Source: Enbridge.
  • Enbridge (TSX:ENB) forecasts higher 2024 core earnings on bets that higher demand will lift volumes transported across its network
  • The Calgary-based pipeline operator stated in a news release that it forecasts adjusted EBITDA to be in the range of C$16.6 billion to $17.2 billion and distributable cash flow (DCF) per share of C$5.40 to C$5.80
  • The energy company expects its 2024 base business EBITDA to grow by more than 4 per cent and its DCF to increase by roughly 3 per cent compared to the midpoint of its 2023 guidance
  • Enbridge Inc. stock last traded at C$46.37 per share

Enbridge (TSX:ENB) is forecasting higher 2024 core earnings on bets that higher demand will lift volumes transported across its network.

Expecting growth in its base business and in cash generation, the Calgary-based pipeline operator stated in a news release that it forecasts its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to be in the range of C$16.6 billion to $17.2 billion and distributable cash flow (DCF) per share of C$5.40 to C$5.80.

This excludes EBITDA and DCF contributions from the gas utilities acquisitions announced in September, which the company expects to close next year.

The energy company expects its 2024 base business EBITDA to grow by more than 4 per cent and its DCF to increase by roughly 3 per cent compared to the midpoint of its 2023 guidance.

Enbridge declared its 29th consecutive annual common share dividend increase, raising it by 3.1 per cent to $0.915 per quarter (C$3.66 annualized), effective March 1, 2024.

“Given that we expect to realize only partial year contributions from the acquisitions, we are issuing our guidance on the base business and excluding the impact of any contributions related to them,” the company’s CEO, Greg Ebel, said in a statement. “As indicated previously, we anticipate closing all three gas utility acquisitions by the end of 2024.”

EBITDA Guidance on base business

($ millions)

2024

Key Growth Drivers vs. 2023

Liquids Pipelines

~$9,300

Strong system utilization; partially offset by a lower Mainline toll

Gas Transmission & Midstream

~$4,700

• Morrow Renewables, Aitken Creek, Tres Palacios

• Venice Extension partial year contributions

• Lower O&A and favorable re-contracting

Gas Distribution & Storage

~$2,100

• Customer additions & rate rebasing

Renewable Power Generation

~$600

• Hohe See/Albatros; Fécamp & PGL in service

Energy Services

~$-


Eliminations & Other

~$200

• Impact of foreign exchange hedge program

Adjusted EBITDA

$16,600-$17,200


DCF Guidance on base business

($ millions)

2024

Adjusted EBITDA

$16,600-$17,200

Maintenance Capital

~$(1,000)

Financing Costs

~$(4,100)

Current Income Taxes

~$(750)

Distributions to Non-Controlling Interests

~$(350)

Cash Distributions in Excess of Equity Earnings

~$600

Other Non-Cash Adjustments

~$100

Distributable Cash Flow (DCF)

$11,000-$11,800

DCF/Share Guidance

$5.40-$5.80

Enbridge is an energy transportation and distribution company that operates through five business segments: liquids pipelines, gas transmission and midstream, gas distribution and storage, renewable power generation and energy services.

Enbridge Inc. stock last traded at C$46.37 per share and the stock is up more than 6 per cent this month.

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