Enbridge Inc. ENB has provided a glimpse of its financial guidance for 2023.
The leading midstream energy player projects earnings before interest, income taxes and depreciation (EBITDA) for next year in the band of C$15.9 billion to C$16.5 billion. This reflects an improvement from C$15.0 billion to C$15.6 billion of adjusted EBITDA this year. Enbridge also reaffirmed its 2022 adjusted EBITDA in the top half of the projected range.
ENB said that C$3.8 billion of assets that are going to be placed into service this year are mainly contributing to the positive development. Enbridge is expecting strong utilization of its assets that are also aiding the developments.
For next year, ENB projects distributable cash flow (DCF) per share in the band of $5.25 to $5.65. This is also depicting the picture of improvement from this year’s DCF of $5.20 to $5.50. Enbridge expects DCF in 2022 to be just above the midpoint of the projected band.
Along with the financial guidance, Enbridge announced the increase of its annualized common share dividend to C$3.55 per share from C$3.44.
Enbridge currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Marathon Petroleum Corporation MPC, PBF Energy Inc. PBF and Equinor ASA EQNR. All the stocks carry a Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Marathon Petroleum is a well-known name in the downstream space and is the operator of the largest refining system in the nation. It has a strong focus on returning capital to shareholders. Over the past 30 days, Marathon Petroleum has witnessed upward earnings estimate revisions for 2022 and 2023.
PBF Energy is a leading North American independent refiner. It is highly inclined to reduce its debt load and has reinstated its regular quarterly dividend. Over the past seven days, PBF Energy has witnessed upward earnings estimate revisions for 2022 and 2023.
On the Norwegian continental shelf, Equinor is the largest producer of natural gas. In Europe, it is the second largest in terms of supplying gas. According to Equinor, its most important markets for gas in Europe are England, France and Germany. These reflect the degree of dependence of Europe on Equinor for gas.
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