- Price
- CA$68.04
- Fair value
- CA$75.00
- Discount
- 9.3%
- Uncertainty
- Medium
- LSEG rating
- 2.44
- Moat
- Narrow
- Next earnings
- 2026-11-06
- Next earnings is estimate
- No
- Company name
- Enbridge
- Sector
- Pipelines & gas utilities
- About
- Enbridge is an energy infrastructure company based in Calgary, Canada. It runs the Mainline and other crude oil pipelines that carry much of Canada's oil exports, natural gas pipelines and storage in Canada and the United States, natural gas utilities that serve about 7.2 million customers in Canada and the United States, and renewable power projects. It bought three US gas utilities from Dominion Energy. Its secured growth backlog was C$41 billion at mid-2026. For 2026, it expects adjusted EBITDA of C$20.2 to C$20.8 billion and distributable cash flow (DCF) of C$5.70 to C$6.10 per share.
- Thesis
- The market prices Enbridge for high debt and for new shares to pay for growth. Debt was 5.1 times EBITDA at June 30, 2026, above its target range of 4.5 to 5.0 times, partly because of a weaker Canadian dollar. In September 2026, Enbridge sold about C$3.0 billion of new shares to help pay for two crude oil purchases: Tallgrass's crude business for US$2.55 billion and Salt Creek Midstream's crude gathering business for US$600 million. The company targets growth of only about 5% a year in DCF per share after 2026, and its CEO will change on January 1, 2027. For the gap to close, three things must be true. Debt to EBITDA must return to the 4.5 to 5.0 range as new projects and the acquired assets add EBITDA. DCF per share must reach the 2026 guidance and grow about 5% a year. Projects in the backlog, such as the Line 5 relocation in Wisconsin, expected in early 2027, must enter service on time. The Q3 2026 report on November 6, 2026 gives the next test. The close of the two purchases later in 2026 and the 2027 guidance are the next dated events. The gap can close only over several years, as the backlog enters service. The main reason it may not close is higher interest rates, which raise financing costs and make the dividend less attractive.
- Risks
- Debt was 5.1 times EBITDA at June 30, 2026, above the target range of 4.5 to 5.0 times. If leverage stays high, Enbridge may need more new shares or slower growth to protect its credit ratings.
Higher interest rates raise the cost of the large amount of debt that Enbridge must refinance and make its dividend less attractive to investors.
Pipeline projects need permits and can face legal challenges and cost increases. The Line 5 relocation in Wisconsin is expected to cost US$1.0 billion and enter service in early 2027.
The CEO changes on January 1, 2027. A new CEO can change priorities, such as the balance between acquisitions, projects and debt reduction.
- Balance sheet
- Cash: CA$2.0B
Debt: CA$112.1B
Net debt: CA$110.1B
Debt due within 12 months: CA$8.3B
Enbridge funds its assets with long-term notes, hybrid securities, commercial paper and equity. At June 30, 2026, total debt was C$112.1 billion: C$103.9 billion of long-term debt, C$6.7 billion due within one year and C$1.6 billion of short-term borrowings. Cash was C$2.0 billion. The company states debt to EBITDA of 5.1 times for the 12 months to June 30, 2026, above its target of 4.5 to 5.0 times, partly because debt in US dollars was translated at a weaker Canadian dollar than the average rate for EBITDA. In September 2026, Enbridge sold about C$3.0 billion of new shares to help fund the Tallgrass and Salt Creek purchases. The company expects to finance its C$41 billion backlog from about C$10 billion to C$11 billion of growth capital capacity each year.
As of 2026-06-30.
- Checkpoints
- Nov 6, 2026: Q3 2026 earnings: leverage and guidance. Pending. Watch: DCF per share on track for the C$5.70 to C$6.10 guidance and debt to EBITDA moving toward 5.0 times pass; lower guidance or higher leverage fails.
Q4 2026 (estimate): Tallgrass and Salt Creek purchases close. Pending. Watch: Both purchases close in late 2026 on the agreed terms passes; a delay into late 2027 or new conditions that reduce their value fail.
- Recent events
- 2026-09-14: Enbridge closed a bought-deal offering of 44,735,000 common shares at C$66.85 per share, including the full over-allotment option, for gross proceeds of about C$3.0 billion.
2026-09-09: Enbridge agreed to buy Tallgrass's crude oil business, including 75% of the Pony Express Pipeline, for US$2.55 billion in cash, about 10 to 11 times forward EBITDA. It expects to close later in 2026 and expects the deal to add to DCF per share in the first full year.
2026-09-08: Enbridge said that Greg Ebel will retire as President and CEO on December 31, 2026. Michele Harradence, who leads the gas distribution and storage business, will become President and CEO on January 1, 2027.
2026-08-26: Enbridge agreed to buy Salt Creek Midstream's crude oil gathering business in the Delaware Basin for US$600 million in cash.
2026-07-31: Enbridge reported Q2 2026 results. Adjusted EBITDA was C$4.8 billion, up from C$4.6 billion, and DCF was C$2.9 billion. Adjusted earnings were C$0.63 per share. Enbridge reaffirmed its 2026 guidance, sanctioned the US$1.0 billion Line 5 relocation in Wisconsin and grew its secured backlog to C$41 billion.