Why Enbridge Stock Slumped Nearly 20% in 2020
Shares of Enbridge (NYSE: ENB) declined by 19.6% in 2020, according to data provided by S&P Global Market Intelligence. Weighing on the oil pipeline company was all the volatility in the oil market last year.
While oil prices and demand cratered in 2020, that didn't have much impact on Enbridge's financial results. The company expected to achieve the midpoint of its initial financial guidance. It anticipated offsetting headwinds, like lower volumes and energy services results, with cost reductions, lower interest rates, and higher rate settlements on some of its pipelines. Because of those initiatives, the company generated more than enough cash to cover its dividend and the majority of its expansion spending, which enabled the company to maintain a strong balance sheet.
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Source Fool.com
