Enbridge Inc. (ENB) Positioned for Growth with $26B Secured Backlog

Enbridge Inc. (TSE: ENB) has reported its financial results for the fourth quarter of 2024, showcasing a robust performance across its business segments. The company achieved full-year GAAP earnings of $5.1 billion or $2.34 per common share, a decrease from the previous year’s $5.8 billion or $2.84 per share.

However, adjusted earnings rose to $6.0 billion or $2.80 per share, reflecting an increase from $5.7 billion or $2.79 per share in 2023. Enbridge’s adjusted EBITDA for the year reached $18.6 billion, marking a 13% increase compared to $16.5 billion in 2023. The company’s cash flow from operations was $12.6 billion, down from $14.2 billion in the previous year, but distributable cash flow (DCF) increased by 6% to $12.0 billion.

This consistent performance underscores the company’s ability to meet its financial guidance for the 19th consecutive year. Enbridge’s CEO, Greg Ebel, highlighted the successful completion of a $19 billion acquisition of three U.S. gas utilities, contributing to a 37% total annual return for investors.

The company’s operational efficiency was further demonstrated by record Mainline volumes and significant contributions from its U.S. Gulf Coast systems. Enbridge’s strategic investments and expansions, including new projects like the Tennessee Ridgeline and acquisitions in the Permian, have bolstered its growth trajectory.

Enbridge Beats EPS Expectations with Adj. EPS of $0.75

Enbridge’s fourth-quarter performance was closely aligned with market expectations, though it faced some challenges. The company’s GAAP earnings per share (EPS) for the quarter were $0.23, falling short of the expected $0.739, while adjusted EPS was $0.75, exceeding the previous year’s $0.64. The company’s revenue for the quarter was not explicitly stated in the documents, but the annual figures indicate a strong financial position.

Despite the lower GAAP earnings, Enbridge’s adjusted EBITDA for the quarter increased by $1.0 billion compared to the same period in 2023. This growth was driven by contributions from recent acquisitions, improved Mainline system tolls, and favorable contracting conditions. The company also benefited from higher distribution charges and increased customer demand at Enbridge Gas Ontario.

Enbridge’s ability to translate its U.S. dollar earnings at a higher average exchange rate in 2024 contributed positively to its financial results. However, the company faced challenges such as lower Mainline throughput and reduced uncommitted volumes on the Flanagan South Pipeline. These factors, along with higher financing costs and depreciation expenses, impacted the company’s overall earnings.

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Enbridge Reaffirms 2025 Financial Guidance, Projecting Adj. EBITDA Between $19.4B and $20B

Enbridge has reaffirmed its 2025 financial guidance, projecting adjusted EBITDA between $19.4 billion and $20.0 billion and DCF per share between $5.50 and $5.90. The company expects to achieve significant growth in 2025, driven by contributions from recent acquisitions and new projects.

The company announced a 3.0% increase in its 2025 quarterly dividend to $0.9425 per share, marking the 30th consecutive annual increase. This move reflects Enbridge’s commitment to delivering stable returns to shareholders. The company also maintains its near-term growth outlook of 7-9% for adjusted EBITDA growth and 4-6% for adjusted EPS growth.

Enbridge’s strategic focus on expanding its pipeline network and investing in renewable energy projects positions it well for future growth. The company’s secured growth backlog, now at approximately $26 billion, is underpinned by commercial frameworks that align with its low-risk business model. Enbridge plans to finance its growth program through an equity self-funding model, ensuring financial stability and flexibility.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing. All figures in Canadian dollars.