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ENB

Enbridge NYSE:ENB Stock Report

Last Price

US$37.10

Market Cap

US$75.5b

7D

-2.4%

1Y

-7.3%

Updated

02 Oct, 2022

Data

Company Financials +
ENB fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health0/6
Dividends4/6

ENB Stock Overview

Enbridge Inc. operates as an energy infrastructure company.

Enbridge Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Enbridge
Historical stock prices
Current Share PriceCA$37.10
52 Week HighCA$47.67
52 Week LowCA$36.21
Beta0.91
1 Month Change-10.26%
3 Month Change-13.03%
1 Year Change-7.30%
3 Year Change6.61%
5 Year Change-10.21%
Change since IPO691.47%

Recent News & Updates

Sep 29

Enbridge acquires Tri Global Energy to drive renewables business

Enbridge (NYSE:ENB) announced on Thursday the acquisition of U.S. renewable project developer Tri Global Energy (TGE) for $270M in cash and assumed debt. The deal also offer up to $50M in payments to be made upon successful execution of TGE's project portfolio. TGE is said to be the third largest onshore wind developer in the U.S., with a development portfolio of wind and solar projects representing over 7GW of renewable generation capacity. Since its inception in 2009, the company has successfully developed and monetized over 6GW of utility scale renewable projects. The acquisition will enhance Enbridge's (ENB) renewable platform, while accelerating its North American growth strategy. Al Monaco, Enbridge's President and CEO, said: "TGE's significant development pipeline, coupled with our renewable capabilities, and existing self-power opportunities, make this a truly synergistic investment that further positions us to grow organically at attractive equity returns."

Sep 20

Flyscan Systems closes $3.5M financing round with Hatch, Cleantech Practice, Enbridge

Flyscan Systems closed a $3.5M venture capital financing round with strategic investor Hatch, together with BDC Capital's Cleantech Practice and Enbridge (NYSE:ENB). The funding is expected to be used to support commercialization and scaling up of operations. Flyscan Systems, a spin-off from Canada's National Optics Institute, aims to help energy companies and all operators of long linear critical infrastructure. Hatch is a global engineering, project management and professional services firm. Enbridge is a leading North American energy infrastructure company. BDC Capital is the investment arm of the bank for Canadian entrepreneurs, BDC. ENB shares were trading -0.02% pre-market. Source: Press Release

Sep 09

I Locked In Some Profits From My Oil Stocks, But I Kept Eni

Summary In this article, I want to cover the only oil stock I kept in my portfolio while I locked in some gains from my other holdings. Eni is implementing a new dividend policy with a variable quarterly dividend instead of a semi-annual one. The current scenario sees Eni returning approximately 12% of its market cap to shareholders between dividends and buybacks. Introduction In the past few months, I sold out of most of my energy stocks as I locked in some gains. I owned a bit of Exxon (XOM), Chevron (CVX), Enbridge (ENB), Crestwood Equity Partners (CEQP) and Alerian MLP ETF (AMLP). On the other side, I decided to stick and increase my position in Eni S.p.A. (E) because of two reasons: It is still trading at a discounted price compared to its pre-Covid price Most importantly, starting next week it will implement a new dividend policy which I think will make me benefit from the current high oil price A company with a key role in Europe Eni S.p.A. is the Italian oil company, part of the so-called seven oil supermajors. After TotalEnergies (TTE), it is the second-largest European oil company, with a market cap of $50 billion. In the current European energy crisis, the company is playing a significant role in source diversification to disentangle Europe from its relationship with Russia. Recently, Eni strengthened its relationship with Algeria that respectively led to an increased supply of 4 billion cubic meters of gas to Italy. Furthermore, alongside other oil majors such as TotalEnergies, Eni signed a new contract to operate in the Berkine basin that led to the opportunity to exploit significant quantities of gas. In Egypt, Eni is playing a key role to help the country become a regional hub for natural gas, thanks to the Zohr field discovered by Eni in 2015, which is, so far, the largest ever gas discovery in the Mediterranean Sea. In addition, Eni is talking with Egypt about undertaking projects in solar and wind power, with up to 10GW of installed capacity over the next few years. In June 2022, Eni also reached a partnership with QatarEnergy, which makes the Italian company as a new international partner for the expansion of the North Field East project, the world's largest LNG project. In the same days, Eni started pumping gas from the offshore Coral South field in Mozambique into Coral Sul, a Floating Liquefied Natural Gas facility. This is the first FLNG ever installed on the African continent in deep waters. With it, Mozambique joins the ranks of LNG-producing countries and offers further diversification. Here is a map that shows all the other agreements signed within the last year and half by Eni. Eni Website To this map, we have to consider two recent news. Eni announced a big gas discovery at the Cronos-1 well offshore Cyprus with first estimates that indicate 2.5 trillion cubic feet of available gas, not counting further discoveries in other wells nearby. Just a few days ago, Eni added yet another source when it announced its acquisition of BP's business in Algeria, which controls two major gas fields. These two fields, called "In Amenas" and "In Salah" are located in the Southern Sahara and their production of gas and associated liquids began in 2006 and 2004 respectively. In 2021, they produced approximately 11 billion cubic meters of gas, 12 million barrels of condensates and LPG. All these news make me consider Eni as a strategic play in the current geopolitical environment because it will play a key role not only in diversifying Italy's gas sources, but it will also contribute to create a Mediterranean gas hub for Europe, as the slide below shows. Eni 1H 2022 Results Presentation As we can see, Algeria and Congo will both contribute starting from the upcoming late winter, which will be the most troublesome time for Europe in terms of gas supplies, as stocked gas will be low and demand still high. This makes the company confident in stating that by 2024 it will have replaced 100% of the current Russian supply. Currently, the company is in any case able to meet all its obligation without utilizing its Russian sources, as Eni CEO Descalzi said in the last earnings call: I want to emphasize that the company's remaining 2022 contracted obligation can be fully met with no Russian sources without any additional costs. Other recent news In June, Eni said it expected to launch the IPO of Plenitude, which is the renewables division of the company. There was great interest for this IPO, but due to deteriorated market conditions, Eni decided to postpone it. Though at first disappointing for many investors, I thought the move was right because it showed two things: Eni doesn't need this IPO to raise cash, showing that it is pretty confident of its balance sheet. With European utilities under pressure, it is better to use Eni's strength to protect the value of Plenitude until the situation clarifies. Since energy prices are very high, many European governments decided to tax the extra profits energy companies made. Eni, too, will be subject to a 25% windfall tax in 2022 that will cost the company €1.4 billion, instead of the expected €550 million. Even though this is a high amount, we have to keep in mind that it taxes the extra profits, meaning that the company is making, like all the oil majors, a lot of money this year, as we will see in a moment. Financials If we say that Eni is performing really well, this is no surprise given the current conditions. As summarized by the company in the slide below, we see a very strong EBIT of €11 billion and a net profit 6 times greater YoY at €7.1 billion. The cash flow from operations of €10.8 billion is already enough to cover more than twice the yearly dividends Eni will pay. This is one of the most important data that are leading me to writing this article and sharing it with the Seeking Alpha community. But we will get there in a minute. Eni 1H 2022 Results Presentation What is really important is that Eni, despite a huge increase in profits, is keeping its capex under control, thus taking advantage of the current situation to further deleverage its balance sheet which currently sees a TTM net debt of €16 billion which is more than covered by the €26 billion of TTM EBITDA. Eni also improved its efficiency and brought down its cash neutrality from $45/bbl in 2018 to the current $40/bbl. New dividend distribution policy Now, despite high oil prices, Eni has yet to recover to its pre-covid price, unlike other peers that are close to ATH. Though Eni has been always discounted more than other oil companies, I still see the stock able to recover at least to the low $30s.

Shareholder Returns

ENBUS Oil and GasUS Market
7D-2.4%2.2%-2.5%
1Y-7.3%32.0%-23.2%

Return vs Industry: ENB underperformed the US Oil and Gas industry which returned 32% over the past year.

Return vs Market: ENB exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is ENB's price volatile compared to industry and market?
ENB volatility
ENB Average Weekly Movement3.5%
Oil and Gas Industry Average Movement8.0%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: ENB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ENB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194910,900Al Monacohttps://www.enbridge.com

Enbridge Inc. operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment operates pipelines and related terminals to transport various grades of crude oil and other liquid hydrocarbons in Canada and the United States.

Enbridge Inc. Fundamentals Summary

How do Enbridge's earnings and revenue compare to its market cap?
ENB fundamental statistics
Market CapUS$75.54b
Earnings (TTM)US$3.57b
Revenue (TTM)US$38.09b

21.2x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ENB income statement (TTM)
RevenueCA$52.30b
Cost of RevenueCA$33.22b
Gross ProfitCA$19.08b
Other ExpensesCA$14.18b
EarningsCA$4.90b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.42
Gross Margin36.48%
Net Profit Margin9.37%
Debt/Equity Ratio122.2%

How did ENB perform over the long term?

See historical performance and comparison

Dividends

6.7%

Current Dividend Yield

140%

Payout Ratio