Company: ENBSF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000895728-25-000012
Chunk: 51

Company: ENBRIDGE INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 1
Chunk 51
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One million British thermal units (mmbtu).3Commodity options contracts are valued using an option model valuation technique.

31

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:Three months endedMarch 31, 20252024(millions of Canadian dollars)  Level 3 net derivative liability at beginning of period(52)(131)Total gain/(loss), unrealized  Included in earnings123 (17)Included in OCI2 12  Included in regulatory assets/liabilities(45)— Settlements129 9 Level 3 net derivative asset/(liability) at end of period57 (127)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 at March 31, 2025 or December 31, 2024.Net Investment HedgesWe currently have designated a portion of our US dollar-denominated debt as a hedge of our net investment in US dollar-denominated investments and subsidiaries.During the three months ended March 31, 2025 and 2024, we recognized unrealized foreign exchange gains of $47 million and losses of $377 million, respectively, on the translation of US dollar-denominated debt, in OCI. During the three months ended March 31, 2025 and 2024, we recognized realized losses of $81 million and nil, respectively, associated with the settlement of US dollar-denominated debt that had matured during the period, in OCI.

Fair Value of Other Financial InstrumentsCertain long-term investments in other entities with no actively quoted prices are classified as Fair Value Measurement Alternative (FVMA) investments and are recorded at cost less impairment. The carrying value of FVMA investments totaled $186 million and $187 million as at March 31, 2025 and December 31, 2024, respectively.

As at March 31, 2025, we had investments with a fair value of $1,065 million included in Restricted