ENB continues to diversify why SU hibernatesENB has made another large gas acquistion for $14 billion from Dominion.
This gas pipeline deal is smaller ($14 billion vs $37 billion) and different from the gas pipeline acquistion from Spectra as ENB financed the equity portion of this deal with a $4 billion bought deal with Canadian underwriters. ENB learned the hard way from the Spectra deal that you don't hand Americans 694 million shares of a Canadian company.
Since 2017, ENB has made 3 large deals. The first was buying Spectra, a US based gas pipeline company for $37 billion. In 2021, ENB bought a port in the Gulf of Mexico to ship LNG for $4 billion cash. This week, they bought another gas pipeline for $4 million cash plus debt.
What is missing from all of the deals?
1) oil content
2) Canadian content
Why?
Are the guys at SU smarter than the guys at ENB?
Are the international companies that have been selling oil patch assets to SU just plain dumb?
Are all the professionally managed funds that have been exiting SU dumb as well?
The SU share price has been performing well recently. Is SU smarter than everyone?