Article Thesis

The market does not like anything oil-related right now, due to a combination of low oil prices and the fact that oil consumption impacts global climate change. Oil is, however, still an integral part of our lives, and that will not change anytime soon. Low oil prices, meanwhile, are not a problem for those that make their money transporting it. Enbridge (ENB), one of the biggest midstream companies in North America, has a diversified business model transporting oil & natural gas, while also building out its renewable energy portfolio. The market treats the company like it will be significantly impacted by low oil prices, but the truth is that its cash flows are very resilient versus commodity price changes. At the current valuation, and with a juicy 8%+ dividend yield, Enbridge looks attractive.

Here is a short comparison between Enbridge and other large-cap midstream players:

Source: Stock Rover