For Q1 2025, Enbridge reported GAAP earnings of C$2.3 billion ($1.65 billion), or C$1.04 ($0.75) per share, up from C$1.4 billion ($1.00 billion), or C$0.67 ($0.48) per share, in the same quarter of 2024. Adjusted EBITDA rose 18% year-over-year to C$5.8 billion ($4.17 billion), while distributable cash flow increased by 9% to C$3.8 billion ($2.73 billion). These gains were largely attributed to increased throughput on the Mainline system, which delivered a record 3.2 million barrels per day, and the integration of U.S. gas utilities acquired from Dominion Energy in 2024, boosting gas distribution earnings to C$1.6 billion ($1.15 billion) from C$765 million ($550 million) the previous year.
Enbridge continues to invest heavily in infrastructure to support future growth. The company sanctioned up to C$2 billion ($1.43 billion) for Mainline capital investments through 2028, aiming to enhance reliability and maximize throughput. Additionally, Enbridge announced a definitive agreement to acquire a 10% equity interest in the Matterhorn Express Pipeline, a 2.5 bcf/d natural gas pipeline connecting the Permian Basin to Katy, Texas, for $0.3 billion. The Traverse Pipeline, a joint venture project designed to transport up to 1.8 bcf/d of natural gas between Agua Dulce and the Katy area in Texas, was also sanctioned, with Enbridge holding an effective 13.3% interest .
Despite these positive developments, Enbridge faces several challenges that warrant attention. Interest expenses rose significantly to C$1.3 billion ($0.93 billion) due to higher outstanding debt levels, and depreciation and amortization costs increased to C$1.4 billion ($1.0 billion), reflecting recent capital expenditures . Legal challenges, including those related to the Line 5 pipeline and Dakota Access Pipeline, pose potential risks to operational continuity and could result in financial liabilities.
Furthermore, the company's renewable power generation segment experienced a decline, with adjusted EBITDA decreasing by C$38 million ($27 million) compared to Q1 2024, primarily due to weaker wind resources at European offshore wind facilities . This highlights the execution risks associated with expanding into new sectors and the importance of diversifying energy sources.
Enbridge reaffirmed its 2025 financial guidance, projecting adjusted EBITDA between C$19.4 billion and C$20.0 billion ($13.9 billion to $14.3 billion) and distributable cash flow per share between C$5.50 and C$5.90 ($3.94 to $4.23). The company also maintains its multi-year financial outlook, anticipating near-term growth of 7-9% for adjusted EBITDA and approximately 5% annual growth post-2026 .
While Enbridge's diversified asset base and strategic investments position it well for future growth, the company must navigate the challenges of rising debt, legal uncertainties, and the complexities of transitioning to renewable energy sources. Stakeholders will be closely monitoring how Enbridge addresses these issues while striving to maintain its industry-leading position in the North American energy sector.
