I Compared CNQ and Enbridge: Here’s the Better Buy

Enbridge has formed a $2.7 billion joint venture with KKR and Apollo to fund expansions of its Westcoast natural gas pipeline system. Enbridge will receive $700 million in cash and retain majority control. The projects, Aspen Point and Sunrise, aim to add 535 mmcf/d and 300 mmcf/d of capacity by 2026 and 2028, respectively, and are backed by long-term contracts.

The Michigan Supreme Court ruled 6-1 that state regulators must reconsider a permit for Enbridge's planned tunnel to house its Line 5 oil pipeline under the Great Lakes. The court found regulators failed to assess the tunnel's environmental impact and alternatives. Enbridge, which owns the pipeline, expressed disappointment and is reviewing its legal options. Environmentalists and Michigan's governor oppose the project, citing potential environmental risks.

Westcoast Energy, an Enbridge affiliate, received federal approval for a $400M natural gas pipeline expansion near Taylor, B.C. Construction will start in Q1 2027, adding 178M cubic feet per day of capacity by Q3 2028. The project will employ 600 workers and contribute $168M to B.C.'s economy, according to the company.

Midstream energy sector sees increased deal activity due to high demand for infrastructure, particularly in natural gas. Recent acquisitions include ONEOK's $4.42B purchase of Brazos Midstream's Permian Basin assets and Williams' $5.5B acquisition of Momentum Midstream. A bipartisan infrastructure bill could further expedite energy projects, benefiting the AI boom.

Goldman Sachs resumed coverage on Enbridge Inc. with a Neutral rating and a C$71.00 price target. The firm views Enbridge as a large energy infrastructure company but notes competition and modest growth risks. Enbridge's stock has declined 3% year-to-date, trading near its 52-week low, but offers a 6% dividend yield. Goldman expects 5% EBITDA growth through 2030, with a constrained balance sheet. Other analysts have given Enbridge positive ratings and higher price targets.

Enbridge completed a $1.2B expansion of its Westcoast natural gas pipeline system in B.C., adding 535M cubic feet per day of capacity. The Aspen Point Program includes electric-powered compressor stations and new pipeline segments, supporting domestic demand and LNG exports. The project, completed on schedule, involved Indigenous partnerships and created over 1,000 jobs.