RE:Good buying opportunityER: Thanks for sharing but personally whenever I see (another) MF piece (The Motley Fool for Q) pumping ENB makes me wonder if something is not actually wrong with ENB. MF has been pumping ENB since ... feels like forever.
I think the big question is if even with a new L5 in the ground (years aways) do you think ENB will receive more love from investors? There will be increased competition to the mainline starting 2023 when TMX is expected to be operational. How will the bottom line be affected? Oil producers will be happy for sure given that they will have more options to move their product - oil. With increased transportation capacity in the near future, isn't it safer to invest in oil producers who are gonna produce / ship more instead of ENB?
Also, I always wondered, why there is no export of Canadian crude outside of US? Maybe that is one of the reasons ENB pursued the Ingleside opportunity to provide access to Canadian oil producers to global markets. Isn't this a great opportunity for producers as well?
There is a chance of war in Eastern Europe, Russia and Ukraine. If that happens, sanctions will kick in and oil price will shoot up. Again the case favours oil producers.
Last, I have been looking at all my trades this year involving ENB + oil producers. ENB profits are laughable compared to oil producers.
I think that pipelines are going to underperform oil producers for a while since WTI demand will go crazy next year. While there is no love for ENB, a lot of negative media and investors deflecting in mass.
ENB is a great company, however, there are many other better opportunities out there IMO.
equityresearch wrote: “Enbridge is one of the most reliable investments for investors with a long-term mindset. Its diversified revenues and highly predictable utility-like cash flow position it well to consistently deliver strong shareholders’ returns. Further, its robust secured capital program will likely drive strong growth in the coming years. Looking ahead, Enbridge plans to optimize its asset returns through revenue inflators and productivity enhancements. Moreover, strategic acquisitions will boost its growth rate. Enbridge remains on track to bolster its shareholders’ returns through share repurchases and dividend payments. Further, it expects to generate $5-6 billion annually in the investable capacity to support long-term growth and drive cash flows. It has grown dividends for 27 consecutive years and is yielding over 7%.” - MF