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 Inc. (ENB - Free Report) declined a marginal 0.2% despite reporting strong second-quarter 2021 earnings on Jul 30. Although increased contributions from Mainline System and Regional Oil Sands System are aiding the bottom line, the company’s challenging Energy Services business is clouding the outlook.
The company reported second-quarter 2021 adjusted earnings per share of 55 cents, beating the Zacks Consensus Estimate of 44 cents and improving from the year-ago figure of 41 cents.
Total revenues increased 54.2% year over year to $8,913 million.
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) totaled C$1,844 million, up from C$1,744 million in the year-earlier quarter. Higher contributions from Mainline System and Regional Oil Sands System primarily aided the segment.
Gas Transmission and Midstream: The segment’s adjusted earnings totaled C$935 million, down from C$975 million in second-quarter 2020. Lower contributions from the US Gas Transmission business affected the segment’s performance.
Gas Distribution and Storage: The unit generated a profit of C$461 million compared with C$406 million in the prior-year quarter, thanks to higher distribution charges.
Renewable Power Generation: The segment recorded earnings of C$113 million, down from C$150 million in the prior-year quarter as the energy giant witnessed weak wind resources from its wind power generation facilities at onshore Canada.
Energy Services: The segment incurred a loss of C$86 million against a profit of C$86 million in second-quarter 2020. Certain markets experienced a considerable compression in location and quality differentials, hurting the segment.
Distributable Cash Flow (DCF)
For second-quarter 2021, the company reported DCF of C$2,503 million, representing an increase from C$2,437 million a year ago.
Balance Sheet
At the end of second-quarter 2021, the company reported long-term debt of C$63,090 million, and cash and cash equivalents of C$374 million. The current portion of long-term debt was C$3,739 million. Its debt to capitalization was 52.4% at second quarter-end.
Guidance
For 2021, the company reaffirmed its guidance for DCF per share at the band of C$4.70-C$5.00. It continues to project 2021 EBITDA within C$13.9-C$14.3 billion. The midstream energy player projects 5% to 7% growth in distributable cash flow through 2023.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #4 (Sell). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and PDC Energy, Inc. . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is expected to witness earnings growth of 256% in 2021.
PDC Energy is likely to see earnings growth of 111.8% in 2021.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Enbridge (ENB) Slips Marginally Despite Q2 Earnings Beat
Enbridge Inc. (ENB - Free Report) declined a marginal 0.2% despite reporting strong second-quarter 2021 earnings on Jul 30. Although increased contributions from Mainline System and Regional Oil Sands System are aiding the bottom line, the company’s challenging Energy Services business is clouding the outlook.
The company reported second-quarter 2021 adjusted earnings per share of 55 cents, beating the Zacks Consensus Estimate of 44 cents and improving from the year-ago figure of 41 cents.
Total revenues increased 54.2% year over year to $8,913 million.
Enbridge Inc Price, Consensus and EPS Surprise
Enbridge Inc price-consensus-eps-surprise-chart | Enbridge Inc Quote
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) totaled C$1,844 million, up from C$1,744 million in the year-earlier quarter. Higher contributions from Mainline System and Regional Oil Sands System primarily aided the segment.
Gas Transmission and Midstream: The segment’s adjusted earnings totaled C$935 million, down from C$975 million in second-quarter 2020. Lower contributions from the US Gas Transmission business affected the segment’s performance.
Gas Distribution and Storage: The unit generated a profit of C$461 million compared with C$406 million in the prior-year quarter, thanks to higher distribution charges.
Renewable Power Generation: The segment recorded earnings of C$113 million, down from C$150 million in the prior-year quarter as the energy giant witnessed weak wind resources from its wind power generation facilities at onshore Canada.
Energy Services: The segment incurred a loss of C$86 million against a profit of C$86 million in second-quarter 2020. Certain markets experienced a considerable compression in location and quality differentials, hurting the segment.
Distributable Cash Flow (DCF)
For second-quarter 2021, the company reported DCF of C$2,503 million, representing an increase from C$2,437 million a year ago.
Balance Sheet
At the end of second-quarter 2021, the company reported long-term debt of C$63,090 million, and cash and cash equivalents of C$374 million. The current portion of long-term debt was C$3,739 million. Its debt to capitalization was 52.4% at second quarter-end.
Guidance
For 2021, the company reaffirmed its guidance for DCF per share at the band of C$4.70-C$5.00. It continues to project 2021 EBITDA within C$13.9-C$14.3 billion. The midstream energy player projects 5% to 7% growth in distributable cash flow through 2023.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #4 (Sell). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and PDC Energy, Inc. . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is expected to witness earnings growth of 256% in 2021.
PDC Energy is likely to see earnings growth of 111.8% in 2021.