09:48 AM EST, 02/11/2022 (MT Newswires) -- Tudor, Pickering and Holt maintained its hold rating on the shares of Enbridge (ENB.TO) with a C$53.00 target price after the pipeline and power company on Friday reported fourth-quarter results that came in shy of expectations.
"Neutral. Enbridge printed a modest Q4 EBITDA miss of C$3.69B, 2% below the Street with a wider variance to TPH (-5%) due to lower Liquids and Gas Transmission contributions," analyst Matt Taylor said in a note. "FY'21 EBITDA of C$14.0B came in at the bottom half of guidance, while DCF/sh came in at the top end of the guidance range at C$4.96/sh largely due to lower maintenance capex. No change to the 2022 EBITDA and DCF/sh guidance laid out at Investor Day with new 2022 Mainline volume guidance of 2.95mmbpd consistent with the Q4'21 outlook. On capital allocation, the company bumped up the dividend in-line by 3% and maintains optionality with the buyback program with no repurchases announced thus far. The growth backlog expanded modestly with the announcement of two US Gas Transmission projects totaling US$0.5B, while surprisingly a downstream Liquids expansion of 90mbpd on Flanagan South was placed into service in 2021 - there was some debate as to whether the company would wait for conclusion of the Mainline settlement to move forward. New ESG measures were announced including incorporating emission targets into investment decisions, working to reduce scope 3 emissions, and developing low carbon partnerships. On Mainline contracting, nothing new was announced with the application to be filed later this year and a decision coming in 2023. Overall, we expect the results to be neutral for shares today as weaker Q4 numbers were offset by in-line FY numbers and no change to 2022 guidance."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
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