Two Canadian midstream names have offered guidance for EBITDA and dividend growth in 2025.
TC Energy Corporation (TRP) and Enbridge (ENB) recently provided 2025 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 2025 financial guidance build on a strong year for midstream, as midstream outperformed other energy subsectors this year. Midstream is less sensitive to moves in commodity prices compared to other sectors of energy, given midstream companies’ fee-based business models, which support stable cash flows.
Additionally, midstream companies can offer generous income regardless of the interest rate environment, making the sector a compelling option during the Fed’s rate-cutting cycle.
Midstream Player Enbridge Provides 2025 Guidance
Enbridge, a top three holding in ENFR by weight, on Tuesday announced its 2025 financial guidance and reaffirmed 2024 full year guidance for EBITDA.
Enbridge expects 2025 adjusted EBITDA of $19.4 billion to $20 billion. Additionally, the company reaffirmed its 2023 to 2026 outlook of 7–9% EBITDA growth.
The company also announced its quarterly common share dividend for 2025 will be increased by 3%. The dividend, payable March 1, marks Enbridge’s 30th consecutive annual increase.
See more: 3Q24: Another Strong Quarter for Midstream/MLP Payouts
TC Energy
TC Energy, another name in ENFR, provided an updated growth outlook at its investor day on November 19. The company now expects 2025 comparable EBITDA to be $10.7 to $10.9 billion. This equates to growth of 7–9% relative to the midpoint of 2024 guidance.
The company has guided to a 5–7% compound annual growth rate for comparable EBITDA from 2024 to 2027. TC Energy reaffirmed long-term sustainable dividend growth of 3–5%. The company has had 24 consecutive years of dividend increases.
TC Energy spun off its crude assets into South Bow Corporation (SOBO CN) in October. The company retained its extensive natural gas infrastructure and power and energy solutions businesses.
See more: Meet the New Canadian Name in Midstream
For more news, information, and analysis, visit the Energy Infrastructure Channel.
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