Enbridge Q3 profit nearly doubles on gas infrastructure gains

By Olivia Hart

Enbridge reported approximately $921 million (C$1.29 billion) in net earnings attributable to common shareholders for the third quarter, nearly doubling from $487 million (C$682 million) a year earlier.

The company released the results Friday, November 6, covering the quarter ended September 30. Earnings per share rose to C$0.59 from C$0.30. Adjusted earnings increased to approximately $786 million (C$1.1 billion), compared with $714 million (C$1 billion).

Adjusted EBITDA reached approximately $3.14 billion (C$4.4 billion), up from $3.07 billion (C$4.3 billion). EBITDA means earnings before interest, taxes, depreciation and amortization.

Natural gas infrastructure supplied the quarter's main earnings improvement.

Which gas assets drove the increase?

Enbridge attributed the improvement primarily to natural gas transmission, distribution and storage. Adjusted EBITDA from gas transmission rose to approximately $1.02 billion (C$1.43 billion), from $900 million (C$1.26 billion).

Gas distribution and storage adjusted EBITDA increased to approximately $475 million (C$665 million), compared with $400 million (C$560 million) a year earlier.

Higher revenues from rate settlements involving East Tennessee Natural Gas and Texas Eastern Transmission supported the result. Rate settlements are revenue adjustments tied to pipeline charges. Additional earnings from construction activity also contributed.

Gas networks supplied the core earnings improvement.

How did utilities and liquids pipelines affect the result?

Enbridge also benefited from higher regulated rates at its Utah and North Carolina gas utilities, while customer growth and approved rate increases separately supported its Ontario operations.

These gains partly offset lower volumes across parts of the liquids pipeline business. Reduced tolls, or pipeline transportation charges, on Line 9 deliveries also weighed on the result.

Regulated utility gains partly absorbed weakness in liquids pipeline activity.

What did Enbridge place into service?

Enbridge said it placed more than $3 billion of gas transmission projects into service. The additions expanded infrastructure available to transport natural gas to consuming markets across North America.

Data centers, industrial facilities and power generators are increasing electricity requirements. That demand continues to influence demand for additional natural gas transportation and storage capacity across North America.

The report did not identify individual projects. It described the transmission additions as assets already in service, rather than appraisal-stage prospects.

The new transmission assets were operating assets, not undeveloped appraisal options.

What can absorb the operating gains?

Higher financing costs, construction expenses and regulatory requirements remain important considerations as Enbridge expands infrastructure investment. The company also reported that increased interest expense on incremental debt partially offset stronger operating earnings.

Unlike upstream producers, whose earnings track commodity prices more closely, Enbridge combines regulated utility and contracted pipeline revenue. Oil & Gas 360's analysis said this structure can generate more predictable cash flows.

Oil & Gas 360 said Enbridge's diversified portfolio of pipelines, utilities and storage assets provides exposure to expanding natural gas demand while reducing direct commodity-price dependence.

For institutional investors, Oil & Gas 360 said the results show the growing importance of gas infrastructure in supporting electricity reliability and industrial development.

Execution and financing costs now shape the earnings path.

What should investors watch now?

Enbridge reaffirmed its 2026 financial guidance. Future performance now depends on successful project execution, regulatory approvals, customer demand and disciplined capital allocation.

The central investor test is whether new investment produces sustainable distributable cash flow, meaning cash available for distributions. That measure remains central to assessing Enbridge's long-term earnings and dividend capacity.

The report does not describe an upstream basin, producing play, refinery or terminal expansion. Its project claims concern gas transmission assets already operating.

Watch item: Whether Enbridge can turn new assets into distributable cash after higher interest costs.