Enbridge Inc. (ENB) Balance Sheet

The sequential asset growth of $87.7B from 2026Q1 to 2026Q2 appears to be a direct result of the Dominion Energy acquisition, which added substantial utility assets and goodwill. However, the simultaneous decline in equity from $90.9B to $65.3B indicates that the acquisition was financed heavily with debt, as total liabilities rose by $60.7B. This trajectory suggests a strategic shift toward regulated utilities, but it also implies a weakening equity buffer, which may increase financial risk.

The D/E ratio jumped from 1.60 to 2.31 quarter-over-quarter, a significant increase that appears to be driven by the Dominion acquisition. This leverage level is notably higher than peers like KMI (1.00) and EPD (1.14), suggesting Enbridge is taking on more financial risk. The company's ability to service this debt will depend on the stable cash flows from its regulated utilities and pipeline contracts, but the elevated leverage may constrain future capital flexibility and increase sensitivity to interest rate changes.

The increase in PP&E and goodwill is consistent with the acquisition of Dominion's gas utilities, which are asset-heavy regulated businesses. Goodwill now represents 22.2% of total assets, up from 15.7% in 2025Q4, indicating a higher risk of impairment if the acquired assets underperform. The asset mix is shifting from pure midstream pipelines to a more diversified utility base, which may lower the overall risk profile but also introduces regulatory and integration risks.

The negative retained earnings balance, which has worsened from -$15.7B in 2024Q1 to -$20.3B in 2026Q2, indicates that Enbridge has distributed more to shareholders than it has accumulated in profits. This trend, combined with the equity decline, suggests that the company is relying on debt to fund its dividend and growth initiatives. Investors should monitor whether the acquired utility cash flows can reverse this trend and rebuild equity.

The current ratio of 0.72 suggests that Enbridge may face short-term liquidity pressures, as it has only $0.72 in current assets for every $1 of current liabilities. However, this is common for midstream companies with stable cash flows and access to credit markets. The cash balance of $2.9B provides a modest buffer, but it is small relative to the $159.3B in total debt. The company's ability to refinance maturing debt will be crucial, especially given the recent leverage increase.