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Enbridge (ENB) Q4 Earnings Lag Estimates, Revenues Rise Y/Y
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Enbridge Inc. (ENB - Free Report) reported fourth-quarter 2021 adjusted earnings per share of 54 cents, missing the Zacks Consensus Estimate of earnings of 61 cents per share. However, the bottom line increased from the year-ago quarter’s 43 cents.
Total quarterly revenues of $9,893 million increased from $7,680 million in the prior-year quarter.
The weaker-than-expected earnings can be attributed to lower contributions from the company’s Gas Distribution and Storage, Renewable Power Generation, and Energy Services businesses.
Enbridge conducts business through five segments — Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services.
Liquids Pipelines: The segment’s adjusted earnings before interest, income taxes, and depreciation and amortization (EBITDA) totaled C$2,108 million, up from C$1,787 million in the year-earlier quarter. Higher contributions from Mainline System, Gulf Coast and Mid-Continent System primarily aided the segment.
Gas Transmission and Midstream: The segment’s adjusted earnings totaled C$922 million, up from C$878 million in fourth-quarter 2020. Higher contributions from the U.S. Gas Transmission business’ Atlantic Bridge Phase III project aided the segment’s performance.
Gas Distribution and Storage: The unit generated a profit of C$450 million, down from C$492 million in the prior-year quarter due to the timing of operating expenditure, partially offset by higher distribution charges.
Renewable Power Generation: The segment recorded earnings of C$140 million, down from C$146 million in the prior-year quarter as the energy giant witnessed weak wind resources from wind power generation facilities in the United States.
Energy Services: The segment incurred a loss of C$83 million, widening from a loss of C$82 million in fourth-quarter 2020. Certain markets experienced a considerable compression in location and quality differentials, thereby hurting the segment.
Distributable Cash Flow (DCF)
For fourth-quarter 2021, Enbridge reported a DCF of C$2,487 million, representing an increase from C$2,209 million a year ago.
Balance Sheet
At the end of fourth-quarter 2021, Enbridge reported long-term debt of C$67,961 million, up sequentially from C$65,036 million. It had cash and cash equivalents of C$286 million. The current portion of long-term debt was C$6,164 million. Enbridge’s long-term debt to capitalization was 50.7% at the end of the fourth quarter.
Guidance
For 2022, Enbridge reaffirmed its guidance for EBITDA of C$15-C$15.6 billion and DCF per share of C$5.2-C$5.5.
In 2021, the company placed $10 billion worth of capital projects into service. This is expected to generate significant EBITDA growth in 2022.
Zacks Rank & Key Picks
Enbridge currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that turned in strong bottom-line numbers in the fourth quarter and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
RPC, Inc. (RES - Free Report) is among the leading providers of advanced oilfield services and equipment to almost all prospective oil and gas plays in the United States. RPC reported adjusted earnings of 6 cents per share for the fourth quarter, beating the Zacks Consensus Estimate of 3 cents.
RPC is expected to see an earnings growth of 1066.7% in 2022. As of Dec 31, RPC had cash and cash equivalents of $82.4 million, up sequentially from $80.8 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
ConocoPhillips (COP - Free Report) , based in Houston, TX, is primarily involved in the exploration and production of oil and natural gas. COP reported fourth-quarter 2021 adjusted earnings per share of $2.27, comfortably beating the Zacks Consensus Estimate of $2.20.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP reported preliminary 2021 year-end proved reserves of 6.1 billion BoE. As of Dec 31, 2021, ConocoPhillips had $5,028 million in total cash and cash equivalents.
Valero Energy Corporation (VLO - Free Report) is the largest independent refiner and marketer of petroleum products in the United States. VLO reported fourth-quarter 2021 adjusted earnings of $2.47 per share, beating the Zacks Consensus Estimate of $1.79 per share.
Valero is expected to see an earnings growth of 152.7% in 2022. Among all the independent refiners, VLO offers the most diversified refinery base, with a capacity of 3.1 million barrels per day in its 15 refineries located throughout the United States, Canada and the Caribbean. The company’s Refining segment was responsible for 81.7% of the total margin in 2021.
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Enbridge (ENB) Q4 Earnings Lag Estimates, Revenues Rise Y/Y
Enbridge Inc. (ENB - Free Report) reported fourth-quarter 2021 adjusted earnings per share of 54 cents, missing the Zacks Consensus Estimate of earnings of 61 cents per share. However, the bottom line increased from the year-ago quarter’s 43 cents.
Total quarterly revenues of $9,893 million increased from $7,680 million in the prior-year quarter.
The weaker-than-expected earnings can be attributed to lower contributions from the company’s Gas Distribution and Storage, Renewable Power Generation, and Energy Services businesses.
Enbridge Inc Price, Consensus and EPS Surprise
Enbridge Inc price-consensus-eps-surprise-chart | Enbridge Inc Quote
Segmental Analysis
Enbridge conducts business through five segments — Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services.
Liquids Pipelines: The segment’s adjusted earnings before interest, income taxes, and depreciation and amortization (EBITDA) totaled C$2,108 million, up from C$1,787 million in the year-earlier quarter. Higher contributions from Mainline System, Gulf Coast and Mid-Continent System primarily aided the segment.
Gas Transmission and Midstream: The segment’s adjusted earnings totaled C$922 million, up from C$878 million in fourth-quarter 2020. Higher contributions from the U.S. Gas Transmission business’ Atlantic Bridge Phase III project aided the segment’s performance.
Gas Distribution and Storage: The unit generated a profit of C$450 million, down from C$492 million in the prior-year quarter due to the timing of operating expenditure, partially offset by higher distribution charges.
Renewable Power Generation: The segment recorded earnings of C$140 million, down from C$146 million in the prior-year quarter as the energy giant witnessed weak wind resources from wind power generation facilities in the United States.
Energy Services: The segment incurred a loss of C$83 million, widening from a loss of C$82 million in fourth-quarter 2020. Certain markets experienced a considerable compression in location and quality differentials, thereby hurting the segment.
Distributable Cash Flow (DCF)
For fourth-quarter 2021, Enbridge reported a DCF of C$2,487 million, representing an increase from C$2,209 million a year ago.
Balance Sheet
At the end of fourth-quarter 2021, Enbridge reported long-term debt of C$67,961 million, up sequentially from C$65,036 million. It had cash and cash equivalents of C$286 million. The current portion of long-term debt was C$6,164 million. Enbridge’s long-term debt to capitalization was 50.7% at the end of the fourth quarter.
Guidance
For 2022, Enbridge reaffirmed its guidance for EBITDA of C$15-C$15.6 billion and DCF per share of C$5.2-C$5.5.
In 2021, the company placed $10 billion worth of capital projects into service. This is expected to generate significant EBITDA growth in 2022.
Zacks Rank & Key Picks
Enbridge currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that turned in strong bottom-line numbers in the fourth quarter and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
RPC, Inc. (RES - Free Report) is among the leading providers of advanced oilfield services and equipment to almost all prospective oil and gas plays in the United States. RPC reported adjusted earnings of 6 cents per share for the fourth quarter, beating the Zacks Consensus Estimate of 3 cents.
RPC is expected to see an earnings growth of 1066.7% in 2022. As of Dec 31, RPC had cash and cash equivalents of $82.4 million, up sequentially from $80.8 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
ConocoPhillips (COP - Free Report) , based in Houston, TX, is primarily involved in the exploration and production of oil and natural gas. COP reported fourth-quarter 2021 adjusted earnings per share of $2.27, comfortably beating the Zacks Consensus Estimate of $2.20.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP reported preliminary 2021 year-end proved reserves of 6.1 billion BoE. As of Dec 31, 2021, ConocoPhillips had $5,028 million in total cash and cash equivalents.
Valero Energy Corporation (VLO - Free Report) is the largest independent refiner and marketer of petroleum products in the United States. VLO reported fourth-quarter 2021 adjusted earnings of $2.47 per share, beating the Zacks Consensus Estimate of $1.79 per share.
Valero is expected to see an earnings growth of 152.7% in 2022. Among all the independent refiners, VLO offers the most diversified refinery base, with a capacity of 3.1 million barrels per day in its 15 refineries located throughout the United States, Canada and the Caribbean. The company’s Refining segment was responsible for 81.7% of the total margin in 2021.