During the September 8 episode of Mad Money, Jim Cramer turned his attention to Enbridge Inc. (NYSE:ENB), examining escalating geopolitical tensions. He commented:
As long as the war with Iran drags on, it's easy to recommend the refiners like a Valero or a Marathon. I don't see it ending any time soon, not with the US and Iran trading volleys this evening at islands and ships in the Strait. But how about a pipeline that moves about 30% of all crude produced in North America? Now, I'm talking about Enbridge which has a 5.5% yield. Also has a natural gas, you know, it transports 20% of the natural gas that's consumed in America. Okay, it's Canadian, but it's not caught up in the tariff fight because slapping tariffs on Canadian energy would be economic suicide for our country.
Cramer's focus on Enbridge Inc. (NYSE:ENB) highlights the structural dominance of its midstream network. The company operates as a significant transport network for North American energy, moving approximately 30% of all crude produced on the continent. Moreover, its vast utility and transmission network handles 20% of the natural gas consumed in the United States. The company's toll-road business model generates highly predictable cash flows, supporting an attractive dividend yield of roughly 5.6%. For income-focused investors, the combination of essential operational volume and reliable capital return creates a defensive cushion during volatile market cycles.
The company's defensive moat goes into cross-border trade and regional security. As Cramer pointed out, imposing punitive tariffs on Canadian energy imports would amount to severe economic self-harm for the United States, given the deep interdependence of North American energy grids.
Even with steady toll revenues, Enbridge Inc. (NYSE:ENB) carries a heavy debt load that comes with the territory of running massive pipeline networks, with long-term debt sitting at approximately C$104 billion. Because building and maintaining energy infrastructure requires heavy borrowing, higher interest rates hit financing costs, which can occasionally weigh on income-seeking investors.
#enbridge #natural #Iran #America
As long as the war with Iran drags on, it's easy to recommend the refiners like a Valero or a Marathon. I don't see it ending any time soon, not with the US and Iran trading volleys this evening at islands and ships in the Strait. But how about a pipeline that moves about 30% of all crude produced in North America? Now, I'm talking about Enbridge which has a 5.5% yield. Also has a natural gas, you know, it transports 20% of the natural gas that's consumed in America. Okay, it's Canadian, but it's not caught up in the tariff fight because slapping tariffs on Canadian energy would be economic suicide for our country.
Cramer's focus on Enbridge Inc. (NYSE:ENB) highlights the structural dominance of its midstream network. The company operates as a significant transport network for North American energy, moving approximately 30% of all crude produced on the continent. Moreover, its vast utility and transmission network handles 20% of the natural gas consumed in the United States. The company's toll-road business model generates highly predictable cash flows, supporting an attractive dividend yield of roughly 5.6%. For income-focused investors, the combination of essential operational volume and reliable capital return creates a defensive cushion during volatile market cycles.
The company's defensive moat goes into cross-border trade and regional security. As Cramer pointed out, imposing punitive tariffs on Canadian energy imports would amount to severe economic self-harm for the United States, given the deep interdependence of North American energy grids.
Even with steady toll revenues, Enbridge Inc. (NYSE:ENB) carries a heavy debt load that comes with the territory of running massive pipeline networks, with long-term debt sitting at approximately C$104 billion. Because building and maintaining energy infrastructure requires heavy borrowing, higher interest rates hit financing costs, which can occasionally weigh on income-seeking investors.
#enbridge #natural #Iran #America
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