ENB - This 7.5%-Yielding Dividend Stock Is Another Step Closer to Securing a Once-in-a-Generation Investment Opportunity
2024-06-05 05:48:00 ET
Enbridge (NYSE: ENB) made a bold strike last year. The Canadian pipeline and utility company agreed to acquire three natural gas utilities from Dominion for $14 billion. Enbridge's CEO Greg Ebel stated at the time of the deal, "Adding natural gas utilities of this scale and quality, at a historically attractive multiple, is a once-in-a-generation opportunity." The deals will increase its cash flow per share, the overall stability of its earnings, and its growth profile.
The company recently closed the second of the three transactions. That put it one step closer to fully seizing this generational opportunity to create North America's largest gas- utility franchise in a highly accretive deal that should help fuel its growth for several years.
Enbridge recently closed the acquisition of Questar Gas company and its related Wexpro companies from Dominion. Questar distributes gas to around 1.2 million customers in Utah, Wyoming, and Idaho. It has a cost-of-service agreement with Wexpro to supply it with reliable natural gas . The acquisition adds "another strong gas utility to Enbridge's" portfolio, stated Michele Harradence, the president of Enbridge's gas-distribution and storage platform. Harradence further noted that Questar and Wexpro "enhance the scale and breadth of our existing low-risk utility business model and support our long-term dividend growth profile by providing stable, predictable cash flows."
For further details see:
This 7.5%-Yielding Dividend Stock Is Another Step Closer to Securing a Once-in-a-Generation Investment Opportunity