What to Expect from Enbridge's Upcoming Earnings Report

The consensus among analysts suggests a modest 5% rise in Enbridge's EBITDA for the second quarter, hitting C$4.22 billion, according to Bloomberg, which Bloomberg's analyst Talon Custer views as somewhat cautious.

· The growth in EBITDA is likely powered by a strong performance from the Gas Distribution and Storage segment. With increased rates and a burgeoning customer base bolstering its core business, Gas Distribution and Storage could emerge as the star performer, with EBITDA growth anticipated to top 60%, according to Bloomberg.

· A boost in EBITDA is also anticipated due to the integration of two new US utilities. This quarter marks the full inclusion of the Enbridge Gas Ohio utility acquisition that was finalized on March 7. Questar also contributed to the EBITDA following the closure of its acquisition on June 3. Enbridge's distinctive scale, coupled with a substantial backlog of projects and tactical acquisitions, may facilitate EBITDA growth that surpasses that of its competitors, solidifying its status as the most prominent midstream operator in North America.

These strategic moves, coupled with a history of consistent dividend growth and an expansive asset base in strategic locations, are expected to amplify its market value. However, the anticipated acquisition of three US gas utilities from Dominion, while promising stable cash flow and greater diversification, could also put pressure on Enbridge's financial standing and add to its dividend responsibilities. The forecast for Q2 indicates a potential 52% year-over-year reduction in free cash flow.

Enbridge's shares tend to experience an uptick on earnings release days, according to Chameleon. Reviewing data from the past 12 earnings releases, there's a 75% chance that the stock will rise, with an average growth of 1.7%. The most notable single-day gain post-earnings was 3.4%, while the most considerable single-day decline was 0.7%, suggesting that the stock performance remains relatively stable, even when it doesn't experience significant jumps.