Canadian Pipeline Operator Enbridge Bets on Higher 2024 Demand With Increased Earnings Forecast
Nov 29(Reuters) - On Wednesday, Enbridge forecasted higher core earnings and raised its dividend for 2024 as the Canadian pipeline operator bets on higher demand to lift volumes transported across its network.
Profits from Canadian oil and gas transportation have been buoyed by low U.S. inventory levels and increased exports as buyers sought alternatives to Russian oil since Moscow's invasion of Ukraine last year.
Meanwhile, industry experts have forecast that Canadian oil and gas producers will drill 8% more wells in 2024 to take advantage of greater access to pipelines.
Enbridge said it expects C$9.3 billion in core profit from its liquids pipelines business, the company's main unit, helped by strong system utilization.
The upbeat forecast from Enbridge, which operates the Mainline oil pipeline system that ships the bulk of Canada's crude exports to the U.S., follows peer TC Energy estimating higher adjusted core earnings for 2024 on Tuesday.
Calgary-based Enbridge expects to deploy about C$6 billion of capital in 2024, including maintenance.
The company forecast adjusted core earnings to be between C$16.6 billion ($12.23 billion) and C$17.2 billion next year, higher than its 2023 expectations of C$15.9 billion to C$16.5 billion.
The company raised its 2024 dividend by 3.1%.
Enbridge, which made a $14 billion bid to buy three utilities from Dominion Energy in September, said it had secured funding for over 75% of the total purchase price.
The deal, expected to close in 2024, would double the company's gas distribution business and also create North America's largest natural gas provider.
($1 = 1.3569 Canadian dollars)
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments