Fri, Aug 2, 11:06 AM (88 days ago)
Enbridge Inc.'s Q2 2024 10-Q report details significant financial activities and performance metrics. Key points include: 1. **Acquisitions**: Enbridge completed the acquisitions of The East Ohio Gas Company (EOG) and Questar Gas Company, enhancing its gas distribution operations in the US. These acquisitions contributed positively to revenue and EBITDA. 2. **Dispositions**: The sale of interests in the Alliance Pipeline and Aux Sable to Pembina Pipeline Corporation for $3.1 billion resulted in a pre-tax gain of $1.1 billion. 3. **Revenue and Earnings**: Operating revenues increased to $11.3 billion for Q2 2024, up from $10.4 billion in Q2 2023. Earnings attributable to common shareholders were stable at $1.85 billion. However, earnings per share decreased slightly from $0.91 to $0.86 due to higher interest expenses and depreciation. 4. **Cash Flow**: Operating cash flow decreased to $6.0 billion from $7.3 billion year-over-year. Cash used in investing activities rose significantly to $11.2 billion due to acquisitions. Financing activities provided $2.8 billion, driven by debt issuances and equity sales under the ATM Program. 5. **Debt and Liquidity**: Enbridge issued $4.7 billion in long-term debt and repaid $3.2 billion. The company maintains significant liquidity with $14.4 billion in available credit facilities and $3.6 billion in cash. 6. **Regulatory Updates**: Enbridge is engaged in ongoing regulatory proceedings, including rate cases for Texas Eastern and Algonquin pipelines, and legal challenges concerning the Line 5 pipeline in Michigan. 7. **Future Outlook**: Enbridge expects continued growth from recent acquisitions and ongoing projects, despite potential regulatory and market risks. These elements underscore Enbridge's strategic growth through acquisitions, robust revenue performance, and proactive financial management amidst regulatory challenges.