- Company name
- Enbridge
- Sector
- Pipelines & gas utilities
- About
- Enbridge is an energy infrastructure company based in Calgary, Canada. It runs the Mainline and other crude oil pipelines that carry much of Canada's oil exports, natural gas pipelines and storage in Canada and the United States, natural gas utilities that serve about 7.2 million customers in Canada and the United States, and renewable power projects. It bought three US gas utilities from Dominion Energy. Its secured growth backlog was about C$38 billion at the end of Q3 2026, after C$3 billion of projects entered service in that quarter. For 2026, it expects adjusted EBITDA of C$20.2 to C$20.8 billion and distributable cash flow (DCF) of C$5.70 to C$6.10 per share.
- Thesis
- The market prices Enbridge for high debt and for new shares to pay for growth. Debt was 5.1 times EBITDA at September 30, 2026, above its target range of 4.5 to 5.0 times, partly because of a weaker Canadian dollar. In September 2026, Enbridge sold about C$3.0 billion of new shares to help pay for two crude oil purchases: Tallgrass's crude business for US$2.55 billion and Salt Creek Midstream's crude gathering business for US$600 million. The company targets growth of only about 5% a year in DCF per share after 2026, and its CEO will change on January 1, 2027. For the gap to close, three things must be true. Debt to EBITDA must return to the 4.5 to 5.0 range as new projects and the acquired assets add EBITDA. DCF per share must reach the 2026 guidance and grow about 5% a year. Projects in the backlog, such as the Line 5 relocation in Wisconsin, expected in early 2027, must enter service on time. The close of the Tallgrass purchase, the 2027 guidance and the Q4 2026 report in February 2027 are the next dated events. The gap can close only over several years, as the backlog enters service. The main reason it may not close is higher interest rates, which raise financing costs and make the dividend less attractive.
- Risks
- Debt was 5.1 times EBITDA at September 30, 2026, above the target range of 4.5 to 5.0 times. If leverage stays high, Enbridge may need more new shares or slower growth to protect its credit ratings.
Higher interest rates raise the cost of the large amount of debt that Enbridge must refinance and make its dividend less attractive to investors.
Pipeline projects need permits and can face legal challenges and cost increases. The Line 5 relocation in Wisconsin is expected to cost US$1.0 billion and enter service in early 2027.
The CEO changes on January 1, 2027. A new CEO can change priorities, such as the balance between acquisitions, projects and debt reduction.
- Balance sheet
- Cash: CA$4.9B
Debt: CA$114.3B
Net debt: CA$109.4B
Net debt / EBITDA: 5.1× (high)
Undrawn credit line: CA$6.9B
Debt due within 12 months: CA$8.9B
Enbridge funds its assets with long-term notes, hybrid securities, commercial paper and equity. At September 30, 2026, total debt was C$114.3 billion: C$105.3 billion of long-term debt, C$7.4 billion due within one year and C$1.5 billion of short-term borrowings. Unrestricted cash was C$4.9 billion, and available credit facilities were C$6.9 billion, for net available liquidity of C$11.8 billion. The company states debt to EBITDA of 5.1 times for the 12 months to September 30, 2026, above its target of 4.5 to 5.0 times, because debt in US dollars was translated at 1.42 Canadian dollars per US dollar, against an average of 1.39 for EBITDA. In September 2026, Enbridge sold about C$3.0 billion of new shares to help fund the Tallgrass and Salt Creek purchases, and it closed the Salt Creek purchase in October 2026. On November 9, 2026, it priced US$2.1 billion of senior notes due 2032 to 2056 and US$1.1 billion of subordinated notes due 2057, to reduce debt and to pay part of the announced purchases. The company expects to finance its C$38 billion backlog from about C$10 billion to C$11 billion of growth capital capacity each year.
As of Sep 30, 2026.
- Checkpoints
- Nov 6, 2026: Q3 2026 earnings: leverage and guidance. Failed. Watch: DCF per share on track for the C$5.70 to C$6.10 guidance and debt to EBITDA moving toward 5.0 times pass; lower guidance or higher leverage fails. Outcome: Enbridge reaffirmed its 2026 guidance, but debt to EBITDA stayed at 5.1 times and did not move toward 5.0 times.
Q4 2026 (estimate): Tallgrass and Salt Creek purchases close. Pending. Watch: Both purchases close in late 2026 on the agreed terms passes; a delay into late 2027 or new conditions that reduce their value fail.
Feb 6, 2027 (estimate): Q4 2026 results: leverage and 2027 guidance. Pending. Watch: 2026 DCF per share within C$5.70 to C$6.10 and debt to EBITDA back within 4.5 to 5.0 times pass; a result below guidance or debt to EBITDA still above 5.0 times fails.
- Recent events
- Nov 9, 2026: Enbridge priced US$2.1 billion of senior notes: US$700 million of 5.450% notes due 2032, US$800 million of 5.850% notes due 2036 and US$600 million of 6.350% notes due 2056. It also priced US$1.1 billion of subordinated notes due 2057: US$550 million at 6.700% until May 2032 and US$550 million at 6.875% until May 2037, after which the rates reset every five years. Both sales are to settle on November 13, 2026. Enbridge plans to use the money to reduce debt, to pay part of the announced purchases, and for capital spending and general purposes.
Nov 6, 2026: Enbridge reported Q3 2026 results. Adjusted EBITDA was C$4.4 billion, up from C$4.3 billion, and DCF was C$2.7 billion, up from C$2.6 billion. Adjusted earnings were C$0.49 per share. Enbridge reaffirmed its 2026 guidance and its growth outlook of about 5% a year. Debt to EBITDA stayed at 5.1 times, which Enbridge says is because of the exchange rate. It placed about C$3 billion of gas projects into service, agreed to buy the assets of Laramie Energy for US$0.5 billion and closed a C$0.7 billion investment by KKR and Apollo in its Westcoast system.
Oct 9, 2026: Enbridge closed its US$600 million purchase of Salt Creek Midstream's crude oil gathering business in the Delaware Basin.
Sep 14, 2026: Enbridge closed a bought-deal offering of 44,735,000 common shares at C$66.85 per share, including the full over-allotment option, for gross proceeds of about C$3.0 billion.
Sep 9, 2026: Enbridge agreed to buy Tallgrass's crude oil business, including 75% of the Pony Express Pipeline, for US$2.55 billion in cash, about 10 to 11 times forward EBITDA. It expects to close later in 2026 and expects the deal to add to DCF per share in the first full year.
Sep 8, 2026: Enbridge said that Greg Ebel will retire as President and CEO on December 31, 2026. Michele Harradence, who leads the gas distribution and storage business, will become President and CEO on January 1, 2027.
Aug 26, 2026: Enbridge agreed to buy Salt Creek Midstream's crude oil gathering business in the Delaware Basin for US$600 million in cash.
Jul 31, 2026: Enbridge reported Q2 2026 results. Adjusted EBITDA was C$4.8 billion, up from C$4.6 billion, and DCF was C$2.9 billion. Adjusted earnings were C$0.63 per share. Enbridge reaffirmed its 2026 guidance, sanctioned the US$1.0 billion Line 5 relocation in Wisconsin and grew its secured backlog to C$41 billion.