Canada to eliminate certain climate regulations to support Alberta-to-Pacific oil pipeline expansion.
Written by Emily J. Thompson, Senior Investment Analyst
Source: SeekingAlpha
Agreement on Climate Rules: Canada's Prime Minister Carney and Alberta's Premier Smith signed an agreement to roll back climate regulations to promote energy investment, facilitating a new oil pipeline from Alberta to the west coast.
Economic Impact and Internal Tensions: Carney highlighted that U.S. tariffs could cost Canada $50 billion, making energy projects essential for growth, while the deal has caused dissent within his government, leading to the resignation of environment minister Steven Guilbeault.
Opposition to Pipeline Project: Indigenous groups in British Columbia and Premier Eby oppose the pipeline, asserting that it will not proceed and that existing legislation, including the Oil Tanker Moratorium Act, should remain intact.
Pipeline Capacity and Market Outlook: The Trans Mountain pipeline has been operating at nearly full capacity, with analysts suggesting that new pipeline projects may not advance due to opposition from the B.C. government and First Nations.
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Analyst Views on ENB
Wall Street analysts forecast ENB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ENB is 49.75 USD with a low forecast of 44.63 USD and a high forecast of 51.83 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
5 Buy
6 Hold
0 Sell
Moderate Buy
Current: 49.240
Low
44.63
Averages
49.75
High
51.83
Current: 49.240
Low
44.63
Averages
49.75
High
51.83
About ENB
Enbridge Inc. is an energy transportation and distribution company. The Company's segments include Liquids Pipelines, Gas Transmission, Gas Distribution and Storage, and Renewable Power Generation. Liquids Pipelines consists of pipelines and terminals in Canada and United States that transport and export various grades of crude oil and other liquid hydrocarbons, including the Mainline System, Regional Oil Sands System, Gulf Coast and Mid-Continent, and Other. Gas Transmission consists of its investments in natural gas pipelines and gathering and processing facilities in Canada and United States, including United States Gas Transmission, Canadian Gas Transmission, United States Midstream, and Other. Gas Distribution and Storage consists of its rate-regulated natural gas utility operations in Canada and United States. Renewable Power Generation consists primarily of investments in wind and solar assets, as well as equity interests in geothermal power and power transmission assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Enbridge: A Stable High Dividend Investment Choice
- Dividend Stability: Enbridge has paid and raised its dividend for 28 consecutive years, currently offering a 5.6% yield, demonstrating the company's long-term financial stability and attractiveness to investors.
- Financial Health: The company maintains a dividend payout ratio of 60% to 70%, ensuring protection of dividends during economic fluctuations, which enhances investor confidence.
- Growing Energy Demand: Global energy consumption is expected to increase by 8% annually through 2040, positioning Enbridge's pipeline business to benefit from this trend and ensuring stable revenue sources.
- Diversified Investments: In addition to traditional fossil fuels, Enbridge is expanding its portfolio in renewable energy projects, enhancing its competitiveness and adaptability in the future energy market.
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Enbridge's Sustainable Dividend Growth Outlook
- Stable Dividend Growth: Enbridge has raised its dividend for 28 consecutive years, maintaining a payout ratio of 60% to 70%, which protects the dividend during economic downturns and boosts investor confidence.
- Strong Energy Demand: Global energy consumption is expected to grow by 8% annually through 2040, and Enbridge's operations in resource-rich Canadian oil sands will benefit from this trend, driving long-term growth for the company.
- Diversified Portfolio: In addition to traditional oil and gas pipelines, Enbridge is expanding its portfolio of renewable energy projects, enhancing its competitiveness in the future energy market and ensuring its critical role in the energy transition.
- Robust Business Model: Enbridge's pipeline and utility businesses are highly regulated and profit based on consumption volumes, ensuring stability amid economic uncertainties and providing shareholders with a consistent stream of passive income.
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