I still might if it got down to $36 or something. Does anyone else find thelayoff.com site extremely hard to navigate? Press question mark to learn the rest of the keyboard shortcuts. Finally someone brings this up! For example, if a pump is failing, and you replace it with a pump that increases throughput by a couple of barrels - you increase capacity, thus this could be classified as growth capex. He previously worked at the San Antonio Business Journal, KGBT-TV in the Rio Grande Valley and Al Día in Dallas. increases and focus on debt repayment. I love seeing your analysis over the constant stream of people having a gut feeling of something going up (see NMX and Jet.V). If these happen, Enbridge should do fairly well. Just to note, ENB has significant interest rate, execution and regulatory risk inherent in the stock (regulatory risks focused on the growth side of the portfolio). He kisses his boss's a$$ all day and polishes his power point, while co-workers do all the work. Are you just trying to drive traffic to that really shitty site. The company said in an emailed statement that it “took the difficult step today of reducing our workforce.” The layoffs account for about five per cent of the roughly 11,000 people that work for the firm. This isn't an Enbridge thing. 47% is not even close to a high payout ratio. A welcome email is on its way. Because oil and gas are fungible, midstream firms can optimize the flow of hydrocarbons across their systems to meet producer or end-user demand while locking in geographic price differentials, or use storage facilities tied to the network to lock in price differentials across time periods. Enbridge CEO Al Monaco warned earlier this month that cuts would come among corporate and administrative staffs that each company maintained before the merger. I own a small position on a value/contrarian basis, on the expectation that the current pessimism is overblown, that the Spectra acquisition will be accretive and that line 3 will ultimately be approved. I come for the Memes. It also has a complex operating structure that weighs against it. That being said, this is the exact conversations I like to see in this subreddit. Given that it says "Enbridge set to layoff up to 1,000 on March 8, 2016" which is 24 hours before you posted this question I would have thought the answer would already be apparent. Starting in 2001, Enbridge began a rapid Texas expansion by acquiring Houston-based Midcoast Energy Resources, giving the company a larger presence in the natural gas transmission business and significantly widening its geographical reach in North America. Nothing to add on Enbridge but as fellow WSB poster I just want to make sure you understand that it's not an investing sub it's a gambling sub. From FCF they are well over 100%. Any professional would agree with the definition and treatment of such expenditures, and the definition applies to all companies on the stock exchange. EDIT: Also to add their most recent equity offering was used for debt paydown and dividend. Outside of the non-core divestment and massive tax write-off in 2017, Enbridge operated at a -$985m loss due to their high debt load (attributable to earnings and not FCF), Enbridge is currently sitting at a 2.5x interest coverage ratio (and $65b total debt) - making the dividend ultra risky, Enbridge has committed to a 10-12% dividend increase through 2022. We encountered an issue signing you up. Like other companies in the oil and natural gas industry, Enbridge is dealing with the record low oil prices and a global supply glut caused by the coronavirus pandemic. Last line were me just trying to fit in. Again I saw another post where people were wanting to buy into Enbridge due to that THICC dividend. That being said I ALWAYS seem to find one or more posts discussing, what I believe, are garbage stocks. TheLayoff.com is live since January 31, 2009! That being said I disagree that the dividend is safe. The Canadian pipeline operator is enacting voluntary early retirements and pay cuts as part of the company's plans to cut $300 million from its budget. I'm tired of seeing posts discussing stocks based on feelings and emotions. 2 of 2 Enbridge CEO Al Monaco. Again not a very stable dividend (which most people in this subreddit are buying this stock on), Enbridge just recently had an equity issue to pay-down debt and to fund the most recent dividend increase (NOT sustainable). I would not be surprised to see an upgrade within the year. The merger established Calgary-based Enbridge as North America's largest pipeline company, overtaking Houston-based companies like Kinder Morgan and Enterprise Products Partners and its Calgary rival, TransCanada. Enbridge is the company leading the proposal to build the estimated $7.9-billion, 525,000-barrel-per-day Northern Gateway oil pipeline to link Edmonton and Kitimat, B.C. Jordan Blum is a senior energy reporter at the Houston Chronicle since 2015. I don't want to draw any comparisons, but for a long time history showed GE was a great long term holding. Once approval is received, midstream firms typically seek to lock in project economics through long-term contracts with shippers before ever breaking ground on a new project, ensuring that at a minimum project and capital costs are recouped, with potential for excess returns over time. "These actions are meant to avoid layoffs, which remain our last resort," the company said in a statement. That's what I wish this sub was - more in-depth analysis of Canadian stocks and why or why not to buy. I'm not sure where you get your information or how qualified you are to give it but it's total garbage. I'm fine to sit tight, drip the dividend and wait five years, ten years or whatever. Canadian pipeline giant Enbridge is cutting 1,000 jobs, largely in Houston and Calgary. Its revenues were $7.94 billion over the three-month period, compared with $8.63 billion one year earlier. There is not much of an indication regarding this in the near term and is solely based on my observation. Stop looking just the high yield. Noting on your 10th and 11th points, you're absolutely right. Canadian pipeline operator Enbridge is enacting voluntary early retirements and pay cuts as part of the company's plans to cut $300 million from its budget. Questions regarding individual companies, ETFs, Tax implications, Index Investing, and more... Press J to jump to the feed. Pipelines that already exist (and Enbridge generates most of its earnings from existing infrastructure such as the Canadian mainline), are generally protected, rather than hindered by regulators. Please keep that in mind when you take advice from there. The oil industry is consolidating. history has shown Enbridge to be a great long-term holding. Much of the interest expenses and poor cash flow as you mentioned was related to divestiture but also re-structuring of debt and closing out swap agreements. Cookies help us deliver our Services. The regulatory oversight provides stability in returns that typically exceed the company’s cost of capital. Literally the sentence after I explain that majority of FCF is generated from selling of non-core assets and not their actual business model. Last year, for example, TransCanada acquired Houston-based Columbia Pipeline Group for more than $10 billion to increase its share of the U.S. shale gas market. Clearly this denotes certain risks in a rising rate environment, which has been reflected in the stock price. I lurk very often within this sub (more involved in r/wallstreetbets but I often love seeing what my Canadian counter parts are investing in. Funds from Operation were around $3.735B while about $1.554B was attributed (~40%) to the divestment. Generally, firms will not pursue expansion opportunities without securing contracted capacity. Well accessing debt markets will be more difficult and if they do choose to access it, they will be burdened with higher interest rates to compensate for risk. Mainly because I'm still adding to my TFSA and cannot really invest alongside my r/wallstreetbets friends. You say that their growth path + dividend is utilized through organic growth, debt, and equity. © 2020 Financial Post, a division of Postmedia Network Inc. All rights reserved. This doesn't make sense. I think we can both agree that the growth path forward does bear risk and is definitely something to be mindful of. But more generally, oil & gas and midstream pipelines have clearly been out of favour in the market. Enbridge to enact pay cuts, voluntary early retirements. Enbridge gained a 90,000-mile network of gas and natural gas liquid pipelines from Spectra, enhancing its access to U.S. natural gas markets. I've said many times in this sub that Enbridge is a horrible investment to make. As such, regulation keeps out competitors and acts as an intangible asset to existing pipeline operations, such as Enbridge.
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