We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Enbridge (ENB) to Streamline Asset, Hike Dividend, Lower Debt
Read MoreHide Full Article
Enbridge Inc. (ENB - Free Report) plans to focus on more profitable businesses as well as lowering debt burden. This leading midstream energy firm also revealed ways to fund growth projects and announced intention to reward shareholders with dividend hike.
Following the merger with midstream player Spectra Energy on Feb 27, Enbridge created the largest energy infrastructure company in North America. Now, Enbridge intends to streamline its portfolio by spending as much as C$22 billion on growth and maintenance developments through 2020-end. While majority of the capital budget – C$14 billion – will likely be funded by internally generated cash, Enbridge will finance C$3 billion through the sale of non-core assets and C$1.5 billion through equity capital – by issuing common stocks.
Investors should know that Enbridge has figured out C$10 billion worth of non-core assets. Of the total, the company expects to monetize at least C$3 billion in 2018 through the divestment of some unregulated natural gas midstream assets and onshore renewable operations.
Moreover, with an aim to lower its debt burden by C$4 billion, the company is planning to improve the credit matric by achieving a Debt to EBITDA multiple of 5x and 4.5x by the end of 2018 and 2020, respectively.
Enbridge also received an approval from the board of directors to bump up its quarterly dividend. The new dividend of 67.1 Canadian cents, represents a sequential increase of 10%, will likely be paid on Mar 1, 2018, to stockholders of record as of Feb 15, 2018.
For 2018, Enbridge is expected to provide annual dividend growth of 10%. Also, through 2020, the company is planning to reward shareholders with the same dividend growth.
Headquartered in Calgary, Canada, Enbridge is an energy infrastructure company. The company’s pricing chart fails to impress. Year to date, the stock has lost 15.4%, underperforming the industry’s 6.6% decline.
Presently, Enbridge carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy space are China Petroleum & Chemical Corporation , Northern Oil and Gas, Inc. (NOG - Free Report) and ExxonMobil Corporation (XOM - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Beijing, China Petroleum is a leading integrated energy player. The company will likely witness year-over-year earnings growth of 59.1% in 2017.
Based in Minnetonka, MN, Northern Oil is an upstream energy player. The company’s 2017 revenues are estimated to grow almost 44%.
Headquartered in Irving, TX, ExxonMobil is the largest publicly traded energy firm. The company managed to beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 8.81%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Enbridge (ENB) to Streamline Asset, Hike Dividend, Lower Debt
Enbridge Inc. (ENB - Free Report) plans to focus on more profitable businesses as well as lowering debt burden. This leading midstream energy firm also revealed ways to fund growth projects and announced intention to reward shareholders with dividend hike.
Following the merger with midstream player Spectra Energy on Feb 27, Enbridge created the largest energy infrastructure company in North America. Now, Enbridge intends to streamline its portfolio by spending as much as C$22 billion on growth and maintenance developments through 2020-end. While majority of the capital budget – C$14 billion – will likely be funded by internally generated cash, Enbridge will finance C$3 billion through the sale of non-core assets and C$1.5 billion through equity capital – by issuing common stocks.
Investors should know that Enbridge has figured out C$10 billion worth of non-core assets. Of the total, the company expects to monetize at least C$3 billion in 2018 through the divestment of some unregulated natural gas midstream assets and onshore renewable operations.
Moreover, with an aim to lower its debt burden by C$4 billion, the company is planning to improve the credit matric by achieving a Debt to EBITDA multiple of 5x and 4.5x by the end of 2018 and 2020, respectively.
Enbridge also received an approval from the board of directors to bump up its quarterly dividend. The new dividend of 67.1 Canadian cents, represents a sequential increase of 10%, will likely be paid on Mar 1, 2018, to stockholders of record as of Feb 15, 2018.
For 2018, Enbridge is expected to provide annual dividend growth of 10%. Also, through 2020, the company is planning to reward shareholders with the same dividend growth.
Headquartered in Calgary, Canada, Enbridge is an energy infrastructure company. The company’s pricing chart fails to impress. Year to date, the stock has lost 15.4%, underperforming the industry’s 6.6% decline.
Presently, Enbridge carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy space are China Petroleum & Chemical Corporation , Northern Oil and Gas, Inc. (NOG - Free Report) and ExxonMobil Corporation (XOM - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Beijing, China Petroleum is a leading integrated energy player. The company will likely witness year-over-year earnings growth of 59.1% in 2017.
Based in Minnetonka, MN, Northern Oil is an upstream energy player. The company’s 2017 revenues are estimated to grow almost 44%.
Headquartered in Irving, TX, ExxonMobil is the largest publicly traded energy firm. The company managed to beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 8.81%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>