Enbridge (ENB) for Growth and Income

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dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Enbridge (ENB) for Growth and Income

Post by dan_s »

ENB has been near the top of my To Do List for several months. I am going to move it the top of the list in January. Why?...because it is a perfect fit for our High Yield Income Portfolio.

ENB closed on Friday, December 14 at $31.95 < way below its 52-week high of $41.21.
The current dividend yield is over 6.2% based on their Q3 dividend. < and dividends will be going up in 2019.
On Monday, December 10 ENB announced that the dividend will increase by 10% in 2019.
First Call's price target is $45.03.

Enbridge Completes 2018 Strategic And Financial Outlook; Reaffirms 10% Annual Growth Guidance Through 2020 And Announces 10% Dividend Increase For 2019
Read: https://finance.yahoo.com/news/enbridge ... 00291.html

Keith Kohl really likes it and I have a lot of respect for Keith. Below is cut from Keith's December newsletter ("The Energy Investor")

Enbridge is an energy infrastructure company that operates in both Canada and the
U.S. The company has five segments: liquids pipelines, gas transmission and midstream,
green power and transmission, and energy services.
Enbridge operates the world’s longest crude oil and liquids transportation system, with
17,018 miles of active pipeline that delivers an average of 2.8 million barrels of crude oil
each day through its Mainline and Express pipelines. It’s also Canada’s largest natural
gas distribution provider, with almost 3.7 million retail customers in Ontario, Quebec,
New Brunswick, and New York.

Recent News
Enbridge announced last week that it would be joining Norwegian gas system operator
Gassco in conducting a technical study to evaluate the suitability of a 350-megawatt
offshore wind project.
According to the press release, Enbridge developed the project to be an appropriate
power source for one of Norway’s largest gas processing plants in Nyhamna.
We don’t expect to hear the results until next spring.

Our Take
Our long-term outlook for Enbridge remains unchanged.
The stock is delivering a rock-solid dividend that’s yielding approximately 6% annually
at current prices.
Even the sudden drop in oil prices won’t shake things much, especially given that
Enbridge is one of the largest infrastructure players in North America today.

There’s another potentially bullish factor to consider, too…
When the Democrats took back the House of Representatives last month, the markets
braced for two more years of a Congress in gridlock.

But there’s one issue that transcends politics and one that both sides of the aisle can
come together on.
I’m talking about aging infrastructure, and I’ve already heard the rumblings of Congress
taking up this critical issue.

How bad is it?
Let’s put it this way, the American Society of Civil Engineers (ASCE) graded America’s
infrastructure a D+ in 2017.
We’re talking about roads, dams, bridges, and yes… pipelines.
The 2.6 million miles of oil and gas pipelines that crisscross the U.S. are depended on by
66% of the lower 48 states for natural gas delivery — U.S. natural gas demand jumped by
24% between 2005 and 2015.
And Enbridge will inevitably be a part of this solution.

Keith's valuation: Enbridge Inc. (NYSE: ENB) is rated a buy under $60.
Dan Steffens
Energy Prospectus Group
dave_n
Posts: 92
Joined: Thu Aug 09, 2018 4:08 pm

Re: Enbridge (ENB) for Growth and Income

Post by dave_n »

Dan

Morningstar also posted a positive review yesterday. Here’s a link to review.

https://www.morningstar.com/articles/90 ... alued.html
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Enbridge (ENB) for Growth and Income

Post by dan_s »

Proof to me that this Bear Market is in total "Panic Mode" (overcome by FEAR of a global recession) is that super high quality midstream companies have also sold off. I have NEVER seen demand for midstream services this strong during my 40 years in the industry.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Enbridge (ENB) for Growth and Income

Post by dan_s »

November 7, 2018

New Enbridge line connects reliable, plentiful Texas supply with growing Mexican demand

It’s a story of peaks and valleys.

Mexico’s appetite for natural gas continues to peak. And the Valley Crossing Pipeline will help that trend continue.

On November 1st Enbridge’s Valley Crossing Pipeline—a 168-mile line running from Agua Dulce, Texas, to the Gulf of Mexico east of Brownsville—entered service, with the capacity to move up to 2.6 billion cubic feet a day (Bcf/d) of natural gas south of the border.

Valley Crossing will reinforce the Lone Star State’s status as a major provider of natural gas to Mexico, connecting its primary customer—the Comisión Federal de Electricidad (CFE), Mexico’s state-owned utility—to the Agua Dulce gas hub.

It will also help support Mexico’s growing electricity generation needs, as power companies like the CFE choose natural gas—a cleaner-burning fuel than fuel oil or diesel, and more economically viable via pipeline than imported LNG.

“Mexico imports much of its natural gas needs now—its total market is 8 Bcf a day, with about 5.5 Bcf a day coming from the U.S.—and a lot of that is from Texas,” notes Kurt Knight-Turcan, Enbridge’s business development lead for Valley Crossing.

Adds Bill Yardley, Enbridge Executive Vice President and President of the company’s Gas Transmission and Midstream unit: “Supply in Mexico continues to decline, but at the same time their demand continues to grow. And the U.S. has some of the most economical, plentiful and reliable natural gas supplies in the world.

“By building pipelines that directly connect to some of the main supply basins,” remarks Mr. Yardley, “the CFE is able to capitalize on that low-cost, reliable natural gas supply.”
Dan Steffens
Energy Prospectus Group
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