• EBITDA: Record EBITDA with a 13% increase over 2023, exceeding $5.1 billion for the fourth quarter.
• DCF per Share: Increased to $1.41 for the quarter, approximately a 10% rise over last year.
• Adjusted Earnings per Share: Rose to $0.75, reflecting a 17% increase over the same period last year.
• Total Shareholder Return: 37% total shareholder return in 2024.
• Dividend: Increased for the 30th consecutive year.
• Organic Project Backlog: Over $8 billion added, with approximately $3 billion of annual utility investment.
• Asset Sales Proceeds: Approximately $3.2 billion from the sale of interests in Alliance, Aux Sable, and East to West Thai line.
• Leverage Target: Maintained at 4.5 to 5 times.
• Gas Transmission Throughput: Over 24 Bcf per day delivered.
• Liquids Mainline Throughput: Averaged 3.1 million barrels per day.
• Gas Distribution and Storage: Delivering over 9 Bcf per day to over 7 million customers.
• Renewable Projects Sanctioned: Approximately 1.2 gigawatts of new solar projects in 2024.
• 2025 Guidance: Adjusted EBITDA between $19.4 billion and $20 billion; DCF per share of $5.50 to $5.90.
• Capital Backlog: $26 billion with $5 billion of assets placed into service in 2024.

• Warning! GuruFocus has detected 11 Warning Signs with ENB.
• High Yield Dividend Stocks in Gurus' Portfolio
• This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
• How to calculate the intrinsic value of a stock?

Release Date: February 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Enbridge Inc (NYSE:ENB) delivered record EBITDA and DCF per share in 2024, with a 13% increase in EBITDA over 2023.
• The company increased its dividend for the 30th consecutive year, maintaining its status as a dividend aristocrat.
• Enbridge Inc (NYSE:ENB) closed the acquisition of three premier US natural gas utilities, creating the largest gas utility franchise in North America.
• The company added over $8 billion of organic projects to its backlog, diversified across all four of its franchises.
• Enbridge Inc (NYSE:ENB) achieved its 19th consecutive year of meeting or exceeding financial guidance, highlighting the stability of its business model.

Negative Points

• The company faces potential challenges from tariffs, which could impact economic growth and energy demand.
• There are concerns about the political and regulatory environment, particularly regarding major infrastructure projects like Northern Gateway.
• The renewable energy sector has seen public equities underperform, which could impact future investments.
• Higher average interest rates and debt balances from recent acquisitions resulted in increased financing costs.
• The Calvados offshore project in Europe is delayed, now expected to enter service in 2027, later than originally scheduled.

Q & A Highlights

Q: With the Western Canadian Sedimentary Basin (WCSB) production and growth opportunities, how do you see this unfolding over time, and how large could it scale? A: Gregory Ebel, President and CEO, noted that there are great opportunities for production growth. Enbridge is focusing on quick-hit, permit-light, low-multiple brownfield activities on the Liquids front to serve markets on both sides of the border. Colin Gruending, EVP and President of Liquids Pipelines, added that production is surprising to the upside, with debottlenecking and optimization efforts underway. Demand remains strong, and infrastructure opportunities are present from regional mainline market access to export.

Q: With the new regime in D.C. and different policies towards energy infrastructure, what does this mean for Enbridge, particularly around Line 5? A: Gregory Ebel emphasized that Enbridge's diverse portfolio, including Liquids, natural gas, and power assets, positions it well. A rational approach to sustainability issues, taxation, and permitting reform is expected to be critical. Despite tariff concerns, the hard wiring of the North American energy system suggests minimal material impact.

Q: What is Enbridge's appetite for investing in a long-haul liquids pipeline in Canada, such as Northern Gateway or a line going East? A: Gregory Ebel stated that Enbridge is focused on broader themes like production and demand growth rather than day-to-day political changes. For projects like Northern Gateway, significant legislative changes at federal and provincial levels would be needed, including identifying such projects as being in the national interest and eliminating regulatory hurdles.

Q: How does Enbridge view the renewable energy sector under the new administration, and what could it mean for reducing the gap between DCF per share and other per share metrics? A: Gregory Ebel and Matthew Akman highlighted Enbridge's low-risk commercial model in renewables, focusing on fully contracted power with high-quality counterparties. Despite challenges faced by public companies, Enbridge sees opportunities and strong returns, with renewable investments being accretive to cash flow and earnings per share.

Q: How has the integration of US gas utilities progressed, and are there early signs of growth opportunities? A: Michele Harradence, EVP and President of Gas Distribution and Storage, reported that integration is going well, with benefits seen in customer solutions and growth opportunities. The anticipated growth is present, with strong customer additions and modernization efforts. There is a notable tailwind from electrification and power generation, particularly for data centers.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.