Enbridge Q2 profit rose to C$0.58/shr on record gas backlog and higher Mainline volumes. The company sees a C$5B-C$6B pipeline of projects entering service over three years.
Enbridge Inc. posted a rise in second-quarter profit on Thursday, driven by higher liquids pipeline volumes, a record backlog in its gas transmission business, and contributions from recent renewable power acquisitions.
The Calgary-based midstream giant reported adjusted earnings of C$0.58 per share for the quarter, up from C$0.53 a year earlier. Distributable cash flow came in at C$1.20 per share. Analysts had expected C$0.57 per share.
The company's liquids pipelines segment delivered the quarter's biggest lift. Mainline volumes averaged 3.08 million barrels a day, versus about 3 million bpd in the year-ago period. The segment is benefiting from a more favorable tolling framework on its Mainline system, which took effect in late 2025, and from higher throughput on its Flanagan South and Seaway systems tied to Permian growth. CEO Greg Ebel said on the call that the company expects a C$10 million to C$30 million uplift per quarter from the new Mainline toll structure.
On the gas side, Enbridge's U.S. gas transmission business reported adjusted EBITDA of $1.139 billion, up from a year earlier. The unit has a secured capital program of C$8.2 billion, much of it tied to expansions of the Texas Eastern system and the T-South project in British Columbia. The company is also leaning into the data center and AI-driven power demand story, with two new projects in the quarter: the Sarnia Hub natural gas storage expansion and the Blackstone-backed Ohio River Valley Junction project, which connects the Marcellus and Utica basins to an Appalachian hub.
Power was a smaller but growing leg. The segment posted adjusted EBITDA of C$420 million, up sharply from C$310 million a year ago. That rise reflects contributions from three offshore wind U.K. projects that were commissioned in 2025, including the Saint-Nazaire and Fécamp lease extension sales. The segment also includes an incremental C$50 million from the sale of carbon credits in Alberta.
Enbridge raised its dividend by 3.2%, in line with its long-term target of 3% to 5% annual growth. The quarterly payout now sits at C$0.9475 per share.
The company kept its full-year guidance intact: adjusted EBITDA between C$19.4 billion and C$20.0 billion, and distributable cash flow per share of C$5.50 to C$5.90. Executives said they are comfortable delivering near the midpoint. Pat Murray, the CFO, noted that the balance sheet remains within the company's target of 4.5 to 5.0 times debt-to-EBITDA after closing the C$3.0 billion purchase of a 20% stake in the Gray Oak pipeline during the quarter.
The data-center angle
Enbridge is positioning itself to benefit from rising power demand from data centers, even though it does not own generation assets directly. The company has been developing pipeline lateral and storage projects that supply gas-fired power plants serving data center hubs. The Ohio River Valley project is one example; a second, the San Patricio expansion in South Texas, will feed the planned Rio Grande LNG export facility and regional power demand. Ebel said the company is in active discussions with
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