S&P 500 ^GSPC 5,071.63 +0.02%
Tesla TSLA $162.13 +12.06%
Nvidia NVDA $796.77 -3.33%
Amazon AMZN $176.59 -1.64%
Apple AAPL $169.02 +1.27%
Alphabet GOOG $161.10 +0.74%
Meta META $493.50 -0.52%
Microsoft MSFT $409.06 +0.37%

The energy company is consolidating its position.

This morning I was intrigued by the news and therefore the drop in Enbridge $ENB+0.7%. The company, is an energy giant predominantly in Kaduna but also with about 20% gas distribution to the US.

Canadian pipeline giant Enbridge Inc. has agreed to buy three energy companies from Dominion Energy Inc. in a $9.4 billion deal that will create the largest natural gas supplier in North America. The deal is worth a total of $14 billion, including debt, and will be Enbridge's largest transaction since acquiring Spectra Energy Corp. for about $28 billion in 2017.

The move comes at a time when Enbridge, North America's largest pipeline company, is pushing to position itself for a transition to low-carbon energy sources. The three companies it is buying serve customers in Ohio, Utah, Wyoming and North Carolina, where base rates are expected to grow 8% a year.

ENB

Enbridge

ENB
$35.66 $0.24 +0.68%

"The acquisitions we are making have longevity and the gas companies are 'essential' infrastructure for providing safe, reliable and affordable energy," Greg Ebel, Enbridge's chief executive, said in a statement.

Of course, the deal to buy the companies, which involve seven million homes and businesses in various states, will require approval from regulators, including the Federal Trade Commission, to ensure it doesn't violate antitrust laws. Enbridge said it will begin pushing ahead to secure approval immediately. The company said it expects the deal to close in 2024. Enbridge's deal with East Ohio Gas Co, Questar Gas Co and Public Service Co of North Carolina will double $ENB'+0.7%s business.

Personally, the move so far strikes me as a super investment and a step into the future, even though the overall deal includes the purchase with about $4.6 billion in debt. Because of the transition to greener energy, in my and analysts' opinion, gas still plays a significant role. The company is also on the dividend list, except what may not be so attractive is the taxation. Personally, I have the company in my portfolio and am now overbuying, however, the tax is withheld at 25%, per Canadian law.

What about you, does anyone have this company in their portfolio and how do you rate it? 😊


I know very little about this sector. However, I am interested in this sector and I will have to look at it in more detail and find out a lot of information. Otherwise, thanks for the tip :D.

Also thanks and look, I'm not an expert on this, but I'm looking into the energy industry a little bit, I started with companies that I'm sure you know like $OXY+0.1% $CVX+0.4% $XOM+0.0%...so after all it's an industry that's always going to be around.

Yeah, I get it. As you write, this industry will always be with us. Otherwise, so far I probably like $CVX+0.4% the best and the price of this stock is not bad at all😁.

Well, it went down pretty hard last night. To a two-year low. Next stop is probably the low of the covid. I don't see anything else out there right now.

Yes, I was watching. Well, I don't really believe they've got there yet, I'm thinking, they don't have a reason yet, I don't expect any negative news around them, nor have I found any, but if they do, I'll see why and I'd possibly buy, but it would depend on the situation then, no.

Great article! Thanks a lot!

Thanks, too. 🙏😊