ENB

• Overall Growth Outlook & Opportunity Set

  • Management reports the current energy industry environment is the strongest for Enbridge growth in recent memory, with $50 billion in total organic growth capital opportunities available through 2030, and $9 billion in projects already sanctioned in 2026, on track to reach a target of up to $20 billion in new project sanctions across 2026-2027.
  • The company emphasizes its "all-of-the-above" energy strategy, positioned to meet growing demand for both fossil fuel and renewable energy infrastructure across North America, with an incumbent footprint that creates operating leverage and attractive project returns.

• Liquids Pipelines Operational Updates

  • Commissioning of the Blackcomb pipeline began during the quarter, on track for full in-service date (ISD) by the end of 2026; the Enbridge Houston oil terminal also entered service, and the Wisconsin Line 5 relocation project was sanctioned (a $1 billion investment with expected ISD in early 2027).
  • Enbridge serves ~50% of Alberta oil sands production via its regional network, with existing latent capacity that can be optimized to support growing production; its Southern Lights condensate import system brings 200,000 barrels per day into Canada, and the Norlight distribution system has additional available capacity to meet future diluent demand.
  • Construction is advancing on mainline optimization phase one and the southern Illinois connector, which will add 180,000 barrels per day of incremental egress capacity, the first Canadian liquids U.S. expansion to reach FID since 2017.

• Gas Transmission Operational Updates

  • The open season for Project Beacon (Northeast U.S.) significantly exceeded initial demand expectations; the project is being advanced to binding commitments with permitting ongoing, with strong demand from power generators, utilities, and data centers.
  • Enbridge signed an exclusive option to acquire the TTC Connector pipeline on the Gulf Coast (connecting its Trace Palacios storage to Freeport LNG), fully underpinned by long-term take-or-pay contracts with BP, with option execution expected when the facility enters service by year-end 2026. The Bay Runner Twin project (serving Rio Grande LNG) was sanctioned, and the $4 billion Sunrise expansion of Enbridge's BC pipeline system began construction.

• Regulated Utilities Operational Updates

  • All four utility operating jurisdictions have supportive regulatory frameworks that enable timely capital recovery and stable, predictable returns, supporting continued rate-based growth, particularly in higher-return U.S. markets.
  • The Enbridge Gas Ohio rate case is progressing, with a constructive staff report received in July 2026, targeting a settlement for new rates effective early 2027.

• Capital Allocation & Balance Sheet

  • Capital allocation priorities remain unchanged: the company equity self-funds growth, maintains a strong balance sheet, and prioritizes dividend returns to shareholders; the company has returned $38 billion to shareholders over the past five years, and expects to return $40-$45 billion over the next five years.
  • End-Q2 2026 debt-to-EBITDA was 5.1x, driven by quarter-end FX movements; adjusting for currency impact, leverage is within the company's 4.5-5.0x target range.

• Management reaffirms the full-year 2026 guidance originally issued in December 2025.
  • The company expects 5% annual growth through the end of the decade, supported by its $50 billion total opportunity set, with the 2026-2027 $20 billion sanction target filling only a portion of this available white space.
  • Management expects to remain near the top of the 4.5-5.0x debt-to-EBITDA target range through the back half of 2027, as large volumes of projects enter service in that period, after which leverage will trend toward the lower to middle part of the target range on a run-rate basis.

Overall adjusted EBITDA for Q2 2026 increased over $130 million year-over-year compared to Q2 2025, driven by high utilization across all four business segments.

1. Liquids Pipelines: Higher spot volumes on the Seaway pipeline, stronger volumes on the mainline and Line 9, and optimization initiatives drove a year-over-year EBITDA increase, partially offset by lower Line 9 tolls. Mainline volumes averaged 3.1 million barrels per day for the quarter.
2. Gas Transmission: A constructive rate case outcome at East Tennessee and a phase step-up from the previously announced Texas Eastern rate settlement drove higher EBITDA.
3. Gas Distribution and Storage: Higher base rates following recent rate cases for Enbridge Gas Utah and North Carolina drove improved performance. Enbridge forecasts >8% annual rate base growth across its utility portfolio, ranging from 5%+ in Ohio to 19% in North Carolina, with 8% growth in Utah.
4. Renewable Power: The segment has over 2 gigawatts of power generation under construction across North America and Europe, with 1.4 gigawatts of solar/wind capacity and 1.6 gigawatt-hours of battery storage contracted through a long-term partnership with Meta, plus over 1.5 gigawatts of additional contracted development opportunities with blue-chip counterparties.

• Geopolitical volatility and commodity price swings have created a uncertain backdrop that has slowed producer commitments to large-scale long-term pipeline projects, requiring Enbridge to adjust project sequencing and scope.
  • Permitting risk remains a key hurdle for new gas transmission projects, most notably Project Beacon in the U.S. Northeast, and the company maintains strict discipline to manage this risk.
  • Proposed rate freeze legislation in Ohio creates near-term uncertainty around the Enbridge Gas Ohio rate case, though management notes the legislation missed key procedural deadlines and is not expected to gain traction, while remaining focused on addressing broader customer affordability concerns.
  • Regulatory frameworks in British Columbia for natural gas projects currently do not support returns as high as management targets, creating a headwind for expansion opportunities in the region.

Q: Can you add detail on why the MLO2 mainline expansion opportunity has shifted to a resequenced scope, when can we expect clarity, and how much latent capacity do you have in the regional oil sands network? / A: The shift is not driven by lower demand or higher costs, but by slower-than-expected implementation of new Alberta oil and gas production policy, plus commodity price volatility that has made producers cautious about committing to large-scale projects. Enbridge is resequencing MLO2 to prioritize downstream Chicago South market access expansion first, which has simpler scope and better near-term economics, and will address upstream mainline bottlenecks later once policy and demand clarity emerges. The company has meaningful latent capacity in its existing regional oil sands network, with some targeted small-scale incremental investments expected in the near term to support early production growth, plus existing excess capacity on its Southern Lights and Norlight condensate systems.

Q: Project Beacon open season exceeded demand expectations; can you expand the project scope or add a second phase to accommodate excess interest? What return profile can we expect for new projects going forward? / A: Project Beacon in New England is expected to be multiple times larger than the current 70,000 barrel per day Algonquin enhancement project, developed in multiple phases given very strong unmet demand for gas capacity to support power generation, reduce customer costs, and transition away from oil-fired power. Management targets a 100 basis point increase in overall return on capital employed across the business, driven by brownfield project focus, scale benefits that lower construction costs, faster regulatory progress, and stronger customer demand that improves contract terms; this 100 bps uplift creates meaningful incremental value given Enbridge's large enterprise base.

Q: How has Enbridge built its Permian gas position, and what is your growth strategy for the basin? / A: Enbridge has intentionally built its Permian gas position over the past few years starting with the Whitewater assets, recently adding the sanctioned Bay Runner Twin expansion to serve Rio Grande LNG. There is additional upside for expansion across the existing Permian asset base, including storage expansion, and further opportunities to move Permian gas downstream through the existing Texas Eastern Gulf Coast footprint to LNG export facilities, industrial demand centers, and power markets. Enbridge is also expanding Gulf Coast natural gas storage capacity, with ~50 BCF of expansion underway at its wholly owned facilities to support growing basin output.

Q: What types of projects make up the remaining $11 billion of the $20 billion 2026-2027 sanction target, and which segments will drive the bulk of future sanctions? / A: The already sanctioned $9 billion is heavily weighted toward liquids pipelines and renewables, with a smaller contribution from gas distribution. Management expects the majority of future project sanctions over the next 12-18 months will come from gas transmission, with opportunities across the Northeast, Gulf Coast, and Southeast U.S. to meet growing demand from LNG exports, power generation, data centers, and industrial onshoring. Gas distribution will also contribute solid growth from rate-based expansion driven by population and industrial growth across U.S. markets, with as high as 19% annual rate base growth in high-demand markets like North Carolina.