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Enbridge Inc.

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Enbridge has the longest and most sophisticated crude and liquids pipeline system in the world that spreads over 17,511 miles. We appreciate the merger with Spectra Energy as it has made Enbridge the largest energy infrastructure company in North America in terms of enterprise value. Also, the transaction has given Enbridge the industry’s largest backlog of growth projects, worth around C$75 billion. The company believes that this huge backlog will help it to grow its dividend by 10–12% annually from 2018 to 2024. However, the company’s huge debt load is a matter of concern. As of Jun 30, 2017, Enbridge had long-term debt of $46,170 million, as against cash balance of only $1,583 million, reflecting significant balance sheet weakness. The company also lost 3.1% value year to date, significantly underperforming the industry’s gain of 2.4% during the aforesaid period.

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