- Record Financial Performance Exceeded 2025 EBITDA and DCF guidance with $83M YoY adjusted EBITDA growth driven by mainline volumes and Matterhorn acquisition.
- Capital Allocation $14B in sanctioned 2025 projects ($4B Liquids, $4B Gas Transmission) and $39B growth backlog through 2033, supporting 5% annual growth through 2030.
- Debt Management Maintained debt-to-EBITDA within 4.5-5x leverage range, enabling $6-7B annual organic growth projects alongside $4B foundational capital.
- Gas Transmission Expansion Targeting 50+ data center gas demand opportunities (10 Bcf/d potential) and exceeding corporate growth rates with Permian and Eiger expansions.
- Return Profile Achieved ~11% average return on capital for organic projects, with $10-20B FID pipeline over 24 months expected to deliver 10-11% IRRs.
Financial Performance
The company's financial performance was driven by its diversified asset base, with the mainline transporting 3.1 million barrels per day on average. Enbridge's debt-to-EBITDA remains within its 4.5 to 5x leverage range, providing a stable foundation for future growth. The company's return on capital employed has improved, with an average return of approximately 11% across all organic projects.
Growth Prospects
Enbridge is well-positioned for future growth, with a $39 billion backlog extending through 2033, and a focus on accretive brownfield projects supported by strong energy fundamentals. The company expects to reach FID on $10 billion to $20 billion of growth projects over the next 24 months, driven by its diversified portfolio of projects across its core business units. As Pat Murray, Enbridge's CFO, noted, "every dollar raised in EBITDA creates $4 to $5 in debt capacity," providing a strong foundation for future growth.
Valuation
Enbridge's current valuation metrics suggest a stable outlook, with a P/E Ratio of 26.52, P/B Ratio of 3.41, and Dividend Yield of 5.14%. The company's EV/EBITDA ratio is 12.46, indicating a reasonable valuation relative to its earnings. With a ROE of 9.78% and ROIC of 5.87%, Enbridge is generating strong returns on its investments.
Segment Updates
The company's Liquids segment performed strongly, with the mainline apportioned for most of 2025. The Gas Transmission segment is expected to benefit from growing demand for natural gas, driven by power demand and data centers. Enbridge's power business is also expected to contribute to growth, with over 2 gigawatts of safe-harbored opportunities in the solar, wind, and battery space.
Outlook
Enbridge is confident in its ability to improve returns through optimizing base assets and investing in high-quality projects. The company expects to achieve 5% growth through the end of the decade, supported by its $39 billion of secured growth capital. With a strong balance sheet and a disciplined capital allocation approach, Enbridge is well-positioned to drive consistent long-term shareholder value.