Two midstream names have announced positive 2024 growth outlooks.
TC Energy Corporation (TRP) and Enbridge (ENB) this week provided 2024 financial guidance. Both companies are top holdings in the Alerian Energy Infrastructure ETF (ENFR), a composite of North American midstream energy infrastructure companies.
Positive updates to 2024 financial guidance are particularly welcome in the current environment, characterized by volatile energy commodity prices. Midstream is more defensive than other subsectors of energy due to the segment’s fee-based business model, which limits the impact of commodity prices on cash flows.
Enbridge, the top holding in ENFR by weight, on Wednesday reaffirmed its 2023 full-year EBITDA and DCF guidance. The company also declared a 3.1% quarter-over-quarter increase to its first-quarter dividend. The dividend, payable March 1, marks Enbridge’s 29th consecutive dividend increase.
The firm expects 2024 adjusted EBITDA of $16.6 billion to $17.2 billion. This figure excludes the gas utilities acquisitions announced in September that are expected to close in 2024.
Furthermore, the company expects its 2024 base business EBITDA to grow by more than 4% and its DCF to increase by approximately 3% compared to the midpoint of its 2023 guidance.
See more: “3Q23 Midstream Dividend Recap: MLPs Bring the Growth”
TC Energy
TC Energy, a top 10 name in ENFR by weight, provided an updated growth outlook at its investor day on November 28.
The company now expects 2023 comparable EBITDA to be roughly 8% higher than 2022. TC Energy expects its 2024 comparable EBITDA to be roughly 5% to 7% higher than 2023.
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