Enbridge Books Record Core Earnings on Power and Gas Demand

Enbridge posted record core earnings, or EBITDA, for the second quarter of the year on the back of strong liquids flows through its pipelines and soaring demand for power generation and feedgas for LNG in North America. 

The Canadian pipeline giant on Friday reported record adjusted EBITDA of U$3.36 billion (C$4.6 billion) for the second quarter, up by 7% from a year earlier. 

The company expects to finish the year in the upper end of its adjusted EBITDA guidance range, president and CEO Greg Ebel said. 

Enbridge’s adjusted earnings rose to US$1.01 billion (C$1.4 billion), or US$0.47 (C$0.65) per common share, up from US$870 million (C$1.2 billion), or US$0.42 (C$0.58), per common share for the same period of 2024.  

The C$0.65 earnings per share beat the analyst consensus estimate of C$0.57.  

The higher Q2 earnings that also beat Wall Street expectations were the result of strong liquids flows on the Mainline system which Enbridge operates. The pipeline system moves more than 3 million barrels a day of crude oil and liquids from Western Canada to the demand markets in the United States. In total, Enbridge moves 40% of all North American crude. 

But surging power and gas demand is also contributing to higher profits. 

“We are capitalizing on growing power demand and strong natural gas fundamentals,” Ebel said in a statement. 

Enbridge has recently approved the 600-MW Clear Fork solar project in Texas that will support Meta’s data center operations.   

In British Columbia in Canada, Enbridge is expanding Aitken Creek—the only underground natural gas storage facility in the province. The expansion will provide enhanced flexibility for Enbridge’s LNG related customers as Canada’s first LNG export project has just started operations. 

“We remain excited about our suite of opportunities in natural gas, liquids, and power infrastructure, and are well set up to win in multiple ways as we deliver energy to our customers across North America,” Ebel noted.   

By Charles Kennedy for Oilprice.com

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