Enbridge’s new pipelines enhance your value

Article Excerpt

While Enbridge continues to face environmental opposition to its new pipelines, we still feel these projects are likely to go ahead as planned. What’s more, the cancellation of the Keystone XL pipeline also increases the importance and value of Enbridge’s own existing and new pipelines. ENBRIDGE INC. $46 is a buy. The company (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 2.0 billion; Market cap: $92.0 billion; Price-to-sales ratio: 2.4; Dividend yield: 7.3%; TSINetwork Rating: Above Average; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada east as well as to the U.S. It also distributes gas to over 4.3 million customers in Ontario and Quebec. Investors continue to benefit from the company’s $37-billion all-stock purchase of U.S. pipeline operator Spectra Energy in 2017. Enbridge has also greatly simplified its operations by acquiring full control of four affiliated firms that operate some of its pipelines. Due to the Spectra purchase, Enbridge’s revenue jumped 28.3%, from $34.6 billion in 2016…