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Thursday July 26, 2012
Enbridge: A natural in energy
by Stephen Leeb, editor Income Performance Report  We want to increase our exposure to Canada while, simultaneously, adding to our energy position. Why energy at this time? With recent developments out of Europe, and with supply and demand dynamics that are positive for a long-term move to the upside in the price of oil, we think oil presents a bargain at today’s levels. Enter Enbridge (ENB), a leader in transporting energy through North America. The company ships more that 2 million barrels of crude oil and petroleum products daily via its pipeline network. Its natural gas gathering and transmission system spans the continent from Canada to the ultra-deep waters of the Gulf of Mexico, moving billions of cubic feet of gas per day. Enbridge also owns and operates Canada’s largest natural gas distribution company and provides distribution services in Ontario, Quebec, New Brunswick, and New York State. In addition, as a clean energy generator, it is expanding its interests in renewable and green energy technologies, including wind, solar and geothermal energy, as well as hybrid fuel cells. Recently, the company completed its $400 million common shares public offering (which only increased the number of shares outstanding by 1.3 percent), with proceeds to be used to fund growth projects. Among these projects are expansion in Eastern Canada and the U.S. Analysts forecast earnings per share growth of 14 percent for the next three years, and we expect dividend increases to be commensurate with this rate. Yielding 2.9 percent, Enbridge is a buy up to $42.10. What To Do Now: For low- risk energy exposure and a 2.9 dividend yield, buy Enbridge. Learn more about this financial newsletter at Stephen Leeb's Income Performance Report. Related articles:
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