Enbridge Upgraded to 'Outperform' Amid North American Oil Growth Prospects

National Bank Financial analyst Patrick Kenny upgraded Enbridge Inc. (ENB-T) to 'outperform' from 'sector perform', citing faith in North American oil production growth.

The upgrade comes after Enbridge's $3-billion equity financing, which will partially fund the US$2.55-billion acquisition of Tallgrass Energy LP's crude oil business and the US$0.6-billion tuck-in of Salt Creek Midstream's crude oil gathering business.

Kenny believes Enbridge's liquids franchise 'remains well positioned to benefit from durable North American crude supply growth', with the company's transcontinental super-systems currently delivering 6 million barrels per day (mbpd) of crude oil and liquids across the US and Canada.

In a client note, Kenny said that through 2035, Enbridge expects gross production to increase by more than 1.0 mbpd in the WCSB, 0.9 mbpd in the Permian Basin, and 0.2 mbpd across the Bakken and Rockies.