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Enbridge (ENB) Q3 Earnings Beat Estimates, Revenues Fall Y/Y
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Enbridge Inc. (ENB - Free Report) reported third-quarter 2023 adjusted earnings per share of 46 cents, which beat the Zacks Consensus Estimate of 43 cents. However, the bottom line declined from the year-ago quarter’s level of 51 cents.
Total quarterly revenues of $7,338 million decreased from $8,872 million in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $8,234 million.
The better-than-expected quarterly earnings resulted from higher contributions from the Liquids Pipelines segment. This was partially offset by lower contributions from the Gas Transmission and Midstream, and Gas Distribution and Storage segments.
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$2,325 million, up from C$2,269 million in the year-earlier quarter. The figure also came in higher than our estimate of C$2,134 million. Higher contributions from Mainline System, Gulf Coast and Mid-Continent primarily aided the segment.
Gas Transmission and Midstream: Adjusted earnings at this segment totaled C$1,092 million, down from C$1,158 million recorded in third-quarter 2022. Lower contributions from Midstream and Canadian Gas Transmission primarily hurt its performance. The reported figure came in higher than our estimate of C$899 million.
Gas Distribution and Storage: The unit generated a profit of C$271 million, down from C$293 million in the prior-year quarter due to decreased contributions from Enbridge Gas Inc. The figure was also lower than our estimate of C$333.5 million.
Renewable Power Generation: The segment recorded earnings of C$119 million, up from C$113 million in the prior-year quarter. The figure was also higher than our estimate of C$107.4 million.
Energy Services: The segment incurred a loss of C$38 million, narrower than a reported loss of C$132 million in the third quarter of 2022.
Distributable Cash Flow (DCF)
In third-quarter 2023, Enbridge reported a DCF of C$2,573 million, up from C$2,501 million recorded a year ago.
Balance Sheet
At the end of the third quarter, ENB reported long-term debt of C$77,515 million. It had cash and cash equivalents of C$2,608 million. The current portion of long-term debt was C$7,138 million.
Guidance
For 2023, Enbridge reiterated its EBITDA projection in the range of C$15.9-C$16.5 billion. The metric indicates an increase from C$12 billion reported in 2022. The company expects DCF per share in the band of C$5.25-C$5.65 for the year, the mid-point of which implies an increase from C$5.42 registered in 2022.
Liberty reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver-CO-based oil and gas equipment company’s outperformance reflects the impact of strong execution and increased service pricing.
The company’s board of directors announced a cash dividend of 7 cents per common share, payable on Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
Matador Resources reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, MTDR expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the previously mentioned 143,000 BOE/D.
Oceaneering International reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of 27 cents. OII’s outperformance was largely due to robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues compared with the third-quarter results.
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Enbridge (ENB) Q3 Earnings Beat Estimates, Revenues Fall Y/Y
Enbridge Inc. (ENB - Free Report) reported third-quarter 2023 adjusted earnings per share of 46 cents, which beat the Zacks Consensus Estimate of 43 cents. However, the bottom line declined from the year-ago quarter’s level of 51 cents.
Total quarterly revenues of $7,338 million decreased from $8,872 million in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $8,234 million.
The better-than-expected quarterly earnings resulted from higher contributions from the Liquids Pipelines segment. This was partially offset by lower contributions from the Gas Transmission and Midstream, and Gas Distribution and Storage segments.
Enbridge Inc Price, Consensus and EPS Surprise
Enbridge Inc price-consensus-eps-surprise-chart | Enbridge Inc Quote
Segmental 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$2,325 million, up from C$2,269 million in the year-earlier quarter. The figure also came in higher than our estimate of C$2,134 million. Higher contributions from Mainline System, Gulf Coast and Mid-Continent primarily aided the segment.
Gas Transmission and Midstream: Adjusted earnings at this segment totaled C$1,092 million, down from C$1,158 million recorded in third-quarter 2022. Lower contributions from Midstream and Canadian Gas Transmission primarily hurt its performance. The reported figure came in higher than our estimate of C$899 million.
Gas Distribution and Storage: The unit generated a profit of C$271 million, down from C$293 million in the prior-year quarter due to decreased contributions from Enbridge Gas Inc. The figure was also lower than our estimate of C$333.5 million.
Renewable Power Generation: The segment recorded earnings of C$119 million, up from C$113 million in the prior-year quarter. The figure was also higher than our estimate of C$107.4 million.
Energy Services: The segment incurred a loss of C$38 million, narrower than a reported loss of C$132 million in the third quarter of 2022.
Distributable Cash Flow (DCF)
In third-quarter 2023, Enbridge reported a DCF of C$2,573 million, up from C$2,501 million recorded a year ago.
Balance Sheet
At the end of the third quarter, ENB reported long-term debt of C$77,515 million. It had cash and cash equivalents of C$2,608 million. The current portion of long-term debt was C$7,138 million.
Guidance
For 2023, Enbridge reiterated its EBITDA projection in the range of C$15.9-C$16.5 billion. The metric indicates an increase from C$12 billion reported in 2022. The company expects DCF per share in the band of C$5.25-C$5.65 for the year, the mid-point of which implies an increase from C$5.42 registered in 2022.
Zacks Rank & Stocks to Consider
Currently, ENB carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy sector are Liberty Energy Inc. (LBRT - Free Report) , Matador Resources Company (MTDR - Free Report) and Oceaneering International, Inc. (OII - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Liberty reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver-CO-based oil and gas equipment company’s outperformance reflects the impact of strong execution and increased service pricing.
The company’s board of directors announced a cash dividend of 7 cents per common share, payable on Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
Matador Resources reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, MTDR expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the previously mentioned 143,000 BOE/D.
Oceaneering International reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of 27 cents. OII’s outperformance was largely due to robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues compared with the third-quarter results.