Enbridge(ENB) - 2024 Q4 - Annual Report

Financial Performance and Metrics - Management uses EBITDA as a key performance measure, providing transparency into Enbridge's performance[21] - Changes in tax rates and new tax legislation could materially affect Enbridge's financial condition and operating results[322] - The company is exposed to credit risk from customers and counterparties, which could adversely affect earnings and cash flows[308] Debt and Capital Access - A significant portion of Enbridge's asset base is financed with debt, and maintaining an investment-grade credit rating is crucial for cost-effective capital access[301] - The company maintains revolving credit facilities to support liquidity, which are subject to financial covenants[302] Commodity Prices and Project Development - Enbridge's Liquids Pipelines growth may be indirectly affected by commodity prices, with low crude oil prices potentially delaying or canceling future projects[304] - The company holds a 13.2% effective economic interest in DCP, which is impacted by commodity price fluctuations[307] Regulatory and Environmental Factors - Regulatory scrutiny and potential changes in environmental laws could increase operating costs and limit future projects[318] - Enbridge's Renewable Power Generation assets in Canada and the US are subject to variable government regulations that can negatively impact revenues[320] - Environmental regulatory approvals are critical for the operation and development of Enbridge's facilities, with potential delays leading to increased costs[315] - There has been an increase in climate-related regulatory action and litigation against companies in the energy industry[324] Legal Proceedings and Risks - The company is involved in numerous legal proceedings, with uncertain outcomes that could adversely affect financial results and reputation[324] - The company cannot predict the outcome of individual legal matters with assurance, indicating a high level of uncertainty[324] - Final resolutions of ongoing legal matters may require additional expenditures beyond established reserves, potentially impacting financial results[324] - The company is subject to various legal proceedings that could lead to adverse financial implications over an extended period[324] - Recent developments in legal proceedings are discussed in the Management's Discussion and Analysis section of the financial report[324]