Topic: How To Invest

The Successful Investor Hotline – Friday, September 8, 2023

Article Excerpt

ENBRIDGE INC., $45.77, Toronto symbol ENB, remains a buy. The company operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S. It also distributes gas to 3.8 million consumers in Ontario and Quebec. This week, Enbridge agreed to acquire three regulated gas utility firms—which serve roughly 3 million customers in Ohio, North Carolina, Utah, Idaho and Wyoming—from Dominion Energy, Inc. (New York symbol D). The purchase will make Enbridge the largest gas utility in North America, delivering 9.3 billion cubic feet per day to about 7 million customers. The combined gas distribution business will get 51% of its earnings from Ontario followed by Ohio (20%), Utah/Wyoming/Idaho (18%), North Carolina (10%) and Quebec (1%). Enbridge will pay $9.4 billion U.S. in cash for these businesses. If you include their debt of $4.6 billion U.S., the price rises to $14.0 billion U.S. To put that amount in context, the company’s market cap (the total value of all outstanding shares)…