EPD - Enterprise Products Partners Vs. Enbridge: Both Have Gas But One Has More

2024-02-05 00:34:10 ET

Summary

• Enbridge and Enterprise Products Partners are well-established infrastructure players in the conventional energy space, enjoying favorable tailwinds at the sector level.
• Both companies have stable revenue streams, strong financial profiles, and high yielding dividends around 7.5%.
• However, only one of them is a solid buy, especially if we compare them side by side.
• In this article, I elaborate on the key aspects, which distinguish these companies and provide a basis for my recommendation to hold one and go long the other.

Enbridge ( ENB ) and Enterprise Products Partners ( EPD ) are both well-known infrastructure players in the conventional energy space. Their focus is mostly in the mid-stream segment, which brings stable and predictable revenues. The contracts are usually underpinned by healthy and established bodies that help de-risk the top-line even further.

When it comes to the balance sheet, both ENB and EPD are safe and can clearly access chep and flexible financing due to the healthy leverage and coverage metrics....

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