UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2026
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 001-15254
ENBRIDGE INC.
(Exact Name of Registrant as Specified in Its Charter)
Canada
98-0377957
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
200, 425 - 1st Street S.W.
Calgary, Alberta, Canada T2P 3L8
(Address of Principal Executive Offices) (Zip Code)
(403) 231-3900
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Shares
ENB
New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The registrant had 2,184,085,509 common shares outstanding as at July 24, 2026.
PART I
PAGE
Item 1.
Financial Statements
6
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
33
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
49
Item 4.
Controls and Procedures
50
PART II
Legal Proceedings
Item 1A.
Risk Factors
51
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
52
Item 5.
Other Information
Item 6.
Exhibits
53
Signatures
54
2
GLOSSARY
"we", "our", "us" and "Enbridge"
Enbridge Inc.
AOCI
Accumulated other comprehensive income/(loss)
Army Corps
the US Army Corps of Engineers
East Tennessee
East Tennessee Natural Gas, LLC
EBITDA
Earnings before interest, income taxes and depreciation and amortization
EEP
Enbridge Energy Partners, L.P.
EIS
Environmental Impact Statement
Enbridge Gas Ontario
Enbridge Gas Inc.
Exchange Act
United States Securities Exchange Act of 1934, as amended
OCI
Other comprehensive income/(loss)
OPEB
Other postretirement benefit obligations
SEP
Spectra Energy Partners, LP
Texas Eastern
Texas Eastern Transmission, LP
the Partnerships
Spectra Energy Partners, LP and Enbridge Energy Partners, L.P.
US
United States of America
US Gas Utilities / the Acquisitions
Enbridge Inc.'s acquisitions of three US gas utilities from Dominion Energy, Inc.
3
CONVENTIONS
The terms "we", "our", "us" and "Enbridge" as used in this report refer collectively to Enbridge Inc. and its subsidiaries unless the context suggests otherwise. These terms are used for convenience only and are not intended as a precise description of any separate legal entity within Enbridge.
Unless otherwise specified, all dollar amounts are expressed in Canadian dollars, all references to "dollars" or "$" are to Canadian dollars and all references to "US$" are to United States (US) dollars. All amounts are provided on a before-tax basis, unless otherwise stated.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this quarterly report on Form 10-Q to provide information about us and our subsidiaries and affiliates, including management’s assessment of our and our subsidiaries’ future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "anticipate", "believe", "estimate", "expect", "forecast", "intend", "likely", "plan", "project", "target" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: our corporate vision and strategy, including strategic priorities and enablers; expected supply of, demand for, exports of and prices of crude oil, natural gas, natural gas liquids (NGL), liquefied natural gas (LNG), renewable natural gas (RNG) and renewable energy; energy evolution and lower-carbon energy, and our approach thereto; our sustainability goals, practices and performance; industry and market conditions; anticipated utilization of our assets; dividend growth and payout policy; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected strategic priorities and performance of the Liquids Pipelines, Gas Transmission, Gas Distribution and Storage, and Renewable Power Generation businesses; the characteristics, anticipated benefits, financing and timing of our acquisitions, dispositions and other transactions, including the anticipated benefits of the acquisitions of three US gas utilities (US Gas Utilities) from Dominion Energy, Inc. (the Acquisitions); expected future actions of regulators and courts; government trade policies and potential impacts of potential and announced tariffs, duties, fees, economic sanctions, or other trade measures and the timing thereof; expected costs, benefits and in-service dates related to announced projects and projects under construction; expected capital expenditures; investable capacity and capital allocation priorities; expected equity funding requirements for our commercially secured growth program; expected future growth, development and expansion opportunities; expected optimization and efficiency opportunities; expectations about our joint venture partners' ability to complete and finance projects under construction; our ability to successfully integrate the US Gas Utilities; expected closing of acquisitions, dispositions and other transactions and the timing thereof; toll and rate case discussions and proceedings and anticipated timeline and impact therefrom, including those relating to the Gas Distribution and Storage and Gas Transmission businesses; operational, industry, regulatory, climate change and other risks associated with our businesses; and our assessment of the potential impact of the various risk factors identified herein.
Although we believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include the following: the expected supply of, demand for, export of and prices of crude oil, natural gas, NGL, LNG, RNG and renewable energy; anticipated utilization of our assets; exchange rates; inflation; interest rates; tariffs and trade policies; availability and price of labor and construction materials; the stability of our supply chain; operational reliability; maintenance of support and regulatory approvals for our projects and transactions; anticipated in-service dates; weather; the timing, terms and closing of acquisitions, dispositions and other transactions; the realization of anticipated benefits of transactions, including the Acquisitions; governmental legislation; litigation; estimated future dividends and impact of our dividend policy on our future cash flows; our credit ratings; capital project funding; hedging program; expected earnings before interest, income taxes, and depreciation and amortization (EBITDA); expected earnings/(loss); expected future cash flows; and expected distributable cash flow. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL, LNG, RNG and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for our services. Similarly, exchange rates, inflation, interest rates and tariffs impact the economies and business environments in which we operate and may impact levels of demand for our services and cost of inputs and are therefore inherent in all forward-looking statements. The most relevant assumptions associated with forward-looking statements regarding
4
announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labor and construction materials; the stability of our supply chain; the effects of inflation and foreign exchange rates on labor and material costs; the effects of interest rates on borrowing costs; the impact of weather; and customer, government, court and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Our forward-looking statements are subject to risks and uncertainties pertaining to the successful execution of our strategic priorities; operating performance; legislative and regulatory parameters; litigation; acquisitions, dispositions and other transactions and the realization of anticipated benefits therefrom (including the anticipated benefits from the Acquisitions); evolving government trade policies, including potential and announced tariffs, duties, fees, economic sanctions or other trade measures; operational dependence on third parties; dividend policy; project approval and support; renewals of rights-of-way; weather; economic and competitive conditions; public opinion; changes in tax laws and tax rates; exchange rates; inflation; interest rates; commodity prices; access to and cost of capital; our ability to maintain adequate insurance in the future at commercially reasonable rates and terms; political decisions; global geopolitical conflicts and conditions; and the supply of, demand for and prices of commodities and other alternative energy, including but not limited to, those risks and uncertainties discussed in this quarterly report on Form 10-Q and in our other filings with Canadian and US securities regulators. The impact of any one assumption, risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent, and our future course of action depends on management’s assessment of all information available at the relevant time. Except to the extent required by applicable law, we assume no obligation to publicly update or revise any forward-looking statements made in this quarterly report on Form 10-Q or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to us or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements.
NON-GAAP AND OTHER FINANCIAL MEASURES
Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) in this quarterly report on Form 10-Q makes reference to non-GAAP and other financial measures, including EBITDA. EBITDA is defined as earnings before interest, income taxes and depreciation and amortization. Management uses EBITDA to assess performance of Enbridge and to set targets. Management believes the presentation of EBITDA gives useful information to investors as it provides increased transparency and insight into the performance of Enbridge.
The non-GAAP and other financial measures are not measures that have a standardized meaning prescribed by the accounting principles generally accepted in the US (US GAAP) and are not US GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers. A reconciliation of historical non-GAAP and other financial measures to the most directly comparable GAAP measures is set out in this MD&A and is available on our website. Additional information on non-GAAP and other financial measures may be found on our website, www.sedarplus.ca or www.sec.gov.
5
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF EARNINGS
Three months endedJune 30,
Six months endedJune 30,
2026
2025
(unaudited; millions of Canadian dollars, except per share amounts)
Operating revenues
Commodity sales
22,585
8,124
35,777
17,673
Gas distribution sales
1,841
1,763
5,980
5,462
Transportation and other services
4,892
4,989
9,918
10,243
Total operating revenues (Note 3)
29,318
14,876
51,675
33,378
Operating expenses
Commodity costs
22,080
8,008
35,243
17,343
Gas distribution costs
538
548
2,506
2,164
Operating and administrative
2,361
2,310
4,929
4,781
Depreciation and amortization
1,429
1,391
2,862
2,799
Impairment of long-lived assets
—
330
Total operating expenses
26,408
12,587
45,540
27,417
Operating income
2,910
2,289
6,135
5,961
Income from equity investments
532
510
1,073
1,239
Other income/(expense) (Note 10)
(35
)
1,369
(214
1,489
Interest expense
(1,395
(1,181
(2,617
(2,515
Earnings before income taxes
2,012
2,987
4,377
6,174
Income tax expense
(442
(666
(1,029
(1,363
Earnings
1,570
2,321
3,348
4,811
Earnings attributable to noncontrolling interests and redeemable noncontrolling interest
(69
(42
(168
Earnings attributable to controlling interests
1,501
2,279
3,279
4,643
Preference share dividends
(105
(102
(212
(205
Earnings attributable to common shareholders
1,396
2,177
3,067
4,438
Earnings per common share attributable to common shareholders (Note 5)
0.64
1.00
1.41
2.04
Diluted earnings per common share attributable to common shareholders (Note 5)
1.40
2.03
The accompanying notes are an integral part of these interim consolidated financial statements.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three months ended June 30,
(unaudited; millions of Canadian dollars)
Other comprehensive income/(loss), net of tax
Change in unrealized gain/(loss) on cash flow hedges
17
11
19
(14
Gain/(loss) on net investment hedges (Note 8)
(247
447
(495
413
Other comprehensive income/(loss) from equity investees and other investments
9
(17
21
Excluded components of fair value hedges
10
14
Reclassification to earnings of loss on cash flow hedges
104
8
106
Reclassification to earnings of pension and other postretirement benefits (OPEB) amounts
(7
(6
(12
(13
Reclassification of actuarial gain on pension and OPEB from regulatory assets
Foreign currency translation adjustments
1,225
(3,534
2,483
(3,415
1,095
(3,006
2,084
(2,931
Comprehensive income/(loss)
2,665
(685
5,432
1,880
Comprehensive (income)/loss attributable to noncontrolling interests and redeemable noncontrolling interest
(83
20
(101
(108
Comprehensive income/(loss) attributable to controlling interests
2,582
(665
5,331
1,772
Comprehensive income/(loss) attributable to common shareholders
2,477
(767
5,119
1,567
7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Three months ended
Six months ended
June 30,
Preference shares
Balance at beginning and end of period
6,818
Common shares
Balance at beginning of period
71,943
71,808
71,876
71,738
Shares issued on exercise of stock options
18
46
Shares issued on vesting of restricted stock units (RSU)
1
55
39
Balance at end of period
71,949
71,823
Additional paid-in capital
168
229
242
275
Stock-based compensation
24
61
60
Stock options exercised
(5
(22
(40
Vested RSUs
(4
(1
(98
183
226
Deficit
(19,611
(17,785
(21,284
(20,046
Common share dividends declared
(2,120
(2,055
Redemption value adjustment attributable to redeemable noncontrolling interest
(20,334
(17,663
Accumulated other comprehensive income (Note 7)
5,652
7,188
4,681
7,115
Other comprehensive income/(loss) attributable to common shareholders, net of tax
1,081
(2,944
2,052
(2,871
6,733
4,244
Total Enbridge Inc. shareholders' equity
65,349
65,448
Noncontrolling interests
2,782
3,022
2,855
2,993
Earnings attributable to noncontrolling interests
56
42
43
Other comprehensive income/(loss) attributable to noncontrolling interests, net of tax
Change in unrealized loss on cash flow hedges
(2
16
(60
34
(59
(62
32
Comprehensive income/(loss) attributable to noncontrolling interests
70
(20
75
108
Distributions
(95
(180
(195
Contributions
Other
(3
2,760
Total equity
68,109
68,358
Dividends paid per common share
0.97
0.94
1.94
1.88
CONSOLIDATED STATEMENTS OF CASH FLOWS
Operating activities
Adjustments to reconcile earnings to net cash provided by operating activities:
Deferred income tax expense
455
791
Unrealized derivative fair value loss/(gain), net
377
(1,375
(1,073
(1,239
Distributions from equity investments
967
1,059
204
(44
Changes in operating assets and liabilities
(687
(841
Net cash provided by operating activities
6,453
6,291
Investing activities
Capital expenditures
(5,414
(3,623
Long-term, restricted and other investments
(713
(1,380
Distributions from equity investments in excess of cumulative earnings
397
384
Additions to intangible assets
(135
(124
Proceeds from disposition of equity investments
130
(30
Net cash used in investing activities
(5,895
(4,648
Financing activities
Net change in short-term borrowings
539
385
Net change in commercial paper and credit facility draws
503
(497
Debenture and term note issues, net of issue costs
4,722
6,530
Debenture and term note repayments
(796
(4,079
Contributions from noncontrolling interests
Distributions to noncontrolling interests
Contributions from redeemable noncontrolling interest
Distributions to redeemable noncontrolling interest
Common shares issued, net of issue costs
(206
Common share dividends
(4,236
(4,109
Net change in affiliate loans
30
25
(68
(33
Net cash provided by/(used in) financing activities
288
(2,166
Effect of translation of foreign denominated cash and cash equivalents and restricted cash
(55
Net change in cash and cash equivalents and restricted cash
892
(578
Cash and cash equivalents and restricted cash at beginning of period1
1,320
2,000
Cash and cash equivalents and restricted cash at end of period1
2,212
1,422
1As at June 30, 2026 and December 31, 2025, long-term restricted cash of $142 million (June 30, 2025 - $136 million) and $143 million (December 31, 2024 - $105 million), respectively, was included in Restricted long-term investments and cash in the Consolidated Statements of Financial Position.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
June 30,2026
December 31,2025
(unaudited; millions of Canadian dollars; number of shares in millions)
Assets
Current assets
Cash and cash equivalents
1,094
Restricted cash
58
83
Trade receivables and unbilled revenues
9,846
7,081
Other current assets
4,115
3,230
Accounts receivable from affiliates
94
86
Inventory
1,595
1,621
17,720
13,195
Property, plant and equipment, net
137,658
131,598
Long-term investments
22,331
21,264
Restricted long-term investments and cash (Note 8)
1,483
1,293
Deferred amounts and other assets
11,329
11,149
Intangible assets, net
3,971
3,991
Goodwill
36,215
35,284
Deferred income taxes
940
701
Total assets
231,647
218,475
Liabilities and equity
Current liabilities
Short-term borrowings
1,569
1,030
Trade payables and accrued liabilities
10,133
7,555
Other current liabilities
4,851
Accounts payable to affiliates
38
Interest payable
1,262
1,176
Current portion of long-term debt
6,711
5,031
24,577
21,004
Long-term debt
103,852
98,963
Other long-term liabilities
12,714
12,302
21,659
20,282
162,802
152,551
Contingencies (Note 11)
Redeemable noncontrolling interest
736
Equity
Share capital
Common shares (2,184 and 2,182 outstanding at June 30, 2026 and December 31, 2025, respectively)
Total Enbridge Inc. shareholders’ equity
62,333
65,188
Total liabilities and equity
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements of Enbridge Inc. ("we", "our", "us" and "Enbridge") have been prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP) and Regulation S-X for interim consolidated financial information. They do not include all of the information and notes required by US GAAP for annual consolidated financial statements and should therefore be read in conjunction with our audited consolidated financial statements and notes for the year ended December 31, 2025. In the opinion of management, the interim consolidated financial statements contain all normal recurring adjustments necessary to present fairly our financial position, results of operations and cash flows for the interim periods reported. These interim consolidated financial statements follow the same significant accounting policies as those included in our audited consolidated financial statements for the year ended December 31, 2025. Amounts are stated in Canadian dollars unless otherwise noted.
Our operations and earnings for interim periods can be affected by seasonal fluctuations within the gas distribution utility businesses, as well as other factors such as supply of and demand for crude oil and natural gas and may not be indicative of annual results.
Certain comparative figures in our interim consolidated financial statements have been reclassified to conform to the current year's presentation.
2. CHANGES IN ACCOUNTING POLICIES
FUTURE ACCOUNTING POLICY CHANGES
Disaggregation of Income Statement Expenses
Accounting Standards Update (ASU) 2024-03 was issued in November 2024 to improve financial reporting by requiring entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The ASU requires entities to disclose 1) the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, (e) depreciation, depletion and amortization recognized as part of oil and gas producing activities, (f) expense reimbursements included in a relevant expense caption, and (g) selling expenses, and 2) a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective January 1, 2027, with interim period disclosure requirements effective after January 1, 2028 and can be applied either prospectively or retrospectively. The additional note disclosures will be included in our December 31, 2027 annual consolidated financial statements and in our interim financial statements beginning in 2028.
3. REVENUE
REVENUE FROM CONTRACTS WITH CUSTOMERS
Major Products and Services
Three months ended June 30, 2026
Liquids Pipelines
Gas Transmission
Gas Distributionand Storage
Renewable Power Generation
Eliminations and Other
Consolidated
(millions of Canadian dollars)
Transportation revenue
2,720
1,462
73
4,255
Storage and other revenue
66
173
147
386
1,830
Electricity revenue
77
36
44
Total revenue from contracts with customers
2,786
1,671
2,058
6,592
22,361
136
22,541
Other revenue1,2
74
87
185
Intersegment revenue
Total revenue
25,221
1,720
2,081
164
132
Three months ended June 30, 2025
2,895
1,349
63
4,307
162
152
389
1,735
28
2,970
1,539
1,950
6,511
7,787
29
280
8,096
80
67
90
269
10,837
1,604
2,016
145
274
Six months ended June 30, 2026
5,515
2,933
8,584
128
360
302
790
5,943
154
15
89
5,643
3,367
6,396
15,560
34,900
93
695
35,688
140
76
181
427
(31
40,683
3,501
6,489
338
664
12
Six months ended June 30, 2025
6,000
2,829
125
8,954
143
335
309
787
5,401
6,143
3,216
5,835
15,288
16,721
834
17,621
157
120
167
469
23,021
3,319
5,972
265
801
We disaggregate revenues into categories which represent our principal performance obligations within each business segment. These revenue categories represent the most significant revenue streams in each segment and consequently are considered to be the most relevant revenue information for management to consider in evaluating performance.
Contract Balances
Contract Receivables
ContractAssets
Contract Liabilities
Balance as at June 30, 2026
2,968
232
2,574
Balance as at December 31, 2025
3,799
315
2,765
Contract receivables represent the amount of receivables derived from contracts with customers.
Contract assets represent the amount of revenues which have been recognized in advance of payments received for performance obligations we have fulfilled (or have partially fulfilled) and prior to the point in time at which our right to payment is unconditional. Amounts included in contract assets are transferred to accounts receivable when our right to receive the consideration becomes unconditional.
Contract liabilities represent payments received for performance obligations which have not been fulfilled. Contract liabilities primarily relate to make-up rights and deferred revenues. Revenues recognized during the three and six months ended June 30, 2026 included in contract liabilities at the beginning of the period were $79 million and $327 million, respectively. Increases in contract liabilities from cash received, net of amounts recognized as revenues, during the three and six months ended June 30, 2026 were $130 million and $251 million, respectively.
Performance Obligations
There were no material revenues recognized in the three and six months ended June 30, 2026 from performance obligations satisfied in previous periods.
Revenues to be Recognized from Unfulfilled Performance Obligations
Total revenues from performance obligations expected to be fulfilled in future periods is $57.6 billion, of which $5.1 billion and $8.6 billion are expected to be recognized during the remaining six months ending December 31, 2026 and the year ending December 31, 2027, respectively.
13
The revenues excluded from the amounts above based on optional exemptions available under ASC 606, as explained below, represent a significant portion of our overall revenues and revenues from contracts with customers. Certain revenues such as flow-through operating costs charged to shippers are recognized at the amount for which we have the right to invoice our customers and are excluded from the amounts for revenues to be recognized in the future from unfulfilled performance obligations above. Variable consideration is excluded from the amounts above due to the uncertainty of the associated consideration, which is generally resolved when actual volumes and prices are determined. For example, we consider interruptible transportation service revenues to be variable revenues since volumes cannot be estimated. Additionally, the effect of escalation on certain tolls which are contractually escalated for inflation has not been reflected in the amounts above as it is not possible to reliably estimate future inflation rates. Revenues for periods extending beyond the current rate settlement term for regulated contracts where the tolls are periodically reset by the regulator are excluded from the amounts above since future tolls remain unknown. Finally, revenues from contracts with customers which have an original expected duration of one year or less are excluded from the amounts above.
Recognition and Measurement of Revenues
Revenues from products transferred at a point in time
103
Revenues from products and services transferred over time1
1,635
2,002
31
1,511
1,919
45
6,445
92
199
3,293
6,304
121
15,361
134
3,164
5,768
79
15,154
4. SEGMENTED INFORMATION
LiquidsPipelines
GasTransmission
GasDistributionand Storage1
RenewablePowerGeneration
Total Reportable Segments
Operating revenues2
29,186
Commodity and gas distribution costs
(21,924
(547
(22,504
(985
(564
(710
(87
(2,346
283
227
26
536
Other income
180
2,623
1,433
878
118
5,052
(216
(1,429
14,602
(7,741
(16
(553
(8,309
(1,032
(514
(688
(72
(2,306
Impairment of long-lived assets3
(330
245
241
27
513
22
127
65
222
2,331
1,442
109
4,392
1,167
(1,391
51,011
(34,547
(52
(2,524
(37,123
(2,092
(1,115
(1,484
(173
(4,864
508
459
113
1,080
210
372
4,580
3,003
2,587
306
10,476
(620
(2,862
32,577
(16,591
(27
(2,187
(18,801
(2,160
(1,038
(1,460
(150
(4,808
613
473
159
1,246
41
188
114
4,924
2,915
2,110
332
10,281
1,207
(2,799
Capital Expenditures1
Six months ended June 30,
443
284
854
593
1,438
691
2,380
1,295
Gas Distribution and Storage
748
735
1,456
409
214
833
359
3,038
1,940
5,523
3,694
Property, Plant and Equipment
52,689
51,689
38,235
35,421
41,016
39,644
5,349
4,439
369
405
5. EARNINGS PER COMMON SHARE AND DIVIDENDS PER SHARE
NUMERATOR
The numerator used in calculating both basic and diluted earnings per share equals Earnings attributable to common shareholders per the Consolidated Statements of Earnings, less Redemption value adjustment attributable to redeemable noncontrolling interest per the Consolidated Statements of Changes in Equity.
DENOMINATOR
The denominator of the basic earnings per common share calculation represents the weighted average number of common shares outstanding.
The denominator of the diluted earnings per common share calculation uses the treasury stock method to determine the dilutive impact of stock options and share-settled RSUs. This method assumes any proceeds from the exercise of stock options and vesting of share-settled RSUs would be used to purchase common shares at the average market price during the period. The basic weighted average shares outstanding are adjusted by this dilutive impact to derive the diluted weighted average shares outstanding.
Weighted average shares outstanding used to calculate basic and diluted earnings per common share are as follows:
(number of shares in millions)
Weighted average shares outstanding
2,184
2,180
2,183
Effect of dilutive options and RSUs
Diluted weighted average shares outstanding
2,190
2,186
2,189
For the three months ended June 30, 2025, 1.6 million of anti-dilutive stock options with a weighted average exercise price of $60.21 were excluded from the diluted earnings per common share calculation. There were no anti-dilutive stock options outstanding for the three months ended June 30, 2026.
For the six months ended June 30, 2026 and 2025, 1.1 million and 2.4 million, respectively, of anti-dilutive stock options with a weighted average exercise price of $69.76 and $60.37, respectively, were excluded from the diluted earnings per common share calculation.
DIVIDENDS PER SHARE
On July 27, 2026, our Board of Directors declared the following quarterly dividends. All dividends are payable on September 1, 2026 to shareholders of record on August 14, 2026.
Dividend per share
$0.9700
Preference Shares, Series A
$0.34375
Preference Shares, Series B
$0.32513
Preference Shares, Series D
$0.33825
Preference Shares, Series F
$0.34613
Preference Shares, Series G1
$0.30247
Preference Shares, Series H
$0.38200
Preference Shares, Series I2
$0.27789
Preference Shares, Series L
US$0.36612
Preference Shares, Series N
$0.41850
Preference Shares, Series P
$0.36988
Preference Shares, Series R
$0.39463
Preference Shares, Series 1
US$0.41898
Preference Shares, Series 3
$0.33050
Preference Shares, Series 43
$0.29427
Preference Shares, Series 5
US$0.41769
Preference Shares, Series 7
$0.37425
Preference Shares, Series 9
$0.35450
Preference Shares, Series 11
$0.34231
Preference Shares, Series 13
$0.33719
Preference Shares, Series 15
$0.35163
Preference Shares, Series 19
$0.38825
6. DEBT
CREDIT FACILITIES
The following table provides details of our committed credit facilities as at June 30, 2026:
Maturity1
Total Facility
Draws2
Available
2027-2049
8,045
6,866
1,179
Enbridge (U.S.) Inc.
2027-2030
10,667
3,916
6,751
Enbridge Pipelines Inc.
2027
1,996
2,500
930
Total committed credit facilities
23,212
14,348
8,864
In July 2026, we renewed our 364-day extendible credit facilities, extending the maturity dates to July 2028, which includes a one-year term out provision from July 2027. We also renewed our five-year credit facilities, extending the maturity dates to July 2031. Further, we extended the maturity dates of our three-year credit facilities to July 2029.
In addition to the committed credit facilities noted above, we maintain $1.6 billion of uncommitted demand letter of credit facilities, of which $885 million was unutilized as at June 30, 2026. As at December 31, 2025, we had $1.6 billion of uncommitted demand letter of credit facilities, of which $932 million was unutilized.
Our credit facilities carry a weighted average standby fee of 0.1% per annum on the unused portion and draws bear interest at market rates. Certain credit facilities serve as a back-stop to our commercial paper programs and we have the option to extend such facilities, which are currently scheduled to mature from 2027 to 2049.
As at June 30, 2026 and December 31, 2025, commercial paper and credit facility draws, net of short-term borrowings and non-revolving credit facilities that mature within one year, of $12.8 billion and $12.1 billion, respectively, were supported by the availability of long-term committed credit facilities and, therefore, have been classified as long-term debt.
LONG-TERM DEBT ISSUANCES
During the six months ended June 30, 2026, we completed the following long-term debt issuances totaling $2.0 billion and US$2.0 billion:
Company
Issuance Date
Principal Amount
(millions of Canadian dollars, unless otherwise stated)
February 2026
3.57%
medium-term notes due February 2031
$850
4.35%
medium-term notes due February 2036
5.10%
medium-term notes due February 2056
$300
March 2026
4.85%
senior notes due March 2031
US$1,000
5.45%
senior notes due March 2036
LONG-TERM DEBT REPAYMENTS
During the six months ended June 30, 2026, we completed the following long-term debt repayments totaling $655 million, US$64 million and €22 million:
Repayment Date
June 2026
2.81%
medium-term notes
$250
Enbridge Pipelines (Southern Lights) L.L.C.
3.98%
senior notes
US$14
May 2026
3.00%
medium-term notes1
$400
Enbridge Southern Lights LP
4.01%
$5
Blauracke GmbH
April 2026
2.10%
€22
Public Service Company of North Carolina, Incorporated
January 2026
6.99%
debentures
US$50
SUBORDINATED TERM NOTES
As at June 30, 2026 and December 31, 2025, our fixed-to-floating rate and fixed-to-fixed rate subordinated term notes had an aggregate principal value of $16.4 billion and $16.0 billion, respectively.
FAIR VALUE ADJUSTMENT
As at June 30, 2026 and December 31, 2025, the fair value adjustments to decrease total debt assumed in historical acquisitions were $449 million and $430 million, respectively.
DEBT COVENANTS
Our credit facility agreements and term debt trust indentures include standard events of default and covenant provisions whereby accelerated repayment and/or termination of the agreements may result if we were to default on payment or violate certain covenants. As at June 30, 2026, we were in compliance with all such debt covenant provisions.
7. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME
Changes in Accumulated other comprehensive income (AOCI) attributable to our common shareholders for the six months ended June 30, 2026 and 2025 are as follows:
Cash FlowHedges
NetInvestmentHedges
CumulativeTranslationAdjustment
EquityInvesteesand OtherInvestments
Pensionand OPEBAdjustment
Total
Balance as at January 1, 2026
462
(1,614
5,372
436
Other comprehensive income/(loss) retained in AOCI
2,449
(10
1,972
Other comprehensive (income)/loss reclassified to earnings
Interest rate contracts1
142
Amortization of pension and OPEB actuarial gain2
(18
170
2,096
Tax impact
Income tax on amounts retained in AOCI
Income tax on amounts reclassified to earnings
(36
(43
589
(2,109
7,821
424
ExcludedComponentsof Fair ValueHedges
Balance as at January 1, 2025
407
(2,033
8,452
(15
(3,356
62
(2,863
Foreign exchange contracts3
48
(8
Balance as at June 30, 2025
408
(1,620
5,096
8. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
MARKET RISK
Our earnings, cash flows and other comprehensive income/(loss) (OCI) are subject to movements in foreign exchange rates, interest rates, commodity prices and our share price (collectively, market risks). Formal risk management policies, processes and systems have been designed to mitigate these risks.
The following summarizes the types of market risks to which we are exposed and the risk management instruments used to mitigate them. We use a combination of qualifying and non-qualifying derivative instruments to manage the risks noted below.
Foreign Exchange Risk
We generate certain revenues, incur expenses and hold a number of investments and subsidiaries that are denominated in currencies other than Canadian dollars. As a result, our earnings, cash flows and OCI are exposed to fluctuations resulting from foreign exchange rate variability.
We employ financial derivative instruments to hedge foreign currency-denominated earnings exposure. A combination of qualifying and non-qualifying derivative instruments is used to hedge anticipated foreign currency-denominated revenues and expenses and to manage variability in cash flows. We hedge certain net investments in US dollar-denominated investments and subsidiaries using US dollar-denominated debt.
Interest Rate Risk
Our earnings and cash flows are exposed to short-term interest rate variability due to the regular repricing of our variable rate debt, primarily commercial paper. We have a policy of limiting the maximum floating rate debt to 30% of total debt outstanding. We monitor and adjust our debt portfolio mix of fixed and variable rate debt instruments along with the use of derivative instruments, to support compliance with our policy. We have implemented a program to partially mitigate the impact of short-term interest rate volatility on interest expense via the execution of floating-to-fixed interest rate swaps and costless collars. These swaps have an average fixed rate of 3.1%.
We are exposed to changes in the fair value of fixed rate debt that arise as a result of changes in market interest rates. Pay floating-receive fixed interest rate swaps are used, when applicable, to hedge against future changes to the fair value of fixed rate debt which mitigates the impact of fluctuations in fair value. Executed fixed-to-floating interest rate swaps have an average swap rate of 3.5%.
Our earnings, cash flows and OCI are also exposed to variability in longer term interest rates ahead of anticipated fixed rate term debt issuances. A combination of qualifying and non-qualifying forward starting interest rate swaps are used to hedge against the effect of future interest rate movements. We have established a program including some of our subsidiaries to partially mitigate our exposure to long-term interest rate variability on forecasted term debt issuances via execution of floating-to-fixed interest rate swaps with an average swap rate of 3.6%.
Commodity Price Risk
Our earnings, cash flows and OCI are exposed to changes in commodity prices as a result of our ownership interests in certain assets and investments, as well as through the activities of our energy marketing subsidiaries. These commodities include natural gas, crude oil, power and natural gas liquids (NGL). We employ financial and physical derivative instruments to fix a portion of the variable price exposures that arise from physical transactions involving these commodities. For our US Gas Utilities, changes in derivatives' fair values are deferred as regulatory assets or liabilities until settlement. We use primarily non-qualifying derivative instruments to manage commodity price risk.
Equity Price Risk
Equity price risk is the risk of earnings fluctuations due to changes in our share price. We have exposure to our own common share price through the issuance of various forms of stock-based compensation, which affect earnings through the revaluation of outstanding units every period.
TOTAL DERIVATIVE INSTRUMENTS
We have a policy of entering into individual International Swaps and Derivatives Association, Inc. (ISDA) agreements, or other similar derivative agreements, with the majority of our financial derivative counterparties. These agreements provide for the net settlement of derivative instruments outstanding with specific counterparties in the event of bankruptcy or other significant credit events and reduce our credit risk exposure on financial derivative asset positions in those circumstances.
The following tables summarize the Consolidated Statements of Financial Position location and carrying value of our derivative instruments, as well as the maximum potential settlement amounts, in the event of the specific circumstances described above.
June 30, 2026
DerivativeInstruments Used asCash Flow Hedges
DerivativeInstrumentsUsed asFair Value Hedges
Non-QualifyingDerivativeInstruments
Total GrossDerivativeInstrumentsas Presented
AmountsAvailablefor Offset
Total NetDerivativeInstruments
Foreign exchange contracts
Interest rate contracts
40
(37
88
Commodity contracts
939
(507
432
1,005
1,090
526
(25
172
189
(103
303
320
(170
150
(645
(625
(39
37
(621
507
(114
(1,305
(1,306
564
(742
(1,146
(1,121
(70
(65
(66
(1,324
(1,422
(1,252
Total net derivative asset/(liability)
(1,737
71
313
(1,321
(1,318
December 31, 2025
69
458
(192
266
591
(246
345
(24
117
124
293
(71
(364
(347
(9
(48
(11
(300
192
(703
(712
246
(466
(819
(795
(34
(50
(84
(57
(92
(961
(995
(924
(1,104
(29
91
190
(873
(823
23
The following table summarizes the maturity and notional principal or quantity outstanding related to our derivative instruments:
2028
2029
2030
Thereafter
Foreign exchange contracts - US dollar forwards - purchase (millions of US dollars)
1,227
Foreign exchange contracts - US dollar forwards - sell (millions of US dollars)
4,166
5,681
4,572
2,838
1,590
498
19,345
Foreign exchange contracts - US dollar collars - sell (millions of US dollars)
240
810
Foreign exchange contracts - British pound (GBP) forwards - sell (millions of GBP)
Foreign exchange contracts - Euro forwards - sell (millions of Euro)
81
64
Interest rate contracts - short-term pay fixed rate (millions of Canadian dollars)
5,041
8,995
8,368
7,146
6,054
2,681
38,285
Interest rate contracts - receive fixed rate (millions of Canadian dollars)
4,495
8,942
8,941
8,944
69,439
109,703
Interest rate contracts - long-term pay fixed rate (millions of Canadian dollars)1
1,686
941
2,627
Interest rate contracts - costless collar (millions of Canadian dollars)
1,018
1,882
2,980
Commodity contracts - natural gas (billions of cubic feet)2
201
Commodity contracts - crude oil (millions of barrels)2
(38
Commodity contracts - power (megawatt per hour (MW/H))
146
28³
Derivatives Designated as Fair Value Hedges
The following table presents interest rate and foreign exchange derivative instruments that are designated and qualify as fair value hedges. The realized and unrealized gain or loss on the derivative is included in Other income/(expense) or Interest expense in the Consolidated Statements of Earnings. The offsetting loss or gain on the hedged item attributable to the hedged risk is included in Other income/(expense) or Interest expense in the Consolidated Statements of Earnings. Any excluded components are included in the Consolidated Statements of Comprehensive Income.
Unrealized gain/(loss) on derivative
Unrealized gain/(loss) on hedged item
(51
Realized gain/(loss) on derivative
Realized gain/(loss) on hedged item
(23
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income
The following table presents the effect of cash flow hedges and fair value hedges on our consolidated earnings and comprehensive income, before the effect of income taxes:
Amount of unrealized gain/(loss) recognized in OCI
Cash flow hedges
Fair value hedges
Amount of (income)/loss reclassified from AOCI to earnings
Foreign exchange contracts¹
Interest rate contracts²
We estimate that a gain of $5 million from AOCI related to open cash flow hedges will be reclassified to earnings in the next 12 months. Actual amounts reclassified to earnings depend on the foreign exchange rates, interest rates and commodity prices in effect when derivative contracts that are currently outstanding mature. For all forecasted transactions, the maximum term over which we are hedging exposures to the variability of cash flows is two years as at June 30, 2026.
Non-Qualifying Derivatives
The following table presents the unrealized gains and losses associated with changes in the fair value of our non-qualifying derivatives:
Foreign exchange contracts1
1,195
(633
1,233
Interest rate contracts2
Commodity contracts3
673
129
126
Other contracts4
Total unrealized derivative fair value gain/(loss), net
500
1,232
1,316
LIQUIDITY RISK
Liquidity risk is the risk that we will not be able to meet our financial obligations, including commitments and guarantees, as they become due. In order to mitigate this risk, we forecast cash requirements over a 12-month rolling time period to determine whether sufficient funds will be available. Our primary sources of liquidity and capital resources are funds generated from operations, the issuance of commercial paper and draws under committed credit facilities, and long-term debt, which includes medium-term notes. Our shelf prospectuses with securities regulators enable ready access to either the Canadian or US public capital markets, subject to market conditions. In addition, we maintain significant liquidity through committed credit facilities with a diversified group of banks and institutions which enables us to fund all anticipated requirements through extended periods of market disruptions without accessing the capital markets. We were in compliance with all the terms and conditions of our committed credit facility agreements and term debt indentures as at June 30, 2026. As a result, all credit facilities are available to us and the banks are obligated to fund us under the terms of the facilities. We also identify other potential sources of debt and equity funding alternatives, including reinstatement of our dividend reinvestment and share purchase plan or at-the-market equity issuances.
CREDIT RISK
Entering into derivative instruments may result in exposure to credit risk from the possibility that a counterparty will default on its contractual obligations. In order to mitigate this risk, we enter into risk management transactions primarily with institutions that possess strong investment grade credit ratings. Credit risk relating to derivative counterparties is mitigated through the maintenance and monitoring of credit exposure limits, contractual requirements and netting arrangements. We also review counterparty financial strength using external credit rating services and other analytical tools to manage credit risk.
We have credit concentrations and credit exposure, with respect to derivative instruments, in the following counterparty segments:
Canadian financial institutions
207
200
US financial institutions
665
260
European financial institutions
57
Asian financial institutions
Other1
340
1,376
858
As at June 30, 2026, we did not provide any letters of credit in lieu of providing cash collateral to our counterparties pursuant to the terms of the relevant ISDA agreements. We held no cash collateral on derivative asset exposures as at June 30, 2026 and December 31, 2025.
Gross derivative balances have been presented without the effects of collateral posted. Derivative assets are adjusted for non-performance risk of our counterparties using their credit default swap spread rates and are reflected at fair value. For derivative liabilities, our non-performance risk is considered in the valuation.
Credit risk also arises from trade and other long-term receivables, and is mitigated through credit exposure limits and contractual requirements, the assessment of counterparty credit ratings and netting arrangements. Within the Gas Distribution and Storage segment, credit risk is mitigated by the utilities' large and diversified customer base and the ability to recover expected credit losses through the ratemaking process. We actively monitor the financial strength of large industrial customers and, in select cases, have obtained additional security to minimize the risk of default on receivables. Generally, we utilize a loss allowance matrix which contemplates historical credit losses by age of receivables, adjusted for any forward-looking information and management expectations to measure lifetime expected credit losses of receivables. The maximum exposure to credit risk related to non-derivative financial assets is their carrying value.
FAIR VALUE MEASUREMENTS
Our financial assets and liabilities measured at fair value on a recurring basis include derivatives and other financial instruments. We also disclose the fair value of other financial instruments not measured at fair value. The fair value of financial instruments reflects our best estimates of market value based on generally accepted valuation techniques or models and is supported by observable market prices and rates. When such values are not available, we use discounted cash flow analysis from applicable yield curves based on observable market inputs to estimate fair value.
FAIR VALUE OF FINANCIAL INSTRUMENTS
We categorize our financial instruments measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement.
Level 1
Level 1 includes financial instruments measured at fair value based on unadjusted quoted prices for identical assets and liabilities in active markets that are accessible at the measurement date. An active market for a financial instrument is considered to be a market where transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Under the fair value hierarchy, cash and cash equivalents are classified as Level 1. Our Level 1 instruments consist primarily of exchange-traded derivatives used to mitigate the risk of crude oil price fluctuations and US and Canadian treasury bills. We also hold restricted long-term investments in exchange-traded funds and common shares in trusts in accordance with the regulatory requirements of the Canada Energy Regulator (CER) under the Land Matters Consultation Initiative (LMCI), to cover future pipeline decommissioning costs in the state of Minnesota and to satisfy retirement obligations as Wexpro properties are abandoned.
Level 2
Level 2 includes financial instrument valuations determined using directly or indirectly observable inputs other than quoted prices included within Level 1. Financial instruments in this category are valued using models or other industry standard valuation techniques derived from observable market data. Such valuation techniques include inputs such as quoted forward prices, time value, volatility factors and broker quotes that can be observed or corroborated in the market for the entire duration of the financial instrument. Derivatives valued using Level 2 inputs include non-exchange-traded derivatives such as over-the-counter foreign exchange forward and cross-currency swap contracts, interest rate swaps, physical forward commodity contracts, as well as commodity swaps and options for which observable inputs can be obtained.
We have also categorized the fair value of our long-term debt, investments in debt securities held by our captive insurance subsidiary, and restricted long-term investments in Canadian government bonds held in trust in accordance with the CER's regulatory requirements under the LMCI as Level 2. The fair value of our long-term debt is based on quoted market prices for instruments of similar credit risk and tenor. When possible, the fair value of our restricted long-term investments is based on quoted market prices for similar instruments and, if not available, based on broker quotes.
Level 3
Level 3 includes derivative valuations based on inputs which are less observable, unavailable or where the observable data does not support a significant portion of the derivative's fair value. Generally, Level 3 derivatives are longer dated transactions, occur in less active markets, occur at locations where pricing information is not available or have no binding broker quote to support Level 2 classification. We have developed methodologies, benchmarked against industry standards, to determine fair value for these derivatives based on the extrapolation of observable future prices and rates. Derivatives valued using Level 3 inputs primarily include long-dated derivative power, NGL and natural gas contracts, basis swaps, commodity swaps, and power and energy swaps, physical forward commodity contracts, as well as options. We do not have any other financial instruments categorized in Level 3.
We use the most observable inputs available to estimate the fair value of our derivatives. When possible, we estimate the fair value of our derivatives based on quoted market prices. If quoted market prices are not available, we use estimates from third-party brokers. For non-exchange-traded derivatives classified in Levels 2 and 3, we use standard valuation techniques to calculate the estimated fair value. These methods include discounted cash flows for forwards and swaps and Black-Scholes-Merton pricing models for options. Depending on the type of derivative and nature of the underlying risk, we use observable market prices (interest, foreign exchange, commodity and share price) and volatility as primary inputs to these valuation techniques. Finally, we consider our own credit default swap spread, as well as the credit default swap spreads associated with our counterparties, in our estimation of fair value.
Fair Value of Derivatives
We have categorized our derivative assets and liabilities measured at fair value as follows:
Total GrossDerivativeInstruments
Financial assets
Current derivative assets
401
463
Long-term derivative assets
78
Financial liabilities
Current derivative liabilities
(276
(285
(745
Long-term derivative liabilities
(77
(1,327
Total net financial asset/(liability)
123
179
59
329
176
(177
(480
(81
(914
(1,026
The significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments were as follows:
FairValue
UnobservableInput
MinimumPrice/Volatility
MaximumPrice/Volatility
Weighted Average Price/Volatility
Unit ofMeasurement
(fair value in millions of Canadian dollars)
Commodity contracts - financial¹
Natural gas
Forward gas price
3.43
8.88
4.56
$/mmbtu2
Crude
35
Forward crude price
137.30
168.02
160.84
$/barrel
Power
Forward power price
26.62
224.19
84.50
$/MW/H
Commodity contracts - physical¹
0.84
15.90
4.36
57.68
146.65
97.27
39.16
417.94
89.74
Commodity options3
3.50
13.81
7.83
Price volatility
11%
74%
53%
If adjusted, the significant unobservable inputs disclosed in the table above would have a direct impact on the fair value of our Level 3 derivative instruments. The significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments include forward commodity prices. Changes in forward commodity prices could result in significantly different fair values for our Level 3 derivatives.
Changes in the net fair value of derivative assets and liabilities classified as Level 3 in the fair value hierarchy were as follows:
Level 3 net derivative asset/(liability) at beginning of period
Total gain/(loss), unrealized
Included in earnings¹
Included in OCI
Included in regulatory assets/liabilities
(132
Settlements
160
Level 3 net derivative asset at end of period
There were no transfers into or out of Level 3 as at June 30, 2026 or December 31, 2025.
Net Investment Hedges
We currently have designated a portion of our US dollar-denominated debt as a hedge of our net investment in US dollar-denominated investments and subsidiaries.
During the six months ended June 30, 2026 and 2025, we recognized unrealized foreign exchange losses of $495 million and gains of $494 million, respectively, on the translation of US dollar-denominated debt, in OCI. During the six months ended June 30, 2026 and 2025, we recognized realized losses of nil and $81 million, respectively, associated with the settlement of US dollar-denominated debt that had matured during the period, in OCI.
Fair Value of Other Financial Instruments
Certain long-term investments in other entities with no actively quoted prices are classified as Fair Value Measurement Alternative (FVMA) investments and are recorded at cost less impairment. The carrying value of FVMA investments totaled $190 million and $185 million as at June 30, 2026 and December 31, 2025, respectively.
We have restricted long-term investments and cash held in trust for the purpose of funding pipeline abandonment in accordance with the CER's regulatory requirements under the LMCI, to cover future pipeline decommissioning costs in the state of Minnesota and to satisfy retirement obligations as Wexpro properties are abandoned. Information regarding these investments is as follows:
Fair value
877
453
416
Total fair value1
Cost
819
744
456
426
Total cost
1,275
1,170
Unrealized holding gains
96
85
During the six months ended June 30, 2026, we purchased and sold investments totaling $202 million and $103 million, respectively (2025 - purchases of $892 million and sales of $801 million). The resulting net cash flow impact is presented under Cash Flows from Investing Activities in the Consolidated Statements of Cash Flows.
We have a wholly-owned captive insurance subsidiary whose principal activity is providing insurance and reinsurance coverage for certain insurable property and casualty risk exposures of our operating subsidiaries and certain equity investments. As at June 30, 2026, our investments in debt securities held by our captive insurance subsidiary had a fair value of $1.3 billion (December 31, 2025 - $1.2 billion) and cost of $1.3 billion (December 31, 2025 - $1.2 billion). These investments in debt securities are recognized at fair value, classified as Level 2 in the fair value hierarchy, and are recorded in Long-term investments in the Consolidated Statements of Financial Position. There were unrealized holding gains of $2 million and losses of $18 million for the three and six months ended June 30, 2026, respectively (2025 - gains of $1 million and $1 million, respectively).
As at June 30, 2026, the maturities for our investments in debt securities were as follows:
Less than1 year
5 years
10 years
Fair value of debt securities
1,300
98
890
251
As at June 30, 2026 and December 31, 2025, our long-term debt, including finance lease liabilities, had a carrying value before debt issuance costs of $111.0 billion and $104.4 billion, respectively, and a fair value of $110.4 billion and $102.7 billion, respectively.
The fair value of financial assets and liabilities other than derivative instruments, certain long-term investments in other entities, restricted long-term investments, investments held by our captive insurance subsidiary and long-term debt described above approximate their carrying value due to the short period to maturity.
9. INCOME TAXES
The effective income tax rates for the three months ended June 30, 2026 and 2025 were 22.0% and 22.3%, respectively, and for the six months ended June 30, 2026 and 2025 were 23.5% and 22.1%, respectively.
The period-over-period changes in the effective income tax rates are due to higher US minimum tax, the absence of US investment tax credits in 2026, and the effects of rate-regulated accounting for income taxes, mainly driven by the Reaccelerated Investment Incentive Property rules enacted in March 2026 as part of Bill C-15 (45-1), Budget Implementation Act, No. 1, relative to lower earnings over the comparative periods.
10. OTHER INCOME/(EXPENSE)
Realized foreign currency loss
(67
(104
(286
Unrealized foreign currency gain/(loss)
(201
1,194
(638
1,249
Net defined pension and OPEB credit
72
138
144
354
382
11. CONTINGENCIES
LITIGATION
We and our subsidiaries are subject to various legal and regulatory actions and proceedings which arise in the normal course of business, including interventions in regulatory proceedings and challenges to regulatory approvals and permits. While the final outcome of such actions and proceedings cannot be predicted with certainty, management believes that the resolution of such actions and proceedings will not have a material impact on our interim consolidated financial position or results of operations.
INSURANCE
We maintain an insurance program for us, our subsidiaries and certain of our affiliates to mitigate a certain portion of our risks. However, not all risks are insurable, or are insured by us. We self-insure a significant portion of certain risks through our wholly-owned captive insurance subsidiary, which requires certain assumptions and management judgment regarding the frequency and severity of claims, claim development and settlement practices and the selection of estimated loss among estimates derived using different methods. Our insurance coverage is also subject to terms and conditions, exclusions and large deductibles or self-insured retentions which may reduce or eliminate coverage in certain circumstances.
Our insurance policies are generally renewed annually, and premiums, terms, policy limits and/or deductibles can vary substantially based on factors like market conditions. We can give no assurance that we will be able to maintain adequate insurance in the future at rates or on other terms we consider commercially reasonable. In such a case, we may decide to self-insure additional risks.
In the unlikely event multiple insurable incidents occur which exceed coverage limits within the same insurance period, the total insurance coverage will be allocated among entities on an equitable basis based on an insurance allocation agreement we have entered into with us and other subsidiaries.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
INTRODUCTION
The following discussion and analysis of our financial condition and results of operations is based on and should be read in conjunction with our interim consolidated financial statements and the accompanying notes included in Part I. Item 1. Financial Statements of this quarterly report on Form 10-Q and our consolidated financial statements and the accompanying notes included in Part II. Item 8. Financial Statements and Supplementary Data of our annual report on Form 10-K for the year ended December 31, 2025.
We continue to qualify as a foreign private issuer for purposes of the United States Securities Exchange Act of 1934, as amended (Exchange Act), as determined annually as of the end of our second fiscal quarter. We intend to continue to file annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K with the United States (US) Securities and Exchange Commission (SEC) instead of filing the reporting forms available to foreign private issuers. We also intend to maintain our Form S-3 registration statements.
RECENT DEVELOPMENTS
GAS TRANSMISSION RATE PROCEEDINGS
East Tennessee Natural Gas, LLC (East Tennessee) filed a rate case on April 29, 2025. On May 29, 2025, the Federal Energy Regulatory Commission (FERC) issued an order accepting and suspending tariff records, subject to refund, conditions, and establishing hearing procedures. In compliance with the order, East Tennessee made a filing to implement the rates to be effective November 1, 2025, subject to refund. On April 23, 2026, East Tennessee reached a settlement in principle with all parties in the proceeding. On May 29, 2026, East Tennessee filed the settlement agreement for the FERC’s review and approval.
Vector
Vector Pipeline L.P. (Vector) filed a rate case on May 30, 2025 and a settlement in principle was reached with all active participants in February 2026. The Stipulation and Agreement was approved by the FERC on May 26, 2026 with rates effective April 1, 2026.
GAS DISTRIBUTION AND STORAGE RATE APPLICATIONS
In relation to Enbridge Gas Inc. (Enbridge Gas Ontario)'s application with the Ontario Energy Board (OEB) to establish a 2024-2028 Incentive Regulation rate setting framework, undertaken in three phases, Enbridge Gas Ontario continues to appeal the OEB's Phase 1 findings on depreciation, equity thickness, and undepreciated capital through Ontario courts. The Phase 1 judicial review and appeal hearing took place in the second quarter of 2026, and a decision is expected before the end of the year.
In March 2026, the OEB issued a decision approving the settlement proposal for Phase 3 of Enbridge Gas Ontario's application, which addressed cost allocation and the harmonization of rates, rate classes, and services. The remaining non-ratemaking Phase 3 matters are being addressed through a written hearing process, with a decision expected in 2026. The implementation of Phase 3, which is anticipated to occur in 2027, is not expected to impact earnings.
FINANCING UPDATE
In February 2026, we closed a three-tranche offering consisting of five, ten and thirty-year medium-term notes, for an aggregate principal amount of $2.0 billion, which mature in February 2031, 2036, and 2056, respectively.
In March 2026, we closed a two-tranche offering consisting of five and ten-year senior notes for an aggregate principal amount of US$2.0 billion, which mature in March 2031 and 2036, respectively.
On May 11, 2026, Enbridge Pipelines Inc. (EPI) redeemed, at par, all of the outstanding $400 million 3.00% medium-term notes that carried an original maturity date in August 2026.
On June 16, 2026, we completed an exchange of all outstanding series of EPI medium-term notes (EPI Notes) for an equal principal amount of newly issued medium-term notes of Enbridge Inc. (Enbridge Notes), with financial terms identical to those of the EPI Notes (the Note Exchange Transaction) and which are unconditionally guaranteed by Spectra Energy Partners, LP (SEP) and Enbridge Energy Partners, L.P (EEP).
These financing activities, in combination with the financing activities executed in 2025, are expected to provide sufficient liquidity to enable us to fund our current portfolio of capital projects and other operating working capital requirements through potential periods of extended market disruption without requiring access to the capital markets, should market access be restricted or pricing be unattractive. Refer to Liquidity and Capital Resources.
RESULTS OF OPERATIONS
(millions of Canadian dollars, except per share amounts)
Segment earnings/(loss) before interest, income taxes and depreciation and amortization1
Earnings before interest, income taxes and depreciation and amortization1
4,836
5,559
9,856
11,488
Earnings per common share attributable to common shareholders
Diluted earnings per common share attributable to common shareholders
EARNINGS ATTRIBUTABLE TO COMMON SHAREHOLDERS
Three months ended June 30, 2026, compared with the three months ended June 30, 2025
Earnings attributable to common shareholders were negatively impacted by $745 million due to certain infrequent or other non-operating factors, primarily explained by a non-cash, net unrealized derivative fair value gain of $308 million ($232 million after-tax) in 2026, compared with a net unrealized gain of $1.4 billion ($1.0 billion after-tax) in 2025, reflecting changes in the mark-to-market value of derivative financial instruments used to manage foreign exchange, interest rate and commodity price risks.
The non-cash, unrealized derivative fair value gains and losses discussed above generally arise as a result of our comprehensive economic hedging program to mitigate foreign exchange, interest rate and commodity price risks. This program creates volatility in reported short-term earnings through the recognition of unrealized non-cash gains and losses on derivative instruments used to hedge these risks. Over the long-term, we believe our hedging program supports the reliable cash flows and dividend growth upon which our investor value proposition is based.
After taking into consideration the factors above, the remaining $36 million decrease in earnings attributable to common shareholders is primarily explained by:
Six months ended June 30, 2026, compared with the six months ended June 30, 2025
Earnings attributable to common shareholders were negatively impacted by $1.2 billion due to certain infrequent or other non-operating factors, primarily explained by:
After taking into consideration the factors above, the remaining $148 million decrease in earnings attributable to common shareholders is primarily explained by:
BUSINESS SEGMENTS
LIQUIDS PIPELINES
EBITDA was positively impacted by $287 million due to certain infrequent or other non-operating factors, primarily explained by:
After taking into consideration the factors above, the remaining $5 million increase is primarily explained by the following significant business factors:
EBITDA was negatively impacted by $31 million due to certain infrequent or other non-operating factors, primarily explained by:
After taking into consideration the factors above, the remaining $313 million decrease is primarily explained by the following significant business factors:
GAS TRANSMISSION
EBITDA was negatively impacted by $46 million due to certain infrequent or other non-operating factors primarily explained by a non-cash, net unrealized gain of $17 million in 2026, compared with a net unrealized gain of $40 million in 2025, reflecting net fair value gains and losses arising from changes in the mark-to-market value of derivative financial instruments used to manage commodity price risks.
After taking into consideration the factors above, the remaining $37 million increase is primarily explained by the following significant business factors:
Six months ended June 30, 2026 compared with the six months ended June 30, 2025
EBITDA was negatively impacted by $28 million due to certain infrequent or other non-operating factors primarily explained by the following:
After taking into consideration the factors above, the remaining $116 million increase is primarily explained by the following significant business factors:
GAS DISTRIBUTION AND STORAGE
EBITDA was positively impacted by $330 million due to the absence in 2026 of an impairment of certain rate-regulated assets in 2025 related to Enbridge Gas Ohio's rate case.
The remaining $38 million increase is primarily explained by higher base rates for Enbridge Gas Utah due to recent rate cases.
The remaining $147 million increase is primarily explained by the following significant business factors:
RENEWABLE POWER GENERATION
EBITDA was comparable period-over-period.
EBITDA was negatively impacted by $26 million, primarily explained by the following significant business factors:
ELIMINATIONS AND OTHER
Earnings/(loss) before interest, income taxes and depreciation and amortization
Eliminations and Other includes operating and administrative costs that are not allocated to business segments, and the impact of foreign exchange hedge settlements and the activities of our wholly-owned captive insurance subsidiary. Eliminations and Other also includes our natural gas and power marketing businesses and the impact of new business development activities and corporate investments.
EBITDA was negatively impacted by $1.4 billion due to certain infrequent or non-operating factors, primarily explained by a non-cash, net unrealized loss of $173 million in 2026, compared with a net unrealized gain of $1.3 billion in 2025, reflecting changes in the mark-to-market value of derivative financial instruments used to manage foreign exchange and commodity price risks.
After taking into consideration the non-operating factor above, the remaining $41 million increase in EBITDA is primarily explained by lower realized foreign exchange losses on hedge settlements in 2026.
EBITDA was negatively impacted by $2.0 billion due to certain infrequent or non-operating factors, primarily explained by a non-cash, net unrealized loss of $612 million in 2026, compared with a net unrealized gain of $1.4 billion in 2025, reflecting changes in the mark-to-market value of derivative financial instruments used to manage foreign exchange and commodity price risks.
After taking into consideration the non-operating factor above, the remaining $192 million increase in EBITDA is primarily explained by lower realized foreign exchange losses on hedge settlements in 2026.
GROWTH PROJECTS - COMMERCIALLY SECURED PROJECTS
The following table summarizes the status of our material commercially secured projects, organized by business segment:
Enbridge'sOwnershipInterest
EstimatedCapitalCost1
Expendituresto Date2
Status2
ExpectedIn-ServiceDate
(Canadian dollars, unless stated otherwise)
Mainline Optimization
Pre-
1.
Phase 1
100%
US$1.4 billion
US$143 million
construction
No significant
Southern Illinois
expenditures to
2.
Connector
100%3
US$0.5 billion
date
3.
Pelican CO2 Hub
50%
US$0.3 billion
4.
Modernization
US$0.4 billion
US$334 million
Various stages
T-North Expansion
Under
5.
(Aspen Point)
100%4
$1.2 billion
$1.0 billion
6.
Tennessee Ridgeline Expansion
US$1.0 billion
Under construction
7.
Woodfibre LNG5
30%
US$2.9 billion
US$1.8 billion
8.
T-South Expansion (Sunrise)
$4.0 billion
$860 million
9.
(Birch Grove)
$0.4 billion
$32 million
10.
Canyon System Pipelines
US$259 million
Pre-construction
Algonquin Gas
Transmission
11.
Enhancement
USGC Storage Growth
12.
Program
US$0.8 billion
2028 - 2033
13.
Moriah Energy Center6
US$0.6 billion
US$409 million
14.
T-15 Reliability Project6,7
US$0.7 billion
US$181 million
2027 - 2028
15.
Sequoia Solar
US$1.1 billion
16.
Clear Fork Solar
US$0.9 billion
US$361 million
17.
Easter
US$180 million
2026 - 2027
18.
Cowboy Phase 1
US$1.2 billion
US$128 million
19.
Cone
US$58 million
Courseulles
$468 million
20.
Offshore Wind8
21.7%
(€0.6 billion)
(€315 million)
A full description of each of our material projects is provided in our annual report on Form 10-K for the year ended December 31, 2025. Material updates that have occurred since the date of filing of our Form 10-K are discussed below.
OTHER ANNOUNCED PROJECTS UNDER DEVELOPMENT
Line 5 Relocation Project
During the quarter, we sanctioned and began construction on the Line 5 Relocation Project in Wisconsin, which involves a 41-mile re-route of the existing pipeline system. Upon entering service, Recoverable Line 5 Capital will be added to the Mainline System's rate base. All key state and federal permits have been secured, including right-of-way agreements and the US Army Corps of Engineers (Army Corps) Clean Water Act permit. The project is expected to cost approximately US$1.0 billion and is targeted to enter service in early 2027. Refer to Legal and Other Updates for more information on this project.
LIQUIDITY AND CAPITAL RESOURCES
The maintenance of financial strength and flexibility is fundamental to our growth strategy, particularly in light of the significant number and size of capital projects currently secured or under development. Access to timely funding from capital markets could be limited by factors outside our control, including but not limited to, financial market volatility resulting from economic and political events both inside and outside North America. To mitigate such risks, we actively manage financial plans and strategies to help ensure we maintain sufficient liquidity to meet routine operating and future capital requirements.
In the near term, we generally expect to utilize cash from operations together with commercial paper issuances and/or credit facility draws and the proceeds of capital market offerings to fund liabilities as they become due, finance capital expenditures and acquisitions and fund debt retirements. We seek to maintain significant liquidity through access to committed credit facilities with a diversified group of banks and financial institutions to enable us to fund all anticipated requirements through periods of extended market disruptions without accessing the capital markets.
We have signed contracts committing to the purchase of services, pipe and other materials totaling approximately $6.3 billion, which are expected to be paid over the next five years.
Our financing plan is regularly updated to reflect evolving capital requirements and financial market conditions and identifies a variety of potential sources of debt and equity funding alternatives.
CAPITAL MARKET ACCESS
We enable access to capital markets, subject to market conditions, through maintenance of shelf prospectuses in the US and Canada that allow for issuances of long-term debt, equity and other forms of long-term capital when market conditions are attractive.
Credit Facilities and Liquidity
To ensure ongoing liquidity and to mitigate the risk of capital market disruption, we maintain access to funds through committed bank credit facilities and actively manage our bank funding sources to optimize pricing and other terms. The following table provides details of our committed credit facilities as at June 30, 2026:
As at June 30, 2026, our net available liquidity totaled $10.9 billion (December 31, 2025 - $10.8 billion), consisting of available credit facilities of $8.9 billion (December 31, 2025 - $9.7 billion) and unrestricted cash and cash equivalents of $2.0 billion (December 31, 2025 - $1.1 billion) as reported in the Consolidated Statements of Financial Position.
Our credit facility agreements and term debt indentures include standard events of default and covenant provisions whereby accelerated repayment and/or termination of the agreements may result if we were to default on payment or violate certain covenants. As at June 30, 2026, we were in compliance with all such debt covenant provisions.
Cash flow growth, ready access to liquidity from diversified sources and a stable business model have enabled us to manage our credit profile. We actively monitor and manage key financial metrics with the objective of sustaining investment grade credit ratings from the major credit rating agencies and ongoing access to bank funding and term debt capital on attractive terms. Key measures of financial strength that are closely managed include the ability to service debt obligations from operating cash flow and the ratio of debt to EBITDA.
There are no material restrictions on our cash. Total Restricted cash of $58 million, as reported in the Consolidated Statements of Financial Position, primarily includes reinsurance security, cash collateral, future pipeline abandonment costs collected and held in trust, amounts received in respect of specific shipper commitments and capital projects. Cash and cash equivalents held by certain subsidiaries may not be readily accessible for alternative uses by us.
Excluding current maturities of long-term debt, as at June 30, 2026 and December 31, 2025, we had negative working capital positions of $146 million and $2.8 billion, respectively. During both the six months ended June 30, 2026, and the year ended December 31, 2025, the major contributing factor to the negative working capital position was the current liabilities associated with our growth capital program.
SOURCES AND USES OF CASH
Significant sources and uses of cash for the six months ended June 30, 2026 and 2025 are summarized below:
Operating Activities
The primary factors impacting cash provided by operating activities period-over-period include changes in our operating assets and liabilities in the normal course due to various factors, including the impact of fluctuations in commodity prices and activity levels on working capital within our business segments, the timing of tax payments and cash receipts and payments generally. Cash provided by operating activities is also impacted by changes in earnings and certain infrequent or other non-operating factors, as discussed in Results of Operations, as well as Distributions from equity investments.
Investing Activities
Cash used in investing activities includes capital expenditures to execute our capital program, which is further described in Growth Projects - Commercially Secured Projects. The timing of project approval, construction and in-service dates impacts the timing of cash requirements. Cash used in investing activities is also impacted by acquisitions, dispositions and changes in contributions to, and distributions from, our equity investments. The increase in cash used in investing activities period-over-period was primarily due to higher capital expenditures, partially offset by a decrease in contributions to equity investments.
Financing Activities
Cash provided by financing activities primarily relates to issuances and repayments of external debt, as well as transactions with our common and preference shareholders relating to dividends, share issuances, and share redemptions. Cash provided by financing activities is also impacted by changes in distributions to, and contributions from, noncontrolling interests and redeemable noncontrolling interest. The increase in cash provided by financing activities period-over-period was primarily due to:
SUMMARIZED FINANCIAL INFORMATION
On January 22, 2019, Enbridge entered into supplemental indentures with its wholly-owned subsidiaries, SEP and EEP (together, the Partnerships), pursuant to which Enbridge fully and unconditionally guaranteed, on a senior unsecured basis, the payment obligations of the Partnerships with respect to the outstanding series of notes issued under the respective indentures of the Partnerships. Concurrently, the Partnerships entered into a subsidiary guarantee agreement pursuant to which they fully and unconditionally guaranteed, on a senior unsecured basis, the outstanding series of senior notes of Enbridge. The Partnerships have also entered into supplemental indentures with Enbridge pursuant to which the Partnerships have issued full and unconditional guarantees, on a senior unsecured basis, of senior notes issued by Enbridge subsequent to January 22, 2019. On June 16, 2026, all outstanding series of EPI Notes were exchanged for an equal principal amount of newly issued Enbridge Notes, with financial terms identical to those of the EPI Notes and which are unconditionally guaranteed by the Partnerships. As a result of the guarantees, holders of any of the outstanding guaranteed notes of the Partnerships (the Guaranteed Partnership Notes) are in the same position with respect to the net assets, income and cash flows of Enbridge as holders of Enbridge's outstanding guaranteed notes (the Guaranteed Enbridge Notes), and vice versa. Other than the Partnerships, Enbridge subsidiaries (including the subsidiaries of the Partnerships, collectively, the Subsidiary Non-Guarantors), are not parties to the subsidiary guarantee agreement and have not otherwise guaranteed any of Enbridge's outstanding series of notes.
Consenting SEP notes and EEP notes under Guarantees
SEP Notes1
EEP Notes2
3.38% Senior Notes due 2026
5.95% Notes due 2033
5.95% Senior Notes due 2043
6.30% Notes due 2034
4.50% Senior Notes due 2045
7.50% Notes due 2038
5.50% Notes due 2040
7.38% Notes due 2045
Enbridge Notes under Guarantees
USD Denominated1
CAD Denominated2
1.60% Senior Notes due 2026
3.20% Senior Notes due 2027
5.90% Senior Notes due 2026
5.70% Senior Notes due 2027
4.25% Senior Notes due 2026
6.55% Senior Notes due 2027
5.25% Senior Notes due 2027
3.55% Senior Notes due 2028
3.70% Senior Notes due 2027
4.90% Senior Notes due 2028
4.60% Senior Notes due 2028
6.10% Senior Notes due 2028
6.00% Senior Notes due 2028
Floating Rate Senior Notes due 2028
4.20% Senior Notes due 2028
6.05% Senior Notes due 2029
5.30% Senior Notes due 2029
3.52% Senior Notes due 2029
3.13% Senior Notes due 2029
6.50% Senior Notes due 2029
4.90% Senior Notes due 2030
2.99% Senior Notes due 2029
6.20% Senior Notes due 2030
4.21% Senior Notes due 2030
4.50% Senior Notes due 2031
3.90% Senior Notes due 2030
4.85% Senior Notes due 2031
7.22% Senior Notes due 2030
5.70% Sustainability-Linked Senior Notes due 2033
3.57% Senior Notes due 2031
2.50% Sustainability-Linked Senior Notes due 2033
2.82% Senior Notes due 2031
5.63% Senior Notes due 2034
7.20% Senior Notes due 2032
5.55% Senior Notes due 2035
6.10% Sustainability-Linked Senior Notes due 2032
5.20% Senior Notes due 2035
5.36% Sustainability-Linked Senior Notes due 2033
5.45% Senior Notes due 2036
3.10% Sustainability-Linked Senior Notes due 2033
4.50% Senior Notes due 2044
4.73% Senior Notes due 2034
5.50% Senior Notes due 2046
4.56% Senior Notes due 2035
4.00% Senior Notes due 2049
5.57% Senior Notes due 2035
3.40% Senior Notes due 2051
4.35% Senior Notes due 2036
6.70% Senior Notes due 2053
5.08% Senior Notes due 2036
5.95% Senior Notes due 2054
5.75% Senior Notes due 2039
5.35% Senior Notes due 2039
5.33% Senior Notes due 2040
5.12% Senior Notes due 2040
4.24% Senior Notes due 2042
4.55% Senior Notes due 2043
4.57% Senior Notes due 2044
4.87% Senior Notes due 2044
4.55% Senior Notes due 2045
4.13% Senior Notes due 2046
4.33% Senior Notes due 2049
4.20% Senior Notes due 2051
4.10% Senior Notes due 2051
6.51% Senior Notes due 2052
5.76% Senior Notes due 2053
5.82% Senior Notes due 2053
5.32% Senior Notes due 2054
5.10% Senior Notes due 2056
4.56% Senior Notes due 2064
Rules 3-10 and 13-01 of the US SEC Regulation S-X, together with Exchange Act Rule 12h-5, provide an exemption from the reporting requirements of the Exchange Act for fully consolidated subsidiary issuers of guaranteed securities and subsidiary guarantors and allow for summarized financial information in lieu of filing separate financial statements for each of the Partnerships.
The following Summarized Combined Statement of Earnings and Summarized Combined Statements of Financial Position combine the balances of SEP, EEP and Enbridge.
Summarized Combined Statement of Earnings
Operating loss
(63
688
476
Summarized Combined Statements of Financial Position
391
4,092
3,873
Short-term loans receivable from affiliates
4,266
6,239
421
467
Long-term loans receivable from affiliates
53,535
46,858
Other long-term assets
2,320
1,994
1,887
2,079
Short-term loans payable to affiliates
2,568
2,082
406
537
7,684
6,990
Long-term loans payable to affiliates
33,210
34,488
75,911
67,004
The Guaranteed Enbridge Notes and the Guaranteed Partnership Notes are structurally subordinated to the indebtedness of the Subsidiary Non-Guarantors in respect of the assets of those Subsidiary Non-Guarantors.
Under US bankruptcy law and comparable provisions of state fraudulent transfer laws, a guarantee can be voided, or claims may be subordinated to all other debts of that guarantor if, among other things, the guarantor, at the time the indebtedness evidenced by its guarantee or, in some states, when payments become due under the guarantee:
The guarantees of the Guaranteed Enbridge Notes contain provisions to limit the maximum amount of liability that the Partnerships could incur without causing the incurrence of obligations under the guarantee to be a fraudulent conveyance or fraudulent transfer under US federal or state law.
Each of the Partnerships is entitled to a right of contribution from the other Partnership for 50% of all payments, damages and expenses incurred by that Partnership in discharging its obligations under the guarantees for the Guaranteed Enbridge Notes.
47
Under the terms of the guarantee agreement and applicable supplemental indentures, the guarantees of either of the Partnerships of any Guaranteed Enbridge Notes will be unconditionally released and discharged automatically upon the occurrence of any of the following events:
The guarantee obligations of Enbridge will terminate with respect to any series of Guaranteed Partnership Notes if that series is discharged or defeased.
The Partnerships also guarantee the obligations of Enbridge under its existing credit facilities.
LEGAL AND OTHER UPDATES
LINE 5 EASEMENT - BAD RIVER BAND
This is a federal lawsuit in the US District Court for the Western District of Wisconsin (the Court) brought by the Bad River Band of the Lake Superior Tribe of Chippewa Indians of the Bad River Reservation (the Band) against Enbridge and certain of its pipeline subsidiaries. The case concerns Enbridge’s continued operation of Line 5 across the Bad River Reservation after certain easements expired in 2013.
The Band asserts claims in trespass and public nuisance and seeks ejectment (removal of the pipeline), along with monetary compensation for past and ongoing use of Reservation lands. Enbridge disputes the trespass finding, the availability of shutdown and removal remedies and asserts, among other things, that federal pipeline safety law preempts such relief, that continued operations do not present an imminent threat, and that treaty and foreign affairs considerations limit the remedies available.
In September 2022, the Court issued summary-judgment rulings that resolved several claims and determined that Enbridge was trespassing on certain Reservation parcels, while declining to order an immediate shutdown or removal of the pipeline. A bench trial was held in October 2022 on the remaining issues, including nuisance, injunctive relief, and the appropriate monetary remedy for trespass.
In June 2023, the Court issued a final order awarding US$5.1 million as compensation for past trespass, requiring ongoing quarterly payments while Line 5 operates without valid rights-of-way, imposing monitoring and shutdown requirements, and ordering Line 5 to cease operating on any parcel lacking a valid right-of-way by June 16, 2026. The Court stayed the shutdown order pending the appellate decision.
Enbridge and the Band have filed a consolidated appeal and cross-appeal in the US Court of Appeals for the Seventh Circuit (Seventh Circuit) addressing liability and remedies. Upon request by the Seventh Circuit, the US Government filed a brief in the appeal as amicus curiae to address the effect of the 1977 Transit Pipelines Treaty. The Seventh Circuit issued its decision on July 30, 2026, dismissing the public nuisance claim, affirming Enbridge is in trespass, and remanding all remedies to the US District Court. Refer to Other Announced Projects under Development for more information on the Line 5 relocation project.
DAKOTA ACCESS PIPELINE
We hold an effective 27.6% interest in the Bakken Pipeline System, which includes the Dakota Access Pipeline (DAPL). The Standing Rock Sioux Tribe and the Cheyenne River Sioux Tribe filed lawsuits in 2016 with the US Court for the District of Columbia (the District Court) challenging the Army Corps' easement for DAPL, citing concerns over the adequacy of the Army Corps' environmental review and tribal consultation process. The Oglala Sioux and Yankton Sioux Tribes also filed lawsuits alleging similar claims in 2018. In 2017 and again in 2020, the District Court found deficiencies in the Army Corps' environmental assessments and ordered the preparation of a full Environmental Impact Statement (EIS).
In July 2020, the District Court vacated the easement and ordered the pipeline shut down, but that order was stayed by the US Court of Appeals for the District of Columbia. In January 2021, the US Court of Appeals upheld the requirement for an EIS and confirmed the easement's vacatur, though it ruled that DAPL could continue operating absent an injunction. The US Supreme Court declined to review the case, and the Army Corps indicated it would not seek to halt operations during the review process.
On September 8, 2023, the Army Corps released a draft EIS evaluating five alternatives, including continued operation, shutdown, rerouting, and removal of the pipeline. No preferred alternative was identified. The public comment period closed on December 13, 2023.
On December 19, 2025, the Army Corps published the final EIS for DAPL. The final EIS includes an extensive analysis of spill risks from the pipeline, including the pipeline safety record of Energy Transfer Crude Oil Pipeline. The final EIS identified continued operation of the existing pipeline with additional conditions as the preferred alternative. On May 21, 2026, the Army Corps issued the final Record of Decision, which permits continued operations with additional conditions that include groundwater monitoring and leak detection.
Separately, on October 15, 2024, the Standing Rock Sioux Tribe filed a new complaint in the District Court seeking a permanent injunction against DAPL's operation, alleging that the Army Corps is unlawfully allowing continued operations without a valid easement or compliant Facility Response Plan. Dakota Access, LLC and 13 states intervened in support of continued operations. On March 28, 2025, the District Court dismissed the complaint. The Tribe filed a notice of appeal on May 27, 2025, and, on June 14, 2026, filed an unopposed motion to dismiss its appeal.
OTHER LITIGATION
We and our subsidiaries are subject to various other legal and regulatory actions and proceedings which arise in the normal course of business, including interventions in regulatory proceedings and challenges to regulatory approvals and permits. While the final outcome of such actions and proceedings cannot be predicted with certainty, management believes that the resolution of such actions and proceedings will not have a material impact on our consolidated financial position or results of operations.
CHANGES IN ACCOUNTING POLICIES
Refer to Part I. Item 1. Financial Statements - Note 2 - Changes in Accounting Policies.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our exposure to market risk is described in Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk of our annual report on Form 10-K for the year ended December 31, 2025. We believe our exposure to market risk has not changed materially since then.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed by us in the reports filed with, or submitted to, securities regulatory authorities, including under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified under Canadian and US securities law. Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurance that information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Under the supervision of and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as at June 30, 2026, and based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these controls and procedures are effective in ensuring that information required to be disclosed by us in reports that we file with or submit to the SEC and the Canadian Securities Administrators is recorded, processed, summarized and reported within the time periods required.
Changes in Internal Control over Financial Reporting
Under the supervision of and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, we have evaluated changes in internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fiscal quarter ended June 30, 2026 and found no change that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We are involved in various legal and regulatory actions and proceedings which arise in the ordinary course of business. While the final outcome of such actions and proceedings cannot be predicted with certainty, management believes that the resolution of such actions and proceedings will not have a material impact on our consolidated financial position or results of operations. Refer to Part I. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Legal and Other Updates for discussion of certain legal proceedings with recent developments.
SEC regulations require the disclosure of any proceeding under environmental laws to which a governmental authority is a party unless the registrant reasonably believes it will not result in monetary sanctions over a certain threshold. Given the size of our operations, we have elected to use a threshold of US$1 million for the purposes of determining proceedings requiring disclosure. We have no such proceedings to disclose in this quarterly report.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this report, careful consideration should be given to the factors discussed in Part I. Item 1A. Risk Factors of our annual report on Form 10-K for the year ended December 31, 2025, as updated by Part II. Item 1A. Risk Factors of our interim report on Form 10-Q for the quarter ended March 31, 2026, which could materially affect our financial condition or future results. There have been no material modifications to those risk factors, other than as set forth below.
The effects of US, Canadian and other governments' policies on tariffs and trade relations are uncertain and could adversely impact our business, operations or financial results.
Tariffs and other trade measures announced, imposed, modified, suspended, terminated or replaced by the US, together with potential, announced or implemented retaliatory tariffs by other governments on imports from the US, and other potential measures, including duties, fees, economic sanctions or other trade measures, as well as the potential impacts of these tariffs and trade measures, present significant risks to our business operations and financial results. Such measures may include, among other tariffs or surcharges on certain goods that do not qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA), global tariffs on steel, aluminum and other metals, and other periodic retaliatory tariffs or trade measures affecting Canada.
Several of the US tariff announcements have been followed by announcements of limited exemptions, temporary pauses on implementation dates and litigation. In response to the US tariff announcements, certain governments have threatened or announced retaliatory measures against the US and/or are in the process of negotiating with the US on tariff agreements. In addition, while in February 2026, the US Supreme Court ruled that the US President did not have authority to impose certain tariffs and trade measures on an "emergency" basis, the US administration is pursuing other means of imposing tariffs. These announcements and activities have led to significant uncertainty and market volatility.
If maintained, such trade measures, the nature, extent and timing of which are uncertain, and the potential for escalation of trade disputes, including retaliatory measures, could lead to, among other things, worsening of macroeconomic conditions, inflationary pressures, increased construction costs, costs to maintain our assets and other costs and expenses, as well as to potential reductions in demand for US and/or Canadian energy. The measures also introduce uncertainty in North American energy and capital markets and have the potential to disrupt supply chains and access to capital markets and jeopardize our competitiveness.
On July 1, 2026, the formal review period for USMCA began with the US Government announcing its intent not to renew the agreement without changes. As a result, the USMCA is not renewed; however, the agreement remains in force pending resolution of these issues or until the agreement’s termination in 2036. Results of these negotiations could further impact the energy market and our business.
Any of the foregoing could significantly adversely impact our business, operations or financial results.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
OFFICERS AND DIRECTORS TRADING ARRANGEMENTS
Certain of our officers and directors have made elections to participate in, and are participating in, our compensation and benefit plans involving Enbridge securities, such as our 401(k) plan and directors' compensation plan, and may from time to time make elections which may be designed to satisfy the affirmative defense conditions of Rule 10b5-1 under the Exchange Act or may constitute non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K). During the second quarter of 2026, none of our directors or officers adopted or terminated a trading plan intended to satisfy Rule 10b5-1 or any non-Rule 10b5-1 trading arrangement, as defined in Item 408 of Regulation S-K.
ITEM 6. EXHIBITS
Each exhibit identified below is included as a part of this quarterly report. Exhibits included in this filing are designated by an asterisk ("*"); all exhibits not so designated are incorporated by reference to a prior filing as indicated.
Exhibit No.
Description
4.1
Shareholder Rights Plan Agreement between Enbridge Inc. and Computershare Trust Company of Canada dated as of November 9, 1995 and Amended and Restated as of May 6, 2026 (incorporated by reference to Exhibit 4.1 to Enbridge’s Current Report on Form 8-K filed May 7, 2026)
4.2*
Trust Indenture between IPL Energy Inc. and Montreal Trust Company of Canada dated as of October 20, 1997
4.3*
Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.), Montreal Trust Company of Canada, and Computershare Trust Company of Canada dated as of November 28, 2001
4.4*
Second Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of December 21, 2011
4.5*
Third Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of September 26, 2017
4.6*
Fourth Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of April 12, 2018
4.7*
Fifth Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.), Spectra Energy Partners, LP, Enbridge Energy Partners, L.P., and Computershare Trust Company of Canada dated as of June 20, 2019
4.8*
Sixth Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of January 19, 2022
4.9*
Seventh Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of September 29, 2023
4.10*
Eighth Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of September 29, 2023
4.11*
Ninth Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of February 14, 2025
4.12*
Tenth Supplemental Indenture between Enbridge Inc. (formerly IPL Energy Inc.) and Computershare Trust Company of Canada dated as of September 17, 2025
22.1*
Subsidiary Guarantors
31.1*
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*
32.1*
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*
101.SCH*
Inline XBRL Taxonomy Extension Schema Document.
101.CAL*
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*
Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*
Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document (included in Exhibit 101)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
(Registrant)
Date:
July 31, 2026
By:
/s/ Gregory L. Ebel
Gregory L. Ebel
President and Chief Executive Officer
(Principal Executive Officer)
/s/ Patrick R. Murray
Patrick R. Murray
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)