Enbridge Tops Estimates as Gas Demand Drives Pipeline Growth
Enbridge topped fourth-quarter profit estimates as natural gas and liquids volumes increased, with the company highlighting a C$39 billion project backlog and up to 10 billion cubic feet per day of new takeaway demand tied to data centers and power generation.
(Reuters) — Canadian pipeline operator Enbridge beat expectations for fourth-quarter profit on Feb. 13, as robust power demand helped lift volumes of gas and liquids transported through its systems.
The company operates the Mainline system, which moves nearly half of the crude in the United States, including light and heavy crude oil, natural gas liquids and refined products from Alberta, to various markets in Canada and the U.S. Midwest.
Pipeline operators are benefiting from an increase in demand for natural gas, primarily driven by liquefied natural gas exports, and soaring power generation tied to increased use of artificial intelligence, cryptocurrency mining and data centers.
Earlier in the day, peer TC Energy also beat market expectations for quarterly profit on the back of rising natural gas demand.
U.S.-listed shares of Enbridge rose nearly 1% before the bell.
Enbridge said it had roughly C$39 billion ($28.63 billion) in project backlog and expects about C$8 billion of that to come into service this year.
"We continue to advance over 50 data center opportunities across North America, requiring up to 10 billion cubic feet per day new takeaway capacity... and expect to sanction additional projects supporting power generation and data centers in 2026 and the years ahead," CEO Greg Ebel said.
Enbridge acquired three utilities from U.S.-based Dominion Energy last year, expanding its gas distribution business, leading to a 12.2% rise in adjusted core profit from its gas distribution unit to C$1.14 billion.
Adjusted core profit at the liquids pipeline segment, which houses the Mainline system, rose 2% to C$2.45 billion during the quarter.
The Calgary-based company posted an adjusted profit of 88 Canadian cents per share for the three months ended Dec. 31, compared with the average of analysts' estimates of 77 Canadian cents, according to data compiled by LSEG.
($1 = 1.3620 Canadian dollars)