Enbridge Inc. ENB is a leading midstream player with a resilient business model. The company operates a vast network of liquids and natural gas pipelines, storage facilities, gas distribution systems and renewable power assets (wind and solar). The company generates revenues by transporting crude oil, natural gas and NGLs via its assets under long-term contracts. These fee-based agreements ensure stable and predictable cash flows, insulating ENB from commodity price fluctuations.
Elevated crude prices, with West Texas Intermediate trading above $95 per barrel, according to data from oilprice.com, are expected to boost upstream production activity. This is likely to increase demand for pipeline transportation and storage services, strengthening Enbridge’s business model. At the same time, the rapid expansion of data centers and industrial hubs is expected to drive strong demand for cleaner energy sources such as natural gas and renewables like wind and solar. This trend will enhance utilization of Enbridge’s gas transmission, storage and renewable power assets.
Enbridge expects nearly $50 billion of growth opportunities through 2030. The company utilizes its cash flows to fund expansion projects, many of which are already under development and expected to come online in the coming years. ENB is likely to approve new projects worth $10 to $20 billion over the next two years, which can drive growth and earnings in the future. In 2025 alone, the company has sanctioned $14 billion of projects, bringing its backlog to around $39 billion, reflecting its commitment to meeting rising energy demand and driving long-term earnings growth.
How Does Rapid Data Center Growth Affect KMI & EPD?
Kinder Morgan Inc. KMI and Enterprise Products Partners L.P. EPD are two other midstream players with diversified midstream assets. Kinder Morgan and Enterprise Products also generate stable, fee-based revenues by transporting natural gas, crude oil and natural gas liquids by utilizing their pipeline networks and storage facilities. KMI and EPD are likely to gain from the rapid expansion of data centers and industrial hubs due to an increased demand for their midstream assets similar to ENB.
ENB’s Price Performance, Valuation & Estimates
ENB shares have gained 21.5% over the past year compared with the 23.4% improvement registered by the composite stocks belonging to the industry.
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From a valuation standpoint, ENB trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 16.99X, above the broader industry average of 15.44X.
The Zacks Consensus Estimate for ENB's second-quarter 2026 earnings has remained unchanged over the past seven days. Meanwhile, estimates for the first quarter of 2026 and full-year 2026 earnings have seen upward revisions.
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Enbridge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).