Enbridge Justifies Further Upside Thanks To Continued Growth

Summary

  • Enbridge remains a 'buy,' due to solid growth prospects, robust demand for energy, and a strong management growth plan, despite recent underperformance, versus the S&P 500.
  • Recent financials show strong revenue and EBITDA growth, especially from Gas Distribution and Storage, boosted by acquisitions and rate increases.
  • Management forecasts continued EBITDA and cash flow growth through 2026, supported by $28 billion in secured capital projects and substantial investment capacity.
  • While leverage and valuation are average for the sector, Enbridge's growth orientation and stable fundamentals justify maintaining a positive outlook and 'buy' rating.
  • Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

Markham, Ontario, Canada - April 22, 2018: Sign of Enbridge Gas Distribution Inc in markham, Ontario. Enbridge Inc. is a Canadian multinational energy transportation company.

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Back in March of this year, one company that I decided to reaffirm as a ‘buy’ candidate was midstream/pipeline business Enbridge (NYSE:ENB) (TSX:ENB:CA). Even though I have never considered it to be a

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This article was written by

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Daniel is an avid and active professional investor.

He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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