Latest news with #ENB
Business Insider
6 days ago
- Business
- Business Insider
Meta's (META) Texas Solar Project Gets $900 Million Investment from Enbridge
Canadian energy infrastructure company Enbridge (ENB) is investing $900 million in a 600-megawatt solar project in Texas that's being led by technology giant Meta Platforms (META). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Calgary-based Enbridge says it is making the investment as demand for clean energy from technology companies drives the need for renewable sources of power. Meta has signed a long-term contract to purchase 100% of the project's renewable energy to help power its data center operations. Meta is one of many mega-cap technology firms that is investing heavily in renewable energy to power data centers and artificial intelligence (AI) models and applications. The 'Clear Fork' solar energy project, which is located near San Antonio, Texas, is expected to become operational by 2027. Rising Demand In a news release announcing the investment, Enbridge said: 'Clear Fork demonstrates the growing demand for renewable power across North America from blue-chip companies who are involved in technology and data center operations.' Construction on Clear Fork is underway, and Enbridge expects the project to be accretive to its cash flow and earnings once it comes online in 2027. ENB stock has gained 9% this year, while META stock has risen 21% so far in 2025. Is META Stock a Buy? average META price target of $746.07 implies 5.53% upside from current levels.
Yahoo
19-07-2025
- Business
- Yahoo
3 No-Brainer Energy Stocks to Buy Right Now for Less Than $200
Written by Rajiv Nanjapla at The Motley Fool Canada Rapid urbanization, the rise in industrial activities, the electrification of transportation, and the expansion of data centres resulting from increased use of artificial intelligence (AI) could continue to drive global energy demand in the years to come. Given the favourable environment, I am bullish on the following three energy stocks, which are currently trading below $200. Enbridge Enbridge (TSX:ENB) is one of the top energy stocks to have in your portfolio due to its regulated and low-risk assets, consistent dividend growth, and healthy growth prospects. The company operates a diversified asset base, generating cash flows from over 200 assets. Its regulated asset base and long-term contracts provide stability to its financials. Supported by these reliable cash flows, ENB stock has been paying dividends since 1955. Also, it has raised its dividends uninterruptedly since 1995 at an annualized rate of 9%. Its current dividend payout of $0.9425/share translates into a forward dividend yield of 6.1%. Moreover, Enbridge has identified $50 billion in growth opportunities spanning over the next five years. Meanwhile, the company plans to make capital investments of $9 billion to $10 billion annually to expand its asset base. Given its healthy liquidity position, the energy giant is well-positioned to fund its growth initiatives. Further, ENB stock maintains a sustainable payout ratio of 60–70% of its DCF (discounted cash flows). Additionally, considering its solid underlying business and healthy growth prospects, management expects to raise its dividend by 3% annually until 2026 and 5% thereafter. ENB trades at a reasonable NTM (next 12 months) price-to-sales multiple of 2.7, making it an attractive investment opportunity for investors. Canadian Natural Resources Another energy stock I am bullish on is Canadian Natural Resources (TSX:CNQ), a leading producer of crude oil and natural gas. The Calgary-based energy company operates large, low-risk, and high-value reserves that require lower capital reinvestments. Besides, its efficient and effective operations have led to lower breakeven oil prices, thereby driving its financials and cash flows. Supported by its healthy cash flows, the company has increased its dividends at a 21% CAGR (compound annual growth rate) over the past 25 years. It currently offers a healthy forward dividend yield of 5.5%. Further, CNQ plans to invest $6 billion this year, thereby strengthening its production capabilities. Amid its growth initiatives, the company's management predicts that its total production this year will come in between 1,510 and 1,555 barrels of oil equivalent per day (BOE/d). The midpoint of this guidance represents a 12.5% increase from the previous year. Notably, OPEC (the Organization of the Petroleum Exporting Countries) is predicting a rise in oil demand this quarter, which could support oil prices. Therefore, increased production and higher oil prices could drive CNQ's financial performance in the coming quarters, making it an ideal buy. Northland Power Northland Power (TSX:NPI), which develops, owns, and operates a diversified energy infrastructure, is my final pick. It has an economic interest in approximately 3.4 gigawatts of power-producing facilities. The company has outperformed the S&P/TSX Composite Index this year, with returns exceeding 33%. The improvement in broader equity markets and progress the company has made in developing some of its key projects appear to have made investors optimistic, driving its stock price higher. Meanwhile, the company sells most of the energy produced from its facilities through long-term contracts, which account for approximately 90% of its revenue. The weighted average life of these contracts stands at 15 years. Therefore, its financials are less susceptible to volatile market conditions. Further, the company has 2.2 gigawatts of projects under construction, which could support its financial growth in the years to come. The management expects its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) to grow at a 7–10% CAGR through 2027. Therefore, I expect Northland Power, which currently offers a healthy forward dividend yield of 5.2%, to continue paying dividends at a higher rate. Its valuation also looks attractive, with its NTM price-to-earnings multiple at 14.6. The post 3 No-Brainer Energy Stocks to Buy Right Now for Less Than $200 appeared first on The Motley Fool Canada. More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Enbridge. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
Yahoo
18-07-2025
- Business
- Yahoo
Why Enbridge Remains a Top Pick for Income-Focused Investors
Enbridge Inc. (NYSE:ENB) is included among the . A close-up of renewable energy turbines capturing the power of a windy sky. Enbridge Inc. (NYSE:ENB)'s main operations revolve around its extensive oil and natural gas pipeline system. The company earns steady cash flow by charging users fees to access its infrastructure, with revenues remaining stable regardless of fluctuations in commodity prices. In addition to its core pipeline business, Enbridge Inc. (NYSE:ENB) has expanded into regulated natural gas utilities and renewable energy through solar and wind projects. Throughout this growth, the company has maintained an investment-grade credit rating and has kept its dividend payouts within its target range of 60% to 70% of distributable cash flow. Enbridge Inc. (NYSE:ENB) generated strong cash in the first quarter of 2025. The company's operating cash flow came in at C$3.1 billion, and its distributable free cash flow was C$3.8 billion for the quarter. Currently, it offers a quarterly dividend of C$0.9425 per share and has a dividend yield of 5.97%, as of July 15. ENB is one of the best dividend Canadian stocks, as the company has raised its payouts for 30 years in a row. While we acknowledge the potential of ENB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None.
Globe and Mail
10-06-2025
- Business
- Globe and Mail
Why Enbridge's Low-Risk Customer Base is a Win for Shareholders
Enbridge Inc. ENB in its first-quarter 2025 update claimed that more than 95% of its customers have an investment-grade credit profile. This means that most of the companies it does business with have been given strong credit ratings by independent agencies like Moody's or S&P. This indicates how creditworthy their customers are, which in turn signifies clients with high credit ratings will probably never miss payments for the midstream services they are getting from ENB. Thus, it can be said that the customers' strong financial standing signifies stable and predictable income for Enbridge. This predictable cash flow is supporting ENB's stable business model. With most of the contracts being long-term, and the customers having a high credit profile, Enbridge's overall activities have lower vulnerability to the volatility in oil and natural gas prices and uncertainty in the energy business. The midstream energy giants' stability in business secures stable and sustainable returns for shareholders. Enbridge has already rewarded shareholders with three decades of consecutive dividend increases. In the coming years, ENB will likely continue to reward its shareholders with attractive dividend yields, backed by its stable business model. Currently, ENB's dividend yield of almost 6% is higher than the 5.2% yield of the composite stocks belonging to the industry. Do EPD & KMI Also Have a High-Credit-Profile Customer Base? Like ENB, both Kinder Morgan KMI and Enterprise Products Partners LP EPD have a stable business model and are midstream energy majors. Both KMI and EPD are paying higher dividend yields than the oil-energy sector. While KMI's current yield of 4.3% is higher than the sector's 4.1%, EPD rewards unitholders with a 6.8% yield. Most of the time, both Kinder Morgan and Enterprise Products have been rewarding investors with higher yields than the sector over the past several years. This reflects the midstream players' stable business model, likely backed by customers with a handsome credit profile. ENB's Price Performance, Valuation & Estimates Shares of Enbridge have gained 37.6% over the past year, outpacing the 34.9% rally of the composite stocks belonging to the industry. From a valuation standpoint, ENB trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 15.20X. This is above the broader industry average of 13.93X. The Zacks Consensus Estimate for ENB's 2025 earnings hasn't been revised over the past seven days. ENB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report Enbridge Inc (ENB): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report
Yahoo
10-06-2025
- Business
- Yahoo
Enbridge (ENB) Stock Slides as Market Rises: Facts to Know Before You Trade
Enbridge (ENB) closed at $45.82 in the latest trading session, marking a -1.5% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.09% for the day. The oil and natural gas transportation and power transmission company's stock has climbed by 0.91% in the past month, falling short of the Oils-Energy sector's gain of 5.47% and the S&P 500's gain of 7.21%. The investment community will be paying close attention to the earnings performance of Enbridge in its upcoming release. The company is forecasted to report an EPS of $0.42, showcasing no movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.97 billion, indicating an 8.3% increase compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates project earnings of $2.12 per share and a revenue of $37.6 billion, demonstrating changes of +6% and -3.54%, respectively, from the preceding year. It is also important to note the recent changes to analyst estimates for Enbridge. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.76% downward. Currently, Enbridge is carrying a Zacks Rank of #3 (Hold). Digging into valuation, Enbridge currently has a Forward P/E ratio of 21.91. This valuation marks a premium compared to its industry's average Forward P/E of 17.03. We can also see that ENB currently has a PEG ratio of 4.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Oil and Gas - Production and Pipelines industry was having an average PEG ratio of 2.57. The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 40% of all industries, numbering over 250. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enbridge Inc (ENB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
