Topic: How To Invest

The Successful Investor Hotline – Friday, December 14, 2018

Article Excerpt

ENBRIDGE INC., $42.77, Toronto symbol ENB, operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S. It also distributes gas to over 2 million consumers in Ontario, Quebec, New Brunswick and New York State. In February 2017, the company completed its $37 billion all-stock purchase of Spectra Energy. That firm operates crude oil and natural gas pipelines in the U.S. and Canada. Spectra also owns oil and gas storage facilities. Assuming that firm’s debt of roughly $22 billion pushed up Enbridge’s overall long-term debt to $58.7 billion. That’s a high 75% of its $78.2 billion market cap (the total value of all outstanding shares). To help pay down that debt, Enbridge continues to sell its less-important assets. Those include a new deal to sell its natural gas distribution operations in New Brunswick to Algonquin Power & Utilities Corp. (Toronto symbol AQN) for $331 million. (Note: Algonquin is a recommendation of Canadian Wealth Advisor, our newsletter that…

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