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Enbridge Inc (ENB) Q4 2024 Earnings Call Highlights: Record EBITDA and Dividend Growth Amid ...

In This Article:

  • EBITDA: Record EBITDA with a 13% increase over 2023, exceeding $5.1 billion for the fourth quarter.

  • DCF per Share: Increased to $1.41 for the quarter, approximately a 10% rise over last year.

  • Adjusted Earnings per Share: Rose to $0.75, reflecting a 17% increase over the same period last year.

  • Total Shareholder Return: 37% total shareholder return in 2024.

  • Dividend: Increased for the 30th consecutive year.

  • Organic Project Backlog: Over $8 billion added, with approximately $3 billion of annual utility investment.

  • Asset Sales Proceeds: Approximately $3.2 billion from the sale of interests in Alliance, Aux Sable, and East to West Thai line.

  • Leverage Target: Maintained at 4.5 to 5 times.

  • Gas Transmission Throughput: Over 24 Bcf per day delivered.

  • Liquids Mainline Throughput: Averaged 3.1 million barrels per day.

  • Gas Distribution and Storage: Delivering over 9 Bcf per day to over 7 million customers.

  • Renewable Projects Sanctioned: Approximately 1.2 gigawatts of new solar projects in 2024.

  • 2025 Guidance: Adjusted EBITDA between $19.4 billion and $20 billion; DCF per share of $5.50 to $5.90.

  • Capital Backlog: $26 billion with $5 billion of assets placed into service in 2024.

Release Date: February 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Enbridge Inc (NYSE:ENB) delivered record EBITDA and DCF per share in 2024, with a 13% increase in EBITDA over 2023.

  • The company increased its dividend for the 30th consecutive year, maintaining its status as a dividend aristocrat.

  • Enbridge Inc (NYSE:ENB) closed the acquisition of three premier US natural gas utilities, creating the largest gas utility franchise in North America.

  • The company added over $8 billion of organic projects to its backlog, diversified across all four of its franchises.

  • Enbridge Inc (NYSE:ENB) achieved its 19th consecutive year of meeting or exceeding financial guidance, highlighting the stability of its business model.

Negative Points

  • The company faces potential challenges from tariffs, which could impact economic growth and energy demand.

  • There are concerns about the political and regulatory environment, particularly regarding major infrastructure projects like Northern Gateway.

  • The renewable energy sector has seen public equities underperform, which could impact future investments.

  • Higher average interest rates and debt balances from recent acquisitions resulted in increased financing costs.

  • The Calvados offshore project in Europe is delayed, now expected to enter service in 2027, later than originally scheduled.