(Energy Analytics Institute, 3.Dec.2024) — Calgary, Alberta-based Enbridge Inc. revealed its 2025 financial guidance and an annualized common share dividend increase from C$3.66 to C$3.77 Canadian dollar per share, or 3.0%, effective 1 Mar. 2025.
“Global oil consumption has rebounded to all-time highs and increasing natural gas demand is being driven by LNG growth, coal to gas switching and the rapid increase in electric power demand stemming from new datacenter developments. Enbridge’s incumbent footprint across its four core businesses puts the company in an unparalleled position to meet increasing conventional and new energy demand in North America and beyond. As the world navigates a dynamically shifting macro backdrop, Enbridge will continue to play a leading role delivering safe, reliable and affordable energy,” Enbridge president and CEO Greg Ebel commented 3 Dec. 2024 in an official statement from the company.
“Our 2025 guidance, once again, reflects the predictability embedded across our businesses. We expect to generate EBITDA between C$19.4bn and C$20bn. This represents a 9% increase from the midpoint of our 2024 recast guidance and is 17% higher than our original 2024 guidance, driven by a full year of contributions from our US gas utilities acquisitions, the roughly C$5bn of secured projects we’re on track to place into service in 2024 and continued strong expected utilization of our assets.
RELATED: The Montney: A Rising Star in North American Energy
HIGHLIGHTS
- 2025 adjusted earnings before interest, income taxes and depreciation (EBITDA) guidance of C$19.4bn to C$20bn and distributable cash flow (DCF) per share of Cdn $5.50 to C$5.90
- Declared 30th consecutive annual common share dividend increase, raising it by 3% to C$0.9425 per quarter (C$3.77 annualized), effective 1 Mar. 2025,
- Reaffirmed 2024 full year guidance for EBITDA and DCF per share; the company expects to finish the year near the top end of the EBITDA range of C$17.7bn to C$18.3bn, and around the midpoint for DCF per share, and
- Reaffirmed 2023 to 2026 growth outlook of 7%-9% for EBITDA growth, 4-6% for adjusted earnings per share (EPS) growth and approximately 3% for DCF per share growth.
“Enbridge’s business model is designed to succeed and deliver reliable cash flow in all market cycles. We are pleased to announce a 3% increase to the common share dividend, marking the 30th consecutive annual increase. Consistent dividend growth is an important component of our investor value proposition and underpins our dividend aristocrat status. We are committed to being a first-choice investment opportunity today and into the future,” Ebel said.
“Looking forward, Enbridge is well-positioned to continue to deliver reliable growth. Year-to-date, we have added C$7bn of new capital to our secured growth backlog and announced ~C$1bn of highly strategic, accretive tuck-in acquisitions. Our financial guardrails of 4.5-5x Debt-to-EBITDA and 60-70% DCF payout remain firmly in place, and we anticipate tailwinds to these metrics through the balance of our outlook,” concluded Ebel.
RELATED: Ovintiv Inks $2.4bn to Add Core Oil-Rich Montney Assets
____________________
