15:53:06 EDT Fri 26 Apr 2024
Enter Symbol
or Name
USA
CA



Enbridge Inc
Symbol ENB
Shares Issued 848,774,828
Close 2014-12-17 C$ 55.27
Market Cap C$ 46,911,784,744
Recent Sedar Documents

Globe says Gibson, others have better valuations now

2014-12-18 07:13 ET - In the News

See In the News (C-GEI) Gibson Energy Inc

The Globe and Mail reports in its Thursday edition that normally the mid-stream energy sector is a decent place to ride out market volatility, but this is no typical oil slump. The Globe's Tim Shufelt writes that the energy crash has engulfed Canadian stocks exposed to the oil patch. Almost all of the Canadian mid-stream stocks have good cash flow visibility over the next two to three years, says RBC analyst Robert Kwan. Supporting the valuations on many mid-stream stocks was the expectation for at least 10-per-cent-cash-flow growth, says Mr. Kwan. Gibson Energy, Inter Pipeline, Keyera and Pembina Pipeline have all declined in share price by 20 per cent to 35 per cent since September. TransCanada and Enbridge have fared somewhat better as a result of investors favouring larger names. Valuations are more attractive now as a result of the correction, but are still above historical averages. The sell-off has opened up what might be considered compelling entry points for Gibson, Inter Pipeline, Keyera and Pembina, based on yields in the 4.5-per-cent to 5-per-cent range and dividend growth of about 10 per cent, but with one big caveat, that oil prices stop falling, says Mr. Kwan.

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