Enbridge (NYSE:ENB) reported record fourth-quarter and full-year 2025 results and reiterated its outlook for continued growth as management highlighted strong asset utilization, an expanding project backlog, and what it described as a deep set of opportunities across liquids, natural gas, and renewable power.
Record results and guidance reaffirmed
President and CEO Greg Ebel said Enbridge exceeded the midpoint of its 2025 guidance for both EBITDA and distributable cash flow (DCF) per share, marking the company’s 20th year of achieving or beating annual financial guidance. Ebel also noted Enbridge increased its dividend for the 31st consecutive year.
Murray reaffirmed 2026 guidance first issued in early December, citing confidence in full-year adjusted EBITDA expectations of CAD 20.2 billion to CAD 20.8 billion and DCF per share of 570 to 610. He attributed expected 2026 growth to roughly CAD 8 billion of new assets entering service and cross-enterprise cost savings initiatives, adding that colder-than-normal weather across much of eastern North America provided “a strong start” to the year.
Capital allocation and growing investment capacity
Management emphasized balance sheet targets and funding priorities. Murray said Enbridge remains committed to equity self-funding and is maintaining its leverage range of 4.5 to 5.0 times debt-to-EBITDA, with debt-to-adjusted EBITDA at 4.8 times at year-end.
On shareholder returns, Murray said Enbridge expects to pay CAD 40 billion to CAD 45 billion of distributions over the next five years and reiterated a 60% to 70% DCF payout target, noting the company is currently around the middle of that range.
Enbridge’s secured project backlog stands at CAD 39 billion extending through 2033, Murray said, while annual investment capacity has increased to CAD 10 billion to CAD 11 billion. He framed that capacity as supporting CAD 6 billion to CAD 7 billion of organic growth projects annually plus CAD 4 billion of foundational capital for utility growth programs, modernization spending, and liquids mainline investments.
On project returns, Murray said Enbridge’s sanctioned 2025 organic projects average about an 11% return on capital employed. In response to analyst questions, management said it expects future opportunities to average around similar levels on a portfolio basis, while also emphasizing risk-adjusted returns given the company’s mix of regulated utility and contracted infrastructure assets.
Operational performance: high utilization across systems
Ebel said Enbridge’s assets remained highly utilized in the quarter. The liquids mainline transported about 3.1 million barrels per day on average, and Ebel said the system has been apportioned for all but three of the last 12 months, including “double-digit apportionment” in January and February 2026.
In natural gas, management pointed to winter demand as evidence of system importance. Ebel said Texas Eastern hit a new peak record in January by transporting more than 15 Bcf per day, while Enbridge Gas Ohio posted its third-highest throughput day in its 128-year history. Ebel also highlighted New England constraints, saying the Algonquin pipeline recorded nine of its top 25 all-time volume days this winter.
Enbridge also reported contract performance. Ebel said the company extended contracts across several liquids pipeline assets and that gas transmission posted a 100% contract renewal rate on its major pipelines.
Liquids pipelines: mainline optimization and Line 5 progress
In liquids, Ebel and Liquids Pipelines head Colin Gruending emphasized the company’s footprint connecting Western Canadian Sedimentary Basin (WCSB) production to U.S. Midwest and Gulf Coast demand centers. Management said it does not expect material impacts from recent geopolitical events involving Venezuela, citing expectations for continued growth in WCSB production and demand for Canadian heavy crude.
In the fourth quarter, Enbridge sanctioned the first phase of its Mainline Optimization (MLO 1), which will add 150,000 barrels per day of additional egress from the basin and includes a 100,000 barrel-per-day expansion on Flanagan South. Management said the project is expected to cost $1.4 billion and enter service by the end of 2027, and that most customers elected to extend Flanagan South take-or-pay contracts beyond 2040.
Management said it is commercializing MLO 2, which could add another 250,000 barrels per day around 2028. Executives also said MLO 3 is progressing, though they provided limited detail, describing work on multiple sizing options “small, medium, large” depending on industry needs.
On Line 5, Enbridge said the U.S. District Court ruled in its favor to prevent the state of Michigan from taking further action to shut down the pipeline, and that the U.S. Army Corps of Engineers issued its final environmental impact statement for the Line 5 Tunnel Project.
In the Gulf Coast and Permian, Enbridge said an 80,000 barrel-per-day Gray Oak expansion entered service in 2025 and the remaining 40,000 barrel-per-day expansion is expected to enter service in the first half of 2026. Management also discussed further storage expansion at Ingleside and additional services at the Corpus Christi docks, noting available “headroom” and permitted expansion capacity at the Ingleside facility.
Natural gas and renewables: LNG, data centers, storage, and tech-driven power demand
Enbridge’s gas transmission team described a broad opportunity set tied to industrial demand, data center power requirements, LNG exports, and storage. Management said it is advancing more than 50 potential data center opportunities that could require up to 10 Bcf per day of natural gas, with initial project sanctioning expected in 2026 and additional activity in 2027.
In the Permian, Enbridge said its joint venture natural gas assets are positioned to provide more than 11 Bcf per day of long-haul capacity and are supported by more than 2 Bcf of storage at Waha. The company announced the sanctioning of Bay Runner, an extension of the Whistler pipeline intended to supply the Rio Grande LNG facility, and said Bay Runner combined with the previously announced Rio Bravo pipeline will offer total capacity up to 5.3 Bcf per day. Enbridge also said it upsized the Eiger Express pipeline from 2.5 Bcf per day to 3.7 Bcf per day supported by long-term contracts. The company added that it extended its U.S. Gas Transmission Modernization Program another year into 2029 and noted Appalachia to Market II is now in service.
In gas distribution and storage, management discussed rate case activity and growth expectations. Enbridge said its Ohio rate decision was “somewhat disappointing,” but allowed ROE remained 9.8% with a slightly higher equity component, prompting a new rate case filing at the end of 2025 reflecting updated costs. Enbridge also cited constructive settlements in North Carolina and Utah, with new rates effective in November 2025 and January 1, 2026, respectively.
On storage, executives described what they called strong customer appetite and improving economics. Enbridge said it is expanding Aitken Creek storage in British Columbia by 40 Bcf and described increasing demand linked to LNG and power. Management also highlighted its Great Lakes storage footprint, including roughly 300 Bcf in Ontario and ongoing incremental expansion at Dawn, including 4 Bcf planned to be added this year.
In renewable power, Enbridge said it sanctioned Cowboy Phase One and Easter Wind to support data center operations, describing the projects as part of partnerships with large technology companies. Cowboy Phase One is a 365 MW solar project with a 135 MW battery energy storage component in Wyoming, with total capital expenditures of $1.2 billion and expected in-service in 2027. Enbridge said the battery system will be supplied and operated by Tesla and could be expanded up to 200 MW pending utility approval expected in the first half of 2026. Easter Wind is a 152 MW onshore wind project near Amarillo, Texas, with a $400 million U.S. project cost and a power purchase agreement with Meta.
Management said the first phase of Sequoia Solar entered service in December and the Corsel Wind project in Europe remains on track for 2027. Executives also discussed a queue of additional renewable projects and said the company has more than 2 gigawatts of “safe harbored” renewable opportunities to pursue over the next several years, while reiterating that it is not currently looking to re-enter electric transmission.
Looking ahead, Ebel said Enbridge expects to achieve 5% growth through the end of the decade, supported by the CAD 39 billion of secured growth capital, while management said it anticipates reaching final investment decisions on another $10 billion to $20 billion of growth projects over the next 24 months.
About Enbridge (NYSE:ENB)
Enbridge Inc is a Calgary, Alberta–based energy infrastructure company that develops, owns and operates a diversified portfolio of energy transportation, distribution and generation assets. Its core activities include the operation of crude oil and liquids pipelines, natural gas transmission and distribution systems, and energy storage facilities. In addition to midstream transportation and storage, Enbridge has expanded into renewable power generation and energy transition projects, including wind, solar and utility-scale generation assets.
The company serves customers primarily in Canada and the United States and has interests in other international energy projects.
