Enbridge: Oops, They Did It Again

Fluidsdoc
2023-10-26

Summary

  • Enbridge's $14 billion acquisition has caused investors to abandon the stock, leading to a yield of over 8%.
  • The gas market has experienced a solid gain, and if maintained, it could lead to enhanced profitability in the industry.
  • Enbridge's move into the regulated utility space increases their utility base rate business and diversifies the company.
  • ENB stock is a buy at current levels.

jcamilobernal/iStock Editorial via Getty Images

Introduction

There's nothing like investing in diversifying assets to crash the price of a pipeline stock. The ink wasn't dry on my last article... hardly, before Enbridge (NYSE:ENB) management went and "Did itYou can see the big (red-trust me it's red) spike in trading on the 6th of September.

ENB price chart (Seeking Alpha)

EIA Gas Storage Chart (EIA)

EIA LNG capacity (EIA)

The lure of easy money

On to Enbridge

ENB Asset acquisition slide (ENB)

ENB financing plan (ENB)

Several positive strategic benefits - notably the big pivot to perpetual utility assets - but the accretion is not expected to be meaningful, at least initially.

But...wait, there's more

ENB Low risk capital program (ENB)

Risks

Your takeaway

ENB 10-year Div history (Seeking Alpha)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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