Enhanced Investments - Financial Portal

Published: 2020-05-07

ENBRIDGE INC.
	CONSOLIDATED FINANCIAL STATEMENTS

		(unaudited)
March 31, 2020

	ENBRIDGE INC.
		CONSOLIDATED STATEMENTS OF EARNINGS
			Three months ended
				March 31,
				2020	2019
						(unaudited; millions of Canadian dollars, except per share amounts)

						Operating revenues

						Commodity sales	7,389		6,632
						Transportation and other services	3,208		4,348
						Gas distribution sales	1,416		1,876
						Total operating revenues (Note 3)	12,013		12,856
						Operating expenses
						Commodity costs	7,163		6,565
						Gas distribution costs	855	1,207
						Operating and administrative	1,600		1,625
						Depreciation and amortization	882	840
						Total operating expenses	10,500		10,237
						Operating income	1,513		2,619
						Income from equity investments	163	413
						Impairment of equity investments (Note 9)	(1,736)		—
						Other income/(expense)
						Net foreign currency gain/(loss)	(956)	214
						Other	(191)	46
						Interest expense	(706)	(685)
						Earnings/(loss) before income taxes	(1,913)		2,607
						Income tax recovery/(expense) (Note 11)	549	(584)
						Earnings/(loss)	(1,364)		2,023
						(Earnings)/loss attributable to noncontrolling interests	31	(37)
						Earnings/(loss) attributable to controlling interests	(1,333)		1,986
						Preference share dividends	(96)	(95)
						Earnings/(loss) attributable to common shareholders	(1,429)		1,891
						Earnings/(loss) per common share attributable to common shareholders (Note 5)	(0.71)		0.94
						Diluted earnings/(loss) per common share attributable to common shareholders
						(Note 5)	(0.71)		0.94
						See accompanying notes to the interim consolidated financial statements.
1

	ENBRIDGE INC.
		CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
			Three months ended
				March 31,
				2020	2019

		(unaudited; millions of Canadian dollars)

		Earnings/(loss)	(1,364)		2,023
		Other comprehensive income/(loss), net of tax
		Change in unrealized loss on cash flow hedges		(513)	(192)
		Change in unrealized gain/(loss) on net investment hedges		(715)	94
		Other comprehensive income/(loss) from equity investees		(10)	12
		Excluded components of fair value hedges		3	—
		Reclassification to earnings of loss on cash flow hedges		32	11
		Reclassification to earnings of pension and other postretirement benefits
		(OPEB) amounts		3	38
		Foreign currency translation adjustments	5,637		(1,291)
		Other comprehensive income/(loss), net of tax	4,437		(1,328)
		Comprehensive income	3,073		695
		Comprehensive (income)/loss attributable to noncontrolling interests		(145)	13
		Comprehensive income attributable to controlling interests	2,928		708
		Preference share dividends		(96)	(95)
		Comprehensive income attributable to common shareholders	2,832		613
		See accompanying notes to the interim consolidated financial statements.
2

	ENBRIDGE INC.
		CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
			Three months ended
			March 31,
			2020		2019

				(unaudited; millions of Canadian dollars, except per share amounts)Preference shares (Note 5)
				Balance at beginning and end of period	7,747		7,747
				Common shares (Note 5)
				Balance at beginning of period	64,746		64,677
				Shares issued on exercise of stock options		14	51
				Balance at end of period	64,760		64,728
				Additional paid-in capital
				Balance at beginning of period		187	—
				Stock-based compensation		14	4
				Options exercised		(16)	(43)
				Change in reciprocal interest		12	109
				Other		5	2
				Balance at end of period		202	72
				Deficit
				Balance at beginning of period	(6,314)		(5,538)
				Earnings/(loss) attributable to controlling interests	(1,333)		1,986
				Preference share dividends		(96)	(95)
				Dividends paid to reciprocal shareholder		5	5
				Modified retrospective adoption of ASU 2016-13 Financial Instruments - Credit Losses (Note 2)		(66)	—
				Other		(4)	2
				Balance at end of period	(7,808)		(3,640)
				Accumulated other comprehensive income/(loss) (Note 8)
				Balance at beginning of period	(272)		2,672
				Other comprehensive income/(loss) attributable to common shareholders, net of tax	4,261		(1,278)
				Other		—	55
				Balance at end of period	3,989		1,449
				Reciprocal shareholding
				Balance at beginning of period		(51)	(88)
				Change in reciprocal interest		4	37
				Balance at end of period		(47)	(51)
				Total Enbridge Inc. shareholders’ equity	68,843		70,305
				Noncontrolling interests
				Balance at beginning of period	3,364		3,965
				Earnings/(loss) attributable to noncontrolling interests		(31)	37
				Other comprehensive income/(loss) attributable to noncontrolling interests, net of tax
		Change in unrealized loss on cash flow hedges				(2)	(1)
		Foreign currency translation adjustments				178	(49)
						176	(50)

				Comprehensive income/(loss) attributable to noncontrolling interests		145	(13)
				Contributions		15	3
				Distributions		(76)	(46)
				Redemption of preferred shares held by subsidiary		—	(300)
				Other		—	5
				Balance at end of period	3,448		3,614
				Total equity	72,291		73,919
				Dividends paid per common share	0.810		0.738
				Earnings/(loss) per common share attributable to common shareholders (Note 5)	(0.71)		0.94
				Diluted earnings/(loss) per common share attributable to common shareholders (Note 5)	(0.71)		0.94
				See accompanying notes to the interim consolidated financial statements.
3

	ENBRIDGE INC.
		CONSOLIDATED STATEMENTS OF CASH FLOWS
			Three months ended
				March 31,
						2020		2019
					(unaudited; millions of Canadian dollars)Operating activities
					Earnings/(loss)	(1,364)		2,023
					Adjustments to reconcile earnings to net cash provided by operating activities:
					Depreciation and amortization	882	840
					Deferred income tax (recovery)/expense	(713)		435
					Changes in unrealized (gain)/loss on derivative instruments, net (Note 10)	1,556		(538)
					Earnings from equity investments	(163)		(413)
					Distributions from equity investments	428	466
					Impairment of equity investments (Note 9)	1,736		—
					Other	253	30
					Changes in operating assets and liabilities	194	(667)
					Net cash provided by operating activities	2,809		2,176
					Investing activities
					Capital expenditures	(1,147)		(1,612)
					Long-term investments and restricted long-term investments	(87)	(565)
					Distributions from equity investments in excess of cumulative earnings	77	139
					Additions to intangible assets	(69)	(26)
					Affiliate loans, net	(44)	(84)
					Net cash used in investing activities	(1,270)		(2,148)
					Financing activities
					Net change in short-term borrowings	(63)	(154)
					Net change in commercial paper and credit facility draws	1,159		2,773
					Debenture and term note issues, net of issue costs	990	1,195
					Debenture and term note repayments	(1,657)		(1,789)
					Contributions from noncontrolling interests	15	3
					Distributions to noncontrolling interests	(76)	(46)
					Common shares issued	1	18
					Preference share dividends	(96)	(90)
					Common share dividends	(1,641)		(1,486)
					Redemption of preferred shares held by subsidiary	—	(300)
					Other	(18)	(25)
					Net cash provided by/(used in) financing activities	(1,386)		99
					Effect of translation of foreign denominated cash and cash equivalents and
					restricted cash	11	(7)
					Net increase in cash and cash equivalents and restricted cash	164	120
					Cash and cash equivalents and restricted cash at beginning of period	676	637
					Cash and cash equivalents and restricted cash at end of period	840	757
					See accompanying notes to the interim consolidated financial statements.
4

	ENBRIDGE INC.
		CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
			March 31,		December 31,
				2020		2019
							(unaudited; millions of Canadian dollars; number of shares in millions)AssetsCurrent assets
							Cash and cash equivalents	799	648
							Restricted cash	41	28
							Accounts receivable and other	6,574	6,781
							Accounts receivable from affiliates	38	69
							Inventory	699	1,299
				8,151		8,825
							Property, plant and equipment, net	98,483		93,723
							Long-term investments	15,986		16,528
							Restricted long-term investments	443	434
							Deferred amounts and other assets	8,155	7,433
							Intangible assets, net	2,239	2,173
							Goodwill	35,549		33,153
							Deferred income taxes	1,248	1,000
							Total assets	170,254		163,269
							Liabilities and equityCurrent liabilities
							Short-term borrowings	835	898
							Accounts payable and other	8,306	10,063
							Accounts payable to affiliates	11	21
							Interest payable	615	624
							Current portion of long-term debt	4,221	4,404
			13,988			16,010
							Long-term debt	63,571		59,661
							Other long-term liabilities	10,499		8,324
							Deferred income taxes	9,905	9,867
			97,963			93,862
							Contingencies (Note 13)Equity
							Share capital
		Preference shares		7,747		7,747
		Common shares (2,025 and 2,025 outstanding at March 31, 2020 and
		December 31, 2019, respectively)	64,760			64,746
							Additional paid-in capital	202	187
							Deficit	(7,808)		(6,314)
							Accumulated other comprehensive income/(loss) (Note 8)	3,989	(272)
							Reciprocal shareholding	(47)	(51)
							Total Enbridge Inc. shareholders’ equity	68,843		66,043
							Noncontrolling interests	3,448	3,364
			72,291			69,407
							Total liabilities and equity	170,254		163,269
							See accompanying notes to the interim consolidated financial statements.
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	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 (U.S. GAAP) and Regulation S-X for interim consolidated financial information. They do not include all of the information and notes required by U.S. 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, 2019. 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, 2019, except for the adoption of new standards (Note 2). 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 the supply of and demand for crude oil and natural gas, and may not be indicative of annual results.
	2. CHANGES IN ACCOUNTING POLICIES ADOPTION OF NEW ACCOUNTING STANDARDS Clarifying Interaction between Collaborative Arrangements and Revenue from Contracts with CustomersEffective January 1, 2020, we adopted Accounting Standards Update (ASU) 2018-18 on a retrospective basis. The new standard was issued in November 2018 to provide clarity on when transactions between entities in a collaborative arrangement should be accounted for under the new revenue standard, Accounting Standards Codification (ASC) 606. In determining whether transactions in collaborative arrangements should be accounted for under the revenue standard, the update specifies that entities shall apply unit of account guidance to identify distinct goods or services and whether such goods and services are separately identifiable from other promises in the contract. ASU 2018-18 also precludes entities from presenting transactions with a collaborative partner which are not in scope of the new revenue standard together with revenue from contracts with customers. The adoption of this ASU did not have a material impact on our consolidated financial statements.
	Disclosure EffectivenessEffective January 1, 2020, we adopted ASU 2018-13 on both a retrospective and prospective basis depending on the change. The new standard was issued to improve the disclosure requirements for fair value measurements by eliminating and modifying some disclosures, while also adding new disclosures. The adoption of this ASU did not have a material impact on our consolidated financial statements.
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	Accounting for Credit LossesEffective January 1, 2020, we adopted ASU 2016-13 on a modified retrospective basis.
	The new standard was issued in June 2016 with the intent of providing financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The previous accounting treatment used the incurred loss methodology for recognizing credit losses that delayed the recognition until it was probable a loss had been incurred. The accounting update adds a new impairment model, known as the current expected credit loss model, which is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the Financial Accounting Standards Board believes results in more timely recognition of such losses.
	Further, ASU 2018-19 was issued in November 2018 to clarify that operating lease receivables should be accounted for under the new leases standard, ASC 842, and are not within the scope of ASC 326, Financial Instruments - Credit Losses.
	For accounts receivable, a loss allowance matrix is utilized to measure lifetime expected credit losses. The matrix contemplates historical credit losses by age of receivables, adjusted for any forward-looking information and management expectations. Other loan receivables and off-balance sheet commitments in scope of the new standard utilize a discounted cash flow methodology which calculates the current expected credit losses based on historical default probability rates associated with the credit rating of the counterparty and the related term of the loan or commitment, adjusted for forward-looking information and management expectations.
	On January 1, 2020 we recorded $66 million of additional Deficit on our Statements of Financial Position in connection with the adoption of ASU 2016-13. The adoption of this ASU did not have a material impact on the Consolidated Statements of Earnings, Comprehensive Income or Cash Flows during the period.
	FUTURE ACCOUNTING POLICY CHANGES Reference Rate ReformASU 2020-04 was issued in March 2020 to provide temporary optional guidance in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles when accounting for contract modifications, hedging relationships and other transactions impacted by rate reform, subject to meeting certain criteria. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. We are currently assessing the impact of the new standard and the rate reform on our consolidated financial statements.
	Clarifying Interaction between Equity Securities, Equity Method Investments and DerivativesASU 2020-01 was issued in January 2020 and clarifies that observable transactions should be considered for the purpose of applying the measurement alternative in accordance with ASC 321 immediately before the application or upon discontinuance of the equity method of accounting. Furthermore, the ASU clarifies that forward contracts or purchased options on equity securities are not out of scope of ASC 815 guidance only because, upon the contracts’ exercise, the equity securities could be accounted for under the equity method of accounting or fair value option. ASU 2020-01 is effective January 1, 2021 with early adoption permitted and is applied prospectively. We are currently assessing the impact of the new standard on our consolidated financial statements.
7

	Accounting for Income TaxesASU 2019-12 was issued in December 2019 with the intent of simplifying the accounting for income taxes. The accounting update removes certain exceptions to the general principles in ASC 740 as well as provides simplification by clarifying and amending existing guidance. ASU 2019-12 is effective January 1, 2021 and entities are permitted to adopt the standard early. We are currently assessing the impact of the new standard on our consolidated financial statements.
	Disclosure EffectivenessASU 2018-14 was issued in August 2018 to improve disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendment modifies the current guidance by adding and removing several disclosure requirements while also clarifying the guidance on current disclosure requirements. ASU 2018-14 is effective January 1, 2021 and entities are permitted to adopt the standard early. The adoption of ASU 2018-14 is not expected to have a material impact on our consolidated financial statements.
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	3. REVENUES
	REVENUE FROM CONTRACTS WITH CUSTOMERS Major Products and Services
			Gas		Gas
				Transmission	Distribution						Renewable
		Liquids	and		and	Power	Energy	Eliminations	Three months endedMarch 31, 2020(millions of Canadian dollars)Transportation revenues
		Pipelines		Midstream	Storage						Generation	Services	and Other Consolidated
		2,440	1,255		215				—	—			—	3,910
	Storage and other revenues	26	79					47				—	—			—	152
	Gas gathering and processing
	revenues	—	7					—				—	—			—	7
	Gas distribution revenue	—	—	1,417									—	—			—	1,417
	Electricity and transmission
	revenues	—	—					—				50	—			—	50
	Total revenue from contracts with
	customers	2,466	1,341	1,679									50	—			—	5,536
	Commodity sales	—	—					—				—	7,389			—	7,389
	Other revenues1,2	(1,017)	16					(1)				103	(7)			(6)	(912)
	Intersegment revenues	85	—					4				—	16			(105)	—
	Total revenues	1,534	1,357	1,682									153	7,398			(111)	12,013
			Gas		Gas
				Transmission	Distribution						Renewable
		Liquids	and		and	Power	Energy	Eliminations	Three months endedMarch 31, 2019(millions of Canadian dollars)Transportation revenues
		Pipelines		Midstream	Storage						Generation	Services	and Other Consolidated
		2,214	1,137		249				—	—			—	3,600
	Storage and other revenues	27	53					54				—	—			—	134
	Gas gathering and processing
	revenues	—	116		—				—	—			—	116
	Gas distribution revenues	—	—	1,856									—	—			—	1,856
	Electricity and transmission
	revenues	—	—					—				50	—			—	50
	Total revenue from contracts with
	customers	2,241	1,306	2,159									50	—			—	5,756
	Commodity sales	—	—					—				—	6,632			—	6,632
	Other revenues1, 2	340	10					29				102	6		(19)	468
	Intersegment revenues	77	2					3				—	35			(117)	—
	Total revenues	2,658	1,318	2,191									152	6,673			(136)	12,856
	1 Includes mark-to-market gains/(losses) from our hedging program for the three months ended March 31, 2020 and 2019 of $1,106
	million loss and $258 million gain, respectively.
	2 Includes revenues from lease contracts for the three months ended March 31, 2020 and 2019 of $158 million and $164 million,
	respectively.
	We disaggregate revenues into categories which represent our principal performance obligations within each business segment because these revenues categories represent the most significant revenue streams in each segment and consequently are considered to be the most relevant revenues information for management to consider in evaluating performance.
	Contract Balances
								Contract			Contract
						Receivables		Assets		Liabilities
	(millions of Canadian dollars)Balance as at December 31, 2019
							2,099	216			1,424
	Balance as at March 31, 2020						2,287	224			1,500
	Contract receivables represent the amount of receivables derived from contracts with customers.
9

	Contract assets represent the amount of revenues which has been recognized in advance of payments received for performance obligations we have fulfilled (or partially fulfilled) and prior to the point in time at which our right to the payment is unconditional. Amounts included in contract assets are transferred to accounts receivable when our right to 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 months ended March 31, 2020 included in contract liabilities at the beginning of the period was $86 million. Increases in contract liabilities from cash received, net of amounts recognized as revenues during the three months ended March 31, 2020 were $76 million.
	Performance Obligations There were no material revenues recognized in the three months ended March 31, 2020 from performance obligations satisfied in previous periods.
	Revenues to be Recognized from Unfulfilled Performance ObligationsTotal revenues from performance obligations expected to be fulfilled in future periods is $68.0 billion, of which $5.5 billion and $6.4 billion is expected to be recognized during the nine months ending December 31, 2020, and the year ending December 31, 2021, respectively.
	The revenues excluded from the amounts above based on optional exemptions available under ASC 606, as explained below, represent a significant portion of our overall revenues and revenue 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, revenue 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
			Gas	Gas
TransmissionDistributionRenewable
		Liquids	and	and	Power	Energy	Three months endedMarch 31, 2020(millions of Canadian dollars)Revenues from products transferred at a point
		Pipelines	Midstream			Storage		Generation	Services Consolidated
	in time	—	—	15		—	—	15
	Revenues from products and services
	transferred over time1	2,466	1,341			1,664			50	—	5,521
	Total revenue from contracts with customers	2,466	1,341			1,679			50	—	5,536
			Gas	Gas
TransmissionDistributionRenewable
		Liquids	and	and	Power	Energy	Three months endedMarch 31, 2019(millions of Canadian dollars)Revenues from products transferred at a point
		Pipelines	Midstream			Storage		Generation	Services Consolidated
	in time	—	—	17		—	—	17
	Revenues from products and services
	transferred over time1	2,241	1,306			2,142			50	—	5,739
	Total revenue from contracts with customers	2,241	1,306			2,159			50	—	5,756
	1 Revenues 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.
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	4. SEGMENTED INFORMATION
			Gas		Gas
				Transmission	Distribution						Renewable
		Liquids	and		and	Power	Energy	Eliminations	Three months endedMarch 31, 2020(millions of Canadian dollars)Revenues
		Pipelines		Midstream	Storage						Generation	Services	and Other Consolidated
		1,534	1,357	1,682									153	7,398			(111)	12,013
	Commodity and gas distribution
	costs	(7)	—					(872)				—	(7,243)			104	(8,018)
	Operating and administrative	(865)	(507)		(249)				(50)	(28)			99	(1,600)
	Income/(loss) from equity
	investments	197	(75)					23				16	2		—	163
	Impairment of equity investments	—	(1,736)		—				—	—			—	(1,736)
	Other income/(expense)	(9)	(93)					20		1	(8)			(1,058)	(1,147)
	Earnings/(loss) before interest,
	income taxes, and depreciationand amortization
		850	(1,054)		604				120	121			(966)	(325)
	Depreciation and amortization										(882)
	Interest expense															(706)
	Income tax recovery															549
	Loss												(1,364)
	Capital expenditures1	500	391		222				23	—			22	1,158
			Gas		Gas
				Transmission	Distribution						Renewable
		Liquids	and		and	Power	Energy	Eliminations	Three months endedMarch 31, 2019(millions of Canadian dollars)
		Pipelines		Midstream	Storage						Generation	Services	and Other Consolidated

	Revenues	2,658	1,318	2,191									152	6,673			(136)	12,856
	Commodity and gas distribution
	costs	(6)	—	(1,264)									(1)	(6,629)			128	(7,772)
	Operating and administrative	(801)	(513)		(294)				(42)	(33)			58	(1,625)
	Income/(loss) from equity
	investments	197	197		11				14	(7)			1	413
	Other income	24	18					18		1	2		197	260
	Earnings before interest, income
	taxes, and depreciation andamortization
		2,072	1,020		662				124	6		248	4,132
	Depreciation and amortization										(840)
	Interest expense										(685)

	Income tax expense										(584)

	Earnings															2,023
	Capital expenditures1	1,020	394		173				14	1		25	1,627

	1 Includes allowance for equity funds used during construction.
	5. EARNINGS PER COMMON SHARE AND DIVIDENDS PER SHARE BASICEarnings per common share is calculated by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding. The weighted average number of common shares outstanding has been reduced by our pro-rata weighted average interest in our own common shares of 6 million for both the three months ended March 31, 2020 and 2019, resulting from our reciprocal investment in Noverco Inc.
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	DILUTEDThe treasury stock method is used to determine the dilutive impact of stock options. This method assumes any proceeds from the exercise of stock options would be used to purchase common shares at the average market price during the period.
	Weighted average shares outstanding used to calculate basic and diluted earnings per share are as follows:
		Three months ended
			March 31,
			2020	2019
	(number of common shares in millions)Weighted average shares outstanding
		2,019		2,016
	Effect of dilutive options		2	3
	Diluted weighted average shares outstanding	2,021		2,019
	For the three months ended March 31, 2020 and 2019, 16.7 million and 10.5 million, respectively, anti-dilutive stock options with a weighted average exercise price of $56.26 and $55.32, respectively, were excluded from the diluted earnings per common share calculation.
	DIVIDENDS PER SHAREOn May 5, 2020, our Board of Directors declared the following quarterly dividends. All dividends are payable on June 1, 2020, to shareholders of record on May 15, 2020.
			Dividend per
				share
	Common Shares1			$0.81000
	Preference Shares, Series A			$0.34375
	Preference Shares, Series B			$0.21340
	Preference Shares, Series C2			$0.25458
	Preference Shares, Series D			$0.27875
	Preference Shares, Series F			$0.29306
	Preference Shares, Series H			$0.27350
	Preference Shares, Series J		US$0.30540
	Preference Shares, Series L		US$0.30993
	Preference Shares, Series N			$0.31788
	Preference Shares, Series P			$0.27369
	Preference Shares, Series R			$0.25456
	Preference Shares, Series 1		US$0.37182
	Preference Shares, Series 3			$0.23356
	Preference Shares, Series 5		US$0.33596
	Preference Shares, Series 7			$0.27806
	Preference Shares, Series 9			$0.25606
	Preference Shares, Series 113			$0.24613
	Preference Shares, Series 13			$0.27500
	Preference Shares, Series 15			$0.27500
	Preference Shares, Series 17			$0.32188
	Preference Shares, Series 19			$0.30625
	1 The quarterly dividend per common share was increased 9.8% to $0.81 from $0.738, effective March 1, 2020. 2 The quarterly dividend per share paid on Series C was increased to $0.25458 from $0.25305 on March 1, 2020 due to reset on a
	quarterly basis following the date of issuance of the Series C Preference Shares.
	3 The quarterly dividend per share paid on Series 11 was decreased to $0.24613 from $0.275 on March 1, 2020, due to the reset of
	the annual dividend on March 1, 2020, and every five years thereafter.
12

	6. ACQUISITIONS AND DISPOSITIONS
	ASSETS HELD FOR SALE
	Line 10 Crude Oil PipelineIn the first quarter of 2018, we satisfied the condition as set out in our agreements for the sale of our Line 10 crude oil pipeline (Line 10), which originates near Hamilton, Ontario and terminates at West Seneca, New York. Our subsidiaries, Enbridge Pipelines Inc. and EEP, own the Canadian and United States portions of Line 10, respectively, and the related assets are included in our Liquids Pipelines segment. Subject to certain regulatory approvals and customary closing conditions, the transaction is expected to close in 2020.
	Montana-Alberta Tie LineIn the fourth quarter of 2019, we committed to a plan to sell the Montana-Alberta Tie Line transmission assets, a 345 kilometer transmission line from Great Falls, Montana to Lethbridge, Alberta. Its related assets are included in our Renewable Power Generation segment. The purchase and sale agreement was signed in January 2020. The transaction closed on May 1, 2020, please refer to Note 14. Subsequent Events.
	Ozark Gas TransmissionIn the first quarter of 2020, we agreed to sell our Ozark Gas Transmission and Ozark Gas Gathering assets (Ozark assets). The Ozark assets are composed of a 367 mile transmission system that extends from southeastern Oklahoma through Arkansas to southeastern Missouri, and a fee-based 330 mile gathering system that accesses Fayetteville Shale and Arkoma production. These assets are included in our Gas Transmission and Midstream segment. The transaction closed on April 1, 2020, please refer to Note 14. Subsequent Events.
	Upon the reclassification and subsequent remeasurement of the Ozark assets as held for sale, a loss of $19 million was included within Operating and administrative expenses on the Consolidated Statements of Earnings for the three months ended March 31, 2020.
	Summary of Assets Held for SaleThe table below summarizes the presentation of net assets held for sale in our Consolidated Statements of Financial Position:
		March 31,		December 31,
			2020		2019
	(millions of Canadian dollars)Accounts receivable and other (current assets held for sale)
			17		28
	Deferred amounts and other assets (long-term assets held for sale)1		330		269
	Accounts payable and other (current liabilities held for sale)		(8)		—
	Net assets held for sale		339		297
	1 Included within Deferred amounts and other assets at March 31, 2020 and December 31, 2019 is property, plant and equipment
	of $241 million and $181 million, respectively.
13

	7. DEBT CREDIT FACILITIESThe following table provides details of our committed credit facilities as at March 31, 2020:

			Total
		Maturity		Draws1	Available
			Facilities
	(millions of Canadian dollars)Enbridge Inc.
		2021-2024	10,959	6,250	4,709
	Enbridge (U.S.) Inc.	2021-2024	7,829	2,162	5,667
	Enbridge Pipelines Inc.	20212	3,000	2,155		845
	Enbridge Gas Inc.	20212	2,000	835	1,165
	Total committed credit facilities						23,788	11,402	12,386

	1 Includes facility draws and commercial paper issuances that are back-stopped by credit facility.2 Maturity date is inclusive of the one year term out option.
	On February 24, 2020, Enbridge Inc. entered into a two year, non-revolving credit facility for US$1 billion with a syndicate of lenders.
	On February 25, 2020, Enbridge Inc. entered into two, one year, non-revolving, bilateral credit facilities for a total of US$500 million.
	On March 31, 2020, Enbridge Inc. entered into a one year, revolving, syndicated credit facility for $1.7 billion. On April 9, 2020, Enbridge Inc. exercised an accordion provision and increased the facility to $3.0 billion.
	In addition to the committed credit facilities noted above, we maintain $806 million of uncommitted demand credit facilities, of which $523 million were unutilized as at March 31, 2020. As at December 31, 2019, we had $916 million of uncommitted credit facilities, of which $476 million were 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 the commercial paper programs and we have the option to extend such facilities, which are currently scheduled to mature from 2021 to 2024.
	As at March 31, 2020 and December 31, 2019, commercial paper and credit facility draws, net of short-term borrowings and non-revolving credit facilities that mature within one year, of $9,855 million and $8,974 million, 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 the three months ended March 31, 2020, we completed the following long-term debt issuances:
					Principal
	Company Issue Date				Amount
	(millions of Canadian dollars, unless otherwise stated)Enbridge Inc.
							February 2020	Floating rate notes	US$750
	On April 1, 2020, Enbridge Gas Inc. (Enbridge Gas) issued $600 million of 2.90% 10-year medium-term notes and $600 million of 3.65% 30-year medium term notes payable semi-annually in arrears. The notes mature on April 1, 2030 and April 1, 2050, respectively.
14

	LONG-TERM DEBT REPAYMENTS During the three months ended March 31, 2020, we completed the following long-term debt repayments:
		Principal
	Company Repayment Date	Amount
	(millions of Canadian dollars, unless otherwise stated)Enbridge Inc.
			January 2020	Floating rate notes	US$700
			March 2020	4.53% medium-term notes	$500
	Spectra Energy Partners, LP
			January 2020	6.09% senior secured notes	US$111
	Westcoast Energy Inc.
			January 2020	9.90% debentures	$100
	SUBORDINATED TERM NOTESAs at March 31, 2020 and December 31, 2019, our fixed-to-floating subordinated term notes had a principal value of $6,955 million and $6,550 million, respectively.
	FAIR VALUE ADJUSTMENTAs at March 31, 2020, the net fair value adjustment for total debt assumed in the acquisition of Spectra Energy was $847 million. During the three months ended March 31, 2020, the amortization of the fair value adjustment, recorded as a reduction to Interest expense in the Consolidated Statements of Earnings, was $15 million.
	DEBT COVENANTSOur credit facility agreements and term debt 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 March 31, 2020, we were in compliance with all debt covenants.
	8. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME Changes in Accumulated Other Comprehensive Income (AOCI) attributable to our common shareholders for the three months ended March 31, 2020 and 2019 are as follows:
Excluded											Pension
						Components	Net	Cumulative	and
				Cash Flow		of Fair Value		Investment	Translation	Equity	OPEB
					Hedges	Hedges						Hedges	Adjustment			Investees	Adjustment	Total
	(millions of Canadian dollars)Balance as at January 1, 2020
					(1,073)	—						(317)		1,396	67	(345)						(272)
	Other comprehensive income/(loss)
	retained in AOCI				(693)	3						(715)		5,459	(7)	—	4,047
	Other comprehensive (income)/loss
	reclassified to earnings
	Interest rate contracts1				43	—						—						—	—	—			43
	Foreign exchange contracts2					1	—						—						—	—	—			1
	Amortization of pension and OPEB
	actuarial loss and prior service costs4				—	—						—						—	—	4			4
					(649)	3						(715)		5,459	(7)	4	4,095
	Tax impact
	Income tax on amounts retained inAOCI
					182	—						—						—	(3)	—			179
	Income tax on amounts reclassified toearnings
					(12)	—						—						—	—	(1)			(13)
					170	—						—						—	(3)	(1)			166
	Balance as at March 31, 2020				(1,552)	3						(1,032)		6,855	57	(342)	3,989
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				Pension
		Net	Cumulative		and
	Cash Flow	Investment		Translation	Equity	OPEB
	Hedges	Hedges	Adjustment	Investees	Adjustment	Total
						(millions of Canadian dollars)Balance as at January 1, 2019
(770)		(598)					4,323	34	(317)	2,672
						Other comprehensive income/(loss) retained in
						AOCI	(312)		109		(1,242)	8			—	(1,437)
						Other comprehensive (income)/loss reclassified to
						earnings
						Interest rate contracts1	32		—		—	—			—	32
						Foreign exchange contracts2	2		—		—	—			—	2
						Other contracts3	(9)		—		—	—			—	(9)
						Amortization of pension and OPEB actuarial loss
						and prior service costs4	—		—		—	—	53	53
(287)		109					(1,242)	8	53	(1,359)
						Tax impact
						Income tax on amounts retained in AOCI	121		(15)		—	4			—	110
						Income tax on amounts reclassified to earnings	(14)		—		—	—	(15)	(29)
107		(15)					—	4	(15)	81
						Other	—		—		—	—	55	55
						Balance as at March 31, 2019	(950)		(504)		3,081	46	(224)	1,449

						1 Reported within Interest expense in the Consolidated Statements of Earnings.2 Reported within Transportation and other services revenues and Net foreign currency gain/(loss) in the Consolidated Statements
						of Earnings.
						3 Reported within Operating and administrative expense in the Consolidated Statements of Earnings.4 These components are included in the computation of net periodic benefit costs and are reported within Other income/(expense)
						in the Consolidated Statements of Earnings.
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	9. IMPAIRMENT OF EQUITY INVESTMENTS For the three months ended March 31, 2020, we recorded a loss of $1,736 million resulting from an other than temporary impairment to the carrying value of our equity method investment in DCP Midstream, LLC (DCP Midstream). DCP Midstream holds a limited partner interest in and is the owner of the general partner of DCP Midstream, LP. The impairment in our equity investment is related to a decline in the market price of DCP Midstream, LP publicly-traded units as at March 31, 2020. In addition, we recorded a loss of $324 million from our equity pick up of the loss recorded by DCP Midstream in relation to DCP Midstream, LP's asset and goodwill impairment. This is recorded within Income from Equity Investments in the Consolidated Statement of Earnings. Our investment in DCP Midstream is part of the Gas Transmission and Midstream segment and our carrying value of the investment as at March 31, 2020 and December 31, 2019 was $341 million and $2,193 million, respectively.
	10. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
	MARKET RISKOur earnings, cash flows and Other Comprehensive Income (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 cash flow, fair value 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 United States dollar denominated investments and subsidiaries using foreign currency derivatives and United States 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 monitor our debt portfolio mix of fixed and variable rate debt instruments to manage a consolidated portfolio of floating rate debt within the Board of Directors approved policy limit of a maximum of 30% of floating rate debt as a percentage of total debt outstanding. We primarily use qualifying derivative instruments to manage interest rate risk. Pay fixed-receive floating interest rate swaps may be used to hedge against the effect of future interest rate movements. We have implemented a program to significantly mitigate the impact of short-term interest rate volatility on interest expense via execution of floating to fixed interest rate swaps with an average swap rate of 2.9%.
	We are exposed to changes in the fair value of fixed rate debt that arise as a result of the 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 the fair value of fixed rate debt via execution of fixed to floating interest rate swaps. As at March 31, 2020, we do not have any pay floating-receive fixed interest rate swaps outstanding.
17

	Our earnings and cash flows are also exposed to variability in longer term interest rates ahead of anticipated fixed rate term debt issuances. Forward starting interest rate swaps are used to hedge against the effect of future interest rate movements. We have established a program within some of our subsidiaries to mitigate our exposure to long-term interest rate variability on select forecast term debt issuances via execution of floating to fixed interest rate swaps with an average swap rate of 3.1%. Commodity Price Risk Our earnings and cash flows 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 services subsidiaries. These commodities include natural gas, crude oil, power and 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. 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 revaluation of the outstanding units every period. We use equity derivatives to manage the earnings volatility derived from one form of stock-based compensation, restricted share units. We use a combination of qualifying and non-qualifying derivative instruments to manage equity price risk. TOTAL DERIVATIVE INSTRUMENTSThe following table summarizes the Consolidated Statements of Financial Position location and carrying value of our derivative instruments. We generally have a policy of entering into individual International Swaps and Derivatives Association, Inc. 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 outstanding with the counterparties in those circumstances.
	The following table summarizes the maximum potential settlement amounts in the event of these specificcircumstances. All amounts are presented gross in the Consolidated Statements of Financial Position.
18

		Derivative	Derivative	Derivative			Total Gross
		Instruments	Instruments	Instruments	Non-		Derivative
		Used as	Used as Net	Used as	QualifyingDerivative		Instruments		Amounts	Total Net
		Cash Flow	Investment	Fair Value				as	Available	Derivative
	March 31, 2020	Hedges	Hedges	Hedges		Instruments	Presented		for Offset	Instruments
	(millions of Canadiandollars)Accounts receivable andother
	Foreign exchange						—	—	49	56		105					(50)	55
	Commodity contracts						2	—	—	961		963	(289)	674
							2	—	49	1,017		1,068	1	(339)	729
	Deferred amounts and other
	Foreign exchange						30	—	169			174			373	(128)	245
	Commodity contracts						3	—	—	65		68					(22)	46
							33	—	169			239			441	(150)	291
	Accounts payable and other
	Foreign exchange						(5)	(20)	—	(899)		(924)					50	(874)
	Interest rate contracts	(813)						—	—	(18)		(831)					—	(831)
	Commodity contracts						—	—	—	(506)		(506)	289	(217)
	Other Contracts						—	—	—	(1)		(1)					—	(1)
		(818)						(20)	—	(1,424)	(2,262)	2	339	(1,923)
	Other long-term liabilities
	Foreign exchange						—	—	—	(2,428)	(2,428)		128	(2,300)
	Interest rate contracts	(395)						—	—	—		(395)					—	(395)
	Commodity contracts						—	—	—	(81)		(81)					22	(59)
	Other contracts						(4)	—	—	(3)		(7)					—	(7)
		(399)						—	—	(2,512)	(2,911)		150	(2,761)
	Total net derivative assets/(liabilities)
	Foreign exchange						25	(20)	218			(3,097)		(2,874)					—	(2,874)
	Interest rate contracts	(1,208)						—	—	(18)	(1,226)						—	(1,226)
	Commodity contracts						5	—	—	439		444					—	444
	Other contracts						(4)	—	—	(4)		(8)					—	(8)
		(1,182)						(20)	218			(2,680)		(3,664)					—	(3,664)
	1 As at March 31, 2020, $1,067 million was reported within Accounts receivable and other and $1 million within Accounts receivable
	from affiliates on the Consolidated Statements of Financial Position.
	2 As at March 31, 2020, $2,246 million was reported within Accounts payable and other and $16 million within Accounts payable to
	affiliates on the Consolidated Statements of Financial Position.
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		Derivative	Derivative					Total Gross
		Instruments	Instruments	Non-	Derivative
		Used as	Used as Net	QualifyingDerivative	Instruments		Amounts	Total Net
		Cash Flow	Investment			as	Available	Derivative
	December 31, 2019	Hedges	Hedges				Instruments	Presented		for Offset	Instruments
	(millions of Canadian dollars)Accounts receivable and other
	Foreign exchange contracts		—	—			161			161			(78)	83
	Commodity contracts		—	—			163			163			(47)	116
	Other contracts		1	—			3			4			—	4
			1	—			327			328	1	(125)	203
	Deferred amounts and other assets
	Foreign exchange contracts		10	—			71			81			(42)	39
	Commodity contracts		—	—			17			17			(2)	15
	Other contracts		2	—			1			3			—	3
			12	—			89			101			(44)	57
	Accounts payable and other
	Foreign exchange contracts		(5)	(13)			(392)			(410)			78	(332)
	Interest rate contracts	(353)	—			—			(353)			—	(353)
	Commodity contracts		—	—			(173)			(173)			47	(126)
		(358)	(13)			(565)			(936)	2	125	(811)
	Other long-term liabilities
	Foreign exchange contracts		—	—			(934)			(934)			42	(892)
	Interest rate contracts	(181)	—			—			(181)			—	(181)
	Commodity contracts		(5)	—			(60)			(65)			2	(63)
		(186)	—			(994)		(1,180)				44	(1,136)
	Total net derivative assets/(liabilities)
	Foreign exchange contracts		5	(13)			(1,094)		(1,102)				—	(1,102)
	Interest rate contracts	(534)	—			—			(534)			—	(534)
	Commodity contracts		(5)	—			(53)			(58)			—	(58)
	Other contracts		3	—			4			7			—	7
		(531)	(13)			(1,143)		(1,687)				—	(1,687)
	1 As at December 31, 2019, $327 million was reported within Accounts receivable and other and $1 million within Accounts
	receivable from affiliates on the Consolidated Statements of Financial Position.
	2 As at December 31, 2019, $920 million was reported within Accounts payable and other and $16 million within Accounts payable
	to affiliates on the Consolidated Statements of Financial Position.
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	The following table summarizes the maturity and notional principal or quantity outstanding related to our derivative instruments.
	March 31, 2020	2020	2021	2022	2023	2024 Thereafter	Total
	Foreign exchange contracts - United States dollar
	forwards - purchase (millions of United States dollars)
823					500	1,750	—	—			—	3,073
	Foreign exchange contracts - United States dollar
	forwards - sell (millions of United States dollars)	4,416	5,631	5,703	3,784	1,856			—	21,390
	Foreign exchange contracts - British pound (GBP)
	forwards - sell (millions of GBP)	89					27	28	29	30			90	293
	Foreign exchange contracts - Euro forwards - sell
	(millions of Euro)	23					94	94	92	91			515	909
	Foreign exchange contracts - Japanese yen
	forwards - purchase (millions of yen)	—					—	72,500	—	—			—	72,500
	Interest rate contracts - short-term pay fixed rate
	(millions of Canadian dollars)	4,618	4,284	422	50	36			121	9,531
	Interest rate contracts - long-term debt pay fixed
	rate (millions of Canadian dollars)	3,544	1,619	—	—	—			—	5,163
	Equity contracts (millions of Canadian dollars)	16					34	—	—	—			—	50
	Commodity contracts - natural gas (billions of cubic
	feet)	(38)					57	45	22	10			11	107
	Commodity contracts - crude oil (millions of barrels)	5					4	1	—	—			—	10
	Commodity contracts - power (megawatt per hour)
	(MW/H)	79					(3)	(43)	(43)	(43)			(43) 1	(16) 2
	1 As at March 31, 2020, thereafter includes an average net purchase/(sell) of power of (43) MW/H for 2025.2 Total is an average net purchase/(sell) of power.
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	Fair Value DerivativesFor foreign exchange derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk is included in Net foreign currency gain/(loss) in the Consolidated Statements of Earnings. Any excluded components are included in the Statements of Comprehensive Income.
		Three months ended
			March 31,
			2020	2019
	(millions of Canadian dollars)Unrealized gain on derivative
			218	—
	Unrealized loss on hedged item		(203)	—
	Realized loss on derivative		(12)	—
	The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income

	The following table presents the effect of cash flow hedges, fair value hedges and net investment hedges on our consolidated earnings and consolidated comprehensive income, before the effect of income taxes:
		Three months ended
			March 31,
			2020	2019
	(millions of Canadian dollars)Amount of unrealized gain/(loss) recognized in OCI
	Cash flow hedges
					Foreign exchange contracts	19	(10)
					Interest rate contracts	(715)	(296)
					Commodity contracts	9	(3)
					Other contracts	(7)	12
	Fair value hedges
					Foreign exchange contracts	3	—
	Net investment hedges
					Foreign exchange contracts	(7)	1
			(698)	(296)
	Amount of (gain)/loss reclassified from AOCI to earnings
					Foreign exchange contracts1	1	2
					Interest rate contracts2	43	32
					Other contracts3	—	(9)
			44	25
	1 Reported within Transportation and other services revenues and Net foreign currency gain/(loss) in the Consolidated Statements
	of Earnings.
	2 Reported within Interest expense in the Consolidated Statements of Earnings. 3 Reported within Operating and administrative expense in the Consolidated Statements of Earnings.
	We estimate that a loss of $164 million of AOCI related to unrealized 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 is 21 months as at March 31, 2020.
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	Non-Qualifying DerivativesThe following table presents the unrealized gains and losses associated with changes in the fair value of our non-qualifying derivatives:
		Three months ended
			March 31,
			2020	2019
	(millions of Canadian dollars)Foreign exchange contracts1
		(2,003)		616
	Interest rate contracts2		(18)	178
	Commodity contracts3		473	(261)
	Other contracts4		(8)	5
	Total unrealized derivative fair value gain/(loss), net	(1,556)		538
	1 For the respective three months ended periods, reported within Transportation and other services revenues (2020 - $1,061 million
	loss; 2019 - $352 million gain) and Net foreign currency gain/(loss) (2020 - $942 million loss; 2019 - $264 million gain) in the Consolidated Statements of Earnings.
	2 Reported as an (increase)/decrease within Interest expense in the Consolidated Statements of Earnings.3 For the respective three months ended periods, reported within Transportation and other services revenues (2020 - $34 million
	gain; 2019 - $26 million loss), Commodity sales (2020 - $1,493 million gain; 2019 - $642 million loss), Commodity costs (2020 - $1,045 million loss; 2019 - $398 million gain) and Operating and administrative expense (2020 - $9 million loss; 2019 - $9 million gain) in the Consolidated Statements of Earnings.
	4 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 and maintain substantial capacity under our committed bank lines of credit to address any contingencies. 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 debentures and medium-term notes. We also maintain current shelf prospectuses with securities regulators which enables ready access to either the Canadian or United States public capital markets, subject to market conditions. In addition, we maintain sufficient liquidity through committed credit facilities with a diversified group of banks and institutions which, if necessary, enables us to fund all anticipated requirements for approximately one year without accessing the capital markets. We are in compliance with all the terms and conditions of our committed credit facility agreements and term debt indentures as at March 31, 2020. As a result, all credit facilities are available to us and the banks are obligated to fund and have been funding us under the terms of the facilities. 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 maintenance and monitoring of credit exposure limits and contractual requirements, netting arrangements, and ongoing monitoring of counterparty credit exposure using external credit rating services and other analytical tools.
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	We have credit concentrations and credit exposure, with respect to derivative instruments, in the following counterparty segments:
		March 31,		December 31,
			2020		2019
	(millions of Canadian dollars)Canadian financial institutions
			128		146
	United States financial institutions		310		40
	European financial institutions		165		3
	Asian financial institutions		76		92
	Other1		798		113
			1,477		394

	1 Other is comprised of commodity clearing house and physical natural gas and crude oil counterparties. As at March 31, 2020, we provided letters of credit totaling nil in lieu of providing cash collateral to our counterparties pursuant to the terms of the relevant International Swaps and Derivatives Association agreements. We held no cash collateral on derivative asset exposures as at March 31, 2020 and December 31, 2019. 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, assessment of credit ratings and netting arrangements. Within Enbridge Gas, credit risk is mitigated by the utilities' large and diversified customer base and the ability to recover an estimate for doubtful accounts 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 classify and provide for receivables older than 30 days as past due. The maximum exposure to credit risk related to non-derivative financial assets is their carrying value. FAIR VALUE MEASUREMENTSOur financial assets and liabilities measured at fair value on a recurring basis include derivative 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 INSTRUMENTSWe categorize our derivative instruments measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement.
	Level 1Level 1 includes derivatives 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 derivative is considered to be a market where transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Our Level 1 instruments consist primarily of exchange-traded derivatives used to mitigate the risk of crude oil price fluctuations.
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	Level 2Level 2 includes derivative valuations determined using directly or indirectly observable inputs other than quoted prices included within Level 1. Derivatives 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 derivative. 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 held to maturity preferred share investment and long-term debt as Level 2. The fair value of our held to maturity preferred share investment is primarily based on the yield of certain Government of Canada bonds. The fair value of our long-term debt is based on quoted market prices for instruments of similar yield, credit risk and tenor. Level 3Level 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 derivatives’ 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 extrapolation of observable future prices and rates. Derivatives valued using Level 3 inputs primarily include long-dated derivative power, crude, NGL and natural gas contracts, basis swaps, commodity swaps and energy swaps. 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. Depending on the type of derivative and nature of the underlying risk, we use observable market prices (interest, foreign exchange, commodity and share price) 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.
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	We have categorized our derivative assets and liabilities measured at fair value as follows:
					Total Gross
					Derivative
	March 31, 2020	Level 1	Level 2	Level 3	Instruments
	(millions of Canadian dollars)Financial assets
	Current derivative assets
						Foreign exchange contracts	—	105		—	105
						Commodity contracts	90		73	800		963
							90	178	800		1,068
	Long-term derivative assets
						Foreign exchange contracts	—	373		—	373
						Commodity contracts	33		19	16	68
							33	392		16	441
	Financial liabilities
	Current derivative liabilities
						Foreign exchange contracts	—	(924)		—	(924)
						Interest rate contracts	—	(831)		—	(831)
						Commodity contracts	(58)	(20)	(428)		(506)
						Other contracts	—		(1)	—	(1)
		(58)	(1,776)	(428)				(2,262)
	Long-term derivative liabilities
						Foreign exchange contracts	—	(2,428)		—	(2,428)
						Interest rate contracts	—	(395)		—	(395)
						Commodity contracts	(13)					(8)	(60)	(81)
						Other contracts	—		(7)	—	(7)
		(13)	(2,838)	(60)				(2,911)
	Total net financial assets/(liabilities)
						Foreign exchange contracts	—	(2,874)		—	(2,874)
						Interest rate contracts	—	(1,226)		—	(1,226)
						Commodity contracts	52		64	328		444
						Other contracts	—		(8)	—	(8)
							52	(4,044)	328		(3,664)
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					Total Gross
					Derivative
	December 31, 2019	Level 1	Level 2	Level 3	Instruments
	(millions of Canadian dollars)Financial assets
	Current derivative assets
	Foreign exchange contracts					—	161		—		161
	Commodity contracts					—		33	130			163
	Other contracts					—		4	—		4
						—	198	130			328
	Long-term derivative assets
	Foreign exchange contracts					—		81	—		81
	Commodity contracts					—		12	5		17
	Other contracts					—		3	—		3
						—		96	5		101
	Financial liabilities
	Current derivative liabilities
	Foreign exchange contracts					—	(410)		—		(410)
	Interest rate contracts					—	(353)		—		(353)
	Commodity contracts					(5)	(23)	(145)			(173)
						(5)	(786)	(145)			(936)
	Long-term derivative liabilities
	Foreign exchange contracts					—	(934)		—		(934)
	Interest rate contracts					—	(181)		—		(181)
	Commodity contracts					—		(6)	(59)			(65)
						—	(1,121)	(59)			(1,180)
	Total net financial assets/(liabilities)
	Foreign exchange contracts					—	(1,102)		—		(1,102)
	Interest rate contracts					—	(534)		—		(534)
	Commodity contracts					(5)		16	(69)			(58)
	Other contracts					—		7	—		7
						(5)	(1,613)	(69)			(1,687)
	The significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments were as follows:
									Fair	Unobservable	Minimum	Maximum	Weighted			Unit of
	March 31, 2020								Value	Input						Price	Price	Average Price	Measurement
	(fair value in millions of Canadiandollars)Commodity contracts - financial1
	Natural gas								(4)	Forward gas price	1.81		5.15	3.18	$/mmbtu2
	Crude								11		Forward crude price	4.46	96.53	46.61			$/barrel
	Power								(57)		Forward power price	21.00	70.42	53.00			$/MW/H
	Commodity contracts - physical1
	Natural gas								36	Forward gas price	1.51		7.53	2.56	$/mmbtu2
	Crude								336		Forward crude price	7.00	76.89	28.24			$/barrel
	NGL								6		Forward NGL price	0.11		1.20	0.42	$/gallon
									328
	1 Financial and physical forward commodity contracts are valued using a market approach valuation technique.2 One million British thermal units (mmbtu).

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	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 net fair value of derivative assets and liabilities classified as Level 3 in the fair value hierarchy were as follows:
		Three months ended
			March 31,
			2020	2019
	(millions of Canadian dollars)Level 3 net derivative liability at beginning of period
			(69)	(11)
	Total gain/(loss)
	Included in earnings1		349	(52)
	Included in OCI		9	(3)
	Settlements		39	(156)
	Level 3 net derivative liability at end of period		328	(222)
	1 Reported within Transportation and other services revenues, Commodity costs and Operating and administrative expense in the
	Consolidated Statements of Earnings.
	There were no transfers into or out of Level 3 as at March 31, 2020 or December 31, 2019. FAIR VALUE OF OTHER FINANCIAL INSTRUMENTSOur other 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 other long-term investments totaled $56 million and $99 million as at March 31, 2020 and December 31, 2019, respectively. We have Restricted long-term investments held in trust totaling $443 million and $434 million as at March 31, 2020 and December 31, 2019, respectively, which are recognized at fair value. We have a held to maturity preferred share investment carried at its amortized cost of $566 million and $580 million as at March 31, 2020 and December 31, 2019, respectively. These preferred shares are entitled to a cumulative preferred dividend based on the yield of 10-year Government of Canada bonds plus a margin of 4.38%. The fair value of this preferred share investment is $566 million and $580 million as at March 31, 2020 and December 31, 2019, respectively. As at March 31, 2020 and December 31, 2019, our long-term debt had a carrying value of $68.1 billion and $64.4 billion, respectively, before debt issuance costs and a fair value of $65.9 billion and $70.5 billion, respectively. We also have non-current notes receivable carried at book value and recorded in Deferred amounts and other assets in the Consolidated Statements of Financial Position. As at March 31, 2020 and December 31, 2019, the non-current notes receivable had a carrying value of $1,130 million and $1,026 million, respectively, which also approximates their fair value.
	The fair value of financial assets and liabilities other than derivative instruments, long-term investments, restricted long-term investments, long-term debt and non-current notes receivable described above approximate their carrying value due to the short period to maturity. NET INVESTMENT HEDGESWe have designated a portion of our United States dollar denominated debt, as well as a portfolio of foreign exchange forward contracts, as a hedge of our net investment in United States dollar denominated investments and subsidiaries.
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	During the three months ended March 31, 2020 and 2019, we recognized an unrealized foreign exchange loss of $708 million and a gain of $108 million, respectively, on the translation of United States dollar denominated debt and unrealized loss of $7 million and a gain of $1 million, respectively, on the change in fair value of our outstanding foreign exchange forward contracts in OCI. During the three months ended March 31, 2020 and 2019, we recognized realized losses of nil, in OCI associated with the settlement of foreign exchange forward contracts and recognized realized losses of nil, in OCI associated with the settlement of United States dollar denominated debt that had matured during the period.
	11. INCOME TAXES
	The effective income tax rates for the three months ended March 31, 2020 and 2019 were 28.7% and 22.4%, respectively. The period-over-period increase in the effective income tax rate is due to the benefit of rate-regulated accounting for income taxes being partially offset by higher United States minimum tax.
	12. PENSION AND OTHER POSTRETIREMENT BENEFITS
		Three months ended
			March 31,
			2020	2019
	(millions of Canadian dollars)Service cost
			42	51
	Interest cost		33	51
	Expected return on plan assets		(67)	(84)
	Amortization of actuarial loss and prior service costs		9	7
	Net periodic benefit costs		17	25
	13. CONTINGENCIES We and our subsidiaries are involved in 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.
	TAX MATTERSWe and our subsidiaries maintain tax liabilities related to uncertain tax positions. While fully supportable in our view, these tax positions, if challenged by tax authorities, may not be fully sustained on review.
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	14. SUBSEQUENT EVENTS
	On April 1, 2020, we closed the sale of our Ozark assets for proceeds of approximately $60 million (US$43 million), subject to customary closing adjustments. Refer to Note 6. Acquisitions and Dispositions for further discussion of the transaction.
	On May 1, 2020, we closed the sale of our Montana-Alberta Tie Line assets for proceeds of approximately $180 million, subject to customary closing adjustments. Refer to Note 6. Acquisitions and Dispositions for further discussion of the transaction.
	On May 4, 2020, a rupture occurred on Line 10, a 30-inch natural gas pipeline that makes up part of the Texas Eastern natural gas pipeline system in Fleming County, Kentucky. There have been no reported injuries or damaged structures as a result of the rupture. Texas Eastern crews are on site and have secured the area. The impacted section of pipe was shut-in following the incident and remains isolated. The National Transportation Safety Board has assumed control of the site and is working with the Pipeline and Hazardous Materials Safety Administration and Enbridge to investigate.
	The spread of the COVID-19 pandemic has caused significant volatility in Canada, the United States and international markets. We continue to monitor the impact of the COVID-19 pandemic, reduced crude oil demand and reduced commodity prices on our results of operations. These demand effects coincided with decisions by various global producers, including the Organization of Petroleum Exporting Countries and other oil producing nations (OPEC+) to increase global production levels, putting severe downward pressure on prices. As a result, prices of crude oil, natural gas, natural gas liquids and other commodities whose prices are highly correlated to crude oil have decreased substantially. Given the many outstanding questions as to the length and depth of the COVID-19 pandemic and the current low commodity price environment, the impact on us is uncertain; however, it is possible that they may have an adverse impact on our business and results of operations in the future.
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