News about Enbridge

The article compares Enterprise Products Partners (EPD) and Enbridge (ENB), two pipeline stocks with similar forward dividend yields of about 5.9% and 5.8% and roughly three decades of annual dividend increases. It finds EPD has stronger dividend coverage: distributions and buybacks equaled about 54% of cash flow from operations over the trailing 12 months through Q3, versus Enbridge's guided 60% to 70% of discretionary cash flow. EPD is also less leveraged, with debt-to-EBITDA around 2.9 compared with Enbridge's 4.5 to 5 target range. Although MLPs issue K-1s that complicate taxes, the article says EPD is still more tax-efficient, since Enbridge, as a Canadian corporation, is subject to withholding tax on dividends paid to U.S. investors. Enbridge stands out for its regulated natural gas utilities, which give it less cash flow volatility, and the article notes EPD's advantages could change over time.

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.

Enbridge has begun construction on its C$4.00 billion Sunrise Expansion in British Columbia, adding about 87 miles of pipeline and 300 million cubic feet per day of capacity to its Westcoast natural gas system, and reaffirmed its 2026 guidance and dividend outlook. Distributable cash flow covered the dividend 1.51 times in 2025, and the company has a C$41 billion secured backlog. The article flags the key risk as delays or underperforming assets keeping leverage above target. Its narrative projects revenue of CA$79.3 billion and earnings of CA$8.1 billion by 2029, implying a fair value of CA$79.11 per share. Six fair value estimates from the Simply Wall St Community range from about C$47 to C$268.69 per share.