REVENUE

3 Months Ended

Mar. 31, 2025

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

Change in Revenue Classification

To better align the classification of revenues resulting from our acquisitions of the United States (US) Gas Utilities (Note 6), we have made adjustments to Gas distribution sales and Transportation and other services revenues. Revenues generated from customers who procure their own gas but use our distribution system for delivery to the end use location have been reclassified to Gas distribution sales revenue from Transportation and other services revenue on the Consolidated Statements of Earnings and reclassified to Gas distribution sales from Transportation revenue in the Revenue from Contracts with Customers tables below. Our prior period comparable results have been recast to reflect the change in revenue classification. This change did not have an impact on our Total operating revenues.

REVENUE FROM CONTRACTS WITH CUSTOMERS

Major Products and Services

Three months ended March 31, 2025	Liquids Pipelines	Gas Transmission	Gas Distribution and Storage	Renewable Power Generation	Eliminations and Other	Consolidated
(millions of Canadian dollars)
Transportation revenue	3,105	1,480	90	—	—	4,675
Storage and other revenue	68	173	157	—	—	398
Gas distribution revenue	—	—	3,670	—	—	3,670
Electricity revenue	—	—	—	42	—	42
Commodity sales	—	24	—	—	—	24
Total revenue from contracts with customers	3,173	1,677	3,917	42	—	8,809
Commodity sales	8,934	37	—	—	554	9,525
Other revenue1,2	77	(7)	21	77	—	168
Intersegment revenue	—	8	18	1	(27)	—
Total revenue	12,184	1,715	3,956	120	527	18,502

Three months ended March 31, 2024	Liquids Pipelines	Gas Transmission	Gas Distribution and Storage	Renewable Power Generation	Eliminations and Other	Consolidated
(millions of Canadian dollars)
Transportation revenue3	3,024	1,341	93	—	—	4,458
Storage and other revenue	62	138	99	—	—	299
Gas distribution revenue3	—	—	1,924	—	—	1,924
Electricity revenue	—	—	—	57	—	57
Commodity sales	—	40	—	—	—	40
Total revenue from contracts with customers	3,086	1,519	2,116	57	—	6,778
Commodity sales	3,733	41	—	—	331	4,105
Other revenue1,2	63	6	13	73	—	155
Intersegment revenue	—	6	2	1	(9)	—
Total revenue	6,882	1,572	2,131	131	322	11,038

1Includes realized and unrealized gains and losses from our hedging program which for the three months ended March 31, 2025 were a net $99 million gain (2024 - $22 million loss).

2Includes revenues from lease contracts for the three months ended March 31, 2025 and 2024 of $158 million and $140 million, respectively.

3These balances reflect a transfer from Transportation revenue to Gas distribution sales of $258 million for the three months ended March 31, 2024.

We disaggregate revenues into categories which represent our principal performance obligations within each business segment. These revenue categories represent the most significant revenue streams in each segment and consequently are considered to be the most relevant revenue information for management to consider in evaluating performance.

Contract Balances

	Contract Receivables	Contract Assets	Contract Liabilities
(millions of Canadian dollars)
Balance as at March 31, 2025	4,207	323	2,728
Balance as at December 31, 2024	3,764	330	2,828

Contract receivables represent the amount of receivables derived from contracts with customers.

Contract assets represent the amount of revenues which has been recognized in advance of payments received for performance obligations we have fulfilled (or have partially fulfilled) and prior to the point in time at which our right to payment is unconditional. Amounts included in contract assets are transferred to accounts receivable when our right to receive the consideration becomes unconditional.

Contract liabilities represent payments received for performance obligations which have not been fulfilled. Contract liabilities primarily relate to make-up rights and deferred revenues. Revenue recognized during the three months ended March 31, 2025 included in contract liabilities at the beginning of the period were $245 million. Increases in contract liabilities from cash received, net of amounts recognized as revenues, during the three months ended March 31, 2025 were $142 million.

Performance Obligations

There were no material revenues recognized in the three months ended March 31, 2025 from performance obligations satisfied in previous periods.

Revenues to be Recognized from Unfulfilled Performance Obligations

Total revenues from performance obligations expected to be fulfilled in future periods is $62.8 billion, of which $7.9 billion and $8.1 billion are expected to be recognized during the remaining nine months ending December 31, 2025 and the year ending December 31, 2026, respectively.

The revenues excluded from the amounts above based on optional exemptions available under Accounting Standards Codification (ASC) 606, as explained below, represent a significant portion of our overall revenues and revenues from contracts with customers. Certain revenues such as flow-through operating costs charged to shippers are recognized at the amount for which we have the right to invoice our customers and are excluded from the amounts for revenues to be recognized in the future from unfulfilled performance obligations above. Variable consideration is excluded from the amounts above due to the uncertainty of the associated consideration, which is generally resolved when actual volumes and prices are determined. For example, we consider interruptible transportation service revenues to be variable revenues since volumes cannot be estimated. Additionally, the effect of escalation on certain tolls which are contractually escalated for inflation has not been reflected in the amounts above as it is not possible to reliably estimate future inflation rates. Revenues for periods extending beyond the current rate settlement term for regulated contracts where the tolls are periodically reset by the regulator are excluded from the amounts above since future tolls remain unknown. Finally, revenues from contracts with customers which have an original expected duration of one year or less are excluded from the amounts above.

Recognition and Measurement of Revenues

Three months ended March 31, 2025	Liquids Pipelines	Gas Transmission	Gas Distribution and Storage	Renewable Power Generation	Consolidated
(millions of Canadian dollars)
Revenues from products transferred at a point in time	—	24	36	—	60
Revenues from products and services transferred over time1	3,173	1,653	3,881	42	8,749
Total revenue from contracts with customers	3,173	1,677	3,917	42	8,809
Three months ended March 31, 2024	Liquids Pipelines	Gas Transmission	Gas Distribution and Storage	Renewable Power Generation	Consolidated
(millions of Canadian dollars)
Revenues from products transferred at a point in time	—	40	29	—	69
Revenues from products and services transferred over time1	3,086	1,479	2,087	57	6,709
Total revenue from contracts with customers	3,086	1,519	2,116	57	6,778

1Revenue from crude oil and natural gas pipeline transportation, storage, natural gas gathering, compression and treating, natural gas distribution, natural gas storage services and electricity sales.