Investing

Is Enbridge Inc (ENB) stock a good time to buy now?

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  • Mar 26th, 2024 12:51 pm
Jr. Member
Dec 10, 2012
130 posts
14 upvotes
Ontario
Chance7652 wrote: Gas has a longer runway than oil as well.

I just see things as changing. Outside of the protest about tmx and the TC BC gas pipeline there is lots of pushback on the other North American Pipelines. I read an articles about California trying to phase out natural gas for heating homes. New York keeps holding up gas pipelines and now one of their utilities is not doing anymore natural gas hook ups for new construction. Michigan is fighting to close down line 5 before the replacement gets built and Line 3 is delayed by a couple years due to resistance from Minnesota.

All of ENB's assets have value. They maybe even have more value as its getting so hard to build anything. With their growth projects I think ENB is going to need to look at other things like their Ontario Utility and their Wind Power Assets (TC has Nuclear assets). I see it as a positive that ENB has about 50% of their revenue coming from outside from Canada. I'm long ENB and also KEY but don't want to own to much in the sector as I'm getting increasing pessimistic about Energy.
Thank you for you input. Certainly lot to think about. I have been very lucky with Hydro One for past 4 hours when I purchased it at IPO, pays a decent dividend. However, about 80% my portfolio on this one company. Its about time I diversify.
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Deal Addict
Sep 2, 2004
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FarmerHarv wrote: I’ve not looked into this at all, and am probably missing something obviously obvious, but what are people heating their homes with if it isn’t natural gas? Coal? Wood? Electricity?
Good question. I was going to ask the same thing. I could see electricity if it's all solar and wind power but the others don't really fit the sustainable angle.
Jr. Member
Dec 10, 2012
130 posts
14 upvotes
Ontario
Capt. wrote: Good question. I was going to ask the same thing. I could see electricity if it's all solar and wind power but the others don't really fit the sustainable angle.
Solar power is only good for few months of the year. However, I am really big on electricity because 100s of condos going up every year.
"“Your own Self-Realization is the greatest service you can render the world.”
― Ramana Maharshi.".
Deal Addict
Feb 26, 2017
2902 posts
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FarmerHarv wrote: I’ve not looked into this at all, and am probably missing something obviously obvious, but what are people heating their homes with if it isn’t natural gas? Coal? Wood? Electricity?
The alternative is electric and probably using heat pumps for homes (this would work better in warmer climates). The cost of Hydro in Ontario would be another major problem here...

Here is an article I was thinking of on electrification (Its more focused on renewable natural gas but covers a lot about electrification). I don't always agree with this author but he's well informed.

https://www.vox.com/energy-and-environm ... e-socalgas
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May 31, 2018
1207 posts
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SK
Chance7652 wrote: The alternative is electric and probably using heat pumps for homes (this would work better in warmer climates). The cost of Hydro in Ontario would be another major problem here...

Here is an article I was thinking of on electrification (Its more focused on renewable natural gas but covers a lot about electrification). I don't always agree with this author but he's well informed.

https://www.vox.com/energy-and-environm ... e-socalgas
Excellent article, and I do agree with RNG being less than worthwhile pursuing. I didn’t see where he stated how all of the massive increases in electricity demand were going to be met though. Building more nuclear in the face of those protests probably isn’t feasible, damming more rivers probably isn’t going to happen, so we’re left with burning fossil fuels in power plants instead of home furnaces. Doesn’t seem to change much in the end with regards to NG supply and demand, but I guess the optics are better if the gas is burned in anther state to provide the power in California.
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Feb 26, 2017
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FarmerHarv wrote: Excellent article, and I do agree with RNG being less than worthwhile pursuing. I didn’t see where he stated how all of the massive increases in electricity demand were going to be met though. Building more nuclear in the face of those protests probably isn’t feasible, damming more rivers probably isn’t going to happen, so we’re left with burning fossil fuels in power plants instead of home furnaces. Doesn’t seem to change much in the end with regards to NG supply and demand, but I guess the optics are better if the gas is burned in anther state to provide the power in California.
Canada actually has a lot of renewable generation between hydro and nuclear. Wind and solar are pretty inexpensive and but are still going to need NG/coal for peak demand right now as the generation is too variable. California is a bit extreme and they're utilities seems pretty poorly run (cough PG&E).

I'm thinking we will start to see more of a move to electrify heating though and I see this as a negative to ENB. My take is it going to take a while and a company like ENB can still do well. I'm personally have a NG furnace, fireplace, stove(s) and BBQ and would really hate to give that up. I'm long ENB thinking they will figure things out in a challenging industry.
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Mar 1, 2006
16862 posts
1303 upvotes
What do you think a good price is to get in on some ENB?
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Jr. Member
Dec 10, 2012
130 posts
14 upvotes
Ontario
JayTee1 wrote: What do you think a good price is to get in on some ENB?
Its a question, I have been asking myself. would be interesting to see what others have to say.
"“Your own Self-Realization is the greatest service you can render the world.”
― Ramana Maharshi.".
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Mar 22, 2010
4133 posts
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sadiya wrote: Its a question, I have been asking myself. would be interesting to see what others have to say.
My cost average is around 44.80 and thinking to add around 46-47 range. It's still bit high.
Deal Addict
Jul 14, 2013
1420 posts
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Getting cheap due to the virus, would buy more if I have the the funds.
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
Yeah I got funds ready to go. 6.8% yield looks thirsty!
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Aug 10, 2006
2324 posts
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this is my only stock i have no concerns about these past few weeks. just thinking now will oil price wars impact this stock?
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Oct 5, 2003
3922 posts
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wakka2u wrote: this is my only stock i have no concerns about these past few weeks. just thinking now will oil price wars impact this stock?
Hopefully someone smart knows. If this is down 20% tomorrow do I buy?
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
Justin wrote: Hopefully someone smart knows. If this is down 20% tomorrow do I buy?
If ENB is down 20% tomorrow load up the truck!
Deal Fanatic
Jul 7, 2004
6948 posts
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Sanyo wrote: If ENB is down 20% tomorrow load up the truck!
Might be stupid question, but no chance they go bankrupt?
Deal Addict
Jun 15, 2012
2837 posts
1011 upvotes
Saskatoon
baz5 wrote: Might be stupid question, but no chance they go bankrupt?
Nah, government is always there. Too big to fail, rule.
No need to type thank you; upvote=thanks.
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Deal Addict
Feb 26, 2017
2902 posts
4581 upvotes
baz5 wrote: Might be stupid question, but no chance they go bankrupt?
I don't see it. 98% of ENB revenue is fixed fee take or pay contracts. Their biggest revenue generator is the Canadian mainline which is 3/4 of Canada's exit capacity. Canada's current issue is that it doesn't have enough exit pipeline capacity.

The second slide is the relevant one.

Image
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Nov 23, 2008
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wakka2u wrote: this is my only stock i have no concerns about these past few weeks. just thinking now will oil price wars impact this stock?
i think you have an answer today...
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
The danger if oil falls too low will the oil company be able to hold up their promise to send the crude they contracted with ENB.. for now not a big deal its too early in the game, could be an issue eventually for CDN oil sands or US shale.
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Jun 15, 2012
2837 posts
1011 upvotes
Saskatoon
Chance7652 wrote: Here is a pretty negative article on pipelines. Basically the thesis is that pipelines are over reporting their dividend coverage by underestimating their maintenance capital. I don't agree with the conclusion but it will be interesting to see how higher yields affect some of the pipelines abilities to fund their growth.

https://seekingalpha.com/article/433098 ... 1583869560

I'm still trying to figure out if I should put more money into the sector. I'm planning on watching some basketball and reading some pipeline investor presentations tonight :).
No need to type thank you; upvote=thanks.
Buffett, investors are focusing “not on what an asset will produce but rather on what the next fellow will pay for it.”

“Because gold is honest money it is disliked by dishonest men.” – R. Paul

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