Bullish ENB, Pump Baby Pump, Tarif free ENB has vertical integration into the USA. Worth looking in the MAGA/Trump economic outlook plan, the "drill baby drill" is in fact what is supporting the ENB price and the expansion in more states. ENB also makes most of there revenue not actually from the sale of Canadian oil/LPG to USA, but from the refining of USA crude drilled domestically in the USA. They act as more of a refining company. LPG(liquid propane gas) is actually there strongest stream of revenue (this is what is used to heat buildings and water, also can be used in electricity generation(not as bad as other non renewables like coal)). Almost every house hold in Canada (and now some in the USA) pays money to ENB. Not to mention they now have new sectors they can expand into, as AI and data center demands are growing it requires North America to expand its power grid, which will have a positive impact for ENB. There is simply not enough electricity being produced to fill the demand at the moment and the growing demands for the future. LPG might be the short term(10-20 years) solution to this, as the next best alternative is Nuclear power generation. Which is more efficient but requires higher start up and maintenance costs. Also takes about 8-10 years to commission and build a nuclear power generator, not to mention the cost.
Supporting material from Google
- A 1,000 megawatt (MW) nuclear power plant can cost between approximately $5 to $10 billion
- A 1,000 MW liquid propane gas (LPG) plant cost estimate is difficult to provide without specific details on the type of technology and location, but for a comparable 1,000 MW natural gas plant, recent estimates suggest costs of roughly $500 to $800 per kilowatt (kW), translating to $500 million to $800 million
Given this info, it is 10X-20X more expensive to build a nuclear reactor power generator then the same scale LPG power generator.
They also have a strong monopoly in the utility sector as they own all the gas infostructure that is required to heat Canada and some areas of the USA. They also expand into the USA strategically, looking for states that have similar climate balance to Canada. IMO they operate similarly to CNR, they have a strong mote and balance sheet with constant and recession resistant cash flow. Great stock to add to a portfolio as risk diversification.
"When the economy is doing good you set the thermostat to XY, when the economy is doing bad you set the thermostat to XY"
"You don't shower less because the economy is doing poorly"
