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Highlights
- In Q3 2022, Enbridge added a growth capital of roughly C$ 3.8 billion.
- On September 29, 2022, Enbridge Inc. acquired Tri Global Energy.
- Enbridge's adjusted earnings in Q3 2022 were at C$ 1,366 million.
Enbridge Inc. (ENB) holds proprietary rights to extensive midstream assets and is engaged in transporting hydrocarbons across Canada and the US. The company's market capitalization was C$ 111.3 billion at the time of writing.
One of the largest companies in Canada, Enbridge operates with a pipeline network that consists of natural gas pipelines, regional oil sands pipelines, and the Canadian Mainline system. Further, it operates a natural gas distribution company and regulated natural gas utility in Canada.
What's the latest development?
In Q3 2022, the Company added a growth capital of roughly C$ 3.8 billion to its secured capital program. This capital included an expansion of the B.C. Pipeline System’s T-South section with an approximate capital cost of up to C$ 3.6 billion. Another was the US$ 60 million expansion of storage facilities at EIEC.
Further, Enbridge added C$ 100 million in gas upgrading and pipeline connections in the two newly secured RNG projects in Ontario. The company entered a strategic partnership with Métis communities and 23 First Nation selling an 11.57 per cent non-operating interest for C$ 1.12 billion in seven Regional Oil Sands pipelines.
On September 29, 2022, Enbridge Inc. acquired Tri Global Energy for a total amount of US$270 million in assumed debt and cash transactions.
A look at the financials
Enbridge reported its third-quarter results on November 4, 2022 and its adjusted earnings were noted at C$ 1,366 million compared to C$ 1,184 million in the year-ago quarter.
For the same comparable quarters, the company reported an EBITDA of C$ 3,583 million versus C$ 2,605 million. Meanwhile, the distributable cash flow soared to 2,501 million from C$ 2,290 million.
Enbridge posted an increase in its adjusted EBITDA by C$ 489 million compared to the same quarter of the previous year. Reportedly, the increase was due to the EIEC acquisition along with the placement of the new assets’ contributions into service including the Line 3 Replacement Project’s US portion.
Dividend update
Enbridge stated that the quarterly common share dividend for 2023 will rise by 3.2 per cent from $0.86 to $0.8875 per common share. As of writing, the dividend yield of the company was 6.45 per cent.
Bottom Line
With Enbridge’s third quarter results, investors may look into the reports to understand the growth and future prospects of the company. It is crucial to have a detailed view of the company to be able to hold its stocks. As a long-term investor, make sure to analyze and understand all the factors that affect the company’s stock and performance in the long run.
Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
