Company: ENBSF
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000895728-25-000006
Chunk: 13

Company: ENBRIDGE INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 13
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 in the short-term, but we believe over the long-term, the economic hedging program supports reliable cash flows.

74

BUSINESS SEGMENTS

LIQUIDS PIPELINES

Year ended December 31,202420232022(millions of Canadian dollars)   Earnings before interest, income taxes and depreciation and amortization9,531 9,383 7,941 

Year ended December 31, 2024 compared with year ended December 31, 2023

EBITDA was negatively impacted by $71 million due to certain infrequent or other non-operating factors, primarily explained by the following:

•a non-cash, net unrealized gain of $2 million in 2024, compared with a net unrealized gain of $615 million in 2023, reflecting net fair value gains and losses arising from changes in the mark-to-market value of derivative financial instruments used to manage foreign exchange and commodity price risks; and 

•the absence in 2024 of both a gain of $151 million recognized as a result of Southern Lights' discontinuation of regulatory accounting and the receipt of a litigation claim settlement of $68 million, partially offset by

•the absence in 2024 of both a realized loss of $638 million due to termination of foreign exchange hedges, as foreign exchange risks inherent within the CTS framework are not present in the negotiated MTS and an asset retirement loss of $86 million related to our Alberta Regional Oil Sands System; and

•a net positive adjustment to crude oil inventory of $15 million in 2024, compared with a net negative adjustment of $16 million in 2023.

After taking into consideration the factors above, the remaining $219 million increase is primarily explained by the following significant business factors:

•lower Mainline power costs from operational efficiencies and lower Alberta mill rates; 

•higher contributions from the Southern Lights Pipeline due primarily to the discontinuation of rate-regulated accounting as at December 31, 2023; 

•higher contributions from the Gulf Coast and Mid-Continent System due primarily to higher volumes on the Flanagan South Pipeline driven by the open season commitments that commenced in the first quarter of 2024, and the Enbridge Ingleside Energy Center due to higher demand and new storage contracts that commenced in the second quarter of 2024; and

•the favorable effect of translating US dollar EBITDA at a higher average exchange rate in 2024, as compared to 2023, partially offset by

•