Investing

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

  • Last Updated:
  • Oct 30th, 2020 7:18 pm
Deal Addict
Aug 17, 2008
4323 posts
3466 upvotes
I put in a $42.00 bid on Monday for a rounding <to round up my ENF converted> odd lot <holding>. It was filled yesterday. I forgot about it and just noticed this morning.

Update: 8K etc filed with SEC on Mar 9 for a virtual Shareholders meeting. Docs here.
Deal Addict
Jan 18, 2014
1460 posts
477 upvotes
Rouyn-Noranda
MrMom wrote: I put in a $42.00 bid on Monday for a rounding <to round up my ENF converted> odd lot <holding>. It was filled yesterday. I forgot about it and just noticed this morning.

Update: 8K etc filed with SEC on Mar 9 for a virtual Shareholders meeting. Docs here.
Do you know what it was trading at when your order was filled?
Deal Addict
Aug 17, 2008
4323 posts
3466 upvotes
John47 wrote: Do you know what it was trading at when your order was filled?
I didn't know I was filled until the next morning. Presumably $42. I don't understand your question otherwise. 11:19am was the fill time if you want to look on a chart for yourself.
Deal Addict
Nov 21, 2014
1243 posts
1344 upvotes
Atlantic
Any thoughts on other pipeline companies - IPL, Pembina, Keyera and their counter party risk?

Looking at some presentation slides:
Keyera - 69% of counter parties are investment grade/secured.
IPL - Approximately 97% of EBITDA underpinned by investment grade counterparties. At least some of the pictures are logos of companies either which are super majors or are solid Canadian oil companies.
Pembina - Only talk about 60 day credit exposure.

All of them say that for non-investment grade counterparties - they vet such customers and require parental guarantee, letter of credit, pre-payment, cash deposit etc.
Key.jpg
IPL.jpg
Pembina.jpg
Deal Addict
Feb 26, 2017
1639 posts
1679 upvotes
EasyCompany251 wrote: Any thoughts on other pipeline companies - IPL, Pembina, Keyera and their counter party risk?

Looking at some presentation slides:
Keyera - 69% of counter parties are investment grade/secured.
IPL - Approximately 97% of EBITDA underpinned by investment grade counterparties. At least some of the pictures are logos of companies either which are super majors or are solid Canadian oil companies.
Pembina - Only talk about 60 day credit exposure.

All of them say that for non-investment grade counterparties - they vet such customers and require parental guarantee, letter of credit, pre-payment, cash deposit etc.

Key.jpg

IPL.jpg

Pembina.jpg
From looking at the slide for KEY the risk is gathering and processing. There using revenue on their slide but should probably use Distributable cash flow as that's how they measure their performance. I'd be interested in what % of DCF is from gathering and processing.
Deal Addict
Feb 26, 2017
1639 posts
1679 upvotes
I thought others might find this TD Analyst Report on ENB useful. ENB provided an update on its business today.
Event
On March 17, 2020, Enbridge Inc. (ENB) provided an update on its business,
including financial strength and counterparty risk, as well as additional supplemental
information.
Impact: SLIGHTLY POSITIVE
■ Business Resilience: ENB highlighted its performance through commodity
cycles, with overall adjusted EBITDA posting y/y gains during the previous
downturn in commodity prices over 2015-2016 (Exhibit 1). With a well diversified
business model across liquids and gas pipelines, ENB should be in a
better position to absorb commodity price collapses in comparison to more
geographically concentrated peers, in our view.
■ Counterparty Profile: ENB provided an update on its counterparty profile, noting
that 95% of its total counterparties are investment grade (IG) or equivalent. On
a segmented basis, 97% of liquids pipelines, 91% of gas transmission are IG. In
addition, 98% of its EBITDA is underpinned by cost of service, contracted, or CTS
arrangements.
■ Balance Sheet: ENB ended 2019 on the low end of its Debt/EBITDA target
range of 4.5x-5.0x, and is projecting to have approximately $8.5 billion of excess
liquidity in 2020. The company's relatively modest $11 billion capital program is
expected to be funded through debt capacity and free cash flow, without the need
for common equity issuances.
■ Our Take: We believe that ENB's weight to oil sands should be a benefit in
depressed commodity cycles, as the relatively more stable nature of the business
lends itself to withstanding commodity downcycles. In addition, ENB's self-funded
financing plan and contracted, stable business appears to be more utility-like
in nature than more midstream-weighted peers, which generally perform well in
low-interest rate environments. While hurdles around contracting the Mainline
and constructing L3R continue on, we view ENB's balance sheet strength and
diversified business to be advantages in an uncertain industry landscape.
Deal Addict
Aug 17, 2008
4323 posts
3466 upvotes
Anyone else see the humour in this tweet?




Update: The set up
20 Apr 09:30 ET / 13:30 GMT

BUSINESS / ECONOMICS

GLOBAL-OIL/ENBRIDGE INC

In a milestone for Canada, Enbridge oil Mainline may not ration space

Enbridge Inc is scheduled on Monday to announce whether it needs to ration space on its oil Mainline, North America’s biggest crude pipeline system. The Mainline is usually so oversubscribed by oil producers and refiners that the company turns away many barrels in its monthly apportionment program, but due to curtailments and plunging demand, it may have more space than crude in May.
Jr. Member
Dec 13, 2015
136 posts
37 upvotes
Red Deer, AB
Good buy right now?
really liking their dividend, and their diversification beyond just oil
Deal Addict
Feb 26, 2017
1639 posts
1679 upvotes
Interesting Enbridge article above moving towards investing more in natural gas and renewable projects than oil related projects. Their main investment for the next two years is still line 3 but I'm thinking this will be the last major oil pipeline for them for a while. I think this is probably a good thing for the long term returns and growth/safety of their dividend. They've already added a lot more Natural gas and utilities to to their mix after the acquisition of Spectra.

https://business.financialpost.com/comm ... ble-energy
Al Monaco, chief executive officer of the Calgary-based company, said his company is taking a “gradual” approach to energy transition. While it will continue to invest in oil pipelines, the company will also invest increasingly larger proportions of its capital to natural gas and renewable energy projects as consumers around the world demand lower-emitting forms of energy.
Deal Addict
Nov 9, 2013
3912 posts
3598 upvotes
Edmonton, AB
Chance7652 wrote: Interesting Enbridge article above moving towards investing more in natural gas and renewable projects than oil related projects. Their main investment for the next two years is still line 3 but I'm thinking this will be the last major oil pipeline for them for a while. I think this is probably a good thing for the long term returns and growth/safety of their dividend. They've already added a lot more Natural gas and utilities to to their mix after the acquisition of Spectra.

https://business.financialpost.com/comm ... ble-energy
ENB announces solar energy to transport natural gas project in New Jersey - https://www.enbridge.com/stories/2020/s ... atural-gas
Keep calm and go long
Deal Addict
Feb 26, 2017
1639 posts
1679 upvotes
treva84 wrote: ENB announces solar energy to transport natural gas project in New Jersey - https://www.enbridge.com/stories/2020/s ... atural-gas
I like the moves they've been making. I think it will be a clear sign that ENB and other pipelines are undervalued if you start to see private equity starts buying North American midstream/pipeline assets again.

Its interesting that ENB didn't bounce when they announced the closed section of line 5 is reopening a couple days ago. I think the key thing is the dividend seems safe as it makes it a lot easier to hold on even when the stock price stays low.

This is the last midstream I own after selling KEY and IPL. Its looking like a good buy again at around 40. I've probably got to cut myself off with ENB already at 6% of my portfolio :).
Member
Jul 30, 2012
449 posts
445 upvotes
I have found ENB one of the easier stocks to pick bottoms (or close to) to build a position. I started in late 2015 and have never bought / added above $35 CAD which has worked out from a Capital appreciation & income POV.

The catalyst for my interest was the Spectra acquisition announcement and then I patiently waited as the stock absorbed the selling pressure on the acquisition metrics, additional roll-ups (ENF, etc).

My last add was on the March sell-off at $33.95 CAD

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