Enbridge (ENB) shares have fallen more than 15% over the past three months after the company reported second-quarter adjusted earnings per share down 3% year over year to $0.63. The article argues the drop is an overreaction, pointing to distributable cash flow (DCF) of CA$2.948 billion in the second quarter, up 1.5% year over year, and to Enbridge's position as North America's largest natural gas utility. About 98% of its cash flow is backed by long-term, rate-regulated contracts with inflation adjustments, and the company intends to keep its DCF payout ratio at 60% to 70%; it raised its dividend 3% this year, its 31st consecutive annual increase. Debt-to-EBITDA rose to 6.33x, the highest in three years, as Enbridge invests CA$41 billion in new energy infrastructure projects, which it expects to grow adjusted EBITDA and DCF by 5% annually through the end of the decade. The company forecasts adjusted EBITDA of CA$20.2 billion to CA$20.8 billion this year, up from CA$19.9 billion in 2025.
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