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) Q3 Earnings Miss Estimates, Revenues Fall Y/Y
Read MoreHide Full Article
Enbridge Inc. (ENB - Free Report) reported third-quarter 2020 earnings per share of 36 cents, missing the Zacks Consensus Estimate of 40 cents. The bottom line also deteriorated from 42 cents a year ago.
Total revenues in the quarter declined 22.2% year over year to $6,838 million.
The weak quarterly results were owing to a decrease in Mainline System throughput, partially offset by higher contributions from the U.S. Gas Transmission business.
The leading midstream energy infrastructure player in North America separately announced its target of accomplishing net zero greenhouse gas emission by 2050. The company added its interim goal to slash the intensity of greenhouse gas emissions by 35% by 2030.
Distributable Cash Flow (DCF)
In third-quarter 2020, the company reported DCF of C$2,088 million, representing a decline from C$2,105million a year ago.
Segment Analysis
Enbridge conducts business through five segments — Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services.
Liquids Pipelines: The segment’s adjusted earnings before interest, income taxes, and depreciation and amortization (EBITDA) amounted to C$1,732 million, down from C$1,826 million in the year-earlier quarter. Lower contributions from Gulf Coast and Mid-Continent System, Mainline System and Regional Oil Sands System primarily led to the underperformance.
Gas Transmission and Midstream: The segment’s adjusted earnings totaled C$945 million, up marginally from C$944 million in third-quarter 2019. Higher contributions from the US Gas Transmission business drove the upside.
Gas Distribution and Storage: The unit generated profit of C$315 million compared with C$255 million in the prior-year quarter. Increase in distribution charges and growth in customer portfolio primarily led to the outperformance.
Renewable Power Generation: The segment recorded earnings of C$93 million, up from C$82 million in the prior-year quarter, thanks to Hohe See offshore wind project’s contributions.
Energy Services: The segment incurred a loss of C$110 million against a profit of C$27 million in third-quarter 2019.
Balance Sheet
At the end of third-quarter 2020, the company reported total debt of C$67,132 million, and cash and cash equivalents of C$657 million. Its debt-to-capitalization ratio was almost 0.51.
Guidance
For 2020, the company has reaffirmed its guidance for DCF per share at the band of C$4.50 to C$4.80. Enbridge is optimistic that there will be a gradual recovery in energy demand through the remainder of this year and the entire 2021.
Zacks Rank & Stock to Consider
The company currently has a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Sunoco LP (SUN - Free Report) , Matador Resources Company (MTDR - Free Report) and Antero Resources Corporation (AR - Free Report) . While Sunoco sports a Zacks Rank #1 (Strong Buy), Matador and Antero carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunocohas seen upward estimate revisions for its 2020 bottom line in the past 30 days.
Matador has seen upward estimate revisions for its 2020 bottom line in the past 30 days.
Anterohas seen upward estimate revisions for 2020 bottom line in the past 30 days.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Enbridge (ENB) Q3 Earnings Miss Estimates, Revenues Fall Y/Y
Enbridge Inc. (ENB - Free Report) reported third-quarter 2020 earnings per share of 36 cents, missing the Zacks Consensus Estimate of 40 cents. The bottom line also deteriorated from 42 cents a year ago.
Total revenues in the quarter declined 22.2% year over year to $6,838 million.
The weak quarterly results were owing to a decrease in Mainline System throughput, partially offset by higher contributions from the U.S. Gas Transmission business.
Enbridge Inc Price, Consensus and EPS Surprise
Enbridge Inc price-consensus-eps-surprise-chart | Enbridge Inc Quote
Environmental Target
The leading midstream energy infrastructure player in North America separately announced its target of accomplishing net zero greenhouse gas emission by 2050. The company added its interim goal to slash the intensity of greenhouse gas emissions by 35% by 2030.
Distributable Cash Flow (DCF)
In third-quarter 2020, the company reported DCF of C$2,088 million, representing a decline from C$2,105million a year ago.
Segment Analysis
Enbridge conducts business through five segments — Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services.
Liquids Pipelines: The segment’s adjusted earnings before interest, income taxes, and depreciation and amortization (EBITDA) amounted to C$1,732 million, down from C$1,826 million in the year-earlier quarter. Lower contributions from Gulf Coast and Mid-Continent System, Mainline System and Regional Oil Sands System primarily led to the underperformance.
Gas Transmission and Midstream: The segment’s adjusted earnings totaled C$945 million, up marginally from C$944 million in third-quarter 2019. Higher contributions from the US Gas Transmission business drove the upside.
Gas Distribution and Storage: The unit generated profit of C$315 million compared with C$255 million in the prior-year quarter. Increase in distribution charges and growth in customer portfolio primarily led to the outperformance.
Renewable Power Generation: The segment recorded earnings of C$93 million, up from C$82 million in the prior-year quarter, thanks to Hohe See offshore wind project’s contributions.
Energy Services: The segment incurred a loss of C$110 million against a profit of C$27 million in third-quarter 2019.
Balance Sheet
At the end of third-quarter 2020, the company reported total debt of C$67,132 million, and cash and cash equivalents of C$657 million. Its debt-to-capitalization ratio was almost 0.51.
Guidance
For 2020, the company has reaffirmed its guidance for DCF per share at the band of C$4.50 to C$4.80. Enbridge is optimistic that there will be a gradual recovery in energy demand through the remainder of this year and the entire 2021.
Zacks Rank & Stock to Consider
The company currently has a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Sunoco LP (SUN - Free Report) , Matador Resources Company (MTDR - Free Report) and Antero Resources Corporation (AR - Free Report) . While Sunoco sports a Zacks Rank #1 (Strong Buy), Matador and Antero carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunocohas seen upward estimate revisions for its 2020 bottom line in the past 30 days.
Matador has seen upward estimate revisions for its 2020 bottom line in the past 30 days.
Anterohas seen upward estimate revisions for 2020 bottom line in the past 30 days.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>