Enbridge (TSX:ENB) Stock Earnings: What to Watch on Friday

Can Enbridge (TSX:ENB)(NYSE:ENB) stock continue to grow amid all the turmoil the company experienced these last few months?

| More on:
Gas pipelines

Image source: Getty Images

Key points

  • Could pipeline disruptions hurt Enbridge (TSX:ENB)(NYSE:ENB) stock this week?
  • Investors should look for the future investments that Enbridge hopes to make for long-term cash.
  • Enbridge may raise its full-year guidance based on several strategic moves in the last few months.

Pipeline company Enbridge will announce its third-quarter earnings report on Friday, Nov. 5 on the TSX. The report comes as Enbridge stock soars near not just 52-week highs, but all-time highs once more. Amid oil and gas prices climbing, the company has its Line 3 pipeline up and running. But in the last few months, protestors in Michigan have put a wrench in expansion plants.

So, ahead of Enbridge stock’s earnings next week, let’s look at some key areas where Motley Fool investors should pay attention.

1. Earnings

Motley Fool investors can likely already guess that production and pipeline use is up for Enbridge stock. This comes from two major sources. The first, of course, is that Enbridge has Line 3 up and running, with full operation by the end of this year.

But beyond Line 3, Enbridge stock also announced the acquisition of the Ingleside Energy Center, the leading light crude export platform in North America on the United States Gulf Coast. It’s an investment that should come online “immediately,” with “about 90% contracted cash flows.” This adds even more long-term cash to the already well-supported pipeline company.

What’s not as clear is whether Enbridge stock can keep up with other pipeline companies and their partnerships, and if this translates to immediate growth for the company. Unfortunately, Enbridge has been the focus of a sea of protests.

Still, on average analysts expect Enbridge stock to report earnings per share of $0.75 for the quarter — an increase of 34% year over year.

2. Restructuring

Motley Fool investors are likely not alone when they ask to see what else Enbridge stock has planned in the future. And this comes down to focusing on renewable energy projects. Other pipeline companies created partnerships over the last year to bring down energy emissions, sure. But on the TSX today, it’s also important to shift so that these energy giants remain giants.

Enbridge stock has made these partnerships, most recently with Vanguard Renewables. The partnership creates a renewable natural gas (RNG) deal that will see a US$75 million project to build eight sites across the United States. This is where “organic waste will be transformed into carbon-neutral RNG” of “pipeline quality natural gas.”

“As a leader in energy transition, Enbridge has committed to achieving net-zero greenhouse gas emissions by 2050 and is excited to partner with industry leaders such as Vanguard Renewables who are developing new sources of clean energy and helping companies reduce their emissions,” said Bill Yardley, Enbridge’s executive vice president and president, Gas Transmission and Midstream.

3. Guidance

So, with these new projects and pipelines underway, will Enbridge stock update its guidance? During the last report, Enbridge reaffirmed its original full-year guidance. For 2021, the company believes it will reach an EBITDA range of between $13.9 billion and $14.3 billion. This would come to discounted cash flow (DCF) of between $4.70 and $5 per share.

Whether this is increased or reaffirmed is the question.

Enbridge stock, as mentioned, will report its third-quarter results before the markets open on Friday, Nov. 5.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe owns shares of ENBRIDGE INC. The Motley Fool owns shares of and recommends Enbridge.

More on Energy Stocks

Arrowings ascending on a chalkboard
Energy Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

Canadian Natural Resources stock is well set up to beat the TSX as it continues to generate strong cash flows…

Read more »

energy industry
Energy Stocks

2 TSX Energy Stocks to Buy Hand Over Fist Now

These two rallying TSX energy stocks can continue delivering robust returns to investors in the long term.

Read more »

green energy
Energy Stocks

1 Magnificent TSX Dividend Stock Down 37% to Buy and Hold Forever

This dividend stock has fallen significantly from poor results, but zoom in and there are some major improvements happening.

Read more »

oil tank at night
Energy Stocks

3 Energy Stocks Already Worth Your While

Here's why blue-chip TSX energy stocks such as Enbridge should be part of your equity portfolio in 2024.

Read more »

Solar panels and windmills
Energy Stocks

1 Beaten-Down Stock That Could Be the Best Bet in the TSX

This renewable energy stock could be one of the best buys you make this year, as the company starts to…

Read more »

Dice engraved with the words buy and sell
Energy Stocks

Is Enbridge Stock a Buy, Sell, or Hold?

Here's why Enbridge (TSX:ENB) remains a top dividend stock long-term investors may want to consider, despite current risks.

Read more »

Gas pipelines
Energy Stocks

If You Had Invested $5,000 in Enbridge Stock in 2018, This Is How Much You Would Have Today

Enbridge's high dividend yield hasn't made up for its dismal total returns.

Read more »

Bad apple with good apples
Energy Stocks

Avoid at All Costs: This Stock Is Portfolio Poison

A mid-cap stock commits to return more to shareholders, but some investors remember the suspension of dividends a few years…

Read more »