RE:Enbridge Reports Strong Third Quarter 2023To me, the key statement in the report is that they can still maintain their DCF per share despite the dilution associated with issuing shares to finance the deal with DE long before the actual deal is closed and the deal contributes to the bottom line. This was an area of concern for me.
The other aspect of that deal which raises some level risk is that a lot of the debt assumed is variable rate. Current economic conditions now suggest that by 3Q next year we could see lower interest rates. So ENB's gamble on lower interest rates when the deal closes and they assume the debt is looking more promising than it did when the deal was announced.
Based on this report, I am more comfortable with my decision to buy an underweight position in ENB and will look for opportunities to add to that position on SP weakness which could well happen as economic indicators continue to weaken.