Enbridge (TSX: ENB) has released guidance for 2025 this morning, which is headlined by adjusted EBITDA guidance of between $19.4 billion and $20.0 billion, which represents growth over 2024 of approximately 9.4% based on guidance midpoints.
Nearly half of that adjusted EBITDA is set to come from Enbridge’s Liquids Pipelines segment, with guidance calling for the segment to produce $9,600 million in adjusted EBITDA. Gas Transmission meanwhile is expected to account for $5,100 million, Gas Distribution and Storage for $4,100 million, Renewable Power Generation for $700 million, and it’s expected that the remaining $200 million will come from “Eliminations and Other.”
Distributable cash flow per share meanwhile has been guided to be within a range of $5.50 to $5.90, with Enbridge set to increase its annualized dividend by 3.0% to $3.77 per share. The increase represents the 30th consecutive annual increase in dividend payouts for the company.
The figures presented at the same time reaffirm prior guidance, which called for growth of 7-9% for adjusted EBITDA, 4-6% for adjusted earnings, and 3% for distributable cash flow over the time period of 2023 to 2026.
For the remainder of 2024, Enbridge has also confirmed that it will finish the year near the top end of its adjusted EBITDA guidance range of $17.7 billion to $18.3 billion, and near the midpoint of its distributable cash flow guidance range.
READ: Enbridge’s Q3 2024: Strong Revenue Growth Overshadowed by Mounting Acquisition and Financing Costs
“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,” commented Enbridge CEO Greg Ebel.
In terms of the balance sheet, debt to EBITDA levels are expected to be within the 4.5x to 5.0x target range, with $7 billion in capital expected to be deployed in 2025. $9 billion in debt issuances are scheduled to take place, $7 billion of which will go towards refinancing debt maturities.
Enbridge last traded at $60.95 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
