Inflation Won't Be a Problem for This Energy Giant
The energy sector is a key part of the inflation problem today, as rising prices for oil and natural gas are causing ripple effects across the world. However, the energy industry is broad and complex, and investors need to think carefully about where they put their cash lest they end up exposed to more risk than they expect. Enbridge (NYSE: ENB) is an interesting high-yield energy name that even conservative investors could love.
Based in Canada, Enbridge's midstream business spans across North America. It helps energy companies that drill for oil and natural gas move, store, process, and export these commodities. This is an important distinction, because financial results for oil drillers tend to be very volatile since they are driven by commodity prices. Enbridge, on the other hand, simply charges fees for the use of its assets. That means that the price of what is flowing through its system is much less important than the volume that is flowing through it.
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Source Fool.com
