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Enbridge(ENB) - 2024 Q2 - Quarterly Report
ENBEnbridge(ENB)2024-08-02 11:04
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Financial Performance - Enbridge reported earnings of CAD 3,566 million for the six months ended June 30, 2024, compared to CAD 3,867 million for the same period in 2023, reflecting a decrease of approximately 7.8%[16]. - The comprehensive income attributable to common shareholders for the six months ended June 30, 2024, was CAD 5,198 million, up from CAD 2,622 million in 2023, indicating an increase of approximately 98.5%[16]. - Net cash provided by operating activities for the six months ended June 30, 2024, was CAD 5,965 million, down from CAD 7,305 million in 2023, a decrease of about 17.3%[19]. - Total revenue for the three months ended June 30, 2024, was CAD 11,336 million, compared to CAD 10,432 million for the same period in 2023, reflecting an increase of 8.6%[27][28]. - The total operating revenues for the six months ended June 30, 2024, were CAD 22,374 million, compared to CAD 22,507 million for the same period in 2023, indicating a slight decrease of approximately 0.6%[48][49]. - The company reported earnings before interest, income taxes, and depreciation and amortization (EBITDA) of CAD 5,095 million for the three months ended June 30, 2024, compared to CAD 4,540 million for the same period in 2023, representing a 12.2% increase[170]. - Earnings attributable to common shareholders for the six months ended June 30, 2024, were CAD 3,402 million, down from CAD 3,652 million for the same period in 2023, reflecting a decrease of 6.8%[62]. - Operating revenues for the three months ended June 30, 2024, were reported at CAD 11,619 million, compared to CAD 10,788 million for the same period in 2023, indicating a growth of 7.7%[62]. Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2024, totaled CAD 2,533 million, compared to CAD 2,093 million in 2023, representing an increase of approximately 21.0%[19]. - Capital expenditures for the three months ended June 30, 2024, totaled CAD 1,364 million, compared to CAD 976 million in the same period of 2023, indicating a year-over-year increase of approximately 39.6%[46][49]. - The company issued common shares, net of issue costs, amounting to CAD 2,485 million during the six months ended June 30, 2024, compared to no issuance in the same period of 2023[19]. - The company completed long-term debt issuances totaling US4.7billionduringthesixmonthsendedJune30,2024[86].−Thecompanyclosedthesaleofits50.04.7 billion during the six months ended June 30, 2024[86]. - The company closed the sale of its 50.0% interest in the Alliance Pipeline for 3.1 billion, resulting in a gain on disposal of 1.1billionbeforetax[76].−ThecompanyacquiredQuestarGasCompanyforcashconsiderationof1.1 billion before tax[76]. - The company acquired Questar Gas Company for cash consideration of 4.1 billion (US3.0billion)onMay31,2024,enhancingitsgasdistributionoperationsintheUS[57].−TheEOGAcquisitionwascompletedforcashconsiderationof3.0 billion) on May 31, 2024, enhancing its gas distribution operations in the US[57]. - The EOG Acquisition was completed for cash consideration of 5.8 billion (US4.3billion)onMarch6,2024,furtherexpandingthecompany′soperationsinOhio[64].−ThecompanycompletedtheacquisitionofQuestarandWexproforcashconsiderationof4.3 billion) on March 6, 2024, further expanding the company's operations in Ohio[64]. - The company completed the acquisition of Questar and Wexpro for cash consideration of 4.1 billion (US3.0billion)onMay31,2024,enhancingitsgasdistributionoperationsintheUS[153].DebtandEquity−Long−termdebtrosetoCAD85,181millionasofJune30,2024,comparedtoCAD74,715millionatDecember31,2023,reflectinga143.0 billion) on May 31, 2024, enhancing its gas distribution operations in the US[153]. Debt and Equity - Long-term debt rose to CAD 85,181 million as of June 30, 2024, compared to CAD 74,715 million at December 31, 2023, reflecting a 14% increase[9]. - The company's total liabilities increased to CAD 131,010 million as of June 30, 2024, up from CAD 115,834 million at December 31, 2023, representing an increase of 13.1%[9]. - Total equity attributable to Enbridge Inc. shareholders increased to CAD 67,228 million as of June 30, 2024, compared to CAD 61,454 million at December 31, 2023, a growth of 9.1%[9]. - The company redeemed US700 million of senior notes on March 8, 2024, and closed a four-tranche offering of senior notes totaling US3.5billioninApril2024[166].−AsofJune30,2024,thecarryingvalueoflong−termdebt,includingfinanceleaseliabilities,wasCAD92.3billion,withafairvalueofCAD88.7billion[138].CashFlowandLiquidity−Enbridge′scashandcashequivalentsattheendoftheperiodwereCAD3,699million,downfromCAD1,090millionattheendofJune2023,indicatingadecreaseofapproximately66.13.5 billion in April 2024[166]. - As of June 30, 2024, the carrying value of long-term debt, including finance lease liabilities, was CAD 92.3 billion, with a fair value of CAD 88.7 billion[138]. Cash Flow and Liquidity - Enbridge's cash and cash equivalents at the end of the period were CAD 3,699 million, down from CAD 1,090 million at the end of June 2023, indicating a decrease of approximately 66.1%[19]. - The company maintains substantial capacity under committed bank lines of credit to address liquidity risks, ensuring funding for anticipated requirements for approximately one year[113]. - The company expects significant liquidity from its financing activities, allowing it to fund capital projects and acquisitions without needing access to capital markets for the next 12 months[169]. - The company has a diversified group of banks and institutions for credit facilities, ensuring compliance with all terms and conditions as of June 30, 2024[113]. Foreign Currency and Derivatives - The company experienced a foreign currency translation adjustment of CAD 2,385 million for the six months ended June 30, 2024, compared to a loss of CAD 1,517 million in 2023, showing a significant improvement[16]. - The company employs financial derivative instruments to hedge against foreign exchange risk, with a focus on US dollar-denominated revenues and expenses[97]. - The total net derivative asset/(liability) for foreign exchange contracts is CAD (1,177) million as of June 30, 2024[104]. - The company reported an unrealized loss on derivatives of CAD 230 million for the three months ended June 30, 2024, compared to a gain of CAD 615 million for the same period in 2023[112]. Regulatory and Project Updates - The Canada Energy Regulator approved the negotiated Mainline tolling settlement, which became effective retroactively as of July 1, 2021[37]. - The Texas Eastern Transmission, LP reached a negotiated settlement to increase rates effective October 1, 2024, approved by the FERC[158]. - Algonquin Gas Transmission filed a rate case with the FERC, expecting to implement new rates effective December 1, 2024[159]. - The Tennessee Ridgeline Expansion project is expected to begin construction in 2025, with a target in-service date of late 2026[205]. - The Woodfibre LNG project has an estimated capital cost of US1.5 billion, with CAD 412 million spent to date and is currently under construction[201]. - The Texas Eastern Venice Extension project has a total estimated capital cost of US477million,withUS477 million, with US317 million spent to date and is under construction[201]. Miscellaneous - The company has signed capital obligation contracts totaling approximately CAD 2.7 billion for services, pipe, and materials expected to be paid over the next five years[210]. - The company has a policy to limit floating rate debt to a maximum of 30% of total debt outstanding, currently managing a mix of fixed and variable rate debt instruments[98]. - Standard & Poor's Global revised the company's outlook from negative to stable in June 2024, and Morningstar DBRS upgraded its credit ratings to A (low) from BBB (high)[170].