- Canadian energy stock Enbridge (TSX:ENB) raised its full-year profit forecast but reported lower-than-expected profits in Q2 2024
- The pipeline operator recast its 2024 financial guidance, adjusting its EBITDA to between C$17.7 billion to C$18.3 billion (previously C$16.6 billion to C$17.2 billion)
- However, its adjusted earnings for the quarter were C$1.2 billion or $0.58 per common share, compared with C$1.4 billion ($0.68 per common share) in Q2 2023.
- Enbridge Inc. stock opened trading at C$51.75 per share
Canadian energy stock Enbridge (TSX:ENB) raised its full-year profit forecast but reported lower-than-expected profits in Q2 2024.
The pipeline operator recast its 2024 financial guidance, adjusting its earnings before interest, taxes, depreciation and amortization (EBITDA) to be between C$17.7 billion to C$18.3 billion (previously C$16.6 billion to C$17.2 billion). It also maintained its distributable cash flow (DCF) per share guidance range of C$5.40 to C$5.80.
“Customer demand and operational reliability of our assets helped generate record second quarter EBITDA,” Enbridge’s president and CEO, Greg Ebel, said in a media release. “Looking forward, disciplined capital allocation remains a key area of focus. Positive credit rating agency actions during the quarter reinforces our long-held view that our balance sheet is strong. Our leverage is well within our target range and provides flexibility to fully fund our C$24 billion secured capital backlog. A well-supported dividend and visible growth is expected to deliver low double digit annual shareholder returns for many years to come, which positions us as a first-choice investment opportunity.”
The company reaffirmed its 2023 to 2026, near-term growth outlook of 7-9 per cent for adjusted EBITDA growth, 4-6 per cent for adjusted earnings per share (EPS) growth and approximately 3 per cent for DCF per share growth.
However, Enbridge’s adjusted earnings for the quarter were C$1.2 billion or $0.58 per common share, compared with C$1.4 billion ($0.68 per common share) in Q2 2023. Generally accepted accounting principles (GAAP) earnings for Q2 came in at C$1.8 billion or $0.86 per common share, compared with GAAP earnings of C$1.8 billion or $0.91 per common share in last year’s Q2.
Enbridge has completed multiple transactions this year, including its acquisition of U.S. utility Questar Gas Co. and Wexpro from Dominion Energy Inc. Questar provides gas to approximately 1.2 million customers in Utah, Southern Wyoming and Southeastern Idaho. Enbridge also approved a 120,000 barrels per day (bpd) expansion of its Gray Oak pipeline in the Permian Basin and announced significant progress in integrating Enbridge Gas Ohio and Enbridge Gas Utah.
Calgary-based Enbridge is a pipeline operator that supplies millions of customers with North American natural gas, oil and renewable power networks, while growing its European offshore wind portfolio and advancing new technologies in hydrogen, renewable natural gas, and carbon capture and storage.
Enbridge Inc. stock (TSX:ENB) opened trading 0.59 per cent lower at C$51.75 per share, but its share price has risen 8.30 per cent since the year began.
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