EPS of $1.03 beat estimates of 96c; revenue of $18.5B beat estimates of $11.1B. EBITDA of $5.82B beat estimates by 5%. Enbridge Ebitda growth will likely stay strong in 2Q yet decelerate from 1Q's robust 18% gain. Though Gas Distribution should remain the primary driver, comparisons normalized some as it cycled through the Enbridge Gas Ohio acquisition in 1Q. Higher Mainline tolls could buoy Liquids cash flow, while volume may be higher than expected. Rate settlements for multiple assets and solid demand will likely fuel Gas Transmission Ebitda growth, and the pending deal to raise its Matterhorn stake via the Whistler JV may also contribute. The US dollar has retreated a bit, yet strength vs. the Canadian dollar remains and could continue as a tailwind. The 1Q outperformance and US dollar strength suggests Enbridge could achieve the top end or even exceed its reaffirmed C$19.4-C$20 billion 2025 Ebitda projection. Things look fine here to us. The stock drop may be a 'sell on news' event, or sector rotation as the market surged yesterday and 'safe' stocks were not needed as much by investors.
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