Enbridge and Delek Logistics Partners compete in high-yielding energy midstream sector
What happened
Enbridge and Delek Logistics Partners are competing in the high-yielding energy midstream sector. Reports note that Delek Logistics Partners offers a yield over 8%, while Enbridge is approaching 6%. Both companies have long records of increasing their dividend payouts.
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Why it matters
Enbridge operates a diversified platform, with over 98% of its earnings derived from regulated rate structures or take-or-pay contracts. This predictable revenue stream has allowed the company to meet its financial guidance for 20 consecutive years.
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Who's involved
- EnbridgeCanadian energy transportation company competing in the midstream sector
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- EnbridgeSpeculative
Competitive market pressure from Delek Logistics Partners and the high-yielding sector might lead to a decline in stock price.
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The entities involved
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Enbridge
Canadian energy transportation company