11:15 AM EDT, 11/01/2024 (MT Newswires) -- (Adds analyst comment)

Enbridge (ENB.TO) said Friday that its adjusted earnings fell even as revenue rose by more than half.

Adjusted earnings, excluding most one-time items, fell to $1.19 billion, or $0.55 per share, from $1.27 billion, or $0.62 per share. S&P Capital IQ forecast Enbridge's ( ENB ) adjusted EPS at $0.56.

Enbridge said the lower adjusted earnings were driven by higher debt principal and rates due to the acquisition of Enbridge Gas Ohio and Enbridge Gas Utah, as well as higher depreciation expense from assets acquired and placed into service last year.

Revenue rose 51% to $14.88 billion from $9.84 billion.

Adjusted Ebitda rose to $4.20 billion from $3.87 billion due to higher revenue on the Mainline system from higher tolls, higher contributions from U.S. Gulf Coast natural gas storage assets, and contributions from recently acquired assets.

"We remain committed to disciplined investment, maintaining a strong balance sheet and growing our dividend," President and CEO Greg Ebel said.

The company reaffirmed its 2024 full year financial guidance. It expects to hit near the top end of its Ebitda guidance range of $17.7 billion to $18.3 billion, and around the midpoint for discounted cash flow per share.

National Bank of Canada following the results maintained its sector-perform on Enbridge shares and its $57.00 price target.

The bank said its rating and price target are based on Enbridge's ( ENB ) risk-adjusted dividend yield of 6.5%, an EV/Free-EBITDA multiple of 13.0x, as well as its DCF/share valuation of $56.75.

"With the company's organic growth backlog up ~$3 billion, we expect a modest bump to our long-term estimates following the company's conference call," National Bank said.

Enbridge shares were last seen up $0.245 to $56.485 on the Toronto Stock Exchange.

Price: 56.50, Change: +0.26, Percent Change: +0.46