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1. Company Snapshot

1.a. Company Description

Enbridge Inc.operates as an energy infrastructure company.The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services.


The Liquids Pipelines segment operates pipelines and related terminals to transport various grades of crude oil and other liquid hydrocarbons in Canada and the United States.The Gas Transmission and Midstream segment invests in natural gas pipelines, and gathering and processing facilities in Canada and the United States.The Gas Distribution and Storage segment is involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario, as well as natural gas distribution and energy transportation activities in Quebec.


The Renewable Power Generation segment operates power generating assets, such as wind, solar, geothermal, and waste heat recovery facilities; and transmission assets in North America and Europe.The Energy Services segment provides energy marketing services to refiners, producers, and other customers; and physical commodity marketing and logistical services in Canada and the United States.The company was formerly known as IPL Energy Inc.


and changed its name to Enbridge Inc.in October 1998.Enbridge Inc.


was founded in 1949 and is headquartered in Calgary, Canada.

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1.b. Last Insights on ENB

Enbridge Inc. recent performance was driven by strong Q4 earnings and revenue beats, with earnings and revenue surprises of 1.92% and 142.43%, respectively. The company's Adjusted EBITDA contributions across key business segments increased, driving higher revenues. Additionally, the Bank of Canada's decision to shift monetary policy to slightly stimulative has a positive impact on the company's operations. Furthermore, Enbridge's ability to increase revenues from the prior-year level indicates a growing business condition, supporting its recent performance.

1.c. Company Highlights

2. Enbridge's Q4 2025 Earnings: A Record-Breaking Year

Enbridge reported record financial results for Q4 2025, with adjusted EBITDA up $83 million year-over-year, driven by strong mainline volumes and lower power costs in Liquids, and contributions from the Matterhorn acquisition in Gas Transmission. The company's EPS came in at $0.87, beating analyst estimates of $0.772. The strong financial performance was a culmination of a successful year, with Enbridge achieving its 20th year of meeting or exceeding annual financial guidance and increasing its dividend for 31 consecutive years.

Publication Date: 07:50

📋 Highlights
  • Record Financial Performance: Exceeded 2025 EBITDA and DCF guidance with $83M YoY adjusted EBITDA growth driven by mainline volumes and Matterhorn acquisition.
  • Capital Allocation: $14B in sanctioned 2025 projects ($4B Liquids, $4B Gas Transmission) and $39B growth backlog through 2033, supporting 5% annual growth through 2030.
  • Debt Management: Maintained debt-to-EBITDA within 4.5-5x leverage range, enabling $6-7B annual organic growth projects alongside $4B foundational capital.
  • Gas Transmission Expansion: Targeting 50+ data center gas demand opportunities (10 Bcf/d potential) and exceeding corporate growth rates with Permian and Eiger expansions.
  • Return Profile: Achieved ~11% average return on capital for organic projects, with $10-20B FID pipeline over 24 months expected to deliver 10-11% IRRs.

Financial Performance

The company's financial performance was driven by its diversified asset base, with the mainline transporting 3.1 million barrels per day on average. Enbridge's debt-to-EBITDA remains within its 4.5 to 5x leverage range, providing a stable foundation for future growth. The company's return on capital employed has improved, with an average return of approximately 11% across all organic projects.

Growth Prospects

Enbridge is well-positioned for future growth, with a $39 billion backlog extending through 2033, and a focus on accretive brownfield projects supported by strong energy fundamentals. The company expects to reach FID on $10 billion to $20 billion of growth projects over the next 24 months, driven by its diversified portfolio of projects across its core business units. As Pat Murray, Enbridge's CFO, noted, "every dollar raised in EBITDA creates $4 to $5 in debt capacity," providing a strong foundation for future growth.

Valuation

Enbridge's current valuation metrics suggest a stable outlook, with a P/E Ratio of 26.52, P/B Ratio of 3.41, and Dividend Yield of 5.14%. The company's EV/EBITDA ratio is 12.46, indicating a reasonable valuation relative to its earnings. With a ROE of 9.78% and ROIC of 5.87%, Enbridge is generating strong returns on its investments.

Segment Updates

The company's Liquids segment performed strongly, with the mainline apportioned for most of 2025. The Gas Transmission segment is expected to benefit from growing demand for natural gas, driven by power demand and data centers. Enbridge's power business is also expected to contribute to growth, with over 2 gigawatts of safe-harbored opportunities in the solar, wind, and battery space.

Outlook

Enbridge is confident in its ability to improve returns through optimizing base assets and investing in high-quality projects. The company expects to achieve 5% growth through the end of the decade, supported by its $39 billion of secured growth capital. With a strong balance sheet and a disciplined capital allocation approach, Enbridge is well-positioned to drive consistent long-term shareholder value.

3. NewsRoom

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Enbridge reports record 2025 earnings, reaffirms 2026 guidance

Feb -13

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Enterprise Products Stock Looks Cheap Now: A Smart Entry Point?

Feb -13

Source: zacks.com

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TSX up Over 540 Points at Midday With Most Sectors Higher

Feb -13

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Enbridge, TC Energy Investing in Projects to Tap Rising Energy Demand

Feb -13

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Enbridge Q4 Earnings Call Highlights

Feb -13

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Enbridge Maintained at Neutral at TPH Following Fourth-Quarter Results; Price Target Kept at C$71.00

Feb -13

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Sector Update: Energy Stock Lean Lower Premarket Friday

Feb -13

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Enbridge (ENB) Q4 Earnings and Revenues Top Estimates

Feb -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.50%)

6. Segments

Liquids Pipelines

Expected Growth: 3.2%

The growth is slightly lower than the global hypothesis due to the mature nature of the business and potential regulatory challenges. However, the segment is expected to benefit from increased demand for crude oil transportation.

Gas Distribution and Storage

Expected Growth: 2.9%

The growth is lower than the global hypothesis due to the relatively stable nature of the distribution business and potential regulatory constraints. However, the segment is expected to benefit from increased demand for natural gas.

Gas Transmission

Expected Growth: 3.8%

The growth is higher than the global hypothesis due to the increasing demand for natural gas and the potential for new pipeline projects. The segment is expected to benefit from the growing need for natural gas transportation infrastructure.

Eliminations and Other

Expected Growth: 0.0%

The growth is not applicable to this segment as it is not a core operating segment. The segment's activities are primarily related to corporate functions and eliminations, which are not expected to grow in the same manner as the operating segments.

Renewable Power Generation

Expected Growth: 4.5%

The growth is higher than the global hypothesis due to the increasing demand for renewable energy and the potential for new projects. The segment is expected to benefit from government policies and incentives supporting the development of renewable energy.

7. Detailed Products

Crude Oil Transportation

Enbridge transports crude oil from production areas to refineries and other destinations through its extensive pipeline network.

Natural Gas Transportation

Enbridge transports natural gas from production areas to markets across North America through its pipeline network.

Liquids Pipelines

Enbridge transports various liquids such as crude oil, natural gas liquids, and refined products through its pipeline network.

Gas Distribution

Enbridge distributes natural gas to residential, commercial, and industrial customers through its gas distribution network.

Renewable Energy

Enbridge invests in and operates renewable energy projects such as wind farms and solar parks.

Energy Services

Enbridge provides energy services such as energy marketing, logistics, and storage.

8. Enbridge Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Enbridge Inc. operates in the energy transportation and distribution industry, which has few substitutes. However, the increasing adoption of renewable energy sources and energy storage technologies could pose a threat to the company's operations.

Bargaining Power Of Customers

Enbridge Inc. has a diverse customer base, including utilities, refineries, and other industrial customers. However, the company's customers do not have significant bargaining power due to the lack of alternative suppliers.

Bargaining Power Of Suppliers

Enbridge Inc. relies on a few large suppliers for its pipeline materials and services. While the company has some bargaining power due to its large scale of operations, suppliers may still have some negotiating power.

Threat Of New Entrants

The energy transportation and distribution industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with Enbridge Inc.

Intensity Of Rivalry

The energy transportation and distribution industry is highly competitive, with several large players competing for market share. Enbridge Inc. faces intense competition from companies such as TransCanada Corporation and Kinder Morgan.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.92%
Debt Cost 6.18%
Equity Weight 43.08%
Equity Cost 8.36%
WACC 7.12%
Leverage 132.13%

11. Quality Control: Enbridge Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Cheniere Energy Partners

A-Score: 7.1/10

Value: 7.2

Growth: 6.8

Quality: 7.1

Yield: 10.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

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Enterprise Products Partners

A-Score: 7.0/10

Value: 5.8

Growth: 5.1

Quality: 6.4

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Enbridge

A-Score: 6.7/10

Value: 4.3

Growth: 3.8

Quality: 4.1

Yield: 10.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Energy Transfer

A-Score: 6.4/10

Value: 7.3

Growth: 3.6

Quality: 3.9

Yield: 10.0

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Kinder Morgan

A-Score: 6.2/10

Value: 3.9

Growth: 3.6

Quality: 5.3

Yield: 9.0

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
ONEOK

A-Score: 6.1/10

Value: 6.5

Growth: 5.2

Quality: 5.2

Yield: 10.0

Momentum: 1.0

Volatility: 8.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

73.3$

Current Price

73.3$

Potential

-0.00%

Expected Cash-Flows