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LEASES

12 Months Ended

Dec. 31, 2024

LESSEE

We incur operating lease expenses related primarily to real estate, pipelines, storage and equipment. Our operating leases have remaining lease terms of 2 months to 41 years as at December 31, 2024.

For the years ended December 31, 2024, 2023 and 2022, we incurred operating lease expenses of $132 million, $131 million and $118 million, respectively. Operating lease expenses are reported under Operating and administrative expense in the Consolidated Statements of Earnings.

For the years ended December 31, 2024, 2023 and 2022, operating lease payments to settle lease liabilities were $128 million, $129 million and $123 million, respectively. Operating lease payments are reported under Operating activities in the Consolidated Statements of Cash Flows.

Supplemental Statements of Financial Position Information


	December 31, 2024		December 31, 2023
(millions of Canadian dollars, except lease term and discount rate)
Operating leases1
Operating lease right-of-use assets, net2	785		669

Operating lease liabilities - current3	121		98
Operating lease liabilities - long-term3	738		652
Total operating lease liabilities	859		750

Finance leases
Finance lease right-of-use assets, net4	294		287

Finance lease liabilities - current5	16		19
Finance lease liabilities - long-term5	300		264
Total finance lease liabilities	316		283

Weighted average remaining lease term
Operating leases	14 years		12 years
Finance leases	31 years		31 years

Weighted average discount rate
Operating leases	4.8	%	4.5	%
Finance leases	5.8	%	5.7	%

1Affiliate ROU assets, current lease liabilities and long-term lease liabilities as at December 31, 2024 were $42 million (December 31, 2023 - $42 million), $6 million (December 31, 2023 - $5 million) and $37 million (December 31, 2023 - $38 million), respectively.

2Operating lease ROU assets are reported under Deferred amounts and other assets in the Consolidated Statements of Financial Position.

3Current operating lease liabilities and long-term operating lease liabilities are reported under Other current liabilities and Other long-term liabilities, respectively, in the Consolidated Statements of Financial Position.

4Finance lease ROU assets are reported under Property, plant and equipment, net in the Consolidated Statements of Financial Position.

5Current finance lease liabilities and long-term finance lease liabilities are reported under Current portion of long-term debt and Long-term debt in the Consolidated Statements of Financial Position.

As at December 31, 2024, our operating and finance lease liabilities are expected to mature as follows:


	Operating leases	Finance leases
(millions of Canadian dollars)
2025	148	31
2026	134	30
2027	123	23
2028	97	23
2029	65	22
Thereafter	685	531
Total undiscounted lease payments	1,252	660
Less imputed interest	(393)	(344)
Total	859	316

LESSOR

We receive revenues from operating leases primarily related to natural gas and crude oil storage and processing facilities, and wind power generation assets. Our operating leases have remaining lease terms of 3 months to 27 years as at December 31, 2024.


Year ended December 31,	2024	2023	2022
(millions of Canadian dollars)
Operating lease income	229	241	266
Variable lease income	321	299	321
Total lease income1	550	540	587

1Lease income is recorded under Transportation and other services in the Consolidated Statements of Earnings.

As at December 31, 2024, our future lease payments to be received under operating lease contracts where we are the lessor are as follows:


			Operating leases
(millions of Canadian dollars)
2025			221
2026			202
2027			197
2028			198
2029			199
Thereafter			1,415
Future lease payments			2,432

LEASES