Company Reports

Enbridge has spent CAD 4.5 billion on acquisitions over the past month, acquiring Salt Creek gathering and Tallgrass pipeline assets. The acquisitions were mostly funded by CAD 3 billion in equity issuance, with debt making up the balance.

After completing the acquisition of three regional utilities, Enbridge has a highly diversified midstream platform with many productive avenues to deploy capital.

Enbridge announced the sanctioning of the Line 5 replacement, the critical artery for crude and refined products into Michigan and eastern Canada, which has been under legal threat. It also announced the Bay Runner Twin and an option to buy the TTC Connector pipeline to serve liquefied natural gas.

After completing the acquisition of three regional utilities, Enbridge stands as a highly diversified midstream platform with many productive avenues to deploy capital.

Since last week, there have been two developments in provincial and federal agreements in Canada. First, British Columbia appeared to drop its objections to new pipelines. Second, Alberta and Ontario have proposed a new transcontinental oil pipeline entirely within Canada.

Enbridge's EBITDA for the quarter came in at CAD 5.8 billion, slightly above the CAD 5.7 billion Pitchbook consensus. Cone, a new Brenewables project, added USD 700 million to the sanctioned program, while smaller projects in the gas transmission segments were commercialized.

After completing the acquisition of three regional utilities, Enbridge stands as a highly diversified midstream platform with many productive avenues to deploy capital.

Enbridge reported EBITDA of CAD 5.2 billion versus PitchBook consensus of CAD 5.1 billion. Mainline optimization one (MLO1) achieved final investment decision, and we expect MLO2 will make it over the finish line. Upsized and new investments were announced across the portfolio.

After completing the acquisition of three regional utilities, Enbridge stands as a highly diversified midstream platform with many productive avenues to deploy capital.

Enbridge missed FactSet estimates for earnings per share by 11%. Shares traded higher in the day as guidance for distributable cashflow and EBITDA remained unchanged. It announced progress on several initiatives, but most material for investors were the developments in the liquids segment.

After completing the acquisition of three regional utilities, Enbridge stands as a highly diversified midstream platform with many productive avenues to deploy capital.

Enbridge topped EBITDA estimates, reporting CAD 4,644 million vs CAD 4,541 million FactSet consensus estimates. Management cited favorable rate settlements and contracts in the gas transmission segment, along with colder weather bolstering the utility segment, offset by weaker Mainline volumes.

After completing the acquisition of three regional utilities, Enbridge stands as a highly diversified midstream platform with many productive avenues to deploy capital.

After completing the acquisition of three regional utilities, Enbridge stands as a highly diversified midstream platform with many productive avenues to deploy capital.

After taking a second look at Enbridge, we are affirming our narrow moat, Medium Uncertainty, and Standard Capital Allocation Ratings. We are also increasing our fair value estimate to CAD 59 from CAD 56 and to $43 from $41 after reviewing Enbridge’s project pipeline and adjusting for the recent strong performance by the Mainline system. The Mainline and liquids segment as a whole remains the most decisive growth lever for the company. At just under half of our 2025 forecast EBITDA, relatively small improvements in rates or volumes can have a substantial impact. Pending rate cases in Utah and North Carolina look likely to resolve in Enbridge's favor, further boosting 2026 performance.

Narrow-moat-rated Enbridge posted adjusted EBITDA that grew nearly 20% over the prior year, driven by utility assets purchased last April. Management left guidance unchanged as its low-volatility business looks resilient despite uncertainties. As a result, we are leaving our CAD 56 and $41 fair value estimates unchanged.

Enbridge reported CAD 18.6 billion of adjusted EBITDA in 2024, up from CAD 16.5 billion in 2023 and in line with our full-year expectations.

We are reaffirming our CAD 56 and USD 41 per share fair value estimates for Enbridge after the company reported third-quarter earnings. Our narrow moat remains unchanged.

In June 2024, TC Energy shareholders approved the spinoff of the firm’s liquids pipelines business. The spinoff will be called South Bow Corporation. We reduce our fair value estimate to CAD 53 from CAD 67 and maintain our narrow moat rating for the remaining TC Energy firm. South Bow has a lower-risk growth profile as compared with the overall TC Energy business, so divesting this liquids pipelines segment will allow TC Energy to focus on segments that are generating strong returns on capital, such as renewable energy.

Enbridge stands out among North American midstream operators with a utilitylike earnings profile. Its most important asset, the Mainline system, controls over 70% of Canada's takeaway capacity and is linked to highly complex US refineries that value heavy oil, so demand remains secure in the near to medium term despite the increase in US light oil production. Over 80% of Enbridge's EBITDA is protected against inflation.