Enbridge (ENB) — 5.8% yield after Tallgrass deal, C$3B equity raise & CEO change

Watch the video

Quick version: 60-second Short

---

The short version: a bigger crude franchise, a higher yield

Enbridge (TSX: ENB), North America’s largest pipeline company, closed at CA$66.99 on September 24, 2026, after a slide of about 16% over three months that leaves the stock roughly flat (−2.7%) over twelve months. In one September week, Enbridge announced a US$2.55B Tallgrass crude deal, a US$600M Permian tuck-in, a C$3B equity raise and a CEO succession. The new story is a larger North American crude franchise, funded partly with fresh shares.

After the drawdown, the indicated yield prints near 5.8%, the second-highest in its peer group. The question for a new buyer is whether that yield is fair pay for dilution and leverage. Below we go through the deals, the equity raise, and how Enbridge compares with TC Energy, Pembina, Keyera and South Bow on size, returns, valuation, dividends and analyst targets.

What happened: Tallgrass, Salt Creek and a C$3B raise

On September 8, 2026, Enbridge said CEO Greg Ebel will retire on December 31, 2026, and Michele Harradence will become President and CEO on January 1, 2027. The next day, September 9, it announced two acquisitions:

• Tallgrass Energy’s crude transportation business for about US$2.55B, including a majority stake in the Pony Express pipeline into Cushing, Oklahoma.
• Salt Creek Midstream’s Delaware Basin (Permian) gathering assets for about US$600M.
• Management says both deals are accretive to distributable cash flow per share in year one.

To help fund them, Enbridge launched a bought-deal equity offering of about C$2.6B. It closed on September 14 at C$3.0B including the over-allotment, priced near C$66.85 a share, almost exactly where the stock sat on the screener date.

The deals extend Enbridge’s crude network into the U.S. midcontinent and the Permian, but they are small relative to the company: Raymond James put them at only about 1.5–2% of enterprise value. The bigger near-term effect is on the share count. New equity at a depressed price dilutes existing holders, which is a main reason the stock slid.

Leverage behind the equity raise

The raise makes more sense against the balance sheet. At the second-quarter report, Enbridge’s leverage had printed near 5.1x debt to EBITDA, above its 4.5–5x target band. Funding the deals with debt would have pushed leverage further from the target, so the company chose equity instead.

That is the trade-off for shareholders: dilution now in exchange for a balance sheet that heads back toward the band. The market treated the offering as a dilution reset, and it matters for the valuation below, where Enbridge looks reasonable on earnings but stretched on free cash flow.

Business overview: Enbridge vs midstream peers

Enbridge moves crude oil and liquids (the Mainline and Line 5 carry Western Canadian crude to U.S. and Eastern Canadian refiners), runs natural gas transmission pipelines, owns gas utilities in Ontario and the U.S., and has a smaller renewable power business. Most of its cash flow comes from long-term contracts and regulated tolls, which is why investors treat it like a utility, even though its revenue line swings with commodity volumes.

On the TSX screener, Enbridge sits in the Industrial services sector. The peers are the liquid midstream and pipeline names in the same sector: TC Energy (TRP), the gas pipeline giant; Pembina (PPL), a Western Canadian pipeline and processing operator; Keyera (KEY), a gas processing and liquids business; and South Bow (SOBO), the liquids pipeline company spun out of TC Energy. Waste Connections, in the same sector, was left out as not a midstream business.

Overview table

Company (Ticker)	Price	Market cap	Revenue (LTM)	Net income (LTM)
Enbridge (ENB)	$66.99	$151.9B	$83.3B	$6.13B
TC Energy (TRP)	$84.26	$84.3B	$16.0B	$3.60B
Pembina (PPL)	$64.24	$37.4B	$7.84B	$1.78B
Keyera (KEY)	$53.11	$15.6B	$7.21B	$361M
South Bow (SOBO)	$48.51	$10.1B	$2.11B	$602M
Average (incl. ENB)	—	$59.8B	$23.3B	$2.49B

Source: TSX screener (September 25, 2026, tsx-2026-09-25.csv) · CAD · LTM = last 12 months. Average includes ENB; blank cells skipped.

Enbridge is about a C$152B company, nearly twice TC Energy and about four times Pembina. It reported about C$83.3B of revenue and C$6.13B of net income over the last twelve months. South Bow is the smallest at about C$10B. Enbridge’s large revenue figure reflects pass-through energy marketing, so its low net margin (about 7%) is not a like-for-like weakness against the pure pipeline names.

Performance: a sharp three-month slide

Performance table

Company (Ticker)	1M	3M	6M	1Y	5Y	10Y
Enbridge (ENB)	−2.8%	−15.9%	−11.3%	−2.7%	+32.1%	+14.6%
TC Energy (TRP)	−1.7%	−15.1%	−4.2%	+14.5%	+35.2%	+34.0%
Pembina (PPL)	−3.4%	−3.7%	+1.3%	+15.6%	+62.2%	+60.6%
Keyera (KEY)	−11.2%	−8.7%	−2.1%	+14.2%	+65.3%	+27.8%
South Bow (SOBO)	−5.6%	−6.4%	+2.9%	+24.7%	+73.2%	+73.2%
Average (incl. ENB)	−4.9%	−10.0%	−2.7%	+13.3%	+53.6%	+42.0%

Source: TSX screener (September 25, 2026). Average includes ENB; blank cells skipped. Price change by window.

Over three months Enbridge is down about 16%, in line with TC Energy’s slide and far worse than Pembina, which is down only about 4%. Over one year Enbridge is roughly flat (−2.7%), while South Bow is up about 25%, Pembina about 16% and TC Energy and Keyera about 14% each. Keyera has the weakest one-month tape, down about 11%. The gap over twelve months is stock-specific: the equity raise and leadership change landed on top of a sector-wide pullback.

The longer windows are not flattering either. Enbridge is up about 32% over five years and about 15% over ten, the lowest of the group on both measures.

Valuation: fair on earnings, stretched on cash flow

Valuation table

Company (Ticker)	P/E	Fwd P/E	PEG	P/S	P/B	P/FCF	Price/Cash
Enbridge (ENB)	25.74	21.92	—	1.77	2.50	62.11	70.87
TC Energy (TRP)	25.25	22.37	—	5.51	3.44	21.55	42.33
Pembina (PPL)	22.63	21.08	—	4.79	2.43	18.20	244
Keyera (KEY)	37.40	17.95	—	1.92	2.95	—	24.23
South Bow (SOBO)	16.83	18.86	0.38	4.78	2.68	10.75	9.83
Average (incl. ENB)	25.57	20.43	0.38	3.76	2.80	28.15	78.33

Source: TSX screener (September 25, 2026). Average includes ENB; blank cells skipped. Highlighted = lowest (cheapest) positive value per column.

Enbridge trades at about 26x trailing earnings and 22x forward, right at the peer average of about 26x trailing and close to TC Energy. South Bow looks cheapest on trailing P/E (about 17x), PEG, free cash flow and cash. Enbridge is the cheapest name on price to sales, near 1.8x, but that partly reflects its marketing revenue.

The catch is free cash flow. At about 62x price to free cash flow, Enbridge screens far more expensive than the 28x average and South Bow’s 11x, because heavy growth capital spending soaks up cash. Investors are paying for the fee-based liquids franchise, the Tallgrass and Salt Creek tuck-ins, and the yield. If the new assets lift cash flow per share as promised, the cash-flow multiple should come down.

Dividend: a 5.8% yield, messy payout optics

Dividends table

Company (Ticker)	Dividend / share	Yield	Payout ratio
Enbridge (ENB)	$3.77	5.79%	146.4%
TC Energy (TRP)	$3.40	4.17%	103.5%
Pembina (PPL)	$2.82	4.58%	100.8%
Keyera (KEY)	$2.12	4.24%	152.1%
South Bow (SOBO)	$2.78	5.88%	96.8%
Average (incl. ENB)	$2.98	4.93%	119.9%

Source: TSX screener (September 25, 2026). Average includes ENB; blank cells skipped. Yield = indicated.

Enbridge pays C$3.77 a share a year, an indicated yield of about 5.8%, the second-highest in the group behind South Bow near 5.9%. The peer average yield is about 4.9%. Trailing payout ratios on GAAP earnings print above 100% for most of these names, including Enbridge near 146%. That is common in midstream, where depreciation-heavy GAAP earnings sit well below distributable cash flow, so the payout ratio overstates the strain. Still, income investors will want to see the dividend growth path hold after the raise.

Analyst view: consensus near C$80

Analyst table

Company (Ticker)	Rating	Price	Target 1Y	Upside	Analysts
Enbridge (ENB)	Buy	$66.99	$79.83	+19.2%	23
TC Energy (TRP)	Buy	$84.26	$99.57	+18.2%	24
Pembina (PPL)	Buy	$64.24	$72.89	+13.5%	19
Keyera (KEY)	Buy	$53.11	$64.07	+20.6%	15
South Bow (SOBO)	Neutral	$48.51	$51.64	+6.5%	15
Average (incl. ENB)	—	—	—	+15.6%	—

Rating & price: TSX screener (September 25, 2026). Target 1Y: S&P Global consensus via stockanalysis.com TSX forecast pages, pulled 2026-09-28 ~05:15 ET (ENB 23, TRP 24, PPL 19, KEY 15, SOBO 15). All ≥5 analysts. Upside = target ÷ price − 1.

The TSX screener rates Enbridge a Buy, and the S&P Global consensus target is C$79.83 from 23 analysts, about 19% above the screener price. The deal week brought a wave of notes: National Bank upgraded to Strong Buy with a C$81 target after coming off research restriction, BMO upgraded to Outperform at C$79.50, ATB sits at C$84, CIBC has a Buy at C$79, and Raymond James lifted its target to C$80 but kept a Hold. Peers show similar upside: TC Energy about 18%, Keyera about 21% and Pembina about 14%, with South Bow the outlier near 7%. The Street sees the selloff as overdone across the group.

Why it matters: from utility-style pipeline to bigger crude franchise

The old narrative was Enbridge as a steady Canadian utility-style pipeline with a growing dividend. The new narrative is a larger North American crude franchise: the Mainline, Line 5, Pony Express and Permian gathering, funded partly with fresh equity, under a new CEO in 2027.

Income investors care whether 5.8% is fair compensation for dilution and leverage. Growth investors care whether Tallgrass and Salt Creek are accretive fast enough to justify the raise. The open question is whether a new CEO keeps the same balance of dividend growth and deal-making.

Bull case

1. Upgrades after the pullback. National Bank and BMO both upgraded, with Street targets clustered near C$80, about 19% above the screener price.
2. Accretive deals. Management says Tallgrass and Salt Creek add to distributable cash flow per share in year one.
3. A rare yield. A 5.8% indicated yield after a 16% three-month slide is unusual for this franchise if leverage returns inside the band.

Bear case and risks

1. Dilution with leverage above target. C$3B of new equity arrived just as leverage printed near 5.1x, above the 4.5–5x ceiling.
2. Cash-flow optics. Price to free cash flow near 62x and a GAAP payout near 146% are not cheap or tidy.
3. Succession and regulation. A CEO change plus Line 5 and other regulatory risks can keep a discount on the multiple even if the deals close cleanly.

What to watch

1. Deal closings. Timing and integration for Tallgrass and Salt Creek.
2. Leverage. Whether debt to EBITDA moves back inside 4.5–5x in the next quarterly reports.
3. New CEO messaging. Michele Harradence’s first investor update after she takes over on January 1, 2027.
4. The next dividend declaration and any update to the growth outlook.

Bottom line

Enbridge has kept its reputation as a dependable dividend payer and used a tough September to extend its crude network with two accretive deals. The cost was a C$3B share sale at a depressed price, landing while leverage sat above target and the CEO was preparing to hand over. At about 26x trailing earnings and a 5.8% yield, the stock is priced near its peers on earnings but stretched on free cash flow. The next test is whether leverage moves back inside the band and the new assets show up in cash flow per share.

Video chapters

• 0:00 Hook — Tallgrass week + 5.8% yield
• 0:27 What happened — CEO, deals, equity raise
• 1:36 Overview — Enbridge vs midstream peers
• 2:03 Performance heatmap
• 2:27 Valuation
• 2:54 Dividends
• 3:23 Analyst ratings & price targets
• 3:50 Why it matters
• 4:18 Bull case
• 4:40 Bear case
• 5:03 What to watch + close

Data notes

Table figures are TSX screener values (merge tsx-2026-09-25.csv, 929 rows; September 24 close; CAD). Peers are same-sector (Industrial services) midstream and pipeline names: TC Energy, Pembina, Keyera and South Bow; Waste Connections was excluded as not a midstream peer, and preferred-share lines were skipped. Average rows include ENB and skip blank cells. Payout ratios are trailing GAAP figures; values above 100% are common in midstream when cash flow and earnings diverge. Target 1Y is S&P Global consensus via stockanalysis.com, pulled 2026-09-28 (ENB 23, TRP 24, PPL 19, KEY 15, SOBO 15 analysts; none under 5). Yahoo Finance showed a September 25 close of CA$66.13, about 1.3% below the screener print, which does not change the headline. Deal, offering and leadership figures are from Enbridge’s September 8–14, 2026 releases; leverage is from the Q2 2026 report.

Sources

• Enbridge news release, September 8, 2026 — CEO succession (Greg Ebel to retire; Michele Harradence named President and CEO)
• Enbridge news release, September 9, 2026 — Tallgrass crude transportation and Salt Creek Midstream acquisitions
• Enbridge news releases, September 9–14, 2026 — bought-deal common share offering and closing
• Enbridge Q2 2026 results release
• Broker notes: National Bank, BMO, ATB, CIBC and Raymond James (September 2026)
• stockanalysis.com — S&P Global consensus for ENB, TRP, PPL, KEY and SOBO (pulled 2026-09-28)
• TSX screener merge September 25, 2026 (929 rows)

Media credits

Enbridge logo via Wikipedia (File:Enbridge Inc, Logo 2022.svg). Wikimedia Commons: “Trans Canada Keystone Oil Pipeline” by shannonpatrick17 (CC BY 2.0); “Enbridge Tower Edmonton” by Thankyoubaby (CC BY-SA 4.0); “Enbridge Tower” by Kyle1278 (CC BY-SA 3.0); “Oil Siphon” by the U.S. Environmental Protection Agency (public domain). No AI-generated images were used.

By Andrew · stocksummarizer.com