Key Morningstar Metrics for Enbridge
- Fair Value Estimate: C$56.00
- Morningstar Rating: ★★★
- Morningstar Economic Moat Rating: Narrow
- Morningstar Uncertainty Rating: Medium
What We Thought of Enbridge’s Earnings
Enbridge ENB reported C$18.6 billion of adjusted EBITDA in 2024, up from C$16.5 billion in 2023 and in line with our full-year expectations.
Why it matters: Acquisitions, capital investments, and higher volumes boosted results in 2024. Partially offsetting growth was C$3 billion of asset recycling.
- Management expects USD 19.4 billion-USD 20.0 billion in adjusted EBITDA in 2025. Our forecast is at the high end of the range.
- A key part of the growth is a full year of contributions from the acquired gas utilities and additional tuck-in acquisitions.
The bottom line: We are reaffirming our fair value estimate of C$56 per share, and our narrow moat rating is unchanged.
- Enbridge trades at a 6% premium to our fair value estimate as of Feb. 14, after climbing 29% during the past 12 months.
- Management raised the distribution by 3% to $3.77 per share, the 30th consecutive annual distribution increase. We expect similar growth through 2028.
Long view: Management reaffirmed its 7%-9% annual adjusted EBITDA growth target for 2023-26. We expect annual adjusted EBITDA growth to slow to 5% from 2026-28, absent additional acquisitions.
- We expect additional investments nearing C$8 billion annually across the liquids pipeline, gas transmission, gas distribution, and renewables segments to support our growth estimate.
- We expect Enbridge to be at the low end of management’s 4.5-5.0 debt/EBITDA target.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.