ENB.TO - Earnings call 1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, welcome to the Enbridge Inc.

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. begin. may you Rebecca,

Rebecca Morley

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

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

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

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

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

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

Gregory Ebel

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

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

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

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

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

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

our along partners, across utilization Renewables, saw the recordable and of year awarded we our CPPIB, delivering our of safety total excellent incident quarter to our every frequency wind systems have continually of a track great EDF all of In offshore we doing we committed our lowering were We strong And Across record growth visible mainline farm, target Normandy and volumes. X-gigawatt profile. remain and consecutive so. adds to which corporation, delivered with performance. record course, second the

new in few note guidance report all, later areas on. our near-term month. new The can towards and But settlement our this strong sustainability Vern our mainline and and will out support goals touch multiyear would focusing on outlook. growth I quarter. initiatives see expect tolling all our ESG our you All a that progress to another we're strong highlight

the financial touch quickly So highlights. let's on

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

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

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

will at competitive secure come. scheduling will toll. for access customers safe, society it's Choice status will on up risk-adjusted system, a mainline to mainline monthly and performance standpoint, and all available Enbridge to as and to affordable earn receive energy a another Our QX a standards have returns quo. shaping years First will customers common service attractive has Year-to-date, basis. carrier been to continue solid is nomination strong The quarter. volume a be From

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

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

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

deal, we've want everyone here a our of results. the approval line line with But page, you We of that specifics appreciate to and today settlement new is and to The ahead, a settlement. I to see our been filing we're right-hand lot involved. all the outcome can looking with before the the have and of are provision the CER our and final guidance the good recording end side parties is answer under the On FERC toll deal. in new that And this that we're questions. application with hope bottom some the to your a finally, financial maintained from year. is take And away there's financial of for can in the outlook all expectations new the and digest this

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

to ammonia an per opportunity XXX% secure we entire with backed a set, for Enbridge X.X network. the on produce volumes the up of Oak exciting the In million the which of addition ammonia, Yara Subsequent blue and facility In jointly long-haul continues demand to system. securing optimize to construct to This blue quarter, signed LOI throughput of we the to year Ingleside also that expected tons agreement. is we operatorship on Flanagan to low offtake opportunities look Equally March, Gray at South, our carbon pipeline, Energy long-term Center. will production to the by grow. would facility is end a took

our announced carbon a of Carbon capture We're to Oxy Low part with planning partnership Ingleside construct and Ventures. hub previously also as near sequestration

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

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

of let's developments transmission So some our business. in the move gas to on exciting

is of we engineering binding the Last week, second with half we're on to In export second relaunch facility this our our from well looking offering that Storage closed season Fortis. Gas a Aitken customer a in positioned interest. are U.S., customers successful the just emission will Eastern BC the open world. service T-North Also Creek for in year. our support of of acquiring on work enhance using Pipelines to LNG export And region power, in expansion Canada, we're the renewable asset and announced pleased wood strategy. hydroelectric and progressing a fiber Texas is lowest note, by season open in the we've wood LNG be will and on The LNG schedule. fiber Appalachia This

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Vern Yu

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

we case with our row, remain For the Gas and X utilization and a utilized settlement. from in future. into confident mainline over Texas our QX are averaged the Season volumes system settlement, will well highly day included the FERC transmission higher recent second rate high, revenues barrels remained million new approved tolling quarter per

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

has the high benefited more Energy prices during same softened business normal QX commitments renewals compared levels extremely XXXX. returned in Our power At prices our this year. European backwardation These transportation to market have to and from Services, last year. period expired

Enbridge indigenous of benefited dollar, to line, our U.S. navigate maintenance also offset Athabasca volatility coming market performance businesses. well our stronger higher NCI interest quarter a the higher contributed to from be operational on partnership, EBITDA. and saw in timing rates flooding capital distributions Below first to we The higher from from as investment the the rate the strong which positioned quarter. continues partially debt,

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

more typically are at seasonality flows are transmission and the heating months. majority colder system, and let's utility, about talk days. the winter, our QX Similarly, So a business. are the gas our QX strongest the financial days there and more of our take into weighted of peaking moment on towards degree gas quarters

take liquids means fall, their In spring place the deliveries which period. this our business, refinery lower turnarounds are the during typically in and

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

So let's now. talk about that

we're provided expectations mainline Greg XXXX is the As baked mentioned, plan. and was our guidance settlement toll our we reaffirming with last line The November. provision that in into our that

We're expecting dollar all performance our across strong results. for of provides and tailwind the continued U.S. a businesses operating slight our stronger

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

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

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

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

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

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

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

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

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

on move to that Let's now.

capital allocation are unchanged. priorities Our

us the Our capital priority to while leaving shareholders flexible sheet. dividend a We'll payout to X.Xx, #X plenty sustainable continue dividend, QX is capital return maintaining maintaining through growing of XX% to within and XX% balance to secured a our room strong, program. range. debt-to-EBITDA was execute our

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

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

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

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

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

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

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

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

our billion. we linked financings over about largest in to $X.X sustainably-linked history billion. sustainably quarter, This bond This U.S. brings the total $X issued at

we tracking for are diversity for an environment ourselves, we're these goals. work and At to representation dedicated our inclusive against set creating workplace goals all inclusion, well employees. we've On and of Enbridge, ambitious

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

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

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

Gregory Ebel

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

and approval, positions behalf. toward growth plans. a results our of and strength to predictable and growth withstand key low-risk moving customers' guidance laser-focused settlement executing tolling continue We're operate deliver us our our still and market program on volatility industry sheet and your our remain and mainline outlook to Enbridge's also now model. only growth on to our better we model on license unchanged, ESG are balance leadership but consistent the not serve equity positioned even good self-funding within practice in With commercial at Enbridge the growing. component And is

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

Operator

first the Jeremy of Tonet line from Instructions] [Operator with question Your comes JPMorgan.

Jeremy Tonet

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

Gregory Ebel

question. Good Yes.

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

Vern Yu

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

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

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

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

Jeremy Tonet

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

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

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

Colin Gruending

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

So this right south. planting in operation the is we're shortly. egress we'll sounding market here There chunk move settlement underpin mainline summer interest in of and a now here toll. the further good think we'll be I helps distance-based order an well, -- open to on a itself, principle season And of we're confident having with

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

of heavy export of future then market. the optionality also Houston But out for

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

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

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

Operator

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

Linda Ezergailis

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

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

Vern Yu

Linda, it's Vern.

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

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

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

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

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

Linda Ezergailis

follow-up. And just as a quick

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

Cynthia Hansen

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

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

Unknown Executive

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

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

pretty that asset. So excited about

Operator

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

Theresa Chen

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

Colin Gruending

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

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

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

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

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

fundamentals. So we're the following

Theresa Chen

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

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

Colin Gruending

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

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

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

Vern Yu

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

actually service And Gulf on PADD a so doing And but better X. down just can our to sure, good people customers then there's and Permian, that we're And us to take, that's the returns customers use all to give markets. the what And more that ultimately we main little trying the every incents I are the and total system super obviously, give it's the the have shippers a that and think always and income really about. just think of to deal, day. their that best to fair have that get out really the really opportunity maximize we're make line. build in an sure And competitive I what to getting we

Operator

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

Robert Catellier

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

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

Colin Gruending

Robert. take Sure, I it. can

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

individual of couple as the big a we which of a it. we another Each as then We've and things. you negotiate tweak kind framework. a it. incentive put a got I think, there's package, we've different we few mitigants of thematically of added risk in all-inclusive. acts overall time So version There's this itself, risk or renew performance mini is which version I'd in say the collar, it, risk package

but we've of here. defense So them? right? not, Enbridge couple need Will layers to have the we a got of them, preference Maybe it's

You've model. our seen commercial

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

portion We views have remain full here an outlook conviction to improved to on exchange toll dollars, by was. of think system, high XXX% X dollars it Canadian it's of ratchet, There's toll piece. got the Line and strong for isn't Canadian circa competitiveness the us through be the in the relatively foreign new, not which going We've fundamentals new. that toll like and U.S. I the XX% and will in it's way, the our but

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

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

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

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

Robert Catellier

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

Colin Gruending

Yes.

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

So about well. that as think

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

Operator

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

Robert Hope

for it on you're since months, strengthened what commentary the on would this tools the system. volume kind of Trans just mainline utilization It X outlook seem out where say, maybe talk there. you question Mainline? or potentially -- of the sharpening Mainline the pencil driving let's Colin the it Or A of is just to competitiveness shook the Can for the potentially noted where and move kind XX% is Is could outlook? the that the has Is toll Mountain last mainline. over on confidence the on the volume it increased expecting up? the

Colin Gruending

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

TMX it invoked here. what's delay the likely delayed, We've is view of in understand just incident will is supply, point Day, outlook? Our that. of of for by for another cost basin reflect We happened with when subsequent have FIMSA's But those even questionable conviction on restrictions to time let's since all [egress]. pressure all to TMX is come more utilized or TMX which strengthening off. and good substantially think strength point increases. Keystone as then, fully if higher increase the a seen And Enbridge at allows tighter is tolls I announced our and on I even delay, refined

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

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

Vern Yu

can I a add Maybe just comment.

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

available. from bid for those Colin be strong elsewhere. is Mexican heavy forever heavy crude. going there's a be crude refineries declining production less mentioned, Canadian And as And to going there's crude global So to

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

Robert Hope

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

Vern Yu

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

in quarter. just first beyond do everything. at And our the that seen So activities. you've look We us typical

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

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

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

And going discussion if to them. too, And do ready versus course, of those make so be sense, fronts right? they build buy on of we're classic multiple we'll

these challenging of and So days that we benefits actually build the is both buy does did that buy it financial we in try we've us, let's that we play can't know assets that us find build to back also if strategic stuff, And it the assets little anything remember, and to to to behooves themselves. bit sometimes, quarter then how it of got shares. if kind the to a we first role good existing can have ability

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

Operator

is Satish question from next with Praneeth Your Wells Fargo.

Praneeth Satish

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

Vern Yu

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

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

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

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

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

Matthew Akman

It's Yes, sure. Matthew. Thanks.

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

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

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

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

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

Vern Yu

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

Matthew Akman

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

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

Praneeth Satish

switching That's gears. helpful. And

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

Cynthia Hansen

question. Yes. the Thanks for

we that. monitor think I continue to

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

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

to kind have geological that. formation And do the that you you you of to right have have remember to allow area to

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

Vern Yu

we have basin a like storage. Well, I huge

well. assets the So that in sometimes you Bs LNG have Lakes the on environment. important the And critical course, so I pushing permitting. for get Cynthia region. Great then think up, how becomes picked in people XXX and new challenging permitting the But in to storage just know is of increasingly forget as front. we're And of team the we still -- even That storage,

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

Operator

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

Benjamin Pham

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

Gregory Ebel

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

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

if so with think And do capacity in continue could and the we recycling folks execution of it great forget, and I pencil we so year, of so on we very every that done stuff a to earnings. against We've obviously, that job the course, over the And business won't development guess a the means the billion well. build some $X the everything, a we up I focus adds out, folks ran as and of future. it sharp do here. And keeps to time keen don't

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

Vern Yu

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

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

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

Benjamin Pham

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

Colin Gruending

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

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

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

Vern Yu

Yes.

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

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

Operator

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

Andrew Kuske

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

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

Gregory Ebel

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

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

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

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

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

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

Cynthia Hansen

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

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

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

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

Andrew Kuske

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

Cynthia Hansen

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

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

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

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

Operator

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

Rebecca Morley

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

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

Operator

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

disconnect. now may You

Enbridge (ENB) 5 May 232023 Q1 Earnings call transcript