EPS of 55c matched estimates; revenue of $14.88B was much higher than expected. EBITDA of $4.2B was marginally better than forecast. Enbridge appears poised for high-teens Ebitda growth in 4Q to reach the top of its C$17.7-$18.3 billion 2024 guidance range. The expansion will be primarily fueled by the first full quarter of all three US gas utility acquisitions from Dominion after closing the PSNC deal on Oct. 1, propelling the Gas Distribution segment. Improved Mainline tolls following the July 1 hike could reduce pressure on Liquids Ebitda, and contributions from the 1H renewable natural gas and Whistler Parent joint-venture deals could support modest Gas Transmission cash-flow growth. US dollar strength may continue to aid both of these segments. M&A should accelerate distributable cash flow expansion in 4Q, but it will likely trail Ebitda growth due partly to higher interest expense, taxes and maintenance capital. With these results and a 6.49% yied we remain quite comfortable here.
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