D - Is Enbridge Stock a Buy?
2023-09-08 08:16:00 ET
The world is slowly moving away from dirtier energy sources toward cleaner ones. Enbridge (NYSE: ENB) has been following along with that transition. Its latest move, the proposed acquisition of three natural gas utilities from Dominion Energy (NYSE: D) , moves the company further down that path. But investors don't seem to like the deal. That could be a buying opportunity for long-term investors.
In 2016, nearly three-quarters of Enbridge's earnings before interest, taxes, depreciation, and amortization (EBITDA) was derived from its oil pipelines. Over the years, it has invested in natural gas assets, including the acquisition of Spectra Energy, which reduced oil to around 57% of EBITDA. Natural gas exposure across a mix of pipelines and natural gas utilities rose from 21% to 40%.
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Is Enbridge Stock a Buy?