ENBRIDGE INC

CONSOLIDATED STATEMENTS OF EARNINGS

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

CONSOLIDATED STATEMENTS OF CASH FLOWS

1 As at September 30, 2026 and December 31, 2025, long-term restricted cash of$147 million (September 30, 2025 -$141 million) and$143 million (December 31, 2024 -$105 million), respectively, was included in Restricted long-term investments and cash in the Consolidated Statements of Financial Position.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements of Enbridge Inc. ("we", "our", "us" and "Enbridge") have been prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP) and Regulation S-X for interim consolidated financial information. They do not include all of the information and notes required by US GAAP for annual consolidated financial statements and should therefore be read in conjunction with our audited consolidated financial statements and notes for the year ended December 31, 2025. In the opinion of management, the interim consolidated financial statements contain all normal recurring adjustments necessary to present fairly our financial position, results of operations and cash flows for the interim periods reported. These interim consolidated financial statements follow the same significant accounting policies as those included in our audited consolidated financial statements for the year ended December 31, 2025. Amounts are stated in Canadian dollars unless otherwise noted.

Our operations and earnings for interim periods can be affected by seasonal fluctuations within the gas distribution utility businesses, as well as other factors such as supply of and demand for crude oil and natural gas and may not be indicative of annual results.

Certain comparative figures in our interim consolidated financial statements have been reclassified to conform to the current year's presentation.

2. CHANGES IN ACCOUNTING POLICIES

FUTURE ACCOUNTING POLICY CHANGES

Disaggregation of Income Statement Expenses

Accounting Standards Update (ASU) 2024-03 was issued in November 2024 to improve financial reporting by requiring entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The ASU requires entities to disclose 1) the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, (e) depreciation, depletion and amortization recognized as part of oil and gas producing activities, (f) expense reimbursements included in a relevant expense caption, and (g) selling expenses, and 2) a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective January 1, 2027, with interim period disclosure requirements effective after January 1, 2028, and can be applied either prospectively or retrospectively. The additional note disclosures will be included in our December 31, 2027 annual consolidated financial statements and in our interim financial statements beginning in 2028.

3. REVENUE

REVENUE FROM CONTRACTS WITH CUSTOMERS

Major Products and Services

Includes realized and unrealized gains and losses from our hedging program which for the three months ended September 30, 2026 were a net$35 million loss (2025 -$13 million gain) and for the nine months ended September 30, 2026 were a net$28 million loss (2025 -$145 million gain).

Includes revenues from lease contracts for the three months ended September 30, 2026 and 2025 of$106 million and$116 million, respectively, and for the nine months ended September 30, 2026 and 2025 of$428 million and$415 million, 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 represent the amount of receivables derived from contracts with customers.

Contract assets represent the amount of revenues which have 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. Revenues recognized during the three and nine months ended September 30, 2026 included in contract liabilities at the beginning of the period were$118 million and$445 million, respectively. Increases in contract liabilities from cash received, net of amounts recognized as revenues, during the three and nine months ended September 30, 2026 were$245 million and$496 million, respectively.

Performance Obligations

There were no material revenues recognized in the three and nine months ended September 30, 2026 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 are$56.4 billion, of which$2.6 billion and$8.9 billion are expected to be recognized during the remaining three months ending December 31, 2026 and theyear ending December 31, 2027, 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 included in the transaction price only when a significant reversal of cumulative revenue is not probable. 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

Revenue 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.

4. SEGMENTED INFORMATION

Primarily relates to public utilities that are subject to regulation.

Refer to Note 3 - Revenuefor a reconciliation of segment Operating revenues to the Consolidated Statements of Earnings.

The Gas Distribution and Storage segment includes the impact of an impairment recognized for certain rate-regulated assets related to pension and other disallowances as a result of the Public Utilities Commission of Ohio's June 2025 order related to Enbridge Gas Ohio's rate case.

Capital Expenditures 1

Capital expenditures are cash basis plus equity component of the allowance for funds used during construction.

Property, Plant and Equipment

5. EARNINGS PER COMMON SHARE AND DIVIDENDS PER SHARE

NUMERATOR

The numerator used in calculating both basic and diluted earnings per share equals Earnings attributable to common shareholders per the Consolidated Statements of Earnings, including the Redemption value adjustment attributable to Redeemable noncontrolling interests (NCI) per the Consolidated Statements of Changes in Equity.

DENOMINATOR

The denominator of the basic earnings per common share calculation represents the weighted average number of common shares outstanding.

The denominator of the diluted earnings per common share calculation uses the treasury stock method to determine the dilutive impact of stock options and share-settled RSUs. This method assumes any proceeds from the exercise of stock options and vesting of share-settled RSUs would be used to purchase common shares at the average market price during the period. The basic weighted average shares outstanding are adjusted by this dilutive impact to derive the diluted weighted average shares outstanding.

Weighted average shares outstanding used to calculate basic and diluted earnings per common share are as follows:

For the three months ended September 30, 2026,2.3 million anti-dilutive stock options with a weighted average exercise price of$70.49 were excluded from the diluted earnings per common share calculation. There wereno anti-dilutive stock options outstanding for thethree months ended September 30, 2025.

For the nine months ended September 30, 2026 and 2025,1.5 million and 1.6 million, respectively, anti-dilutive stock options with a weighted average exercise price of$70.12 and$60.37, respectively, were excluded from the diluted earnings per common share calculation.

DIVIDENDS PER SHARE

On November 3, 2026, our Board of Directors declared the following quarterly dividends. All dividends are payable on December 1, 2026 to shareholders of record on November 13, 2026.

The quarterly dividend per share paid on Preference Shares, Series G was decreased to$0.29918 from$0.30247 on September 1, 2026 due to the reset of the dividend on a quarterly basis.

The quarterly dividend per share paid on Preference Shares, Series I was decreased to$0.27487 from$0.27789 on September 1, 2026 due to the reset of the dividend on a quarterly basis.

The quarterly dividend per share paid on Preference Shares, Series 4 was decreased to$0.29108 from$0.29427 on September 1, 2026 due to the reset of the dividend on a quarterly basis.

6. ACQUISITION AND DISPOSITIONS

BUSINESS COMBINATIONS

We account for acquisitions using the acquisition method as prescribed by ASC 805 Business Combinations. In accordance with valuation methodologies described in ASC 820 Fair Value Measurement, acquired assets and assumed liabilities are recorded at their estimated fair values as at the date of acquisition.

Salt Creek Midstream Crude Acquisition

On October 9, 2026, through a wholly-owned subsidiary, we acquired from Salt Creek Midstream (Salt Creek) all of the membership interests of FS Crude Holdings, LLC (FS Crude) for total cash consideration of approximately $892 million (US$625 million) (the Salt Creek Crude Acquisition). FS Crude owns 100% of the Orla and Wink North systems and 50% of the Delaware Crossing system, which combined include approximately 500 miles of crude oil gathering infrastructure located in the Delaware Basin. The Salt Creek Crude Acquisition is expected to strengthen our crude oil value chain in the Permian Basin by providing a strategic connection between crude oil production and our Gray Oak and Cactus II Pipeline systems, as well as our Enbridge Ingleside Energy Center.

The purchase price for the Salt Creek Crude Acquisition was preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values at acquisition date. The acquisition resulted in the recognition of approximately $0.6 billion of Property, plant and equipment and $0.3 billion of other net assets acquired.

FS Crude's property, plant and equipment constitute crude oil gathering systems, comprised of pipelines, a terminal, land and right-of-ways. The depreciated replacement cost approach was adopted as the primary valuation methodology to determine the fair value of property, plant and equipment. In determining replacement cost, both indirect costing using relevant inflation indices and direct costing using relevant market quotes were utilized.

The purchase price allocation for the Salt Creek Crude Acquisition was prepared on a preliminary basis and is subject to change as additional information becomes available regarding the fair values and tax bases of assets and liabilities acquired. Any adjustments to the purchase price allocation will be made as soon as practicable, but no later than one year from the date of acquisition.

Common Share Issuance

On September 14, 2026, we closed a public offering of 44,735,000 common shares of Enbridge at a price of $66.85 per share for gross proceeds of $3.0 billion. Net proceeds from the sale of common shares were used to partially fund the Salt Creek Crude Acquisition, with the remaining proceeds available to fund future growth opportunities.

REDEEMABLE NONCONTROLLING INTEREST INVESTMENTS

On July 30, 2026, Westcoast Energy LP Inc. (WELP), our wholly-owned subsidiary, transferred certain of its non-participating Class C units in Westcoast Energy Limited Partnership (Westcoast LP) to a newly formed limited partnership, Westcoast Expansion Financing Limited Partnership (Westcoast Expansion), in exchange for Class I and Class II units. The remaining Class C units were retained by WELP to meet our obligations to Stonlasec8 Indigenous Investments Limited Partnership (the First Nations Partnership), an entity representing 38 First Nations in British Columbia (BC), under the Class C purchase option.

The Class C unitholders fund designated capital programs within Westcoast LP, which owns and operates our Westcoast Energy Inc. (Westcoast) BC Pipeline system. Westcoast Expansion has committed to invest in our Aspen Point and Sunrise Expansion Programs (the Expansions) in exchange for additional non-participating Class C units in Westcoast LP.

On September 3, 2026, KKR & Co. Inc. (KKR), in collaboration with funds and affiliates managed by Apollo, invested $729 million for all of the Class II units of Westcoast Expansion, resulting in an interest in the partnership. In addition to the initial cash consideration, KKR has committed to contribute approximately $2.0 billion to fund the Expansions in exchange for additional Class II units.

The cash consideration of $729 million and a respective redeemable NCI based on the consideration received less transaction costs were recorded in the Consolidated Statements of Financial Position on close, to reflect the interest held by KKR in Westcoast Expansion. Refer to Note 7 - Variable Interest Entities and Note 9 - Redeemable Noncontrolling Interests.

Westcoast Energy Limited Partnership

On July 1, 2025, Westcoast completed a reorganization in which substantially all of the property and assets relating to the BC Pipeline system were transferred to a newly formed partnership, Westcoast LP. On July 2, 2025, the First Nations Partnership invested approximately $736 million to subscribe for all of the Class A units of Westcoast LP, resulting in a 12.50% interest in the partnership. The cash consideration of $736 million and a respective redeemable NCI based on the consideration received less transaction costs were recorded in the Consolidated Statements of Financial Position on close, to reflect the interest held by the First Nations Partnership.

Following the transactions discussed above, we continue to manage and operate the BC Pipeline system through our ownership interest in Westcoast LP. Refer to Note 9 - Redeemable Noncontrolling Interests.

7. VARIABLE INTEREST ENTITIES

CONSOLIDATED VARIABLE INTEREST ENTITIES

Our consolidated variable interest entities (VIEs) consist of legal entities of which we are the primary beneficiary. We are the primary beneficiary when our variable interest(s) provide(s) us with (i) the power to direct the activities of the VIE that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses, or the right to receive benefits, from the VIE that could potentially be significant to the VIE. We determine whether we are the primary beneficiary of a VIE by considering qualitative and quantitative factors, including, but not limited to: decision-making responsibilities, the VIE capital structure, risk and reward sharing, contractual agreements with the VIE, voting rights and level of involvement of other parties.

Westcoast Expansion is a BC limited partnership which holds an ownership interest in Westcoast LP for the purpose of funding construction costs associated with the Expansions. The limited partners, WELP and Tuscan Issuer Ltd. (an affiliate of KKR), hold 19.99% and 80.0% interests in Westcoast Expansion, respectively. The remaining 0.01% general partner interest is held by Westcoast Expansion Financing GP Inc., our wholly-owned subsidiary.

Westcoast Expansion is considered a VIE as it does not have sufficient equity at risk to finance its activities without additional subordinated financial support and its limited partners lack substantive participating rights and kick-out rights. In addition to having the obligation to absorb losses and the right to expected returns, we, through WELP's direct interests and the provisions of the limited partnership agreement, have the ability to direct the activities of Westcoast Expansion's principal operations, thereby making us the primary beneficiary of the VIE. Westcoast Expansion is a consolidated VIE of Enbridge.

The assets of Westcoast Expansion primarily consist of its investment in Westcoast LP, which eliminates upon Enbridge's consolidation. We did not provide any additional financial support to Westcoast Expansion during the period ended September 30, 2026.

8. DEBT

CREDIT FACILITIES

The following table provides details of our committed credit facilities as at September 30, 2026:

Maturity date is inclusive of theone-year term out option for certain credit facilities.

Includes facility draws and commercial paper issuances that are back-stopped by credit facilities.

In July 2026, we renewed our 364-day extendible credit facilities, extending the maturity dates to July 2028, which includes aone-year term out provision from July 2027. We also renewed ourfive-year credit facilities, extending the maturity dates to July 2031. Further, we extended the maturity dates of ourthree-year credit facilities to July 2029.

In addition to the committed credit facilities noted above, we maintain$1.5 billion of uncommitted demand letter of credit facilities, of which$776 million was unutilized as at September 30, 2026. As at December 31, 2025, we had$1.6 billion of uncommitted demand letter of credit facilities, of which$932 million was unutilized.

Our credit facilities carry a weighted average standby fee of 0.1% per annum on the unused portion and draws bear interest at market rates. Certain credit facilities serve as a back-stop to our commercial paper programs and we have the option to extend such facilities, which are currently scheduled to mature from 2027 to 2049.

As at September 30, 2026 and December 31, 2025, commercial paper and credit facility draws, net of short-term borrowings and non-revolving credit facilities that mature within one year, of$14.8 billion and $12.1 billion, respectively, were supported by the availability of long-term committed credit facilities and, therefore, have been classified as long-term debt.

LONG-TERM DEBT ISSUANCES

During thenine months ended September 30, 2026, we completed the following long-term debt issuances totaling$3.0 billion and US$2.0 billion:

In October 2026, Public Service Company of North Carolina, Incorporated closed atwo-tranche offering consisting often-year andthirty-year senior notes for an aggregate principal amount of US$500 million which mature in October 2036 and October 2056, respectively.

LONG-TERM DEBT REPAYMENTS

During thenine months ended September 30, 2026, we completed the following long-term debt repayments totaling$955 million, US$64 million and€22 million:

The notes carried an original maturity date of August 2026.

SUBORDINATED TERM NOTES

As at September 30, 2026 and December 31, 2025, our fixed-to-floating rate and fixed-to-fixed rate subordinated term notes had an aggregate principal value of$16.4 billion and $16.0 billion, respectively.

FAIR VALUE ADJUSTMENT

As at September 30, 2026 and December 31, 2025, the fair value adjustments to decrease total debt assumed in historical acquisitions were$447 million and$430 million, respectively.

DEBT COVENANTS

Our credit facility agreements and term debt trust indentures include standard events of default and covenant provisions whereby accelerated repayment and/or termination of the agreements may result if we were to default on payment or violate certain covenants. As at September 30, 2026, we were in compliance with all such debt covenant provisions.

9. REDEEMABLE NONCONTROLLING INTERESTS

The following table provides additional information regarding Redeemable NCI as presented in our Consolidated Statements of Financial Position:

Represents the Class II units held by KKR.

Represents the Class A units held by the First Nations Partnership.

The changes in our Redeemable NCI were as follows:

In addition to funding the Expansions, Westcoast Expansion has committed to make contributions to Westcoast LP for capital costs for other than designated capital programs in exchange for Class B units. These contributions would be funded by WELP and KKR through additional investments in Westcoast Expansion in exchange for additional Class I and Class II units, respectively.

The Class II units entitle KKR to receive contingently required distributions if certain events occur, including delays in the Expansions commencing commercial operations, force majeure and regulatory disallowances. WELP may also repurchase KKR's Class II units under certain circumstances or during designated call periods, with the repurchase price determined in accordance with the terms of the limited partnership agreement.

As a result of these contingently required distributions, we have classified KKR's Class II units as Redeemable NCI within the mezzanine equity section of the Consolidated Statements of Financial Position. As at September 30, 2026, the Redeemable NCI was recognized at its carrying value as redemption is not probable.

Westcoast Energy Limited Partnership

As at September 30, 2026, the First Nations Partnership held a 12.58% redeemable noncontrolling interest in Westcoast LP, which increased from 12.47% as at December 31, 2025 as a result of their minimum required contribution amount exceeding their pro-rata share of total capital costs for other than designated capital programs.

10. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME

Changes in Accumulated other comprehensive income (AOCI) attributable to our common shareholders for thenine months ended September 30, 2026 and 2025 are as follows:

These components are included in the computation of net periodic benefit credit and are reported within Other income/(expense) in the Consolidated Statements of Earnings.

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

11. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

MARKET RISK

Our earnings, cash flows and other comprehensive income/(loss) (OCI) are subject to movements in foreign exchange rates, interest rates, commodity prices and our share price (collectively, market risks). Formal risk management policies, processes and systems have been designed to mitigate these risks.

The following summarizes the types of market risks to which we are exposed and the risk management instruments used to mitigate them. We use a combination of qualifying and non-qualifying derivative instruments to manage the risks noted below.

Foreign Exchange Risk

We generate certain revenues, incur expenses and hold a number of investments and subsidiaries that are denominated in currencies other than Canadian dollars. As a result, our earnings, cash flows and OCI are exposed to fluctuations resulting from foreign exchange rate variability.

We employ financial derivative instruments to hedge foreign currency-denominated earnings exposure. A combination of qualifying and non-qualifying derivative instruments is used to hedge anticipated foreign currency-denominated revenues and expenses and to manage variability in cash flows. We hedge certain net investments in US dollar-denominated investments and subsidiaries using US dollar-denominated debt.

Interest Rate Risk

Our earnings and cash flows are exposed to short-term interest rate variability due to the regular repricing of our variable rate debt, primarily commercial paper. We have a policy of limiting the maximum floating rate debt to 30% of total debt outstanding. We monitor and adjust our debt portfolio mix of fixed and variable rate debt instruments along with the use of derivative instruments, to support compliance with our policy. We have implemented a program to partially mitigate the impact of short-term interest rate volatility on interest expense via the execution of floating-to-fixed interest rate swaps and costless collars. These swaps have an average fixed rate of 3.1%.

We are exposed to changes in the fair value of fixed rate debt that arise as a result of changes in market interest rates. Pay floating-receive fixed interest rate swaps are used, when applicable, to hedge against future changes to the fair value of fixed rate debt which mitigates the impact of fluctuations in fair value. Executed fixed-to-floating interest rate swaps have an average swap rate of 3.5%.

Our earnings, cash flows and OCI are also exposed to variability in longer term interest rates ahead of anticipated fixed rate term debt issuances. A combination of qualifying and non-qualifying forward starting interest rate swaps is used to hedge against the effect of future interest rate movements. We have established a program including some of our subsidiaries to partially mitigate our exposure to long-term interest rate variability on forecasted term debt issuances via execution of floating-to-fixed interest rate swaps with an average swap rate of 3.7%.

Commodity Price Risk

Our earnings, cash flows and OCI are exposed to changes in commodity prices as a result of our ownership interests in certain assets and investments, as well as through the activities of our energy marketing subsidiaries. These commodities include natural gas, crude oil, power and natural gas liquids (NGL). We employ financial and physical derivative instruments to fix a portion of the variable price exposures that arise from physical transactions involving these commodities. For our US Gas Utilities, changes in derivatives' fair values are deferred as regulatory assets or liabilities until settlement. We use primarily non-qualifying derivative instruments to manage commodity price risk.

Equity Price Risk

Equity price risk is the risk of earnings fluctuations due to changes in our share price. We have exposure to our own common share price through the issuance of various forms of stock-based compensation, which affect earnings through the revaluation of outstanding units every period.

TOTAL DERIVATIVE INSTRUMENTS

We have a policy of entering into individual International Swaps and Derivatives Association, Inc. (ISDA) agreements, or other similar derivative agreements, with the majority of our financial derivative counterparties. These agreements provide for the net settlement of derivative instruments outstanding with specific counterparties in the event of bankruptcy or other significant credit events and reduce our credit risk exposure on financial derivative asset positions in those circumstances.

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.

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

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.

Derivatives Designated as Fair Value Hedges

The following table presents interest rate and 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) or Interest expense in the Consolidated Statements of Earnings. Any excluded components are included in the Consolidated Statements of Comprehensive Income.

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:

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

We estimate that a gain of$11 million from AOCI related to open cash flow hedges will be reclassified to earnings in the next 12 months. Actual amounts reclassified to earnings depend on the foreign exchange rates, interest rates and commodity prices in effect when derivative contracts that are currently outstanding mature. For all forecasted transactions, the maximum term over which we are hedging exposures to the variability of cash flows istwo years as at September 30, 2026.

Non-Qualifying Derivatives

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

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

For the respective nine months ended periods, reported within Transportation and other services revenues (2026 -$28 million loss; 2025 -$101 million gain), Commodity sales (2026 -$263 million gain; 2025 -$46 million loss), Commodity costs (2026 -$331 million loss; 2025 -$206 million gain) and Operating and administrative expense (2026 -$8 million loss; 2025 -$21 million gain) in the Consolidated Statements of Earnings. The fair value change in our US Gas Utilities is deferred as regulatory assets/(liabilities) (2026 -$43 million loss; 2025 -$49 million gain).

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

LIQUIDITY RISK

Liquidity risk is the risk that we will not be able to meet our financial obligations, including commitments and guarantees, as they become due. In order to mitigate this risk, we forecast cash requirements over a 12-month rolling time period to determine whether sufficient funds will be available. Our primary sources of liquidity and capital resources are funds generated from operations, the issuance of commercial paper and draws under committed credit facilities, and long-term debt, which includes medium-term notes. Our shelf prospectuses with securities regulators enable ready access to either the Canadian or US public capital markets, subject to market conditions. In addition, we maintain significant liquidity through committed credit facilities with a diversified group of banks and institutions which enables us to fund all anticipated requirements through extended periods of market disruptions without accessing the capital markets. We were in compliance with all the terms and conditions of our committed credit facility agreements and term debt indentures as at September 30, 2026. As a result, all credit facilities are available to us and the banks are obligated to fund us under the terms of the facilities. We also identify other potential sources of debt and equity funding alternatives, including reinstatement of our dividend reinvestment and share purchase plan or at-the-market equity issuances.

CREDIT RISK

Entering into derivative instruments may result in exposure to credit risk from the possibility that a counterparty will default on its contractual obligations. In order to mitigate this risk, we enter into risk management transactions primarily with institutions that possess strong investment grade credit ratings. Credit risk relating to derivative counterparties is mitigated through the maintenance and monitoring of credit exposure limits, contractual requirements and netting arrangements. We also review counterparty financial strength using external credit rating services and other analytical tools to manage credit risk.

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

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

As at September 30, 2026, we did not provide any letters of credit in lieu of providing cash collateral to our counterparties pursuant to the terms of the relevant ISDA agreements. We heldno cash collateral on derivative asset exposures as at September 30, 2026 and December 31, 2025.

Gross derivative balances have been presented without the effects of collateral posted. Derivative assets are adjusted for non-performance risk of our counterparties using their credit default swap spread rates and are reflected at fair value. For derivative liabilities, our non-performance risk is considered in the valuation.

Credit risk also arises from trade and other long-term receivables, and is mitigated through credit exposure limits and contractual requirements, the assessment of counterparty credit ratings and netting arrangements. Within the Gas Distribution and Storage segment, credit risk is mitigated by the utilities' large and diversified customer base and the ability to recover expected credit losses through the ratemaking process. We actively monitor the financial strength of large industrial customers and, in select cases, have obtained additional security to minimize the risk of default on receivables. Generally, we utilize a loss allowance matrix which contemplates historical credit losses by age of receivables, adjusted for any forward-looking information and management expectations to measure lifetime expected credit losses of receivables. The maximum exposure to credit risk related to non-derivative financial assets is their carrying value.

FAIR VALUE MEASUREMENTS

Our financial assets and liabilities measured at fair value on a recurring basis include derivatives and other financial instruments. We also disclose the fair value of other financial instruments not measured at fair value. The fair value of financial instruments reflects our best estimates of market value based on generally accepted valuation techniques or models and is supported by observable market prices and rates. When such values are not available, we use discounted cash flow analysis from applicable yield curves based on observable market inputs to estimate fair value.

FAIR VALUE OF FINANCIAL INSTRUMENTS

We categorize our financial instruments measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement.

Level 1

Level 1 includes financial instruments measured at fair value based on unadjusted quoted prices for identical assets and liabilities in active markets that are accessible at the measurement date. An active market for a financial instrument is considered to be a market where transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Under the fair value hierarchy, cash and cash equivalents are classified as Level 1. Our Level 1 instruments consist primarily of exchange-traded derivatives used to mitigate the risk of crude oil price fluctuations and US and Canadian treasury bills. We also hold restricted long-term investments in exchange-traded funds and common shares in trusts in accordance with the regulatory requirements of the Canada Energy Regulator (CER) under the Land Matters Consultation Initiative (LMCI), to cover future pipeline decommissioning costs in the state of Minnesota and to satisfy retirement obligations as Wexpro Company (Wexpro) properties are abandoned.

Level 2

Level 2 includes financial instrument valuations determined using directly or indirectly observable inputs other than quoted prices included within Level 1. Financial instruments in this category are valued using models or other industry standard valuation techniques derived from observable market data. Such valuation techniques include inputs such as quoted forward prices, time value, volatility factors and broker quotes that can be observed or corroborated in the market for the entire duration of the financial instrument. Derivatives valued using Level 2 inputs include non-exchange-traded derivatives such as over-the-counter foreign exchange forward and cross-currency swap contracts, interest rate swaps, physical forward commodity contracts, as well as commodity swaps and options for which observable inputs can be obtained.

We have also categorized the fair value of our long-term debt, investments in debt securities held by our captive insurance subsidiary, and restricted long-term investments in Canadian government bonds held in trust in accordance with the CER's regulatory requirements under the LMCI as Level 2. The fair value of our long-term debt is based on quoted market prices for instruments of similar credit risk and tenor. When possible, the fair value of our restricted long-term investments is based on quoted market prices for similar instruments and, if not available, based on broker quotes.

Level 3

Level 3 includes derivative valuations based on inputs which are less observable, unavailable or where the observable data does not support a significant portion of the derivative's fair value. Generally, Level 3 derivatives are longer dated transactions, occur in less active markets, occur at locations where pricing information is not available or have no binding broker quote to support Level 2 classification. We have developed methodologies, benchmarked against industry standards, to determine fair value for these derivatives based on the extrapolation of observable future prices and rates. Derivatives valued using Level 3 inputs primarily include long-dated derivative power, NGL and natural gas contracts, basis swaps, commodity swaps, and power and energy swaps, physical forward commodity contracts, as well as options. We do not have any other financial instruments categorized in Level 3.

We use the most observable inputs available to estimate the fair value of our derivatives. When possible, we estimate the fair value of our derivatives based on quoted market prices. If quoted market prices are not available, we use estimates from third-party brokers. For non-exchange-traded derivatives classified in Levels 2 and 3, we use standard valuation techniques to calculate the estimated fair value. These methods include discounted cash flows for forwards and swaps and Black-Scholes-Merton pricing models for options. Depending on the type of derivative and nature of the underlying risk, we use observable market prices (interest, foreign exchange, commodity and share price) and volatility as primary inputs to these valuation techniques. Finally, we consider our own credit default swap spread, as well as the credit default swap spreads associated with our counterparties, in our estimation of fair value.

Fair Value of Derivatives

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

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

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.

If adjusted, the significant unobservable inputs disclosed in the table above would have a direct impact on the fair value of our Level 3 derivative instruments. The significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments include forward commodity prices. Changes in forward commodity prices could result in significantly different fair values for our Level 3 derivatives.

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

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

There wereno transfers into or out of Level 3 as at September 30, 2026 or December 31, 2025.

Net Investment Hedges

We currently have designated a portion of our US dollar-denominated debt as a hedge of our net investment in US dollar-denominated investments and subsidiaries.

During the nine months ended September 30, 2026 and 2025, we recognized unrealized foreign exchange losses of$525 million and gains of$297 million, respectively, on the translation of US dollar-denominated debt, in OCI. During the nine months ended September 30, 2026 and 2025, we recognized realized losses ofnil and$81 million, respectively, associated with the settlement of US dollar-denominated debt that had matured during the period, in OCI.

Fair Value of Other Financial Instruments

Certain long-term investments in other entities with no actively quoted prices are classified as Fair Value Measurement Alternative (FVMA) investments and are recorded at cost less impairment. The carrying value of FVMA investments totaled$190 million and$185 million as at September 30, 2026 and December 31, 2025, respectively.

We have restricted long-term investments and cash held in trust for the purpose of funding pipeline abandonment in accordance with the CER's regulatory requirements under the LMCI, to cover future pipeline decommissioning costs in the state of Minnesota and to satisfy retirement obligations as Wexpro properties are abandoned. Information regarding these investments is as follows:

Investments are recognized at fair value and included in Restricted long-term investments and cash and Cash and cash equivalents in the Consolidated Statements of Financial Position.

During the nine months ended September 30, 2026, we purchased and sold investments totaling$402 million and$256 million, respectively (2025 - purchases of$1.1 billion and sales of$995 million). The resulting net cash flow impact is presented under Cash Flows from Investing Activities in the Consolidated Statements of Cash Flows.

We have a wholly-owned captive insurance subsidiary whose principal activity is providing insurance and reinsurance coverage for certain insurable property and casualty risk exposures of our operating subsidiaries and certain equity investments. As at September 30, 2026, our investments in debt securities held by our captive insurance subsidiary had a fair value and cost of$1.3 billion (December 31, 2025 -$1.2 billion). These investments in debt securities are recognized at fair value, classified as Level 2 in the fair value hierarchy, and are recorded in Long-term investments in the Consolidated Statements of Financial Position. There were unrealized holding losses of$30 million and$48 million for the three and nine months ended September 30, 2026, respectively (2025 - gains ofnil and$1 million, respectively).

As at September 30, 2026, the maturities for our investments in debt securities were as follows:

As at September 30, 2026 and December 31, 2025, our long-term debt, including finance lease liabilities, had a carrying value before debt issuance costs of$113.2 billion and $104.4 billion, respectively, and a fair value of$109.2 billion and $102.7 billion, respectively.

The fair value of financial assets and liabilities other than derivative instruments, certain long-term investments in other entities, restricted long-term investments, investments held by our captive insurance subsidiary and long-term debt described above approximate their carrying value due to the short period to maturity.

12. INCOME TAXES

The effective income tax rates for the three months ended September 30, 2026 and 2025 were 23.3% and 27.2%, respectively, and for the nine months ended September 30, 2026 and 2025 were 23.4% and 22.9%, respectively.

The period-over-period changes in the effective income tax rates reflect changes in earnings between the comparative periods and the relative impacts of certain items recognized in each respective period, including higher US minimum tax, the absence of US investment tax credits in 2026, and the impact of rate-regulated accounting for income taxes largely attributable to the Reaccelerated Investment Incentive Property rules enacted in March 2026 as part of Bill C-15 (45-1), Budget Implementation Act, No. 1.

13. OTHER INCOME/(EXPENSE)

Primarily consists of allowance for equity funds used during construction and third party interest income.

14. CONTINGENCIES

LITIGATION

We and our subsidiaries are subject to various legal and regulatory actions and proceedings which arise in the normal course of business, including interventions in regulatory proceedings and challenges to regulatory approvals and permits. While the final outcome of such actions and proceedings cannot be predicted with certainty, management believes that the resolution of such actions and proceedings will not have a material impact on our interim consolidated financial position or results of operations.

INSURANCE

Not all risks are insurable or are insured by us. For those risks that we do insure, the majority are self-insured through our wholly-owned captive insurance subsidiary, which requires certain assumptions and management judgment regarding the frequency and severity of claims, claim development and settlement practices and the selection of estimated loss among estimates derived using different methods. Our self-insurance coverage is also subject to terms and conditions, exclusions and large deductibles which may reduce or eliminate coverage in certain circumstances. Our self-insurance coverage is generally renewed annually and premiums, terms, policy limits and/or deductibles can vary substantially based on factors like market conditions.

We can give no assurance that we will be able to maintain adequate self-insurance coverage in the future at rates or on other terms we consider commercially reasonable. In such a case, we may decide not to insure those risks.

In the unlikely event multiple insurable incidents occur which exceed coverage limits within the same insurance period, the total coverage will be allocated among entities on an equitable basis, based on an allocation agreement we have entered into with us and other subsidiaries.