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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 Q3 2025 Earnings: Record EBITDA and Growth Momentum

Enbridge Inc.'s third-quarter 2025 adjusted EBITDA reached a record, driven by contributions from the full quarter of U.S. gas utilities and organic growth in the gas transmission business. The company's EPS came in at $0.4652, missing estimates of $0.518. The revenue growth was robust, supported by strong demand for Canadian crude, with mainline volumes reaching a record 3.1 million barrels per day. The company's debt-to-EBITDA ratio is 4.8x, within its leverage range of 4.5 to 5x.

Publication Date: Nov -08

📋 Highlights
  • Record Q3 Adjusted EBITDA:: Reached $19.4–$20 billion range, driven by full-quarter U.S. gas utilities and gas transmission growth.
  • New Capital Investments:: Added $3 billion in secured capital for projects like Southern Illinois Connector, Egan/Moss Bluff storage expansions, and Pelican CO2 hub.
  • Liquids Segment Volumes:: Mainline volumes hit 3.1 million barrels/day, a record, due to strong Canadian crude demand.
  • Gas Distribution Rate Increases:: North Carolina and Utah settlements raised allowed return on equity to 9.65% in NC, boosting cash flows.
  • Secured Capital and Growth Outlook:: $35 billion in secured capital targeting 5% growth through 2030, with debt-to-EBITDA at 4.8x within guidance range.

Segment Performance

The Liquids segment performed exceptionally, with mainline volumes driven by strong demand for Canadian crude. The company expects to reach the top of its performance range, ahead of initial expectations. In Gas Transmission, the company sanctioned over $3 billion of new projects, including the Canyon pipeline system expansion to support bp's Tiber development and the Eiger Express Pipeline in the Permian. The Gas Distribution segment saw positive rate settlements in North Carolina and Utah, with allowed return on equity increasing to 9.65% in North Carolina.

Growth Opportunities

Enbridge is pursuing various growth opportunities, including the Southern Illinois Connector project, the Pelican CO2 hub in Louisiana, and the expansion of its Aitken Creek storage. The company has $35 billion in secured capital, with a focus on brownfield and strategic projects supported by energy fundamentals. This capital will drive 5% growth through the end of the decade. Enbridge's gas distribution and storage segment is seeing an acceleration in commercial activity, driven by data centers, power generation, and LNG development.

Valuation and Outlook

With a P/E Ratio of 22.01 and an EV/EBITDA of 12.83, Enbridge's valuation reflects its stable growth profile. The company's dividend yield stands at 5.59%, attractive for income investors. Analysts estimate next year's revenue growth at -7.6%. Enbridge's growth rates are expected to be supported by its diverse set of opportunities over a 5- to 7-year timeline, including LNG export projects. The company's partnership with Oxy to develop the Pelican CO2 hub and its investment in low-carbon infrastructure offer attractive returns with long-term contracts and clear tax incentives.

Risk Management

Enbridge is actively managing its exposure to cost risks through prudency, alliance agreements with contractors, and stockpiling equipment. The company feels confident in its relationships with contractors and its ability to manage costs. The company's renewables portfolio, including solar, remains a strong area of focus, with customer demand for solar projects remaining high.

3. NewsRoom

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Enbridge (TSX:ENB): Is the Pipeline Giant Undervalued After a Steady Year-to-Date Climb?

Dec -04

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This Unstoppable 5.6%-Yielding Stock Extends Its Dividend Growth Streak to 31 Years in a Row

Dec -04

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Enbridge Maintained at Hold at TPH Following 2026 Guidance; Price Target at C$67.00

Dec -03

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Enbridge Hikes Dividend, Releases 2026 Financial Guidance

Dec -03

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Enbridge Announces 2026 Financial Guidance, Declares 3% Dividend Increase and Reaffirms Growth Outlook

Dec -03

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Enbridge Inc. Announces 3% Quarterly Dividend Increase for 2026

Dec -03

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These Underrated Companies Could Be "Training-Wheels" Stocks for Long-Term Wealth Builders

Nov -30

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RBC Says New Alberta-Canada Energy Deal Could Lift Canadian Energy Infrastructure Sector

Nov -28

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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

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Cheniere Energy Partners

A-Score: 7.5/10

Value: 7.2

Growth: 6.8

Quality: 7.1

Yield: 10.0

Momentum: 6.5

Volatility: 7.7

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Enterprise Products Partners

A-Score: 6.9/10

Value: 5.7

Growth: 5.0

Quality: 4.9

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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Energy Transfer

A-Score: 6.7/10

Value: 7.2

Growth: 3.6

Quality: 4.1

Yield: 10.0

Momentum: 6.0

Volatility: 9.3

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Enbridge

A-Score: 6.5/10

Value: 4.2

Growth: 3.7

Quality: 4.1

Yield: 9.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Kinder Morgan

A-Score: 6.4/10

Value: 4.0

Growth: 3.6

Quality: 5.2

Yield: 9.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

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ONEOK

A-Score: 6.0/10

Value: 5.5

Growth: 5.2

Quality: 4.8

Yield: 10.0

Momentum: 2.0

Volatility: 8.3

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

67.26$

Current Price

67.26$

Potential

-0.00%

Expected Cash-Flows