Enbridge sees FY24 adjusted EBITDA $16.6B-$17.2B

Enbridge announced its 2024 financial guidance. Sees FY24 adjusted EBITDA on base business $16.6B-$17.2B and distributable cash flow, or DCF, per share of $5.40-$5.80. This excludes EBITDA and DCF contributions from the gas utilities acquisitions announced on September 5, 2023 which are expected to close during 2024. Sees FY24 base business EBITDA to grow by more than 4% and its DCF to increase by approximately 3% compared to the midpoint of its 2023 guidance. Commenting on the Company’s outlook, Greg Ebel, President and CEO, said: “As the world’s demand for energy continues to grow, Enbridge remains committed to meeting these needs by delivering safe, affordable, reliable, and sustainable energy. We understand the critical role we play in powering communities and economies, and we are dedicated to expanding our infrastructure to ensure energy accessibility for all. Enbridge will continue to innovate and invest in the infrastructure required to strengthen our position as the first-choice energy delivery provider in North America and beyond. We’re excited to provide details on the visible growth across each of our core business units. Given that we expect to realize only partial year contributions from the Acquisitions, we are issuing our guidance on the base business and excluding the impact of any contributions related to them. As indicated previously, we anticipate closing all three gas utility acquisitions by the end of 2024. Our 2024 guidance showcases the predictability and strength of our four core businesses. The growth is attributable to the capital we’ve placed into service in 2023, over $3B of tuck-in acquisitions, embedded revenue escalators and optimization of the base business. In 2024, we expect our base business to generate EBITDA between $16.6B-$17.2B. This range reflects over 4% growth relative to the midpoint of our 2023 guidance range and is right in line with what we presented at our annual investor day earlier this year. Enbridge remains well positioned to continue delivering predictable growth well into the future. Since the start of this year, we have secured an additional $7B of attractive, organic projects, which increased our secured backlog to $25B and added over $3B of highly strategic, accretive tuck-in acquisitions. Finally, we continue to make great progress towards closing the Acquisitions next year. We have secured funding for over 75% of the aggregate purchase price and will finance the remainder using a combination of tools at our disposal while keeping our debt-to-EBITDA ratio within our stated 4.5x to 5.0x target range. This could include our ongoing capital recycling program, senior and subordinated debt issuances, reinstatement of our DRIP program, and at-the-market equity issuances.”