Company: ENBSF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000895728-25-000012
Chunk: 59

Company: ENBRIDGE INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 1
Chunk 59
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72 million ($55 million after-tax) was recognized as a result of accounting for the settlement under the hypothetical liquidation at book value method. 

The non-cash, unrealized derivative fair value gains and losses discussed above generally arise as a result of our comprehensive economic hedging program to mitigate foreign exchange, interest rate and commodity price risks. This program creates volatility in reported short-term earnings through the recognition of unrealized non-cash gains and losses on derivative instruments used to hedge these risks. Over the long-term, we believe our hedging program supports the reliable cash flows and dividend growth upon which our investor value proposition is based.

After taking into consideration the factors above, the remaining $288 million increase in earnings attributable to common shareholders is primarily explained by:

•contributions from Enbridge Gas Ohio, Enbridge Gas Utah, and Enbridge Gas North Carolina in our Gas Distribution and Storage segment;

•positive earnings impact in Enbridge Gas Ontario due to colder weather in 2025 compared to a negative impact in 2024 in our Gas Distribution and Storage segment; 

•higher contributions from our Liquids Pipelines segment due to stronger Mainline and Line 9 performance and higher equity earnings due to a litigation settlement; 

•higher contributions from our Gas Transmission segment primarily due to favorable contracting in our US Gas Transmission assets, and the recognition of increased revenue attributable to Algonquin and Texas Eastern rate case settlements; and 

•the favorable effect of translating US dollar earnings at a higher average exchange rate in 2025, compared to the same period in 2024.

The factors above were partially offset by:

•higher interest expense primarily due to higher average debt balances principal outstanding; 

•higher depreciation and amortization expense mainly driven by a full quarter ownership of the Gas Utilities; 

•higher income tax expense driven by higher earnings; 

•higher realized foreign exchange losses on hedge settlements in Eliminations and Other;

•the absence of contributions from Alliance Pipeline and Aux Sable in our Gas Transmission segment due to the sale of our interests in these investments in April 2024; and

•lower contributions from the Gulf Coast and Mid-Continent System in our Liquids Pipelines segment due to lower volumes on the Flanagan South and Spearhead Pipelines.

38

BUSINESS SEGMENTS

LIQUIDS PIPELINES 

Three months endedMarch 31, 20252024(millions of Canadian dollars)  Earnings before interest, income taxes and depreciation and amortization2,593 2,404 

Three months ended