Enbridge Inc. ENB reported fourth-quarter 2024 adjusted earnings per share (EPS) of 53 cents, which beat the Zacks Consensus Estimate of 52 cents. The bottom line increased from the year-ago quarter’s level of 47 cents.

Total quarterly revenues of $11.6 billion increased from $8.4 billion recorded in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $4.8 billion.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The strong quarterly results can be attributed to higher Adjusted EBITDA contributions from its major business segments like Liquids Pipelines, Gas Transmission, and Gas Distribution and Storage.

Enbridge Inc Price, Consensus and EPS Surprise

Enbridge Inc price-consensus-eps-surprise-chart | Enbridge Inc Quote

Segmental Analysis

Enbridge conducts business through five segments — Liquids Pipelines, Gas Transmission, Gas Distribution and Storage, Renewable Power Generation, and Eliminations and Other.

Liquids Pipelines: The segment’s adjusted earnings before interest, income taxes, and depreciation and amortization (EBITDA) totaled C$2.4 billion, up from C$2.37 billion in the year-earlier quarter. Higher contributions from the Mainline System, Regional Oil Sands System and Other Systems (including the Southern Lights Pipeline and Express-Platte System) aided the segment, partially offset by lower contributions from the Gulf Coast and Mid-Continent systems.

Gas Transmission: Adjusted earnings in this segment totaled C$1.27 billion, up from C$1.08 billion recorded in the fourth quarter of 2023. Higher contributions from the U.S. gas transmission segment and lower total operating costs associated with the same primarily aided the segment’s performance. Lower contributions from the Canadian Gas Transmission segment partially offset the positives.

Gas Distribution and Storage: The unit generated a profit of C$1,015 million, up from C$519 million in the prior-year quarter. The rise was mainly due to increased contributions from the U.S. Gas Utilities.

Renewable Power Generation: The segment recorded earnings of C$308 million, up from C$141 million in the prior-year quarter.

Eliminations and Other: The segment earned a profit of C$140 million, marking an improvement from a loss of C$2 million in the fourth quarter of 2023.

Distributable Cash Flow (DCF)

Enbridge reported a DCF of C$3.07 billion, up from C$2.73 billion recorded a year ago.

Balance Sheet

At the end of the fourth quarter, ENB reported long-term debt of C$93.4 billion. It had cash and cash equivalents of C$1.8 billion. The current portion of long-term debt was C$7.7 billion.

Outlook

For 2025, the company forecasts adjusted EBITDA (on base business) and DCF per share to be in the range of $19.4-$20.0 billion and $5.50-$5.90, respectively.

The pipeline company also reaffirmed its near-term growth outlook (2023 to 2026) of 7-9% for adjusted EBITDA and 3% for DCF per share.

ENB’s Zacks Rank and Key Picks

Currently, ENB carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, NextDecade Corporation NEXT and Viper Energy, Inc. VNOM. While SM Energy and NextDecade presently sport a Zacks Rank #1 (Strong Buy) each, Viper Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.

NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, NextDecade’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, the company is well-positioned to tap into the increasing export demand from the United States.

Viper Energy is a variable distribution MLP based in Midland, TX. It generates strong and steady royalty income from mineral interests in Eagle Ford and Permian Basin. The business strategies of the partnership include acquiring mineral interests from third parties and the parent company.

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