FX.co ★ Enbridge Reaffirms FY24, Post 2026 View; Increases And Extends Outlook Through 2026

Enbridge Inc., a renowned Canadian energy and pipeline corporation, reassured stakeholders on Wednesday about its financial projections for fiscal 2024. This includes expectations for adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and the distributable cash flow (DCF) per share.

Furthermore, the company provided an updated and extended financial outlook that runs up to 2026. It predicts that EBITDA will see an average annual growth of between 7% to 9%. Simultaneously, the average annual DCF per share and earnings per share growth are projected to be 3%, and between 4% and 6% respectively.

Looking beyond 2026, Enbridge expects an average annual growth rate of around 5% for EBITDA, DCF per share, and earnings per share.

The company attributes the increased EBITDA growth expectations primarily to acquisitions expected to be finalized in 2024, coupled with the growth of its base business.

Enbridge specifically mentioned its C$25 billion secured growth backlog, along with the C$19 billion acquisition of three leading U.S. gas utilities, announced in September 2023. These moves are projected to drive consistent, transparent growth throughout the decade.

Additionally, Enbridge revealed plans to annually invest between C$6 billion to C$7 billion in secured projects. The company anticipates directing approximately C$3 billion and above towards low-risk natural gas utility infrastructure each year.

As a result of these projections, Enbridge saw an approximately 1% boost in its shares during NYSE pre-market activity, with each share trading at $34.96.