Opinions Norman Levine
EnbridgeENB.TOCOMMENTNov 22, 2017
Norman LevineStock price when the opinion was issued
As of Oct 01, 2026. Market Open.
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Liquid pipelines business, with some gas transmission in midstream (that's where the upside is). Provides 20% of US gas consumption, and 25% of feed gas for LNG exports. Those 2 industries seeing tremendous growth. Rising global demand for LNG, and NA will supply that with ENB perfectly positioned. Likes it here, he'd buy.
Overhang: Line 5 mishap with negligible environmental impact, but Michigan's trying to shut it down. Odds of that are pretty low. ENB will have to spend $$ on this and pay fines.
Dennis Mitchell, CFA
Probably this one. Spending likely to be stronger in terms of infrastructure spend on pipelines. Valuation's more attractive than it's been for a while. He worries a bit about Line 5 in Michigan, with permits and pushback (will ultimately get done).
He bought some on the financing deal. With all the infrastructure spending, there have to be more pipeline expenditures going forward. Somewhat more defensive.
John Zechner
He owns many pipelines which have tons of value. It's a defensive sector. Canadian pipelines and nat gas are overlooked. Is a good trade.
Keith RichardsIt is another defensive stock with over a 5% yield and has growth at these levels. Blackstone is knocking at the door and could buy some assets from them in the US. He likes the new CEO appointment.
On defensive stocks in general he looks for companies with good cash flow to manage with which they can make counter-cyclical acquisitions, raise dividends and survive market downturns. Buy 11 Hold 9 Sell 2
Ryan BushellIs good for income. He just bought it at $70 due to rising interest rates. Yields 5.3%. Any sell-off is attractive.
Eric NuttallExcellent, very-well-managed company. Great financial discipline. Nice dividend of 5.5%, tax-advantaged over bonds. Expected EBITDA growth is ~5%. Payout ratio ~65%, not much room for dividend increases (~2-3% a year). Highly capital-intensive, fair amount of debt. Cost of debt going up makes it hard for valuation to go higher.
More attractive are companies with dividends that may be lower, but growing rapidly.
Maintaining the dividend is not a challenge, and it will continue to grow. Under pressure because of the assumption that peace will come to the Strait of Hormuz. But the space ran up in the first place due to the conflict. Just look at the chart. Big capex program, growth in various businesses.
Blue-chip company, ballast for your portfolio. Buy, put it away for the dividend. His firm has owned for ~27 years, and they've been happy campers reaping the income.
Darren Sissons
Pays a 4.5% dividend that will grow. They have the largest crude oil pipeline network in North America. They own nat gas operations in the U.S. They have a backlog that can grow their cash flow by 5%. Will benefit from Ottawa's infrastructure growth in western Canada.
Christine PooleYield is a bit lower than some of the others. Results were largely in line, market reaction may just be due to whipsawing from Iran war. As well, not immediately proceeding with an expansion. Still a very good name, though he owns PPL for its size and growth.
Any of Canada's 4 major pipelines are good investments for the long term.
Has been a poorer performer this year, down about 20% or so. It comes on the heels of making a large acquisition. Up until this year, this was largely an oil based pipeline company. They bought Spectra Energy which diversified them much more into natural gas pipelines. Took on a lot of debt doing it. He doesn’t believe the dividend is in jeopardy, but it is now a “show me” stock. They are having an investor day in a few weeks, where he hopes there will be more information. Yields about 5.5%, the highest yield it has ever had. Believes the dividend is safe. If you are a value investor, you are buying a great company with growing and excellent income at a good price.