Enbridge Reaffirms 2026 Guidance as Gas Projects Enter Service

Enbridge reported on November 6, 2026 that third-quarter adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization adjusted for unusual, infrequent or other non-operating factors, rose to C$4.434 billion from C$4.267 billion a year earlier. Stronger gas-transmission and utility results offset weaker Liquids Pipelines performance. The company also placed more than C$3 billion of gas projects into service and reaffirmed 2026 guidance for adjusted EBITDA of C$20.2 billion to C$20.8 billion and distributable cash flow of C$5.70 to C$6.10 per share. Results are unaudited and in Canadian dollars unless otherwise noted.

The quarterly results show a much larger increase in GAAP earnings than in adjusted earnings, alongside lower operating cash flow:

Enbridge attributed the GAAP increase primarily to non-cash, unrealized changes in the value of derivatives used to manage foreign-exchange, interest-rate and commodity-price risks, net of tax, in addition to operating performance. That helps explain why reported earnings rose more sharply than adjusted earnings, which exclude unusual, infrequent or other non-operating factors. Higher depreciation from assets placed into service since the third quarter of 2025 and higher interest on incremental debt also limited the adjusted improvement.

Distributable cash flow moved in the opposite direction from operating cash flow. Enbridge defines DCF as operating cash flow before changes in operating assets and liabilities, less distributions to noncontrolling interests, preference-share dividends and maintenance capital, with further adjustments for unusual or non-operating factors. Maintenance capital fell to C$231 million from C$303 million through enterprise-wide cost-saving initiatives, helping DCF increase despite higher interest expense.

Gas and Utilities Offset Liquids Weakness

Gas Transmission adjusted EBITDA increased C$165 million to C$1.427 billion. The principal contributors were the East Tennessee rate-case settlement, a previously approved Texas Eastern rate increase, favorable Texas Eastern contracting and a higher allowance for equity funds used during construction. Gas Distribution and Storage adjusted EBITDA rose C$105 million to C$665 million on higher base rates in Utah and North Carolina and higher rates and customer growth in Ontario.

Liquids Pipelines moved the other way, with adjusted EBITDA declining C$101 million to C$2.206 billion. Lower Mainline volumes net of earnings sharing, lower Line 9 tolls and underutilized Market Access contracts to the U.S. Gulf Coast weighed on the segment. Favorable translation of U.S.-dollar earnings partly offset those pressures. This segment mix explains why consolidated adjusted EBITDA growth remained modest despite the stronger gas and utility contributions.

Completions and Acquisitions Reshape the Backlog

The Aspen Point expansion on Westcoast’s B.C. Pipeline and the Tennessee Ridgeline expansion on East Tennessee Natural Gas Pipeline entered service during the quarter and were removed from the secured backlog. Approximately C$1 billion of additions through Pony Express 2 and the Long Lake Expansion partly replenished the backlog, which remains approximately C$38 billion. Gas Transmission still has a C$15 billion sanctioned portfolio, including the C$4 billion Sunrise expansion and nearly 90 Bcf of storage expansions along the U.S. Gulf Coast and in British Columbia.

Enbridge’s earnings presentation gives Aspen Point capacity of up to 535 MMcf/d and identifies a TVA gas-fired plant as the facility Tennessee Ridgeline will serve.

The quarterly update also recapped two crude-oil transactions. On September 9, Enbridge agreed to acquire Tallgrass Energy’s crude oil business for US$2.55 billion in cash, including 75% of Pony Express and 51% of Powder River Gateway. The transaction remains subject to regulatory approvals and closing conditions. Enbridge expects the associated US$0.3 billion Pony Express 2 expansion to increase capacity to approximately 515 kbpd in late 2027.

Separately, the US$0.6 billion Salt Creek Midstream gathering acquisition, announced August 26, closed effective October 9. Its assets have average remaining contract lives of approximately 10 years. Combined with Gray Oak transportation and Ingleside export infrastructure, they extend Enbridge’s wellhead-to-water service for Permian crude.

Funding Requirements Frame the Outlook

Enbridge expects to finance its secured growth program through anticipated annual growth-capital investment capacity of C$10 billion to C$11 billion. Partnerships provide another source of funds: KKR and Apollo contributed approximately C$0.7 billion at closing and committed roughly another C$2.0 billion for the Aspen Point and Sunrise programs. Their Westcoast ownership is expected to reach 29% when Sunrise enters service in 2028, while Enbridge remains the majority owner and operator.

The funding plan also included a C$3.0 billion bought-deal offering of 44.7 million common shares that closed September 14, partly to reduce funding risk around the Tallgrass and Salt Creek acquisitions. Rolling 12-month Debt-to-EBITDA, Enbridge’s non-GAAP measure of debt relative to adjusted EBITDA, ended the quarter at 5.1x, slightly above its target range. The company attributed that reading to the different exchange rates used to translate period-end debt and trailing 12-month EBITDA.

Enbridge also reaffirmed its medium-term target of approximately 5% compound annual growth for adjusted EBITDA, DCF per share and adjusted earnings per share. The quarter shows both the operating contribution and the financial demands of that expansion: gas and utility investment is supporting higher earnings and DCF, while new assets and acquisition financing are adding depreciation, interest and leverage. The central question for subsequent results is whether cash generation from the expanded network keeps pace with the capital required to build and acquire it.