Back to top

Image: Bigstock

Enbridge Q1 Earnings Beat Estimates, Revenues Increase Y/Y

Read MoreHide Full Article

Enbridge Inc. (ENB - Free Report) reported first-quarter 2025 adjusted earnings per share (EPS) of 72 cents, which beat the Zacks Consensus Estimate of 68 cents. The bottom line increased from the year-ago quarter’s level of 68 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Total quarterly revenues of $12.9 billion increased from $8.2 billion in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $9.5 billion.

The strong quarterly results can be attributed to higher Adjusted EBITDA contributions from its major business segments like Liquids Pipelines, Gas Transmission, and Gas Distribution and Storage.

Enbridge Inc Price, Consensus and EPS Surprise

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, Gas Distribution and Storage, Renewable Power Generation, and Eliminations and Other.

Liquids Pipelines: The segment’s adjusted earnings before interest, income taxes, and depreciation and amortization (EBITDA) totaled C$2.59 billion, up from C$2.40 billion in the year-earlier quarter. Higher contributions from the Mainline and Line 9 throughputs aided the segment, partially offset by lower contributions from the Gulf Coast and Mid-Continent systems.

Gas Transmission: Adjusted earnings in this segment totaled C$1.47 billion, up from C$1.27 billion recorded in the first quarter of 2024. Higher contributions from the U.S. gas transmission segment, rate case settlements and new acquisitions primarily aided the segment’s performance, partially offset by divestitures.

Gas Distribution and Storage: The unit generated a profit of C$1,600 million, up from C$765 million in the prior-year quarter. The rise was mainly due to increased contributions from the U.S. Gas Utilities.

Renewable Power Generation: The segment recorded earnings of C$223 million, down from C$257 million in the prior-year quarter.

Eliminations and Other: The segment earned a profit of C$40 million, marking an improvement from a loss of C$642 million in the first quarter of 2024.

Distributable Cash Flow (DCF)

Enbridge reported a DCF of C$3.77 billion, up from C$3.46 billion recorded a year ago.

Balance Sheet

At the end of the first quarter, ENB reported long-term debt of C$97.2 billion. It had cash and cash equivalents of C$2.3 billion. The current portion of long-term debt was C$5.1 billion.

Outlook

For 2025, the company reaffirmed its guidance for adjusted EBITDA (on base business) and DCF per share in the range of $19.4-$20.0 billion and $5.50-$5.90, respectively.

The pipeline company also reaffirmed its near-term growth outlook (2023-2026) of 7-9% for adjusted EBITDA and 3% for DCF per share.

ENB’s Zacks Rank and Key Picks

Currently, ENB carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Diversified Energy Company plc (DEC - Free Report) , Comstock Resources, Inc. (CRK - Free Report) and RPC Inc. (RES - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Diversified Energy Company is an independent oil and natural gas producer in the United States. The company is primarily engaged in the production, transportation, and marketing of natural gas and natural gas liquids. The rising demand for natural gas as a cleaner-burning fuel and an uptick in the commodity’s prices are expected to positively impact DEC’s bottom line.

Comstock Resources is a leading independent natural gas producer with core operations in the Haynesville and Bossier shale formations of North Louisiana and East Texas. The company benefits from direct access to Gulf Coast markets and the LNG corridor. It maintains one of the industry’s lowest operating cost structures, and has significantly reduced its leverage. With over 1,600 high-return drilling locations offering more than 25 years of inventory, strong free cash flow supports Comstock’s growing financial strength.

RPC derives strong and stable revenues via diverse oilfield services, which include pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield stands higher than the composite stocks belonging to the industry. Its new Tier IV dual-fuel fleet boosted profits, with plans for more high-efficiency equipment expansion to enhance operational capabilities. 

Published in