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REVENUE
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE

3. REVENUE

 

Change in Revenue Classification

To better align the classification of revenues resulting from our acquisitions of the United States (US) Gas Utilities (Note 6), we have made adjustments to Gas distribution sales and Transportation and other services revenues. Revenues generated from customers who procure their own gas but use our distribution system for delivery to the end use location have been reclassified to Gas distribution sales revenue from Transportation and other services revenue on the Consolidated Statements of Earnings and reclassified to Gas distribution sales from Transportation revenue in the Revenue from Contracts with Customers tables below. Our prior period comparable results have been recast to reflect the change in revenue classification. This change did not have an impact on our Total operating revenues.

 

REVENUE FROM CONTRACTS WITH CUSTOMERS

Major Products and Services

Three months ended September 30, 2025

Liquids Pipelines

 

Gas Transmission

 

Gas Distribution
and Storage

 

Renewable Power Generation

 

Eliminations and Other

 

Consolidated

 

(millions of Canadian dollars)

 

 

 

 

 

 

 

 

 

 

 

 

Transportation revenue

 

2,934

 

 

1,361

 

 

68

 

 

—

 

 

—

 

 

4,363

 

Storage and other revenue

 

77

 

 

158

 

 

122

 

 

—

 

 

—

 

 

357

 

Gas distribution sales

 

—

 

 

—

 

 

1,303

 

 

—

 

 

—

 

 

1,303

 

Electricity revenue

 

—

 

 

—

 

 

—

 

 

72

 

 

—

 

 

72

 

Commodity sales

 

—

 

 

32

 

 

22

 

 

—

 

 

—

 

 

54

 

Total revenue from contracts with customers

 

3,011

 

 

1,551

 

 

1,515

 

 

72

 

 

—

 

 

6,149

 

Commodity sales

 

8,101

 

 

23

 

 

—

 

 

—

 

 

218

 

 

8,342

 

Other revenue1,2

 

71

 

 

20

 

 

1

 

 

56

 

 

—

 

 

148

 

Intersegment revenue

 

—

 

 

3

 

 

(3

)

 

2

 

 

(2

)

 

—

 

Total revenue

 

11,183

 

 

1,597

 

 

1,513

 

 

130

 

 

216

 

 

14,639

 

 

Three months ended September 30, 2024

Liquids Pipelines

 

Gas Transmission

 

Gas Distribution
and Storage

 

Renewable Power Generation

 

Eliminations and Other

 

Consolidated

 

(millions of Canadian dollars)

 

 

 

 

 

 

 

 

 

 

 

 

Transportation revenue3

 

2,906

 

 

1,264

 

 

58

 

 

—

 

 

—

 

 

4,228

 

Storage and other revenue

 

65

 

 

143

 

 

125

 

 

—

 

 

—

 

 

333

 

Gas distribution sales3

 

—

 

 

—

 

 

1,099

 

 

—

 

 

—

 

 

1,099

 

Electricity revenue

 

—

 

 

—

 

 

—

 

 

36

 

 

—

 

 

36

 

Commodity sales

 

—

 

 

37

 

 

—

 

 

—

 

 

—

 

 

37

 

Total revenue from contracts with customers

 

2,971

 

 

1,444

 

 

1,282

 

 

36

 

 

—

 

 

5,733

 

Commodity sales

 

8,725

 

 

10

 

 

—

 

 

—

 

 

214

 

 

8,949

 

Other revenue1,2

 

79

 

 

27

 

 

(2

)

 

96

 

 

—

 

 

200

 

Intersegment revenue

 

—

 

 

5

 

 

1

 

 

1

 

 

(7

)

 

—

 

Total revenue

 

11,775

 

 

1,486

 

 

1,281

 

 

133

 

 

207

 

 

14,882

 

 

 

Nine months ended September 30, 2025

Liquids Pipelines

 

Gas Transmission

 

Gas Distribution
and Storage

 

Renewable Power Generation

 

Eliminations and Other

 

Consolidated

 

(millions of Canadian dollars)

 

 

 

 

 

 

 

 

 

 

 

 

Transportation revenue

 

8,934

 

 

4,190

 

 

223

 

 

—

 

 

—

 

 

13,347

 

Storage and other revenue

 

220

 

 

493

 

 

431

 

 

—

 

 

—

 

 

1,144

 

Gas distribution sales

 

—

 

 

—

 

 

6,718

 

 

—

 

 

—

 

 

6,718

 

Electricity revenue

 

—

 

 

—

 

 

—

 

 

166

 

 

—

 

 

166

 

Commodity sales

 

—

 

 

84

 

 

22

 

 

—

 

 

—

 

 

106

 

Total revenue from contracts with customers

 

9,154

 

 

4,767

 

 

7,394

 

 

166

 

 

—

 

 

21,481

 

Commodity sales

 

24,822

 

 

89

 

 

—

 

 

—

 

 

1,052

 

 

25,963

 

Other revenue1,2

 

228

 

 

45

 

 

77

 

 

223

 

 

—

 

 

573

 

Intersegment revenue

 

—

 

 

15

 

 

14

 

 

6

 

 

(35

)

 

—

 

Total revenue

 

34,204

 

 

4,916

 

 

7,485

 

 

395

 

 

1,017

 

 

48,017

 

 

Nine months ended September 30, 2024

Liquids Pipelines

 

Gas Transmission

 

Gas Distribution
and Storage

 

Renewable Power Generation

 

Eliminations and Other

 

Consolidated

 

(millions of Canadian dollars)

 

 

 

 

 

 

 

 

 

 

 

 

Transportation revenue3

 

8,916

 

 

3,895

 

 

193

 

 

—

 

 

—

 

 

13,004

 

Storage and other revenue

 

192

 

 

416

 

 

351

 

 

—

 

 

—

 

 

959

 

Gas distribution sales3

 

—

 

 

—

 

 

4,223

 

 

—

 

 

—

 

 

4,223

 

Electricity revenue

 

—

 

 

—

 

 

—

 

 

137

 

 

—

 

 

137

 

Commodity sales

 

—

 

 

115

 

 

—

 

 

—

 

 

—

 

 

115

 

Total revenue from contracts with customers

 

9,108

 

 

4,426

 

 

4,767

 

 

137

 

 

—

 

 

18,438

 

Commodity sales

 

17,494

 

 

62

 

 

—

 

 

—

 

 

751

 

 

18,307

 

Other revenue1,2

 

213

 

 

46

 

 

24

 

 

228

 

 

—

 

 

511

 

Intersegment revenue

 

—

 

 

16

 

 

5

 

 

5

 

 

(26

)

 

—

 

Total revenue

 

26,815

 

 

4,550

 

 

4,796

 

 

370

 

 

725

 

 

37,256

 

 

1
Includes realized and unrealized gains and losses from our hedging program which for the three months ended September 30, 2025 were a net $13 million gain (2024 - $54 million gain) and for the nine months ended September 30, 2025 were a net $145 million gain (2024 - $15 million gain).
2
Includes revenues from lease contracts for the three months ended September 30, 2025 and 2024 of $116 million and $125 million, respectively, and for the nine months ended September 30, 2025 and 2024 of $415 million and $407 million, respectively.
3
These balances reflect a transfer from Transportation revenue to Gas distribution sales of $389 million and $1.1 billion for the three and nine months ended September 30, 2024, respectively.

 

We disaggregate revenues into categories which represent our principal performance obligations within each business segment. These revenue categories represent the most significant revenue streams in each segment and consequently are considered to be the most relevant revenue information for management to consider in evaluating performance.

 

Contract Balances

 

Contract Receivables

 

Contract
Assets

 

Contract Liabilities

 

(millions of Canadian dollars)

 

 

 

 

 

 

Balance as at September 30, 2025

 

2,614

 

 

313

 

 

2,826

 

Balance as at December 31, 2024

 

3,764

 

 

330

 

 

2,828

 

 

Contract receivables represent the amount of receivables derived from contracts with customers.

 

Contract assets represent the amount of revenues which have been recognized in advance of payments received for performance obligations we have fulfilled (or have partially fulfilled) and prior to the point in time at which our right to payment is unconditional. Amounts included in contract assets are transferred to accounts receivable when our right to receive the consideration becomes unconditional.

 

Contract liabilities represent payments received for performance obligations which have not been fulfilled. Contract liabilities primarily relate to make-up rights and deferred revenues. Revenue recognized during the three and nine months ended September 30, 2025 included in contract liabilities at the beginning of the period were $91 million and $380 million, respectively. Increases in contract liabilities from cash received, net of amounts recognized as revenues, during the three and nine months ended September 30, 2025 were $224 million and $435 million, respectively.

 

Performance Obligations

There were no material revenues recognized in the three and nine months ended September 30, 2025 from performance obligations satisfied in previous periods.

 

Revenues to be Recognized from Unfulfilled Performance Obligations

Total revenues from performance obligations expected to be fulfilled in future periods is $59.1 billion, of which $2.6 billion and $8.3 billion are expected to be recognized during the remaining three months ending December 31, 2025 and the year ending December 31, 2026, 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 revenues from contracts with customers. Certain revenues such as flow-through operating costs charged to shippers are recognized at the amount for which we have the right to invoice our customers and are excluded from the amounts for revenues to be recognized in the future from unfulfilled performance obligations above. Variable consideration is 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, revenues from contracts with customers which have an original expected duration of one year or less are excluded from the amounts above.

 

Recognition and Measurement of Revenues

Three months ended September 30, 2025

Liquids Pipelines

 

Gas Transmission

 

Gas Distribution
and Storage

 

Renewable Power Generation

 

Consolidated

 

(millions of Canadian dollars)

 

 

 

 

 

 

 

 

 

 

Revenues from products transferred at a point in time

 

—

 

 

32

 

 

42

 

 

22

 

 

96

 

Revenues from products and services transferred over time1

 

3,011

 

 

1,519

 

 

1,473

 

 

50

 

 

6,053

 

Total revenue from contracts with customers

 

3,011

 

 

1,551

 

 

1,515

 

 

72

 

 

6,149

 

 

Three months ended September 30, 2024

Liquids Pipelines

 

Gas Transmission

 

Gas Distribution
and Storage

 

Renewable Power Generation

 

Consolidated

 

(millions of Canadian dollars)

 

 

 

 

 

 

 

 

 

 

Revenues from products transferred at a point in time

 

—

 

 

37

 

 

31

 

 

—

 

 

68

 

Revenues from products and services transferred over time1

 

2,971

 

 

1,407

 

 

1,251

 

 

36

 

 

5,665

 

Total revenue from contracts with customers

 

2,971

 

 

1,444

 

 

1,282

 

 

36

 

 

5,733

 

 

Nine months ended September 30, 2025

Liquids Pipelines

 

Gas Transmission

 

Gas Distribution
and Storage

 

Renewable Power Generation

 

Consolidated

 

(millions of Canadian dollars)

 

 

 

 

 

 

 

 

 

 

Revenues from products transferred at a point in time

 

—

 

 

84

 

 

109

 

 

38

 

 

231

 

Revenues from products and services transferred over time1

 

9,154

 

 

4,683

 

 

7,285

 

 

128

 

 

21,250

 

Total revenue from contracts with customers

 

9,154

 

 

4,767

 

 

7,394

 

 

166

 

 

21,481

 

 

Nine months ended September 30, 2024

Liquids Pipelines

 

Gas Transmission

 

Gas Distribution
and Storage

 

Renewable Power Generation

 

Consolidated

 

(millions of Canadian dollars)

 

 

 

 

 

 

 

 

 

 

Revenues from products transferred at a point in time

 

—

 

 

115

 

 

93

 

 

—

 

 

208

 

Revenues from products and services transferred over time1

 

9,108

 

 

4,311

 

 

4,674

 

 

137

 

 

18,230

 

Total revenue from contracts with customers

 

9,108

 

 

4,426

 

 

4,767

 

 

137

 

 

18,438

 

 

1
Revenue from crude oil and natural gas pipeline transportation, storage, natural gas gathering, compression and treating, natural gas distribution, natural gas storage services and electricity sales.