Company: ENBSF
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000895728-25-000006
Chunk: 143

Company: ENBRIDGE INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 143
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178

The significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments were as follows:December 31, 2024Fair ValueUnobservable InputMinimum Price/VolatilityMaximum Price/VolatilityWeighted Average Price/VolatilityUnit of Measurement(fair value in millions of Canadian dollars)      Commodity contracts - financial1      Natural gas(5)Forward gas price3.739.854.12$/mmbtu2Crude(13)Forward crude price73.54104.4297.44$/barrel   Power(44)Forward power price31.17229.2968.51$/MW/H  Commodity contracts - physical1      Natural gas(80)Forward gas price1.4022.574.12$/mmbtu2Crude22 Forward crude price77.31118.2899.76$/barrel  Power(98)Forward power price12.94211.4270.30$/MW/HCommodity options3Natural gas166 Forward gas price2.447.094.44$/mmbtu2Price volatility3 %77 %50 % (52)     1Financial and physical forward commodity contracts are valued using a market approach valuation technique.2One million British thermal units (mmbtu).3Commodity options contracts are valued using an option model valuation technique. If adjusted, the significant unobservable inputs disclosed in the table above would have a direct impact on the fair value of our Level 3 derivative instruments. The significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments include forward commodity prices. Changes in forward commodity prices could result in significantly different fair values for our Level 3 derivatives.Changes in the net fair value of derivative assets and liabilities classified as Level 3 in the fair value hierarchy were as follows:Year ended December 31,20242023(millions of Canadian dollars)  Level 3 net derivative liability at beginning of year(131)(136)Total gain/(loss), unrealized  Included in earnings1(92)(48)Included in OCI19 67 Included in regulatory assets/liabilities130 — Settlements22 (14)Level 3 net derivative liability at end of year(52)(131)1Reported within Transportation and other services revenues, Commodity costs and Operating and administrative expense in the Consolidated Statements of Earnings.There were no transfers into or out of Level 3 as