Q1 2025 Enbridge Inc Earnings Call

Rebecca Morley: Unknown Speaker I like our new Good morning, and welcome to the Enbridge first quarter 2025 financial results My name is Rebecca Morley and I'm the Vice President of Investor Relations. Joining me this morning are Greg Ebel, President and CEO, Pat Murray, Executive Vice President and Chief Financial Officer, and the heads of each of our businesses. Colin Gruending, Liquid Pipelines, Cynthia Hansen, Gas Transmission, Michele Harradence, Gas Distribution and Storage, and Matthew Akman, Renewable Power.

Yeah.

Like our new.

Rebecca Morley: Good morning, and welcome to the Enbridge first quarter 'twenty 25 financial results Conference call. My name is Rebecca Morley and I'm, the Vice President of Investor Relations.

Greg Evil: Joining me this morning are Greg evil, President and CEO Pat.

Greg Evil: Pat Murray Executive Vice President and Chief Financial Officer, and the heads of each of our business units, calling grunting liquids pipeline.

Greg Evil: Cynthia Hansen gas transmission.

Greg Evil: Michelle Harridan gas distribution and storage and Matthew Ackman renewable power.

Operator: 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. If you would like to withdraw your question, simply press star followed by the number one.

Speaker Change: 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.

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 he would like to withdraw your question simply press star followed by the number one.

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

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

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

Speaker Change: We will 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're a member of the media. Please direct your inquiries to our communications team, who will be happy to respond.

Rebecca Morley: As always, our investor relations team will be available following the call for any follow up On to slide two, where I'll remind you that we'll be referring to forward looking information on today's presentation and question and answer period. 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 filing. We'll also be referring to non-GAP measures summarized below.

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

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

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

Speaker Change: We'll also be referring to non-GAAP measures summarized below.

Greg Ebel: And with that, I'll turn it over to Greg Ebel. Thanks very much, Rebecca. And good morning, everyone. Thanks for joining us on the call today. As all of you know, markets have seen significant financial and commodity price volatility to start the year. But despite the unique challenges 2025 has already presented, Enbridge is operating from a position of strength. We're actively working with policymakers and regulators to advocate for new infrastructure on both sides of the border that will serve customers throughout North America and meet increasing global demand through growing Our large diversified footprint continues to deliver safe, reliable and affordable energy to our customers.

Greg Evil: With that I'll turn it over to Greg evil. Thanks.

Greg Evil: Thanks, very much Rebecca and good morning, everyone. Thanks for joining us on the call today.

Greg Evil: As all of you know markets have seen significant financial and commodity price volatility to start the year, but despite the unique challenges 2025 has already presented and bridges operating from a position of strength.

Greg Evil: We're actively working with policymakers and regulators to advocate for new infrastructure on both sides of the border that will serve customers throughout North America and meet increasing global demand through growing exports are large diversified footprint continues to deliver safe reliable and affordable energy to our customers.

Greg Ebel: Our low-risk, utility-like business model is driving predictable financial results, and I'm pleased to say that the first quarter was a record trend.

Greg Evil: Our low risk utility like business model is driving predictable financial results and I'm pleased to say that the first quarter was a record for enbridge.

Greg Ebel: We're going to start today with a brief recap of our first quarter highlights. Pada will then review the team's success on execution and continued growth. And from there I'll provide an update on each of our four core franchises. And then Pada will review our financial results and discuss our capital allocation priorities.

Greg Evil: To start today with a brief recap of our first quarter highlights.

Greg Evil: Then reviewed the team's success on execution and continued growth from there I'll provide an update on each of our four core franchises and then Peter will review, our financial results and discuss our capital allocation priorities Lastly, I'll close the presentation with a few comments on our first choice value proposition before we.

Greg Ebel: Lastly, I'll close the presentation with a few comments on our first choice value proposition before we open the call for your questions. During the first quarter, we delivered record EBITDA DCF per share and earnings per share driven by contributions from the U.S. utilities we acquired last year and strong volumes across the business overall. We don't expect tariffs or global trade war to have a material impact on our current operations and are therefore very confident reaffirming our 2025 financial guidelines. We remain committed to maintaining our debt-to-EBITDA metric between 4.5x to 5x and expected that leverage ratio to improve throughout the year as we realize full-year contributions from the acquired U.S.

Greg Evil: <unk> open the call for your questions.

Greg Evil: During the first quarter, we delivered record EBITDA DCF per share and earnings per share driven by contributions from the U S. Utilities, we acquired last year and strong volumes across the business overall.

Greg Evil: We don't expect tariffs or global trade war to have a material impact on our current operations and are therefore, very confident reaffirming our 2025 financial guidance.

Greg Evil: We remain committed to maintaining our debt to EBITDA metric between four and a half times to five times and expect that that leverage ratio to improve throughout the year as we realized full year contributions from the acquired U S utilities.

Greg Ebel: Our assets were highly utilized during the quarter with records on the mainline and at Ingleside. We announced an open season on Flanagan South as part of the first phase of our mainline optimization. And we're receiving strong shipper interest so far.

Greg Evil: Our assets were highly utilized during the quarter with records on the mainline and at Ingleside.

Greg Evil: We announced an open season on Flanagan South as part of the first phase of our mainline optimization plans and we're receiving strong shipper interest. So far we look forward to providing you an update on our progress in the coming months.

Greg Ebel: We look forward to providing you an update on our progress in the coming months. In our renewables business, we brought the Orange Grove solar facility into service on time and on budget, showcasing the quick-cycle, capital-efficient nature of our solar investment. and another growth front, we've agreed to acquire a 10% interest in the Matterhorn Express Pipeline, a two and a half BCF per day long haul pipeline connecting the Permian Basin to growing U.S. Gulf Coast demand. We also sanctioned the Traverse pipeline earlier this quarter. Upon completion in 2027, Traverse will offer bidirectional service between Katy and Aguadulce along the Gulf Coast.

Greg Evil: In our renewables business, we brought the Orange Grove solar facility into service on time and on budget showcasing the quick cycle capital efficient nature of our solar investments.

Greg Evil: Hansen, and another growth front we've agreed to acquire a 10% interest in the Matterhorn Express Pipeline, a two and a half BCF per day long haul pipeline connecting the Permian Basin to growing U.S. Gulf Coast demand.

Greg Ebel: We are making great progress on the Opportunity Set we laid out for you at Investor Bay and anticipate future announcements in 2025 and through 2026 to service growing natural gas demand from data centers, coal-to-gas generation switching, and LNG supply, similar to those we've announced these past few months.

Greg Evil: We are making great progress on the opportunity set we laid out for you at Investor day, and anticipate future announcements in 2025 and through 2026th to service growing natural gas demand from data centers coal to gas generation switching and the LNG supply.

Greg Evil: To those we've announced these past few months.

Greg Ebel: Now let's put all of this together and talk about the great progress we've made executing on disciplined growth across our business. Strong demand for safe, reliable, and affordable energy has allowed us to secure $3 billion of accretive, low-risk projects year-to-date. In addition to the projects I just mentioned, we also announced that we plan to invest up to $2 billion in the mainline to support operational efficiencies, system reliability, and extend the life of the asset. And we sanctioned Birch Grove, which is an approximately 180 million cubic feet per day expansion on our T-North system that will support West Coast L&D.

Greg Evil: Now, let's put all of this together and talk about the great progress, we've made executing our disciplined growth across our business.

Greg Evil: Strong demand for safe reliable and affordable energy has allowed us to secure a $3 billion of accretive low risk projects year to date.

Greg Evil: In addition to the projects I just mentioned, we also announced that we plan to invest up to $2 billion in the mainline to support operational efficiencies system reliability and extend the life of the asset.

Greg Evil: And we sanctioned Birch Grove, which is an approximately 180 million cubic feet per day expansion on our T. North system that will support West Coast LNG.

Greg Ebel: I'm very happy with the progress we've made thus far this year as we've continued to sanction projects and add visibility to the growth outlook shared at our VISTA Day in March. I think we are really seeing and will continue to see our low risk resilient business model shine. We have industry leading diversification and cash flow quality, which produces stable, predictable results in all economic and commodity cycles. Our strategically positioned demand-pull assets are expected to remain highly utilized, despite the ongoing global trade conflict, and we expect tariffs will have a negligible impact on our economy. We've not seen a material impact on our input costs for projects already sanctioned and will remain disciplined as we continue to monitor the evolving trade situation.

Greg Evil: I'm very happy with the progress we've made thus far this year as we've continued to sanction projects and add visibility to the growth outlook shared at our Investor day in March.

Greg Evil: We are really seeing and we'll continue to see our low risk resilient business model shot.

Greg Evil: We have industry, leading diversification and cash flow quality, which produces stable predictable results in all economic and commodity cycles are strategically positioned demand pull assets are expected to remain highly utilized despite the ongoing global trade conflicts and we expect tariffs will have a negligible.

Greg Evil: <unk> on our financial results.

Greg Evil: We've not seen a material impact on our input costs for projects already sanctioned and we'll remain disciplined as we continue to monitor the evolving trade situations.

Greg Ebel: The diversification of our business has been key to our success. With the addition of three premier U.S. gas utilities and new assets placed in the service, we now have over 200 assets. and businesses generating steady, high-quality cash flow. Our commercial structure has never been more low risk with over 98% of EBITDA protected by regulated or take-or-pay framework. That industry-leading, low-risk model supports our balance sheet, reflected in our investment grade credit rating and minimal counterparty risk. We have negligible commodity price explosion and over 80% of our EBITDA has inflation protection with built-in escalators or regulatory means to recover.

Greg Evil: The diversification of our business has been key to our success with the addition of three Premier U S gas utilities and new assets placed into service. We now have over 200 asset streams and businesses generating steady high quality cash flows.

Greg Evil: Our commercial structure has never been more low risk with over 98% of EBITDA protected by regulated or take or pay frameworks.

Greg Evil: That industry, leading low risk model supports our balance sheet reflected in our investment grade credit rating and minimal counterparty risk.

Greg Evil: We have negligible commodity price exposure and over 80% of our EBITDA has inflation protection with built in escalators or regulatory means to recover.

Greg Ebel: So with Enbridge, you get a safe and reliable investment with attractive growth opportunities.

Greg Evil: So with Enbridge, you get a safe and reliable investments with attractive growth opportunities.

Greg Ebel: Now let's jump into the business updates for the quarter. It was a strong start to the year in liquids, with MainLine delivering record first quarter volumes of almost 3.2 million barrels. In order to keep the existing mainline as available and reliable as possible, and at the same time extend its useful life, we're planning to invest up to $2 billion to continue delivering first choice, customer service, and optimizing capacity. That capital will earn a return under the mainline toll settlement framework within our 11 to 14% ROE color, providing strong risk adjusted returns for an We continue to advance mainline optimization initiatives and expect the first phase to reach FID later this year.

Greg Evil: Now, let's jump into the business updates for the quarter.

Greg Evil: It was a strong start to the year and liquids with mainline delivering record first quarter volumes of almost $3 2 million barrels per day in.

Greg Evil: In order to keep the existing mainline as available and reliable as possible and at the same time extend its useful life, we're planning to invest up to $2 billion to continue delivering first choice customer service and optimizing capacity.

Greg Evil: That capital will earn a return under the mainline toll settlement framework within our 11% to 14% early color providing strong risk adjusted returns for Enbridge.

Greg Evil: We continue to advance mainline optimization initiatives and expect the first phase to reach FID.

Greg Evil: Later this year.

Greg Ebel: That phase includes 150,000 barrels a day of incremental capacity and includes a downstream expansion on Flanagan South, of which I spoke about earlier.

Greg Evil: That phase includes a 150000 barrels a day of incremental capacity and includes a downstream expansion on Flanagan south of which I spoke about earlier as.

Greg Ebel: As mentioned at Enbridge Day, we are also advancing other opportunities to build incremental egress out of the Western Canadian Sedimentary Basin as the growth outlook remains strong with approximately 1 million barrels per day of supply expected to come on stream by 2035.

Greg Evil: As mentioned at Enbridge day, we're also advancing other opportunities to build incremental egress out of the western Canadian sedimentary basin as the growth outlook remains strong with approximately 1 million barrels per day of supply expected to come on stream by 2035.

Greg Ebel: South of the border, Ingleside recorded another quarterly volume record, benefiting from the increased operational capacity that came with the docks we acquired last year. We will continue to develop the site and expect to place another 2.5 million barrels of storage into service later this year.

Greg Evil: South of the border Ingleside recorded another quarterly volume record benefiting from the increased operational capacity that came with the dots we acquired last year.

Greg Evil: We will continue to develop the site and expect to place another $2 5 million barrels of storage into service later this year.

Greg Ebel: On the gas transmission front, our growing footprint puts us in an excellent position to serve increasing natural gas demand from new LNG facilities, coal-to-gas transitions, and data centers. We continue to build our Permian franchise with our announcements to acquire a 10% interest in the Matterhorn pipeline for cash consideration of approximately $300 million. This 2.5 BCF per day operating asset is complementary to the Traverse pipeline we previously sanctioned with our partners in April. These announcements enhance our Permian super system and provide shippers with optionality to access the best demand markets across the U.S. Gulf Coast. Both pipelines are contracted under long term take or pay arrangements with investment grade We received FERC approval for a Ridgeline expansion last month, enabling the coal-to-gas transition of the Kingston Combined Cycle Facility in Tennessee with in-service expected in 2027.

Greg Evil: On the gas transmission front, our growing footprint puts us in an excellent position to serve increasing natural gas demand from new LNG facilities coal to gas transitions and data centers.

Greg Evil: We continue to build our Permian franchise with our announcement to acquire a 10% interest in the Matterhorn pipeline for cash consideration of approximately $300 million.

Greg Evil: This two five Bcf per day operating asset is complementary to the traverse pipeline, we previously sanctioned with our partners in April.

Greg Evil: These announcements enhance our Permian Super system and provides shippers with optionality to access the best demand markets across the U S Gulf Coast.

Greg Evil: Both pipelines are contracted under long term take or pay arrangements with investment grade counterparties.

Greg Evil: We received FERC approval for original expansion last month, enabling the coal to gas transition of the Kingston combined cycle facility in Tennessee with in service expected in 2027.

Greg Ebel: We continue to experience strong demand for our U.S. Gulf Coast gas storage assets and recently completed open seasons at Trace Palacios, Egan, and Moss Bluffs, and are engaging with customers around potential future growth opportunities.

Greg Evil: We continue to experience strong demand for our U S Gulf Coast gas storage assets and recently completed open seasons that trace flashes Egan and Moss Bluff and are engaging with customers around potential future growth opportunities lastly.

Greg Ebel: Lastly, we previously announced an expansion of our TNOR system to serve growing LNG demand off the Canadian.

Greg Evil: Lastly, we previously announced an expansion of our <unk> system to serve growing LNG demand off the Canadian West Coast.

Greg Ebel: Now let me illustrate the growing Permian footprint that we've established since our initial investment only a year ago. Today, our Permian natural gas franchise provides up to 5 BCF per day of egress from the basin, with another 2.5 BCF per day expected to come online beginning in 2026 via the Blackcomb Pipeline. The recently sanctioned Bidirectional Traverse Pipeline will provide transportation between Katy, Texas, and Aguadulce by 2027, ensuring customers have optionality between key market The VBR system provides 3.5 BCF a day of intrabasin capacity and is a key supply conduit for Whistler and Matterhorn. We also have an interest in 2BCF of operating storage capacity at OAHA and are connected to Corpus Christi LNG through the ADCC pipeline.

Greg Evil: Now, let me illustrate the growing Permian footprint that we've established since our initial investment only a year ago.

Greg Evil: Today, our Permian natural gas franchise provides up to five Bcf per day of egress from the basin with another two five Bcf per day expected to come online beginning in 2026 via the black comb pipeline.

Greg Evil: The recently sanctioned by directional traverse pipeline will provide transportation between Katy, Texas and I don't see by 2027, ensuring customers have optionality between key market hubs.

Greg Evil: The DPR system provides three five Bcf a day of intra basin capacity and as a key supplier conduit for Whistler and Matterhorn.

Greg Evil: We also have an interest in two bcf of operating storage capacity at Wawa and are connected to Corpus Christi LNG through the ADC pipeline.

Greg Ebel: After we close Matterhorn, Enbridge will have acquired 2 billion of operating assets and added over a billion of growth projects which are expected to be built at roughly six times EBITDA multiple. And in 2026, after Blackcomb enters service, we expect to have an equity interest in 30% of all the Permian egress capacity. Our investment in this portfolio positions Enbridge to capture growing demand for permeant gas across the U.S. Gulf Coast and provides even more embedded growth opportunities that will leverage our scale and existence.

Greg Evil: After we close Matterhorn Enbridge will have acquired 2 billion of operating assets and added over $1 billion of growth projects, which are expected to be built at roughly six times EBITDA multiples.

And in 2026 after black Com enter service, we expect to have an equity interest in 30% of all the Permian egress capacity.

Greg Evil: Our investment in this portfolio positions enbridge to capture growing demand for Permian gas across the U S. Gulf Coast and provides even more embedded growth opportunities that will leverage our scale and existing footprint.

Greg Ebel: Now let's turn to our gas utility business.

Greg Evil: Now, let's turn to our gas utility business. This is an exciting first year of us owning our U S utilities and we are in rate cases in the four major jurisdictions and look forward to working with all stake holders to deliver safe reliable and affordable energy.

Greg Ebel: This is an exciting first year of us owning our U.S. utilities, and we are in rate cases in the four major jurisdictions and look forward to working with all stakeholders to deliver safe, reliable and affordable energy. As we continue to grow our utilities, constructive regulatory outcomes are very much informing our capital allocation strategy. Given the increasingly rich opportunity set across all our We will allocate capital based on the best risk-adjusted returns, including the economic and regulatory environment.

Greg Evil: As we continue to grow our utilities constructive regulatory outcomes are very much informing our capital allocation strategy.

Greg Evil: Given the increasingly rich opportunity set across all our business units, we will allocate capital based on the best risk adjusted returns, including the economic and regulatory environment.

Greg Ebel: In Ontario, we recently received permission to begin construction on the St. Laurent pipeline replacement program, which is expected to be completed in stages and will be fully in service by the end of Moving to the U.S., we expect to receive a decision on our Ohio rate case in the second half of this year, and we filed rate case applications in North Carolina and Utah in April and May respectively. We expect rates to be affected by year end, ensuring fair returns for our shareholders and supporting continued investment in critical energy infrastructure through the back half of the decade.

Greg Evil: In Ontario, we recently received permission to begin construction on the Saint <unk> pipeline replacement program, which is expected to be completed in stages and will be fully in service by the end of 2026.

Greg Evil: Moving to the U S. We expect to receive a decision on our Ohio rate case in the second half of this year and we filed rate case applications in North Carolina, and Utah in April and May respectively.

Greg Evil: We expect rates to be effective by year end, ensuring fair returns for our shareholders and supporting continued investment in critical energy infrastructure through the back half of the decade.

Greg Ebel: Now let's jump on to renewable power. The 130 megawatt Orange Grove Solar recently entered service on time and on budget, and it's now generating electricity for the ERCOT power zone. Between Orange Grove and the first stage of Sequoia, we expect to place over 500 megawatts of solar into service this year, entirely backstopped by investment-grade blue-chip customers. Given the unprecedented demand for power generation across North America, we also anticipate further FID announcements over the next year, driven by data center electricity.

Greg Evil: Now lets jump on to renewable power. The 130 megawatt Orange Grove Solar recently entered service on time and on budget and it's now generating electricity for the ERCOT power zone.

Greg Evil: Tween Orange Grove in the first stage of Sequoia, we expect to place over 500 megawatts of solar into service. This year entirely backstopped by investment grade Egypt customers.

Greg Evil: Given the unprecedented demand for power generation across North America. We also anticipate further announcements over the next year driven by data center electricity needs.

Greg Ebel: The policy landscape for renewables is dynamic, but we think we are well-positioned with our portfolio of late-stage development projects. As always, we'll stick to our capital discipline and only approve projects that meet our risk and return hurdles.

Greg Evil: The policy landscape for renewables as dynamic, but we think we are well positioned with our portfolio of late stage development projects as always we will stick to our capital discipline and only approve projects that meet our risk and return hurdles.

Greg Ebel: In our European portfolio, Calvados Wind continues to make progress with new pylon installations and technical work.

Greg Evil: In our European portfolio Calvados wind continues to make progress with new pilot installations and technical work ongoing now.

Patrick Murray: Now I'll pass it off to Pat to review our financial.

Speaker Change: Now I will pass it off the path to review our financial performance.

Patrick Murray: Thanks, Craig. And good morning, everyone. 2025 is off to a great start. We posted new quarterly records across all metrics. Compared to the first quarter of 2024, adjusted EBITDA is up 18%, DCF per share up 6%, and earnings per share is up 12%. In liquids, higher mainline volumes and annual toll escalators led to higher results versus 2024.

Rebecca Morley: Thanks, Greg and good morning, everyone 2025 is off to a great start.

Rebecca Morley: Most of new quarterly records across all metrics compared to the first quarter of 2024, adjusted EBITDA is up 18% DCF per share up 6% and earnings per share is up 12% and.

Rebecca Morley: In liquids mainline volumes and annual toll escalators led to higher results versus 2024.

Rebecca Morley: Gas transmission revised rates that Algonquin, Texas, Eastern and Maritimes northeast drove higher contributions across our large U S gas transmission pipes.

Patrick Murray: U.S. Special Envoy to House National Long-Term Development, and President Cheney, on meeting Venice Extension entered service at the end of 2024 and the Whistler JV and DBR system acquisitions are also providing the expected incremental contributions year over year. Notably, gas transmission is up 13% from this time last year, despite the absence of contributions from Alliance and Oxable, which were sold in 2024. Our gas distribution segment realized a full quarter of contributions from all three U.S. gas utilities acquired in 2024, driving the majority of the year-over-year increase within the business. In Ontario, customer growth and rate increases alongside colder weather resulted in $170 million EBITDA increase compared to the first quarter of 2024.

Rebecca Morley: Ventas extension entered service at the end of 2024, and the Whistler JV and DVR system acquisitions are also providing the expected incremental contributions year over year.

Rebecca Morley: Notably gas transmission is up 13% from this time last year. Despite the absence of contributions from alliance like Sable, which were sold in 2024.

Rebecca Morley: Our gas distribution segment realized a full quarter of contributions from all three U S gas utilities acquired in 2020 for driving the majority of the year over year increase within the business.

And Ontario customer growth and rate increases alongside colder weather resulted in a 170 million of EBITDA increase compared to the first quarter of 2024.

Patrick Murray: In renewables, lower-end resources at the European offshore assets were partially offset by stronger resources in North America, and we experienced similar levels of investment tax credits between them.

Rebecca Morley: In renewables lower wind resources at the European offshore assets were partially offset by stronger resources in North America, and we experienced similar levels of investment tax credits between those periods.

Patrick Murray: The strong U.S. dollar resulted in larger hedging losses this quarter, but FX was overall still a net tailwind for EBITDA and DCF, as the average exchange rate, pre-hedging, was $1.44 for the quarter versus $1.35 in 2024. Below the line, higher financing costs, taxes, maintenance capital, and a slightly higher share count linked to the U.S. gas utility acquisitions partly offset the higher EBITDA contribution.

Rebecca Morley: The strong U S. Dollar resulted in larger hedging losses this quarter, but FX was overall still a net tailwind for EBITDA and DCF as the average exchange rate pre hedging was $1 44 for the quarter versus $1 35 in 2024.

Rebecca Morley: Below the line higher financing cost taxes maintenance capital and a slightly higher share count linked to the U S gas utility acquisitions, partly offset the higher EBITDA contributions.

Patrick Murray: I'm also pleased to reaffirm our 2025 guidance. Our resilient business model continues to demonstrate our ability to deliver predictable results in all cycles, and as Greg mentioned earlier, we're not seeing any noticeable impacts from tariffs on our finances. and other strong first quarter performance positions as well to hit our financial guidance for the 20th consecutive year. In fact, I think the lack of arrows on this slide, from a tailwind and headwind perspective, speaks to the resilience of our assets. But as we look forward, the recent acquisition of an interest in Matterhorn and forward expectations for U.S.-Canadian exchange rate, which although fairly heavily hedged, could provide some uplift to results.

Speaker Change: I'm also pleased to reaffirm our 2025 guidance, our resilient business model continued to demonstrate our ability to deliver predictable results in all cycles and as Greg mentioned earlier, we're not seeing any noticeable impacts from tariffs on our financial guidance.

Speaker Change: Strong first quarter performance positions us well to hit our financial guidance for the 20th consecutive year.

Speaker Change: In fact, I think the lack of arrows on this slide from a tailwind and headwind perspective speaks to the resilience of our assets, but as we look forward. The recent acquisition of an interest in Matterhorn and forward expectations for U S. Canadian exchange rate, which although fairly heavily hedged could provide some uplift to results.

Patrick Murray: We're also keeping an eye on US interest rates as they're a bit higher than we had projected, but again, not anticipated to be material. As a reminder, Q1 and Q4 are typically our strongest quarters, and the U.S. utilities further exaggerate. Some of our other businesses also have seasonality built into them. In our liquids business, we generally have heat restrictions on our pipes in the summers, leading to lower volume. In the winter months, gas transmission experiences far more peak days, and similarly Enbridge Gas Ontario has the majority of its heating degree days, leading to higher contributions in those same winter months.

Speaker Change: We're also keeping an eye on U S interest rates is there a bit higher than we had projected but again not anticipated to be material.

Speaker Change: As a reminder, Q1 and Q4 are typically our strongest quarters in the U S utilities further exaggerate that.

Speaker Change: All the other businesses also have seasonality built into them in our liquids business. We generally have restrictions on our pipes in the summers leading to lower volumes.

Speaker Change: The winter months gas transmission experiences far more peak days and similar Enbridge gas, Ontario has the majority of its heating degree days, leading to higher contributions in those same winter months in our renewable.

Patrick Murray: In our renewable segment, we typically experience higher wind resources in the winter months, which provide higher contributions from October to March.

Speaker Change: <unk> segment, we typically experience higher wind resources in the winter months, which provide higher contributions from October to March.

Patrick Murray: Now I'd like to reiterate our long-held capital allocation priorities. We will continue to maintain our balance sheet strength and target a step-to-evener range of four and a half to five. Sustainably returning capital to shareholders is key to our value proposition, and we expect to grow the dividend at a level within our annual DCF per share goal. When it comes to new growth, you can expect us to remain disciplined and prioritize low multiple brownfield opportunities and utility-like projects. As we discussed at Enbridge today, we can now self equity fund nine to 10 billion of organic growth projects annually.

Speaker Change: Now I'd like to reiterate our long held capital allocation priorities.

We'll continue to maintain our balance sheet strength and targeted debt to EBITDA range of four five to five times.

Speaker Change: Sustainably returning capital to shareholders is key to our value proposition and we expect to grow the dividend at a level within our annual DCF per share growth.

Speaker Change: When it comes to new growth you can expect us to remain disciplined and prioritize low multiple brownfield opportunities in utility like projects.

Speaker Change: As we discussed at Enbridge day, we can now self equity fund $9 billion to $10 billion of organic growth projects annually.

Patrick Murray: Based on our current secured growth backlog of $28 billion, we expect to deploy $8 to $9 billion per year towards that secured growth project. That leaves us with an additional one to two billion that can be opportunistically allocated, whether that be sanctioning new strategic projects, accretive Tuck M&A, such as the 10% acquisition of Matterhorn, or reducing debt. will apply our rigorous investment criteria, letting the 50 billion of opportunities compete for that excess capacity and prioritizing the highest returning and most strategic.

Speaker Change: Based on our current secured growth backlog of 28 billion, we expect to deploy $8 billion to $9 billion per year towards that secured growth projects.

Speaker Change: That leaves us with an additional $1 billion to $2 billion that can be opportunistically allocated whether that'd be sanctioning new strategic projects accretive tuck in M&A, such as the 10% acquisition of matterhorn or reducing debt.

Speaker Change: We will apply a rigorous investment criteria letting the $50 billion of opportunities compete for that excess capacity and prioritizing the highest returning and most strategic projects.

Greg Ebel: Before I wrap up, I want to thank all of our team members for delivering yet another outstanding And with that, Greg, I can pass it back to you for closing comments. Thanks very much, Pat. As you just pointed out, the consistency and resiliency of our business really came through this quarter, with record financial results and execution on our discipline growth strategy. Our industry leading low risk business model delivers in all economic and commodity cycles, and you saw that happen once again in the first quarter. I want to highlight our first choice value proposition, which has delivered strong double-digit shareholder returns over the past.

Speaker Change: Before I wrap up I want to thank all of our team members for delivering yet another outstanding quarter and with that Greg I can pass it back to you for closing comments. Thanks very much Pat as you just pointed out is the consistency and resiliency of our business really came through this quarter with record financial results and execution on our disciplined growth strategy.

Speaker Change: Our industry, leading low risk business model delivers in all economic and commodity cycles and you saw that happen once again in the first quarter.

Speaker Change: I want to highlight our first choice value proposition, which has delivered strong double digit shareholder returns over the past 20 years through thick and thin up cycles and down cycles. We continue to have a utility like business model that generates predictable cash flow that supports our investment grade balance sheet.

Greg Ebel: thick and thin, up cycles, and down cycles. We continue to have a utility-like business model that generates predictable cash flow that supports our investment-grade balance. Our financial flexibility allows us to grow our business. Sustainably return capital to shareholders. We've increased our dividend for 30 consecutive years, and I'm proud of being one of the only dividend aristocrats in our sector. We expect to support continued dividend growth by growing our business by 5% per year through the end of the decade.

Speaker Change: Our financial flexibility allows us to grow our business and sustainably return capital to shareholders. We've increased our dividend for 30 consecutive years and I'm proud of being one of the only dividend aristocrats in our sector.

Speaker Change: We expect to support continued dividend growth by growing our business by 5% per year through the end of the decade on a final note. We refreshed our indigenous reconciliation action plan and we continue to progress our sustainability goals and long standing commitment to support the communities in which we operate with that I'd like to thank all of you for it.

Greg Ebel: On a final note, we refreshed our Indigenous Reconciliation Action Plan, and we continue to progress our sustainability goals and long-standing commitment to support the communities in which we operate.

Greg Ebel: With that, I'd like to thank all of you for listening, and operator, please open the line for your call. Thank you.

Speaker Change: Listening and operator, please open the line for your questions.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star 1 in your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again.

Speaker Change: Thank you we will now begin the question and answer session. If you would like to ask a question. Please press star one on your telephone keypad to raise your hand and joined the queue. If you would like to withdraw your question simply press Star. One again. Your first question comes from the line of Aaron Macneil from TD Cowen Your line is open.

Aaron MacNeil: Your first question comes from a line of Aaron MacNeil from TD Cowan. Your line is open.

Greg Ebel: Good morning, all. Thanks for taking my question. We've mentioned your advocacy efforts and your prepared remarks, and we've got a new Canadian government promising to improve the Impact Assessment Act. We've also reached the 100-day mark with the U.S. administration. Focused on Permitting Reform. Greg, are you encouraged by what you're seeing and what needs to happen? Well, morning, Aaron. Thanks very much for the question. I'm completely enthused about it. Just starting from the campaigns, just a basic conversation here in Canada, but also down south in the United States. And the fact that people are now talking about energy, energy infrastructure, getting stuff done.

Aaron MacNeil: Good morning, all thanks for taking my questions.

You mentioned your advocacy efforts in your prepared remarks, and we've got a new Canadian government promising to improve the impact assessment Act.

Aaron MacNeil: We've also reached the 100 day Mark with the U S Administration. That's also forecast focused on permitting reform. Greg are you encouraged by what Youre seeing and what needs to happen in your view to get your head around larger infrastructure development.

Aaron MacNeil: Well morning, Erinn, thanks, very much for the question.

Aaron MacNeil: I am completely enthused about it just starting from the campaigns just the basic conversation here in Canada, but also down south in the United States and the fact that people are now talking about energy energy infrastructure getting stuff done that's just a market change here in Canada.

Greg Ebel: That's just a market change here in Canada, the all of the above approach, which is, you know, we've structured the company to succeed in that environment. It's great. Now, I think the big question is, is that all campaign rhetoric? Or is that actually going to play out into actually permitting reform? We're starting to see some of that in the United States. You know, various projects put it on accelerated elements of approvals, obviously very supportive of natural gas, liquids, LNG exports, etc. And I'm going to take the Prime Minister in Canada at his word that he's committed to building energy infrastructure in Canada, becoming a conventional and non-conventional energy superpower.

Aaron MacNeil: All of the above approach, which as you know we've structured the company to succeed in that environment. It's great.

Aaron MacNeil: I think the Big question is is that all campaign rhetoric or is that actually going to play out and to actually permitting reform, we're starting to see some of that in the United States.

Aaron MacNeil: Various projects put it on the accelerated elements.

Aaron MacNeil: Approvals, obviously very supportive of natural gas liquids.

Speaker Change: LNG exports et cetera, and I'm going to take the Prime Minister in Canada. It is worth that is committed to building energy infrastructure in Canada, becoming a conventional.

Greg Ebel: So, you know, when you're in 43 states, eight provinces, and five countries, of which the two big ones are the United States and Canada, that is a great spot to be. So, I think you see that in our backlog. I think you see that in our execution. So, I'm excited about that. It's just got to turn into reality.

Aaron MacNeil: And non conventional.

Speaker Change: Energy superpower so.

Speaker Change: When you're in 43 states eight provinces.

Speaker Change: <unk> five countries in which the two big ones are the United States and Canada that is a great spot to be so I think you see that in our backlog I think you'll see that in our execution. So I'm excited it's just got to turn into reality.

Greg Ebel: Like, I mean, we're ready to rock, I think, in Canada, just as someone's going to put the policies in place so the industry can deliver for both consumers and investors. Maybe as a follow on, it's obviously great to see that. Progress towards an FID on the mainline optimization that you outlined at the investor. What do you think is giving your counterparties the confidence to move ahead? You know, just the broader economic Well, I'll give you a couple of thoughts and then Colin's here too. And I think when you said, I think you mean our customers.

Speaker Change: I mean, we're ready to rock I think in Canada, so someone get them to put the policies in place so the industry can deliver.

Speaker Change: Both the consumers and investors.

Speaker Change: Maybe as a follow on it's obviously, great to see that Youre continuing to progress towards an FID.

Speaker Change: Mainline optimization that you outlined at the Investor Day, what do you think is giving your counterparties the confidence to move ahead with the expansion given just.

Or just the broader economic uncertainty and reshape recent OPEC production adds.

Speaker Change: Well I'll give you a couple of thoughts and then Collins here too and I think you said I think you mean, our customers are customers.

Greg Ebel: Our customers, I think they're looking longer term as well. Look, you're going to see ebbs and flows in pricing. As we said, in our opening comments, there's a lot of volatility. But those shorter-term swings, which we watch very closely, can have some impact on production. But they don't change the long-term view of energy demand and need. And that's what we build for, right? We build pipeline infrastructure and even power infrastructure, but pipelines on the gas and the oil side for what's happening 12, 18, 36 months out. And so, we've got a system that can add on top of what we have now with very permit light, relatively low multiple, and relatively modest increments of volume that really create the opportunity.

Speaker Change: I think theyre looking longer term as well look youre going to see ebbs and flows in pricing as we said in our opening comments, there's a lot of volatility.

Speaker Change: But.

Speaker Change: Those sort of shorter term swings, which we watch very closely can have some impact on production, but they don't change the long term view of energy demand and need and Thats, what we built four right we build pipeline.

Speaker Change: Infrastructure, and even power infrastructure, but pipelines on the gas and the oil side for what's happening.

Speaker Change: 12, 18 36 months.

Speaker Change: And so we've got a system that can add on top of.

Speaker Change: Of.

Speaker Change: What we have now with very permit light relatively low multiple and relatively modest increments of volume that really create the opportunity so but specifically on <unk>, one and maybe it's for mainline capital Colin do you want to speak to that yeah, Aaron I think were.

Colin Gruending: So, but specifically on MLO1 and maybe the mainline capital, Colin, do you want to speak to that? Yeah, Aaron, I think we're We're quite confident on the prospects for Mainline Optimization 1. Unknown Speaker We have an open season in the market right now. Strong response. And underpinning that to your question is, You know, the old supply outlook. by by customer in an aggregate. And remember that we're basically full today. and they've got a number of highly economic at very low oil price, the bottleneck. And, you know, smaller projects, they're not requiring a big oil price to underpin a big massive new mine or anything.

Speaker Change: I'm quite confident on the <unk>.

Speaker Change: Aspects for mainline optimization one.

Speaker Change: We have an open mark open season in the market right now.

Speaker Change: Strong response and underpinning that to your question is.

Speaker Change: The supply outlook by by customer and in aggregate.

Speaker Change: Remember that we're basically full today.

Speaker Change: And they've got a number of highly economic.

Speaker Change: Yes.

Speaker Change: Had very low oil price debottleneck and.

Speaker Change: Smaller projects.

Speaker Change: Not.

Speaker Change: Requiring.

Speaker Change: Big oil price to underpin a big massive new mine or anything that's not what's underpinning.

Colin Gruending: That's, that's not what's underpinning this next wave of egress. And, and even in the worst case, I guess you could think about that egress solution as insurance egress, right protecting the price of the existing 5 million barrels a day.

Speaker Change: This next wave of egress.

Speaker Change: And.

Speaker Change: And even in the worst case, I guess, you could think about that egress solution as insurance Seagrass right protecting.

Speaker Change: The price of the existing 5 million barrels a day.

Unknown Speaker: Thanks both.

Speaker Change: Thanks, Paul and happy to turn it back.

Jeremy Tonet: Your next question comes from a line of Jeremy Tonet from J.P. Morgan. Your line is open. Hi, good morning. Morning, Jeremy.

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

Speaker Change: Yes.

Jeremy Tonet: Hi, good morning.

Speaker Change: Good morning, Jeremy.

Jeremy Tonet: I just want to start off with regards to the natural gas pipeline network and opportunities at the service growth there. Thank you for the details provided, but just wondering if you could provide maybe incremental thoughts on the opportunities set to service growing power demand and, you know, even data center fuel demand behind that. Is this something, you know, timeline-wise you think that can happen near term or do you think this takes more time to play out? Just wondering, you know, how you see, I guess, the opportunity to service natural gas firepower.

Jeremy Tonet: Just wanted to start off with regards to the natural gas pipeline network and opportunities at the service growth. There. Thank you for the details provided but just wondering if you could provide maybe some incremental thoughts on the opportunity set to service.

Speaker Change: Growing power demand and.

Speaker Change: Even even data center fuel demand behind that is this something you know timeline wise you think that can happen near term or do you think this takes more time to play out just wondering how you see I guess the opportunity to service.

Speaker Change: Natural gas firepower.

Greg Ebel: Yeah, maybe to start with what we've already done, right? So, and we did talk during our Analysts Day in March just a month ago about how we saw some opportunities in the next 6 to 18 months, which I'll let Cynthia speak to. But let's not forget that in the last, less than a year, Enbridge has added 5 gigawatts or secured 5 gigawatts of serving natural gas to power plants. So, you've got our Ridgeline project in GTM. North Carolina, the GDS business is serving Duke power plants there. Utah, direct connections to data centers, that's another couple hundred megawatts.

Speaker Change: Yes, maybe to start with what we've already done right. So and we did talk during the.

Speaker Change: Our analyst day in March just a month ago, but how are we saw some opportunities in the next six to 18 months, which I'll, let Cynthia speak too well, let's not forget and then the last less than a year.

Speaker Change: Bridge has added five gigawatts are secured five gigawatts of.

Speaker Change: Serving natural gas to power plants, So you've got our ridge line project in.

Speaker Change: In GTS North Carolina, the GDS business is serving.

Speaker Change: Duke power plants, there, Utah direct connections to data centers. That's another couple of hundred megawatts, Ontario, Theres, probably a gigawatt of plans there Ohio.

Cynthia Hansen: Ontario, there's probably a gigawatt of plants there. Ohio, a gigawatt there at the Trumbull plant. So, that's 5 gigawatts just on its own. So, this is actually ongoing and occurring real-time right now, and I think we've got some great opportunities ahead of us.

Speaker Change: Gigawatt there at the Trumbull plant, that's five Gigawatts just on its own. So this is actually ongoing and.

Greg Evil: Occurring real time, right now and I think we've got some great opportunities ahead of US you want to speak to that simple. Thanks, Greg.

Cynthia Hansen: Do you want to speak to that? Sure. Thanks, Greg. And yeah, Jeremy, as we outlined at Enbridge Day, we do have a lot of opportunities in this space for power demand. So, whether that's coming from increased industrial demand like coal to gas conversion or the data centers, we have 35 plus opportunities for about 11 CCF per day of that new electrical demand. So, by 2032, that's about $14 billion kind of opportunity set. And as we said, we're focused on that near term. In the next 6 to 18 months, we probably see $1 to $2 billion worth of opportunities there.

Jeremy Tonet: Yes, Jeremy.

Jeremy Tonet: Outlined at Enbridge day, we do have a lot of opportunity.

Jeremy Tonet: <unk> or power demands, whether that's coming from increased industrial demand the coal to gas conversion out of the data centers. We have 35 plus opportunity for about 11 Bcf per day of that new electrical demand.

Jeremy Tonet: By 2032, that's about $14 billion kind of opportunities that and as we said we're focused on that near term in the next six to 18 months, we publish the $1 billion to $2 billion worth of.

Greg Ebel: And with those projects that we're having these great conversations with those – our customers that have that increasing power need, and they're at really attractive returns in that 6 to 8 times multiple – bills multiple. So, we can't talk about all the details, obviously, right now because we're in the midst of having those conversations, but you should look to see some announcements coming in that timeframe. So, it is exciting, and we have capacity to support that.

Jeremy Tonet: <unk> Sir.

Jeremy Tonet: And what does that projects that where we're having great conversations with those.

Our customers that have that increasing power needs.

Jeremy Tonet: We're at really attractive returns in that six to eight times.

Jeremy Tonet: Paul build multiple so we can't talk about all the details obviously right now because we're in the midst of having those conversations but you should look to see some announcements coming in that in that timeframe. So it is exciting and we have capacity to support that and Jeremy just because Matthew ackman when they were thrown.

Greg Ebel: And Jeremy, just because Matthew Ackman's in the room throwing a donut at me, we also set up about 2 gigawatts of power projects on the renewable side that are serving really big clients on the data center side as well. And you know those tech names. We've put them out there before, so you shouldn't forget that either. Got it. That's helpful. Thank you for that.

Speaker Change: Don't do that we also said at about two gigawatts of.

Speaker Change: Of power projects on the renewable side that are serving really big clients on the data center side as well and you know those tech names, we've put them out there before so we shouldnt forget that either.

Speaker Change: Got it.

Speaker Change: That's helpful. Thank you for that and then maybe just shifting to the results for the year.

Jeremy Tonet: And then maybe just shifting to results for the year. And, you know, seeing that guide was reaffirmed here.

Speaker Change: <unk> seen that guide was reaffirmed here.

Jeremy Tonet: And we're just wondering, I guess, how everything may be within the year shaping up versus expectations and appreciate that the comments on seasonality is highlighted there. That's helpful.

Speaker Change: But just wondering I guess, how everything maybe within the year shaping up versus expectations and I. Appreciate the comments on seasonality as highlighted there that's helpful. But just the ship.

Jeremy Tonet: But just the ship, the quarterly allocation in this deck versus prior looks a little bit different. So just wondering if there's anything else that was shaping up in the quarter that in the year on a quarterly basis that we should be thinking about.

Speaker Change: Quarterly allocation.

Speaker Change: In this deck versus prior looks a little bit different. So just wondering if theres anything else that was shaping up in the quarter and the year on a quarterly basis.

Speaker Change: That we should be thinking about.

Patrick Murray: I'll let Pat speak. I don't think there's anything different. I think we're just trying to give you more insight. Obviously, add the new utilities up, so making sure that people fully understand our first and fourth quarter are the big quarters. Yeah, I think that's right. The big change year over year would be the addition of all the U.S. utilities. You know, they're not exposed to weather like Ontario is, but they still have a significant profile into the kind of Q1, Q4 categories. We just wanted to make sure that people were able to model that out appropriately.

Speaker Change: I'll, let Pat speak I don't think Theres anything different I think we're just trying to give you more insight obviously add the new utility and so making sure that people fully understand our first and fourth quarter are the big quarters, Yes, I think thats right.

Speaker Change: Big change year over year would be the addition of all the U S utilities.

Speaker Change: They are not exposed to weather like Ontario is but they still have a significant profile into the kind of Q1 Q4 categories. I just wanted to make sure that people are.

Speaker Change: We're able to model that out appropriately I think your question on the strong first quarter, but that's how we think about it. It's a really strong first quarter gets us really get into the year as we talked about from a headwind tailwind perspective, making sure that we're of course always operating reliably if we do that we should be well within the guidance range. We provided there is a potential.

Patrick Murray: I think, you know, your question on the strong first quarter, that's how we think about it. It's a really strong first quarter. It gets us really good into the year, as we talked about from a headwinds-tailwinds perspective, making sure that we're, of course, always operating reliably. If we do that, we should be well within the guidance range we provided.

Patrick Murray: There's a potential upside around the new acquisition we just made. If we can close that within the next month or two, we've got some FX upside, as we talked about when we guided. But again, we're fairly hedged there as part of our kind of methodical process that we have there. But there could be some upside, both on EBITDA and DCF there, and then always watching interest rates in a fairly volatile window right now. But all in all, we're feeling very good about how the year is shaping up and a great start. Got it. Thank you.

Speaker Change: Outside around the new acquisition, we just made if we can close out within the next month or two we've got some FX upside as we talked about when we guided but again, we're fairly hedged there is as part of our kind of methodical process that we have there, but there could be some upside both on EBITDA and DCF, there and then always watching interest rates in a fairly volatile window.

Speaker Change: Right now, but all in all we're feeling very good about how the year shaping up and a great start.

Unknown Speaker: I'll leave it there.

Speaker Change: Got it thank you I'll leave it there.

Speaker Change: Thanks, Jeremy.

Robert Catellier: Your next question comes from a line of Robert Catellier from CIBC. Your line is open.

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

Greg Ebel: Hey, good morning, everyone. I'd like to go back to the permitting questions. You know, there obviously there was an attempt to improve permitting in the US with alternative arrangements for NEPA compliance. I'm wondering what your take is on this, specifically, if you have an appetite to elect to have any projects reviewed under that, those alternative arrangements, or would you need to see something more concrete? with a little bit of a mixed bag. Some of it, it's a very, it's a live discussion, I will tell you, generally speaking, accelerated depreciation or depreciation permitting is awesome. However, it depends how far you are already along on the project, whether you want to go back and restart, you know, are there core challenges, etc.

Speaker Change: Hey, good morning, everyone I'd like to go back to the permanent questions.

Speaker Change: There are obviously there was an attempt to improve permitting in the U S with alternative arrangements for NEPA compliance.

Speaker Change: I'm wondering what your take is on this specifically if you have an appetite to elect to have any projects reviewed under that those alternative arrangements or would you.

Speaker Change: Need to see something more concrete.

Speaker Change: With the little bit of a mixed bag. Some of it's a very it's a live discussion I will tell you generally speaking accelerated depreciation our depreciation that permitting is awesome. However, it depends how far you are already along on the project, whether you want to go back and restart.

Speaker Change: Are there court challenges et cetera, So Robert I'm, not trying to obfuscate the question, but I think it depends but theres no doubt.

Greg Ebel: So, Robert, I'm not trying to obfuscate the question, but I think it depends. But there's no doubt, you know, accelerated approvals, I would say, in general, are a good thing. And you've seen some of our projects put on, say, the Army Corps accelerated element, but right across the board. And we've had discussions with the Interior Secretary and the Energy Secretary. And, you know, so I would expect on balance Accelerated permitting is great, but it doesn't mean we'll move every project to restart the clock. I think equally, it may be more important, it's just the policy stance and everything from being able to use gas appliances, if you will, on the GDS side, to just the openness and acceptance and reality of the fact that the United States, frankly, can't either, can't move forward with that gas fire generation.

Speaker Change: Accelerated approvals I would say in general are a good thing and you've seen some of our projects put on say the Army Corps has accelerated element.

Speaker Change: But right across the board.

Speaker Change: And we've had discussions with the interior secretary at the energy Secretary.

Speaker Change: <unk>.

Speaker Change: So I would expect on balance accelerated Permian is great, but it doesn't mean, we'll move every project to restart the clock I think equally and maybe more importantly, just the policy stance and everything from being able to use gas appliances or if you will on the GDS side to judge.

Speaker Change: The openness and acceptance.

Speaker Change: <unk>.

Speaker Change: The fact that.

Speaker Change: The United States, Canada, either can't move forward without gas fired generation, that's a winner right across the board for us.

Greg Ebel: That's a winner right across the board for us. But on that side, you know, it's not just about, say, NEPAs, it's about accelerated approvals of transmission, electric transmission, as well, that's going to drive this. So I don't think there's any one simple answer to that question, unfortunately, Robert.

Speaker Change: But on that side, it's not just about say <unk> accelerated approvals of transmission electric transmission as well thats going to drive that so I don't think theres any.

Speaker Change: One simple answer to that question Unfortunately wherever.

Robert Catellier: No, that's why I asked it.

Speaker Change: No that's why I asked it.

Unknown Speaker: Next question.

Robert Catellier: I just wanted to get your updated views on the Permian. There's been a number of producers that have suggested the weak prices are curbing their capital investment. Notwithstanding the wrecking volumes at Ingleside this quarter, what is your outlook for Permian production in general and the impact on both Ingleside and your Permian gas system?

Speaker Change: Next question.

Speaker Change: And just wanted to get your updated views on the Permian Theres been a number of producers that have suggested wheat prices are curbing their capital investment.

Speaker Change: Notwithstanding the record volumes at Ingalls side. This quarter, what is your outlook for Permian production in general and the impact on both Ingleside and your Permian gas system.

Greg Ebel: And I'm curious if there's alignment with the joint venture partners on the pace at which you deploy capital, particularly on the gas side. Yeah, on the first, on your last question, and then maybe Colin can speak to the Permian volume issues. I don't think there's any, we wouldn't have re-upped or picked up another piece of the asset in the Whitewater JV, Matterhorn, if there was misalignment. I think there's absolute alignment on what needs to be done. Obviously, Matterhorn's a project that's already in service. But look, you're seeing GORs go up in the Permian. The need for gas takeaway is absolute, regardless of your view, whether you think there's going to be a slowdown in production or a levelling out of production.

Speaker Change: Curious if theres alignment with the joint venture partners on the pace at which you deploy capital on the particularly on the gas side.

Speaker Change: Yeah on the first on your last question and then maybe Colin can speak to the Permian volume issues I don't think Theres any we would never we re upped or picked up another piece of the asset.

Speaker Change: Whitewater JV Matterhorn, if there was miss alignment I think there is absolute alignment on what needs to be done obviously matter horns a project.

Speaker Change: That's already in service.

Speaker Change: But look youre seeing <unk> go up in the Permian the need for gas takeaway is absolute regardless of your view, whether you think there's going to be a slowdown in our production area levelling out of production and I will say the gas pricing is quite.

Colin Gruending: And I will say the gas pricing is quite productive, no pun intended, in terms of actually building takeaway and serving as a minor, but an important buffer to a weaker price on the oil side as well. But on the Permian, I mean, there's no doubt we're watching those rig counts and what our producing customers are saying on the oil side. Yeah. Yeah, Robert, I can chime in here. And listen, the Permian is a great basin and always will be. It's a critical basin. And, you know, we've got our ear to the ground, just as you are, and we're seeing, you know, the last couple of weeks.

Speaker Change: Productive no pun intended in terms of actually building takeaway.

Speaker Change: Serving as a minor, but an important buffer to a weaker price on the <unk> side as well, so but on the Permian and Theres no doubt we were watching those those rig counts on what our producing customers are saying on the oil side, yes, yes, Robert can chime in here and listen.

Speaker Change: <unk> is a great basin.

Speaker Change: As well as a critical basin.

Speaker Change: And we've got our ear to the ground just as you are and we are seeing over the last couple of weeks.

Colin Gruending: You probably mixed bag from producers, some holding firms, some drop in a rig or two or three. So we'll continue to follow that. The good news is, is that our business is built to be relatively insensitive to that price and to that indirect risk of volume risk. We have a contracted business in the Permian. Ingleside and Grey Oak are contracted and our cash flows are solid. Prices go up and down. We've built the business intentionally to be resilient.

Speaker Change: You're probably a mixed bag from producers some some holding firm some dropping a rig or two or three.

Speaker Change: So so keen to follow that the good news is is that our business is built to be relatively insensitive to that.

Speaker Change: Price and two that indirect risk and volume risk, we have a contracted business in the Permian.

Speaker Change: Ingleside and <unk> are contracted and their cash flows are solid prices go up and down we built the business intentionally to be resilient.

Speaker Change: And.

Greg Ebel: I think the question on JV Partners is maybe more Cynthia related, but we're aligned with with our team. We have we have some expansions coming online on Grey Oak and Ingleside here. So the next few years of cash flows look really good yet for Barbis and Permian. Yeah, you know, OPEC plus actions, tariffs, all that again, as Colin said, we watch really carefully. But this is exactly the environment that Enbridge was built for, right? Size, diversity, serving the best demand markets in the most economic production basins. That's really what makes Enbridge a winner. So, you know, we're watching that stuff carefully.

Speaker Change: I think the question on JV partners might be March Cynthia it related but.

Speaker Change: We're aligned with with our team.

Speaker Change: We have some expansions coming online on gray oak in Ingleside here. So the next two years of cash flows.

Speaker Change: Look really good yet for the Permian.

Speaker Change: OPEC plus actions tariffs all that again as Colin said, we watch really carefully but this is exactly the environment that enbridge was built for right size diversity, serving the best demand markets in the most economic production.

Speaker Change: That's really what makes enbridge a winter so we're watching that stuff carefully we can react and built out small increments or large increments depending on what.

Greg Ebel: We can react and build out small increments or large increments, depending on what depending on what our customers want at a given point in time.

Speaker Change: Depending on what our customers want at a given point in time.

Unknown Speaker: That's a lot of good color. Thanks so much.

Speaker Change: That's a lot of good color. Thanks, so much.

Yes.

Theresa Chen: Your next question comes from a line of Theresa Chen from Barclays. Your line is open. Morning. Thank you for taking my questions.

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

Theresa Chen: Good morning, Thank you for taking my questions and maybe double clicking on that the Permian to Gulf Coast gas transmission franchise.

Theresa Chen: Maybe double-clicking on the Permian to Gulf Coast gas transmission franchise. You've successfully participated in multiple minority interests across different assets here. And looking at your broader footprint, you seem very comfortable and maybe even prefer to wholly own and operate your assets.

Speaker Change: You've successfully participated in multiple minority interests and across different asset here and looking at your broader footprints you seem very comfortable and maybe even prefer to wholly own and operate your assets. How should we think about the strategic path forward for your gas transmission footprint from the premium all the way through the Gulf Coast, How do you <unk>.

Greg Ebel: How should we think about the strategic path forward for your gas transmission footprint from the Permian all the way through the Gulf Coast? How do you envision these assets ultimately fitting within your portfolio? Yeah, I think it's a fair comment, Theresa, that we generally like to, you know, like a lot of big companies, we like to control both strategically and commercially. But we have a lot of joint ventures, right across the, right across North America and in Europe, too, as you know, so we're comfortable in that environment. It does allow us to participate in a greater number of locations, because you have the capital that's required.

Speaker Change: <unk> these assets ultimately fitting within your portfolio.

Speaker Change: Yeah, I think it's a fair comment Theresa that we generally like to.

And unlike a lot of big companies, we'd like to control, both strategically and commercially but we have a lot of joint ventures right across the.

Speaker Change: Right across North America, and in Europe, too as you know so we're comfortable in that environment.

Speaker Change: It does allow us to participate.

Speaker Change: In a greater number of locations because the spread of the capital that's required.

Greg Ebel: And it does give us insights with some of those partners. When I think of some of our great partners, some of them are producing partners, some of them have upstream and downstream activities, and sometimes they're fellow midstreamers as well. So we get a lot of value from that. Ultimately, would we like to own significant elements of it and be in control and strategy? I think that's a fair comment. But we're patient. A, it's not absolutely necessary. And as you know, we are not opportunity short. So this allows us to take the allows us to participate in as many opportunities.

Speaker Change: And it does give us insights with some of those partners when I think of some of our great partner some of them are producing partners some of them have upstream and downstream.

Speaker Change: Downstream activities and sometimes their fellow mid streamers as well so we get a lot of value from that.

Lee: Lee would we like to.

Lee: One significant elements of it and being control and strategy I think Thats fair.

Lee: It's a fair comment, but we're patient.

Lee: It is not absolutely necessary and as you know we are not opportunity short. So this allows us to take the.

Lee: Allows us to participate in as many opportunities as possible.

Greg Ebel: as possible. Understood.

Greg Ebel: And Greg, going back to the macro and the role of infrastructure across your footprint, the letter of intent you've signed to support WCSB egress, what are the near and medium term goals of the working group you've established? How do you view the path forward for the industry over time, taking into account the learnings from recent geopolitical volatility and trade tensions?

Greg Evil: Understood and Greg going back to the macro and the role of infrastructure across your footprint.

Greg Evil: The letter of intent each scientist support <unk> CSP egress, what are the near and medium term goals of working for it can have establish and how do you view the path forward for the industry.

Greg Evil: Over time, taking into account those earnings from recent geopolitical volatility and trade tensions.

Greg Ebel: Well, I think the first time first thing is just to engage with the new, the new government here in Canada, we have not had an opportunity as a group or a subset of that group to sit down with the Prime Minister. You know, he's been a little bit busy on both sides of the border and setting a cabinet when that happens. I think that'll be the first thing. And I think it's important that the Prime Minister have an opportunity to hear from the industry, particularly, you know, you think about those 39 CEOs represent a lot of jobs, a lot of GDP, a lot of revenues.

Greg Evil: Well I think the first time first thing is just to engage with the new the.

Greg Evil: New government here in Canada, we have not had an opportunity as a group or a subset of that group to sit down with the prime Minister.

Greg Evil: He has been a little bit busy on both sides of the border and setting a cabinet when that happens I think that'll be the first thing and I think it's important.

Greg Evil: The prime minister of an opportunity to hear from the industry.

Think about a third of those 39 Ceos represent a lot of jobs a lot of GDP a lot of revenue. So that's one secondly.

Greg Ebel: So that's one. Secondly, got to address the carbon tax and emission caps issues. Third thing, got to get rid of the ban on the West Coast for tankers if there's expected to be egress that way. And then I think that we've already made some progress on that front, but we have to execute on it. That would be indigenous loan guarantees and participation in infrastructure. So that's four or five things that we got to pitter patter.

Greg Evil: To address that.

Greg Evil: The carbon tax and emission caps issues third thing.

Greg Evil: Get rid of the ban on the West coast.

Greg Evil: For tankers, if there is expected to be egress that way.

Greg Evil: And then I think we've already made some progress on that front, but we have to execute on it.

Greg Evil: That would be indigenous loan guarantees and participation in infrastructure. So that's four or five things that we got a pitter-patter, let's get at it I think the prime Minister cities wants to do that but those things can be done.

Greg Ebel: Let's get at it. I think the Prime Minister said he wants to do that, but those things can be done very quickly with either a stroke of the pen or some legislation. And again, I don't, of the two, this is quickly turning into a two party country. And I think both parties had similar ideas, maybe different, slightly different tactics on being able to build energy. So I would have thought that these things could be done rather quickly in a parliament that's united on the need for that for Canada.

Greg Evil: Very quickly.

Greg Evil: With either a stroke of the pen or some legislation.

Greg Evil: And again I don't.

Greg Evil: This is quickly turning into a two party country.

Greg Evil: Both parties had similar.

Greg Evil: Maybe different slightly different tactics on being able to build energy. So I would've thought that these things can be done rather quickly in our parliament that United on the need for that for Canada.

Theresa Chen: Thank you very much. Thanks, Theresa.

Greg Evil: Thank you very much.

Jason: Thanks, Jason.

Ben Pham: Your next question comes from a line of Ben Pham from BMO Capital Markets. Your line is open. Hey, thanks. Good morning. On your earnings report, you mentioned almost $3 billion of projects you've sanctioned year-to-date.

Speaker Change: Your next question comes from the line of Ben Pham from BMO capital markets. Your line is open.

Ben Pham: Hey, Thanks, good morning Andre.

Speaker Change: The earnings report you mentioned almost 3 billion hours of projects.

Ben Pham: Sanctioned.

Ben Pham: Can you comment on the outlook on sanctioning projects going forward, where you're seeing the most business activity, and do you anticipate the pace of those sanctions to accelerate? Yeah, that's a good question. First of all, I would say that you're going to see sanctioning of projects in every single one of our businesses, and that's it. That's, that's excellent. Right. I mean, we, as we said, we were already executing on $27, $28 billion worth of projects and $50 billion of opportunities. I think you'll continue to see that. I'm looking around the room here at four business leaders that are pretty keen to, to keep growing their businesses and create opportunities.

Ben Pham: Year to date.

Speaker Change: Can you comment on the outlook on Sachin projects going forward, where are you seeing the most business activity and do you anticipate the pace of those.

Ben Pham: <unk> alright.

Ben Pham: Yes, that's a good question.

Ben Pham: First of all I would say that youre going to see sanctioning of projects in every single one of our businesses and that's it.

Ben Pham: Excellent Alright, I mean, we as we said we've already executing on $27 $28 billion worth of projects in that $50 billion of opportunities I think youll continue to see that.

Speaker Change: I'm looking around the room here at four business leaders that are pretty keen to keep.

Speaker Change: Keep growing their businesses and create opportunities. So I'm also looking at the CFO here that really likes the being.

Greg Ebel: So I'm also looking at a CFO here that really likes the, being able to choose from those projects to provide the greatest returns as quickly as possible for investors, and obviously serving our customers. So I'm going to say you're probably going to see the biggest sanctioning right out of the block on the liquid side, which is, which is somewhat different. On the gas side, both at GDS and GTM, you have a variety as well. I think the one that's a bit of a question mark, and I mentioned in opening comments, is what do we do on renewables just with the dynamic nature of policy there?

Speaker Change: Being able to choose from those projects that provide the greatest returns as quickly as possible for investors.

Speaker Change: Obviously, serving our customers so.

Speaker Change: Im going to say, you're probably going to see the biggest sanctioning right out of the block.

Speaker Change: On the liquid side, which is which is somewhat different.

Speaker Change: On the gas side, both at <unk>, a variety as well I think the one that's a bit of a question Mark.

Speaker Change: As I mentioned in the opening comments since what do we do on renewables just with the dynamic nature of policy, there, but Matthew and his team have a number of late stage projects that could move forward.

Greg Ebel: But Matthew and his team have a number of late stage projects that could move forward. That don't look like they will be caught up in either tariff or policy elements there. So it's right across the board, Ben, which really gives us a lot of confidence on our long-term growth prospects, not just the positive year that's shaping up through the first quarter anyway.

Speaker Change: Don't look like they will be caught up in either tariff for policy element. So it's right across the board.

Speaker Change: Which really gives us a lot of confidence on our long term growth.

Speaker Change: But it's not just.

Speaker Change: The positive here thats shaping up through the first quarter anyway.

Greg Ebel: Okay, very good.

Speaker Change: Okay great.

Unknown Speaker: And I know it's your six-year capital program, just related questions been wrapping up steadily.

Speaker Change: I noticed your secured capital program just related question has been ramping up.

Greg Ebel: And how do you think about human capital and human capital in an equation? Is there a certain Project Browser, that's that's too big year relative to your your staffing. And do you think that could be a constraint on on just just moving forward a project? So far, we haven't seen that, Ben, and it kind of goes back to Theresa's question about JVs and stuff, like take the whitewater stuff. We are not the lead player from the build perspective, but we get to participate. I even look at some of our renewable activities, you know, say, in Europe, that's being, we're not the lead builder.

Speaker Change: Steadily and how do I think about human capital.

Speaker Change: So on capital in that equation is there.

Speaker Change: Thanks Sharon.

Speaker Change: Perfect prostrate, that's too big for you.

Speaker Change: Relative to your staffing.

Do you think that could be a constraint on just.

Speaker Change: Just moving forward their projects.

Speaker Change: So far we haven't seen that been in that kind of goes back to <unk> question about JV and stuff like take the wastewater stuff. We are not the lead player from the Bill perspective, but we get to participate I, even look at some of our renewable activities.

Speaker Change: Say in Europe, that's being we're not the lead builder.

Greg Ebel: And we obviously have a major project team that looks at all projects, say, over $50 million at an Enbridge size. So, we haven't seen it to date, but obviously, I'm always concerned about human capital. Do we have enough people to deliver on it? But so far, so good from that perspective.

Speaker Change: And we obviously have a major project team that looks at all projects say over $50 million is at an enbridge size. So we haven't seen it to date, but obviously I'm always concerned about human capital do we have enough people to deliver on it but so far.

Speaker Change: So good from that perspective.

Greg Ebel: I guess the other one I'd point to is Wood Fibre 2. We're not actually building that one. We're involved in helping them and providing counsel and what we know about marine activities and building pipes, etc. So, so far, so good. But I think you're right to point out, we got to make sure we stay on top of the human capital element of this. Yeah, maybe one thing I'll just add to that is, you know, 20, as I said, at Enbridge days, $28-29Bn is a big number, but we're a big company. If you go back a number of years ago, we had peaks in our capital programs like this in the past and have managed through them quite well.

Speaker Change: I guess the other one I'd point to is with fiber to we're not actually building that one we're involved in helping them and providing counsel and what we know about marine activities building types etcetera. So so far so good but I think youre right to point out.

Speaker Change: We got to make sure we stay on top of the.

Speaker Change: The human capital element of this maybe one thing I'll just add to that is.

Speaker Change: As I said at Enbridge days.

Speaker Change: $8 9 billion is a big number but we're a big company. If you go back a number of years ago, We had peaks in our capital programs like this in the past and to manage through them quite well. So I think we've got a track record of doing that we've got the right skill sets a number of those people are still with the organization. So I think we feel really good about our not only our project group our operational teams and our.

Greg Ebel: So, I think we've got a track record of doing that. We've got the right skill sets. A number of those people are still with the organization. So, I think we feel really good about not only our project group, our operational teams and our supply chain management. So, I think we'll, as you've noted, continue to monitor it as we go forward. But at the moment, I don't see any constraints there. Okay, got it. Thank you. Thanks, Ben.

Speaker Change: Our supply chain management, so I think well as you've noted continue to monitor it as we go forward, but at the moment I don't see any constraints there.

Speaker Change: Okay got it thank you.

Pat Murray: Thanks Pat.

Manav Gupta: Your next question comes from a line of Manav Gupta from UBS. Your line is open.

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

Manav Gupta: Good morning guys and congrats on a very strong quarter. I'm just trying to understand, it appears that the acquisition of the three utilities has gone even better than most expected or even you expected. So first, if you could talk a little bit about that, what have been the positive surprises? And then, you know, circling back a little bit into Jeremy's question, if everything is so good, and the tariffs are also not a real headwind, then is the 2025 guide just conservative at this point? Yeah, look, we give annual guidance. And as Pat mentioned, you know, the first quarter, very nice to see a robust start.

Manav Gupta: Good morning, guys and congrats on a very strong quarter I'm, just trying to understand it.

Manav Gupta: The acquisition of the <unk> utilities has gone even better than most expected only when you expected. So first if you could talk a little bit about that what had been the positive surprises and then circling back to Liberty to Jeremy's question. If everything is so good and that is also not a real headwind then is the 2012.

Manav Gupta: Five guide just conservative at this point.

Manav Gupta: Yeah, well look we give annual guidance and as Pat mentioned.

Greg Ebel: But, you know, the fourth quarter is a really important quarter for us. So, you know, I don't want to get ahead of ourselves. I think we're in a great spot, far better to have a nice launch than being behind the eight ball, and we've had a nice launch. And there's a reason why we've hit guidance, what looks like it'll be 20 years in a row.

Manav Gupta: The first quarter very nice to see a robust start but the fourth quarter is a really important quarter for us.

Manav Gupta: I don't want to get ahead of ourselves I think we are in a great spot far better to have a nice launch than being behind the eight ball and we've had a nice launch and there's a reason why we've hit guidance, where it looks like it'll be 20 years in a row.

Manav Gupta: And it's because we've got relative stability plus and minus so feel very good about what we put out there to the streets to date and feel very good about some of the tailwind on the GDS side of things and the acquisition of the U S utilities.

Manav Gupta: Think it is going extremely well and we haven't had some of these assets even in the house, yes sure a year. So obviously integration is ongoing disentangle meant from Dominion ongoing all as planned.

Greg Ebel: But, you know, so that's still got to get done before I'm willing to say big success. But from a macro perspective, I don't think in, let's see, that would have been, you know, late to early 23, mid 23, that most people would have seen the uptick in demand in gas, the power side of things, data centers, etc. All of that is an incremental macro benefit to that acquisition. Regulatory environments continue to be along the lines we expected in the acquisition. And the people are great. So I don't know, Michelle, whether you'd add anything to that.

Manav Gupta: But so that's still got to get done before I'm willing to say big success, but from a macro perspective.

Manav Gupta: I don't think in let's see that would've been.

Manav Gupta: Late <unk> or early 'twenty three mid 'twenty three that most people would have seen the uptick in demand in gas power side of things data centers et cetera, all of that is an incremental macro benefit too to that acquisition.

Manav Gupta: <unk> environments continued to be.

Manav Gupta: Along the lines we expected in.

Manav Gupta: In the acquisition.

Manav Gupta: And people are great. So I don't know, Michelle whether you'd add anything to that.

Speaker Change: Thank you got it Greg I mean that growth I mentioned that at Enbridge day is even stronger than we thought there was a real tailwind around electrification, whether that's data centers power generation.

Speaker Change: We were the strength of the regulatory teams helped us close quickly so we're able to bring the utilities.

It faster than we expected to and really start to integrate.

Speaker Change: The integration is going well, we exited our first major system cutover earlier. This week it went smoothly and exactly as Greg said the people are excellent the cultures are meshing well so.

Michele Harradence: And exactly as Greg said, the people are excellent. The cultures are meshing well. So we're really pleased with where things are. And we've got optionality where we want to put those regulated utility dollars. We've got, you know, multiple jurisdictions, and those that provide the greatest opportunities for their own customers, and also for our investors, are the place we're going to put that, call it roughly $3 billion of capital each year on the utility side. Exactly.

Speaker Change: We're really pleased with where things are and we've got Optionality, where we want to put those regulated utility.

Speaker Change: In multiple jurisdictions and those that provide the greatest opportunities.

Speaker Change: For their own customers and also for our investors or the place we're going to put that call. It roughly $3 billion of capital each year on the utility side.

Speaker Change: Yes.

Unknown Speaker: Perfect.

Greg Ebel: My quick follow-up here is the benefits or the decision to move ahead with Transverse Pipeline and additional 10% interest in MATHON. What drove those decisions? Thank you. Yeah, thanks, Manav. Obviously, we continue to really be excited about the joint venture opportunities we have. As we outlined, you know, we've invested the $2 billion today in those, the JV opportunities there, and we have about another billion dollars worth of growth projects that are out there. And these are in, obviously, that Permian Basin, and it ties into our existing infrastructure. We are in that space with TECCO, and we have the storage assets there too with Trace.

Speaker Change: I'll take my quick final opinion is.

Speaker Change: The benefits are the decision to move ahead with confluence pipeline and additional 10% interest in Matterhorn.

Speaker Change: What drove those decisions. Thank you.

Speaker Change: Yes, Thanks, Matt.

Speaker Change: Obviously, we continue to really be excited about the joint venture opportunity we have.

Speaker Change: As we outlined at Investor day.

Speaker Change: 2 billion today.

Speaker Change: The JV opportunities there and we have about $90 billion growth projects that are out there and easier and obviously that Permian basin, then it ties into our existing infrastructure, we are in that space.

Speaker Change: And we have the storage assets.

Greg Ebel: And so, you know, as we look out to what that future is, we see the opportunity to continue to build out there with a really attractive build multiple around that six times. Yeah, it's really that super system, like we built the super system on the liquid side, calling the team there, and to the export world. And I think Cynthia and the team is doing a great job of building another gas super system and serving all those LNG facilities and storage, et cetera. So, it's frankly a bit of a no-brainer to keep building out that side of the system.

With trade.

Speaker Change: And so.

Speaker Change: As we look out say what that future as we need the opportunity to continue to build out there with a really attractive dealt months or around that six times. Yes. It is really that super system like we built the super system on the liquid side Colin team, there and to the export worlds.

Speaker Change: Cynthia and her team is doing a great job building another gas Super system.

Speaker Change: And serving all of those LNG facilities and storage et cetera. So it's.

Speaker Change: Frankly, a bit of a no brainer to keep building out that side of the system.

Unknown Speaker: Thank you so much and congrats on a great day. Thank you, Manav.

Speaker Change: Thank you so much and congrats on a great quarter.

Manav Gupta: Thank you Manav.

Rob Hope: Your next question comes from a line of Rob Hope from Scotiabank. Your line is open. Morning, everyone. Follow up to the last question. So at the recent investor day, you highlighted two to $3 billion of US Gulf Coast expansions on the gas side that you could FID in the next, we'll call it couple quarters here. Looks like you've made some progress with Matterhorn. But looking forward, when you think about your kind of Permian and US Gulf Coast super system, where are you seeing the best opportunities now? Is it more on the storage and LMG connectivity side?

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

Speaker Change: Mario on follow up to the last question. So at the recent Investor Day, you highlighted $2 billion to $3 billion of U S. Gulf Coast expansions on the gas side in the next we'll call it couple of quarters here.

Rob Hope: Looks like you've made some progress with matterhorn, but looking forward. When you think about your kind of Permian in U S Gulf Coast.

Rob Hope: Super system, where are you seeing the best opportunities now is it more on the storage and LNG connectivity side or do you need more kind of we'll call it capacity out of the Permian.

Greg Ebel: Or do you need more kind of, we'll call it capacity out of the Yeah, I think it's a combination. Rob, we see lots of opportunities coming in from the Permian still, that's why we have these ongoing growth opportunities noted, but we have obviously with our TECCO system, that header system there along the Gulf Coast, there continues to be lots of announced expansion opportunities with the LNG exports. We're connected to 100% of the current operating LNG export facilities, so there's lots of upside there. We still have, you know, on the storage side, we noted that we have just closed three open seasons, one for tray, seagrass, moss, so there's going to be, you know, we're just reviewing those results.

Rob Hope: Yeah, I think it's a combination.

Rob Hope: We see lots of opportunities coming in front of the Permian still thats why we have done.

Rob Hope: Ongoing growth.

Rob Hope: Opportunities, but we have obviously with a tech that's heavier.

Rob Hope: How do your system there along the Gulf Coast, there continues to be what.

Rob Hope: Expansion opportunities with the LNG exports were connected to a 100% of the current operating LNG export facility. So there is a lot.

It's about the site that we still have on the storage side.

Rob Hope: We noted that we have just closed.

Rob Hope: Closed three open season, one for Tracy EBIT loss.

Rob Hope: It's going to be we're just reviewing those results. They acquired the last one certainly in this weeks, we're reviewing those results.

Greg Ebel: They closed, the last one closed earlier this week, so we're reviewing those results. But we still see a lot of opportunity to continue to build out the existing header storage super system there. So it's going to be a combination. There's some laterals, there's some storage, there's some specific projects tied to LNG expansion and new facilities, so it's an exciting position to be in and we'll have to compete for capital with all these other projects we have ongoing. Yeah, I love the nature of the, you know, several hundred million dollars at a time. Not that there's anything wrong with several billion at a time, but obviously it's quicker deployment.

Rob Hope: We still see a lot of opportunity.

Rob Hope: And Heather storage decrease that's done that.

Rob Hope: So it's going to be a combination there lateral saracen storage.

Rob Hope: Specific.

Rob Hope: Projects tied to LNG expansion and the new facility.

Rob Hope: It's an exciting position to be in and we will have to compete for capital with I think that'd be projects.

I love the nature of the several hundred million dollars at a time not that there's anything wrong with several brand at a time, but obviously, it's quicker deployment, we shouldn't forget the power side too there's power opportunities along the Gulf coast for the reasons you all know whether it's industrial or data centers. So I would watch for us to get our fair share of that too.

Greg Ebel: We shouldn't forget the power side too. There's power opportunities along the Gulf Coast for the reasons you all know, whether it's industrial or data centers, so I'd watch for us to get our fair share of that too. Thanks for that. And then maybe just following Matterhorn, can you give an outlook of what the M&A environment is looking right now, just given all the volatility out there? You know, are you seeing some opportunities to transact at attractive pricing and for attractive assets like Matterhorn? Well, first of all, I think the important point is that we don't need to do any M&A.

Rob Hope: Thanks for that.

Rob Hope: And then maybe just following Matterhorn can you give an outlook of what the M&A environment is looking right now just given all the volatility out there are you seeing some opportunities to transact at.

Speaker Change: Tractor pricing for Archrock assets like Matterhorn.

Speaker Change: Well first of all I think the important point is that we don't need to do any M&A.

Greg Ebel: It has to really compete strongly against that $50 billion of opportunities that we see organically. And obviously, we're delivering on $27 billion of growth that's really going to drive our growth outlook for the next several years. Traditionally, at this time of a cycle, opportunities do come up. People do need to get liquid. People tend to see valuations, therefore, come down. So, given the size of our company, we're always seeing those opportunities. As we've said, we'll look at tuck-ins. But yeah, they're going to have to be good deals. They're going to have to be accretive to our per share metrics.

Speaker Change: It has to really compete strongly against that $50 billion of opportunities that we see organic Lee and obviously, we are delivering on $27 billion of growth, that's really going to drive.

Speaker Change: Our growth outlook for the next several years.

Speaker Change: Traditionally at this time of the <unk>.

Speaker Change: Cycle opportunities do come up people do need to get liquid.

Speaker Change: People.

Speaker Change: And tend to see valuations therefore come down so given the size of our company. We're always seeing those opportunities as we've said, we'll we'll look at tuck ins, but yes, they're.

Speaker Change: They're going to have to be good deals, they're going to have to be accretive to our per share metrics, they're going to have to be neutral or better to the balance sheet.

Praneeth Satish: They're going to have to be neutral or better to the balance sheet. And they've got to be better than the organic stuff that we have in front of us. But we'll always keep a wide open eye to that. I haven't seen that kind of stress really yet, though, Rob. So, we'll see what happens. Thank you. Your next question comes from a line of Praneeth Satish from Wells Fargo. Your line is open. Thanks, Greg. Good morning. Maybe just going to Texas Eastern, can you help us understand if you could be involved with the Homer City data center project in Pennsylvania, given the proximity of Texas Eastern, it's pretty close to that plan data center.

Speaker Change: And they've got to be better than the organic stuff that we have in front of us, but we'll always keep a wide open to that.

Speaker Change: I haven't seen that kind of stress really yet, though rob so we'll see what happens.

Speaker Change: Thank you.

Speaker Change: Thank you.

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

Satish: Thanks, Greg Good morning, maybe just go into Texas Eastern can you help us understand if you could be involved with the Homer City data Center project in Pennsylvania, given the proximity of Texas Eastern it's pretty close to that planned data center have you had discussions with them to supply the planned.

Praneeth Satish: Have you had discussions with them to supply the planned build out or future expansions? And if so, you know, how much capacity exists in that region on your pipe? And would you have to make a meaningful investment to expand it? Yeah, thanks, Praneeth and Cynthia. As you noted, with that Homer City opportunity, our TECCO system is, is close, you know, we're not going to talk to any specific negotiations that we have ongoing. What I will say just in general is, throughout that area, Texas Eastern has about 10 VCFs per day, or the equivalent is 60 gigawatts of energy equivalent, underutilized receipt points that tie into that Marcello supply region.

Satish: Build out our future expansions and if so how much capacity exists in that region on your pipe and would you have to make a meaningful investment to expand it.

Speaker Change: Yeah. Thanks Puneet.

Satish: Yes.

Satish: With that Homer city opportunity AG Tech ecosystem.

Satish: You know, we're not going to talk to any specific negotiations that we have ongoing but I will say just in general is.

Satish: Throughout that area, Texas Eastern has about 10 Bcf per day or equivalent 60, gigawatts of energy equivalent under.

Satish: <unk> utilized receipt points.

Satish: That tie in to that Marcellus supply region. So we do have some very economical pipeline expansion in Pennsylvania, and Ohio, along our existing right away. So we are having lots of conversations with the developer.

Cynthia Hansen: So, we do have some very economical pipeline expansion in Pennsylvania and Ohio along our existing right of way. So, we are having lots of conversations with those developers, PowerGems, hyperscalers for data centers, that whole area is very active, and so it's an exciting opportunity. And we'll continue to, as you know, I noted earlier, Hopefully we'll continue to keep you updated for multiple announcements over the next period of time because we really do believe that we have that $1 to $2 billion worth of projects that we'll be able to announce in the next six to eight months.

Satish: Power Gen. Hyperscale is for data center is that all area is very active and so it's an exciting opportunity.

Satish: And we'll continue to as.

Satish: I noted earlier.

Satish: We will continue to.

Satish: Keep you updated on multiple announcements over the next period of time, because we really do believe that that we have that $1 billion to $2 billion worth of projects that we'll be able to announce in the next six to 18 months.

Praneeth Satish: and all that would be incremental to the five gigawatts of gas we're providing to serve five gigawatts of power. So yeah, excited about it. We'll see where we go. But you are correct. We are in a good position. Got it. Okay, we'll stay tuned for that.

Satish: And all of that would be incremental to the five gigawatts of gas we're providing.

Satish: To serve five gigawatts of power. So excited about it we will see where we go but you are correct. We are in a good position.

Speaker Change: Got it okay and stay tuned for that and then I wanted to go back to the slide on seasonality slide 13.

Patrick Murray: And then I wanted to go back to the slide on seasonality, slide 13. I know you mentioned the utilities business, among other factors, that's kind of driving that quarterly cadence. But it does look a little bit steeper, I think, than we would have anticipated. If I just take, you know, the midpoint of the 2025 EBITDA guidance and assume 20%, this is for Q2, you end up with an EBITDA figure that's quite a bit lower than consensus. So I just want to understand how to read this table. Should we shift more of the utility EBITDA, you know, towards Q4 and out of Q2?

Speaker Change: I know you mentioned the utilities business among other factors thats kind of driving that quarterly cadence, but it does look a little bit steeper.

Then we would have anticipated if I just take the midpoint of the 2025 EBITDA guidance and assume 20%. This is for Q2, you end up with an EBITDA figure thats quite a bit lower than consensus. So I just wanted to understand how to read this table.

Speaker Change: Could we shift more of the utility EBITDA towards Q4 and out of Q2 or is this more kind of illustrative in nature, rather than formal quarterly guidance. Thank you.

Patrick Murray: Or is this more kind of illustrative in nature, rather than formal quarterly guidance? Thank you. Yeah, I mean, we're not trying to give formal quarterly guidance here, we give annual guidance, we're trying to help the street have a discussion on how this new profile lands, given that we do have the utilities, I think we can help you as we go through maybe detailed conversations on how the assets roll. But it was really just trying to highlight the fact that not only do we have the new US utilities, and the Ontario utility that have both a front and back end weighted profile, but other parts of our business do that too.

Speaker Change: Yes, I mean, we're not trying to give formal quarterly guidance here, we give annual guidance, we're trying to help the street.

Speaker Change: Discussion on how this new profile Lans given that we do have the utilities I think we can help you as we go through maybe detailed conversations on how the assets role, but it was really just trying to highlight the fact that not only do we have the new <unk>, New U S utilities and Leon Taylor utility that have.

Speaker Change: Both upfront and backend weighted profile, but other parts of our business do that too for example on the mainline.

Patrick Murray: For example, on the mainline, we hit a record 3.2 million barrels this quarter. And our forecast was three, we assume we'd be over three for the quarter, but not quite as high as the 3.2, because there is some seasonality there as well. And then go to Cynthia's business in GTM, and depending on weather and how interruptible service gets utilized, that usually happens in the winter months. So really, again, just trying to help people understand their models. As we said, we've had a really good start to the year. But there's still a bunch of year to go here.

Speaker Change: We hit a record $3 2 million barrels this quarter.

Speaker Change: And our forecast was <unk> III, we assume we'd be over three for the quarter, but not quite as high as the $3. Two because there is some seasonality there as well and then Goto cynthia's business in GTS and depending on whether and how interruptible service gets utilized that usually happens in the winter months. So really again, just trying to help people understand their models as we said we've had a really good start.

Speaker Change: For the year.

Speaker Change: But there's still a bunch of year to go here. So that's why we're maintaining our guidance as we've noted so.

Maurice Choy: So that's why we're maintaining our guidance as we've noted. Thank you. Your next question comes from a line of Maurice Choy from RBC Capital Markets. Your line is open. Thank you and good morning, everyone. I just want to come back to an early discussion about U.S. crude oil. I sense a rising value for assets with export solutions, perhaps even acting as a strategic differentiator. So if we could zoom into EIEC again, if you could share your updated outlook for the facility and just broadly the U.S. crude oil export given the global trade landscape. Anyways, it's called Yeah, so we remain bulls on exports, generally all commodities.

Speaker Change: Understood. Thank you.

Speaker Change: Your next question comes from the line of Maurice Choy from RBC capital markets. Your line is open.

Maurice Choy: Thank you and good morning, everyone. Just wanted to come back in early discussion about U S crude oil.

I sense, a rising value for assets with export solution, perhaps even acting as a strategic differentiator so zoom.

Speaker Change: Zoom into <unk> again, if you could share your updated outlook for the facility and just broadly the U S crude oil exports.

Maurice Choy: The global create landscapes.

Maurice Choy: Main reasons call. It yeah. So we remain.

Maurice Choy: Bulls on exports generally all commodities.

Greg Ebel: even outside energy, like the continents along everything. So And having been involved now with Ingleside for three or four years, you know, I think we've furthered our knowledge and conviction. in the thesis generally. And specifically, what advantages one marine facility from the next? Obviously, the facility has a number of advantages. I'm not going to repeat them all, but it all translates each one of those advantages. you know, accumulates into nickels, dimes, quarters, even dollars. So we're trying to now grow that out. Obviously, we're expanding aside, there's another phase under construction that's contracted. And we're also trying to now port that, all those advantages to similar commodities, whether it's NGLs, or we talked about LNG at some point, or low carbon.

Maurice Choy: Even though side energy.

Maurice Choy: The continent's long everything so.

Maurice Choy: <unk>.

Maurice Choy: And having been involved now with ingleside for three or four years, I think we furthered our knowledge and conviction.

Maurice Choy: In the thesis generally.

Maurice Choy: And specifically.

Maurice Choy: What advantages one marine facility from the next.

Maurice Choy: And.

Maurice Choy: Okay.

Maurice Choy: Obviously the facility has a number of advantages not going to repeat them all but it all translates each one of those advantages.

Maurice Choy: Accumulates into nickels dimes quarters, even dollars of.

Maurice Choy: Advantage.

Maurice Choy: We're trying to now grow that out obviously, we're expanding those side there is another.

Maurice Choy: Phase under construction that's contracted.

Maurice Choy: We're also trying to port that all those advantages to similar commodities.

Maurice Choy:

Maurice Choy: Whether it's Ngls or you talked about LNG at some point or low carbon so.

Greg Ebel: So that thesis remains strong. And over time, generally, we're trying to build a longer value chain, like we talked about in gas five or six minutes. you know, further up and and direct and help customers keep as much of that value chain as they can. That's the strategy. You know, we're adding our marketing affiliate to that chain now in a in a modest way. So Yeah, we needed to believe in that thesis. But in a contracted model, this is, you know, it's a strong fundamental approach, but it's also then underpinned, belt and suspenders, if you like, by a very differentiated, contracted model.

Maurice Choy: That thesis remains strong.

Maurice Choy: And over time.

Maurice Choy: We're trying to build a longer value chain like we talked about in gas five or six minutes ago.

Maurice Choy: Further up in.

Maurice Choy: And direct.

Maurice Choy: And help customers keep as much of that value chain as they can.

Maurice Choy: That's the strategy.

Maurice Choy: We are adding our marketing affiliate to that chain now in a modest way so yes.

Maurice Choy: Yes, we continue to believe in that thesis.

Maurice Choy: But in a contracted model this is.

Maurice Choy: It's a strong fundamental approach, but it's also then underpinned belt and suspenders, if you like by a very differentiated contracted model.

Greg Ebel: You see us adding all elements, right? We're adding some more storage at Ingleside, talked about the additional docks that we added. And, you know, in some respects, if, as you see WTI being a little lighter on price, those export markets become even more important, you know, looking at Brent, say, in the $63 range, I think I saw it this morning kind of thing versus to just $60. So we want to make sure we can provide every opportunity for our customers to maximize either growth, but also their netbacks. And the export side of that on the gas liquid side is absolutely critical.

Maurice Choy: Okay.

Maurice Choy: Adding all elements right, we're adding some more storage at ingleside talked about the additional docs that we added and in some respects.

Maurice Choy: As you see <unk> being a little lighter on price.

Maurice Choy: Those export markets become even more important looking at perhaps say in the $63 range I think I saw it. This morning kind of thing versus to just 6%. So we wanted to make sure. We can provide every opportunity for our customers to maximize either growth, but also their net backs.

Maurice Choy: The export side of that on the gas liquids side is absolutely correct.

Maurice Choy: Perfect, that makes sense.

Speaker Change: Perfect that makes sense and my one follow up here is about an earlier comment about you spoke about allocating.

Michele Harradence: And my one follow up here is about an earlier comment about you spoke about allocating utility capital. Based on the best risk-adjusted returns, including economic and regulatory environment, how do you view the Ontario Regulator's recent decision about cost of capital? and Jurisdictions Competitiveness versus Other Parts of Your Portfolio. Yeah, I'll let Michelle speak to that. But obviously, higher equity thickness and better returns are better than lower equity thickness, and even the same return. So I think that's something they've got to be thoughtful about. Some of their discussion on cost of capital even change in ROE doesn't impact us to the end, but you're always making those decisions, Michelle.

Maurice Choy: Capital.

Maurice Choy: Based on the best risk adjusted returns, including economic and regulatory environment.

Maurice Choy: How do you view the interior regulators recent position above cost of capital in.

Maurice Choy: Jurisdictions competitiveness versus other parts of your portfolio.

Maurice Choy: Yes, I'll let.

Speaker Change: Ill, let michelle speak to that but obviously higher equity thickness.

Maurice Choy: Better returns are better than lower equity thickness.

Maurice Choy: The same return so I think that's something they've got to be thoughtful about some of their discussion on cost of capital even change in ROE isn't really impact it doesn't impact us till the end but.

Speaker Change: You are always making those decisions Michelle sure. So I mean, our current ROE was set in a rate case sits at nine 2% net set there three to a 2029 so the.

Michele Harradence: Sure. So I mean, our current ROE was set in our rate case, it's at 9.2%. And it's set there through to 2029. So that decision really doesn't impact us. And we can look at it then. But at that point in time is great point. So we'll have an opportunity to discuss our equity thickness as well, which was raised a couple points for the first time in a long time in our last rate case. So the other thing I would say is, in Ontario, we have the opportunity to earn, to over earn rather on our ROE up to about 100 basis points before we get into sharing.

Speaker Change: That decision really doesn't impact us and we can look at it then but at that point in time, it's a great point. So we will have an opportunity to discuss our equity thickness as well, which which was raised a couple of points for the first time in a long time in our last rate case. So the other thing I would say is and ensure we have the opportunity to earn over.

Speaker Change: And rather than are we up to about 100 basis points before we get into sharing and we're certainly targeting to do that.

Michele Harradence: And we're certainly targeting to do that. I think though, as Greg says, you have to look at the combination of a few things, you have to look at the ROEs, you have to look at the equity thickness. So what's your rate of return on this capital you invest, you have to look at how quickly you get that capital back. Ontario does have a good framework, but so do our US utilities, they have great riders where we have very short quick cycle capital. And then I would say the most important thing beyond that is looking at the regulatory certainty, what's the consistency of what we get out of our regulators and PUCs across the board.

Speaker Change: As Greg says you have to look at the combination of a few things you have to look at there or would you have to look at the equity thickness. So what's your rate of return on this capital invest you have to look at how quickly you get that capital back, Ontario does have a good framework, but so do our U S utilities. They have great riders, where we have very short quick cycle capital.

And then I'd say the most important thing.

Speaker Change: And that is looking at the regulatory certainty, what's the consistency of what we get out of our regulators and PUC is across the board and that's something we look at very closely and there is definitely some differences and we have some of it is very strong very certain and then there's some where there's some more questions. So we're always going to look to direct that capital where we have those good return.

Greg Ebel: And that's something we look at very closely. And there's definitely some differences with them. And we have some that it's very strong, very certain, and then there's some where there's some more questions. So we're always going to look to direct that capital, where we have those good returns, and that certainty for our shareholders. Maurice, what I would say is I'm really pleased with both the Premier of Ontario, Premier Ford, and the Minister of Energy, Mr. Lecce, about their commitment to gas. I mean, they and DOEV obviously should be regulating in an independent fashion, but consistent with the government's policy.

Speaker Change: And that certainty for our shareholders.

Speaker Change: What I would say is I'm really pleased with both the Premier volunteer Premier forward.

Speaker Change: And the minister of energy.

Speaker Change: Mr Lechuguilla, but their commitment to gas.

Speaker Change: And then <unk>, obviously should be regulating in an independent fashion, but consistent with the government's policy and the governments policy is to provide access to gas to the maximum possibility to Ontario.

Greg Ebel: And the government's policy is to provide access to gas for the maximum possibility to Ontario consumers and businesses. And that's a really important signal. I look forward to seeing their natural gas policy update here very soon. And I expect it to be very positive.

Speaker Change: Consumers and businesses and that's a really important signal one and look forward to seeing their natural gas.

Speaker Change: Policy updates here very soon and.

Speaker Change: And I expect it to be very positive.

Speaker Change: Yes.

Unknown Speaker: Thank you very much. And we have now reached the end of our question and answer session. I will now turn the call back over to Rebecca Morley for closing remarks. 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. This concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker Change: Perfect. Thank you very much.

Speaker Change: And we have now reached the end of our question and answer session. I will now turn the call back over to Rebecca Morris for closing remarks.

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

Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Okay.