Enbridge Inc. (NYSE:ENB) Q4 2022 Earnings Call Transcript

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And I will not forget the Gas Distribution business. I love the Gas Distribution business. I’ve been there to see employees there as well. That is a growing business. And it is €“ frankly, there is no future without natural gas. I don’t care what anybody says. That’s the reality of the situation. And obviously, having a Gas Distribution business is an important element of that. So that’s been my focus. We will come out in March. I have €“ I’ll say, I pushed some authorities down to people to make decisions so that we can move a little quicker. I think that’s going to be critical, making sure that we can react to our customers, but also the needs of investors going forward and really starting to look at €“ look, I think we’re in a good position for €˜23 where we’re going to go in €˜24, €˜25 and €˜26, and look forward to chatting with you about that in March.

Rob Hope: Looking forward, thank you.

Greg Ebel: Thanks.

Operator: We will take our next question from Theresa Chen with Barclays. Your line is open.

Theresa Chen: Good morning. I’m curious as to your longer-term strategy on the liquid side for the U.S. Gulf Coast, given the series of acquisitions over time. Do you see more to do to short your portfolio there? What is your general outlook?

Greg Ebel: Yes. Well, Colin and I will speak about this in March, but the short answer is absolutely. Again, I think you can just see, since the acquisition of Ingleside, just a little bit over a year or so ago. We’ve continued to kind of move the ball forward on that front. As I said, I think the future both on the Canadian side and the U.S. side is through and out of the continent. We have got to be a bigger player on the Gulf Coast. And I think we are setup to do that. So if you will give us a few weeks, we will see you and we will talk through this. So I think it’s pretty exciting. Actually, what’s going down there, which does not, and I want to be clear just not take away from anything that what’s going on in Western Canada as well.

Particularly on the oil side, look, there is a lot of discussion about gas. But I think as China reopens, and we have €“ and not enough money has been spent on restocking, if you will, the reserves on the oil front and many commodity fronts. I think that’s going to lead to some real opportunities and people being real careful with capital, which is the right thing to do. But as we go through the year, I think you’ll start to see more upward pressure on the price of oil, particularly in the international markets. And let’s see, 3 to 6 months from now, where China is on the reopening, economy is a little softer here, but outside of North America, I think you’re starting to see a little bit of green shoots going on and that’s going to lead longer term to the need for more infrastructure on the Gulf Coast from my perspective.

So we will chat more about that, but that’s my general comments.

Theresa Chen: Thank you.

Greg Ebel: Thanks, Theresa.

Operator: We will take our next question from Robert Catellier with CIBC Capital Markets. Your line is open.

Robert Catellier: Hi, good morning. You partially answered this with respect to your answer to Robert Kwan, but I’m wondering if in the current cost environment, including inflation and higher interest rates, is that causing you to change your approach for rate request specifically risk sharing? Or is it more a matter of just ensuring proper tools are reflected so that you’re covering your proper cost and maybe more frequent rate cases. So maybe you can answer it more on the gas side given your prior comments on liquids.

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