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) reported fourth-quarter 2019 earnings per share of 46 cents, missing the Zacks Consensus Estimate of 50 cents and declining from the year-ago quarter’s profit of 49 cents. The underperformances were owing to lower contributions from Mainline System. This was partly compensated by higher distributed natural gas volumes.
Total revenues in the quarter increased 7% year over year to $9,359 million. However, the top line missed the Zacks Consensus Estimate of $9,528 million.
Distributable Cash Flow (DCF) & Dividend
In fourth-quarter 2019, the company reported DCF of C$2,051 million compared with C$1,863 million a year ago.
The company hiked the quarterly dividend by 9.8% to 81 Canadian cents per share. The raised dividend will likely be payable on Mar 1 to shareholders of record as on Feb 14.
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) amounted to C$1,720 million, down from C$1,728 million in the year-earlier quarter. Lower contributions from the Mainline System primarily led to the underperformance.
Gas Transmission and Midstream: The segment’s adjusted EBITDA totaled C$948 million, down from C$952 million in fourth-quarter 2018. Lower contributions from the Canadian gas transmission business caused the downside.
Gas Distribution and Storage: The unit generated adjusted profit of C$481 million compared with C$452 million in the prior-year quarter. A rise in distributed natural gas volume drove the outperformance.
Renewable Power Generation: The segment recorded adjusted earnings of C$119 million, up from C$98 million in the prior-year quarter. Hohe See Offshore Wind Project primarily contributed to the outperformance.
Energy Services: The segment generated adjusted loss of C$22 million against a profit of C$73 million in fourth-quarter 2018.
Balance Sheet
At the end of fourth-quarter 2019, the company reported total debt of C$64,963 million, and cash and cash equivalents of C$648 million. Its debt-to-capitalization ratio was 49.6%.
Guidance
For 2020, the company has reaffirmed its guidance for DCF per share at the band of C$4.50 to C$4.80. Enbridge also projects EBITDA for 2020 at C$13.7 billion.
Denbury Resources’ earnings per share estimate of 30 cents for 2020 has been unchanged over the past seven days.
Chevron’s bottom line for 2020 is expected to rise 12.8% year over year.
Hess’ bottom line for 2020 is likely to increase 93.7% year over year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Enbridge (ENB) Misses Q4 Earnings & Revenue Estimates
Enbridge Inc. (ENB - Free Report) reported fourth-quarter 2019 earnings per share of 46 cents, missing the Zacks Consensus Estimate of 50 cents and declining from the year-ago quarter’s profit of 49 cents. The underperformances were owing to lower contributions from Mainline System. This was partly compensated by higher distributed natural gas volumes.
Total revenues in the quarter increased 7% year over year to $9,359 million. However, the top line missed the Zacks Consensus Estimate of $9,528 million.
Distributable Cash Flow (DCF) & Dividend
In fourth-quarter 2019, the company reported DCF of C$2,051 million compared with C$1,863 million a year ago.
The company hiked the quarterly dividend by 9.8% to 81 Canadian cents per share. The raised dividend will likely be payable on Mar 1 to shareholders of record as on Feb 14.
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) amounted to C$1,720 million, down from C$1,728 million in the year-earlier quarter. Lower contributions from the Mainline System primarily led to the underperformance.
Gas Transmission and Midstream: The segment’s adjusted EBITDA totaled C$948 million, down from C$952 million in fourth-quarter 2018. Lower contributions from the Canadian gas transmission business caused the downside.
Gas Distribution and Storage: The unit generated adjusted profit of C$481 million compared with C$452 million in the prior-year quarter. A rise in distributed natural gas volume drove the outperformance.
Renewable Power Generation: The segment recorded adjusted earnings of C$119 million, up from C$98 million in the prior-year quarter. Hohe See Offshore Wind Project primarily contributed to the outperformance.
Energy Services: The segment generated adjusted loss of C$22 million against a profit of C$73 million in fourth-quarter 2018.
Balance Sheet
At the end of fourth-quarter 2019, the company reported total debt of C$64,963 million, and cash and cash equivalents of C$648 million. Its debt-to-capitalization ratio was 49.6%.
Guidance
For 2020, the company has reaffirmed its guidance for DCF per share at the band of C$4.50 to C$4.80. Enbridge also projects EBITDA for 2020 at C$13.7 billion.
Zacks Rank & Other Stocks to Consider
Enbridge currently carries a Zacks Rank #2 (Buy). Other prospective stocks in the energy sector include Denbury Resources Inc. , Chevron Corporation (CVX - Free Report) and Hess Corporation (HES - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Denbury Resources’ earnings per share estimate of 30 cents for 2020 has been unchanged over the past seven days.
Chevron’s bottom line for 2020 is expected to rise 12.8% year over year.
Hess’ bottom line for 2020 is likely to increase 93.7% year over year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>