Enbridge (TSE:ENB) (NYSE:ENB) is Canada’s leader when it comes to natural gas. That’s why issues of natural gas infrastructure would seem to be a major priority for it. However, a recent issue with home gas line connections isn’t bothering Enbridge at all, and investors aren’t balking either. In fact, Enbridge was up fractionally in Friday afternoon’s trading.
Government watchdog plans to require housing developers to buy new home gas line connections aren’t seen as a major problem, according to Enbridge’s CEO. In fact, the move shouldn’t mean more challenges to other parts of its network either.
Enbridge, at its recent investor day event, noted that there was already strong demand for its “integrated infrastructure super systems,” which it has recently supplemented by adding three different natural gas utilities in the United States to its roster. That’s allowed Enbridge to augment its operations, and now, it serves nearly four million homes and businesses just in Ontario.
Ramping Up Its Infrastructure Build
With that kind of customer base, it’s clear that Enbridge will need to ramp up its operations to meet the sheer demand. The good news on that front is that it’s doing just that. It recently noted that several Canadian pipelines will have their capacities topped out within the next two years or so.
In addition, it looks for oil production to rise over half a million barrels per day by 2030. A rising growth outlook and a retained dividend should also prove helpful for Enbridge investors, regardless of new gas line connectors.
Is Enbridge a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on ENB stock based on four Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 1.08% loss in its share price over the past year, the average ENB price target of C$49.77 per share implies 3.12% upside potential.
