Robert Catellier

Robert Catellier inquired about the expected rate of capital commissioning from the backlog in 2026 and beyond, excluding the Intel investment, relative to 2025. He also asked for views on the Canada-Alberta MOU's impact on managing Canadian midstream investments, specifically regarding growth versus asset sales.

Answer

CFO David Krant indicated that the $3.9 billion Intel component of the backlog is expected to commission in the latter half of 2026. The remaining $5.3 billion backlog (excluding Intel) is diversified across utilities, transport, midstream, and data, with roughly $1.5 billion to $2 billion expected to come online in 2026. CEO Sam Pollock stated it's too early to assess the MOU's material impact on midstream growth, but existing producer expansions and growth initiatives are already underway. Market conditions would dictate any accelerated monetizations.

Robert Catellier questioned the expected rate of capital commissioning from the backlog in 2026, comparing it to the $1.5 billion commissioned in 2025. He also sought views on the Canada-Alberta MOU for energy development and its impact on managing Canadian midstream investments, specifically regarding growth versus asset sales.

Answer

David Krant, CFO, indicated that the $3.9 billion Intel component of the backlog is expected to commission in H2 2026, while the remaining $5.3 billion (excluding Intel) is diversified across utilities, transport, midstream, and data, with roughly $1.5-1.75 billion expected online in 2026. Sam Pollock, CEO, stated it's too early to assess the MOU's material impact but noted existing growth in midstream assets. Monetizations would be driven by market conditions.

Robert Catellier from CIBC Capital Markets questioned how the DeepSeek news might alter the investment approach in data centers and asked about the current view on unit repurchases versus new investments.

Answer

CEO Sam Pollock affirmed that investments remain guided by risk-adjusted returns and that data center development risk is mitigated by not building on spec and securing contracts without 'cancel for convenience' clauses. CFO David Krant stated that the decision on unit buybacks is a continuous assessment of relative returns against a strong pipeline of attractive investment opportunities.

Robert Catellier followed up on the nuclear topic, asking for clarity on BIP's interest in nuclear assets and the potential investment vehicle. He also asked how the dynamic of high deal flow versus relatively low corporate liquidity might influence the company's distribution growth policy.

Answer

CEO Sam Pollock clarified that any potential nuclear investments would likely be made through Brookfield's transition fund, not directly within BIP. CFO David Krant addressed liquidity, stating the current $1.6 billion is strong and will be replenished by $5-6 billion in asset sales over the next 12-24 months. Pollock emphatically added that the dividend and its growth are "sacrosanct" and would not be compromised for new investments.

Robert Cattelier asked about how Enbridge manages cost risk for data center and power generation projects within its gas distribution business, given the competitive market, supply chain constraints, and focus on time to market. He also inquired about the regulatory updates for the Dakota Access Pipeline (DAPL) and its interplay with Mainline Optimization Phase Two.

Answer

Greg Ebel, President and CEO, explained that gas distribution projects are rate-based, with cost management through alliance agreements, equipment stockpiling, and benefiting from improved policy attitudes towards permitting. Collin Grending, Head of Liquids Pipeline Business Unit, stated that a new presidential permit is not needed for DAPL and expressed confidence in the DAPL EIS coming through in the spirit of energy security.

Robert Cattelier asked about Enbridge's strategy for managing cost risk in data center and power generation projects within the gas distribution business, given the competitive environment, supply chain constraints, and focus on time to market. He also sought regulatory updates on the Dakota Access Pipeline (DAPL) and its interplay with Mainline Optimization Phase Two (MLO-2) due to lingering permitting issues.

Answer

Greg Ebel, President and CEO, explained that gas distribution projects are rate-based, offering a 10% return on 50% equity in the U.S., and the company manages costs through alliance agreements with contractors, stockpiling equipment, and benefiting from improved policy attitudes towards critical project permitting. Collin Grending, Head of Liquids Pipeline Business Unit, expressed confidence that a new presidential permit is not needed for DAPL and that the EIS will be approved, supporting energy security.

Robert Catellier of CIBC Capital Markets asked about the evolution of Canadian energy policy regarding a new pipeline to Tidewater and the impact of the Ohio rate case on the company's broader U.S. utility strategy.

Answer

President & CEO Gregory Ebel stated that customer demand is currently focused on Gulf Coast access and that Canadian policy, including the emissions cap and tanker ban, hinders a West Coast pipeline. EVP & President of Gas Distribution Michele Harradence noted that while the Ohio rate case was disappointing on some legal issues, the utility remains strong with a high ROE and capital riders, and the company has filed for a rehearing.

Robert Catellier asked for Enbridge's view on using alternative NEPA compliance arrangements for U.S. permitting. He also inquired about the outlook for Permian production and its impact on Ingleside and the gas system, and whether JV partners are aligned on the pace of capital deployment.

Answer

President and CEO Greg Ebel stated that while accelerated permitting is generally positive, the decision to use new arrangements is project-specific and depends on timing and potential legal challenges. Colin Gruending, EVP of Liquids Pipelines, noted that while they are monitoring producer activity, Enbridge's Permian business is resilient due to its contracted nature. Greg Ebel confirmed strong alignment with JV partners, evidenced by the recent Matterhorn acquisition.

Robert Catellier from CIBC Capital Markets asked about Enbridge's appetite for investing in a major new long-haul liquids pipeline in Canada, such as Northern Gateway, and for an updated outlook on onshore renewables under a potential new U.S. administration.

Answer

President & CEO Greg Ebel detailed the stringent conditions required for Enbridge to consider a major Canadian pipeline project, including significant legislative changes, regulatory reform like repealing C-69, indigenous loan guarantees, and return trackers, citing past negative experiences. He emphasized that while all business units have opportunities, the company will prioritize those with the best returns for investors, suggesting resilience in their renewables strategy regardless of the political environment.

Robert Catellier asked about the rationale for using the ATM program versus asset sales to fund the utility acquisitions and what to expect for future asset sales. He also questioned the near-term risk of producer shut-ins on the Mainline due to wildfires and the long-term political risk for egress needs post-2026.

Answer

President and CEO Greg Ebel stated that confidence in the utility deal's economics prompted the quick completion of financing, leading to the ATM's cancellation. He noted that while asset sales remain an option, they are not a necessity and would only occur at a great price. Colin Gruending, EVP of Liquids Pipelines, reported negligible impact from wildfires so far and expressed confidence that future egress projects would proceed irrespective of the political administration, citing significant industry interest.

Robert Catellier congratulated TC Energy on its safety record and asked Tina Faraca to highlight the one or two top reasons for recent project execution coming in on time and on budget. He also asked Greg Grant about the highest likelihood opportunities for complementary services in high-demand power and energy solution markets, as mentioned on slide 18, and if behind-the-meter power is being contemplated.

Answer

Tina Faraca (EVP and COO of Natural Gas Pipelines) attributed successful project execution primarily to human capital, including advanced internal leadership skills, increased due diligence on risk, early stakeholder engagement, and strong contractor negotiations for 'A teams.' François Poirier (President and CEO) added that a strong culture with psychological safety, where teams feel comfortable identifying challenges early, is critical. Greg Grant (President, EVP of Power, and Energy Solutions) explained that complementary services are strategic, leveraging the gas and power footprint, with Alberta being a natural area for co-location and power solutions due to its energy supply chain. He noted that TC Energy is selective, avoiding projects with higher risk, and while there's a large data center queue in Alberta, TC Energy focuses on its existing footprint rather than directly developing behind-the-meter power.

Robert Catellier congratulated TC Energy on its safety record and asked for the top one or two reasons behind the recent on-time and on-budget project execution. He also inquired about exploring complementary services in high-demand power and energy solution markets, specifically the highest likelihood opportunities and whether behind-the-meter power is being contemplated.

Answer

Tina Faraca, Executive Vice President and Chief Operating Officer, Natural Gas Pipelines, highlighted human capital, advanced internal leadership, enhanced due diligence, early stakeholder engagement, and strong contractor negotiations as key drivers for project execution success. François Poirier, President and Chief Executive Officer, emphasized the importance of a strong culture with psychological safety. Greg Grant, Executive Vice President and President, Power and Energy Solutions, mentioned Alberta as a natural area for colocation and power solutions due to TC Energy's energy supply chain footprint, but stressed being selective due to risk and the existing pipeline of growth opportunities.

Robert Catellier of CIBC Capital Markets questioned the company's view on pursuing behind-the-meter power projects for data centers and asked about the practical impacts of potential U.S. budget reconciliation legislation on TC Energy's business.

Answer

EVP & COO Tina Faraca reiterated the U.S. strategy focuses on low-risk projects with utility customers. EVP & President of Power & Energy Solutions, Greg Grant, added that they are open to behind-the-meter opportunities in Canada. EVP & CFO Sean O’Donnell and President & CEO François Poirier stated that their plans are not dependent on U.S. legislative changes, which would represent potential upside.

Robert Catellier asked for TC Energy's perspective on alternative NEPA compliance arrangements for U.S. permitting and their appetite to use them. He also asked for a summary of how trade policy and the Canadian election results are impacting the company's view on the best risk-adjusted returns and its plans for Mexico.

Answer

President of U.S. Natural Gas Pipelines Tina Faraca stated that while the company supports pragmatic permitting reform, durable change requires Congressional action, and they will follow current regulations otherwise. CEO Francois Poirier explained that there is no near-term impact from trade policy as they don't take commodity risk, and their supply chains are largely domestic. He confirmed that the best risk-adjusted returns remain in the U.S., which will continue to attract the majority of discretionary capital until Canadian permitting improves.

Robert Catellier from CIBC Capital Markets asked about the impact of a $400 million legal verdict on deleveraging, how an early SGP in-service date might affect plans, and the outlook for the company's storage assets.

Answer

CEO Francois Poirier stated the company will appeal the verdict and its plans can accommodate any outcome. CFO Sean O'Donnell noted an early SGP in-service would help close the 2025 EBITDA gap. Executive Stanley Chapman explained that TC Energy's storage is fully contracted for reliability to LDCs, and the strategy will remain focused on integrated, rate-regulated assets.

Robert Catellier of CIBC Capital Markets Inc. inquired about the fee structure for Williams' LNG opportunity, asking if it would be a straightforward fee-for-service model or if there's potential for linkage to LNG pricing benchmarks. He also sought clarification on the contract tenor for Williams' LNG offtake responsibility, particularly when accumulating volumes from multiple smaller producer customers.

Answer

President and CEO Chad Zamarin explained that Williams intends to monetize its 1.5 million tons of LNG offtake, representing about 225 MMcf/d of gas, primarily through fixed-margin transactions, consistent with its Sequent platform operations. He noted that while the pipeline and LNG facility have 20-year take-or-pay contracts, the offtake position would likely involve a portfolio of gas supply with various contract tenors, where higher margins are typically associated with shorter tenors and smaller margins with longer tenors.

Robert Catellier asked about the fee structure for the LNG opportunity, specifically if it would be a straightforward fee-for-service or linked to LNG pricing benchmarks, and the contract tenor, given the split sourcing for capacity, particularly for smaller customers.

Answer

President and CEO Chad Zamarin explained that the company expects to monetize its LNG offtake primarily through fixed margin transactions, similar to its Sequent platform, for customers accessing international markets. He clarified that the pipeline, LNG facility, and the LNG offtake itself are all supported by 20-year contracts. For smaller customers, Williams anticipates building a portfolio of gas supply with various contract tenors, where compensation would align with the tenor (higher margin for shorter, smaller for longer).

Robert Catellier of CIBC Capital Markets asked about opportunities to accelerate or upsize projects and the company's comfort with temporarily higher leverage. He also inquired about future G&P acquisition strategy and potential gaps in the value chain.

Answer

President & CEO Chad Zamarin affirmed they will accelerate projects where possible. Senior VP & CFO John Porter stated they can fund a large CapEx budget while staying within their 3.5-4.0x leverage target. On M&A, Zamarin emphasized they have no 'must-fill' strategic gaps, allowing them to be highly disciplined and opportunistic in pursuing synergistic, bolt-on acquisitions that compete with high-return organic projects.

Robert Catellier of CIBC Capital Markets asked about opportunities to accelerate or upsize projects and the company's comfort with leverage. He also inquired about future G&P investment and potential gaps in the value chain.

Answer

President & CEO Chad Zamarin affirmed they will accelerate projects where possible. CFO John Porter added that the balance sheet has ample capacity to fund a large CapEx budget within their 3.5-4.0x leverage target. On M&A, Zamarin stated there are no 'must-fill' strategic gaps, allowing them to remain disciplined and opportunistic with bolt-on acquisitions that leverage their footprint.

Robert Catellier asked how the company's strong growth profile will influence its dividend policy, how it's protecting project returns from inflation, and the strategic importance of a potential large-scale storage acquisition.

Answer

CEO Alan Armstrong stated there is "no concern at all" about pulling back the dividend; in fact, the high-return projects generate so much cash flow that the challenge is deploying excess capital. He noted inflation is managed via contract escalators and conservative capital estimates. Regarding storage, both Armstrong and EVP Chad Zamarin emphasized that while they are bullish, any acquisition must be strategically accretive and fairly priced, noting that "not all storage is created equal" and their focus is on assets integrated with key markets.

Robert Catellier of CIBC Capital Markets asked about Pembina's long-term plans for ethane exports, the potential impact of the Keyera-Plains NGL transaction on competition, and for an update on marketing conditions and the 2026 frac spread hedge book.

Answer

President & CEO Scott Burrows explained that while ethane is abundant, the economics for a waterborne export pipeline to the West Coast are currently challenged. He stated that the Keyera-Plains deal doesn't significantly change the competitive landscape, as assets are merely moving between two 'formidable competitors.' SVP & CFO Cameron Goldade reported that the marketing plan is on track and that the 2026 hedge book is modestly hedged as they see potential for market constructiveness, particularly in natural gas.

Robert Catellier of CIBC Capital Markets inquired about the underlying reasons for Dow's project delay and how tariff uncertainty is affecting activity levels at Watson Island and the broader export outlook.

Answer

CEO Scott Burrows deferred questions on the reasons for the delay to Dow, out of respect for the partnership. SVP Chris Scherman commented that while tariffs create short-term volatility, they ultimately position Canada's West Coast well for the long term due to its vast resources and the global need for supply security. He noted strong recent volumes of Canadian propane off the West Coast.

Robert Catellier asked about the origin of the Greenlight project, Pembina's comfort level with capital allocation to power, and potential off-ramps if partners seek more merchant exposure. He also inquired about changes to NGL marketing strategy due to tariff threats.

Answer

Executive Stu Taylor explained the project evolved from seeking tenants for Pembina's Redwater land to a midstream-like model with long-term contracts for data centers. SVP & CFO Cameron Goldade reiterated the focus is on a fee-based annuity, not merchant power. Executive Chris Scherman noted the NGL strategy is insulated by focusing on West Coast exports and adding tariff-specific contract terms.

Robert Catellier asked about the future development vision for the Peace Pipeline system post-expansion. He also inquired about the company's frac spread hedging strategy following the consolidation of Aux Sable and sought clarification on the current tax guidance.

Answer

President and CEO J. Burrows explained that future Peace Pipeline development will focus on optimization and low-cost pump additions in Alberta, with potential for new pipelines in Northeast BC as LNG demand grows. On hedging, he noted a programmatic approach, with 2024 about 50% hedged for both Canadian and Aux Sable exposure, and 10-15% hedged for 2025. SVP and CFO Cameron Goldade confirmed the current tax guidance remains unchanged.

Robert Catellier asked how the current modest view on uncommitted volumes impacts the long-term 2-3% EBITDA growth target and what needs to happen to reach that goal. He also inquired about the policy and permitting environment in the US and Canada.

Answer

President and CEO Bevin Wirzba reaffirmed the 2-3% growth guidance, citing the Blackrod project as a key contributor starting in 2026. He anticipates a potential tightening of egress capacity later in 2026, which could restore growth in uncontracted volumes. Regarding policy, Wirzba noted that commitments from both US and Canadian administrations to improve regulatory certainty are constructive for capital allocation, but the company's strategy remains agnostic to administrations.

Robert Catellier asked how recent market volatility is impacting the sale process for the Mountain Valley Pipeline (MVP) stake. He also inquired about the primary drivers of the significant cost management gains in the Utilities segment and their sustainability.

Answer

D. James Harbilas, EVP and CFO, responded that market volatility has not impacted the timeline or interest level for the MVP sale. Blue Jenkins, President of Utilities, explained that the cost savings are the result of detailed process reviews and organizational design changes made in the prior year, and he expects these efficiencies to be sustainable, establishing a new cost benchmark for the business.

Robert Catellier of CIBC Capital Markets asked how recent market volatility was affecting the sale process for the Mountain Valley Pipeline (MVP). He also inquired about the key drivers behind the significant cost management gains in the Utilities segment and their sustainability, as well as any updates on advocacy efforts related to gas bans or building efficiency improvements.

Answer

EVP and CFO D. James Harbilas stated that market volatility has not impacted the timeline or interest levels for the MVP sale. Blue Jenkins, President of Utilities, explained that the cost savings resulted from process reviews and organizational design changes implemented in 2024, which have set a new, sustainable cost benchmark. Jenkins also highlighted a recent legislative success in Maryland, where advocacy efforts helped preserve the STRIDE accelerated pipeline replacement program.

Robert Catellier from CIBC Capital Markets asked how recent market volatility is affecting the Mountain Valley Pipeline (MVP) sale process. He also inquired about the key drivers behind the significant cost management gains in the Utilities segment and whether these savings are sustainable, along with seeking an update on advocacy efforts against gas bans.

Answer

President and CEO Vern Yu stated that market volatility has not impacted the timeline or interest level for the MVP sale. President of Utilities, Blue Jenkins, explained that the cost savings are the result of process reviews and organizational design changes from the previous year, establishing a new sustainable cost benchmark. Jenkins also highlighted a recent legislative success in Maryland, where advocacy work helped preserve the STRIDE pipeline replacement program.

Robert Catellier of CIBC Capital Markets inquired about the impact of market volatility on the MVP sale process, the drivers and sustainability of cost management gains in the Utilities segment, and any updates on advocacy work related to gas bans.

Answer

President and CEO Vern Yu stated that market volatility has not affected the timeline or interest in the MVP sale. Blue Jenkins, President of Utilities, explained that recent cost savings are the result of process and organizational changes made last year and represent a new, sustainable benchmark. He also highlighted a successful advocacy effort that preserved the STRIDE pipeline replacement program in Maryland.

Robert Catellier of CIBC Capital Markets inquired about the impact of recent market turbulence on the MVP sale process. He also asked about the drivers behind significant cost management gains in the Utilities segment and their sustainability, and requested an update on advocacy work related to gas bans.

Answer

EVP and CFO James Harbilas stated that market volatility has not impacted the timeline or interest level for the MVP sale. Blue Jenkins, President of Utilities, explained that the cost savings are the result of process reviews and organizational changes from the previous year, establishing a new, sustainable cost benchmark. He also highlighted a key advocacy win: ensuring the continuation of Maryland's STRIDE pipeline replacement program.

Robert Catellier asked about the long-term vision for the REEF site now that tolling targets are met, specifically regarding methanol opportunities and potential customer overlap. He also questioned what progress has been made toward securing weather protection mechanisms for the D.C. utility franchise.

Answer

President & CEO Vern Yu described the potential methanol project as exciting because it would open the entire Asian market, materially broadening the customer base beyond the existing set. He also noted that very strong customer demand has prompted the start of engineering and permitting for subsequent REEF phases. Donald Jenkins, President of Utilities, stated that the request for weather normalization is in the current D.C. rate case and that conversations with the commission and interveners are 'trending positive.'

Robert Catellier asked about the reasons for a slight decrease in hedging percentages, the drivers of strong extraction volume growth, the impact of Blueberry River First Nation issues on the North Pine expansion, and the company's view on recent rating agency outlook changes.

Answer

EVP and CFO D. James Harbilas noted volume expectations are unchanged. President of Midstream Randy Toone attributed extraction growth to new volumes from Pipestone. President and CEO Dai-Chung Yu stated the North Pine expansion is unaffected due to existing agreements. Regarding ratings, Yu said they are confident in executing on projects to address S&P's concerns and that the MVP sale is the first step to meeting Fitch's targets.

Robert Catellier followed up on the utility data center opportunity, asking about potential optimization income and protection against stranded asset risk. He also asked how the amended Maryland rate case order might influence future rate case strategy.

Answer

EVP & President of Utilities Blue Jenkins confirmed they are structuring contracts to mitigate stranded asset risk and that the assets could be used for optimization. He also noted they are exploring strategies like multi-year rate plans in Maryland. President and CEO Vern Yu added the recent Maryland rate uplift was due to the commission correcting its own prior mathematical errors.