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Enbridge Completes Acquisition of PSNC From Dominion Energy

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Enbridge Inc. (ENB - Free Report) announced the completion of its acquisition of Public Service Company of North Carolina, Incorporated (“PSNC”) from Dominion Energy, Inc. (D - Free Report) . The PSNC gas utility, now operating as Enbridge Gas North Carolina, will integrate into Enbridge's Gas Distribution and Storage Business Unit. This acquisition is part of a broader deal involving three U.S.-based gas utilities, first announced in September 2023.

ENB Expands Its Customer Base in Growing Markets

PSNC is a key regulated gas utility serving more than 600,000 customers across North Carolina, including major cities like Raleigh, Durham, Gastonia, and Asheville, NC. The region’s strong economic growth offers significant opportunities for Enbridge to expand its footprint. PSNC brings an impressive portfolio, including more than 13,000 miles of natural gas pipelines and a liquefied natural gas storage facility under construction, which will enhance system reliability.

ENB’s Long-Term Vision for Gas Infrastructure

Enbridge is enthusiastic about the acquisition, which aligns with its low-risk utility business model. Michele Harradence, Enbridge's executive vice president and president of Gas Distribution and Storage, emphasized that the addition of PSNC strengthens ENB’s commitment to delivering reliable and affordable natural gas. The acquisition provides embedded growth opportunities, reinforcing the long-term importance of natural gas infrastructure, especially in a rapidly growing market like North Carolina.

As Enbridge integrates PSNC, the company aims to leverage its existing success in states like Ohio and Utah. ENB is committed to working closely with PSNC employees and stakeholders to ensure smooth operations and continued growth. With this acquisition, ENB is well-positioned to capitalize on the increasing demand for natural gas and enhance its overall utility business.

Zacks Rank & Key Picks

Currently, Enbridge and Dominion each carry a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at a couple of better-ranked stocks like Core Laboratories Inc. (CLB - Free Report) and VAALCO Energy, Inc. (EGY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.

The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.

VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.

The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days.

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