Company: ENBSF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000895728-25-000012
Chunk: 52

Company: ENBRIDGE INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 1
Chunk 52
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 long-term investments and cash in the Consolidated Statements of Financial Position (December 31, 2024 - $998 million) which are classified as available-for-sale. During the three months ended March 31, 2025, we purchased and sold $103 million and $77 million of restricted long-term investments, respectively (2024 - purchases of $36 million and sales of $10 million). The net cash flow impact is presented in Cash Flows from Investing Activities in the Consolidated Statements of Cash Flows. These securities represent restricted funds held in trust for the purpose of funding pipeline abandonment in accordance with the regulatory requirements of the Canada Energy Regulator, to cover future pipeline decommissioning costs in the state of Minnesota and to satisfy retirement obligations as Wexpro properties are abandoned.

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We had restricted long-term investments and cash held in trust totaling $529 million as at March 31, 2025 which are classified as Level 1 in the fair value hierarchy (December 31, 2024 - $491 million). We also had restricted long-term investments held in trust totaling $536 million (cost basis - $558 million) and $507 million (cost basis - $540 million) as at March 31, 2025 and December 31, 2024, respectively, which are classified as Level 2 in the fair value hierarchy. There were unrealized holding gains of $16 million on these investments for the three months ended March 31, 2025 (2024 - losses of $13 million).

We have wholly-owned captive insurance subsidiaries whose principal activity is providing insurance and reinsurance coverage for certain insurable property and casualty risk exposures of our operating subsidiaries and certain equity investments. As at March 31, 2025, the fair value of investments in equity funds and debt securities held by our captive insurance subsidiaries was $nil and $1.1 billion, respectively (December 31, 2024 - $114 million and $1.1 billion, respectively). Our investments in debt securities had a cost basis of $1.1 billion as at March 31, 2025 (December 31, 2024 - $1.1 billion). These investments in equity funds and debt securities are recognized at fair value, classified as Level 1 and Level 2 in the fair value hierarchy, respectively, and are recorded in Other current assets and Long-term investments in the Consolidated Statements