REVENUE

6 Months Ended

Jun. 30, 2025

Revenue from Contract with Customer [Abstract]

REVENUE

3. 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 June 30, 2025	Liquids Pipelines		Gas Transmission		Gas Distribution and Storage			Renewable Power Generation		Eliminations and Other			Consolidated
(millions of Canadian dollars)
Transportation revenue		2,895		1,349		65			—		—			4,309
Storage and other revenue		75		162		152			—		—			389
Gas distribution sales		—		—		1,745			—		—			1,745
Electricity revenue		—		—		—			52		—			52
Commodity sales		—		28		—			—		—			28
Total revenue from contracts with customers		2,970		1,539		1,962			52		—			6,523
Commodity sales		7,787		29		—			—		280			8,096
Other revenue1,2		80		32		55			90		—			257
Intersegment revenue		—		4		(1	)		3		(6	)		—
Total revenue		10,837		1,604		2,016			145		274			14,876

Three months ended June 30, 2024	Liquids Pipelines		Gas Transmission		Gas Distribution and Storage		Renewable Power Generation		Eliminations and Other			Consolidated
(millions of Canadian dollars)
Transportation revenue3		2,986		1,290		42		—		—			4,318
Storage and other revenue		65		135		127		—		—			327
Gas distribution sales3		—		—		1,200		—		—			1,200
Electricity revenue		—		—		—		44		—			44
Commodity sales		—		38		—		—		—			38
Total revenue from contracts with customers		3,051		1,463		1,369		44		—			5,927
Commodity sales		5,036		11		—		—		206			5,253
Other revenue1,2		71		13		13		59		—			156
Intersegment revenue		—		5		2		3		(10	)		—
Total revenue		8,158		1,492		1,384		106		196			11,336

Six months ended June 30, 2025	Liquids Pipelines		Gas Transmission		Gas Distribution and Storage		Renewable Power Generation		Eliminations and Other			Consolidated
(millions of Canadian dollars)
Transportation revenue		6,000		2,829		155		—		—			8,984
Storage and other revenue		143		335		309		—		—			787
Gas distribution sales		—		—		5,415		—		—			5,415
Electricity revenue		—		—		—		94		—			94
Commodity sales		—		52		—		—		—			52
Total revenue from contracts with customers		6,143		3,216		5,879		94		—			15,332
Commodity sales		16,721		66		—		—		834			17,621
Other revenue1,2		157		25		76		167		—			425
Intersegment revenue		—		12		17		4		(33	)		—
Total revenue		23,021		3,319		5,972		265		801			33,378

Six months ended June 30, 2024	Liquids Pipelines		Gas Transmission		Gas Distribution and Storage		Renewable Power Generation		Eliminations and Other			Consolidated
(millions of Canadian dollars)
Transportation revenue3		6,010		2,631		135		—		—			8,776
Storage and other revenue		127		273		226		—		—			626
Gas distribution sales3		—		—		3,124		—		—			3,124
Electricity revenue		—		—		—		101		—			101
Commodity sales		—		78		—		—		—			78
Total revenue from contracts with customers		6,137		2,982		3,485		101		—			12,705
Commodity sales		8,769		52		—		—		537			9,358
Other revenue1,2		134		19		26		132		—			311
Intersegment revenue		—		11		4		4		(19	)		—
Total revenue		15,040		3,064		3,515		237		518			22,374

1Includes realized and unrealized gains and losses from our hedging program which for the three months ended June 30, 2025 were a net $33 million gain (2024 - $17 million loss) and for the six months ended June 30, 2025 were a net $132 million gain (2024 - $39 million loss).

2Includes revenues from lease contracts for the three months ended June 30, 2025 and 2024 of $141 million and $142 million, respectively, and for the six months ended June 30, 2025 and 2024 of $299 million and $282 million, respectively.

3These balances reflect a transfer from Transportation revenue to Gas distribution sales of $427 million and $685 million for the three and six months ended June 30, 2024, respectively.

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 June 30, 2025		2,859		302		2,672
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 and six months ended June 30, 2025 included in contract liabilities at the beginning of the period were $44 million and $289 million, respectively. Increases in contract liabilities from cash received, net of amounts recognized as revenues, during the three and six months ended June 30, 2025 were $69 million and $211 million, respectively.

Performance Obligations

There were no material revenues recognized in the three and six months ended June 30, 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 $59.4 billion, of which $5.0 billion and $8.1 billion are expected to be recognized during the remaining six 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 June 30, 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		—		28		31		—		59
Revenues from products and services transferred over time1		2,970		1,511		1,931		52		6,464
Total revenue from contracts with customers		2,970		1,539		1,962		52		6,523

Three months ended June 30, 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		—		38		33		—		71
Revenues from products and services transferred over time1		3,051		1,425		1,336		44		5,856
Total revenue from contracts with customers		3,051		1,463		1,369		44		5,927

Six months ended June 30, 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		—		52		67		—		119
Revenues from products and services transferred over time1		6,143		3,164		5,812		94		15,213
Total revenue from contracts with customers		6,143		3,216		5,879		94		15,332

Six months ended June 30, 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		—		78		62		—		140
Revenues from products and services transferred over time1		6,137		2,904		3,423		101		12,565
Total revenue from contracts with customers		6,137		2,982		3,485		101		12,705

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.