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Enbridge (NYSE:ENB) closed +0.9% on Friday after reporting better than expected Q3 adjusted earnings and announcing deals to buy seven U.S. renewable natural gas facilities for US$1.2B and boost its stake in two German offshore wind projects for €625M (~US$668.7M).
Q3 GAAP earnings fell to C$532M, or C$0.26/share, from C$1.28B, or C$0.63/share, in the prior-year quarter, while Q3 adjusted earnings slipped to C$1.27B, or C$0.62/share, from C$1.36B, or C$0.67/share, a year ago, but exceeded analyst consensus EPS of $0.58.
Enbridge (ENB) attributed the declines mostly to non-operating factors including the absence in 2023 of a gain of C$1.07B (C$732M after-tax) on the closing of the joint venture merger transaction with Phillips 66 realigning its indirect economic interests in Gray Oak Pipeline and DCP Midstream.
Q3 distributable cash flow increased to C$2.57B from C$2.5B in the year-earlier quarter.
The company said its liquids business saw record utilization in Q3, and core profit from its liquids pipelines jumped 15.5% Y/Y to C$2.25B, helped by a 1% rise in Mainline volumes to 3M bbl/day.
Enbridge (ENB) said the US$1.2B acquisition of the seven renewable natural gas facilities in Texas and Arkansas from Morrow Renewables establishes it as one of the largest transporters of RNG by volume in North America.
“RNG fundamentals are strong in the United States and indicate continued growth in demand over the long-term as gas utilities increasingly continue to set RNG blending targets,” Enbridge (ENB) CEO Greg Ebel said on the post-earnings conference call.