Takeaways from Meetings with ENB Management

Research evidence excerpt

Takeaways from Meetings with ENB Management

IdeaMthat spans the full value chain. We believe this is analogous to how generalists

might start to look at ENB and see a similar opportunity for it be used as a proxy for

infrastructure exposure. Generalist investors tend to view ENB as a lower-risk

income alternative backed by long-duration hard assets with the ability to take a

portfolio approach across energy infrastructure, allocating capital to the best

investments at any given time across crude oil, natural gas (pipeline/storage/utility)

and renewables. For investors looking for single-name exposure to North American

midstream infrastructure, ENB continues to show up on the short list of names that

we see them considering.

Exhibit 1: ENB's Value Proposition Exhibit 2: Largest Global Energy

Companies (Oil & Gas) by Market Cap

Source: Enbridge.

Source: Morgan Stanley.

Key takeaways from meetings:

• ENB's growing project backlog is providing best-in-sector growth visibility

that could extend beyond 2030 (currently guiding to +5% annual EBITDA

growth through 2030). ENB expects to take FID on another C$10–20bn of

growth projects through the end of 2027, with Gas Transmission having the

largest opportunity set. In total, ENB has a secured project backlog of ~C

$40bn currently in execution and another ~C$50bn of prospective growth

investment under consideration. A series of projects entering service in late

2027 into 2028 could temporarily accelerate EBITDA growth, but

management's priority is to maintain a steady longer-term growth rate.

• While questions on the announced NextEra/Dominion merger came up in

every meeting, ENB does not appear likely to make another major utility

acquisition at this time (although more capex at the combined NextEra is