Enbridge Rips Through Q1: A Pipeline to Profit?
2min readThe energy infrastructure giant
(ENB) just delivered a Q1 earnings report that’s screaming “BUY!” with record performance and a reaffirmed outlook that could make this stock a winner for years. Let’s break it down—this isn’t just a good quarter; it’s a blueprint for future growth.The Numbers Are Cooking
Enbridge’s Q1 2025 adjusted EBITDA surged 18% to $5.8 billion, blowing past estimates and last year’s $5.0 billion. Distributable Cash Flow (DCF) jumped 9% to $3.8 billion, giving the company the fuel to keep paying its juicy dividend—and then some. CEO Greg Ebel isn’t just talking about growth; he’s showing it.
Why This Quarter Matters: The Pipeline Play
The real magic here isn’t just in the earnings—it’s in what Enbridge is building. The company’s Mainline pipeline hit a record 3.2 million barrels per day (bpd) throughput, a key driver of its Liquids Pipelines segment, which saw $161 million in EBITDA growth. With North America’s oil production set to grow by 1 million bpd by 2035, Enbridge is positioned to carry that crude—and charge for it.
But wait—there’s more. The company just launched a $2 billion project to upgrade the Mainline’s reliability through 2028. That’s not just maintenance; it’s a strategic bet on the region’s energy future.
Gas & Renewables: Diversification Done Right
Enbridge isn’t just about oil. Its Gas Transmission segment saw a $165 million EBITDA boost, thanks to projects like the Matterhorn Express Pipeline (MXP) and Traverse Pipeline. The MXP, a $300 million stake, will move 2.5 billion cubic feet per day (bcfd) of gas from the Permian Basin to Texas. Traverse? It’s a 1.75 bcfd line connecting Agua Dulce to Katy, Texas—a move that’s locking in growth as shale production surges.
Even in renewables, Enbridge’s Gas Distribution segment delivered a staggering $835 million EBITDA jump, fueled by colder weather and rate hikes. Sure, wind resources hurt Renewable Power by $38 million, but that’s a drop in the bucket compared to the gas and liquids bonanza.
The Balance Sheet: Strong, Steady, and Strategic
Debt-to-EBITDA is at 4.9x, but Enbridge aims to bring it down to 4.5–5.0x by year-end. With $2.8 billion in new senior notes refinancing debt and funding projects, the company’s keeping its financial house in order.
The real kicker? Its $28 billion growth backlog—up $3 billion from last quarter—includes projects like the Birch Grove expansion (a $400 million boost to the T-North Pipeline) and the T15 gas line in North Carolina. These aren’t just numbers; they’re cash machines with long-term contracts.
The Bottom Line: A Dividend Machine with Legs
Enbridge’s dividend? Safe as a vault. The Q1 results supported the $0.94250 per share payout, and with DCF per share guidance reaffirmed at $5.50–5.90, there’s no reason to doubt its ability to keep raising that dividend.
Conclusion: Buy, Hold, and Watch It Grow
Enbridge isn’t just a pipeline company—it’s the infrastructure backbone of North America’s energy economy. With 18% EBITDA growth, a $28 billion backlog, and a management team that’s laser-focused on low-risk, accretive projects, this stock isn’t just surviving—it’s thriving.
The numbers don’t lie: Enbridge’s Q1 was a masterclass in execution. If you’re looking for a steady dividend plus growth, this is your play. This isn’t a sip; it’s a chug.
Action Alert: Enbridge is a BUY for long-term energy investors. The infrastructure boom isn’t slowing down—and neither is ENB.
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