Enbridge (ENB) 5 May 232023 Q1 Earnings call transcript

Ladies and gentlemen, welcome to the Enbridge Incorporated First Quarter 2023 Financial Results Conference Call. My name is Brent, and I will be your operator today. [Operator Instructions] Please note that, this call is being recorded.

I will now turn the call over to Rebecca Morley, Director Investor Relations. Rebecca, you may begin.

you. Thank welcome First and Call. XXXX the to morning, Quarter Enbridge Earnings Good name I'm Relations and Rebecca Director My Morley, Investor the is of the team.

Vern Akman, Gruending, and Michele and the morning President of and each and this Midstream; Greg business heads Renewable Cynthia of Yu, units; Storage; Hansen, our CEO; Transmission Colin President Technologies me Distribution Officer Pipelines; Chief and Harradence, Energy Joining New Power. Gas of Matthew Financial Liquids are and Ebel, Gas

and and webcast the being encourage is try call limiting necessary. the this from community. be many usual, to roughly as the prioritizing with We'll per on listening will along to to phone investment questions in supporting I to the a to hour be if call we As one answer those We'll one follow-up questions questions keep as order plus follow the possible slides. single

inquiries team respond. if a direct member of the happy to please media be communications to your will So our you're who

team As for always, our Investor will be follow-up questions. any following call the available Relations

below. to and which the also will and this that, referring public contains to uncertainties assumptions here be We'll be referring more its future about today's summarized remind information to to Q&A. information I slide on X, we'll forward-looking nature presentation filings. discussed and fully forecast you are and On subject non-GAAP outcomes, disclosure expectations where By our outlined risks measures in

over to turn Ebel. it that With I'll Greg

on It joining another I'm today review results to Thank an and quarter you, morning, here our be was Rebecca, excited our to thanks business. and quarter. and update us. good great everyone first for provide

highlights address then team our you the as financial off may strategic always, management any we close through take performance. our lastly, the in performance few will by strong I'll underpinned here takeaways. with start through you that is I'll made And key have. you outlook. and to recapping a And Vern some advancements some franchises. walk core key questions So I'll

are quarter great to balance First our ahead at of year little the we exited full shape on track performance, near range, in expectations of and to debt-to-EBITDA our which our all We times supports our too. financial strong quarter meet the be And saw X.X credit a bottom sheet continues ratings. of BBB+ our guidance.

In moment. addition, we with announce that principle we the on a in our and mainline customers, and were yesterday more toll customers us extremely on have is This pleased we will to framework. news comment in a settlement for our that great reached

an the position competitive Creek Palacios strategy asset front, And of British agreement signed in Aitken storage, Canada. we On the gas our natural in Gulf to acquisition Gas enhances Coast. the along acquire we improving further Tres export acquisition Storage which completed Columbia, in LNG our

production Yara LOI opportunities. at of our Energy a an asset our to low-carbon also with existing exciting We blue great example which Ingleside Center, signed facility base how ammonia leading construct to is is conventional a

We farm we delivered And systems performance. excellent saw In across the EDF consecutive committed of offshore partners our profile. visible Renewables, which Mainline remain quarter of along record our to course, and adds wind with our strong Normandy our were we X-gigawatt safety awarded volumes. delivering CPPIB, second of and growth to our utilization all

our near-term all strong report see to and tolling that our on. this But settlement guidance All-in-all, doing few ESG goals a highlight Across touch have strong a the I expect corporation you outlook. lowering track initiatives on year support frequency great and we will recordable can areas sustainability another we're progress later and so. continually month. Vern our Mainline every towards our our of focusing total would target incident quarter. new record The out multi-year note our and new growth

So let's touch quickly on the financial highlights.

DCF and of is economic X% operational circumstances. EBITDA speak quarter business all low-risk performance our resilient These up nature in our up results and model X%. First strong the to is

us leaves to ample grow tuck-in recently to sheet room further. to balance continue space strong announce plenty still execute you've of Our and the leaves seen M&A us deals

a tolling settlement. that yesterday's a reached with let's Mainline I'm principle look really settlement This our on announcement at Now, very closer the with customers Mainline. take the in a have pleased win-win-win. we is

a years access will service receive customers will to will affordable and have safe, first-choice earn for attractive Enbridge secure Our at society to standards come. competitive returns risk-adjusted and toll. energy

basis. has it's another common QX system, performance shaping solid The quo. Mainline standpoint, all and as a is continue available status carrier up Year-to-date, nomination will scheduling a quarter. been a volume strong From Mainline be on monthly to customers to

forward, to competitive and combined by toll incentive access and pipeline the new with ensures barrels Mainline compared our others more the our attractiveness customers market unparalleled system, of our maximize will to our our Going be come. decades increases utilized on to well the for

an toll earn deal The will return negotiations. to and agreement. stable indexed constructive one a inflation everyone will this new and good be Mainline the as to and a of the earned result and will is during the inclusive for toll components similar attractive of CTS be Overall, thoughtful,

So customers constructively and diligently thank Enbridge so the our to team and working on this like deal framework. positive I'd for

specifics everyone this the page, digest good is answer for settlement. all want to and the a there's away with today some outcome On I new involved. questions. can is line the deal see to right-hand this bottom that the take here that, we're can a parties We the from that side all of you appreciate your to lot of of But

our application been guidance and to maintained under ahead outlook our are and of year. The with we're filing the financial a toll we've recording with And the before looking have finally, new the the deal. our new settlement and approval and CER is in And FERC expectations in final end financial results. the line hope provision

Coast late now export In and phase Gulf other per US strategy. additional provide of parts season liquids look to initial binding the pipelines EHOT capacity about liquids expect operations market a open advance available access We're FID a launch take see to closer Flanagan and to continue the begin We to XXXX. let's for So customers. our to our day our South to we XX,XXX at of leverage business. up of in barrels

is securing secure demand addition South, opportunity In throughput grow. also look and opportunities to on low entire continues on of to set, long-haul we network. operatorship to exciting of the Gray which Subsequent Enbridge pipeline would Oak for system. took quarter, optimize carbon volumes to Flanagan Equally the we will end the our the that the

ammonia Ingleside construct facility March, year million In we an to up blue a production at the Ingleside to X.X per expected signed Yara to produce Center. jointly This of tons facility with is LOI blue Energy part We're with long-term and of partnership to construct Low previously announced also backed Ventures. a our XXX% a ammonia by capture hub Carbon offtake near carbon sequestration Oxy agreement. as planning

dates loading one-of-a-kind suite to world-class XXXX. low-carbon the carbon Power with hub in-service Army early border a construct to We're with also oil renewable and So our north Ingleside phased a up and terminal capture is Edmonton partnering are Heidelberg Knife on-site where of of lower Capital continuing Swiss we shaping its capacity, storage be near development advance as and with plans power. to as a starting materials carbon

power have construction self-power or lines. last operating cost least, along seven also we projects but mainline liquids under the And exposure not along emissions that solar definitely our and reduces

Pipelines some gas on business. acquiring Creek in looking to asset move So in to T-North announced that week, Last Canada second we're customers is transmission Gas from the our half export we Aitken strategy. LNG our of relaunch second and support exciting enhance open Fortis. our in well-positioned and binding Also service developments Storage to of offering of a will year. season we're BC This let's this for expansion a our the

world. fiber pleased using work in And renewable Appalachia lowest customer are export Texas interest. on and progressing of a power, facility is LNG successful LNG season just on hydroelectric fiber closed by wood will In the schedule. emission we've be open Eastern with engineering US, in on region the The wood the the note

of to previously support of announced adding Gas So mentioned closed of the by Palacios acquisition Gulf we'll Coast. earlier sanction along Tres recently our XX this year. will which And storage, look expansion the we've as gas end LNG Bcf the Storage,

construction the once decade which Grande FID proceed the next be reaches on Rio to ready the end LNG, of Pipeline of by June. we're Lastly Rio should Bravo its with

BC support is and Aitken production volatile value the for Aitken environment. Western Canadian well-positioned to gas price bottlenecks uniquely outpace So and egress key now let's is the at that Storage. storage Aitken The Creek is only demand production the expected And Coast take has Creek long-term facility foreseeable facility future, Enbridge. in to BC for a a Enbridge's Gas Creek closer gas West in Alliance create egress to pipelines. positioned with all look to pipelines connections including

expect We return adjustments. way Fortis customary transaction double-digit another single-digit million to typical acquisition earn this are with another produce on strategic Enbridge a returns. Said plus should $XXX from we a the acquiring closing the that is facility multiple for asset. And

let's on to of wind to develop farm awarded were capacity portfolio. offshore index date, French Similar long-term selected we other to largest our a Now March, latest to farms, we've installed In to inflation. French offshore in move been offshore announcement our our one CFD wind wind France's fixed-price with gigawatt.

with mark other our We the project grow model business core the the low-risk continue continue investments and in three that region. to and with applies our we partners EDF offshore discipline This Renewables can wind CPP plan awards capital sixth future same pursuing demonstrate will project to how the to and businesses.

be and annual Centre the complete, to the XX located of coast expected Once need of is people. Manche One equivalent kilometers X.X off supply electricity to energy million Normandy will

we project in Next engineering are decade. end steps FID the the to planning, of of permitting. the and around for operation be this Ahead and project expect

reviewed our how current to the macro First positioned business our we've and it's share I Now business, environment. that across model would Choice in updates like the

cycles. there interest was volatility but in During and how low-risk extreme quarter, demonstrate our the delivers model our all markets, first exchange results foreign in rates

challenging the see you we through As can to past in the times expect hit that the continue. right, have we and guidance chart from on

earnings against our or from with of inflation EBITDA customer base flows costs. of our is rising Our from XX% protection assets the being protected cost service and throughput. cash are XX% of contracted investment generated XX% of with grade either built-in comes

actively manage sheet earlier, debt our our As portfolio shape in credit of exposed our and exposure than interest ratings. and high floating balance is We great have of the to X% agencies rate reaffirmed is all rates. less BBB our discussed

any from deliver than to lenders you cycles we XX up that to and to we a deliver When value more no have returns market able predictable our different borrow through all exposure choice proposition US regional and are banks. first Lastly, all investors. add

quarterly Vern, turn to walk and ESG through So you outlook over our to now, update our let it on me results, our efforts. you financial

everyone. start. XXXX a morning good is off and in increase EBITDA great in Thanks, performance X% resulted to operational in share increase DCF Greg, per an a Strong and year-over-year. X%

a over will For the row, settlement, confident with averaged per second future. our barrels utilized highly in well the and three million day the we into volumes quarter system are new mainline tolling remain

QX Texas Gas from rate higher and Season case FERC transmission included recent approved utilization revenues settlement. remained high our

also and of seasonality storage to about utility was which a in but due business. the the over outperformance in reverse was a Our more business in up balance our bit timing year. We'll will mostly in transportation of change the talk margin, quarter, the the little the

transportation stronger distributions extremely in capital high flooding and our higher from to quarter XXXX. performance commitments on normal maintenance offset rates and debt, Below has compared more QX, These softened our which line have investment the rate the of period from to operational same NCI The strong levels last partnership contributed benefited from prices coming backwardation higher this the returned EBITDA. dollar, business benefited the power prices our U.S. also from market indigenous year. Athabasca interest during a expired businesses. year. Energy renewals At higher Our Services, to timing European partially

navigate Enbridge as well continues to in saw volatility, be quarter. we positioned to market first the

predictability model, performance. our the of financial results demonstrate nature the of also business and demonstrate and Our operational our low-risk

and QX our lower flows business. are on QX days strongest liquids the transmission So and colder more period. degree place are about gas peaking system fall, let's the seasonality our In means months. spring take refinery the typically in Similarly, financial talk and quarters days. towards more winter are moment turnarounds our are deliveries the our this their gas take and into there a at utility which typically of the the during majority heating business, weighted of

this is built meet track All and that annual into we're our of this guidance year. to guidance on

So now. let's talk about that

with results. across stronger our baked plan. November. dollar last our settlement performance into expecting we strong and businesses in operating is provided continued our As tailwind the for and was Greg XXXX provision slight expectations mentioned, all of the guidance a provides we're that The that We're reaffirming our our line mainline U.S. toll

modest operating Energy rising Services in rates, commodity backwardation However, business our looking were costs warmer hurdles weather, offset. interest our inflationary unit on and pressure to price

all front, reduced for since On year substantially has been of the exposure we've approximately exposure below the management $X.XX. our remainder of our the year dollar rate debt risk the hedged U.S. at update, our last X%. floating And it's now for DCF

So in all-in-all, here. good shape we're

Let's with financial In business. to out and Yara blue move March. you project to projects cases we've new what the bucket, bucket, mainline optimize with Normandy outlook, also In at progress allows offshore our shared There's the advancing the to rate the our second build secured Investor first on change ammonia to we're our reaffirming Pipelines Day Liquids made us growth medium-term we're which to settlement we the JV. no today. in wind organic and opportunities continue our good

a advancing on of also We're number open our systems. seasons

will soon year. and Eastern region launching open still and T-North planning closed We open season Texas season later we're season our our for we've open be this South Flanagan a Appalachian

not least, deploying judiciously capacity. we're but our investment Last

of quarter Creek of the the Tres we week our Aitken During Gas and acquisition we this Storage. venture the announced joint with acquisition Divert announced Palacios,

our strategy continue shareholder to allocation the thesis we're We part our to. capital to effectively growth returns. execute prudent capital we strive to being and view to We a continue deliver big maximize committed of as that and allocate investment

move on that Let's now. to

Our allocation priorities unchanged. are capital

flexible Our strong number us sheet. leaving QX balance one to X.X times of room is maintaining debt-to-EBITDA our execute a priority capital was plenty secured program.

capital XX% through while XX% to dividend and range. to growing continue to sustainable payout dividend, shareholders the within return a We'll maintaining our

shares and a to at of we'll did repurchase have coal seen earlier little prices you'll In look bit in April. addition that selectively for opportunities we regional

year provides with we only that have of $X capital and roughly free front us will a billion Our capacity the of cash flow allocate opportunities best the financial and we flexibility in investment to us. of many

turn growth and years labor to and our pools. diversified secured It's of deployed $XX from program. growth secured pressures program a cost be at now Let's about mitigates across which which our will billion. our businesses tight sits tight over are Today coming today's chain number supply

now Enbridge the that as Enbridge secured terminal Day, Since reached oil program FID. to added the we've Houston growth project has

repayments, us said As more annual with plenty earlier our acquisitions, organic growth, investment buybacks. billion equity model we approximately $X capacity of provides I self-financing share have debt where for of and room asset

business. the finish ESG. Let's committed to what thing to but it's want because fundamental remain echo leader of it's an with not about being do industry ESG. We a up earlier right enabler only to said our I Greg

we As built evaluate an example plan opportunity economics. zero every that own must its investment have its net project emissions into

approximately COX XX% emissions using our announced sequester to capture and heard, storage. facility plan JV ammonia the already with of and we've build carbon you've to production As a we blue Yara facility's

the in sustainably-linked we've history $X US to total and billion. our ambitious bond tracking against and issued for ourselves workplace inclusion over $X.X This financings at goals we sustainably largest about representation set brings we're linked On billion. goals. quarter these well This diversity

At our Enbridge, to dedicated an of employees. work are environment for inclusive we creating all

engagement indigenous energy expertise experience practices bring Board refreshment strong new and and new Directors with including transition. and technologies in perspectives Our energy

black and year our Since Pamela Carter added effective Board and is five appointed Chair January first of this female XXXX was L. she a directors and we've chair. new one our first of

back With to that, it Greg. I'll pass

me questions, takeaways. a leave we very here thanks few with you Well, And as much up let key wrap for Vern.

and our approval, and better our to unchanged now guidance are even mainline plans. outlook remain tolling growth the settlement serve we customers' toward With positioned moving

commercial model not in results growing. consistent behalf. on program Enbridge's key to our industry also low-risk laser-focused operate only and to of positions and Thank balance within still the license our volatility your ESG executing deliver leadership Enbridge And our equity self-funding is predictable strength practice but sheet you. good at component model. on and continue a us growth and withstand We're market on growth

up And the let's for now open your questions. lines

Thank you.

question JPMorgan. will We begin the of Jeremy Instructions] first [Operator the from Your comes with question-and-answer session line now Tonet

is open. line Your

Hi, morning. good

Jeremy. morning, Good

the for today. information Thanks

And XXXX, is Just Just trying waterfall And half regards a announcement a the year actual EBITDA year it's or there agreement. number? you full big I to the yesterday's to see impact? next scale if the items. If wanted look few chart of to with impact $X just impact to to it net go just this clarify gauge is points year? those if toll still if is mainline billion at to it could I if it's a want proportional

Yes. Good question.

I we'll mainline. something have Vern start shocked add maybe question the the too. with and think first We're on is maybe will at Colin

I part supplementary think I we material provided of to you're Jeremy announcement. think the that as referring yesterday our

to key the normally went is lot better host the based we a factors a been what's we've on more the sense we whole thing of would actually booking of granularity to – provision think and about I that a give happening. think is street to than

So another a – factors.\ there of offset toll, other by are there's of revision downward the bunch obviously

basket the the signed line, the is regions see toll, inflation now escalator said, portion CPI to we're a what tool. volumes, see this expect being bit and at little the that in. foreign on up price power the with is mainline of that that prices we booking of And from and to a across going going we've our the power as XXXX EBITDA of all we interim pump And and All we at in the the obviously forward XXX% to to period escalator have off Obviously, been XXXX. through level look down on crude what we and auditors provision have exchange Lakehead rates beyond, that. go the in the

is I outlook and the intact our remains medium-term and long So think unchanged. guidance short of it is the XXXX

Got leverage it. like to what That's is just seems could the the nice there this – follow-up very be very there your helpful knock-on effects. there. is does And it Downstream then for systems. some

you plan walk have what on expansion So wondering through that us a South you. bit could again if just

about think you with this unlocked do agreement? how Just opportunities new

Yes. perspective. the we Hey, it Jeremy, about of and from it's right? all think So part competitiveness it's singular holistically and Colin. a path, attractiveness

we're well There season planting to – So is we'll we'll shortly. this summer here an now confident on in market right and move Egress be interest sounding we're open itself further South.

the with operation helps in I think chunk good And of toll. here order of underpin settlement principle a having mainline the a distance-based

for that's on Flanagan, for going We're So Houston right, former was displacing of distribution, what too. work which exciting focus customers is Houston heavy the to now into out of either big terminal and But also local have for a optionality to oil South in market. future heavy then imported declining. is export Houston coming EHOT down crude with

whole So XXX,XXX on monthly that is well already path. a into already It's here a coming path to basis moving down that used day better right? XXX,XXX focus. We're

on refineries directly there's directly path. and XX-plus - that connected So run

lots think So very of optionality which should I competitive. be

Got I'll it. helpful. That's Thanks. there. it leave

you. Thank

line TD Your the next Securities. of with from is question Ezergailis Linda

line Your open. is

you. Thank

guidance. thank for this year beyond reiterating Looking and you the

you to and And market-based below your at risk I'm interest updated you front much commentary want could was beyond? provide and a on residual floating commodity Historically perspective, earnings earnings your EBITDA how to you've that next exposures, be exposure. you sense year XXXX exposure an if us Just wondering, X% of much And limited whether it appreciated? hedged get from and are your would from other how at earnings risk might give you any to FX just at where an philosophy rate have? rates on are interest can plus of approach

Vern. it's Hi, Linda

So rolling that earnings On at risk XX X% something we metric on look we're basis, XX-month around X.X% a so today. at forward. months to

managed first well out So year of year. next in we're the half through this

we've hedging book our XXXX. for rate think started I floating

we'll both volatility to hedged and XX% flows earnings. decrease to year our have the and continue We cash hedged now about in through just

through and take So to want unpredictability the be where we'll our predictable out philosophy that year. as hasn't highly we changed go we

Thank follow-up. you. quick just a And as

other picture offerings open the little doing you to you or shippers a be bit might British yourself big more in with provide Just augmenting be capacity the Columbia. the maybe on Might might can And service Aitken your you Aitken Creek in term? of region, T-South doing transportation what long the region. and how assets on you as some T-North you physical kind Creek of enhances in be and comment well

obviously in see work the a us providing Obviously, question existing a to with of and that operate be what customers the in how to Linda. for in we area. as at assets. going opportunities opportunities we'll look at And because contracting that great you of our looking synergistic for as contracting is customers those opportunities Thanks our be to on we're infrastructure additional Yeah, say in our to that look Aitken those are that, fit space. to that great there's Part Creek we opportunity bullish space. fundamentals at

for more does Wheeling more other how existing other our with storage that. So, that. you. flexibility our operate to us Thank opportunities provide synergistic for just and on like come we assets with But it

know than the Linda, with is add Vern's Creek look little thing usually comments, contracted you we that storage at. what Icon less bit as only a had consistent I'd

XX%. our up so us that's side to as the customers excited about serve to asset. just the says, course for mainline on be two-thirds. of pretty the kind of see I focus surprised flexibility So Cynthia may lower that makes think asset don't lot look sense But a give over model. in to to of that on our closer That's beyond, -- that us and should contract us And that be LNG and even

you. Thank

Theresa of Barclays. Chen next from comes with Your line question the

line Your open. is

morning. Good

Coast that given And that system, acquired the you far? corridor over you've you of owning more interest now the can the potential you've the status front, in are liquids to lines of Corpus potentially to talk operatorship given Permian so Gulf the full? about just the of US that backdrop be taken interested to of the incremental Turning on expansion, continuing

of -- in with Hey Theresa, month. a yes last specifically answer is demand course, foreign Colin. And Yes, a pull crude. XX,XXX we of extra as competitive. which more indicative generally, so point, natural is for it's a the very is unlocked Ingleside bid so over operation our at capacity which partners your Oak to morning. took April, of our strong just that Gray day good facility well We've already

So preference shipper Many again, we're that interest will in market even dual sounding that and inform open another Ingleside will per service maybe up capacity summer. in run and We're to path. ballpark interested XXX,XXX season barrels that looking for this our integrated are there. customers or day most including expansion

which really And looking bring Permian. EHOT also that's So, over it's pretty down good. over over extend potential there's Oak could there, we the light And from and Canada Gray heavy from exciting. in the Houston to that would

picking we're in there. Gray We're get and asset through and assets the other Oak, some region. how into listen, of to minority happening about So, through some interests acquisition on our really it's excited bullish strategy the registered up what's swaps unfolding selectively, in been

If Permian you step stop. on back cannot without Canadian or world the this, from the supply-demand crude lens full Western function global

the fundamentals. So, we're following

have and heard just Got deliver it. repeatedly going that broader extend comprehensive quality barrel a neat Gulf EHOT to the importance system. segregation assets, to especially think crude are when about of if integrated able And you being discussed more as industry, something the we and a is that infrastructure a in Oak Coast to Gray follow-up, we've

lend ability to that you dedications a may competitive can advantage that commitments or do itself when talk time? and how your over So, to seeking about

needs Enbridge and I a or business protected, Yes. models. you record That's hallmark all that in is FedEx service relative on other been It our quality. a if valuable of in like, systems, that that the track we think a segregating Canada whether of be badge It's Permian commodity. have to to quality doing

are So global that's cost-effective export many integrated $X.XX addition to that we've $X.XX, Ingleside the our tools competitive of $X.XX, be in some about tools talked scheme. the offering just in to times and advantages at part of competitive material a outright

the So mentioned it's glad part all you Thanks. of that mix. I'm one.

right? the And do it I you Yeah. that be when about to choice first even is we're everything with trying think to deal, designed toll supplier. mean,

so our Gulf always deal little there's line. and main better the that give take a And, PADD the to X. on give get to customers total can to And incents income us really people a obviously, good but down sure that service use ultimately fair the to and

And what we markets. are And to out the shippers more maximize in that sure that Permian and every we're have and just of opportunity what their doing all build have trying super then best returns the competitive we're I the just think that customers make getting the to about. I actually an it's really system really we that's And think day.

Thank you.

from Your with next Markets. Robert is of question Capital Catellier the CIBC line

open. is line Your

the risk front. to good if monumental Hi, a I on the for wondered sharing would seem. congratulations of involved. I you and It looks the it a lower less here could dispersion spend morning, on deal. mainline minute risk setup me outcomes know is that's a like task for of everyone

the the volumes? just talk key collar if leverage risk are about obviously wonder could upper to you the as I what So the addition achieving end than ROE of sharing. in And biggest see what that, wins on to points other you

I Robert. can Sure it. take

of -- win. incentive house So and away our with an customers for something mean, they when want tell this is aligned And right seventh vintage I be should and them to us arrangement customers. win that you I

another things. got negotiate it, we of couple we we a we've it. or version Each tweak So renew time of

there's is the We've a collar, in package and a put it. think big risk performance in which I'd incentive mitigants of risk overall package framework. the risk acts all-inclusive. version say There's few you as I added this mini thematically a as then different itself, individual which

layers we've of here. defense So couple got of a

we Will them? seen our right? them, model. the to Maybe it's You've not. Enbridge preference commercial have need But

The managing risks we've controlled time. long So if right? volume, been one a for about That's can't we you control is risks, the these think a shipper risk.

We through full have strong it's to competitiveness remain conviction to in our views system circa and and high of the here XX% the XXX% on going fundamentals piece.

us it We've way, for new X outlook of I toll the the like Line and US it's ratchet, improved dollars the the foreign that an relatively will in by think not toll but dollars new. got Canadian exchange which isn't was. be Canadian portion There's toll

So I'd for volume remind moves every volatility to people meant temper barrels ratchet of that which $X.XXX. toll $X.XXX is toll XX,XXX right

implicit -- for principle recover X also before, it and we to was but have in think on I investments. capital now agreement of We've Line

few there's the I say, risk there's mitigants So collar and smaller mitigant. a different, bigger would then risk

narrowing it's and with so win right? Is used side that you're the again saying going right, question, solution. Does where well. as a the of with was dispersion Enbridge, Greg outcomes all, of help? kind that Robert? the intention earlier, as to fair Shipper that And all that So, you're competitive of for

piece upper And the CAR? is than was. other if point biggest volume of then what to you the think hit leverage end the it the just, It do second of ROE

Yes.

going through on slightly pretty strong count, the XXXX the throughputs it's half declining over term just XXXX volume I volumes years here strong be in and time, understood that a base. you've already. XXXX, think I and well given on have that that got we And we're first to range, then, rate here upper think, few the of think

well. So about as think that

cost. Vern's in to smaller team a ability manage That's other I it and on inflators do think, to our to is FX want lock but shippers try will that. part that the and there, manage think the drivers do that as control I power play and down and to and trying our well, be costs within as we'll what would well. us

Thanks, helpful. everyone. All right. That’s

Thanks, Robert.

question of next the Your with Scotiabank. from Rob Hope is line

line is open. Your

volume on utilization -- just It commentary XX% the six the morning, that to outlook Mainline let's A would the the for Colin over Mainline. Good question and strengthened everyone. months, on say has noted the you're the since expecting or last seem there. XXX%

you or what driving talk kind move for the kind potentially Trans toll Mainline the toll Can this to the just is on on system? Mountain it maybe of sharpening of up, of Mainline? is outlook? pencil it competitiveness potentially volume increased where where shook out Is confidence Is could the the the it

correctly. -- I conviction think, yes, So, think, our observing is you're I that

I on And substantially strength I think on let's that. Enbridge even But in refined all our at of reflect then, strengthening is tighter outlook? even here. conviction point view of Our just since happened what's utilized the Day fully

pressure for to delay, We've TMX with TMX for it increases. our questionable is likely as seen toll advanced FIMSA's points and egress. solution. come subsequent and allows good a announced those of will have cost more all off. basin to increased EHOT and understand We by which Keystone time incident TMX We've higher restrictions delayed another if or the is is delay supply, invoked FSP when

refine to getting Canadian and your are Refinery their and are And in economics more own of occurring now worse. going rail Gulf creating Gulf bigger ads for out point a the is of toll the a crude. have Coast lower bid Mexico we to

main all of I the So, competitive. outlook line our be will well that to think that utilized in leads strengthening very conviction a and

I comment. Maybe a just can add

the heavy look world. I the crude think if globally of you will competitive and the spread crack just XXX,XXX Those margin. strong go crude make in X feet PADD and to markets PADD and back strongest very are fundamentals refineries are at oil X

for heavy a those So, going Canadian forever to bid crude. refineries there's strong be from

there's to crude Colin production be elsewhere. global less And And mentioned, Mexican available. as going crude is declining heavy

it up our very customers. for So, fundamentals and strong for us lines

And that maybe and you we'll allocation, And the looks it given assets that. your it potentially opportunities been note given should maybe conditions, yield to terms in medium-sized mid-sized another existing quite this? appreciate I we'll of small your to synergies able active seeing update small invest cost in of you are then on capital operations call M&A. revenue side? us to on market you Can be to you've just call what pipeline on on on kind

balance starts course, to of strong capital got of having work we've that sure. billion Remember can Look it a sheet for about financial $X Yes, we on position right? based put that discretionary. with year our

the our So, us activities. do first that beyond And quarter. just seen you've typical in

We look everything. at

think And I on fair and market, going look say everything the look do that that think have As those. covers we if or what get a got we're from gas alternative, at we they you as we're to got assets we've already a multiple, renewables can liquids if quickly. I execute those. imagine, and those assets group good those interested And corporate is to here accretively would a development even at in. we if we well. better And haven't we of a as come list assets And can can view to execute

So, I think that folks in a are that's of lot a real Not advantage. position.

same an and The The in other to impactful would on ability Coast thing Gulf the players us. perspective. liquid have to et PE's on going that I just would dynamics is creates changed side for what's from tuck-in volumes our can probably play rates fewer. interest system greater participate Higher the say cetera. I opportunity like are has say M&A on the The it are promote and that true most on

fronts be And those if do so we'll make on them. sense, they going to we're ready

And, that can and build these actually is try versus buy know have challenging kind that the behooves to if themselves. existing does buy assets financial discussion benefits it build right? anything we sometimes of us to play good of So, both role course, of too, to then strategic days build it assets it classic we multiple how to us,

can't we of the buy let's a to bit we've back if little also shares. ability the remember, find first we and And quarter in that did got that stuff

suite financial us full that to to position strategic of those. we're best trigger and what's down comes of outcome fortunate really a for on any in and So, the outcome pull just good be to the

you. Thank

you. Thank

Fargo. Satish Your next Praneeth with Wells is question from

open. line is Your

types of you are blue lot returns if Maybe into Is rate deals. debt the the us potential ammonia rest of there's light like Thanks. still a interest backlog? of for especially these give it with returns just in financing the your usually what wind competitive? looking of I environment the projects, still Are insight on the the a competitive higher little guess, could

I absolutely. offtake. the remember we blue -- I'd project. Yes, is have mean that way still look say, we XXX% days ammonia we're on early structured and the But

model the mean, in I So that they're there fitting likes utility-like that. got of day. and we've Enbridge partner returns a fortunately in the ammonia game to day

ways And still four see nice So We got there. it is would I or out. how double-digit to that Oxy. the side our with front We've from. which got of would carbon say exported be to that ammonia [indiscernible] on the We'll is project have shakes expect that have play. sequestration, Ingle where remember the has capture three area in obviously that you joint and all returns venture

would gas then well. that we the Cynthia, And expect line build facility as into would

onshore, definitely a returns. speak to it what we're Matt, on it's But offshore same about want market depends there. to to seeing because real So augment But thing. you opportunity still we're the yes, might and talking the

sure. Yes, It's Matthew. Thanks.

announce include that if have to really remember that we So like And fuzzy counterparties. mean, did long-term the to I We Normandy wrap projects risk. they they'll contracts with can we EPC so government these be project. proceed it's project. FID, think I full very important low

that achieve to see but these and it milestone. on Enbridge earn especially there's you to now have strong of profile, return and returns So work don't that to FID course, you'll an between to of lots blowout see returns in do risk will and then style

extension. it also with in like extends just our a our we model Normandy X.X comes is and about gigawatt potential that of thing visible growth other The horizon commercial

one growth will it. an inside potential of have that projects track be for with of But type too. So has associated organic these competitive. That we'd the obviously, extension kind

projects other like well on do earning all in areas. to of kinds our have as hurdle we really renewables we the as So count these they the over and rate

solar TGE's right? mean, continue front to those up. to acquisition You're projects heat really seeing good and returns too is I on starting proceed the

We're as tax acquisition seeing TG just apply we're mentioned this the and tailwinds of at that the quality prospects year us seeing on do from onshore was getting portfolio. pretty our of too. great for benefits projects those expect Day. We the Enbridge Yes, FIDs I time later organic out we're also

optimistic well. on that as front pretty we're So

And helpful. That's Thanks. gears. switching

You've recent gap? organically greenfield I still storage think acquire enough of expansions it's think assets. done gas of I buying storage storage? it you versus or storage. for growing months storage, that clear market in is value do acquisitions economics cheaper there's how And are two now of wide gas about to the it high guess is rates How building support the to

question. the for Thanks Yes.

monitor to continue think we I that.

we're look out as about you So that opportunities, going in the value increase. with is XX noted the storage, to we continue see to with LNG years to excited as five that you next more

as we'll the prudent ties there makes we've look economics. and where opportunities there geological with far so assets to bit more obviously out our you think storage allow when you you it be our be into it sense of up have to two area the if discipline As But existing formation some that done remember that in we you time thresholds opportunities we we're do little to out it but particularly build come build that have at meets the have that this going to storage. have that. very kind the a investment like right to And to takes participate, in and space we've noted, to run long capital acquisitions, will for the when

earlier, you're But you there'll spaces. sure I scenario make opportunities buy noted positioned both Greg in be as build to So well. have look think and at that versus

Well huge storage. basin I like a we have

course the team of Cynthia the increasingly people XXX think Lakes then so Bs pushing up and well. I region. sometimes the front. important just as That forget Great in So on the that we're – becomes of And storage critical picked LNG assets

still permitting. But storage for environment. in you how to even get is the in have we permitting And know new challenging

we to So again first at going goes back it digit and that. to it the That's quarter. earn done single double-digit returns – it we've buy what we're do if can in

Got it. you. Thank

Praneeth. Thanks,

Ben the next of BMO. Pham [Operator question with is Instructions] Your line from

line is open. Your

your that to fill CapEx up it thought to post accelerate the your think How in I frame hard be time CapEx going on $X billion your looks placing a each with are And CapEx? that? process maybe high-level going on dramatically. you to over last at do about you've And secured year. some Okay. What's constraint opportunities. of Thanks. towards that change not $X Good – is you it's managing like to maybe billion. growth that that backlog maybe off XXXX quarter, it like projects your the the look morning. had the highlighted and start you capital And seems

on I I'll we've creates here. in great best and tasked got is competition. we've that let the – remember, tell you own mean returns adjusted – businesses one the with perspective, are their units four I'll of possible. business chime it's Vern great. that my from big each Well But risk getting got businesses all And it's really

the we when easy. So will go. where sit lowest risk down a pretty team with Where are at it's look returns and and it that's best the as it

think folks and future. keeps with everything And we that sharp I won't do on and folks focus so pencil keen very the a a it and means development execution the the business

to the I here. time we and of up of stuff against guess adds don't it so could great every year the we recycling continue to out build if done We've over that forget, of in billion do capacity as a earnings. $X course, And obviously ran And we so well. job some the

folks to bring them. going you So look at I accretive that financing recycling. model the self-equity way Look, and or our it is think whether earnings at to a you are do find if our look as the to just we're growth projects

key is we great position balance our we're at to our X.X times. grow as sheet covered Greg continues in points, right the of think EBITDA And our capacity sheet most I balance We're now. The grow. Ben.

we're Greg that XXXX, right. if growing actually today do more rate is than we the post we absolutely So have sheet balance today. at capacity grow continue to we'll at And

attractive recycle to that's stakeholders. since hoping group, I did we And scenario over our forward us I'm and we opportunities We deals because XXXX, an push continue recycled capital. forget think with we can those continue for Athabasca on we've win-win-win more like billion. Don't of indigenous to a with and basis more do $XX will

agencies that this agreement? comment way is maybe that structured And the years. effectively the in you've on And rating for their off X-plus you the color utility finish to mainline, a anything thoughts asset on here credit Okay. can

I light it, you the think of got I agreement. I think most utility Yeah, earlier Ben incentive as version it's mentioned an

So floor. to opportunities we've we've and got return got outperform

rating we to do both potentially that? but the on credit cover perform hard worlds, the to and you our the of hassle best customers serve best it's we're can. issue, going So to Vern want

Yeah.

America. North this business We the -- pipeline we've profile risk it deal lowest I even for major with have currently And companies lowered further. midstream think in

regular So positively. is with active this the agencies upon we're -- rating will in definitely and be looked dialogue

you. Great. Okay. Thank

is from Credit line with Kuske the of question Suisse. next Andrew Your

line Your is open.

morning. storage the greater business with rise Good could and If America. across Thanks. a we back natural gas the renewables intraday some given of your maybe gas of to just North activities just come acquisition call on

the of on in pipelines. down is associated existing do it that? really break operational number of more base I of assets with number a orientation? rate your storage you opportunities And construct and really merchants what If a asset are guess, base within how then you have much of kind

Well, maybe it and just -- I'll start Cynthia in. then can jump

starting storage. So of for the needs see some right. I the to we're you're mean exactly,

right I'm word. the sure So merchant is not

two one the So it's on But remember, contracts or Aitken run typical our side. years. Creek

year There we last so. rates while But it's contract So XX% are our storage for the a and been because going while gone some there. XXX% positive relatively to term. is that's deals I typically to think continue in or short storage longer up over really it have you've that up seen market-based

really that's So great. been

been the there. able utility right, it's of then including results And in the you're Great Lakes a but -- storage region good this XX in realize based market well lot quarter XX we've there as XX is to in Bcf about of first that there's and today to

Cynthia add that? if you to to want

that we've mean, to seen add strong pricing. I'd obviously pretty some I it when opportunities only comes Yeah.

little while, pushing pricing XXX% our we're last and as some in even to we've of a XX% longer. seeing terms increases the over So seen

creating note So would any that this you call economics. naked what that We're always And getting that would right? I don't exposures stronger is match. space, we in have

with space those. So that in does balanced create contract that it exposure as we

a in exposure the Okay. some some naked base, space. do That's scale very There you balance think exposures the marketplace? the from in then and the the helpful. Do into you asset extension. of the so And then those advantage just are itself gives an have your grid sheet it sheer who have opportunities come that maybe do bigger nice just maybe pipeline taking should assets

say would to want first earlier, mentioned be I our choice What customers. Greg Yeah. for we as the

at ability we're we that to our always So leverage how can looking infrastructure. optimize full

So some got Palacios Tres pipeline. the particular we storage, with of great great, because interconnectivity in along really is

we out sure this stable to well. So together long-term customers that is in incremental value how we're as making that for that but providing us, building tie for return our

Okay. Thank much. you very

the will Morley the call turn over for now gentlemen Rebecca question-and-answer session. Ladies final this to concludes remarks. and I

ongoing you we appreciate and your Great. Enbridge. in Thank interest

additional Investor Once great questions and Relations our team is you following thank have any available always may day. a the again call you As that have. for

participation. and we your concludes gentlemen, conference. appreciate Ladies This today's

may You now disconnect.