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E Split Corp T.ENS

Alternate Symbol(s):  ENSPF | T.ENS.PR.A

The objective of the Class A shares is to provide holders with non-cumulative monthly cash distributions and the opportunity for capital appreciation through exposure to the portfolio. And The investment objectives for the preferred shares is to provide holders with fixed cumulative preferential quarterly cash distributions and return the original issue price of 10.00 Dollars to holders upon maturity. The Company has a portfolio comprised primarily of common shares of Enbridge Inc. Enbridge, a North American oil and gas pipeline, gas processing and natural gas distribution company the Enbridge Common Shares or the Portfolio and intends to purchase Enbridge Common Shares from time to time in the market or through participation in future public offerings by Enbridge. The Advisor believes that the Company offers investors an opportunity to gain exposure to Enbridge, one of the worlds largest energy infrastructure companies.


TSX:ENS - Post by User

Comment by Obscure1on Feb 08, 2024 4:09pm
131 Views
Post# 35870921

RE:To buy or not to buy

RE:To buy or not to buyoldbrit34:  Middlefield posts the closing NAV for ENS every day between 10am and 11am

https://middlefield.com/funds/navs/

Scroll down to the Split Funds

ENB is the same price it was 3 years ago because people don't want to invest in oil anymore.  The ENB chart is messy. 

ENB has been moving away from being a predominantly oil pipleline since it purchased Spectra in 2017.  The Spectra purchase was a $49 billion ground mover which has since been followed up by a $4 billion Gulf Coast LNG port deal and the pending $19 billion Dominion NG distribution deal. It is criticaly important that ENB continue to diversify (a polite word for "get the helll out of") away from oil and Canada.   

The math supports an ENB share price move back into the low to mid $50's but to go higher, ENB will need to complete and then consolidate the Dominion asset purchase and move.  I would like to see ENB get completely out of the liquid transportation business but there are limited (as in maybe zero) buyers. 

Until the US refineries stop requiring heavy oil, ENB will remain in fiscally good shape on a cash flow basis from its liquid transportation division.  However, mgmt has to continue to be on the outlook for new business that fits their core skill set which is transporting and distributing NG.  ENB probably has a 20+ year window to extract itself from the liquid transportation business IMO. 

Now for the good news.  ENB is incredibly well managed.  They are forward thinking and very  accomplished at consolidating acquisitions and CAPEX buildouts.  On top of that, they are very conservative with CAPEX with their YES/NO benchmark at a 20% ROI.  The have the luxury of cherry picking projects that tie into their massive network. 

At $11 per share for ENS, the yield is 14.2%.  At that point, to quote Carrie Underwood, I'm willing to let "Jesus take the wheel".   



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