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ENB's Key Midstream Projects: A Catalyst for Incremental Cash Flows?
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Key Takeaways
ENB has over C$30B in secured projects across pipelines, gas transmission, renewables and storage.
Once online, Enbridge's projects are expected to generate added cash flows to support dividend payments.
ENB shares are up 17.7% in a year and trade at a higher EV/EBITDA multiple than the industry average.
Enbridge Inc. (ENB - Free Report) is a leading midstream energy player that generates stable fee-based revenues. Due to the very nature of the business model, the company is not vulnerable to the volatility in oil and natural gas prices.
ENB is also well-positioned to generate incremental cash flows for shareholders. This fact is getting reflected in the midstream giant’s more than C$30 billion in secured capital projects. This includes projects related to liquid pipelines, gas transmissions, renewables and gas distribution & storage.
Once the projects come online, ENB will generate additional cash flows to support shareholders’ dividend payments. In fact, Enbridge has been rewarding shareholders with dividend hikes for 31 consecutive years.
EPD & WMB Also Generate Resilient, Fee-Based Cash Flows
Enterprise Products Partners LP (EPD - Free Report) and Williams (WMB - Free Report) are also midstream energy giants like ENB.
EPD has more than 50,000 miles of pipeline network transporting oil, gas, refined products and other commodities. EPD also has a liquid storage facility of more than 300,000 barrels. Thus, from the assets, the partnership earns stable fees, thereby generating steady cash flows for unitholders.
Williams is also a leading midstream energy player and is well-positioned to capitalize on clean energy demand. This is because, with its pipeline network spanning 33,000 miles, WMB is responsible for the transportation of significant natural gas volumes produced in the United States. Thus, WMB also generates stable cash flows for shareholders.
ENB’s Price Performance, Valuation & Estimates
Shares of ENB have jumped 17.7% over the past year compared with the 12.3% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, ENB trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 15.11X. This is above the broader industry average of 13.79X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ENB’s 2025 earnings hasn’t seen any revisions over the past 30 days.
Image: Bigstock
ENB's Key Midstream Projects: A Catalyst for Incremental Cash Flows?
Key Takeaways
Enbridge Inc. (ENB - Free Report) is a leading midstream energy player that generates stable fee-based revenues. Due to the very nature of the business model, the company is not vulnerable to the volatility in oil and natural gas prices.
ENB is also well-positioned to generate incremental cash flows for shareholders. This fact is getting reflected in the midstream giant’s more than C$30 billion in secured capital projects. This includes projects related to liquid pipelines, gas transmissions, renewables and gas distribution & storage.
Once the projects come online, ENB will generate additional cash flows to support shareholders’ dividend payments. In fact, Enbridge has been rewarding shareholders with dividend hikes for 31 consecutive years.
EPD & WMB Also Generate Resilient, Fee-Based Cash Flows
Enterprise Products Partners LP (EPD - Free Report) and Williams (WMB - Free Report) are also midstream energy giants like ENB.
EPD has more than 50,000 miles of pipeline network transporting oil, gas, refined products and other commodities. EPD also has a liquid storage facility of more than 300,000 barrels. Thus, from the assets, the partnership earns stable fees, thereby generating steady cash flows for unitholders.
Williams is also a leading midstream energy player and is well-positioned to capitalize on clean energy demand. This is because, with its pipeline network spanning 33,000 miles, WMB is responsible for the transportation of significant natural gas volumes produced in the United States. Thus, WMB also generates stable cash flows for shareholders.
ENB’s Price Performance, Valuation & Estimates
Shares of ENB have jumped 17.7% over the past year compared with the 12.3% improvement of the composite stocks belonging to the industry.
From a valuation standpoint, ENB trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 15.11X. This is above the broader industry average of 13.79X.
The Zacks Consensus Estimate for ENB’s 2025 earnings hasn’t seen any revisions over the past 30 days.
Enbridge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.