Enbridge Q3: US$2.55 Billion Tallgrass Crude Deal, Westcoast Stake Sale and $38 Billion Backlog

Enbridge Inc. reported third-quarter adjusted EBITDA of $4.4 billion on Friday and reaffirmed its 2026 guidance, while detailing a run of acquisitions and a minority stake sale in its British Columbia gas system. The Calgary-based pipeline operator said in its Nov. 6 release that it placed more than $3 billion of gas transmission projects into service during the quarter. Pembina Pipeline and TC Energy reported a day earlier, and the three releases together show where Canadian midstream capital is going.

Enbridge Adds Rockies Crude Assets and Sells a Westcoast Stake

Enbridge announced on Sept. 9 that it will buy the crude oil business of Tallgrass Energy for cash consideration of about US$2.55 billion. The package includes a 75% operating interest in the 460,000 barrel-per-day Pony Express pipeline, a 51% interest in Powder River Gateway at about 240,000 barrels per day, and about 8.4 million barrels of crude storage. It also includes the Stanchion marketing business and the US$0.3 billion PXP2 expansion, due in service in late 2027. The deal remains subject to regulatory approvals and closing conditions.

Enbridge also closed its roughly US$0.6 billion Salt Creek Midstream crude gathering purchase effective Oct. 9, with contract lives averaging about 10 years. A third agreement covers Laramie Energy assets tied to Wexpro for US$485 million, expected to close in the fourth quarter. A $3.0 billion common equity offering, closed Sept. 14, helped fund the Tallgrass and Salt Creek purchases.

On the gas side, KKR and Apollo contributed about $0.7 billion at closing for a minority stake in Westcoast, Enbridge's B.C. Pipeline system. They have committed about $2.0 billion more toward the Aspen Point and Sunrise expansions. Their ownership rises to 29% when Sunrise enters service in 2028, and Enbridge keeps majority ownership and operation with a right to repurchase the stake between years seven and 14.

What the Tallgrass Price Implies Per Barrel

Enbridge did not disclose an EBITDA multiple for Tallgrass. Oil Authority calculated a rough capacity metric from the disclosed figures. A 75% share of Pony Express equals about 345,000 barrels per day, and 51% of Powder River Gateway adds about 122,000 barrels per day, for roughly 467,000 barrels per day of net pipeline capacity.

Dividing US$2.55 billion by that capacity gives about US$5,460 per daily barrel. The price also covers storage and marketing, so the figure overstates the pipe-only cost.

Enbridge's secured growth backlog stands at $38 billion, which equals about 1.9 times the $20.5 billion midpoint of its 2026 adjusted EBITDA guidance of $20.2 billion to $20.8 billion.

Quarterly Results and Leadership Change

Earnings to common shareholders were $1.3 billion, or $0.59 per share, compared with $0.7 billion, or $0.30 per share, a year earlier. Adjusted earnings were $1.1 billion, or $0.49 per share.

Rolling 12-month debt-to-EBITDA was 5.1 times, which Enbridge said was slightly above its target because of foreign exchange translation. President and Chief Executive Greg Ebel said in the release that "our integrated networks are increasingly important to providing the reliable, affordable energy our customers require." Ebel said he will retire in January and named Michele Harradence as his successor.

Pembina and TC Energy Point the Same Direction

Pembina Pipeline said in its Nov. 5 release that adjusted EBITDA rose C$94 million, or 9%, to C$1,128 million. Earnings were C$570 million, up 99%. The company raised the low end of its 2026 adjusted EBITDA guidance to C$4.45 billion to C$4.55 billion from C$4.35 billion to C$4.55 billion, and said it is trending toward the upper end.

Pembina reported that its Cedar LNG floating vessel was more than 77% complete at the end of the quarter. It also said it holds a non-binding agreement for a 10% interest during construction in Pacific Link, the proposed pipeline of about 1 million barrels per day to the West Coast that received Project of National Interest status on Oct. 1. Canadian Natural Resources, covered in an earlier Oil Authority report, also welcomed that designation.

TC Energy said Thursday that third-quarter comparable EBITDA was $3.0 billion, compared with $2.7 billion a year earlier, and raised its 2026 comparable EBITDA outlook to $11.8 billion to $12.0 billion. It announced about $3 billion of new in-corridor growth projects. Year-to-date sanctioned projects total about $6 billion at a weighted average build multiple of about 6.5 times. CEO François Poirier said "our growth will be driven by the continued conversion of our origination pipeline."

How This Compares With Other Canadian Midstream Moves

Pembina and TC Energy are adding capacity inside existing corridors, and Oil Authority covered the Gibson Energy Chauvin pipeline expansion separately. Enbridge is the outlier, buying US crude infrastructure while also bringing outside capital into its B.C. gas system.

That split matters for Canadian producers. Enbridge's Liquids Pipelines purchases add Rockies-to-Cushing capacity rather than new Canadian takeaway, while Westcoast, TC Energy and Pembina spending targets Western Canadian gas and LNG supply chains.