RE:ENB continues to diversify why SU hibernatesAs I mentioned in my post this morning, ENB has bought these assets at around a P/E ratio in the high teens whereas the market valuation of ENB before the deal was 23X. In this scenario, it makes a lot of sense to finance a big portion of the deal through equity which is what they are doing.
I am a fan of natural gas producers even over the medium term as I see the demand rising as people realize that there are big problems with renewables - not the least of which is environmental damage. The lobby against renewables (wind and solar) is still small but growing.
Conversely, transportation demand for oil will become increasingly challenged during this same time period. Seems like ENB, by doing this deal, is preparing for that eventuality by reducing the percentage contribution of liquids to its bottom line. This is also consistent with their purchase of the LNG port facility in Texas that you refer to.
All that said, I do think it will take some time to sort all this out, especially the debt issue and for that reason I decided to hold off buying ENB today but I do see a potential buy if there is further weakness in the SP.
As for SU, my posts on that Board speak for themselves.