Enbridge Reports Strong Third Quarter 2024 Financial Results, Executes on Business Priorities, and Reaffirms Financial Guidance and Outlook
Highlights
(All financial figures are unaudited and in Canadian dollars unless otherwise noted. * identifies non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices.)
- Third quarter GAAP earnings of
$1.3 billion or$0.59 per common share, compared with GAAP earnings of$0.5 billion or$0.26 per common share in 2023 - Adjusted earnings* of
$1.2 billion or$0.55 per common share*, compared with$1.3 billion or$0.62 per common share in 2023 - Adjusted earnings before interest, income taxes and depreciation and amortization (EBITDA)* of
$4.2 billion , an increase of 8%, compared with$3.9 billion in 2023 - Cash provided by operating activities of
$3.0 billion , compared with$3.1 billion in 2023 - Distributable cash flow (DCF)* of
$2.6 billion , in line with 2023 - Reaffirmed 2024 full year financial guidance; the Company expects to finish 2024 near the top end of the EBITDA range of
$17.7 billion to$18.3 billion , and around the midpoint for DCF per share - Closed the acquisition of
Public Service Company of North Carolina, Incorporated (PSNC) from Dominion Energy, Inc. onSeptember 30, 2024 for a purchase price of approximatelyUS$3.2 billion (includingUS$1.3 billion of assumed debt) - Closed the previously announced acquisition of additional docks and land adjacent to the Enbridge Ingleside Energy Center (EIEC) for
~US$0.2 billion - Sanctioned the Canyon System Pipelines, a
~US$0.7 billion project which will deliver crude oil and natural gas fromBP Exploration & Production Company's (bp) recently sanctioned Kaskida development in theGulf of Mexico - Acquired a 15% interest in the
Delaware Basin Residue (DBR) pipeline system inWest Texas fromI Squared Capital , extending the Permian strategy and customer service offering - Sanctioned the 815 MW Sequoia Solar project in
Texas , aUS$1.1 billion development substantially underpinned by long-term power purchase agreements with AT&T andToyota - Announced participation in the 177 MW third phase of the Fox Squirrel Solar project following completion of the second phase in
August 2024
CEO COMMENT
"This quarter, we concluded the successful acquisition of the three
"Across the business, we saw strong utilization of our assets which drove another solid quarter of financial results, positioning us to achieve full-year guidance for the 19th year in a row. We expect to be near the top of our 2024 EBITDA range, and close to the mid-point of our original DCF per share guidance range. The macro-outlook for energy infrastructure demand and the value of incumbency has never been higher.
"We have positioned
"In Liquids, demand for the Mainline remains strong and our volumes for 2024 are expected to exceed 3 million barrels per day. Growth in the
"In Gas Transmission, we sanctioned the construction of two new pipeline systems to support bp's Kaskida development in the
"In Gas Distribution, we now operate the largest natural gas utility in
"In
"Looking forward, our industry-leading footprint and world-class execution puts us in a great position to benefit from increasing demand and serve new and growing customer bases. We remain committed to disciplined investment, maintaining a strong balance sheet and growing our dividend. Financial discipline combined with our low-risk business model and visible growth backlog are expected to drive strong shareholder returns in all market cycles and position
FINANCIAL RESULTS SUMMARY
Financial results for the three and nine months ended
|
Three months ended |
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars, except per share amounts; number of shares in millions) |
|
|
|
|
|
GAAP Earnings attributable to common shareholders |
1,293 |
532 |
|
4,560 |
4,113 |
GAAP Earnings per common share |
0.59 |
0.26 |
|
2.12 |
2.02 |
Cash provided by operating activities |
2,973 |
3,084 |
|
8,938 |
10,389 |
Adjusted EBITDA1 |
4,201 |
3,871 |
|
13,490 |
12,347 |
Adjusted Earnings1 |
1,194 |
1,274 |
|
4,397 |
4,380 |
Adjusted Earnings per common share1 |
0.55 |
0.62 |
|
2.05 |
2.15 |
Distributable Cash Flow1 |
2,596 |
2,573 |
|
8,917 |
8,535 |
Weighted average common shares outstanding |
2,177 |
2,048 |
|
2,147 |
2,033 |
1 |
Non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices. |
GAAP earnings attributable to common shareholders for the third quarter of 2024 increased by
- a non-cash, net unrealized derivative fair value gain of
$112 million ($92 million after-tax) in 2024, compared with a net unrealized loss of$782 million ($591 million after-tax) in 2023, reflecting changes in the mark-to-market value of derivative financial instruments used to manage foreign exchange, interest rate and commodity price risks; - the absence in 2024 of a provision adjustment of
$124 million ($95 million after-tax) related to a litigation matter; and - operating performance factors discussed below.
The period-over-period comparability of GAAP earnings attributable to common shareholders is impacted by certain unusual, infrequent factors or other non-operating factors which are noted in the reconciliation schedule included in Appendix A of this news release. Refer to the Company's Management's Discussion & Analysis for the third quarter of 2024 filed in conjunction with the third quarter financial statements for a detailed discussion of GAAP financial results.
Adjusted EBITDA in the third quarter of 2024 increased by
Adjusted earnings in the third quarter of 2024 decreased by
DCF for the third quarter of 2024 increased by
Per share metrics in 2024, relative to 2023, are impacted by the significant prefunding activities for the Acquisitions, including the bought deal equity issuance in the third quarter of 2023 and at-the-market (ATM) issuances in the second quarter of 2024 as part of the financing plan for the Acquisitions.
Detailed financial information and analysis can be found below under Third Quarter 2024 Financial Results.
FINANCIAL OUTLOOK
The Company reaffirms its 2024 financial guidance for EBITDA and DCF, recast for the Acquisitions on
The company also reaffirms its 2023 to 2026 near-term growth outlook of 7-9% for adjusted EBITDA growth, 4-6% for adjusted earnings per share (EPS) growth and approximately 3% for DCF per share growth.
FINANCING UPDATE
On
The company exited the third quarter with a Debt-to-EBITDA metric of 4.9x.
SECURED GROWTH PROJECT EXECUTION UPDATE
During the quarter, the second phase of the Fox Squirrel Solar facility was placed into service, and it has been removed from the secured growth program. New to the backlog this quarter are the Canyon Systems Pipelines, the Sequoia Solar project and the third phase of Fox Squirrel.
The Company's secured growth backlog now sits at
BUSINESS UPDATES
Liquids Pipelines: Closed Acquisition of Land and Docks adjacent to EIEC
On
Gas Transmission:
Gas Transmission: Sanctioned Canyon System Pipelines
The project expands the Company's offshore business and is underpinned by long-term contracts which are consistent with
Gas Distribution and Storage: Closed Acquisition of
On
The closing of this acquisition marks the successful completion of the strategic acquisition of three
The second phase of the Fox Squirrel Solar project entered service in the third quarter and is now delivering 250MW of electricity into the PJM grid. With the successful completion of the second phase,
THIRD QUARTER 2024 FINANCIAL RESULTS
GAAP Segment EBITDA and Cash Flow from Operations
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars) |
|
|
|
|
|
Liquids Pipelines |
2,325 |
2,164 |
|
7,179 |
6,944 |
Gas Transmission |
1,146 |
973 |
|
4,506 |
3,220 |
Gas Distribution and Storage |
522 |
271 |
|
1,854 |
1,354 |
|
102 |
30 |
|
497 |
295 |
Eliminations and Other |
295 |
(602) |
|
(502) |
(10) |
EBITDA 1 |
4,390 |
2,836 |
|
13,534 |
11,803 |
|
|
|
|
|
|
Earnings attributable to common shareholders |
1,293 |
532 |
|
4,560 |
4,113 |
|
|
|
|
|
|
Cash provided by operating activities |
2,973 |
3,084 |
|
8,938 |
10,389 |
1 |
Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. |
For purposes of evaluating performance, the Company makes adjustments to GAAP reported earnings, segment EBITDA and cash flow provided by operating activities for unusual, infrequent or other non-operating factors, which allow Management and investors to more accurately compare the Company's performance across periods, normalizing for factors that are not indicative of underlying business performance. Tables incorporating these adjustments follow below. Schedules reconciling EBITDA, adjusted EBITDA, adjusted EBITDA by segment, adjusted earnings, adjusted earnings per share and DCF to their closest GAAP equivalent are provided in the Appendices to this news release.
Adjusted EBITDA By Segment
Adjusted EBITDA generated from U.S. dollar denominated businesses was translated to Canadian dollars at a higher average exchange rates (
Liquids Pipelines
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars) |
|
|
|
|
|
Mainline System |
1,348 |
1,306 |
|
4,003 |
4,096 |
Regional Oil Sands System |
223 |
246 |
|
693 |
726 |
|
364 |
374 |
|
1,227 |
1,140 |
Other Systems2 |
408 |
373 |
|
1,336 |
1,108 |
Adjusted EBITDA 3 |
2,343 |
2,299 |
|
7,259 |
7,070 |
|
|
|
|
|
|
Operating Data (average deliveries – thousands of bpd) |
|
|
|
|
|
Mainline System volume4 |
2,961 |
2,998 |
|
3,056 |
3,036 |
Canadian International Joint Tariff5 ($C) |
|
|
|
|
|
|
|
|
|
|
|
Line 3 Replacement Surcharge6 ($US) |
|
|
|
|
|
1 |
Consists of Flanagan South Pipeline, Seaway Pipeline, Gray Oak Pipeline, |
2 |
Other consists of Southern Lights Pipeline, Express-Platte System, Bakken System, and others. |
3 |
Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. |
4 |
Mainline System throughput volume represents Mainline System deliveries ex- |
5 |
Tariff tolls, per barrel, for heavy crude oil movements from |
6 |
Effective |
Liquids Pipelines adjusted EBITDA increased
- higher Mainline system tolls from annual escalators, effective
July 1, 2024 ; - higher contributions from Southern Lights Pipeline due primarily to the discontinuation of rate-regulated accounting as at
December 31, 2023 ; and - the favorable effect of translating
U.S. dollar earnings at a higher average exchange rate in 2024, as compared to 2023; partially offset by - lower Regional Oil Sands System volume throughput.
Gas Transmission
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars) |
|
|
|
|
|
|
946 |
864 |
|
2,786 |
2,600 |
Canadian Gas Transmission |
101 |
136 |
|
395 |
458 |
Other1 |
107 |
92 |
|
329 |
256 |
Adjusted EBITDA 2 |
1,154 |
1,092 |
|
3,510 |
3,314 |
1 |
Other consists of Tomorrow RNG, Gulf of Mexico Offshore assets, our investment in |
2 |
Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. |
Gas Transmission adjusted EBITDA increased
- favorable contracting and lower operating costs on our
U.S. Gas Transmission assets; - contributions from the acquisitions of Tomorrow RNG in the first quarter of 2024 and Whistler Parent JV in the second quarter of 2024; and
- the favorable effect of translating
U.S. dollar earnings at a higher average exchange rate in 2024, compared to the same period in 2023; partially offset by - the absence of contributions from Alliance Pipeline and
Aux Sable due to the sale of our interests in these investments inApril 2024 .
Gas Distribution and Storage
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars) |
|
|
|
|
|
Enbridge Gas Ontario1 |
297 |
265 |
|
1,370 |
1,322 |
|
217 |
— |
|
445 |
— |
Other |
8 |
6 |
|
39 |
32 |
Adjusted EBITDA 2 |
522 |
271 |
|
1,854 |
1,354 |
|
|
|
|
|
|
Operating Data |
|
|
|
|
|
Enbridge Gas Ontario |
|
|
|
|
|
Volumes (billions of cubic feet) |
372 |
405 |
|
1,414 |
1,598 |
Number of active customers3(millions) |
3.9 |
3.9 |
|
3.9 |
3.9 |
Heating degree days4 |
|
|
|
|
|
Actual |
10 |
61 |
|
1,619 |
2,266 |
Forecast based on normal weather5 |
4 |
88 |
|
1,950 |
2,495 |
1 |
|
2 |
Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. |
3 |
Number of active customers is the number of natural gas consuming customers at the end of the reported period. |
4 |
Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in |
5 |
Normal weather is the weather forecast by Enbridge Gas Ontario in its legacy rate zones, using the forecasting methodologies approved by the Ontario Energy Board. |
Enbridge Gas Ontario, Enbridge Gas Utah and PSNC adjusted EBITDA will typically follow a seasonal profile. It is generally highest in the first and fourth quarters of the year. Enbridge Gas Ontario, Enbridge Gas Utah and PSNC's seasonal profile reflects greater volumetric demand during the heating season and the magnitude of the seasonal EBITDA fluctuations will vary from year-to-year reflecting the impact of colder or warmer than normal weather on distribution volumes.
Adjusted EBITDA for the third quarter increased
- full-quarter contributions from the Enbridge Gas Ohio and Enbridge Gas Utah acquisitions in 2024; and
- higher distribution charges resulting from increases in rates and customer base, and higher demand in the contract market at Enbridge Gas Ontario.
The impact of weather for Enbridge Gas Ontario was negligible in the third quarters of 2024 and 2023.
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars) |
|
|
|
|
|
Adjusted EBITDA 1 |
86 |
119 |
|
512 |
390 |
1 |
Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. |
- the absence in 2024 of fees earned on certain wind and solar development contracts; partially offset by
- higher contributions from the Hohe See and Albatros Offshore Wind Facilities as a result of the
November 2023 acquisition of an additional 24.45% interest in these facilities.
Eliminations and Other
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars) |
|
|
|
|
|
Operating and administrative recoveries |
96 |
45 |
|
381 |
141 |
Realized foreign exchange hedge settlement (loss)/gain |
— |
45 |
|
(26) |
78 |
Adjusted EBITDA 1 |
96 |
90 |
|
355 |
219 |
1 |
Non-GAAP financial measure. Please refer to Non-GAAP Reconciliations Appendices. |
Operating and administrative recoveries captured in this segment reflect the cost of centrally delivered services (including depreciation of corporate assets) inclusive of amounts recovered from business units for the provision of those services.
Eliminations and Other adjusted EBITDA increased
- higher investment income on cash balances from pre-funding the Acquisitions;
- the timing of certain operating and administrative cost recoveries from the business units; partially offset by
- the absence of realized foreign exchange impacts from hedge settlements in 2024, compared to a gain in 2023.
Distributable Cash Flow
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars; number of shares in millions) |
|
|
|
|
|
Liquids Pipelines |
2,343 |
2,299 |
|
7,259 |
7,070 |
Gas Transmission |
1,154 |
1,092 |
|
3,510 |
3,314 |
Gas Distribution and Storage |
522 |
271 |
|
1,854 |
1,354 |
|
86 |
119 |
|
512 |
390 |
Eliminations and Other |
96 |
90 |
|
355 |
219 |
Adjusted EBITDA 1,3 |
4,201 |
3,871 |
|
13,490 |
12,347 |
Maintenance capital |
(290) |
(249) |
|
(748) |
(648) |
Interest expense1 |
(1,133) |
(912) |
|
(3,228) |
(2,759) |
Current income tax1 |
(176) |
(131) |
|
(597) |
(395) |
Distributions to noncontrolling interests1 |
(79) |
(87) |
|
(245) |
(282) |
Cash distributions in excess of equity earnings1 |
109 |
112 |
|
347 |
315 |
Preference share dividends1 |
(99) |
(89) |
|
(287) |
(260) |
Other receipts of cash not recognized in revenue2 |
53 |
50 |
|
89 |
173 |
Other non-cash adjustments |
10 |
8 |
|
96 |
44 |
DCF 3 |
2,596 |
2,573 |
|
8,917 |
8,535 |
Weighted average common shares outstanding4 |
2,177 |
2,048 |
|
2,147 |
2,033 |
1 |
Presented net of adjusting items. |
2 |
Consists of cash received, net of revenue recognized, for contracts under make-up rights and similar deferred revenue arrangements. |
3 |
Non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices. |
4 |
Includes equity pre-funding for the Acquisitions which closed in 2024. |
Third quarter 2024 DCF increased
- higher debt principal and rates, mainly attributable to the acquisition of Enbridge Gas Ohio and Enbridge Gas Utah resulting in higher interest expense;
- higher
U.S. Corporate Alternative Minimum taxes; and - higher maintenance capital from the acquisitions of Enbridge Gas Ohio and Enbridge Gas Utah.
Weighted average common shares increased due to the bought deal equity issuance in the third quarter of 2023 and ATM equity issuances in the second quarter of 2024 as part of the funding for the Acquisitions.
Adjusted Earnings
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars, except per share amounts) |
|
|
|
|
|
Adjusted EBITDA1,2 |
4,201 |
3,871 |
|
13,490 |
12,347 |
Depreciation and amortization |
(1,368) |
(1,200) |
|
(3,919) |
(3,554) |
Interest expense2 |
(1,150) |
(900) |
|
(3,261) |
(2,743) |
Income taxes2 |
(363) |
(363) |
|
(1,490) |
(1,252) |
Noncontrolling interests2 |
(27) |
(45) |
|
(136) |
(158) |
Preference share dividends |
(99) |
(89) |
|
(287) |
(260) |
Adjusted earnings 1 |
1,194 |
1,274 |
|
4,397 |
4,380 |
Adjusted earnings per common share 1 |
0.55 |
0.62 |
|
2.05 |
2.15 |
1 |
Non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices. |
2 |
Presented net of adjusting items. |
Adjusted earnings decreased
- higher debt principal and rates, mainly attributable to the acquisition of Enbridge Gas Ohio and Enbridge Gas Utah resulting in higher interest expense;
- higher depreciation from assets acquired or placed into service since the third quarter of 2023; partially offset by
- higher adjusted EBITDA driven by operational factors discussed above.
Per share metrics were negatively impacted by the bought deal equity issuance in the third quarter of 2023 and ATM issuances in the second quarter of 2024, as part of the funding for the Acquisitions.
CONFERENCE CALL
The conference call format will include prepared remarks from the executive team followed by a question and answer session for the analyst and investor community only.
DIVIDEND DECLARATION
On
|
Dividend per share |
(Canadian dollars unless otherwise stated) |
|
Common Shares |
|
Preference Shares, Series A |
|
Preference Shares, Series B |
|
Preference Shares, Series D |
|
Preference Shares, Series F |
|
Preference Shares, Series G1 |
|
Preference Shares, Series H |
|
Preference Shares, Series I2 |
|
Preference Shares, Series L |
|
Preference Shares, Series N |
|
Preference Shares, Series P |
|
Preference Shares, Series R |
|
Preference Shares, Series 1 |
|
Preference Shares, Series 33 |
|
Preference Shares, Series 44 |
|
Preference Shares, Series 5 |
|
Preference Shares, Series 7 |
|
Preference Shares, Series 9 |
|
Preference Shares, Series 11 |
|
Preference Shares, Series 13 |
|
Preference Shares, Series 15 |
|
Preference Shares, Series 19 |
|
1 |
The quarterly dividend per share paid on Preference Shares, Series G was decreased to |
2 |
The quarterly dividend per share paid on Preference Shares, Series I was decreased to |
3 |
The quarterly dividend per share paid on Preference Shares, Series 3 was increased to |
4 |
The first quarterly dividend of |
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about
Although
ABOUT
At
None of the information contained in, or connected to,
FOR FURTHER INFORMATION PLEASE CONTACT:
|
|
|
|
|
|
|
|
|
Toll Free: (888) 992-0997 |
|
Toll Free: (800) 481-2804 |
Email: media@enbridge.com |
|
NON-GAAP RECONCILIATIONS APPENDICES
This news release contains references to EBITDA, adjusted EBITDA, adjusted earnings, adjusted earnings per common share and DCF per share. Management believes the presentation of these metrics gives useful information to investors and shareholders, as they provide increased transparency and insight into the performance of the Company.
EBITDA represents earnings before interest, tax, depreciation and amortization.
Adjusted EBITDA represents EBITDA adjusted for unusual, infrequent or other non-operating factors on both a consolidated and segmented basis. Management uses EBITDA and adjusted EBITDA to set targets and to assess the performance of the Company and its business units.
Adjusted earnings represent earnings attributable to common shareholders adjusted for unusual, infrequent or other non-operating factors included in adjusted EBITDA, as well as adjustments for unusual, infrequent or other non-operating factors in respect of depreciation and amortization expense, interest expense, income taxes and noncontrolling interests on a consolidated basis. Management uses adjusted earnings as another measure of the Company's ability to generate earnings and uses EPS to assess performance of the Company.
DCF is defined as cash flow provided by operating activities before the impact of changes in operating assets and liabilities (including changes in environmental liabilities) less distributions to noncontrolling interests, preference share dividends and maintenance capital expenditures and further adjusted for unusual, infrequent or other non-operating factors. Management also uses DCF to assess the performance of the Company and to set its dividend payout target.
This news release also contains references to Debt-to-EBITDA, a non-GAAP ratio which utilizes adjusted EBITDA as one of its components. Debt-to-EBITDA is used as a liquidity measure to indicate the amount of adjusted earnings to pay debt, as calculated on the basis of generally accepted accounting principles in
Reconciliations of forward-looking non-GAAP financial measures and non-GAAP ratios to comparable
GAAP measures are not available due to the challenges and impracticability of estimating certain items, particularly certain contingent liabilities and non-cash unrealized derivative fair value losses and gains
subject to market variability. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures and non-GAAP ratios is not available without unreasonable effort.
Our non-GAAP financial measures and non-GAAP ratios described above are not measures that have standardized meaning prescribed by
The tables below provide a reconciliation of the non-GAAP measures to comparable GAAP measures.
APPENDIX A
NON-GAAP RECONCILIATIONS – ADJUSTED EBITDA AND ADJUSTED EARNINGS
CONSOLIDATED EARNINGS
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars) |
|
|
|
|
|
Liquids Pipelines |
2,325 |
2,164 |
|
7,179 |
6,944 |
Gas Transmission |
1,146 |
973 |
|
4,506 |
3,220 |
Gas Distribution and Storage |
522 |
271 |
|
1,854 |
1,354 |
|
102 |
30 |
|
497 |
295 |
Eliminations and Other |
295 |
(602) |
|
(502) |
(10) |
EBITDA |
4,390 |
2,836 |
|
13,534 |
11,803 |
Depreciation and amortization |
(1,317) |
(1,164) |
|
(3,783) |
(3,447) |
Interest expense |
(1,314) |
(921) |
|
(3,301) |
(2,709) |
Income tax expense |
(312) |
(128) |
|
(1,437) |
(1,157) |
Earnings attributable to noncontrolling interests |
(56) |
(2) |
|
(167) |
(117) |
Preference share dividends |
(98) |
(89) |
|
(286) |
(260) |
Earnings attributable to common shareholders |
1,293 |
532 |
|
4,560 |
4,113 |
ADJUSTED EBITDA TO ADJUSTED EARNINGS
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars, except per share amounts) |
|
|
|
|
|
Liquids Pipelines |
2,343 |
2,299 |
|
7,259 |
7,070 |
Gas Transmission |
1,154 |
1,092 |
|
3,510 |
3,314 |
Gas Distribution and Storage |
522 |
271 |
|
1,854 |
1,354 |
|
86 |
119 |
|
512 |
390 |
Eliminations and Other |
96 |
90 |
|
355 |
219 |
Adjusted EBITDA |
4,201 |
3,871 |
|
13,490 |
12,347 |
Depreciation and amortization |
(1,368) |
(1,200) |
|
(3,919) |
(3,554) |
Interest expense |
(1,150) |
(900) |
|
(3,261) |
(2,743) |
Income tax expense |
(363) |
(363) |
|
(1,490) |
(1,252) |
Earnings attributable to noncontrolling interests |
(27) |
(45) |
|
(136) |
(158) |
Preference share dividends |
(99) |
(89) |
|
(287) |
(260) |
Adjusted earnings |
1,194 |
1,274 |
|
4,397 |
4,380 |
Adjusted earnings per common share |
0.55 |
0.62 |
|
2.05 |
2.15 |
EBITDA TO ADJUSTED EARNINGS
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars, except per share amounts) |
|
|
|
|
|
EBITDA |
4,390 |
2,836 |
|
13,534 |
11,803 |
Adjusting items: |
|
|
|
|
|
Change in unrealized derivative fair value (gain)/loss |
(271) |
842 |
|
742 |
(243) |
Employee severance costs |
— |
— |
|
105 |
— |
Competitive Toll Settlement realized hedge loss |
— |
— |
|
— |
638 |
Net gain on sale |
— |
— |
|
(1,092) |
— |
Litigation settlement gain |
— |
124 |
|
— |
56 |
Other |
82 |
69 |
|
201 |
93 |
Total adjusting items |
(189) |
1,035 |
|
(44) |
544 |
Adjusted EBITDA |
4,201 |
3,871 |
|
13,490 |
12,347 |
Depreciation and amortization |
(1,317) |
(1,164) |
|
(3,783) |
(3,447) |
Interest expense |
(1,312) |
(921) |
|
(3,298) |
(2,709) |
Income tax expense |
(312) |
(128) |
|
(1,437) |
(1,157) |
Earnings attributable to noncontrolling interests |
(56) |
(2) |
|
(167) |
(117) |
Preference share dividends |
(99) |
(89) |
|
(287) |
(260) |
Adjusting items in respect of: |
|
|
|
|
|
Depreciation and amortization |
(51) |
(36) |
|
(136) |
(107) |
Interest expense |
162 |
21 |
|
37 |
(34) |
Income tax expense |
(51) |
(235) |
|
(53) |
(95) |
Earnings attributable to noncontrolling interests |
29 |
(43) |
|
31 |
(41) |
Adjusted earnings |
1,194 |
1,274 |
|
4,397 |
4,380 |
Adjusted earnings per common share |
0.55 |
0.62 |
|
2.05 |
2.15 |
APPENDIX B
NON-GAAP RECONCILIATION – ADJUSTED EBITDA TO SEGMENTED EBITDA
LIQUIDS PIPELINES
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars) |
|
|
|
|
|
Adjusted EBITDA |
2,343 |
2,299 |
|
7,259 |
7,070 |
Change in unrealized derivative fair value gain/(loss) |
26 |
(94) |
|
20 |
555 |
CTS realized hedge loss |
— |
— |
|
— |
(638) |
Litigation settlement gain |
— |
— |
|
— |
68 |
Other |
(44) |
(41) |
|
(100) |
(111) |
Total adjustments |
(18) |
(135) |
|
(80) |
(126) |
EBITDA |
2,325 |
2,164 |
|
7,179 |
6,944 |
GAS TRANSMISSION
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars) |
|
|
|
|
|
Adjusted EBITDA |
1,154 |
1,092 |
|
3,510 |
3,314 |
Change in unrealized derivative fair value gain/(loss) - Commodity prices |
13 |
(2) |
|
(4) |
(2) |
Gain on sale of Alliance and |
— |
— |
|
1,063 |
— |
Litigation provision |
— |
(124) |
|
— |
(124) |
Other |
(21) |
7 |
|
(63) |
32 |
Total adjustments |
(8) |
(119) |
|
996 |
(94) |
EBITDA |
1,146 |
973 |
|
4,506 |
3,220 |
GAS DISTRIBUTION AND STORAGE
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars) |
|
|
|
|
|
Adjusted EBITDA |
522 |
271 |
|
1,854 |
1,354 |
Total adjustments |
— |
— |
|
— |
— |
EBITDA |
522 |
271 |
|
1,854 |
1,354 |
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars) |
|
|
|
|
|
Adjusted EBITDA |
86 |
119 |
|
512 |
390 |
Change in unrealized derivative fair value gain/(loss) - Commodity prices |
26 |
(84) |
|
(13) |
(84) |
Gain on sale of NR Green |
— |
— |
|
29 |
— |
Other |
(10) |
(5) |
|
(31) |
(11) |
Total adjustments |
16 |
(89) |
|
(15) |
(95) |
EBITDA |
102 |
30 |
|
497 |
295 |
ELIMINATIONS AND OTHER
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars) |
|
|
|
|
|
Adjusted EBITDA |
96 |
90 |
|
355 |
219 |
Change in unrealized derivative fair value gain/(loss) - Foreign exchange |
217 |
(652) |
|
(716) |
(250) |
Employee severance costs |
— |
— |
|
(105) |
— |
Other |
(18) |
(40) |
|
(36) |
21 |
Total adjustments |
199 |
(692) |
|
(857) |
(229) |
EBITDA |
295 |
(602) |
|
(502) |
(10) |
APPENDIX C
NON-GAAP RECONCILIATION – CASH PROVIDED BY OPERATING ACTIVITIES TO DCF
|
Three months ended
|
|
Nine months ended |
||
|
2024 |
2023 |
|
2024 |
2023 |
(unaudited; millions of Canadian dollars) |
|
|
|
|
|
Cash provided by operating activities |
2,973 |
3,084 |
|
8,938 |
10,389 |
Adjusted for changes in operating assets and liabilities1 |
(155) |
(233) |
|
352 |
(1,461) |
|
2,818 |
2,851 |
|
9,290 |
8,928 |
Distributions to noncontrolling interests2 |
(79) |
(87) |
|
(245) |
(282) |
Preference share dividends2 |
(99) |
(89) |
|
(287) |
(260) |
Maintenance capital |
(290) |
(249) |
|
(748) |
(648) |
Significant adjusting items: |
|
|
|
|
|
Other receipts of cash not recognized in revenue |
53 |
50 |
|
89 |
173 |
Employee severance costs, net of tax |
4 |
— |
|
95 |
— |
Distributions from equity investments in excess of cumulative earnings2 |
174 |
148 |
|
650 |
343 |
CTS realized hedge loss, net of tax |
— |
— |
|
— |
479 |
Litigation settlement gain |
— |
— |
|
— |
(68) |
Other items |
15 |
(51) |
|
73 |
(130) |
DCF |
2,596 |
2,573 |
|
8,917 |
8,535 |
1 |
Changes in operating assets and liabilities, net of recoveries. |
2 |
Presented net of adjusting items. |
View original content:https://www.prnewswire.com/news-releases/enbridge-reports-strong-third-quarter-2024-financial-results-executes-on-business-priorities-and-reaffirms-financial-guidance-and-outlook-302293442.html
SOURCE