Enbridge sees higher earnings next year, hikes dividend

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Enbridge (NYSE:ENB) +1.5% pre-market after saying Wednesday it expects to generate strong business growth in 2023, forecasting full-year EBITDA of C$15.9B-C$16.5B, which reflects slightly less than 6% growth from the midpoint of its 2022 guidance range.

Enbridge (ENB) attributes the gain to contribution from $3.8B of assets to be placed into service this year, as well as strong expected utilization of assets across core businesses, embedded revenue escalators, and improved Energy Services results.

The company also expects higher distributable cash flow of C$5.25-C$5.65/share; it raised its annualized common share dividend by 3.2% to $3.55/share from $3.44.

For 2022, Enbridge (ENB) reaffirmed guidance for adjusted EBITDA in the top half of a C$15B-C$15.6B target range, with distributable cash flow at just above the midpoint of a C$5.20-C$5.50/share range.

Separately, the company named Pamela Carter as its new Board Chair effective January 1, coincident with the appointment of current Chair Greg Ebel as President and CEO on the same date.

Before joining the Enbridge (ENB) board in 2017, Carter was Indiana's attorney general and was president of the distribution business for Cummins Inc. during 2008-15.

Enbridge's (ENB) diversified energy infrastructure "has helped the company leverage the underlying energy market tailwinds, [but] investors need to be prepared for earnings normalization," JR Research writes in an analysis published recently on Seeking Alpha.