Enbridge Sees Higher Earnings Into 2026, Plans More Investments in US Gulf Coast

By Adriano Marchese

Enbridge on Wednesday upgraded its earnings forecast for the next two years thanks largely to its new planned investments in the U.S. Gulf Coast.

The Calgary, Alberta-based pipeline and energy company said its new investments would focus on additional export docks and storage tanks at Enbridge Ingleside Energy Center terminal in Texas and connecting egress for Shell's Sparta assets offshore of Louisiana's coastline.

Chief Executive Greg Ebel said these accretive investments provide near-term growth in the U.S. Gulf Coast and set the stage for the future expansion through partnerships and embedded organic opportunities.

Looking ahead to 2026, Enbridge expects growth of 7% to 9% for adjusted earnings before interest, tax, and depreciation and amortization and between 4% and 6% for earnings per share.

The company also expects about 3% growth for distributable cash flow per share.

Enbridge said the increases are largely due to the U.S. gas utilities acquisitions announced in September, which are expected to close this year, as well as base business growth.

On the spending front, Enbridge plans to remain disciplined with capital allocation and aims to invest between 6 billion Canadian dollars, the equivalent of $4.41 billion, and C$7 billion annually on secured projects while remaining within its targeted leverage range.

Beyond 2026, Enbridge expects average annual growth of about 5% for Ebitda, DCF per share and earnings per share.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

March 06, 2024 07:46 ET (12:46 GMT)

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