Enbridge reports record 2024 financial results, raises dividend, and reaffirms 2025 guidance

Enbridge Inc. has reported record financial results for 2024, highlighting strong earnings, stable cash flow, and continued growth across its core business segments. The company reaffirmed its 2025 financial guidance and announced a 3% increase in its quarterly dividend, reflecting its long-standing commitment to shareholder returns. Despite facing regulatory shifts and fluctuating energy market conditions, Enbridge maintained its financial strength and operational stability, demonstrating the resilience of its diversified business model.

For the 19th consecutive year, Enbridge met or exceeded its financial targets, further solidifying its reputation as a leader in energy infrastructure. CEO Greg Ebel emphasized that the company’s strong performance in 2024 was driven by its ability to execute on strategic priorities, including major acquisitions, pipeline expansions, and renewable energy investments.

How Did Enbridge Perform Financially in 2024?

Enbridge reported full-year GAAP earnings of $5.1 billion, or $2.34 per share, compared to $5.8 billion, or $2.84 per share, in 2023. While GAAP earnings declined year-over-year, this decrease was primarily due to non-cash valuation changes in derivative financial instruments and the absence of one-time gains recorded in the prior year. Adjusted earnings, which provide a clearer picture of the company’s underlying performance, rose to $6.0 billion, or $2.80 per share, up from $5.7 billion, or $2.79 per share, in 2023.

The company delivered record adjusted EBITDA of $18.6 billion, representing a 13% increase from $16.5 billion in 2023. Distributable cash flow (DCF) also rose to $12.0 billion, marking a 6% year-over-year increase from $11.3 billion in the previous year. These results underscore Enbridge’s ability to generate strong, predictable cash flow, enabling continued investments in infrastructure while supporting dividend growth.

Why Did Enbridge Increase Its 2025 Dividend?

Enbridge announced a 3% increase in its quarterly dividend for 2025, raising it to $0.9425 per share, or $3.77 annualized. This marks the company’s 30th consecutive annual dividend increase, reinforcing its reputation as a reliable dividend-paying stock. The decision reflects the company’s financial stability and confidence in its ability to sustain long-term growth.

Greg Ebel highlighted that Enbridge’s low-risk business model continues to generate consistent cash flows, even in a changing energy landscape. The company remains committed to capital discipline, maintaining a strong balance sheet, and returning value to shareholders. With a diversified portfolio of energy assets, Enbridge expects to continue delivering steady earnings growth, supporting further dividend increases in the years ahead.

What Major Business Developments Drove Enbridge’s Growth?

Enbridge’s strong financial results were driven by strategic expansions across its Liquids Pipelines, Gas Transmission, and Renewable Power segments. In 2024, the company successfully completed its $19 billion acquisition of three major U.S. gas utilities, significantly expanding its North American natural gas distribution business. The transaction positioned Enbridge as the largest natural gas utility operator on the continent, serving millions of residential and industrial customers.

The Liquids Pipelines segment saw record volumes at the Enbridge Ingleside Energy Center (EIEC) and continued strong demand across its Gulf Coast crude export network. The company also signed an agreement with the Government of Alberta to explore expansion opportunities for its Mainline system, reinforcing its role in transporting growing volumes of Western Canadian crude.

In Gas Transmission, Enbridge advanced key projects, including the Tennessee Ridgeline expansion, a $1.1 billion investment supporting a 1.5-gigawatt gas-fired power plant. The company also strengthened its presence in the Permian Basin through investments in the Whistler Pipeline and ADCC Pipeline, further integrating its natural gas infrastructure.

The Renewable Power segment benefited from declining solar panel costs and growing demand for corporate power purchase agreements. Enbridge sanctioned 1,200 megawatts of new renewable energy projects, securing long-term agreements with Amazon, AT&T, and Toyota. The company also continued its disciplined capital recycling strategy, selling its 24% stake in the East-West Tie Limited Partnership for $129 million to redeploy capital into higher-growth projects.

What Challenges Did Enbridge Face in 2024?

Despite its strong financial performance, Enbridge navigated several challenges, including regulatory uncertainty, fluctuating commodity prices, and foreign exchange volatility. GAAP earnings were impacted by non-cash factors, including unrealized changes in derivative valuations. Lower-than-expected volumes on certain pipeline assets and higher financing costs related to its U.S. gas utility acquisitions also posed headwinds.

However, these challenges were mitigated by strong earnings growth across Enbridge’s high-margin assets. The company’s ability to manage costs effectively, optimize operational efficiencies, and capitalize on favorable foreign exchange rates helped offset some of the financial pressures. Enbridge reiterated that proposed tariffs on U.S. energy imports are not expected to have a material impact on its 2025 financial guidance.

What Is Enbridge’s Outlook for 2025?

Enbridge reaffirmed its 2025 financial guidance, projecting adjusted EBITDA between $19.4 billion and $20.0 billion, with distributable cash flow per share expected to range between $5.50 and $5.90. The company anticipates strong earnings contributions from its recently acquired U.S. gas utilities, continued growth in Liquids Pipelines, and the Texas Eastern Transmission rate settlement.

Enbridge also maintained its 2023–2026 financial outlook, forecasting annual adjusted EBITDA growth of 7-9%, adjusted earnings per share growth of 4-6%, and approximately 3% annual DCF per share growth. The company expects its extensive pipeline network and energy infrastructure assets to continue playing a critical role in meeting North America’s rising energy demand.

How Is Enbridge Strengthening Its Financial Position?

Enbridge ended 2024 with a Debt-to-EBITDA ratio of 5.0x, which is expected to improve throughout 2025 as earnings contributions from recent acquisitions are fully realized. The company remains committed to financing its capital program within an equity self-funding model and did not undertake any public debt financings in the fourth quarter of 2024.

With $26 billion in secured growth projects, Enbridge is well-positioned to maintain long-term financial stability. The company’s disciplined approach to capital allocation ensures that it can fund new infrastructure investments while preserving balance sheet strength.

What Lies Ahead for Enbridge?

Looking ahead, Enbridge is focused on strengthening its position as a leading energy infrastructure provider by expanding its liquids pipelines, natural gas networks, and renewable energy assets. The company remains committed to enhancing North America’s energy security by increasing crude oil and natural gas transportation capacity. Enbridge is also advancing low-carbon energy solutions, including hydrogen and carbon capture projects, as part of its strategy to support the global energy transition.

With a strong pipeline of growth projects, a track record of financial resilience, and a commitment to delivering value to shareholders, Enbridge remains a top-tier investment in the energy sector. The company’s ability to adapt to market dynamics, execute strategic acquisitions, and drive sustainable energy initiatives positions it for continued success in 2025 and beyond.