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 heritance Gas Distribution and storage and Matthew. Amin Renewable Power.
At this time, all participants are in a listen-only mode.
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.
We'll be prioritizing questions from the investment community. So, if you are a member of the media, please direct your inquiries to our Communications team who will be happy to respond.
As always our investor relations, team will be available following the call for any follow-up questions.
On to 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. 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 policymakers and regulators to ensure North American energy independence and security. I'm optimistic 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 core 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.
We set another record for second quarter, driven primarily by contributions from the acquired U.S. Gas, Utilities, and successful rate settlements in our gas transmission business.
Strong, first half of 2025, gives us confidence that we'll finish the year in the upper end of our ibaa 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 Eva 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 attract evaluations 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 BC, after 8 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 on 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.
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 and Bridge 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 and bridges, 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 US via our systems has not attracted tariffs.
Roughly 80% of our, EBA is generated by assets, with Revenue inflators or regulatory mechanisms for Recovery Rising costs, which helps to backs up our rateable and growing dividends and earnings.
On the tax policy front, the extension of bonus. Depreciation provides benefits to n 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. However, Enbridge's low-risk business model protected us from those dynamics, with virtually no exposure to commodity prices and over 98% of EBITDA generated by assets with regulated returns for long-term take-or-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.
A Gas Distribution. Franchise is the largest natural, gas utility business in North America and we deliver reliable natural gas 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 Umbridge 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.
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 1.5%.
We also continue to advance Mainline optimization Phase 1, our full path, fsp open season was, oversubscribed from the team, is now working towards FID. 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, like 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 $50 million 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 Pilot's 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. LG 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.
Lastly, 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 investment 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.
Progressing. The 815 megawatts Sequoia 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 will 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, great, 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 per share is comparable.
In our liquid segment, we saw strong volumes with the mainline transporting 3 million 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.
Our Whistler JV 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 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 are 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.
The acquisition of a 10% interest in the Matterhorn Express, strong mainline volumes, and the strength of the US/CAD exchange rate are all tailwinds to our full year guidance 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 can continue to be focused on disciplined Capital. Allocation, our balance sheet provides us with financial strength and flexibility and our debt to ibida is 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.
One 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 payouts.
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 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 dollars of annual investment capacity.
Our 30th consecutive annual dividend increase supported by our business model.
We've also secured high quality and sustainable growth. Fire are now 32 billion secured Capital program, adding visibility to our expected 5% growth, through the end of the decade.
We will continue to evaluate accretive tuck-ins 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.
good 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 it relates 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 uh a near-term or just uh, you know, kind of steady Cadence over time?
Well, Jeremy, maybe I'll start and then, uh, Cynthia can chime in too, and maybe even I know not on the gas side but maybe 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 about in Pennsylvania, and obviously, out of that team, a press release of a big player, using the Texas Eastern system to support Homer City, uh, in North Carolina and Mississippi. And Georgia, we talked about on this call Utah. All of those were really starting to see, uh, things come in. I guess the point I would make their, is 2 elements here. There's 1 there, the utility element, which I would say is most of where we're picking up the opportunities, and you heard us talk about line, 31, just a few minutes ago, as well as SES, very much, utility based, but there's a nice smattering of behind the meter type.
Stuff, which is what Homer City would 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,
Just on the gas transmission, side 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 cope, 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 a 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 Jeremy
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—ever with wood 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 amount nearer to the projects in service with our partner, which owns 70% of the project. As you probably recall, they do take capital cost risk, but they get the benefits of selling the LG commodity. So I think it's a really good balance of interests there. Um, and I guess my point being, while we're always really focused on the capital being 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 mult.
Your projects and I really think that combined focus is serving us well on this project. Now, with respect to capital cost increases, I wouldn't say it's just one thing, right? We've had some changes in building codes, permitting delays—it's not a new issue for us. Jurisdictions, um, we're adding additional flotilla, so that's where we...
How's our, uh, employees? So, that'll create room for another, uh, 900 approximately folks as we get into the heavy builds and then some site conditions. So all those are really added up to this side. 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 Cattleya 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.
Yeah. Well I think as uh you saw us announced today and you've really seen us been going hard at this since January um and last fall our customers at this point in time. Really want to go south. Right. That's the premium Market um, which we're able to deliver to both p 2 and p 3. I think the Gulf Coast, uh, and so Colin, and his team have really put forward a number of really great incremental 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 is done and as our customer prod,
Ction grows uh that's when an opportunity could be created to go to the West Coast um and 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 isn't not 1 of they're being a proponent. The issue is 1 of government policy setting, the conditions for that get investment to our, that's be honest. The government has not done that yet and it's not clear the intent to, at least from our perspective, in particular are still in admissions cap in place for our customers, which really stifles their ability to grow oil production and then secondly, the West Coast tanker band remains in place that frankly as long as that's there, it would make building a pipeline to the West Coast being a pipeline to Nowhere. Um so and not 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, 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 and the US franchises and obviously Ohio in particular
Yeah, Michelle's here, I live here, go at that obviously. Regulatory expertise is something we're very focused on sure. Uh, so obviously we were disappointed in the Ohio rate case, but but 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 are 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 met was mentioned in an earlier question, lots of lots of data centers, lots of his generation there. So it's a good, uh, it's a good utility, but we are in rate cases in all 4 of our utilities and major utilities. As we mentioned, we're coming to the tail end in 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 and the Ohio rate case. So, we're very confident with North Carolina and Utah. Good relationships, their transparent work. So
Things are good. Yeah, so, you know, obviously if you think back to the acquisition which, you know, we haven't even had all these closed for a year yet. Um, that'll come up in September, uh, very consistent results and expectations, you know, as you know, Rob, we're quite conservative in the way we look at things and I would say, uh, we've probably been uh, underestimated underestimated. The growth opportunity there, uh right across all the utilities and the regulatory uh, filings and rate cases that standard. What we do across all our businesses and, you know, sometimes you get what you want, sometimes you don't, but it it uh, the business continues to drive forward
Excellent, thank you.
Your next question comes from the line of Aaron. Mcneel from TD Cowen. Your line is open.
Hey morning, all thanks for taking my questions. Uh, Greg you mentioned and you're prepared remarks, but can you speak to the Cowboy solar and 7 Stars project? 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 in 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 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
Projects that we have in the backlog for 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 at that time. But do you want to speak specifically to those 2 projects matters? Yeah sure. Thanks. Uh thanks just to add 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 will 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
Are 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 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 taken 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 capacity; it's more about investment quality and return relative to what is a plethora of opportunities across the entire business.
Thanks that that's a lot of great detail. 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 gas supply 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 expansion of Texas Eastern, but until the customer actually has to determine exactly how it wants to deal with that. Um, all I can tell you is we will get our fair share.
Yeah, thanks.
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 of underutilized receipts potential in that Marcelo Supply region.
And I think about this is winning by a lot of singles and maybe a double.
I think as you would well understand say a gigawatt plant takes a 150 a day.
Gas plant, that's not a muscle pipeline right. So you can see that with line 31, you can see that with with the with.
With the SaaS development.
Lot of incremental pieces built very economically.
Add up to a really nice investments.
I think people looking for the Big Splash billion dollar pipeline projects I think we're going to be few and far between for individual data centers. So I think you've got to keep watching these incremental pieces and frankly as investors I think you should.
So I'll do $100 million expansions.
That happened quickly relatively permit life, probably not cross state.
Even though it may involve interstate pipe.
All day long versus a big Greenfield new $1 billion pipe.
That's helpful. Thanks, everyone I'll turn it back.
Thanks.
Okay.
Your next question comes from the line of <unk> Satish from Wells Fargo. Your line is open.
Thanks, Good morning, maybe I'll, just piggyback off of that question. So.
You talked about obviously, a lot of power generation opportunity and things but.
So far the.
The announcements on the on the gas pipeline side.
The pace of announcements has been a bit slower compared to peers.
I mean, you talked about having excess capacity. So maybe that's one of the reasons why your projects are or may be smaller in size than some of the larger builds that are capex projects that we're seeing but maybe you could just kind of walk us through that.
The differences here on <unk>.
Texas Eastern versus.
Some of your other competitors and is it is it because you have excess capacity or are you waiting for the right returns or their dependencies tied to associated utilities, just trying to get some more color there.
Well I think it's been about that I'm not sure I would agree with your view that people have actually made more announcements on the other side I think theres people talk about stuff, but lets go down and illustrates you've got a gigawatt and a half billion dollar projects.
For TVA.
That's going ahead, and North Carolina in GBS, Theres, one four gigawatts $600 million plus.
Plus for Duke facility in Utah, a couple of hundred megawatts plus.
In Ontario, we are still pursuing some of those opportunities and then the stuff that we just announced today. So I'm not sure I'm not sure it'd be on the same page there I think some people thats, maybe all they have and as you know we've got opportunities for us multiple businesses on that front and I mean, I don't know, perhaps you could you have that but I'm not aware of any.
He else, having signed up Amazon, having signed up matter, having signed up AT&T on the renewable side. So I think it's in all of the above opportunity for us.
And I'm, a big believer that much of this is actually going to be done with utilities and the power utilities and you will note that in neither of the case in Mississippi or the SESH project that we announced which utilities those are too and thats, because theyre not really keen on actually indicating exactly what we're doing on the.
<unk> centre side, So I think I think youll.
You will find I think if you crawl through it and maybe we can do a better job of communicating that to you.
Lots of pieces that were knocking off and I think we're actually ahead of what we said in terms of announcements.
From.
The Investor day, when we talked about the <unk>.
18 month look forward of which we're now what four months since that.
Since that timeframe and more to come.
Yes, no I mean, just to kind of clarify I think you're definitely getting a lot of traction certainly on the renewable side and on the utility side.
So I'm not saying there is an exposure to the theme, but it was more just on the gas pipeline side, because you have a premier footprint there.
And you are kind of in the heart of this especially with Homer City building.
Would have thought there would be more but like you mentioned maybe it's.
It's TBD and we'll definitely stay tuned maybe just switching gears for my other question I mean, you mentioned <unk>.
And the bonus DNA provisions there that could benefit near term growth I guess just from a tax perspective.
Does that lower your cash tax burden in the near term.
When do you now expect to be a meaningful cash taxpayer.
Yes, hi.
Thanks for the question, Yes, I think generally it's a very positive outcome from the various tax.
<unk> studies that extension of bonus depreciation, which affects a big portion of our overall business I think the way to think about it is this further.
You know.
<unk> help so the fact that we will now be able to grow per share kind of in line with our EBIT guidance. The last few years, there's been a bit of a differential because of the growing cash tax, but this will help to offset that and gives us more and more confidence and clarity into that growth into the back part of the decade. So yes, we are.
That's about it and we think that can help to grow our cash flows for our shareholders.
Thank you.
Your next question comes from the line of Rob Hope from Scotiabank. Your line is open.
Good morning, everyone.
On the Borgata Center theme can you maybe add a little bit of commentary on how you're thinking about the contract contractual frameworks and contractual protections.
Guarding who the counterparty is and how you would potentially alter it if at all.
The utility customer already behind the fence customer.
Yes, obviously from a credit perspective other than and you see this on the renewable side, the googles and meadows and AT&T is there obviously super credits.
And Thats why were actually on balance seeing 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 10, 15 20 year contracts.
Take or pay if it is with a small <unk>.
Data center Hyperscale or player I think when we look at that really carefully.
And some of those folks would have to probably provide lcs et cetera, but.
That's why as I said I think as this continues to move forward rapidly.
I'm, a strong believer youre going to continue to see those utility players there because this isn't as easy as what people think.
And the commitment to sign up for a 10 or 15 or 20 year pipeline contract or renewable contract says the big players. So we will be there so.
From a analytical perspective with all the data center opportunities that they are the winners here just like on the pipeline side will be the big players with scale and Thats the customers that will largely largely serve.
And when I think about it.
Where the smaller players may have a better opportunity is frankly from our gas utilities, where there is a much larger scope of customers, we have a requirement to serve.
But even in some of those cases, depending what happens they would have to provide AIDS to construct.
Which as you know is an element so.
I think we've got it covered from the big players and on the utility relatively small behind the meter stuffs.
You would see that as a typical cost of service structure inside of utility Super safe for the Investor and very fair for the customer.
Alright I appreciate it thank you.
Yes exactly.
And then switching gears here just regarding the $9 billion to $10 billion of investment capacity per year.
Like you are getting towards that range for 'twenty six 'twenty seven based off of the recent wins how are you thinking about the cadence of when new or the cadence of project announcements and layering further capital in the next couple of years or is now the focus turning towards the kind of we'll call it beyond 2007 timeframe.
Yes, I can take that Rob I think it's fair to say that in 'twenty five 'twenty six we've been filling up the opportunities set pretty well over the last six to 12 months and I think that should give people more and more clarity into that kind of 27% 28 growth rate.
And I think it's also fair to say that you look at the projects that we announced today with in 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.
Take some of the smaller bite size things a quick turn capital as we go here, but I think you are.
Comment is probably right in that 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.
High return projects into the back part so from a capacity perspective as I think I said in my remarks, I like the way its spread out across our businesses, but also spread out across the rest of the decade here. So feeling very good as we get more transparency into that.
I'd say our business development team is very much focused on the back half of a decade and half.
<unk> been right, so thats about expanding that.
The growth switch.
We've got a lot of confidence in.
That post 2006 period, and then as Pat says most of what we talked about today will be very little capital.
In the next 12 months and the steps where does have capital like on the GDS side of things.
In some cases youll start to earn out of it before it even goes into service, but otherwise it will actually generate EBITDA.
Within say the 12 months, which of course, then creates capacity right.
Thank you.
Thanks.
Your next question comes from the line of Ben Pham from BMO. Your line is open.
Hi, Thanks, good morning.
Just wondering thoughts here.
Backlog in and returns and Jose.
Look at some of these projects you sanction the last couple of years, you mentioned, what fiber low double digit returns.
<unk>, 10% returns.
When you look at that and I look at the new projects you are announcing today much better returns.
Is it as a trend then.
Bridge copper allocation increasingly shifting more to these higher return projects that.
You talked with the singles high returns.
As we look out the next 12 months that average return is going to start moving higher and that secured backlog.
Yes, absolutely. Thank you put a finger on the great tension inside the company lots of opportunities, but only those those projects and those jurisdictions that provide better returns I E. Lower build multiples are going to get serviced right. So I would tell you right now that is a challenge to do.
More in a place like British Columbia, or even Ontario relative to Ohio's or say, Texas. So we want to keep our builds.
And that six to eight times and then and then Colin has tons of stuff that is even on the bottom end if not below that six to eight times. So very competitive and then of course Michel has higher multiples, but quicker cycle.
And so yes it is.
You should see and this is very much our focus.
<unk> and its a big bulk to move or a big denominator to move increase in return on capital.
Employed as we move up the chain in value added investments you hit it right on it's actually a really nice environment as capital allocators.
To be able to pick and choose the best returns. So we can keep those steady.
And stay stable and growing.
Earnings that you all expect from us.
Okay got it.
Maybe switching to the storage side, yes, they can.
Expansion can you confirm is there more white space.
The 40 Bcf a day and then.
And what's the strategy on the U S storage assets is it more re contract or is there opportunity to expand as well.
Wilson since you want to speak to that sure.
40 Bcf at Aitken Creek is the most accessible there would be other opportunities, but it would be not as acceptable interest 40, yes.
Part of what we knew and the acquisition that it would be.
Is your stage steps to get through.
As it comes to other opportunities on the Gulf Coast. We continue to look at that we had some open season for storage expansions that we launched in May and we've gotten some really good interests. So we're looking at developing our salt cavern there along the us Gulf Coast of course, we expanded.
Hey.
Cabins for that just got into service in the year. We also as Greg noted are continuing to optimize the structure there, but we're looking at weather.
With the open season interests will be expanding more trades.
Yes.
There's a lot of obviously opportunities in that area and they continue.
Expansions and LNG growth just provide some really good opportunities that we're excited about right now sometimes I think it's under <unk>. So we've got 600 BS side of storage across North America don't forget Cynthia has got great elements here and the contracting has moved out a little longer and higher.
All of that stuff sort of more three to five year type contracts.
But at a higher rates than what we've seen for say the last five years, that's kind of changed in the last 18 months and don't forget in GBS, we have 100 or so.
CF to storage that is.
Unregulated.
As all of the needs that come in on the power projects were talking about LNG.
So much on data center, but LNG et cetera.
That makes that storage all the more valuable right. So.
Good time for storage on the Gulf Coast in the Great Lakes regions, and obviously in Western Canada, where <unk> really is the only player in.
NBC is LNG comes off.
Okay. Thanks for your update.
Thanks.
Your next.
Next question comes from the line of Sam Burwell from Jefferies. Your line is open.
Hey, good morning, guys. Thanks for squeezing me in.
You 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 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.
<unk> is similar to what you said you would need to underwrite.
Larger pipe on the crude side.
Well I'll, let Cindy will speak to it but I think theres no debt seems like gas pipelines in western Canada across Canada seemed to have a not that easy, but an easier road didn't say liquids lines.
And as you know I think we've set ourselves up to do that the west coast system is fabulous.
Indigenous participation in the West Coast system is Fabulous set up no guarantee that that gets you concerned that's very helpful and aligning interests, but Cynthia yeah, we still have the Pacific trails pipeline project, our <unk> project.
Sir you know onto the West coast.
So there is future opportunities there will continue to maintain that its fully certified of course that would require a new large scale LNG 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 and our overall capital allocation, but it is something of course with our west coast system and that knowledge and experience and now with our recent move to improve our indigenous.
Relationships in D. C. I think we're well positioned to support that yes, I think the situation is it's going to any greenfield pipe in Canada is.
We're going to have to have better returns on the west coast system.
Because 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 with a with a greenfield project. So that that would be the determining factor in as we've talked about throughout the call we're not exactly opportunity pour.
Okay understood. Thanks, very much guys.
Thanks.
Your next question comes from the line of Manav Gupta from UBS. Your line is open.
Good morning, guys. Congrats on a very strong quarter and I think it's not I appreciate it and it sounds like Youll, probably indicated that youre coming in towards the top end of the guidance. So given your track record.
Can you think you might need it but we keep on estimates within that range.
My question to you is a little bit on the southern Illinois connector open season looks like a very exciting project can you talk a little bit more about this project and how the what the.
Portfolio for this project is.
I think the guy that runs the liquids businesses here usually gets the first question so I'm glad against private the last one.
Good morning Manav.
We're excited about building out the plumbing in North America here to serve.
Some long term pretty sticky demand and so.
Maybe unlike MLR one.
Sort of a connector is more of a re contracting.
So it's kind of.
It's not new egress over the.
Canadian U S border, but think of it as.
Long hauling.
Existing.
Barrels on the system even further.
To search.
So Louisiana refineries.
Adding to that.
75% of refinery served on the continent. So just adds another market.
The network.
And in an efficient way.
Right using using existing pipes and in this case.
Partnering with existing JV partner, so process on that one is the open season.
We'll go into August and we.
We will look to.
Roll some contracts on the spearhead pipeline and add further long term sticky.
Paths to the mainline.
So it's.
Exciting.
And we'll be looking for more of those type of projects here to complement the low multiple.
Buildup egress ads for customers.
Perfect.
So I'll turn it over thank you so much.
Thank you.
Your next question comes from the line of Keith Stanley from Wolfe Research. Your line is open.
Hi, good morning.
Curious what the remaining gating items are on the mainline expansion from this point and are you expecting based on discussions that returns on this are going to be carved out separately from the Cts.
Yes.
So as I mentioned in the prepared remarks.
We are looking at and tracking for.
Phil.
Later this year.
The.
The primary gating item.
As being achieved which is the.
Open season on the southern part of the past Flanagan, South and that was oversubscribed. So lots of interest in long term.
Demand to the U S Gulf Coast.
The gating item is.
Working.
With the traditional.
Counterparties within cap, if you like or industry.
On.
On basic kind of rolling in the.
Mainline capital into the rate base.
There is many precedents for that historically, we've expanded the mainline.
Countless times over the years anymore.
Confident will come to agreement with industry on that.
And so it would fit within.
Cts are in rate base, or MTS and rate base and when we roll.
<unk>.
Yes.
Subsequent.
The tranche of mainline agreements beyond is expiring in 2028.
Of that capital would be duly considered in the rate base of the mainline going forward. So we earn oven on the <unk>.
Capital in the mainline as well so.
Two parts to that project kind of the mainline and then.
Flanagan, South and Seaway to the Gulf.
We've got many precedents for doing this historically so there is some.
A little bit of gating there but.
Well sure.
Pass historically to do such.
Okay. Thanks, Thanks for that second question.
Theres a few different project proposals now to bring Permian gas to other markets away from the Gulf Coast.
So I am curious what you see as the next steps for your JV with Whitewater can you extend the value chain into Louisiana do you look more at storage what other opportunities do you see in that JV with whitewater. The next few years.
Yes.
Thanks Keith.
We're really pleased with how our investment and our joint venture with Whitewater has gone there has been obviously some upside.
One we continue to have an expansion project.
With tuberous, we just upsized that.
We still see a lot of gas that would slow or want to flow to serve.
The LNG markets and so we think that there is further expansion opportunities there I know, Mike why don't you just announced.
With a similar project yesterday, let's say that's five pellet.
<unk> seen a lot of interest in that area.
Traverse pipeline as was noted provides more interconnectivity.
To allow that bidirectional flow between Agua Dolce and Katy hub, so that does create that tie it does tie what we loved about that those assets as it does tie to our existing footprint that header system that we have with <unk> and of course trade splash of storage. So yes, we would look at all opportunities.
<unk> can expand to both volumes and we continue to see a lot of opportunities on a go forward basis, and we could do something on our own we get so it's not just whitewater, it's obviously and it will be customer driven.
We think we have a better mouse trap than maybe the JV.
As Cynthia says we've been really pleased with the way that's operated together so yes, I think anything's on the table there and as you know as <unk> go up in the region.
The demand for that gas continues to rise.
As Cynthia just said I think it's you witnessed that and go into from a b and three quarters to two and a quarter on the traverse pipelines. So the opportunity is there and we'll either use the JV are we'll figure out something on our own.
Thank you.
Your next question comes from the line of Maurice Choy from RBC capital markets. Your line is open.
Thanks, and good morning, everyone I'll just stick with one question, but it's more of a question about relationships of customers rather than delivery.
Delivering individual assets.
We continue to hear more record spending on AI.
How broad of a cooperation discussion did you have with meta.
Tim to supporting their needs beyond clear Fork, and maybe even AT&T and Amazon since you touched on them earlier.
Nathan that Enbridge, certainly has the assets expertise and relationships across all energy forms.
Okay.
Maybe I'll start and Matt you can chime in here.
That's actually a really great question because.
Okay.
I'd say early days, you know youre almost dealing with supply chain people, where they see it as a source of something they need our E power or the cases gas to run their operation I think as time goes off or moving up the chain and who we're dealing with that these corporations because of the real.
T J nature of energy, which we all know, but it's not that's not something maybe the tech world's 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 are trying to do the scalability is has caused it to move up as opposed to just be a supply chain issue.
Yes, I totally agree.
Thanks for the question Thats exactly how we think of it.
We're in the early innings of a major trend in energy that we can capitalize on across several of our business units.
<unk> can be a little bit of a nexus for that initially.
If you saw the quote from meta.
Our clear Fork announcements was that they were thrilled to be working with Enbridge and we're very pleased to be working with them and it just goes to show that.
They are signaling they want to definitely do more and there is lots of conversations with these types of customers that are ongoing and so we see those being more.
The types of customers, we can do business with across all of our platforms.
Yes.
Size matters right deal aggression.
Ask them that quantity is a quality all of its own people want to work with big players. So meta doesn't work don't want to work with those small cap energy provider they want to work with a major.
Player in someone's who's in 40, plus states and.
Both countries and.
All the provinces. If you will if you think in the North American context, so that is really mattering in a big way and I think as you see further projects at <unk> and.
And Matthews World.
Both on GBS and GTS Youll see these players come to the fore either through a utility but they want to know how are they ultimately getting that infrastructure serve and can they rely on the energy and thats what we provide.
No that's very good thank you very much.
Thank you.
Your next question comes from the line of Theresa Chen from Barclays. Your line is open.
Thank you for squeezing me in I, just had a follow up on the Ohio utility.
Related to the impairment of this asset and can.
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 then.
Rate case decision Thats currently being appealed.
Longer term does this change your view on the trajectory of growth or on the margin changed amount of Capex.
Would allocate between the utilities.
I'll get started and Pat can add if he wants to make sure you said that.
The impairment the primary impairment associated with the Ohio utility it was to do with the treatment of the pension asset which was quite a significant asset that was in there and they were determined that pension assets are 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.
Asking for rehearing with regard to how they treated the accumulated deferred income tax on that.
They put that in for the purposes of calculating revenue reduction. So it's something we expected was going to happen.
And that's the majority of the write off of the regulatory asset that we recorded and then there's a smaller amount associated with the annual incentive plan and in that case again.
Time for a rehearing on that point and primarily with regard to the what we believe is retroactive ratemaking, where they've gone and this allowed us from anything that we've put in attributable to that piece previously, but Todd I don't know if theres anything else you'd like to add I think you've covered the.
The Genesis of the write offs well I think your second question on but just change our capital allocation.
I think <unk> hit it quite good quite clearly.
A very good return almost 10%, we actually got a higher equity thickness coming through the.
Maintenance of the of the capital riders, which are important in this asset.
So I think it's still a very positive framework to work with from a regulatory perspective, so I.
I think you could see US go back for hearings little more often than they would have done historically as you know there was this first airing in my 15 years. So I think you'll see some of that from a from a rate strategy perspective, but.
At the end of the day not at all unexpected.
As a result of the rate case, yes.
I don't think it has anything to do with the fundamentals of the business your comment about a write off so soon after the acquisition like frankly, we think they've aired in law in fact, they maybe where they're goin' violates actually some federal pension laws, but we'll take we'll take that up with them and if we're right youre going to see this reverse down the road so.
That's the way, we kind of think about it yes.
Hasan is a lot of those pension assets actually went with Dominion. So remember this is a rate case that was filed by Dominion in 2023.
<unk> continues to carry the obligation with regard to the pension for all the retired employees and because it had been 15 years that are really growing quite a large piece, that's with Dominion and 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 of those numbers. These are these numbers stay back to 'twenty three the data active pre acquisition. So theres a lot that needs to be updated with the regulator to.
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.
Just back on the preference here of customers.
Continuing to push more and more barrels to the Gulf Coast. Just wondering if we get a quick update on ingleside.
Throughput has been trending on a year over year basis.
Where things are at with respect to.
Potentially sanctioning some of the optimization and dock expansion opportunities.
Yeah.
Hey, Pat it's column.
Up until the right I think is the estimation to your answers. So we steadily are growing.
Volumes.
The terminal.
As we've talked to you about its advantaged.
We've got some more storage coming online.
I would also.
Yes, I point, you to some longer term kind of bigger upsides, and adding docs and stuff. We've done all the dredging as you know historically.
And continue to add add barrels to it we're adding a.
Fungible service.
Which is incremental to the historic business model, which has been just that.
Dedicated term stores, so thats incremental as well so I think all the whole menu of services.
A variety of smaller optimizations and tweaks and then later on as the Permian Basin grows we can we can add docks I can confirm that we have connected the adjacent.
Flint dock over and are able to.
Load there to an optimized windows to get them on the smaller vessels, there and the bigger vessels Vlccs at legacy dog. So plan is on track.
And more to come.
It's interesting.
Often focus on domestic demand and things like that but global oil demand is really really strong and obviously that's a.
That's a great setup for Ngos side on a go forward basis as well, regardless, if youll see some Permian weakness later in the year.
And maybe as a quick follow up there on your point, Greg I know you've been previously looking at NGL export opportunities as well at Ingalls side, but.
I guess in light of.
Asian buyers, perhaps looking to diversify their petrochemical supply.
Im curious if you might be looking to pivot opportunistically.
Other sites across North America, including Canada's West Coast here, especially as LNG exports continue to ramp up over time.
Yes, I would say.
This strategy is still as to kind of copy paste all the advantages from crude export at that terminal to other commodities at that terminal, so still NGL and essentially clean ammonia overtime as well here so.
That remains the playbook, we've got lots of land, yes, you better move as you know.
As opposed to doing it in Canada, if we.
Copy paste to a different location to be probably somewhere else along the Gulf coast and ensured us ruminate about that from time to time and.
Yes.
That will come to fruition over time, a little further out though.
Okay. That's great I appreciate it thank you.
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 Enbridge 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.
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