Q2 2025 Enbridge Inc Earnings Call
Good morning and welcome to the Umbridge Inc. Second quarter 2025 Financial results conference call. My name is Rebecca morally, and I'm the vice president of investor relations and insurance.
Joining me this morning are Greg evil president and CEO Pat Murray Executive Vice President and Chief Financial Officer.
And the heads of each of our business units.
Calling grinding liquids pipelines. Cynthia Hansen, gas transmission, Michelle herin Gas Distribution and storage and Matthew. Amin Renewable Power.
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 1 on your telephone keypad. If you would like to withdraw your questions, press the pound key, please note. 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 slide.
We'll try to keep the call to roughly 1 hour. And in order to answer, as many questions as possible, we will be limiting questions to 1 plus a single follow-up. If necessary.
Will be prioritizing questions from the investment community. So, if you are a member of the media, please direct your inquiries to our Communications team who will be happy to respond.
As always our investor relations, team will be available following the call for any follow-up questions.
On the slide 2 where I will remind you that we will be referring to forward-looking information on today's presentation and Q&A.
By its nature. This information contains forecast assumptions and expectations about future outcomes which are subject to the risks and uncertainties outlined here and discussed more fully in our public disclosure filings. We'll also be referring to non-gaap measures summarized below. And with that, I'll turn it over to Greg Ebel
Well, thanks very much, Rebecca and good morning, and thank you all for joining us on the call. Today, I'm excited to share another strong quarter and highlight. The progress. We've made across all segments of our business last quarter. I spoke about the importance of continued dialogue with policy makers and Regulators to ensure North American Energy Independence and security. I'm up the Mystic about our ongoing conversations in the alignment we're seeing today on both sides of the border to Advanced projects and legislation that serve growing energy demand and Enbridge continues to be in a great position to serve this growing Demand with its large incumbent footprint across all 4 business units.
We're going to start today with a mid-year check-in on financial performance execution, in an update on our growth projects.
A walk through how Enbridge is effectively, navigating trade conflict, legislative change and geopolitical volatility. All in touch on how Enbridge is capitalizing on Rising power demand, in North America before? Providing an update on each of our 4 cor franchises, Pat will then review our financial results and reiterate our Capital, allocation priorities. And lastly, I'll close the presentation with a few comments. On our first choice value proposition before we open the call for your questions.
We've made significant progress on the commitments. We laid out for you at the start of the year and I'm proud of the work. The team has done to execute our financial operational and growth priorities.
Transmission business.
Our strong first half of 2025, gives us confidence that we'll finish the year in the upper end of our IBA guidance range. And we are well on track to meet our DCF per share. Midpoint
the balance sheet is also in great shape, as of June 30th. We're at 4.7 times debt to Evita primarily due to realizing another full quarter of earnings from the US gas utility Acquisitions. That closed throughout 2024 our assets remained. Highly utilized during the quarter and the main line transported 3 million barrels per day.
That system has now been in a portion for 6 of the first 8 months of the year, including July and August.
We closed an investment on our West Coast system by a Consortium of 38 indigenous groups backed by a loan guarantee provided by the Canadian government.
This partnership provides sustained economic benefits to First Nations and is aligned with then Bridges. Continuous goal of recycling Capital at attractive valuations for shareholders.
We also closed the previously announced acquisition of a 10% interest in the Matterhorn Express pipeline in the puran and upsized the Traverse pipeline project from 1.75 BCF for dates 2 and a half BCF for day, driven by strong customer demand.
As a reminder, the Traverse pipeline is part of the Whistler JV, and is designed to transport natural gas between Alpha Deli and the Katy area in Texas.
Work in our planned liquids, Mainline optimizations is ongoing and we're pleased to announce that our recent 100,000 Barrel per day. Open season on Flanagan South pipeline was oversubscribed. We expect to reach FID on the first phase of the mainline optimization later this year.
On the growth front, we sanction the 900 million dollar. Clear Fork project in Texas located just outside. San Antonio the project is fully contracted under a long-term offtake agreement with meta and will support its data. Center operations meta represents a new addition to our growing list of AI and data center related. Customers in gas transmission, we sanctioned expansions of Texas Eastern and a concrete gas storage to serve growing industrial power and LNG demand across North America.
Together, these renewable and gas projects highlight the competitive advantage of our all-of-the-above approach and our ability to serve increasing natural gas and power demand through multiple business units, services, and geographies.
Now let's touch on the stability that Enbridge continues to offer investors. Despite the ongoing volatility we are seeing today.
The markets have been turbulent thus far in 2025, but the volatility has really showcased Enbridge's stable business model and the value of our low-risk commercial frameworks.
Our size, diversity and discipline Capital allocation puts us in a great position to deliver predictable returns to shareholders in these conditions.
Our exposure to tariffs is negligible across our operations, and importantly, Canadian oil and gas delivered to the U.S. via our systems has not attracted tariffs.
Roughly 80% of our EBITDA is generated by assets, with revenue inflators or regulatory mechanisms for recovery of rising costs, which helps to back up our rateable and growing dividends and earnings.
On the tax policy front. The extension of bonus. Depreciation provides benefits to end Bridges near-term growth. And our sanctioned, or late stage renewable projects are not expected to be impacted negatively by the 1. Big, beautiful, bill act.
The second quarter saw continued price volatility across commodity markets driven by geopolitical instability. But n Bridges low-risk business model protected us from those Dynamics with virtually no exposure to commodity prices and over 98% of ebit, do generated by assets with regulated. Returns, for long-term taker, pay contracts,
lastly, our footprint puts us in an ideal position to capitalize on growing energy, demand in North America and Beyond
We are connected to 100% of Gulf Coast's operating LNG, export capacity, and our natural gas systems are located within 50 Mi of 29, new data, centers 78, coal, plants, and 45% of all North American natural, gas power generation.
To over 7 million customers every day and geographies with growing gas demand in the crude Market. Our incumbency positions us as the leading operator to provide new and expanded egress options for customers something. Both producers and policy makers are in fact seeking
And our Renewable Power business is opportunistically providing power to some of the largest Ai and data center players in the world. As the demand for energy across North America continues to grow. Let's take a couple of minutes to Spotlight some of the Investments, we're making related to Growing Power demand.
As you can see from this slide Ember has already won and will continue to win power demand related opportunities by deploying our, all of the above approach to energy in order to serve bluechip customers across various sectors.
During our investor day of March we shared 4 to 5 billion dollars of near-term. Power generation opportunities, across our gas and renewable businesses that we expected to begin announcing within 6 months. I'm pleased to say that we're ahead of schedule with over 1 billion dollars of recently, sanctioned projects between Clear Fork, solar and Texas and the line 31 expansion in Mississippi. In addition, we can now confirm that Texas Eastern transmission will be interconnected to the Homer City. Redevelopment generating facility in Pennsylvania, we are working to commercialize
Opportunities to support data centers and hyperscalers in the state further, adding to our growth backlog.
We've recently completed Milestone projects for solar power backed by ppas with Amazon and AT&T and continue to advance over 5 billion dollars of power demand projects, serving a combined 6, gigawatts of new generation,
With that being said, we can't forget about the progress. We're making across various exciting opportunities in our liquids business, which I'll get into now.
Mainline volumes were strong again, this quarter delivering 3 million barrels per day on average for the quarter and 3.1 million barrels per day for the first half of 2025.
At investor day, we announced up to 2 billion dollars of investment in the mainline through 2028 to support continued High utilization of the system. While also extending asset life and reliability, that investment is now underway. And we will earn attractive returns within the MTS agreement caller of 11 to 14 and a half percent.
We also continue to advance Mainline optimization Phase 1, our full path, fsp open season was over subscribed and the team is now working towards fiding. The 150,000 Barrel per day Mainline expansion, later this year.
Additionally, we launched an open season for the Southern Illinois. Connector, which will leverage our existing footprint and our interests in the Epcot pipeline to provide full path. Optionality for our customers, serving additional us Gulf Coast demand,
Mainline Investments of. This nature are permit, light, provide attractive, economics and will be sanctioned to meet our customers increasing egress requirements. And lastly down in the Gulf Coast, our 120,000 Barrel per day Grey. Oak expansion has partially entered service with full Co expected in mid 2026. Now, let's turn to gas transmission. We've got a number of exciting announcements. This quarter spread out across our footprint in Mississippi. We sanctioned the line. 31 extension of Texas Eastern to serve Rising industrial and power demand all secured under 20-year. Taker, pay agreements with a well-known investment grade customer.
This project was among the opportunities highlighted at investor day to serve growing gas Demand on the Gulf Coast. We've progressed optimization projects including a fifty million dollar expansion of sesh to serve the growing power generation needs of a major electric utility. That's their serving data centers as well as an upgrade to the trace plages storage facility in Texas.
The storage upgrade is being done to increase injection, and withdrawal rates, and as part of a larger expansion opportunity, we expect to realize later in the decade.
In Canadian gas transmission. I'm pleased to announce a 40 BCF expansion of the aching Creek storage facility that will support the growing Canadian LNG Market. That project will also optimize our other expansions underway on the west coast system providing customers with critical flexibility in a rapidly developing region particularly on the LG front.
We are updating our capital investment for wood fiber. As a reminder Enbridge has a contract structure that provides us, the ability to earn a low double-digit return. And we will now set that rate closer to the inservice state, we remain excited about the growing LNG Market in western Canada as all of these projects are expected to enter service in the 2027 the 29 time, period, extending and adding visibility to our long-term growth Outlook.
Now, let's move on to our Gas Distribution business. We remain excited about the long-term growth outlook for our utility business, and the foundational growth that helps to support the dividend in Ontario. The Phase 2 rebasing process is completed setting rates through 2028, in an Ohio, we received a decision on the rate case filed in 2023 while we didn't get all that we asked for, I'm encouraged by the almost 10% hourly and increased Equity sickness, which remains among the strongest returns within our utility. Franchise of note, existing Capital Riders are a great and continuing feature ensuring quick cycle Capital returns which was part of what attracted us to the Investments back in 2023.
Lastly we filed for new rates in North Carolina and Utah. This quarter and expect we'll have new rates in those jurisdictions by next year.
And now I'll turn to the Renewable Power sector and Bridge continues to advance. Its world-class renewable portfolio. Using our financial strength supply chain reach and construction expertise under a low-risk commercial model that delivers competitive returns.
In July, we announced the Clear Fork, solar project near San Antonio, Texas, a 600 megawatt facility that will support data center needs. All generation is sold under a long-term offtake agreement with meta platforms. And importantly, the project is expected to meet all the requirements to fully qualify for renewable tax credits underneath us legislation.
Also in Texas, we are progressing the 815 megawatts of COA Solar Development.
the project is on track to partially enter service in 2025 with full production coming online in 2026
Also an important, the 1, big beautiful. Bill act is not expected to impact any of our sanctioned projects but we'll continue to monitor future developments in this fast moving policy environment. It's our view that the recent us legislative changes makes our backlog of late stage development projects even more valuable
But now I'll pass it off to Pat to go over our financial performance.
Thanks Greg and welcome, everyone. Strong utilization. Across our asset base has led to another solid quarter for posting records. Second quarter IBA despite continued trade uncertainty and geopolitical events.
Compared to the second quarter of 2024 adjusted ebit is up 7% earnings per share of 12%. While DCF for share is comparable.
In our liquid segment, we saw strong volumes with the mainline transporting 3 million billion dollars per day. Although we could results at fsp and spearheads resulted in a slight decrease compared to 2024, in gas transmission, strong operational performance across our pipes and storage Assets. In addition to revised rates on us. GT assets added to the segment year-over-year.
And dbr system Acquisitions in addition to Venice. Extension entering service at the end of 2024 provided additional contributions.
Gas Distribution is up relative to the last year with the Acquisitions of the US. Gas Utilities being the main driver higher rates, customers and store revenues at Umbridge gas, Ontario. In addition to the Colder Weather also contribute to the strong results within the segment.
In Renewables, we saw lower contributions that our European offshore assets which were partially offset by stronger wind resources in North America.
For DCF per share and EPS higher financing costs, current taxes and maintenance Capital primarily driven by the US Gas Utilities acquisition partially offset, the higher ibida contributions. The pressure metrics are, of course, impacted by the, at the market issuances that were completed in the second quarter of 2024 to pre-fund the US utility
I'm pleased to reaffirm our 2025 guidance and growth outlooks across all metrics with our strong performance, through the first half of 2025. We're in a great position to finish the year in the upper end of our guidance range for ibida.
the resilience of our business model is really on display as we continue to deliver predictable returns through Market volatility,
But are partially offset by higher than expected us interest rates.
We remain confident in our ability to achieve our near-term and medium-term growth outlooks.
Now let's touch base on our Capital, allocation priorities.
As you would expect, we continue to be focused on disciplined Capital. Allocation, our balance sheet provides us with financial strength and flexibility and our debt to ibida has decreased to below the midpoint of our target range over the past few quarters. As expected, following the close of the US gas utility acquisitions.
We also extended our track record of recycling Capital at attractive valuations the investment by our first nation. Partners in a 12 and a half percent stake in the west coast system, which closed in July generated, cash proceeds of 0.7 billion and demonstrated our ongoing commitment to economic reconciliation and partnership with indigenous communities.
1 of the keys to our value proposition is to sustainably return Capital to shareholders, and we prioritize being in the 60 to 70% range of DCF payout.
Our dividend is underpinned by high-quality low-risk cash flow growth and continues to support our dividend Aristocrat status. As a reminder, we've increased our dividend to shareholders for 30 consecutive years, and we expect to return approximately 40 to 45 billion dollars over the next 5 years.
In terms of further growth, we will continue to make disciplined investment decisions and prioritize low multiple Brownfield and utility-like projects with our $9 to $10 billion annual investment capacity.
What I especially like about this quarter is that we've announced our significant progress on opportunities in each of our four business units, and those opportunities are spread throughout the end of the decade, adding even more clarity to our growth plans. And with that, I'll pass it back to Greg for some closing remarks. Well, thanks very much, Pat. As you've just heard, it's been another strong showing from all the teams this quarter in Bridges. We're ideally positioned to deliver predictable results through virtually all economic conditions and cycles. Our low-risk business continues to prove its value to shareholders, evidenced by the consistency of our cash flows and earnings growth. This year marks our 30th consecutive annual dividend increase, supported by our business model.
We've also secured high quality and sustainable growth by it. Are now 32 billion, secured Capital programs, adding visibility to our expected 5% growth through the end of the decade.
We will continue to evaluate a creative tuck in and tax efficient investment opportunities that fit within our wheelhouse to diligently ensure lasting returns to shareholders. And with that I'd like to thank you all for listening and operator. Please open the line for questions.
Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again, your first question comes from the line of Jeremy tonette from JP Morgan. Your line is open.
Hi, good morning.
Morning. Jeremy.
Um, just wondering if you might be able to frame a little bit more, I guess opportunities you're seeing across your footprint as a relation to Natural Gas, uh, expansion to serve incremental power demand in, um, you know, possibly data center demand growth as well. Uh, we've seen news coming out of, uh, um, you know, Pennsylvania energy and Innovation Summit a lot going on in Ohio as well. I think the slides reference other opportunities across your footprint, such as in the west. So I was just wondering if you could, um, frame a bit more, uh, the opportunity set where you see it most across, uh, the portfolio. And I guess uh you know, timeline to new projects materializing. Do you see this kind of a A near-term or just uh you know kind of steady Cadence over time?
Well, Jeremy, maybe I'll start and then, Cynthia can chime in too and maybe even, yeah, I know, not on the gas side but maybe if Matthew, too. So it's really all of the above, like, we we in the GDs business and the GTM business and our renewable business. Uh, I was at the technology and economic Summit, you were talking
Look like. And then, let's not forget about the renewable side. I know you're asking about gas. So it's right across the system. Haven't seen that much in Canada yet, but I think that's actually an opportunity to come to Cynthia. If you want to add more from what we had laid out back at the investor day. Yeah, I'll
Transmission 5 35 Plus opportunities to 11 BCF of gas about, you know, 4 billion 1 to 2 billion of that and that late stage development. Right now we have 10 plus, uh, specific data center opportunities in that late stage. Um, of course, we're located, you know, next to the Natural Gas, uh, generation. So 45% of all natural gas power Generations within 50 miles of our system. And within that area too, that 50 miles is 29 new data centers.
And then, of course, we still have the opportunities for Coke, gas conversions. There's 78, coal plants in that, in that area. That's about 8. 800 gigawatts, the current operate, uh, of current power generation.
So what I would say is we're seeing opportunities across the system, uh, in the US in particular, and that's not to uh, discount the opportunities we have in the natural gas side with along us Gulf Coast to serve LNG. So, we still see lots of opportunities there in Canada. We've done lots of expansions and as was noted with the storage at April Creek, that's going to serve more LNG opportunities. And last quarter, we had announced our Birch Grove expansion too so we can continue to see a lot of opportunities here.
Got it. That's, that's helpful. Thank you for that. And just want to Pivot to Wood fiber. If you could, uh, if we could provide a little bit more detail on some of the drivers in in the higher cost expectations there. Uh, and as well as maybe, just if any more details to share, it seems like you're still have the ability to earn a low double digit return. But any any color, uh, incremental on those 2 points would be helpful. Thank you.
Yep. For sure Jeremy. You know, I'm uh, and we are never that pleased when we see more Capital than we originally planned. However, with with fiber, as you mentioned, our contract structure does allow us to earn that double digit return on Capital uh as we agreed to invest in a project. Fortunately and through the agreements with the Departments, we're now going to set that toll on the higher Capital, Mount nearer to the projects in in service our partner, which owns 70% of the project as you
You probably recall. They they do take Capital cost risk, but they get the benefits of selling the LNG commodity. So I think it's a really good balance of interests there. Um, and I guess my point being well, we're always really focused on the capital B deployed to the couple of dozen projects. We've got an execution right across the portfolio. We're equally focused on the contractual and Regulatory structures around that Capital to ensure to the extent possible that we can make sure we get the return uh protected should Capital costs change particularly on multi-year projects. And I really think that combined Focus uh is serving as well on this project. Now with respect to Capital costs increases. I wouldn't, it's not really 1 thing, right? We've had some changes in, in building codes permitting, delays not a new issue for most, uh, jurisdictions. Um, we're adding additional flotilla. So that's where we, uh, house our, uh, employees. So that'll create room for another, uh, uh, 900 approximately.
Folks, as we get into the heavy builds and then uh some site conditions. So all those are really added up to this side. And again, the key is uh as you pointed out our ability, to continue to earn that low double digit return,
Got it. Thank you.
Thanks, Jeremy.
Your next question comes from a line of Robert kelia from CIBC Capital markets. Your line is open.
Hi, good morning, everyone. I was hoping, um, Greg, you can discuss how you're seeing energy policy evolving in Canada and if you could compare the prospects of a new pipeline to Tidewater, compared to some of the various incremental expansion opportunities that are available in the industry on the liquids pipeline side.
Al projects, and you know, you can see those in the presentation. Uh, that's the first move. Uh, it's the most valuable market; it's the smartest way to do this. And then when that's done, and as our customer production grows, uh, that's when an opportunity could be created to go to the West Coast. Um, and there's lots of discussion with governments on that. And as you know, Robert, we have been a proponent of such a project in the past and, in fact, invested several hundred million dollars to get there. So the issue is not one of being a proponent. The issue is one of government policy setting the conditions for that investment to occur. Let's be honest, the government has not done that yet, and it's not clear they intend to, at least from our perspective. In particular, we are still under an admissions cap in place for our customers, which really stifles their ability to grow oil production. And then secondly, the West Coast tanker ban remains in place; that, frankly, as long as that's there, it would make...
Make building a pipeline to the West Coast being a pipeline to nowhere.
Um, so and nothing's been deemed in the National interest yet either. So lots of us to watch from an industry perspective, we're very active on that front. Um, but we're continuing to find ways to serve our customers needs by adding that incremental egress, uh, that they really want, which really means the Gulf Coast. So, um, TBD, uh, meanwhile
Well, uh, as you're seeing South of the Border, a lot of changes accelerated permitting. We even start to see it in changes to the Army Corps of Engineers, um, and a desire to actually build energy sovereignty and project power. And so hopefully that'll translate up here um, as the government gets its footing. And in the meantime, we'll continue to provide counsel and advice to folks like the premier of Alberta who, you know, she continues to work to advance, not only the provinces interest but I actually think Canada's energy interests and sovereignty via new energy infrastructure.
That's a very helpful response, thank you. Um, and I was just curious how the um
how the, um,
Ohio rate case order impacts your um strategy on rate cases in general in the US franchises and obviously Ohio in particular
Yeah, Michelle's here. I let her go at that obviously. Regulatory expertise is something we're very focused on sure. Uh so obviously we were disappointed in the
O Ohio, rate case. But but uh, really it's the turning on a couple of I'd call it legal and Regulatory issues is Greg mentioned in his opening remarks. At the end of the day, the fact is, we still have really strong Roe amongst the, the best that you can have. We have fun, increasing our Equity thickness. We didn't have any material denials into what we submitted as appropriate on M.
All of the capital that we've invested is has gone into rate base. Uh, we continue to have the strong Capital riders that we really like to know Ohio so it's still a very strong and productive jurisdiction, but we do have a couple specific issues so that we think there were errors made by the puc in Ohio and we filed a rehearing about a week ago, a week ago today on that. So we're we're confident in the Ohio utility and we're certainly confident in its growth as, as we was mentioned in an earlier question, lots of lots of data centers a lot because generation there. So it's a good, uh, it's a good utility but we are in rate cases in all 4 of our util major utilities. As we mentioned, we're coming to the tail end and Ontario and then we would expect to see our results in Utah and North Carolina coming through in the fall. I think the big difference though for Utah and North Carolina is their rate. Cases are a matter of routine. We go every 2 or 3 years. So it's really just a question of updating things having a discussion about what's the most appropriate, uh, levels of
Return, without the 15-year lag that we had in Ohio, that that really created a lot of complexity in the Ohio rate case. So, we're very confident with North Carolina and Utah. Good relationships, their transparent work. So
Excellent, thank you.
Your next question comes from the line of Aaron. Mcneel from TD Cowen. Your line is open.
Good morning. All thanks for taking my questions. Uh, Greg you mentioned in your prepared remarks, but can you speak to the Cowboy solar and 7 Stars projects? I guess I'm just trying to get a sense of if your customers are encouraging you to get these types of projects across the line, just giving the changing uh tax credit landscape and as it relates to other solar projects in your mid-stage development bucket. Are there any practical limitations that we should be thinking about in terms of your ability to get more across the line? And then I guess finally, you know, just given the urgency, do you have the room and your annual investment capacity to get more projects like this done?
Yes, so we I'll let Matthew kind of jump in here in a second. But 1 thing I would point out is you see our customer need is driven not just on the renewable side. Historically, maybe more focused from an ESG perspective today. The issue is the need for power all types of power, right? So and you definitely see that in like the metis and the at&ts and Amazons. Um, yeah sure everybody uh wants to kind of move forward on the sustainability front but it's really that need for power. So the late
Stage stuff that we have, uh, continue to see if anything an increase Matthew, maybe you can speak to that in requests for that power. I think your question there and if I'm hearing it correctly, really, you know, post the projects we have and that are in late stage, all of, which can, uh, be done within, uh, the new legislative changes in the US. It's really after that, the next stage of later in the, in the decade or the end of the decade and Beyond, uh, you know, without the tax incentives, will they be attractive? I think that's a TBD. Um, but it doesn't uh, it doesn't prevent the projects that we have in the backlog from moving forward. That's for sure. And if tax incentives aren't an element of projects on a go forward basis, they're going to have to compete. Just like everything else with capital and we'll see what happens. Macro is it, you could make an argument. What you'll see is power prices go up, uh, which still allows you to make your returns but we'll see what happens if that's fine but if you want to speak specifically
To to those 2 projects matter. Yeah, sure. Thanks uh thanks just to add what to what Greg said. Um we do have some projects uh in addition to the ones we've announced that are late stage and with a very high probability, we'll continue to qualify for the credits and we do see very, very strong customer customer demand from these Blue Chip type customers like a meta and we're very pleased to add them to our roster and these are the types of customers that want to work with Enbridge. Not just in our renewable business.
But frankly across our gas businesses. Is Greg talked about it's it's really a multi-platform strategy uh to satisfy demand for electricity, that's Rising rapidly. Uh we do. So I think we have visibility to some more of these projects. You mentioned a couple uh that should qualify but the key is to be very disciplined in this environment. Uh, it's very fluid. There's still some moving Parts. Uh the the bill was relatively favorable on the tax credit front but there are still some administrative actions that could occur so we'll be conservative um and we'll be opportunistic but uh we'll stick to our very strong Capital discipline in renewable. As Greg said I think um 1 thing to note on the 7 stars that you mentioned that is actually a Canadian project. So uh I think the policy in Canada is much more stable uh and predictable right now um that's a win project in Saskatchewan on Cowboy. We'll see. It's a late stage project.
Solar project in Wyoming. And again, on that 1, uh, it'll have to hit our low-risk commercial model and that's still evolving frankly. So uh we'll keep developing those projects but we'll be disciplined uh, and low-risk in our approach to FID and Aaron. I think your last point was on the, uh, Capital capacity. Yeah, I mean, the projects that Matthew has spoken about in the opportunities that we talked about for Renewables uh at the investor day, very much take.
Into account in our financial plans and uh they would they even with those projects coming forward, remember we always have a couple of billion dollars of incremental capacity we could invest. So it's really not, it's not capacity. It's more investment quality and return relative to what is a plethora of opportunities across the uh the entire business.
Maybe just as my follow-up 1 point of clarification you you've mentioned Homer City a couple times today looks like this Project's pretty far along. Can you just give us a sense of you know, timeline FID potential, Capital requirements returns and service date and any potential gating items.
Yeah, Cynthia, can chime in here, but to be blunt know. Uh, like I think it is, it's kind of far along from an announcement perspective, but there's a lot of work here, right? That's a 4, gigawatt plus project towards the end of the decade, uh, you know, they're working through getting their guest supply, um, agreements and principal. There's a lot of pieces in there. Um, so, you know, it could be everything from a straight lateral to an extension of Texas Eastern, but until the customer actually has determined exactly how it wants to deal with that. Um, all I can tell you is we will get our fair share.
Yeah, thanks.
Great. I would just add that we are in those discussions, these discussions have started you know months ago. It'll take a little while until we get through that final design and the commitments. Uh, as Greg said we will definitely have Community to participate. I would note that Texas Eastern has about 10 bcfs per day. Um, underutilized receipts potential in that Marcelo Supply region and so we can do some very economical pipeline expansions
You know, the serve Pennsylvania and Ohio along our existing right away. So it's great and we have lots of ongoing conversations with developers, power, generators, hyperscalers around that area of Pennsylvania, and Ohio. So, more to come and we'll keep you posted. Yeah. You know, Aaron. I, I think about this as winning by a lot of singles and maybe the odd double. Um, you know, I think as you would well understand say a gigawatt plant takes say, 150 a day, uh, gigawatt, gas plant, you know, that's not a massive pipeline, right? So, you can see that with line 31, you can see that with with the, uh, with the sesh development. So, it's a lot of incremental pieces built very economically that add up to a really nice investment. So sometimes I think people looking for the Big Splash billion dollar pipeline projects, I think those are going to be few and far between for individual data centers. So I think
you got to keep watching these incremental pieces and frankly as investors I think you should
So I'll do $100,000 million dollar expansions that happen quickly, relatively permanent life, probably not cross state. Even though it may involve interstate pipe, I'll do that all day long versus a big, say, greenfield, new billion dollar pipe.
That's helpful. Thanks everyone. I'll turn it back.
You are. Next question. Comes from a line of pit. Satish from Wells, Fargo, your line is open.
Thanks, good morning. Uh, you know, maybe I'll just uh, piggy back off of that question. So, um, you know, you you you've talked about obviously a lot of power generation opportunity and and things. But um, so far, you know, the announcements on the, on the gas pipeline side. Um, the pace of announcements has been uh a bit slower compared to peers. Um, I mean you you talked about Having excess capacity so maybe that's 1 of the reasons why your projects are are maybe smaller in size than some of the larger builds that that are capex projects that we're seeing. But maybe you could just kind of walk us through, you know, the, the differences here, um, on Texas Eastern versus, um, some of the other competitors. And, and is it, is it because you have excess capacity, are you waiting for the right returns? Are their dependencies tied to, you know, Associated utilities. Just trying to get some more color there.
Well I think it's a bit of both that I'm not sure. I'd agree with your view that people have actually made more announcements on the other side. I think there's people talk about stuff, but let's go down the list, right? You got a gigawatt and a half billion dollar projects and uh, for TVA. So we'll proceed with that. That's going ahead in North Carolina and GDs. There's a gig 1.4 gigawatts 600 million dollars,
Having signed up AT&T on the renewable side. So I think it's an all of the above opportunity for us and uh and I'm a big believer that much of this is actually going to be done with utilities on the power utilities. And you will note that in neither the case in Mississippi or the sesh project, did we announced which utilities those are 2 and that's because they're not really keen on actually, uh, indicating exactly what we're doing on the data center side. So, I think, I think you'll you'll find I think if you, if you crawl through it and maybe we can do a better job of communicating that to you. Uh, that there's lots of pieces that we're knocking off. And I think we're actually ahead of what we said in terms of announcements, uh, from, um, the investor day when we talked about the, uh, 18-month look forward of which we're now what 4 months since that uh that
Since that time frame and more to come,
Yeah, no. I I I mean, just to kind of clarify. I think you're you're definitely getting a lot of traction, uh, certainly on the renewable side and on the Utility side. Um, so so I'm I'm not saying there's there is an exposure to the theme, but it was more just on the gas pipeline side because you have a Premiere footprint there. Um, and you're kind of in this, in the, in the heart of this, especially with Homer City building, um, would have thought there there would be more but like you mentioned, maybe it's, uh, it's it's TBD and, and we'll definitely stay tuned. Uh, maybe just Switching gears from my other question. I mean, you, you mentioned obba, uh, and the bonus ddna.
Provisions there that could benefit near-term growth. I I guess just from a tax perspective, um does that lower your cash tax burden in the near term? Um when do you now expect to be a meaningful cash? Taxpayer.
Yeah, thanks for that question. Yeah. I think, uh, generally it's a very positive outcome from the various tax, uh, changes as you said, extension of bonus depreciation, which affects a big portion of our overall business. I think, the way to think about it is, uh, this further, uh, you know, ads helps with the fact that we'll now be able to grow per share, kind of in line with our EBA Guidance, the last few years there's been a bit of a differential because of a growing uh cash tax, but this will help to offset that and uh give us more and more confidence and Clarity into that growth into the back part of the decade. So, um, yeah, we're excited about it. Uh, and we think it uh can help to grow our cash flows for our shareholders.
Thank you.
For our next question, we turn to Rob Hope from Scotia Bank. Your line is open.
Uh, good morning everyone. On the status in our theme. Can you maybe add a little bit of commentary on how you're thinking about the contract contractual Frameworks and contractual protections? Uh, regarding who the counterpart is, and how you would potentially alter it if, at all, uh, if it's a utility customer or a behind the fence,
Customer.
Yeah. Obviously from a credit perspective other than and you see this on the renewable side, the Googles and metis and AT&T is there obviously super credits. Um, and that's why we're actually on balancing 75% of the opportunities with utilities who are existing customers today. They're amazing credits too. So and they like to sign up for long-term 1015, 20-year contracts. Um take your pay. If it is with a small
Data center hyperscaler player. I we look at that really carefully. Um and you know some of those folks would have to probably provide LC's Etc but um you know that's why as I said I think as this get continues to move forward rapidly, I I'm a strong believer. You're going to continue to see those utility players there because this isn't as easy as what people think uh, and the commitment to sign up for a 10 or 15 or 20 year, uh, pipeline contract or renewable. Contract says, the big players will will be there. So, um, from a analytical perspective, with all the data center opportunities out there, the winners here, just like on the pipeline Sign will be the big players with scale and that's the customers that will largely largely serve. I
Layers and on the utility relatively small, behind the meter stuff. Uh, you'd see that as a typical cost of service structure inside a utility super safe for the investor and very fair for the customer.
All right, appreciate that.
Yeah, exactly.
Um and then Switching gears here. Um just regarding the 9 to 10 billion dollars of investment capacity per year. You know it is looking like you're getting you know towards that range for 26 and 27 based off of, you know, the recent wins. You know how are you thinking about the Cadence of when new or the games of project announcements and layering further Capital? Uh, in the next couple of years or is now the focus turning towards the kind of we'll call it Beyond 27 time frame,
Yeah, I can take that. Uh, Rob. Yeah, I think it's fair to say that in 25 and 26, we've been filling up the opportunity. Set pretty well over the last 6 to 12 months and I think that should give people more and more clarity into that kind of 2728 growth rate. Um, and I think it's also fair to say that you, you look at the projects that we announced today, you know, within service dates around, 28, 29, that we're now starting to fill in that back piece. We still probably have a little bit of capacity, um, to take some of the smaller bite-sized things a quick turn Capital, uh, as we go here, but I think your, uh, call meth is probably right and that we, I think we've added a lot of great projects that add that Clarity, call it to the middle.
Of the next half of the decade and our job is to continue to provide, uh, High return projects, into the back part. So from a capacity perspective, as I think I said in my remarks, uh, I like the way it's spread out across our businesses, but also spread out across the the rest of the decade here. So, uh, feeling very good as we get more transparency into that. Yeah. I'd I'd say, our our business development team is very much focused on the back half of a decade uh and have been. Alright, so that's about extending uh the growth which uh you know, we've got a lot of confidence in it that post 26 period and then as Pat says most of what we talked about today will be very little capital.
Uh, in the next 12 months, uh, and the stuff that does have Capital like on the GDs side of things that, in some cases, you'll start to earn on it before it even goes into service. But otherwise, it'll actually generate 80. But uh uh, within say the 12 months which of course then creates uh capacity, right?
Thank you.
Thanks.
Your next question comes from a line of Ben fam, from BMO. Your line is open.
Hi, thanks. Good morning. Just want to go to your um,
Uh, your backlog and returns, and as I look at some of these projects you sanctioned the last couple of years, you mentioned what fiber loaded up with digital returns. 10% returns. I want to look at that, and I look at the new projects you're now seeing today; much better returns.
Is is it is a trend then for Nappa location. Increasingly shifting more these higher return projects that
You know, you talked about the singles. High returns, that as we look up the next 12 months, that average return is going to start moving higher in that secured backlog.
Yeah, absolutely. I think you put your finger on the great tension inside the company—lots of opportunities, but only those projects and jurisdictions that provide better returns.
Of course, uh, Michelle has higher multiples, but clicker cycle. Uh, and um, so yeah, it's a, you, you should see and this is very much our focused on a steady and it's a big boat to move, or a big Dominator to move increase in return on Capital, uh, employed as we move up the chain in value, added Investments. You you hit it right on. It's it's actually a really nice environment as capital allocators um to be able to pick and choose the best return so we can keep those steady uh and stay stable and growing um earnings that you all expect from us.
And got it.
Um, maybe switch it to the the storage side. Yeah, the a can expansion. Can you can you confirm is there more white space, uh, beyond the 40 BCF a day and then
Uh, what's the strategy on the U.S. storage assets? Is it more recontracting or is there an opportunity to expand as well?
Well, since you want to speak to that, sure. So, this 40 BCF at a concrete gives the most accessible. There would be other opportunities, but they would not be as accessible as this 40 BCF. This was part of what we knew in the acquisition, that it would be an easier stage step to get through.
As it comes to other opportunities on, on the Gulf Coast, we continue to look at that. We had some Open Seasons for storage, expansions that, uh, we launched in May, and we've gotten some really good interests. So we're looking at developing our salt cops Caverns there, along the US Gulf Coast, of course, we expanded Trace, uh, Caverns for, uh, that just got into service at the beginning of the year. We also a, a Greg noted or continuing to optimize the structure there. But we're looking at whether uh with the Open Season interest will be expanding more at Trace Egan and loss. There's a lot of obviously opportunities in that area and the continued, uh,
Expansions and and LNG growth, just provide some really good opportunities that we're excited about right now. Yeah, sometimes I think it's underestimate, you know, we've got 600 BS out of storage across North America. Uh, don't forget, you know, Cynthia's got great elements here and the Contracting has moved out a little longer and higher, you know, all that stuff. Sort of more 3, to 5 year type contracts, uh, but at a higher rate than what we've seen per se. The Last 5 Years, that's kind of changed in the last 18 months. And don't forget at TDS, we have a 100 or so, uh, BCF of storage that is, um, unregulated. Uh, and is all the needs that come in and the power projects we're talking about LNG. Um, not so much on data center, but LG Etc, um, that makes that storage all the more valuable, right? So, uh, it's a good time for storage on the Gulf Coast and the Great Lakes region. And obviously, in Western
Canada or Akin really is the only player uh, in BC as LG comes off.
Okay. Thanks. Thanks for update.
Thanks.
Yo, our next question comes from Sam Burwell from Jefferies. Your line is open.
Hey, good morning, guys. Thanks for squeezing me in. Um, this has been hit on a little bit from some other angles, but I just wanted to ask: what's your appetite for Greenfield gas pipeline in Canada? Uh, there's a pending LNG project that needs a pipe and likely someone to develop it. So, would that be of any interest to you? If you got assurances similar to what you said you would need to underwrite a larger pipe on the crude side.
Well let's see here speak to but I think there's no death, seems like gas pipelines in western Canada or Cross Canada seem to have a not not easy, but an easier road than say liquids lines. Uh and as you know I think we've set ourselves up to do that. The West Coast system is fabulous. Uh indigenous participation in the west coast system is fabulous setup. No guarantee that that gets you consent but very helpful in the lining interest. But Cynthia yeah we still have the specific Trails pipeline project or P2P projects uh would serve you know on to the West Coast. Uh, so there's future opportunities there, we'll continue to maintain that. It's fully certified. Of course, you know, that would require a new large-scale and LG facility in the region to proceed. But
We are.
Obviously very supportive and continue to look at opportunities. It would as Greg, noted have to hunt in an overall Capital allocation, but it is something of course with our West Coast system and that knowledge and experience. And now with our our recent move to improve our indigenous relationships in VC, I think we're well positioned to support that. Yeah, I think the situation is it's going to any green field pipe in Canada. Is going to going to have to have better returns in the west coast system uh because you know the West Coast system is great and been there. It's a cost of service type structure but you're not taking on the risk you would with a with a green field project so that that that would be the determining factor. And as we've talked about throughout the call, we're not exactly opportunity poor.
Thanks.
You are. Our next question comes from the line of Manav Gupta from UBS. Your line is open.
Um, good morning, guys, congrats on a very strong quarter and I think it's not appreciated enough, but you probably indicated that you're coming in towards the top end of the guidance. So, given your track record, we actually think you might beat it, but we'll keep our estimates within that range. Uh, my question to you, is a little bit on the Southern Illinois, connector. Open Season. Uh, looks like a very exciting project. Uh, can you talk a little bit more about this project and how the, what, what the path forward for this project is?
I think the guy that runs the liquid's business is here. You usually get the first question, so I'm glad he gets probably the last one. Yeah, good morning. Good morning, MAF, and uh...
We're excited about uh building out the uh the plumbing in North America here to serve.
Some long-term pretty sticky demand and so um maybe unlike mll1 uh so don't know our connector is is more of a a recontracting play. So it's it's it's kind of a uh it's not new eras over the
Canadian-U.S. border. But think of it as, um, long-hauling.
Uh, existing, uh, barrels on the system even further.
uh, to serve, um,
Some Louisiana refineries.
Uh, you know, adding to that, uh, you know, 75% of refineries serve the continent. So, it just adds another market.
To to the network and an efficient way, um, right using using existing pipes and and in this case, um, you know, partnering with existing JB partner. So, uh, process on that 1 is uh, the Open Season. Um,
We will go into August, and we'll look to.
uh,
Roll some contracts on, on the spearhead Pipeline and and add further long-term sticky paths to the main line. So that's, uh, it's exciting. Uh, and, uh, we'll be looking for more of those type of projects here, to, to complement the the low multiple, uh, uh, buildout and egress ads for customers.
Perfect. It's on top of the so I'll turn it over. Thank you so much.
Thank you.
You're our next question.
Your line is open.
Hi. Good morning. Uh, Curious what the remaining gating items are on the main line, uh, expansion from this point. And are you expecting based on discussions that Returns on this are going to be carved out uh, separately from the CTS
Um, yes. So, as as, uh, mentioned in, in the prepared remarks, uh, we're, we're looking at and tracking for, uh, an FID later this year. Um, the, uh,
the primary gating item uh, has has has been achieved, which is the
Open season on the, uh, southern part of the path Flanagan South, and that was over subscribed. So lots of, uh, interest in in long term, uh, demand to the US Gulf Coast. Uh, the other dating item is, uh, working with with the traditional, uh,
Counterparties within cap. If you like or industry on um on basic kind of rolling in the, the mainline Capital into the rate base and uh there's many precedents uh for that historically, we've expanded the mainline
You know, countless times over the years and we're we're confident we'll uh, come to agreement with industry on that. Um,
And so it would fit within, uh, CTS or rate base or MTS or rate base. And when we, when we roll, uh,
You know.
The subsequent.
Tranche of of Mainline agreement Beyond is expiring in 2028, uh, that Capital would be, you know, duly considered in in the rate base of the main line going for it so we'd earn of and on the capital and the main line as well. So uh, 2 parts to that project kind of the main line and then uh finding itself and see what at the gulf. And uh we've got many precedents for doing this historically. So there's some, you know, a little bit of gating there, but, uh, a well, uh, treaded path, historically to do such
There's a few different projects. Proposals now to bring per and gas to other markets away from the Gulf Coast.
So I'm curious what you see, as the next steps for your JV with white water, you know, can you extend the value chain into Louisiana? Do you look more at storage? What other opportunities do you see in that, uh, JV with white water, the next few years?
Yeah.
Thanks, Keith. You know, we're really pleased with how our investment in and our joint venture, with Whitewater, has gone, there has been obviously some upside. Since the original 1, we continue to have expansion projects, you know, with Traverse. We just upsized that, um, we still see a lot of gas that would flow or want to flow to serve the the LNG markets. And so, we think that there's further expansion, um, opportunities there, I know Whitewater, just announced, uh, with a similar project yesterday that saved up by Pelicans. So we're still seeing a lot of interest in that area the, uh, Traverse pipeline as was, noted provides more interconnectivity, uh, to allow that bidirectional flow between aguadulce and Katie Hub, so that does create that tie, it does tie, you know what we loved about that those assets is, it does tie to our existing footprints, that header system that we have with techko and
Of course, Trace splash of storage. So yes we would look at all opportunities to expand to to move those volumes. And we continue to see a lot of opportunities on a go forward basis and we we could do something on our own too we could. So it's not just white water, it's obviously, you know, the customer-driven and you know, do we think we have a better most trap than maybe the JV? Although, as Cynthia says, we've been really pleased with that the way that's operated together. So yeah, anything's on the table there and as, you know, as you go up in the region, uh, the demand for that gas continues to rise. And, you know, as as Cynthia just said I think it's you witnessed that and going from a b in 3/4 to 2 and a quarter on the Traverse pipeline. So the opportunity is there and we'll either use the JV or or we'll figure out something on our own.
Thank you.
Your next question comes from a line of Maurice Choi from RBC Capital Markets. Your line is open.
Thanks and good morning everyone. Um, I'll just stick with 1 question but it's more of a wholesome question about relationships of customers rather than delivering individual assets. Um, if you continue to hear more records spending on AI, you know, how broad of a corporation uh discussion did you have with meta?
In terms of supporting their needs Beyond Clear Fork, and maybe even AT&T and Amazon since you touch on them earlier, recognizing that enrich certainly has the assets expertise in relationships across all energy forms.
Well, you know, maybe I'll start in in, Matthew can chime in here, um, it's that's actually a really great question because, um, you know, I would say early days, you know, you're almost dealing with supply chain people where they see it as a a source of something they need IE power or the case of gas uh to run their operation. I think, as time goes off, we're moving up the chain and who we're dealing with at these corporations because of the real strategic nature of energy which we all know. But it's not, you know, that's not something. Maybe the tech world or data centers. We're kind of thinking through in the same way that we have. So making sure we understand their long-term interests. What they're trying to do. The scalability is has caused it to move up, as opposed to just be a supply chain issue. Um, yeah, I totally agree. Um, Maurice. Thanks for the question. That's exactly how we think of it. And, um, you know, we're in the early Innings of a major Trend in
Here, uh, player and someone who's in 40 plus States and, you know, multiple countries and and uh, all the provinces, if you will, if you're thinking of North American context. So that is really mattering in a big way and I think as you see further projects FID and Matthews world and, and uh, both on GDs and, uh, GTM, you'll see these players come to the 4 either through a utility, but they want to know how are they ultimately getting that infrastructure served and can they rely on the energy? And, and that's what we provide.
No, that's really good to hear. Thank you very much.
Thank you.
You are. Our next question comes from the line of Teresa Chen from Barclays; your line is open.
Thank you for squeezing me in. Um, I just had a follow-up on the Ohio utility um, related to the impairment of this asset. Um, can you talk about what led to this? Considering that it was only recently acquired. And when we take this into account, as well as the uh, rate case decision that's currently being appealed, uh, longer term. This has changed your view on the trajectory of growth or on the margin change. The amount of capex um you would allocate between the utilities.
Oh, we got things started in. Pat cannot if he wants to Teresa, but the impairment, the primary impairment associated, with the Ohio utility it was to do with the treatment of the pension asset, which is quite a significant asset, uh, that was in there and and they were determined those pension assets were determined to be excluded from the calculation of rate base. The position we had actually put forward was to have them excluded from rate base. So that's not inconsistent with what we were looking for. We're just, uh, asking for a rehearing with regard to how they treated the accumulated deferred income tax on that pinch and where they, they put that in for the purposes of calculating Revenue reduction. So it's something we expected was going to happen. Uh, and that's, that's the majority of the the write off of the regulatory asset that we recorded and then there's a small amount associated with the annual incentive plan. And in that case, again, uh, we're, we're, uh, applying for a rehearing on that point and primarily with
Regard to the Retro. What we believe is retroactive rate making, where they've gone and this allowed it from anything, uh, that was put in attributable to that piece previously. But Pat, I don't know if there's anything else you'd like to add. I think you covered the uh kind of the Genesis of the write-off. Well, I think if your second question on, I'll just change our Capital allocation so, I mean, I think great hit it, uh, quite quite clearly that there's still a very good return almost 10%. We actually go a higher Equity thickness coming through the, we have the maintenance of the, uh,
Of the capital Riders, which are important in this asset. Uh, and so I think it's still a very, uh, positive framework to to work with for regulatory perspective. So uh, I think you could see us uh, go back for hearings a little more often then they would have done historically. As you know, there was this first Hearing in like 15 years. So I think you'll see some of that from a, from a rate strategy perspective. But uh, at the end of the day, uh, not at all unexpected, uh, uh, as a result of the rate case. Yeah. And I, I wouldn't, I only as anything with to do with the fundamentals of the business, your comment about a write up. So soon, after the acquisition like frankly, we think they've aired in law. In fact, they may be where they're going violates, actually some federal pension laws, but we'll take, we'll take that up with them. And if we're right, you're going to see this reverse down the road. So, uh, that's the way we kind of think about it. Yeah, the only thing I how it's on is a lot of those pension assets actually went with Dominion. So remember this is a case that was followed by Dominion in 2023.
Dominion continues to carry the obligation with regard to the pensions with for all the retired employees and because it had been 15 years that had really grown to quite a large piece of stuff with Dominion. We've just got the current employees going forward. So, all of that needs to be updated with the regulator and our plan is to file for another rate case here, likely by the end of this year, just to bring all those numbers. These are these numbers date back to 23. The date that back to pre-acquisition. So there's a lot that needs to be updated with the regulator too.
Thank you for the detailed answer and we look forward to the next chapters of this development.
Thanks.
Your final question comes from the line of Patrick Kenny from National Bank Financial. Your line is open.
Thank you, good morning. Um, just back on the preference here of, of customers, you know, continuing to push more and more barrels to the Gulf Coast. Just wondering if we can, uh, quick update on Ingleside.
You know, potentially sanctioning some of the uh optimization and and Doc expansion opportunities.
Hey Pat, it's Colin. Uh, uh, up until the right, I think is the summation to your answer. So we steadily are growing.
Uh volumes uh, through the terminal. Uh, as we've talked to you about its advantaged. Um,
Uh, we've got some more storage coming online. Um,
I would also uh yeah point you to some longer term kind of bigger upsides and and adding docks and stuff. We've done all the dredging. As you know, historically
And uh continue to add, add barrels to it. We're adding a uh a fungible service um which is incremental to the historic business model, which is being just, you know, dedicated term storage. So that's incremental as well. So I think all the the whole menu of services and uh a variety of of smaller, you know, optimizations and tweaks. And then later on as as the premium basing grows, we can we can add docs, I can confirm that, uh, we have connected, the, the adjacent uh, Flint dock over and uh are able to load there too and optimize Windows to get, you know, the smaller vessels there and the bigger vessels blcc is at the Legacy dock. So plan is, uh, on track.
Uh, and more to come.
It's interesting that we often focus on domestic demand and things like that, but Global oil demand is really, really strong and, uh, obviously that's, uh, that's a, a great setup for Engle side on a go forward basis as well. Regardless, if you see some permanent weakness later in the year,
And maybe it's a quick follow-up there on your point. Greg, I know you've been previously looking at NGL export opportunities as well at Engel side, but...
I guess in light of
Uh Asian buyers, perhaps looking to diversify, their petrochemical supply um curious. If you might be looking to Pivot opportunistically at other sites, across North America, including you know, Canada's West Coast here, especially as LNG exports continue to ramp up over time.
Yeah, you know I I'd say the the strategy is still is to kind of copy paste. All the advantages from crude export at that terminal to other Commodities at that terminal so still NGL and potentially you know clean ammonia over time as well here.
so,
Um, that That Remains The Playbook. We got lots of land. Yeah you better move. It's you know it's supposed to do it in Canada. I think if we copy paste to a different location, we probably somewhere else along the Gulf Coast. And you've heard us ruminate about that from time to time. And uh, yeah, that that'll come to fruition over time a little further out though.
Okay. That's great. Appreciate it. Thank you.
And that concludes our question-and-answer session. I will now turn the call back over to Rebecca Morley for some final closing remarks.
Great. Thank you and we appreciate your ongoing interest in Umbridge, as always, our investor relations. Team is available following the call for any additional questions that you may have. Once again thanks and have a great day.
This concludes today's conference call. Thank you for your participation. You may now disconnect.