Q: Enbridge announced 2 JV in late March. Would you comment on what will be the impact of these JV on revenues and debt. Good for short, mid or longer-term? Still hold or buy? Thanks a lot.
5i Research Answer:
We think ENB remains a BUY for income. The Permian Basin and pipeline JV is fairly big, with ENB committing $350M plus $150M for a 19% interest in the JV. While big, keep in mind ENB's market value is $101B, so it may not be a huge financial impact right away. But certainly these JVs are positive developments to provide longer term revenue and cash flow visibility and growth.