Enbridge Inc.’s ( ENB Quick Quote ENB - Free Report) shares have gained 4.6% since it reported strong third-quarter 2022 earnings on Nov 4, before the opening bell.
Enbridge recorded third-quarter adjusted earnings per share of 51 cents, which beat the Zacks Consensus Estimate by a penny. The bottom line increased from the year-ago quarter’s 47 cents.
Total quarterly revenues of $8,872 million declined from $9,107 million in the prior-year quarter.
Strong quarterly earnings can be primarily attributed to higher contributions from the Liquids Pipelines segment.
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$2,269 million, up from C$1,898 million in the year-earlier quarter. Higher contributions from Mainline System, Gulf Coast and Mid-Continent System primarily aided the segment. Gas Transmission and Midstream: The segment’s adjusted earnings totaled C$1,158 million, up from C$986 million recorded in third-quarter 2021. Higher contributions from the U.S. Gas Transmission primarily aided the segment’s performance. Gas Distribution and Storage: The unit generated a profit of C$293 million, down from C$296 million in the prior-year quarter due to lower contributions from Enbridge Gas Inc. Renewable Power Generation: The segment recorded earnings of C$113 million, up from C$89 million in the prior-year quarter primarily due to higher energy pricing at Europe offshore wind facilities. Energy Services: The segment incurred a loss of C$132 million, wider than a loss of C$116 million recorded in the third quarter of 2021. Distributable Cash Flow (DCF)
In third-quarter 2022, Enbridge reported a DCF of C$2,501 million, representing an increase from C$2,290 million a year ago.
At the end of third-quarter 2022, Enbridge reported long-term debt of C$73,960 million. It had cash and cash equivalents of C$1,021 million. The current portion of long-term debt was C$6,376 million. ENB’s long-term debt to capitalization was 53.3% at the end of the third quarter.
For 2022, Enbridge reaffirmed its guidance for EBITDA at C$15-C$15.6 billion, indicating an increase from C$14 billion reported last year. Also, the company expects DCF per share of C$5.2-C$5.5 for the year. This suggests an increase from C$4.96 reported last year.
Enbridge added C$8 billion of organic growth projects this year, bringing its total backlog to C$17 billion.
Zacks Rank & Stocks to Consider
Enbridge currently carries a Zacks Rank #4 (Sell).
Investors interested in the
energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here . Marathon Petroleum Corporation ( MPC Quick Quote MPC - Free Report) reported third-quarter 2022 adjusted earnings per share of $7.81, comfortably beating the Zacks Consensus Estimate of $6.80. The bottom line was favorably impacted by the stronger-than-expected performance of its Refining & Marketing segment.
In October, Marathon Petroleum completed its target to buy back $15 billion in common stock. Currently, MPC has the remaining authorization of $5 billion with no expiration date.
Patterson-UTI Energy ( PTEN Quick Quote PTEN - Free Report) reported a third-quarter 2022 adjusted net profit of 28 cents per share, beating the Zacks Consensus Estimate of a profit of 19 cents. The outperformance was driven by solid segmental performances.
In good news for investors, Patterson-UTI doubled its quarterly cash dividend to 8 cents per share from the previous 4-cent payout. The dividend will be paid out on Dec 15, 2022, to shareholders of record as of Dec 1, 2022. PTEN also increased its share repurchase authorization to $300 million.
W&T Offshore, Inc. ( WTI Quick Quote WTI - Free Report) reported third-quarter 2022 adjusted earnings (excluding one-time items) of 33 cents per share, beating the Zacks Consensus Estimate of 28 cents. The strong quarterly results were driven by higher production and the realization of commodity prices.
W&T Offshore is expected to see earnings growth of 747.8% for 2022. For 2022, WTI reduced its capital spending budget to $65-$75 million from the prior stated $70-$90 million.