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RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of the Consolidated Statements of Financial Position Location and Carrying Value of Derivative Instruments

The following tables summarize the Consolidated Statements of Financial Position location and carrying value of our derivative instruments, as well as the maximum potential settlement amounts, in the event of the specific circumstances described above.


June 30, 2025	Derivative Instruments Used as Cash Flow Hedges			Derivative Instruments Used as Fair Value Hedges		Non- Qualifying Derivative Instruments			Total Gross Derivative Instruments as Presented			Amounts Available for Offset			Total Net Derivative Instruments
(millions of Canadian dollars)
Other current assets
Foreign exchange contracts		—			—		33			33			(19	)		14
Interest rate contracts		12			—		20			32			(15	)		17
Commodity contracts		—			—		391			391			(230	)		161
		12			—		444			456			(264	)		192
Deferred amounts and other assets
Foreign exchange contracts		—			—		75			75			(33	)		42
Interest rate contracts		26			—		91			117			(28	)		89
Commodity contracts		—			—		116			116			(43	)		73
		26			—		282			308			(104	)		204
Other current liabilities
Foreign exchange contracts		—			—		(334	)		(334	)		19			(315	)
Interest rate contracts		(12	)		—		(26	)		(38	)		15			(23	)
Commodity contracts		(1	)		—		(395	)		(396	)		230			(166	)
		(13	)		—		(755	)		(768	)		264			(504	)
Other long-term liabilities
Foreign exchange contracts		—			—		(721	)		(721	)		33			(688	)
Interest rate contracts		(12	)		—		(67	)		(79	)		28			(51	)
Commodity contracts		—			—		(122	)		(122	)		43			(79	)
		(12	)		—		(910	)		(922	)		104			(818	)
Total net derivative asset/(liability)
Foreign exchange contracts		—			—		(947	)		(947	)		—			(947	)
Interest rate contracts		14			—		18			32			—			32
Commodity contracts		(1	)		—		(10	)		(11	)		—			(11	)
		13			—		(939	)		(926	)		—			(926	)


December 31, 2024	Derivative Instruments Used as Cash Flow Hedges			Derivative Instruments Used as Fair Value Hedges			Non- Qualifying Derivative Instruments			Total Gross Derivative Instruments as Presented			Amounts Available for Offset			Total Net Derivative Instruments
(millions of Canadian dollars)
Other current assets
Foreign exchange contracts		—			78			47			125			(29	)		96
Interest rate contracts		44			—			23			67			(39	)		28
Commodity contracts		2			—			360			362			(191	)		171
Other contracts		—			—			3			3			—			3
		46			78			433			557			(259	)		298
Deferred amounts and other assets
Foreign exchange contracts		—			—			83			83			(71	)		12
Interest rate contracts		9			—			137			146			(27	)		119
Commodity contracts		—			—			197			197			(39	)		158
		9			—			417			426			(137	)		289
Other current liabilities
Foreign exchange contracts		—			(73	)		(731	)		(804	)		29			(775	)
Interest rate contracts		(58	)		—			(22	)		(80	)		39			(41	)
Commodity contracts		—			—			(451	)		(451	)		191			(260	)
		(58	)		(73	)		(1,204	)		(1,335	)		259			(1,076	)
Other long-term liabilities
Foreign exchange contracts		—			—			(1,579	)		(1,579	)		71			(1,508	)
Interest rate contracts		—			—			(80	)		(80	)		27			(53	)
Commodity contracts		(1	)		—			(238	)		(239	)		39			(200	)
		(1	)		—			(1,897	)		(1,898	)		137			(1,761	)
Total net derivative asset/(liability)
Foreign exchange contracts		—			5			(2,180	)		(2,175	)		—			(2,175	)
Interest rate contracts		(5	)		—			58			53			—			53
Commodity contracts		1			—			(132	)		(131	)		—			(131	)
Other contracts		—			—			3			3			—			3
		(4	)		5			(2,251	)		(2,250	)		—			(2,250	)

Schedule of the Maturity and Notional Principal or Quantity Outstanding Related to Derivative Instruments

The following table summarizes the maturity and notional principal or quantity outstanding related to our derivative instruments:


June 30, 2025	2025			2026	2027	2028	2029	Thereafter			Total
Foreign exchange contracts - US dollar forwards - purchase (millions of US dollars)		798		—	—	—	—		—			798
Foreign exchange contracts - US dollar forwards - sell (millions of US dollars)		3,330		5,627	4,841	3,552	1,278		30			18,658
Foreign exchange contracts - British pound (GBP) forwards - sell (millions of GBP)		18		28	32	—	—		—			78
Foreign exchange contracts - Euro forwards - sell (millions of Euro)		63		121	81	67	66		129			527
Interest rate contracts - short-term pay fixed rate (millions of Canadian dollars)		1,338		2,230	1,175	549	34		—			5,326
Interest rate contracts - long-term pay fixed rate (millions of Canadian dollars)1		1,048		1,860	—	—	—		—			2,908
Interest rate contracts - costless collar (millions of Canadian dollars)		981		1,760	1,319	51	—		—			4,111
Commodity contracts - natural gas (billions of cubic feet)2		42		91	56	22	14		2			227
Commodity contracts - crude oil (millions of barrels)2		(15	)	2	2	1	1		1			(8	)
Commodity contracts - power (megawatt per hour (MW/H))		149		142	85	30	29		(2	)	37			3

Represents the notional amount of long-term debt issuances hedged.

Represents the notional amount of net purchase/(sale).

Total is an average net purchase/(sale) of power.

Schedule of Effect of Cash Flow Hedges and Net Investment Hedges on Consolidated Earnings and Consolidated Comprehensive Income, Before Income Taxes

The following table presents foreign exchange derivative instruments that are designated and qualify as fair value hedges. The realized and unrealized gain or loss on the derivative is included in Other income/ (expense) or Interest expense in the Consolidated Statements of Earnings. The offsetting loss or gain on the hedged item attributable to the hedged risk is included in Other income/(expense) in the Consolidated Statements of Earnings. Any excluded components are included in the Consolidated Statements of Comprehensive Income.


	Three months ended June 30,					Six months ended June 30,
		2025		2024			2025		2024
(millions of Canadian dollars)
Unrealized gain/(loss) on derivative		28		(29	)		(14	)	(92	)
Unrealized gain/(loss) on hedged item		(51	)	26			(1	)	100
Realized gain/(loss) on derivative		(36	)	(12	)		25		47
Realized gain/(loss) on hedged item		51		—			(23	)	(79	)

The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income

The following table presents the effect of cash flow hedges and fair value hedges on our consolidated earnings and comprehensive income, before the effect of income taxes:


	Three months ended June 30,						Six months ended June 30,
	2025			2024			2025			2024
(millions of Canadian dollars)
Amount of unrealized gain/(loss) recognized in OCI
Cash flow hedges
Interest rate contracts		21			10			(14	)		148
Commodity contracts		(3	)		3			(2	)		15
Other contracts		—			—			—			1
Fair value hedges
Foreign exchange contracts		18			(11	)		12			(26	)
		36			2			(4	)		138
Amount of (income)/loss reclassified from AOCI to earnings
Foreign exchange contracts¹		(15	)		12			(3	)		31
Interest rate contracts²		9			12			17			12
Commodity contracts3		—			(1	)		—			(1	)
		(6	)		23			14			42

Reported within Interest expense and Other income/(expense) in the Consolidated Statements of Earnings.

Reported within Interest expense in the Consolidated Statements of Earnings.

Reported within Transportation and other services revenues in the Consolidated Statements of Earnings.

Schedule of Unrealized Gains and Losses Associated With Changes in The Fair Value of Non-Qualifying Derivatives

The following table presents the unrealized gains and losses associated with changes in the fair value of our non-qualifying derivatives:


	Three months ended June 30,					Six months ended June 30,
	2025		2024			2025			2024
(millions of Canadian dollars)
Foreign exchange contracts1		1,195		(209	)		1,233			(939	)
Interest rate contracts2		33		17			(40	)		122
Commodity contracts3		4		(50	)		126			(117	)
Other contracts4		—		—			(3	)		(1	)
Total unrealized derivative fair value gain/(loss), net		1,232		(242	)		1,316			(935	)

Reported within Other income/(expense) in the Consolidated Statements of Earnings.

Reported within Interest expense in the Consolidated Statements of Earnings.

For the respective six months ended periods, reported within Transportation and other services (2025 - $105 million gain; 2024 - $60 million loss), Commodity sales (2025 - $42 million gain; 2024 - $2 million loss), Commodity costs (2025 - $18 million gain; 2024 - $20 million loss) and Operating and administrative expense (2025 - $20 million gain; 2024 - $23 million loss) in the Consolidated Statements of Earnings.The fair value change in our US Gas Utilities is deferred as regulatory assets/(liabilities) (2025 - $59 million asset; 2024 - $12 million liability).

Reported within Operating and administrative expense in the Consolidated Statements of Earnings.

Schedule of Credit Concentrations and Maximum Credit Exposure, With Respect to Derivative Instruments

We have credit concentrations and credit exposure, with respect to derivative instruments, in the following counterparty segments:


	June 30, 2025		December 31, 2024
(millions of Canadian dollars)
Canadian financial institutions		249		344
US financial institutions		191		128
European financial institutions		75		116
Asian financial institutions		32		53
Other1		209		332
		756		973

Other is comprised of commodity clearing house and crude oil, natural gas and power counterparties.

Schedule of Derivative Assets and Liabilities Measured at Fair Value

We have categorized our derivative assets and liabilities measured at fair value as follows:


June 30, 2025	Level 1			Level 2			Level 3			Total Gross Derivative Instruments
(millions of Canadian dollars)
Financial assets
Current derivative assets
Foreign exchange contracts		—			33			—			33
Interest rate contracts		—			32			—			32
Commodity contracts		65			72			254			391
		65			137			254			456
Long-term derivative assets
Foreign exchange contracts		—			75			—			75
Interest rate contracts		—			117			—			117
Commodity contracts		2			14			100			116
		2			206			100			308
Financial liabilities
Current derivative liabilities
Foreign exchange contracts		—			(334	)		—			(334	)
Interest rate contracts		—			(38	)		—			(38	)
Commodity contracts		(79	)		(71	)		(246	)		(396	)
		(79	)		(443	)		(246	)		(768	)
Long-term derivative liabilities
Foreign exchange contracts		—			(721	)		—			(721	)
Interest rate contracts		—			(79	)		—			(79	)
Commodity contracts		(8	)		(23	)		(91	)		(122	)
		(8	)		(823	)		(91	)		(922	)
Total net financial asset/(liability)
Foreign exchange contracts		—			(947	)		—			(947	)
Interest rate contracts		—			32			—			32
Commodity contracts		(20	)		(8	)		17			(11	)
		(20	)		(923	)		17			(926	)


December 31, 2024	Level 1			Level 2			Level 3			Total Gross Derivative Instruments
(millions of Canadian dollars)
Financial assets
Current derivative assets
Foreign exchange contracts		—			125			—			125
Interest rate contracts		—			67			—			67
Commodity contracts		34			72			256			362
Other contracts		—			3			—			3
		34			267			256			557
Long-term derivative assets
Foreign exchange contracts		—			83			—			83
Interest rate contracts		—			146			—			146
Commodity contracts		1			14			182			197
		1			243			182			426
Financial liabilities
Current derivative liabilities
Foreign exchange contracts		—			(804	)		—			(804	)
Interest rate contracts		—			(80	)		—			(80	)
Commodity contracts		(52	)		(116	)		(283	)		(451	)
		(52	)		(1,000	)		(283	)		(1,335	)
Long-term derivative liabilities
Foreign exchange contracts		—			(1,579	)		—			(1,579	)
Interest rate contracts		—			(80	)		—			(80	)
Commodity contracts		(1	)		(31	)		(207	)		(239	)
		(1	)		(1,690	)		(207	)		(1,898	)
Total net financial asset/(liability)
Foreign exchange contracts		—			(2,175	)		—			(2,175	)
Interest rate contracts		—			53			—			53
Commodity contracts		(18	)		(61	)		(52	)		(131	)
Other contracts		—			3			—			3
		(18	)		(2,180	)		(52	)		(2,250	)

Schedule of Significant Unobservable Inputs Used in the Fair Value Measurement of Level 3 Derivative Instruments

The significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments were as follows:


June 30, 2025	Fair Value			Unobservable Input	Minimum Price/ Volatility		Maximum Price/Volatility		Weighted Average Price/Volatility		Unit of Measurement
(fair value in millions of Canadian dollars)
Commodity contracts - financial¹
Natural gas		8		Forward gas price		2.31		8.99		5.22	$/mmbtu2
Crude		5		Forward crude price		63.63		87.11		83.24	$/barrel
Power		(7	)	Forward power price		31.69		185.09		69.54	$/MW/H
Commodity contracts - physical¹
Natural gas		(45	)	Forward gas price		0.35		13.79		4.42	$/mmbtu2
Crude		(6	)	Forward crude price		65.05		112.22		85.79	$/barrel
Power		(7	)	Forward power price		28.70		139.72		70.66	$/MW/H
Commodity options3
Natural gas		69		Forward gas price		3.62		11.03		7.22	$/mmbtu2
				Price volatility	3%		74%		52%
		17

Financial and physical forward commodity contracts are valued using a market approach valuation technique.

One million British thermal units (mmbtu).

Commodity options contracts are valued using an option model valuation technique.

Schedule of Changes in Net Fair Value of Derivative Assets and Liabilities Classified as Level 3 in the Fair Value Hierarchy

Changes in the net fair value of derivative assets and liabilities classified as Level 3 in the fair value hierarchy were as follows:


	Six months ended June 30,
	2025			2024
(millions of Canadian dollars)
Level 3 net derivative liability at beginning of period		(52	)		(131	)
Total gain/(loss), unrealized
Included in earnings1		42			(38	)
Included in OCI		(1	)		15
Included in regulatory assets/liabilities		(132	)		—
Settlements		160			5
Level 3 net derivative asset/(liability) at end of period		17			(149	)

Reported within Transportation and other services revenues, Commodity costs and Operating and administrative expense in the Consolidated Statements of Earnings.

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details