Enbridge Q4 Earnings Beat Estimates; Reaffirms Outlook

Enbridge, Inc. (ENB) delivered solid fourth-quarter and full-year results and reaffirmed its 2022 financial outlook. Earnings came in above consensus estimates as the company delivered strong safety, operating, and financial results. ENB shares rose 1.75% to close at $43.60 on February 11. 

Enbridge is a Canadian energy company that transports crude and other liquid hydrocarbons. The company also specializes in renewable power generation. Enbridge’s earnings report for Q1 2022 is scheduled for May 12, 2022. 

Enbridge Earnings

Adjusted earnings in the fourth quarter increased by $244 million to $1.376 billion. Adjusted earnings per share landed at Cdn$0.68, better than consensus estimates of Cdn$0.56. Full-year adjusted earnings increased to $5.6 billion or $2.74 per common share, up from $4.9 billion or $2.42 per common share delivered in 2020.

Each of Enbridge’s business units posted solid results driven by a rebound in the global economy and strong customer demand. Consequently, the company invested $10 billion of growth capital into service, including the line 3 Replacement project, which is expected to generate significant cash flow growth this year. 

Enbridge has reaffirmed its 2022 financial guidance and expects EBITDA of between $15 billion and $15.6 billion and discounted cash flow (DCF) of between $5.20 and $5.50. Growth in 2022 should be driven by an increase in mainline volumes, expected to average 2.95 million barrels per day.

Enbridge has increased its quarterly dividend by 3% to $0.86 to be paid on March 1, 2022, to shareholders of record on February 15, 2022. Enbridge’s dividends have increased over the past two years leading to a dividend yield of 5.77%.

Stock Rating

Last week, Credit Suisse analyst Andrew Kuske reiterated a Hold rating on the stock with a $45.53 price target, implying 6.06% upside potential to current levels.

Consensus among analysts is a Moderate Buy based on 9 Buys and 5 Holds. The average Enbridge price target of $44.75 implies 4.24% upside potential to current levels.

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