ENB is now trading at 16.6x times' Forward P/E (the lower end of historical averages range from 16.5x to 21x). In the 2Q, ENB’s EBITDA grew 8% to $4.0B, beating estimates of $3.94B and EPS was $0.68 in-line with estimates. Also, distributable cash flow grew by 1% to $2.8B. The net debt/EBITDA is around 6.0x, at the lower end of the company’s target range. Overall, an okay quarter, in-line with expectations, and the company continues to demonstrate its consistency in operating results, ENB was able to grow EBITDA to offset inflationary pressure while continuing to deleverage. Given the appropriate valuation, we would be comfortable holding ENB for dividend growth.
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