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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
| | | | | | | | |
☒ | | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2023
OR
| | | | | | | | |
☐ | | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 001-15254
| | | | | | | | |
| | |
ENBRIDGE INC. |
(Exact Name of Registrant as Specified in Its Charter) |
| | | | | | | | |
Canada | | 98-0377957 |
(State or Other Jurisdiction of Incorporation or Organization) | | (I.R.S. Employer Identification No.) |
200, 425 - 1st Street S.W.
Calgary, Alberta, Canada T2P 3L8
(Address of Principal Executive Offices) (Zip Code)
(403) 231-3900
(Registrant’s Telephone Number, Including Area Code)
_______________________________
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
Common Shares | | ENB | | New York Stock Exchange |
| | | | |
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| | | | | | | | | | | | | | |
Large accelerated filer | x | | Accelerated filer | ☐ |
Non-accelerated filer | ☐ | | Smaller reporting company | ☐ |
Emerging growth company | ☐ | | | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
The registrant had 2,022,660,553 common shares outstanding as at July 28, 2023.
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| PART I | PAGE |
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Item 1. | | |
Item 2. | | |
Item 3. | | |
Item 4. | | |
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| PART II | |
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Item 1. | | |
Item 1A. | | |
Item 2. | | |
Item 3. | | |
Item 4. | | |
Item 5. | | |
Item 6. | | |
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GLOSSARY
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AG | Attorney General |
AOCI | Accumulated other comprehensive income/(loss) |
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Aux Sable | Aux Sable Canada LP, Aux Sable Liquid Products LP and Aux Sable Midstream LLC |
CER | Canada Energy Regulator |
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DCP | DCP Midstream, LP |
EBITDA | Earnings before interest, income taxes and depreciation and amortization |
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EEP | Enbridge Energy Partners, L.P. |
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Enbridge | Enbridge Inc. |
Enbridge Gas | Enbridge Gas Inc. |
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Exchange Act | United States Securities Exchange Act of 1934, as amended |
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NCIB | Normal course issuer bid |
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OCI | Other comprehensive income/(loss) |
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OPEB | Other postretirement benefits |
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SEP | Spectra Energy Partners, LP |
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Texas Eastern | Texas Eastern Transmission, LP |
the Band | Bad River Band of the Lake Superior Tribe of Chippewa Indians |
the Court | United States District Court for the Western District Wisconsin |
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the Partnerships | Spectra Energy Partners, LP (SEP) and Enbridge Energy Partners, L.P. (EEP) |
the Reservation | Bad River Reservation |
Tres Palacios | Tres Palacios Holdings LLC |
US | United States |
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CONVENTIONS
The terms "we", "our", "us" and "Enbridge" as used in this report refer collectively to Enbridge Inc. and its subsidiaries unless the context suggests otherwise. These terms are used for convenience only and are not intended as a precise description of any separate legal entity within Enbridge.
Unless otherwise specified, all dollar amounts are expressed in Canadian dollars, all references to "dollars" or "$" are to Canadian dollars and all references to "US$" are to United States (US) dollars. All amounts are provided on a before-tax basis, unless otherwise stated.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this quarterly report on Form 10-Q to provide information about us and our subsidiaries and affiliates, including management’s assessment of our and our subsidiaries’ future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ‘‘anticipate”, “believe”, “estimate”, “expect”, “forecast”, “intend”, “likely”, “plan”, “project”, “target” and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: our corporate vision and strategy, including strategic priorities and enablers; expected supply of, demand for, exports of and prices of crude oil, natural gas, natural gas liquids (NGL), liquified natural gas (LNG) and renewable energy; energy transition and lower-carbon energy, and our approach thereto; environmental, social and governance goals, practices and performance; industry and market conditions; anticipated utilization of our assets; dividend growth and payout policy; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected strategic priorities and performance of the Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation and Energy Services businesses; expected costs, benefits and in-service dates related to announced projects and projects under construction; expected capital expenditures; investable capacity and capital allocation priorities; share repurchases under our normal course issuer bid (NCIB); expected equity funding requirements for our commercially secured growth program; expected future growth, development and expansion opportunities; expected optimization and efficiency opportunities; expectations about our joint venture partners’ ability to complete and finance projects under construction; expected closing of acquisitions and dispositions and the timing thereof; expected benefits of transactions; expected future actions of regulators and courts, and the timing and impact thereof; toll and rate cases discussions and proceedings and anticipated timeline and impact therefrom, including Mainline Tolling and those relating to the Gas Transmission and Midstream and Gas Distribution and Storage businesses; operational, industry, regulatory, climate change and other risks associated with our businesses; and our assessment of the potential impact of the various risk factors identified herein.
Although we believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of, demand for, export of and prices of crude oil, natural gas, NGL, LNG and renewable energy; anticipated utilization of assets; exchange rates; inflation; interest rates; availability and price of labor and construction materials; the stability of our supply chain; operational reliability; maintenance of support and regulatory approvals for our projects; anticipated in-service dates; weather; the timing and closing of acquisitions and dispositions; the realization of anticipated benefits of transactions; governmental legislation; litigation; estimated future dividends and impact of our dividend policy on our future cash flows; our credit ratings; capital project funding; hedging program; expected earnings before interest, income taxes and depreciation and amortization (EBITDA); expected earnings/(loss); expected future cash flows; and expected distributable cash flow. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL, LNG and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for our services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which we operate and may impact levels of demand for our services and cost of inputs, and are therefore inherent in all forward-looking statements. The most relevant assumptions associated with forward-looking statements regarding announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labor and construction materials; the stability of
our supply chain; the effects of inflation and foreign exchange rates on labor and material costs; the effects of interest rates on borrowing costs; and the impact of weather and customer, government, court and regulatory approvals on construction and in-service schedules and cost recovery regimes.
Our forward-looking statements are subject to risks and uncertainties pertaining to the successful execution of our strategic priorities, operating performance; legislative and regulatory parameters; litigation; acquisitions, dispositions and other transactions and the realization of anticipated benefits therefrom; operational dependence on third parties; dividend policy; project approval and support; renewals of rights-of-way; weather; economic and competitive conditions; public opinion; changes in tax laws and tax rates; exchange rates; inflation; interest rates; commodity prices; access to and cost of capital; political decisions; global geopolitical conditions; and the supply of, demand for and prices of commodities and other alternative energy, including but not limited to, those risks and uncertainties discussed in this quarterly report on Form 10-Q and in our other filings with Canadian and US securities regulators. The impact of any one assumption, risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and our future course of action depends on management’s assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statement made in this quarterly report on Form 10-Q or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to us or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements.
NON-GAAP AND OTHER FINANCIAL MEASURES
Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) in this quarterly report on Form 10-Q makes reference to non-GAAP and other financial measures, including EBITDA. EBITDA is defined as earnings before interest, income taxes and depreciation and amortization. Management uses EBITDA to assess performance of Enbridge and to set targets. Management believes the presentation of EBITDA gives useful information to investors as it provides increased transparency and insight into the performance of Enbridge.
The non-GAAP and other financial measures are not measures that have a standardized meaning prescribed by the accounting principles generally accepted in the United States of America (US GAAP) and are not US GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers. A reconciliation of historical non-GAAP and other financial measures to the most directly comparable GAAP measures is set out in this MD&A and is available on our website. Additional information on non-GAAP and other financial measures may be found on our website, www.sedar.com or www.sec.gov.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ENBRIDGE INC.
CONSOLIDATED STATEMENTS OF EARNINGS
| | | | | | | | | | | | | | | | | |
| Three months ended June 30, | | Six months ended June 30, |
| 2023 | 2022 | | 2023 | 2022 |
(unaudited; millions of Canadian dollars, except per share amounts) | | | | | |
Operating revenues | | | | | |
Commodity sales | 4,679 | | 8,108 | | | 9,462 | | 16,433 | |
Gas distribution sales | 792 | | 905 | | | 3,071 | | 3,003 | |
Transportation and other services | 4,961 | | 4,202 | | | 9,974 | | 8,876 | |
Total operating revenues (Note 2) | 10,432 | | 13,215 | | | 22,507 | | 28,312 | |
Operating expenses | | | | | |
Commodity costs | 4,549 | | 8,181 | | | 9,185 | | 16,472 | |
Gas distribution costs | 368 | | 456 | | | 1,962 | | 1,912 | |
Operating and administrative | 2,028 | | 1,994 | | | 4,065 | | 3,869 | |
Depreciation and amortization | 1,137 | | 1,064 | | | 2,283 | | 2,119 | |
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Total operating expenses | 8,082 | | 11,695 | | | 17,495 | | 24,372 | |
Operating income | 2,350 | | 1,520 | | | 5,012 | | 3,940 | |
Income from equity investments | 478 | | 510 | | | 995 | | 1,001 | |
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Other income/(expense) (Note 10) | 575 | | (499) | | | 677 | | (41) | |
Interest expense | (883) | | (791) | | | (1,788) | | (1,510) | |
Earnings before income taxes | 2,520 | | 740 | | | 4,896 | | 3,390 | |
Income tax expense | (519) | | (133) | | | (1,029) | | (726) | |
Earnings | 2,001 | | 607 | | | 3,867 | | 2,664 | |
Earnings attributable to noncontrolling interests | (66) | | (12) | | | (115) | | (40) | |
Earnings attributable to controlling interests | 1,935 | | 595 | | | 3,752 | | 2,624 | |
Preference share dividends | (87) | | (145) | | | (171) | | (247) | |
Earnings attributable to common shareholders | 1,848 | | 450 | | | 3,581 | | 2,377 | |
Earnings per common share attributable to common shareholders (Note 4) | 0.91 | | 0.22 | | | 1.77 | | 1.17 | |
Diluted earnings per common share attributable to common shareholders (Note 4) | 0.91 | | 0.22 | | | 1.77 | | 1.17 | |
The accompanying notes are an integral part of these interim consolidated financial statements.
ENBRIDGE INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
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| Three months ended June 30, | | Six months ended June 30, |
| 2023 | 2022 | | 2023 | 2022 |
(unaudited; millions of Canadian dollars) | | | | | |
Earnings | 2,001 | | 607 | | | 3,867 | | 2,664 | |
Other comprehensive income/(loss), net of tax | | | | | |
Change in unrealized gain on cash flow hedges | 166 | | 352 | | | 121 | | 646 | |
Change in unrealized gain/(loss) on net investment hedges | 385 | | (386) | | | 400 | | (253) | |
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Excluded components of fair value hedges | 2 | | (4) | | | 9 | | (5) | |
Reclassification to earnings of loss on cash flow hedges | 12 | | 52 | | | 19 | | 109 | |
Reclassification to earnings of pension and other postretirement benefits (OPEB) amounts | (4) | | (3) | | | (8) | | (5) | |
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Foreign currency translation adjustments | (1,458) | | 1,881 | | | (1,517) | | 1,173 | |
Other comprehensive income/(loss), net of tax | (897) | | 1,892 | | | (976) | | 1,665 | |
Comprehensive income | 1,104 | | 2,499 | | | 2,891 | | 4,329 | |
Comprehensive income attributable to noncontrolling interests | (34) | | (58) | | | (98) | | (71) | |
Comprehensive income attributable to controlling interests | 1,070 | | 2,441 | | | 2,793 | | 4,258 | |
Preference share dividends | (87) | | (145) | | | (171) | | (247) | |
Comprehensive income attributable to common shareholders | 983 | | 2,296 | | | 2,622 | | 4,011 | |
The accompanying notes are an integral part of these interim consolidated financial statements.
ENBRIDGE INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
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| Three months ended June 30, | | Six months ended June 30, |
| 2023 | 2022 | | 2023 | 2022 |
(unaudited; millions of Canadian dollars, except per share amounts) | | | | | |
Preference shares | | | | | |
Balance at beginning of period | 6,818 | | 7,010 | | | 6,818 | | 7,747 | |
Redemption of preference shares | — | | (192) | | | — | | (929) | |
Balance at end of period | 6,818 | | 6,818 | | | 6,818 | | 6,818 | |
Common shares | | | | | |
Balance at beginning of period | 64,774 | | 64,801 | | | 64,760 | | 64,799 | |
Shares issued on exercise of stock options | — | | 12 | | | 2 | | 48 | |
Shares issued on vesting of restricted stock units (RSU) | — | | — | | | 12 | | — | |
Share purchases at stated value | (80) | | (58) | | | (80) | | (88) | |
Other | — | | — | | | — | | (4) | |
Balance at end of period | 64,694 | | 64,755 | | | 64,694 | | 64,755 | |
Additional paid-in capital | | | | | |
Balance at beginning of period | 274 | | 316 | | | 275 | | 365 | |
Stock-based compensation | 18 | | 5 | | | 18 | | 18 | |
Options exercised | (1) | | (11) | | | (2) | | (45) | |
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Other | — | | (5) | | | — | | (33) | |
Balance at end of period | 291 | | 305 | | | 291 | | 305 | |
Deficit | | | | | |
Balance at beginning of period | (13,753) | | (9,082) | | | (15,486) | | (10,989) | |
Earnings attributable to controlling interests | 1,935 | | 595 | | | 3,752 | | 2,624 | |
Preference share dividends | (87) | | (145) | | | (171) | | (247) | |
Common share dividends declared | (1,796) | | (1,743) | | | (1,796) | | (1,743) | |
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Share purchases in excess of stated value | (45) | | (43) | | | (45) | | (63) | |
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Balance at end of period | (13,746) | | (10,418) | | | (13,746) | | (10,418) | |
Accumulated other comprehensive income/(loss) (Note 7) | | | | | |
Balance at beginning of period | 3,426 | | (1,308) | | | 3,520 | | (1,096) | |
Other comprehensive income/(loss) attributable to common shareholders, net of tax | (865) | | 1,846 | | | (959) | | 1,634 | |
Balance at end of period | 2,561 | | 538 | | | 2,561 | | 538 | |
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Total Enbridge Inc. shareholders’ equity | 60,618 | | 61,998 | | | 60,618 | | 61,998 | |
Noncontrolling interests | | | | | |
Balance at beginning of period | 3,486 | | 2,536 | | | 3,511 | | 2,542 | |
Earnings attributable to noncontrolling interests | 66 | | 12 | | | 115 | | 40 | |
Other comprehensive income/(loss) attributable to noncontrolling interests, net of tax | | | | | |
Change in unrealized gain/(loss) on cash flow hedges | 1 | | (8) | | | 18 | | (6) | |
Foreign currency translation adjustments | (33) | | 54 | | | (35) | | 37 | |
| (32) | | 46 | | | (17) | | 31 | |
Comprehensive income attributable to noncontrolling interests | 34 | | 58 | | | 98 | | 71 | |
Distributions | (103) | | (67) | | | (195) | | (127) | |
Contributions | 4 | | 2 | | | 8 | | 8 | |
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Other | (1) | | 10 | | | (2) | | 45 | |
Balance at end of period | 3,420 | | 2,539 | | | 3,420 | | 2,539 | |
Total equity | 64,038 | | 64,537 | | | 64,038 | | 64,537 | |
Dividends paid per common share | 0.89 | | 0.86 | | | 1.78 | | 1.72 | |
The accompanying notes are an integral part of these interim consolidated financial statements.
ENBRIDGE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | | | | | | |
| Six months ended June 30, |
| 2023 | 2022 |
(unaudited; millions of Canadian dollars) | | |
Operating activities | | |
Earnings | 3,867 | | 2,664 | |
Adjustments to reconcile earnings to net cash provided by operating activities: | | |
Depreciation and amortization | 2,283 | | 2,119 | |
Deferred income tax expense | 919 | | 469 | |
Unrealized derivative fair value (gain)/loss, net (Note 8) | (1,135) | | 415 | |
Income from equity investments | (995) | | (1,001) | |
Distributions from equity investments | 1,066 | | 878 | |
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Other | 72 | | 67 | |
Changes in operating assets and liabilities | 1,228 | | (138) | |
Net cash provided by operating activities | 7,305 | | 5,473 | |
Investing activities | | |
Capital expenditures | (2,093) | | (2,002) | |
Long-term investments and restricted long-term investments | (472) | | (388) | |
Distributions from equity investments in excess of cumulative earnings | 752 | | 296 | |
Additions to intangible assets | (104) | | (91) | |
Acquisitions | (487) | | — | |
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Affiliate loans, net | 71 | | 65 | |
| | |
Net cash used in investing activities | (2,333) | | (2,120) | |
Financing activities | | |
Net change in short-term borrowings | (1,148) | | 105 | |
Net change in commercial paper and credit facility draws | (2,847) | | 1,031 | |
Debenture and term note issues, net of issue costs | 5,598 | | 2,642 | |
Debenture and term note repayments | (2,281) | | (1,333) | |
Contributions from noncontrolling interests | 8 | | 8 | |
Distributions to noncontrolling interests | (195) | | (127) | |
Common shares issued | — | | 3 | |
Common shares repurchased | (125) | | (151) | |
Preference share dividends | (171) | | (173) | |
Common share dividends | (3,595) | | (3,485) | |
Redemption of preference shares | — | | (1,003) | |
Affiliate loans, net | 50 | | — | |
Other | (64) | | (122) | |
Net cash used in financing activities | (4,770) | | (2,605) | |
Effect of translation of foreign denominated cash and cash equivalents and restricted cash | (19) | | 20 | |
Net change in cash and cash equivalents and restricted cash | 183 | | 768 | |
Cash and cash equivalents and restricted cash at beginning of period | 907 | | 320 | |
Cash and cash equivalents and restricted cash at end of period | 1,090 | | 1,088 | |
The accompanying notes are an integral part of these interim consolidated financial statements.
ENBRIDGE INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| | | | | | | | |
| June 30, 2023 | December 31, 2022 |
(unaudited; millions of Canadian dollars; number of shares in millions) | | |
Assets | | |
Current assets | | |
Cash and cash equivalents | 1,030 | | 861 | |
Restricted cash | 60 | | 46 | |
Trade receivables and unbilled revenues | 3,725 | | 5,616 | |
Other current assets | 2,775 | | 3,255 | |
Accounts receivable from affiliates | 167 | | 114 | |
Inventory | 1,211 | | 2,255 | |
| 8,968 | | 12,147 | |
Property, plant and equipment, net | 103,955 | | 104,460 | |
Long-term investments | 15,258 | | 15,936 | |
Restricted long-term investments | 664 | | 593 | |
Deferred amounts and other assets | 9,185 | | 9,542 | |
Intangible assets, net | 3,764 | | 4,018 | |
Goodwill | 31,886 | | 32,440 | |
Deferred income taxes | 262 | | 472 | |
Total assets | 173,942 | | 179,608 | |
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Liabilities and equity | | |
Current liabilities | | |
Short-term borrowings | 848 | | 1,996 | |
Trade payables and accrued liabilities | 3,660 | | 6,172 | |
Other current liabilities | 2,559 | | 5,220 | |
Accounts payable to affiliates | 48 | | 105 | |
Interest payable | 824 | | 763 | |
Current portion of long-term debt | 6,086 | | 6,045 | |
| 14,025 | | 20,301 | |
Long-term debt | 72,530 | | 72,939 | |
Other long-term liabilities | 8,847 | | 9,189 | |
Deferred income taxes | 14,502 | | 13,781 | |
| 109,904 | | 116,210 | |
Contingencies (Note 11) | | |
Equity | | |
Share capital | | |
Preference shares | 6,818 | | 6,818 | |
Common shares (2,023 and 2,025 outstanding at June 30, 2023 and December 31, 2022, respectively) | 64,694 | | 64,760 | |
Additional paid-in capital | 291 | | 275 | |
Deficit | (13,746) | | (15,486) | |
Accumulated other comprehensive income (Note 7) | 2,561 | | 3,520 | |
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Total Enbridge Inc. shareholders’ equity | 60,618 | | 59,887 | |
Noncontrolling interests | 3,420 | | 3,511 | |
| 64,038 | | 63,398 | |
Total liabilities and equity | 173,942 | | 179,608 | |
The accompanying notes are an integral part of these interim consolidated financial statements.
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, 2022. 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, 2022. 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. REVENUES
REVENUE FROM CONTRACTS WITH CUSTOMERS
Major Products and Services
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Three months ended June 30, 2023 | Liquids Pipelines | Gas Transmission and Midstream | Gas Distribution and Storage | Renewable Power Generation | Energy Services | Eliminations and Other | Consolidated |
(millions of Canadian dollars) | | | | | | | |
Transportation revenue | 3,002 | | 1,290 | | 169 | | — | | — | | — | | 4,461 | |
Storage and other revenue | 62 | | 113 | | 85 | | — | | — | | — | | 260 | |
| | | | | | | |
Gas distribution revenue | — | | — | | 796 | | — | | — | | — | | 796 | |
Electricity revenue | — | | — | | — | | 75 | | — | | — | | 75 | |
| | | | | | | |
Total revenue from contracts with customers | 3,064 | | 1,403 | | 1,050 | | 75 | | — | | — | | 5,592 | |
Commodity sales | — | | — | | — | | — | | 4,679 | | — | | 4,679 | |
Other revenue1,2 | 79 | | 7 | | (1) | | 76 | | — | | — | | 161 | |
Intersegment revenue | 127 | | — | | 1 | | (1) | | — | | (127) | | — | |
Total revenue | 3,270 | | 1,410 | | 1,050 | | 150 | | 4,679 | | (127) | | 10,432 | |
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Three months ended June 30, 2022 | Liquids Pipelines | Gas Transmission and Midstream | Gas Distribution and Storage | Renewable Power Generation | Energy Services | Eliminations and Other | Consolidated |
(millions of Canadian dollars) | | | | | | | |
Transportation revenue | 2,565 | | 1,200 | | 157 | | — | | — | | — | | 3,922 | |
Storage and other revenue | 64 | | 83 | | 99 | | — | | — | | — | | 246 | |
Gas gathering and processing revenue | — | | 6 | | — | | — | | — | | — | | 6 | |
Gas distribution revenue | — | | — | | 919 | | — | | — | | — | | 919 | |
Electricity revenue | — | | — | | — | | 81 | | — | | — | | 81 | |
| | | | | | | |
Total revenue from contracts with customers | 2,629 | | 1,289 | | 1,175 | | 81 | | — | | — | | 5,174 | |
Commodity sales | — | | — | | — | | — | | 8,108 | | — | | 8,108 | |
Other revenue1,2 | (145) | | 11 | | (37) | | 74 | | 30 | | — | | (67) | |
Intersegment revenue | 154 | | 1 | | — | | — | | — | | (155) | | — | |
Total revenue | 2,638 | | 1,301 | | 1,138 | | 155 | | 8,138 | | (155) | | 13,215 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Six months ended June 30, 2023 | Liquids Pipelines | Gas Transmission and Midstream | Gas Distribution and Storage | Renewable Power Generation | Energy Services | Eliminations and Other | Consolidated |
(millions of Canadian dollars) | | | | | | | |
Transportation revenue | 5,944 | | 2,674 | | 445 | | — | | — | | — | | 9,063 | |
Storage and other revenue | 126 | | 208 | | 184 | | — | | — | | — | | 518 | |
| | | | | | | |
Gas distribution revenue | — | | — | | 3,083 | | — | | — | | — | | 3,083 | |
Electricity revenue | — | | — | | — | | 141 | | — | | — | | 141 | |
| | | | | | | |
Total revenue from contracts with customers | 6,070 | | 2,882 | | 3,712 | | 141 | | — | | — | | 12,805 | |
Commodity sales | — | | — | | — | | — | | 9,462 | | — | | 9,462 | |
Other revenue1,2 | 109 | | 18 | | (41) | | 154 | | — | | — | | 240 | |
Intersegment revenue | 256 | | 1 | | 4 | | (1) | | 18 | | (278) | | — | |
Total revenue | 6,435 | | 2,901 | | 3,675 | | 294 | | 9,480 | | (278) | | 22,507 | |
| | | | | | | |
Six months ended June 30, 2022 | Liquids Pipelines | Gas Transmission and Midstream | Gas Distribution and Storage | Renewable Power Generation | Energy Services | Eliminations and Other | Consolidated |
(millions of Canadian dollars) | | | | | | | |
Transportation revenue | 5,250 | | |