Valued at a market cap of $150 billion, Enbridge (TSX: ENB) is among the largest energy infrastructure companies globally.
In Q3 2025, it reported record EBITDA (earnings before interest, taxes, depreciation, and amortization), $3 billion in newly sanctioned projects, and a 30-year streak of dividend growth that has survived every economic crisis since 1995.
The Calgary-based energy infrastructure giant posted Q3 adjusted EBITDA above expectations with mainline volumes hitting a record 3.1 million barrels per day.
But the real story is what Enbridge is building for the next three years as LNG Canada scales, data centre demand explodes, and North American energy infrastructure undergoes its biggest transformation in decades.
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Enbridge continues to expand
Enbridge’s announcement of Mainline Optimization Phase 2 caught the market off guard. Combined with Phase 1’s 150,000 barrels per day, which comes online in 2027, Enbridge is adding nearly 500,000 barrels per day of egress capacity from Western Canada using existing infrastructure.
The company partnered with Energy Transfer on Phase 2, leveraging the Dakota Access Pipeline to maximize capital efficiency. Enbridge also sanctioned the Southern Illinois Connector, adding 100,000 barrels per day of full-path service from Western Canada to Nederland, Texas. The project uses existing capacity on the Spearhead Pipeline, plus new pipe between Wood River and Patoka.
The mainline transported record volumes in Q3 despite apportioning for the entire quarter. This sustained demand allowed Enbridge to reach maximum allowable returns under its tolling settlement ahead of schedule.
Data centres supercharge gas distribution
The gas distribution segment emerged as an unexpected growth catalyst driven by data centre and power generation demand.
Ohio and Utah lead, with combined data centre development approaching eight gigawatts in the early stages and over six gigawatts in mid-stage development. That’s a substantial incremental load for utilities acquired just two years ago. Positive rate settlements in North Carolina and Utah during Q3 support continued investment at attractive returns.
Enbridge noted that data centres account for roughly 20% of total gas distribution capital opportunities, with core utility growth, modernization programs, and storage expansion accounting for the remainder.
Enbridge’s renewable segment capitalized on strong power purchase agreement pricing and declining supply costs. The company showcased over two gigawatts of power backed by Amazon and Meta. These hyperscaler partnerships provide revenue certainty while maintaining Enbridge’s low-risk business model.
Financial strength supports capital returns
Enbridge exited Q3 with a net debt-to-EBITDA ratio of 4.8 times, within its guidance range. Notably, over 95% of customers carry investment-grade credit ratings with negligible commodity exposure and inflation protection on the majority of EBITDA.
- Analysts tracking the TSX dividend stock forecast the distributable cash flow per share to expand from $5.70 in 2025 to $6.94 in 2029. During this period, the annual dividend per share is projected to increase from $3.78 to $4.20.
- The company’s 30-year dividend growth streak has survived financial crises, oil crashes, and a global pandemic, which showcases cash flow resilience.
- Enbridge reaffirmed 2025 guidance and expects full-year EBITDA in the upper half of the $19.4 billion to $20 billion range with DCF per share around the midpoint of $5.50 to $5.90.
Murray projected 5% growth through the end of the decade, supported by $35 billion in secured capital. This capital backlog provides revenue visibility while the company continues to evaluate accretive investments across its footprint.
The Foolish takeaway
Enbridge’s three-year trajectory appears compelling, given the visible catalysts already in motion.
The 5% annual growth target through 2030, the 30-year dividend growth streak, and the diversified infrastructure portfolio position Enbridge for steady appreciation as each catalyst materializes.
If the TSX stock is priced at 13 times forward DCF, it could gain over 20% in the next three years. If we account for its 5.6% dividend yield, cumulative returns could be closer to 40%.
