Enbridge Sees Huge Growth Ahead for This Carbon Fuel
Clean energy investments make up around 4% of Enbridge's (NYSE: ENB) business, which includes things like solar and wind farms. The rest of the North American midstream giant's business is tied to carbon fuels. But that's not a bad thing, when you consider that natural gas demand is strong and likely to keep growing. Here's how Enbridge is set to benefit.
Roughly 58% of Enbridge's earnings before interest, taxes, depreciation, and amortization (EBITDA) comes from oil pipelines. That's a solid core business, driven by the fees the company charges for the use of its assets. Often-volatile commodity prices aren't nearly as important as demand, so the midstream company's cash flows tend to be fairly consistent over time. This business, however, is slated to shrink in importance as others grow.
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Source Fool.com
