Enbridge reaches final investment decision on 600 MW Texas solar project

CALGARY - Enbridge Inc. (NYSE:ENB), a $97.2 billion market cap energy infrastructure giant with a "Fair" financial health score according to InvestingPro, announced Tuesday it has reached a final investment decision on Clear Fork, a 600-megawatt solar project near San Antonio, Texas, with construction already underway.

The utility-scale facility is expected to enter service during summer 2027 with an estimated project cost of US$900 million. Meta Platforms, Inc. has signed a long-term contract for 100% of the renewable output to support its data center operations. The project adds to Enbridge’s impressive track record, which includes 22 consecutive years of dividend increases and a current dividend yield of 6.05%.

"Clear Fork demonstrates the growing demand for renewable power across North America from blue-chip companies who are involved in technology and data center operations," said Matthew Akman, Executive Vice President, Corporate Strategy, & President, Power at Enbridge.

The company expects the project to be accretive to cash flow and earnings per share starting in 2027. With a robust 42.6% gross profit margin and strong revenue growth of 43% over the last twelve months, Enbridge continues to demonstrate solid financial performance. According to InvestingPro’s analysis, the stock appears to be trading near its Fair Value, with additional insights available in the comprehensive Pro Research Report.

Urvi Parekh, Head of Global Energy at Meta, stated, "We are thrilled to partner with Enbridge to bring new renewable energy to Texas and help support our operations with 100% clean energy."

The Clear Fork project represents Enbridge’s continued expansion in the renewable energy sector. The company noted in its press release statement that it’s utilizing its "financial strength, supply chain reach and construction expertise under a low-risk commercial model" for the development.

Enbridge, headquartered in Calgary, Alberta, connects millions of people to energy through its North American natural gas, oil and renewable power networks and its growing European offshore wind portfolio. The company maintains a strong market position with relatively low price volatility, as noted in InvestingPro’s detailed analysis, which includes over 30 additional key metrics and insights.

In other recent news, Enbridge Inc. reported notable developments across several fronts. The company, alongside Energy Transfer LP, is working on a project called the Southern Illinois Connector to enhance pipeline capacity, aiming to transport up to 200,000 barrels of crude oil per day to the U.S. Gulf Coast. Additionally, Enbridge has partnered with I Squared Capital and MPLX LP to acquire a significant stake in the Matterhorn Express Pipeline, a major conduit for natural gas from the Permian Basin to Texas. This strategic investment underscores Enbridge’s ongoing commitment to infrastructure development.

On the financial side, RBC Capital Markets has maintained an Outperform rating for Enbridge shares, setting a price target of Cdn$67. This positive outlook follows Enbridge’s recent financial results, which exceeded expectations, as highlighted by RBC analyst Maurice Choy. Meanwhile, S&P Global Ratings revised its outlook on Enbridge Gas Inc. to stable from negative, supported by the Ontario Energy Board’s decision to maintain the current incentive rate-setting mechanism through 2028.

Furthermore, Enbridge has stated that any new Canadian oil pipeline projects would require legislative changes for shortened approval timelines, reflecting the complexities of expanding oil exports from western Canada. These recent developments demonstrate Enbridge’s active role in both expanding its infrastructure capabilities and maintaining a strong financial standing.

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