can be allocated towards the next available opportunities, whether that be sanctioning new strategic projects,
Speaker Change: Accretive Tuck in M&A or Debt Reduction.
Speaker Change: With that, I'll pass it back to Greg to close off the call.
Gregory Ebel: Now, let me conclude with why we think we're a first-choice investment opportunity. We have a consistent track record of sustainably returning capital to shareholders, supported by a visible growth pipeline. This has resulted in an annual total shareholder return of greater than 10% over the past 20 years, and we see no change to that proposition going forward. I expect cash flow to grow 5% over the longer term. And when coupled with a growing dividend.
Greg: Great financial overview, Pat. Thanks very much. Now let me conclude with why we think we're a first-choice investment opportunity.
Greg: We have a consistent track record of sustainably returning capital to shareholders, supported by a visible growth pipeline.
Greg: This has resulted in an annual total shareholder return of greater than 10% over the past 20 years, and we see no change to that proposition going forward.
Speaker Change: We expect cash flow to grow 5% over the longer term, and when coupled with a growing dividend.
Gregory Ebel: Investors are positioned to realize an annual TSR of 10-12% for the foreseeable future supported by our low-risk business model, which includes 98% of our cash flows generated from either cost of service or take or pay contracts, a customer base that is over 95% invested, and 80% of the EBITDA earned from assets with protection against inflation, and our debt portfolio, which is less than 5% exposed to floating rate volatility. In short, we have diversified utility-like cash flows, a strong balance sheet, and visible growth opportunities across each business unit franchise that will support and extend our 29 consecutive years of dividend income.
Greg: Investors are positioned to realize an annual TFR of 10-12% for the foreseeable future, supported by our low-risk business model, which includes 98% of our cash flows generated from either cost-of-service or take-or-pay contracts.
Greg: A customer base that is over 95% investment grade and 80% of the EBITDA earned from assets with protection against inflation. And our debt portfolio, which is less than 5% exposed to floating rate volatility.
Speaker Change: In short, we have diversified utility-like cash flows, a strong balance sheet, and visible growth opportunities across each business unit franchise that will support and extend our 29 consecutive years of dividend increases.
Gregory Ebel: We remain committed to continuing this strong track record of returning capital to shareholders and believe it positions us as a first choice. Thank you again, and operator, please open up the line for questions.
Greg: We remain committed to continuing this strong track record of returning capital to shareholders and believe it positions us as a first-choice investment.
Speaker Change: Thank you again, and operator, please open up the line for questions.
Greg: Operator, please open up the line for questions.
Unknown Executive: Thank you. We will now begin the question and answer session. 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. Your first question comes from the line of Rob Hope from Scotiabank. Your line is open.
Speaker Change: Thank you. We will now begin the question and answer session. 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. Your first question comes from the line of Rob Hope from Scotiabank. Your line is open.
Robert Hope: Good morning, everyone. Thanks for taking my call or my question. Maybe to start off with the TETCO rate case, can you walk us through kind of what the key drivers of the change there are, whether there were kind of some key roadblocks there, and as well as kind of what you think it does mean in terms of
Rob Hope: Good morning, everyone. Thanks for taking my call.
Rob Hope: or my question, maybe to start off with the TETCO rate case.
Rob Hope: Can you walk us through kind of what the key drivers of the change there are, whether there were kind of some key roadblocks there, and as well as kind of what you think it does mean in terms of an EBITDA or income uplift in 2025 and 2026?
Robert Hope: What does it mean in terms of an EBITDA or income uplift in 25 and 26.
Cynthia Hansen: Thanks, Rob. It's Cynthia.
Cynthia: Thanks, Rob. It's Cynthia.
Speaker Change: So the settlement, as you know, basically is a black box, pre-packaged settlement. So there's a whole bunch of items that came into consideration. So the team, our team at Enbridge looks...
Cynthia Hansen: So the settlement, as you know, basically is a black box, pre-packaged settlement. So there's a whole bunch of things that came into consideration. So the team at Enbridge looks at, you know, what capital we've spent, what our operating costs are, forecasting that out into the future. We also look at what our rates are going to be impacted by, and have lots of that kind of conversation. So a lot of stuff goes into determining what those components are, and we don't specifically identify any one thing.
Speaker Change: at, you know, what capital we've spent, what our operating costs are, forecasting that out into the future. We also look at what our rates are going to be impacted, have lots of that kind of conversation.
Greg: So a lot of stuff goes into determining what those components are, and we don't specifically identify...
Cynthia Hansen: But what it does allow us to do is to continue to earn that fair return into the future. And basically, as noted, that's a 6% increase as of October of this year and then a further 2.75% in January of 2026. So with that rate all in, basically, we're in a position to continue to get a fair return. The next time we go back, we have a moratorium up until October 27, but a comeback by Q3 of 2030. So we're just well positioned to continue to earn a strong return on those assets.
Rob Hope: Any one thing, but what it does allow us to do is to continue to earn that fair return into the future.
Speaker Change: And basically, as was noted, that's a 6% increase as of October of this year, and then a further
Speaker Change: 2.75% in January of 2026. So with that rate all in.
Greg: Basically, we're in a position to continue to get a fair return. The next time we'll go back, we have a moratorium up until October of 27, but a comeback by Q3 of 2030, so we're just well positioned.
Greg: to continue to earn a strong return on those assets.
Robert Hope: I appreciate that. And then, maybe, moving over to the 2024 recap.
Robert Hope: Cast, Eva Dahl, Guidance Range
Speaker Change: All right, appreciate that. And then maybe moving over to the 2024 recast EBIDTA guidance range, can you walk us through the puts and takes there? You know, it does seem like H1 has outperformed expectations, especially on the liquid side, and, you know, layering in
Robert Hope: Can you walk us through the puts and takes there?
Robert Hope: It does seem like H1 has outperformed expectations, especially on the liquid side.
Robert Hope: You know, the Dominion Assets gets us towards the upper end of the range. Just want to get a sense of whether or not you've adjusted the other businesses, or just
Speaker Change: You know the the Dominion assets gets us towards the upper end of the of the range Just want to get a sense of whether or not you've adjusted the other businesses or just layered in Dominion Or are there some specific headwinds we should be looking for in H2?
Gregory Ebel: Yeah, thanks, Rob. Greg.
Greg: Yeah, thanks, Rob. It's great. Yeah, this is solely just based on layering in the utilities.
Speaker Change: and the assuming that we get PFC.
Speaker Change: here in the next couple of months, and the related financing. As has been our practice, we don't change mid-year the other business units. But you pointed it out well, obviously.
Speaker Change: The base businesses are all doing really great utilization, volumes, etc., so super strong quarters. So, yeah, obviously, if you were just looking at the base business, you'd be at that upper end.
Collar: All right, appreciate that, Collar. Thank you.
Speaker Change: Your next question comes from a line of Robert Catellier from CIBC. Your line is open.
Robert Cotelier: Hey, good morning. I'm just going to follow up on the utilities here. What drove the decision to use the ATM versus asset sales?
Robert Cotelier: And understanding that you're fully funded for the acquisitions, what do you expect in terms of any asset sales going forward, given that you have that ongoing capital recycling program?
Gregory Ebel: Yeah, this is solely based on layering in the utilities and assuming that we get TFC here in the next couple of months and the related financing. As has been our practice, we don't change other business units mid-year, but you pointed it out well. Obviously, the base businesses are all doing really great utilization, volumes, etc. So, a super strong quarter. So yeah, obviously, if you were just looking at the base business, you'd be at that upper end.
Speaker Change: Thanks for the question on that. Here's how we looked at it. Obviously, we had a super high level of confidence.
Greg: In terms of getting all the utilities closed even a little faster than we had expected. So with that in mind and the fact that we saw the, you know, better economics than what was even in our deal model, we moved quickly, confidently to get all the financing done. So that's done. May not fit everybody's model, but definitely exceeded the deals.
Robert Cotelier: Economic Assumptions that we had. With that behind us, the ATM terminated. It's really about now focusing on the business, get it at a great price.
Greg: And, you know, how do we keep moving this transaction forward and combine it with the rest of the assets? And as you would recognize and definitely didn't overlook, even with all that,
Greg: the way in which we did it. We're going to be well within our guidance range.
Greg: As we just talked about, the Pace business would even...
Robert Cotelier: Asset sales, still very much part of what we look at, let's not forget we did a large asset sale earlier.
Greg: This year with Alliance and Oxable, but we're always looking at stuff. I wouldn't say there's anything near terms that we have to do, and I think that's the key component here, balance sheet and get good position financing done.
Robert Cotelier: Business is all running well. If we do anything significant on the asset sale side, it'll be solely as a result of getting a great price on something.
Speaker Change: Okay, thanks for that. And then just on the main line, clearly it's been a good quarter despite the onset of TMX.
Speaker Change: I have a couple of questions about the near-term and the long-term outlook. First, just in the near-term, I'm happy to hear your expectations of apportionment in August , but I'm just wondering what your...
Speaker Change: Seeing in terms of, you know, risk of producer shut-ins in light of the forest fires, and then if you look longer term, the need for egress in post-2026.
Speaker Change: What level of political risk do you see there? In other words, do you think the producers are going to need that capacity irrespective of what government is in place in Canada? Or do you think they're probably waiting for the Canadian federal election to get better clarity on carbon prices moving forward?
Robert Hope: All right. I appreciate that, Colin. Thank you.
Speaker Change: Hey Robert, yeah it's Colin. Thanks for the question on the main line, yeah indeed it's performing well, business is good, we are apportioned in August .
Robert Catellier: Your next question comes from the line of Robert Catellier from CIBC. Your line is open.
Speaker Change: And I think Greg mentioned, we're very comfortable with the 3.0 million barrels per day full year guide. You know, we're probably...
Robert Catellier: Hey, good morning. What drove the decision to use the ATM versus asset sales? And understanding that you're fully funded for the acquisitions, what do you expect in terms of any asset sales going forward, given that you have that ongoing capital recycling program?
Speaker Change: Likely to exceed that, all things equal, but you did mention, you know, the risk of forest fires. I think that that remains a
Speaker Change: Present Risk. You know, maybe similar to last year or so. To date, really negligible impact on mainline volumes and basin production.
Speaker Change: There are, you know, active fires in the region. As you know, we're in close coordination with all our producers.
Speaker Change: and have, I think collectively, everyone's enhanced their investments in mitigation since 2016, but Mother Nature...
Speaker Change: You know, is there. So we'll watch that carefully through August , September here.
Speaker Change: But, you know, so far, we're looking pretty strong for the year, all things equal, that's the near-term. So, on the long-term, I think on e-grants Greg mentioned, we're teeing up some insurance e-grants at a minimum, it's likely it'll get used.
Greg: The 2026-27 period, we're socializing that with industry. There's a significant increase with this time.
Speaker Change: You know, I think if you look at each producer's book of
Speaker Change: supply optimization, debottlenecking, and modest kind of modular growth.
Greg: I think that's all.
Speaker Change: All of it's announced by each of them and we track it bottom up and top down. It's likely to proceed kind of irrespective of any administration. It's all manageable and I think will fit within climate policies as stated.
Greg: There's potentially the upside to that, I think, you know, if...
Speaker Change: [inaudible]
Speaker Change: Collectively has a good beat on that and Enbridge will be there to serve as we've done the last couple of decades.
Gregory Ebel: Yeah, thanks. So thanks for the question on that.
Speaker Change: Okay, thanks for those answers.
Gregory Ebel: Here's how we looked at it. You know, obviously, we had a super high level of confidence in terms of getting all the utilities closed, even a little faster than we had expected. So with that in mind, and the fact that we saw better economics than what was even in our deal model, we moved quickly, confidently, to get all the financing done. So that's done.
Gregory Ebel: May not fit everybody's model, but definitely exceeded the deals and economic assumptions that we had. Balance sheet and get a good position, financing done, business is all running well. If we do anything significant on the asset sale side, it'll be solely as a result of getting a great price on it.
Speaker Change: Your next question comes from a line of Ben Pham from BMO. Your line is open.
Robert Catellier: Okay, thanks for that. And then, just on the main line, clearly, it's been a good quarter despite the onset of TMX. I have a couple questions about the near term and the long term outlook. First, just in the near term, I'd be happy to hear your expectations of apportionment in August. But I'm just wondering what you're seeing in terms of the risk of producer shut-ins in light of the forest fires. And then, if we look longer term, the need for egress in post-2026, what level of political risk do you see there?
Ben Pham: Hi, thanks, good morning. It's all on the data center comments and that slide you had with the map and the blobs there.
Ben Pham: Could you comment on which business segment you expect to see the best risk-reward or highest investment opportunity, and are you indifferent somewhat to where you're allocating capital towards that growing opportunity?
Speaker Change: Yeah, good question. I think they're all going to benefit, maybe not liquids as much, but it's got its own great opportunities. Probably the initial phase you see is GDS, and you saw we announced...
Ben Pham: and Michelle and the team there signed up a 50 megawatt lateral for a 50 megawatt plant there. So I think that's probably the easiest move right away.
Robert Catellier: In other words, do you think the producers are going to need that capacity, irrespective of what government is in place in Canada, or do you think they're probably waiting for the Canadian federal election to get better clarity on carbon prices moving forward?
Ben Pham: But gas transmission has a lot of opportunities too, you know as I mentioned during my open comments there's six, seven hundred a day of requests for capacity in the southeast.
Ben Pham: You know, some of that will be cool, the gas changing, but a lot of it is data center driven. Things like storage, obviously, that exists both in GPM and in GDS.
Speaker Change: And then let's not forget Matthew's business on the power side, and obviously data centers, a lot of those folks are trying to meet, just like a lot of other folks, their lower emission goals.
Ben Pham: And so they may like the gas for the reliability side. They'll help fund some of these projects with very long-term contracts, kind of like what you saw today. In terms of...
Speaker Change: Which ones get the capital? That's a classic risk-adjusted return basis. Obviously, very, very safe capital.
Speaker Change: that goes into the distribution business.
Ben Pham: If you've got long-term power purchase agreements on the renewable side, same thing, and obviously there's a tax kicker there that we like.
Ben Pham: And then GTM, same thing. So they all have great returns on the equity portion. And then it's a classic discussion of how fast, how quick cycle the capital can be and the quality of the off-taker. So I think the key is, unlike anybody else.
Speaker Change: We have an opportunity to play in all elements of that. So when you look right across the entire system liquids Demand is up. Natty is up. Electrons are up. If you look at the supply side
Ben Pham: The same thing. Liquids are up. Natty's up. Electrons are up. And if you've got linear infrastructure and all those pieces, you win. So, I think you'll increasingly see us use that interconnectivity.
Ben Pham: to give exactly what our customers want and something that's a differentiated offering from what anybody else has, all of which is a great setup for us to allocate capital to those best opportunities.
Colin Gruending: Hey, Robert. Yeah, it's Colin.
Speaker Change: All right, that's great context. Thank you. And maybe a second question on the U.S. gas utility acquisitions. Now you're closing, or soon to be closed, all of them. Like, what's the near-term...
Colin Gruending: Thanks for the question on the main line. Yeah, indeed, it's performing well. Business is good.
Colin Gruending: We are apportioned in August, and as Greg mentioned, we're very comfortable with the 3.0 million barrels per day full year guide. You know, we're probably, likely to exceed that, all things equal. But you did mention the risk of forest fires. I think that that remains a present risk, you know, maybe similar to last year. So to date, really negligible impact on mainline volumes and base and production. There are, you know, active fires in the region, as you know.
Colin Gruending: We're in close coordination with all our producers and have, I think, collectively everyone has enhanced their investments in mitigation since 2016, but Mother Nature, you know, is there. So we'll watch that carefully through August and September here. So far, we're looking pretty strong for the year, all things equal, that's the near term. So, on the long term, I think on e-grants, as Greg mentioned, we're tying up some insurance e-grants at a minimum. It's likely to get used.
Colin Gruending: 2026-2027 period. We're socializing that with industry. There's significant interest at this time. You know, I think if you look at each producer's book of supply optimization, debottlenecking, and a modest kind of modular growth. I think that's all. All of the bits announced by each of them, and we track them bottom up and top down, are likely to proceed kind of irrespective of any administration. It's all manageable, and I think it will fit within...
Speaker Change: Focus or initiatives, those buckets and can you comment on that 8% rate-based growth, the visibility or expectation of how long that could persist?
Colin Gruending: Climate Policy at State. There's potentially the upside to that, I think, you know. I'm not really that concerned with egress, bottlenecking here again industry, and Collectively has a good beat on that, and Enbridge will be there to serve as we've done the last couple of decades.
Ben Pham: Michele's here, so I'll let her...
Michelle: So, of course, initially, we're really focused on integrating the utilities into gas distribution and storage. We stood up an organization to do that even before we announced the deal, and we've been very focused on it.
Speaker Change: We've brought in Ohio now in March. We've brought in Utah with that Idaho, Wyoming, and of course the Wexpro assets.
Speaker Change: In June , and that comes with 2,500 employees, that comes with almost 2.5 million customers.
Speaker Change: and it's gone very very smoothly so far and you'll recall that we have a lot of experience in doing this with the Union Enbridge Gas merger that we did in Ontario so feeling good about that we've got about 30 months
Speaker Change: to work through our TSA with Dominion Energy, so lots of support for them. Of course, the first thing we've been doing is we've been bringing these utilities in and being able to look under the hood a bit more, is really testing and understanding those growth opportunities. And I've got to tell you, I still really love these utilities. I love the diversification of the growth that we get from these utilities.
Speaker Change: So Ontario, and let's not forget about Ontario, Ontario is still going strong with its economic growth, about 40,000 customers a year that we're signing up there.
Speaker Change: Utah, Greg mentioned it in his overview, top tier population growth, about 5% annually through 28, so they're attracting well over 20,000 customers a year.
Speaker Change: And then along with that rate-based growth, Utah has regulatory-approved rider programs that support things like rural expansion. And of course, we just talked about the data center growth that they're seeing along the Wasatch Front.
Ben Pham: Similarly, Ohio, great growth that's driven primarily through their Rider-eligible modernization program. Lots of work to do there to upgrade those systems, but again, that's going along really smoothly.
Speaker Change: and I'm quite confident we'll be just as pleased with North Carolina.
Speaker Change: So the growth protections we've given, we feel very, very good about for the next several years.
Speaker Change: Yeah, I think that 8% kiger on the rate base through 27 doesn't really take into account the data center. So if I recall early days, so, you know, anything we get on that front will be additive.
Speaker Change: So, and I like it equally, so it's not just, the rate-based growth is different in each area, which I think underlines the ability, depending on where you are in the cycle, it might be modernization, it might be growth, it might be data center new builds.
Speaker Change: I think the other thing we're really focused on as well is just that interconnectivity. You know, where can we utilize gas transmission and or power to help the utilities or vice versa.
Benjamin Pham: Your next question comes from a line of Ben Pham from BMO. Your line is open.
Robert Catellier: Okay, thanks for those answers.
Speaker Change: Okay, got it. Thank you.
Speaker Change: Your next question comes from the line of Jeremy Tonet from J.P. Morgan. Your line is open.
Jeremy Tonet: Hi, good morning. Morning.
Jeremy Tonet: We've heard a lot about data centers south of the 49th parallel. I'm wondering if you see anything percolating north of the 49th parallel?
Benjamin Pham: Hi, thanks. Good morning. It's all about the data center comments and that slide you had with the map and the blobs there. Could you comment on which business segment you expect to see the best risk-reward or highest investment opportunity, and are you indifferent somewhat to where you're allocating capital towards that growing opportunity?
Speaker Change: That you could capitalize on.
Michele: Yeah, it's Michele here. So let me talk about Ontario a little bit. And for some of you who may have seen it, I've been told that the grandfather of AI is out of the University of Toronto. And more recently, I heard
Jeremy Tonet: A statistic that there are over 250,000 jobs in Ontario tied to AI, in fact, more than in Silicon Valley.
Speaker Change: Without question, there's a lot of inbounds going on in Ontario right now about data centre growth. I think the ISO is taking a good hard look at things. We know there's a certain amount of...
Gregory Ebel: Yeah, good question. I think they're all going to benefit, maybe not liquids as much, but it's got its own great opportunities. Probably the initial phase you see is GDS, and you saw we announced one today, and Michele and the team there signed up a 50-megawatt lateral for a 50-megawatt plant there. So I think that's probably the easiest move right away.
Speaker Change: Let's call it forum shopping that's going on, seeing where they can get that, but certainly in the GTA, in particular the Southwest GTA, lots of inquiries about data centers, and given the timelines to build transmission and other support, there are absolutely going to be opportunities for behind-the-meter support that we can give on the gas distribution system.
Speaker Change: It's kind of analogous in Ontario to how we've seen the greenhouse business change over the last 20 years, right? Good land, good location, great access to...
Speaker Change: Obviously gas infrastructure, nearness to the border.
Speaker Change: etc. So I wouldn't be surprised to see maybe not the same kind of explosive growth that we've been able to see on the greenhouse side, but definitely a good setup.
Speaker Change: Got it. That's very helpful there. Thanks. And then...
Speaker Change: Just looking at the main line and looking forward a bit more, just curious for any other color that you could share in particularly looking even later dated, I think in the release talked about conversations with regards to incremental egress opportunities. Just wondering if you could expand a bit more on what you see there.
Gregory Ebel: But gas transmission has a lot of opportunities too. As I mentioned during my open comments, there are 600, 700 requests for capacity in the southeast every day. Some of that will be cool for gas trading, but a lot of it's data center driven. Things like storage, obviously that exists both in GTM and in GDS. And then let's not forget Matthew's business on the power side.
Gregory Ebel: And obviously data centers, a lot of those folks are trying to meet, just like a lot of other folks, their lower emission goals. And so they may like gas for the reliability side. And they'll help fund some of these projects with very long-term contracts, kind of like what you saw today. In terms of which ones get the capital,
Gregory Ebel: That's a classic risk adjusted return basis. Obviously, very, very safe capital that goes into the distribution business. If you've got long-term power purchase agreements on the renewable side, same thing. And obviously, there's a tax kicker there that we like. And then GTM, same thing.
Gregory Ebel: So they all have great returns on the equity portion. And then it's a classic discussion of how fast, how quick the cycle of capital can be and the quality of the offtaker. So I think the key is, unlike anybody else, we have an opportunity to participate in all elements of that.
Speaker Change: Indeed, I think with with the strength in supply growth and
Gregory Ebel: So when you look right across the entire system, liquids demand is up. Natty is up. Electrons are up. If you look at the supply side, the same thing. Liquids are up. Natty's up. Electrons are up. And if you've got linear infrastructure and all those pieces, you win. So I think you'll increasingly see us use that interconnectivity to give exactly what our customers want and something that's a differentiated offering from what anybody else has, all of which is a great setup for us to allocate capital to those best opportunities.
Benjamin Pham: Oh, that's great context. Thank you. And maybe, maybe a second question on the US gas utility, acquisitions, now you're closing them or soon to be closed, all of them like what's in the near term focus or initiatives, those buckets. And can you comment on that 8% rate-based growth, the visibility or expectation of how long that could persist?
Michele Harradence: Michele's here, so I'll let her respond. Sure, so initially, we're really focused on integrating the utilities into gas distribution and storage. We stood up an organization to do that even before we announced the deal, and we've been very focused on it. We brought in Ohio now in March, we brought in Utah with that Idaho, Wyoming, and of course, the Wexpro assets in June, and that comes with 2,500 employees, that comes with almost two and a half million customers, and it's gone very, very smoothly so far, and you'll recall that we have a lot of experience We've got about 30 months to work through our TSA with Dominion Energy, so lots of support for them.
Michele Harradence: Of course, the first thing we've been doing is bringing these utilities in and being able to look under the hood a bit more is really testing and understanding those growth opportunities. And I've got to tell you I still really love these utilities. I love the diversification of the growth that we get from these utilities, so Ontario, and let's not forget about Ontario, Ontario is still going strong with its economic growth, about 40,000 customers a year that we sign up there.
Michele Harradence: Utah, Greg mentioned it in his overview, top tier population growth of about 5% annually through 28, so they're attracting well over 20,000 customers a year, and then along with that rate-based growth, Utah has regulatory-approved rider programs that support things like rural expansion, and of course, we just talked about the data center growth that they're seeing along the Wasatch Front. Similarly, Ohio, great growth that's driven primarily through their rider-eligible modernization program; lots of work to do there to upgrade those systems, but again, that's going along really smoothly, and I'm quite confident we'll be just as pleased with North Carolina.
Speaker Change: Appetite to get to...
Speaker Change: U.S. markets continually in the bid, pulling it that way. Industry is casting its eye to the future, like your question, and indeed we are designing and socializing, as I mentioned, an expansion of the mainline.
Speaker Change: In that, you know, late 26, 27 period.
Speaker Change: It would be very capital efficient as.
Speaker Change: As our historic
Speaker Change: Expansions have been, this would be, you know, in right away, very brownfield, you know, more optimization than expansion, so to speak, but we would be looking to add, you know, circa 150,000 barrels a day.
Speaker Change: I'd say I think it'd be quite executable and very economic for industry.
Speaker Change: So, um...
Speaker Change: I think that's, uh, you know, the next...
Speaker Change: Major tranche of egress expansion, we have
Speaker Change: On deck there, but there's also continuing optimizations.
Speaker Change: Like we do every month.
Speaker Change: and have for decades. So, like I say, I think, you know, if you're looking at
Speaker Change: You know, things like basis differentials and things, you know, I'm not that concerned that they're going to blow out again. I think there's going to be solutions at the ready here in time.
Speaker Change: Got it. That's very helpful.
Jeremy Tonet: Your next question comes from the line of Jeremy Tonet from J.P. Morgan. Your line is open.
Michele Harradence: So the growth protections we've given we feel very, very good about for the next several years. Yeah I think that 8% kiger on the rate-based through 27 doesn't really take into account the data center because that was all early days so you know anything we get on that front will be additive so and I like equally so it's not just the rate-based growth is different in each area which I think underlines the ability depending on where you are in the cycle it might be modernization, might be growth, might be data center new builds, maybe changes from coal to gas, all of those pieces and then I think the other thing we're really focused on as well is just that interconnectivity you know where can we utilize gas transmission and or power to help the utilities or vice versa. Okay, got it. Thank you. Your next question comes from the line of Jeremy today.
Michele Harradence: Yeah, it's Michelle here. So, let me talk about Ontario a little bit. And some of you may have seen it.
Speaker Change: Thanks for joining me.
Michele Harradence: I've been told that the grandfather of AI is from the University of Toronto. And more recently, I heard a statistic that there are over 250,000 jobs in Ontario tied to AI, in fact, more than in Silicon Valley. So without question, there's a lot of inbound calls going on in Ontario right now about data center growth. I think the ISO is taking a good hard look at things. We know there's a certain amount of, let's call it forum shopping that's going on, seeing where they can get that.
Michele Harradence: But certainly in the GTA, in particular the Southwest GTA, there are lots of inquiries about data centers. And given the timelines to build transmission and other support, there are absolutely going to be opportunities for behind the meter support that we can give on the gas distribution system. Kind of analogous in Ontario; we've seen the greenhouse business change over the last 20 years, right? Good land, good location, great access to gas infrastructure, nearness to the border, etc.
Speaker Change: Your next question comes from a line of Manav Gupta from UBS. Your line is open.
Michele Harradence: Kind of analogous in Ontario to how we've seen the greenhouse business change over the last 20 years, right? Good land, good location, great access to, obviously, gas infrastructure, nearness to the border, etc.
Michele Harradence: So, I wouldn't be surprised to see maybe not the same kind of explosive growth that we've been able to see on the greenhouse side, but definitely a good setup. Got it. That's very helpful there. Thanks.
Manav Gupta: Thank you guys and positive updates on the data center side. Can you just go back and talk a little bit more about the JV that you announced last quarter you know with MPLX, Whitewater and the benefits of that going ahead. Also you guys have a track record of you know eventually becoming the operators of assets like Grey Oak. So would there be a desire to eventually operate this from the Enbridge side?
Jeremy Tonet: And then just looking at the main line and looking forward a bit more, just curious for any other color that you could share, particularly looking even later dated, I think, in the release talked about conversations with regard to incremental egress opportunities. Just wondering if you could expand a bit more on what you see there. Yeah, sure. Indeed, I think with strength in supply growth. The appetite to get to US markets continually in the bid, pulling it that way.
Colin Gruending: Industry is casting its eye to the future, as in your question. And indeed, we are designing and socializing, as I mentioned, an expansion of the mainline. In that late 26, 27 period, it would be very capital efficient, as our historic expansions have been. This would be in right away, very brownfield, more optimization than expansion, so to speak, but we would be looking to add circa 150,000 barrels a day. Let me say it is quite executable and very economical for industry.
Speaker Change: Thanks Tonet. It's Cynthia. Yeah, it's, we're
Colin Gruending: So, I think that's the next one. You know, major tranche of egress expansion we have on deck there, but there's also continuing optimization, like we do every month and have for decades. So, like I say, if you're looking at things like basis differentials and things, I'm not that concerned that they're going to blow out again. I think there's going to be solutions at the ready here in time. Got it. That's very helpful. Thank you. Thanks for joining us. Your next question comes from a line from Manav Gupta from UBS. Your line is open.
Speaker Change: I'm very pleased with the investments that have been made in Whitewater.
Speaker Change: As you know, we have 19% of those assets, and of course that includes 100% of the Whistler pipeline that provides an incredibly important egress from the Permian.
Manav Gupta: Thanks, Jeanette. It's Cynthia. Yeah, we're very pleased with the investment that we made in Whitewater. As you know, we own 19% of those assets. And of course, that includes 100% of the Whistler pipeline, that provides an incredibly important egress from the Permian, as well as 50% of the Oahu gas storage, and then 70% of the ADCC pipeline that just went into service on July 1.
Speaker Change: as well as 50% of the Oahu gas storage and then 70% of the ADCC pipeline that just went into service on July 1st.
Cynthia Hansen: So, you know, with the announcement of the Blackcomb expansion, that's the kind of expansion that we were really excited about, and it's coming to fruition in a very short period of time. They're great assets, they're great operators, and we're happy to be a part of that. We see future opportunities for growth, of course, now that we're just a minority interest in that, but as part of that, our Rio Bravo pipeline is now going to be operated and constructed through Whistler.
Speaker Change: So, you know, we have, with the announcement of the Black Home expansion, that's the kind of expansion that we were really excited about, and it's coming to fruition in a very short period of time.
Speaker Change: Great assets. They're great operators. We're happy to be a part of that.
Speaker Change: We see future opportunities for growth, of course, you know, now that we're just a minority interest in that, but we have, as part of that, our Rio Bravo pipeline is now going to be operated.
Speaker Change: constructed through Whistler. So these are all great assets. We're happy to work with our partners on that. It allows us to fully participate in that Permian expansion, something that we've looked at for a long period of time.
Cynthia Hansen: So these are all great assets. We're happy to work with our partners on that. It allows us to fully participate in that Permian expansion, something that we've looked at for a long period of time. Now, the future, I think, is very bright. We'll continue to have opportunities to participate there. And, you know, looking for future opportunities in that. Yeah, I think it's well said, you know, we're good
Speaker Change: Now, the future, I think, is very bright. We'll continue to have opportunities to participate there and, you know, looking for future opportunities in that space.
Gregory Ebel: Yeah, I think it's well said. You know, we're good JV operators too. We've had a long history of working in JVs with great partners. Those are great partners. So, you know, I think the future with the structure that exists there today is going to deliver a ton of value, and it's been a great job of the team putting it together.
Speaker Change: Yeah, I think well said, you know, we're good JV operators too. We've had a long history of working in JVs with great partners. Those are great partners.
Speaker Change: You know, I think the future with the structure that exists there today is going to deliver a ton of value and it's been a great job of the team putting it together.
Speaker Change: Thank you for the detailed response. I'll turn it over. Thank you.
Robert Kwan: Your next question comes from the line of Robert Kwan from RBC Capital Markets. Your line is open.
Speaker Change: Thanks.
Speaker Change: Your next question comes from the line of Robert Kwan from RBC Capital Markets. Your line is open.
Robert Kwan: Thank you. Good morning. If I can just start with your strategic priorities and just what you see as the top two or three over the next 12 to 24 months. But can you also specifically comment on whether there are any large projects that you haven't announced yet or other major asset bases or platforms that you feel are important to execute on your strategy that you need to action on in that similar time frame?
Robert Kwan: Thank you. Good morning. If I can just start with your strategic priorities and just what do you see as
Robert Kwan: and the top.
Robert Kwan: Can you also specifically comment on whether there are any large projects that you haven't announced yet or other major asset bases or platforms that you feel are important?
Speaker Change: to execute on your strategy that you need to action on that in that similar time frame.
Gregory Ebel: Well, here's the first three I'd give you, Robert. So the first one is, as always, and we're doing it, and you see we made some adjustments this year, getting the most out of the base assets that we have. How do you get the return on the capital that you already have employed improved? That's exactly how you, you know, get a percent or so of growth out of constantly doing that, and we've got a great track record and are very focused on that.
Robert: Well, here's the first three I'd give you, Robert. So the first one is, as always, and we're doing it and you see we made some adjustments this year, is getting the most out of the base assets that we have. How do you...
Robert: Get the return on the capital that you already have employed.
Robert Kwan: And that's exactly how you get a percent or so of growth out of constantly doing that. We've got a great track record and very focused on that. So that's number one. Number two, integrate the utilities that we've just bought, both from an operational perspective, but also what other opportunities could exist there commercially, etc.
Robert Kwan: Number three, we get $25 billion of projects, which maybe gets to your second question as well. $25 billion of projects that we're executing, 18 or so of which are in the power and gas side, that's a huge element because that's all about future growth.
Robert Kwan: And doing that all within our...
Robert Kwan: Our ability to keep the balance sheet between four and a half and five times.
Speaker Change: That's the primacy out there right now. So those are what I'd say the top three things to focus on right now, and that's a handful. We're always looking for additional new projects. I think as Colin's just laid out, as Cynthia's laid out, and even if you look at both the
Colin: Renewable Backlog, as well as the utility businesses.
Speaker Change: Those don't have massive projects. They got real value-added projects at relatively low bills, so
Gregory Ebel: So, you know, you're doing things in JVs, whether it's whitewater, whether you're adding incremental egress that is actually low multiple bills or things like the Greyhawk stuff we're doing on the Gulf Coast or quick cycle capital that we're seeing at the utilities, you know, a billion and a half or so going to maybe $3 billion that you can turn quickly. That's better than actually focusing on a $10 billion project that may take 10 years to build.
Speaker Change: You know, you're doing things in JVs, whether it's whitewater, whether you're adding incremental egress that is actually low multiple builds or things like the greyhawk stuff we're doing on the Gulf Coast, or quick cycle capital that we're seeing at the utilities.
Robert Kwan: You know, a billion and a half or so.
Gregory Ebel: And then, of course, Matthew did the same thing, you know, got out and bought the TGE assets, and that actually accelerates the growth pattern for renewables and, you know, not having to wait six or seven years there. So I think it's a lot of singles and doubles that add up to a big home run for the corporation.
Robert Kwan: Go on to maybe $3 billion so you can turn.
Robert Kwan: [inaudible]
Robert Kwan: That actually accelerates the growth pattern for renewables and, you know, not having to wait the six or seven years there. So, I think it's a lot of singles and doubles that add up to a big home run for the corporation.
Robert Kwan: Got it. Thanks.
Speaker Change: Got it. Thanks. And if I can just finish to better understand or more color on your guidance.
Robert Kwan: And if I can just finish to better understand or get more color on your guidance. First, just on the main line, you mentioned 3 million barrels a day. You did 3.1 in the first half, so does that imply 2.9 in the second quarter? And you can also say just what you are moving right now or what you moved in July, but also, as you get to DCF per share, can you just talk about any of the adjustments to your original guidance? Or can we just take the base business reconciliation in the report and effectively annualize it? The quarter to get to some of the DCF changes.
Speaker Change: First, just on the main line, you mentioned 3 million barrels a day, you did 3.1 the first half, so does that imply 2.9 in the second quarter, and you can also say just what you are moving right now, or what you moved in July , but just also as you get to DCF per share.
Speaker Change: Can you just talk about any of the adjustments to your original guidance, or can we just take the base business reconciliation in the report and effectively annualize?
Pat Murray: Yeah, so Robert, it's Pat. I think on your volume question, I think Colin even mentioned that, you know, really confident with the 3 million barrels, probably even a little bit of upside there, given where we're at today. Remember, there's a bit of seasonality in the main line, and that heat restriction and stuff sometimes causes us to come down a little lower in that kind of July, August, September timeframe. So we'll see a little bit of that. That has nothing to do with either demand pull or supply push. It's just the way the pipeline operates.
Speaker Change: the quarter to to get to some of the DCF changes.
Pat Murray: Yeah, so Robert, it's Pat. I think on your volume question, I think Colin even mentioned that we're really confident with the 3 million barrels, probably even a little bit of upside there given where we're at today. Remember, there is a bit of seasonality in the mainline and that heat restriction and stuff sometimes causes it to come down a little lower in that kind of July , August , September timeframe. So we'll see a little bit of that. That has nothing to do with either demand pull or supply push. It's just the way the pipeline operates. Feeling really good about that 3 million and even potential upward from there.
Pat Murray: But I feel really good about that 3 million and even potential upward from there. I think the way to think about the new guidance is that... or the recap guidance is that we really just layered on the utility. So the EBITDA, the partial years of EBITDA from each of them, and then all of the financing that we did to kind of de-risk the funding plan over the last 12 months. So from a DCF perspective, it really is just taking the extra shares and the hybrids and debt that we issued and layering that onto the base plan.
Speaker Change: I think the way to think about the new guidance is that...
Speaker Change: or the
Speaker Change: And the recap guidance is that we really just layered on the utility. So the EBITDA, the partial years of EBITDA from each of them, and then all of the financing that we did to kind of de-risk the funding plan over the last 12 months.
Robert Kwan: So, from a DCF perspective, it really is just taking the extra shares and the hybrids and debt that we issued and layering that onto the base plan. It's just kind of as simple as that.
Pat Murray: It's just kind of as simple as that. And I mean, I think it's a really good data point that, you know, we've mentioned, Greg mentioned, we should be in that upper part of the EBITDA guidance, but that's what gives us a lot of confidence as well, that we'll be in that kind of midpoint of our new DCF guidance range, even with all the pre-funding we did, because we knew with partial year EBITDA that that would bring So I am really pleased with the new guidance levels and the way the business is performing.
Greg: And I mean, I think it's a really good data point that, you know, we've mentioned, Greg mentioned, we should be in that upper part of the EBITDA guidance, but that's what gives us a lot of confidence as well, that we'll be in that kind of midpoint of our new DCF guidance range, even with...
Speaker Change: All the pre-funding we did, because we knew with Parsley or EBITDA that that would bring that down a bit. So, really pleased with the new guidance levels and the way the business is performing.
Robert Kwan: Okay, but just on your reconciliation, we can take the maintenance capex in the quarter for the most part and annualize it, and it looks like there's absolutely no tax, incremental tax, involved? Yeah, no meaningful tax from the Trump administration.
Speaker Change: Okay, but just on your reconciliation, we can take the maintenance CapEx in the quarter for the most part and annualize it, and it looks like there's absolutely no tax, incremental tax involved? Yeah.
Pat Murray: Yeah, no meaningful cash tax from the transaction, as I think we mentioned originally. And from a maintenance cap, it'll be a little bit more in the back half because, of course, we didn't add Utah until the beginning of June. So we only have one month in the quarter for that. And then, of course, we're going to add PSNC, it's the smallest of the three utilities. We've already got 80% of the cash flow in, but there'll be a little bit more uptick in the back half of the year, just because we'll have basically all three for almost the full back six months.
Speaker Change: There's no meaningful cash tax from the transaction, as I think we mentioned originally, and from a maintenance cap, it will be a little bit more in the back half, because of course we didn't add...
Robert Kwan: Utah until what beginning of June so we only have one month in the quarter for that and of course, we're going to add PSNC It's the smallest of the three utilities. We've already got 80% of the
Speaker Change: of the cash flow in, but there'll be a little bit more uptick in the back half of the year just because we'll have basically all three for almost the full back six months.
Speaker Change: That's great, thank you.
Keith Stanley: Your next question comes from the line of Keith Stanley from Wolf Research. Your line is open.
Robert: Thanks, Robert.
Speaker Change: Your next question comes from a line of Keith Stanley from Wolfe Research. Your line is open.
Keith Stanley: Hi, good morning, and congrats on a smooth process getting the SLDCs done. I wanted to ask you about the Ohio rate piece that you're in right now, just any impressions of the staff rec that came out?
Keith Stanley: Hi, good morning, and congrats on a smooth process getting the SLDCs done.
Keith Stanley: I wanted to ask on the Ohio rate case that you're in right now, just any impression of the staff rec that came out, and then your level of confidence and visibility on reaching a settlement and constructive outcome there.
Keith Stanley: And then your level of confidence and visibility on reaching a settlement and constructive outcome there.
Michele Harradence: Michelle Harradence, Keith Stanley, Michelle Harradence, Michelle Harradence, that it will take several months to negotiate it. It should be something that gives us an opportunity to earn a fair return, and we definitely expect it to land within the model that we set for the transaction itself, so we're quite confident that we're going to get there.
Speaker Change: Sure, it's Michele here, Keith.
Michele: So as you noted, the staff filed their report in July . It's really not unusual for the regulator staff responses to be different than what we would file in our initial rate applications.
Speaker Change: As you note, I think the TUC in Ohio definitely has a preference to settle, and we certainly think that we should be able to do that with them, and we're looking forward to working with them on that agreement. I would say that...
Keith Stanley: We expect a final determination that should it will take several months to negotiate it. It should be
Speaker Change: It's something that gives us an opportunity to earn a fair return, and we definitely expect it to land within the model that we set for the transaction itself, so we're quite confident that we're going to get there.
Keith Stanley: Great, thanks. And then in the prior question on strategic focus, I don't think you listed
Speaker Change: Great, thanks. And then, in a prior question on strategic focus, I don't think you listed M&A as one piece of that strategic focus. Is that still on the back burner with the gas LDCs pretty much done now, or do you think there'll be opportunities over the near term that could make sense?
Gregory Ebel: M&A is one piece of that strategic focus. But is that still on the back burner?
Gregory Ebel: Unknown Executive, Manav Gupta, Unknown Executive, Manav Gupta, Unknown Executive, Manav Gupta, Well, look, I mean, we always look at M&A. It's always, you know, given the size of the entity and how far and how many different businesses we are involved in both on the buy and the sell side. But I didn't focus on it because I don't see anywhere, as you just stated, something like the utility acquisition, you know, that size of transaction, obviously, a once in a decade type opportunity.
Speaker Change: Well, look, I mean, we always look at M&A. It's always, you know, given the size of the entity and how far and how many different businesses.
Speaker Change: and others were in, both on the buy and the sell side.
Gregory Ebel: So, yeah, we'll look at that again, both on the buy and the sell. But I see that very much in the phrase that we use, the tuck in size, that wouldn't be any where material like, like the utility side of things.
Keith Stanley: focus on it, because I don't see anywhere, as you just stated, something like the utility acquisition, you know, that size of transaction, obviously, kind of once in a decade type opportunity. So, yeah, we'll look at that again, both on the buy and the sell. But I see that very much in the
Keith Stanley: The phrase that we use, the tuck-in size, that wouldn't be anywhere material like the utility side of things.
Theresa Chen: Your next question comes from the line of Theresa Chen from Barclays. Your line is open.
Speaker Change: Thank you.
Speaker Change: Your next question comes from the line of Theresa Chen from Barclays. Your line is open.
Theresa Chen: Morning. Just to dig a little deeper on the Blackcomb discussion. So with the FID, can you remind us if there are any downstream synergies to tie into your existing Texas transmission or storage assets? And I understand you're a minority and a new partner or newer partner in this JV. Just looking at the future of Kermian, going back to some of Cynthia's comments, the visible gas growth, and what seems to be a need for a greenfield pipe maybe every two years.
Theresa Chen: Good morning. Just to dig a little deeper on the block home discussion. So with the FID, can you remind us if there were any downstream synergies to tie into your existing Texas transmission or storage assets?
Speaker Change: I understand you're a minority and a new partner or newer partner in this JV.
Speaker Change: We're just looking at the future of the Permian, going back to some of Cynthia's comments, you know, the visible gas growth and what seems to be a need for a greenfield pipe maybe every two years. Can you share why you think Blackcomb was the winning project, given many projects in competition, and with this commercial win, how the partnership is set up to grow in the outer years, given the visibility for additional gas and breast demand out of the basin?
Theresa Chen: Can you share why you think Blackcomb was the winning project, given many projects in competition and, with this commercial win, how the partnership is set up to grow in the coming years, given the visibility for additional gas demand out of the basin?
Cynthia Hansen: Yeah, thanks, Theresa. As you mentioned, Blackcomb is one of the winners in that space. I think, you know, one of the reasons that the JV with Whistler is set up to be successful is that they have a really strong track record of delivering on time and on budget projects there. So I think that probably is one of the reasons we were attracted to entering into the JV. And I'm sure that that was a contributing factor for why they were successful or were successful with Blackcomb.
Speaker Change: Yeah, thanks, Theresa. As you mentioned, Black Home is one of the winners in that space. I think
Speaker Change: You know.
Speaker Change: One of the reasons that
Speaker Change: The JV with Whistler is set up to be successful is that they have a really strong track record.
Speaker Change: of delivering on-time, on-budget projects there, so I think that probably is something that, that's one of the reasons we were attracted to entering into the JV, and I'm sure that that was a contributing factor for why they were successful, or were successful with Blackcomb.
Cynthia Hansen: You know, as you look at the timing of it, it's something that because it's an intrastate pipeline, they're able to execute quickly. So the completion date for Blackcomb is, you know, in the second half of 26. That's fantastic.
Speaker Change: You know, as you look at the timing of it, it's something that because it's a
Cynthia Hansen: You know, for commercial reasons, any specific questions need to be directed to Whitewater as to what their future is, but from our point of view, they're very well positioned to continue to expand in the Permian. For the infrastructure, as it ties into us, of course, we have a very significant presence in that Aquedulce area with our infrastructure there, and it's great just to see more and more investments and more volumes flow in.
Speaker Change: You know, for commercial reasons, any specific questions need to be directed to Whitewater as to what their future is, but from our point of view, they're very well positioned to continue to expand in the Permian.
Speaker Change: For the infrastructure, as it ties into us, of course, we have a very significant presence in that Aquedulce area with our infrastructure there, and it's great just
Speaker Change: to see more and more investments and more volumes flow in.
Cynthia Hansen: So I think that that all bodes well for our overall infrastructure in that area. But it is, again, one of the reasons why we are so excited to execute on this transaction and be part of the joint venture. There is a very strong operating history for Whistler, and they are very well positioned in the Permian to continue to expand.
Speaker Change: So I think that all bodes well for our overall infrastructure in that area, but it is again one of the reasons why we are so excited to execute on this transaction and be part of the joint venture. There is a very
Unknown Executive: [inaudible]
Speaker Change: Strong operating history for Whistler and they are very well positioned in the Permian to continue to expand
Gregory Ebel: You know, Theresa, I'd only add that this is kind of a copy-paste of the super system built on the liquid side, right? First entered into Hingleside, and then a bunch of JVs and things like Grey Oak and Cactus 2 and stuff, all to feed back into what customers want, an integrated system back to the Permian. And I think, as Cynthia just said, whether it's the JV or additional assets, it's optionality. And that's what we're trying to build down there. That's what customers want.
Speaker Change: You know, Theresa, I'd only add that this is kind of a copy-paste of the super-system built on the liquid side, right? First entered into...
Theresa: into Hingleside and then a bunch of JVs and things like Gray Oak and Cactus 2 and stuff, all to feed back into what customers want, an integrated system back to the Permian.
Cynthia: And I think, as Cynthia just went, whether it's the JV or additional assets, it's optionality. And that's what we're trying to build down there. That's what customers want. And I think that's a winning combination, which you're seeing play out.
Theresa Chen: And turning to the liquid side, the contribution from other systems seems pretty strong over the last two quarters, real, you know, step-ups since last year. Is this a new normal range at this point? Are you still seeing, for example, strong utilization of Express Plus, for example, even with narrowing WCS during the quarter? And how should we think about that line?
Speaker Change: Thank you, and turning to the liquid side, the contribution from other systems seems.
Speaker Change: pretty strong over the last two quarters, real step-ups since last year. Is this a new normal range at this point? Are you still seeing strong utilization of express plastic, for example, even with narrowing WCS during the quarter, and how should we think about that line?
Pat Murray: Yeah, it's Pat here. Yeah, I think you're seeing really good performance out of assets like ExpressPlat and the Bakken system. You also have Southern Lights in there and the new accounting around some of that. But generally, they've all been operating kind of in line with our expectations, but, you know, a little bit better than the prior year. So we continue to see that being, you know, around the track record.
Theresa: Yeah, it's Pat here. Yeah, I think you're seeing really good performance.
Speaker Change: Out of assets like Express Platt, out of the Bakken system, you also have the Southern Lights in there and the new accounting around some of that, but generally they've all been operating.
Speaker Change: kind of in line with our expectations, but, a little bit better than the prior year. So, we continue to see that being...
Pat Murray: You see, I think, in fact, I think that some of the two quarters are almost exactly the same. So that's a pretty good run rate as we move forward here. Colin, I don't know if you have anything to comment on Express additionally. Yeah, I mean, business is good across all three basins we're in, Canada, the Bakken, and the Permian. I think the record set, kind of on a quarterly basis here again, oils aren't and, I think you can count on this generally. We're repeating, we're not giving guidance today for next year, but...
Speaker Change: [inaudible]
Speaker Change: Business is good across all three basins we're in. Canada, the Bakken, and the Permian. I think records set kind of on a quarterly basis here again.
Speaker Change: oils on and
Speaker Change: I think you can count on this generally repeating.
Speaker Change: Strong. Volume up, demand up, need for infrastructure up. We already got it in the ground. I think you can continue to see that happen.
Praneeth Satish: Your next question comes from a line of Praneeth Satish from Wells Fargo. Your line is open.
Speaker Change: Thank you.
Theresa Chen: Thanks, Theresa.
Speaker Change: Your next question comes from a line of Praneeth Satish from Wells Fargo. Your line is open.
Praneeth Satish: Thanks all. So I guess first on data centers with the emerging opportunities in the LDC segments, in the LDC segment. There are just two questions here. First, how are you assessing the CapEx profile for the LDCs? Does the increase in demand for data center connections impact the 1.7 to 2 billion dollars per year of LDC CapEx that you previously highlighted? And then second, how do you see support for data centers evolving from both regulatory agencies and also just public perception as it relates to rates and grid stability?
Praneeth Satish: Thanks all. So, I guess first on data centers with the emerging opportunities in the LDC segments,
Praneeth Satish: in the LDC segment. Just two questions here. First,
Praneeth Satish: How are you assessing the CapEx profile for the LDCs? Does the increase in demand for data center connections, does that impact the $1.7 to $2 billion per year of LDC CapEx that you previously highlighted?
Speaker Change: And then second, how do you see support for data centers evolving from both regulatory agencies and also just public perception as it relates to rates and grid stability?
Pat Murray: From a capital profile, I can take that. I think it's a little early to say that it's going to be significantly more than that in the next year or two here, but we see some more opportunities that are probably upside to that number. I think the important part in my mind is that Greg and Michele both talked about the diversity of capital and the way it grows and the way that we can use riders to get a return on that as quickly as possible.
Speaker Change: From a capital profile, I can take that. I think it's a little early to say that it's going to be significantly more than that in the next year or two here, but we see some more opportunities that are probably upside to that number.
Praneeth Satish: I think the important part, in my mind, is that...
Praneeth Satish: Greg and Michele both talked about the diversity of capital and the way it grows.
Pat Murray: I think this adds one more diverse growth factor in many of the regions we're in, so I don't think we're at the point yet where we would adjust that guidance that we were speaking of, but I think there's an upward bias for sure as a result of what's going on, and maybe Michele can speak about the cost and those discussions.
Speaker Change: and the way that we can use riders to get the return on that as quickly as possible. I think this adds one more diverse growth factor in many of the regions we're in. So I don't think we're at the point yet where we would adjust up that guidance that we were speaking of, but I think there's an upward bias for sure as a result of what's going on, and maybe Michele can speak about the cost and those discussions.
Pat Murray: Yeah, you bet. I mean, it certainly is.
Michelle: Yeah, you bet. I mean, it certainly is. We would see it as outside. It's not something that we had in our model, and I think it's important to note, too,
Michelle: Utah and North Carolina, Ohio, they do have extensive use of the riders, but Utah and North Carolina go in for rate cases every two to three years as well, so it's very quick cycle capital as that comes in if things start to shift.
Michelle: We'll be we'll be able to get that capital in there and and there is.
Michele Harradence: We would see it as upside. It's not something that we had in our model, and I think it's important to note, too, Utah and North Carolina, Ohio, they do have extensive use of the riders, but Utah and North Carolina go in for rate cases every two to three years as well, so it's very quick cycle capital as that comes, and if things start to shift, we'll be able to get that capital in there, and there is, particularly in Utah and North Carolina, a lot of demand for data centers.
Speaker Change: particularly in Utah and North Carolina, a lot of demand for data centers. Ohio, we're a little
Speaker Change: A little on the edge of where the demand center growth is, but we would see that that demand backing up into our regions as well.
Speaker Change: And then with Ontario, of course, we have our ICM, our Incentive Capital Module that we're in the middle of.
Speaker Change: Working through the face to heart rate case to...
Speaker Change: to work out right now. So all of them we would see as upside. In terms of the
Speaker Change: What the regulators are thinking about it, I do think that the regulators are trying to understand what, if any, policy decisions they need to make with regard to data centers. It is a different type of growth.
Speaker Change: and Demand on the System.
Speaker Change: In a world where there's all sorts of demand for that reliable energy and a reliable electricity. So again, though, that's where our natural gas system really steps in to provide that support for that resilience and reliability and affordability that those data centers are looking for, not to mention
Michele Harradence: Again, though, that's where our natural gas system really steps in to provide that support for that resilience, reliability, and affordability that those data centers are looking for, not to mention, as we've talked about on the renewable side as well, so we feel extremely well positioned with it.
Speaker Change: as we've talked about on the renewable side as well. So we feel extremely well positioned with it. Yeah, we may, you know, look, we often talk about being first choice for customers, but also for regulators and policy makers. I mean, one of the ways to deal with.
Gregory Ebel: Yeah, we may, you know, look, we often talk about being the first choice for customers, but also for regulators and policymakers. I mean, one of the ways to deal with if there are concerns about that from a rate perspective is to do it through GTM.
Gregory Ebel: And, you know, you build a lateral there, and storage, which is more on a contractual basis, as you know, doesn't hit others. I think the key here is you want to have lots of tools, and we have them, and you want to be in a lot of jurisdictions. I know a lot of discussion about Virginia being a great place for data sets. That's true. It's also a highly densely populated area where, you know, Utah and parts of North Carolina may not be the same and are also hugely known. You know, Utah is the Silicon Slope and obviously the technology triangle in North Carolina, too. So there are more places to be able to build. And if you're in those locations, you've got the opportunity.
Speaker Change: If there are concerns about that from a rate perspective is you do it through GTF and, you know, you build a lateral there and storage, which is more on a contractual basis, as you know, doesn't hit others. I think the key here is you want to have lots of tools and we have them and you want to be in a lot of jurisdictions.
Speaker Change: I know a lot of discussion about Virginia being a great place for data set. That's true. It's also a highly...
Speaker Change: Dense Population Area
Speaker Change: where, you know, Utah and parts of North Carolina may not be the same.
Speaker Change: and are also hugely known, you know, Utah is the...
Speaker Change: Silicon Slope, and obviously the...
Speaker Change: the technology triangle in North Carolina too. So there are more places to be able to build, and if you're in those locations, you've got the opportunity. So I think it's, what does Colin often call the liquid system, a bit of a tool in a...
Gregory Ebel: So I think it's what Colin often called the liquid system a bit of a tool in a, what do you call it, kind of knife? A Swiss Army knife.
Gregory Ebel: There we go. So I think that's the same thing right across the entire system. So, yeah, game on for us.
Colin: What do you call it? What kind of knife? A Swiss Army knife. A Swiss Army knife. There we go. So, I think that's the same thing right across the entire system. So, yeah, game on for us.
Praneeth Satish: Yeah, that makes a lot of sense. And just quickly on mainline, you know, with it being apportioned every month this year, can you help quantify how much headroom is remaining within the ROE collar? I know you said you're earning in the upper half, but I guess I'm just curious how close you are to the ceiling and whether you're on pace to hit the ceiling if current market conditions persist. Yeah, thanks. So I think
Speaker Change: Yeah, that makes a lot of sense. And just quickly on mainline, you know, with it being apportioned every month this year, can you help quantify how much headroom is remaining within the ROE collar? I know you said you're earning in the upper half, but I guess I'm just curious how close you are to the ceiling, and whether you're on pace to hit the ceiling if current market conditions persist.
Unknown Executive: Yeah, thanks. So I think we are just above the midpoint of that in 2024. I think in 2025 we're probably a little higher yet, and in 2026 we're probably approaching.
Speaker Change: Yeah, thanks. So I think we are...
Speaker Change: Just above the midpoint of that, in 2024, I think, you know, 2025 we're probably a little higher yet, and in 26 we're probably approaching.
Unknown Executive: The top so that's it's all working. It's kind of as intended. It's a win for everyone here. We're moving a lot of volumes. , , , , , , , , , , , , , , Keep an Attractive Economics for All Our Customers.
Speaker Change: So it's all working kind of as intended.
Speaker Change: It's a win for everyone here. We're moving a lot of volumes.
Speaker Change: Keep an attractive economics for all our customers.
Patrick Kenny: Your final question comes from the line of Patrick Kenny from National Bank Financial. Your line is open.
Speaker Change: Got it. Thank you.
Speaker Change: Your final question comes from the line of Patrick Kenny from National Bank Financial. Your line is open.
Patrick Kenny: Yeah, good morning. Just a follow-up on the discussion around further asset sales. Outside of receiving an attractive financial package, I'm just wondering if, more so from a strategic standpoint, if you're still actively pursuing additional minority sell-down opportunities with Indigenous groups. And if so, you know, which regions or franchises? Might you be keen to execute partnerships for, you know, similar to your deal that you did on your oil sands pipelines?
Patrick Kenny: Yeah, good morning. Just to follow up on the discussion around further asset sales, outside of receiving an attractive financial
Patrick Kenny: I'm just wondering if, more so from a strategic standpoint, if you're still actively pursuing additional minority sell-down opportunities with Indigenous groups.
Speaker Change: And if so, which regions or franchises might you be keen to execute partnerships for, similar to your deal that you did on your oil sands pipelines?
Gregory Ebel: Yeah, for sure. I think we're one of the trailblazers on that front. This quarter, we announced not a sell-down but a go-forward project in Saskatchewan that is, you know, very much a collaboration between the renewables group and the liquids group. You know, we've always talked about other opportunities on the liquid side, and I know Cynthia and her team are looking at that as well on the gas side. So, I think right across the board that yes, that is, that's different than saying selling an asset to raise funds. We don't need to do that.
Speaker Change: Yeah, for sure. You look, I think we've, one of the trailblazers on that front, you just saw this quarter we announced not a sell-down, but a go-forward project in Saskatchewan that
Speaker Change: You know, very much a collaboration between the renewables group and the liquids group. You know, we've always talked about other opportunities on the liquid side, and I know Cynthia and her team are looking at that as well on the gas side. So, I think right across the board, yeah.
Speaker Change: That's different than saying selling an asset to raise funds. We don't need to do that.
Gregory Ebel: This is really, when you do those things, it's about relationships, about doing the right thing. It's about future opportunities. And, you know, there are a lot of stakeholders to deal with. And we believe that, you know, if you do these transactions wisely, with respect, in the heart of reconciliation, that's going to help you in the community overall. That's going to help you deliver on those projects.
Speaker Change: This is really, when you do those, it's about relationships, about doing the right thing, it's about future opportunities.
Speaker Change: And, you know, there's a lot of stakeholders to deal with.
Speaker Change: And we believe that, you know, if you do these transactions wisely, with respect, in the heart of reconciliation, that's going to help you in the community overall, that's going to help you deliver on those projects, and all that is value-adding to Enbridge's proposition.
Gregory Ebel: Well, yeah, we've said this before, with all the work that we're doing in British Columbia, it's obviously an area that we're looking at. We have recently filed with the CER an opportunity to allow us to do...
Speaker Change: I don't know, Jamie, if there's anybody else that wants to...
Jamie: Well, yeah, we've said this before, with all the work that we're doing in British Columbia, it's obviously an area that we're looking at. We have recently filed with the CER an opportunity to allow us to do that in British Columbia with our West Coast system. So, it's something that we're always actively looking at to make sure that
Speaker Change: We can support the Indigenous Economic Reconciliation.
Gregory Ebel: If you're keeping track, we've got, I think, four announced. Coal Co-Investment Partnerships now, right? East-West Thailand, Ontario, Northern Alberta on a liquid system. Carbon Hub near Edmonton and Weyburn. So that's lost track, but there are three or four different asset classes there. And just, you know, you're probably looking at them from a financial lens, but if you haven't. I checked it out, we've got a published Indigenous Reconciliation Action Plan on our website, and economic participation is a major tenant of that plan.
Speaker Change: If you're keeping track, we've got I think four announced.
Speaker Change: Co-Investment Partnerships now right? East-West Thailand, Ontario, Northern Alberta on a liquid system.
Speaker Change: The Carbon Hub near Edmonton and the Weyburn. So that's lost track, but there's three or four different asset classes there. And just, you know, you're probably looking at it from a financial lens, but if you haven't...
Speaker Change: Check it out, we've got a published Indigenous Reconciliation Action Plan on our website. Economic participation is a major tenant of that plan.
Patrick Kenny: Okay, that's perfect. Thanks for that. And then maybe on Ingleside and the record exports there in the quarter, just wondering if you could provide any additional color on the contracting profile of the facility and, you know, perhaps an update on how your volumes might be protected from competing export terminals potentially coming online along the Gulf Coast, as well as how we should be thinking about further upside and throughput based on, you know, some of your near-term initiatives underway.
Speaker Change: and, of course, I'm going to have you as my guest speaker. We appreciate you being here. I'm going to turn it back over to you, and we'll see you next time.
Speaker Change: Okay, that's perfect. Thanks for that. And then maybe on Engel's side and the record exports there in the quarter, just wondering if you could provide any additional color on the contracting profile of the facility and, you know, perhaps an update on how your volumes might be protected from competing export terminals potentially coming online along the Gulf Coast.
Speaker Change: As well as, you know, how we should be thinking about further upside and throughput based on, you know, some of your near-term initiatives underway.
Colin Gruending: Yeah, I'll try to abbreviate the answers while I'm in there. Listen, I think we feel really good about our position there. It's the number one market share terminal in the U.S., and it has its advantages, as we've talked about in many respects. So customers want to come there.
Speaker Change: I'll try to abbreviate the answers while I'm in there. Listen, I think we feel really good about our position there. It's the number one.
Speaker Change: Marketshare terminal in the U.S. and it has its advantage as we've talked about in many respects.
Colin Gruending: We've been quite busy there recently. The trends are encouraging, you know; there's another million barrels a day of Permian volume coming. I think we'll capture our share of that given that advantage. Math. Here's a stat for you. The facility has, to date, moved three billion barrels of oil off the dock.
Speaker Change: So customers want to come there. We've been quite busy there recently. The trends are encouraging. You know, there's another million barrels a day of Permian volume coming.
Speaker Change: I think we'll capture our share of that, given that advantage.
Speaker Change: Math. Here's a stat for you. The facility, to date, has moved three billion barrels of oil off the dock.
Colin Gruending: It's a major and central part of the plumbing in the Permian, and I think it's going to endure as long as we have life left on our contract here. And, you know, as we look at, I guess, competitive situations there. And I'm not sure which competitors you're referring to, but essentially, you're thinking about offshore bullies that are conceptually out there. I think we're going to compete fine with them. Keith Stanley, Robert Kwan, Gregory Ebel, Robert Hope, Robert Kwan, Gregory Everen, Benjamin Pham, Praneeth Satish, Theresa Chen, Pamela Carter, Jody Whitney, Zackery Everen, for this facility for the same advantages it has.
Speaker Change: It's a major and central
Speaker Change: part of the of the plumbing in the Permian. I think it's going to endure. We have life left on our contract here.
Speaker Change: And, you know, as we look at, I guess, competitive situations there,
Speaker Change: and I'm not sure which which competitors you're referring to but essentially you're thinking about offshore bullies that you know are conceptually out there I think we're going to compete fine with them
Speaker Change: [inaudible]
Speaker Change: If they do come into play, I think the smaller, older,
Speaker Change: Less advantaged terminals will...
Speaker Change: may lose some market share there. So we think we're in pretty good shape here. We're going to grow this. It is the Swiss Army knife. And we're also going to bring other commodities to this
Speaker Change: for this facility for the same advantages it has incurred.
Colin Gruending: That's great, Colin. Thank you very much.
Speaker Change: That's great, Colin. Thank you very much.
Rebecca Morley: And that concludes our question and answer session. I will now turn the call back over to Rebecca Morley for her closing remarks.
Colin: Thank you.
Speaker Change: And that concludes our question and answer session. I will now turn the call back over to Rebecca Morley for closing 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 Morley: 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.
Unknown Executive: This concludes today's conference call. Thank you for your participation. You may now disconnect.
Speaker Change: This concludes today's conference call. Thank you for your participation. You may now disconnect.
Speaker Change: www.globalonenessproject.org