Enbridge Acquires Natural Gas Utilities to Enhance Diversification
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- High Yield Appeal: Enbridge offers a 5.9% dividend yield, more than five times the average yield of the S&P 500, attracting income-focused investors and demonstrating its stability and appeal in the energy sector.
- Diversified Business Structure: The majority of Enbridge's revenue comes from oil and natural gas pipelines, but it also has significant exposure to regulated natural gas utilities and a small stake in renewable energy assets, ensuring stable growth potential amid energy transitions.
- Strategic Acquisitions: Enbridge plans to acquire three natural gas utilities in 2023, with deals expected to close in 2024, which will enhance its exposure to natural gas and lay a solid foundation for future growth.
- Robust Business Model: As a midstream energy company, Enbridge's business model is relatively stable, relying on transportation volumes rather than commodity price fluctuations, allowing it to maintain profitability amid market volatility.
ENB
$47.45+Infinity%1D
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 49.58 USD with a low forecast of 47.03 USD and a high forecast of 52.02 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.
8 Analyst Rating
3 Buy
5 Hold
0 Sell
Moderate Buy
Current: 47.470
Low
47.03
Averages
49.58
High
52.02
Current: 47.470
Low
47.03
Averages
49.58
High
52.02
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.
