Enbridge Stock And Canadian Midstream Shares Worth Watching As Oil Prices Rise

Oil prices are back in the spotlight and Canadian energy infrastructure stocks are suddenly on a lot more watchlists. Higher crude, stickier inflation risks and the prospect of more Bank of Canada rate hikes are reshaping where capital feels comfortable. This piece walks through three Canadian midstream operators exposed to these cross currents and explains how the same news can create very different setups for investors.

The three Canadian midstream stocks in this piece are only a starter set. The full screen on Simply Wall St surfaced 4 more Canadian energy infrastructure operators with equally interesting stories around pipelines, storage and LNG that are not covered here. To map out the broader universe and identify which midstream operators best fit your income, risk and quality preferences, head into the Canadian Energy Infrastructure & Midstream Operators screener.

Enbridge (TSX:ENB)

Enbridge is the anchor tenant for this Canadian midstream theme, with pipes, storage and gas networks that turn higher throughput into contract-driven cash flow. This is why attention is squarely on how its growth backlog converts into earnings power.

"Enbridge is positioned to use its approximately $41b secured growth backlog and roughly $50b identified organic opportunity set through 2030 to add new regulated and contracted assets, which can lift future revenue, EBITDA and earnings as projects enter service."

What matters from here is how one pressure on the balance sheet plays out against that project pipeline and the margins attached.

Enbridge is a CA$148.2b midstream company built around crude and gas transport, storage and utility services, with most revenue coming from liquids pipelines at about CA$63.6b, plus CA$11.2b from gas distribution, CA$6.8b from gas transmission and CA$0.6b from renewables.

That balance sheet tug of war is exactly what the full narrative for Enbridge unpacks, including where contracts, funding plans and interest costs could be quietly reshaping Enbridge’s risk profile.

TC Energy (TSX:TRP)

TC Energy is the textbook example of why this screener exists, with an enormous web of gas pipelines and storage assets that turn contracted throughput into cash flow as North American energy demand, LNG buildout and policy choices keep shifting around it.

TC Energy runs a 94,171 kilometre natural gas pipeline network and large storage hubs across Canada, the U.S. and Mexico, moving gas to utilities, power plants, LNG terminals and industrial users. Most revenue comes from U.S. Natural Gas Pipelines at about CA$7.2b, Canadian Natural Gas Pipelines at roughly CA$5.9b and Mexico Natural Gas Pipelines near CA$1.7b, plus around CA$1.0b from Power and Energy Solutions. The stock is a roughly CA$88.2b large cap in this midstream group.

"Investors may be overestimating TC Energy's long-term revenue and EBITDA growth by assuming that the current surge in North American natural gas demand, driven by LNG export growth, coal-to-gas conversions, data center buildouts, and electrification, will persist at elevated rates, despite mounting global pressures for renewables and potential demand destruction for fossil fuels over the long run."

The real swing factor is what happens if one quietly embedded assumption about long term gas throughput proves even slightly too optimistic.

If that embedded demand curve proves even slightly too rosy, the full narrative for TC Energy shows where TC Energy could still accelerate cash flow and why the risk may be masking upside.

South Bow (TSX:SOBO)

South Bow is a pure play on the Canadian midstream theme, running 4,900 kilometres of pipelines and storage that link Alberta crude to U.S. refineries. Most revenue comes from the Keystone Pipeline System at about $1.6b, plus $371 million from Marketing and $22 million from Intra Alberta & Other, with the stock valued around $10b.

For this Canadian midstream screen, South Bow is the pure infrastructure story, with pipes, terminals and contracts connecting oil sands barrels to deep U.S. markets. Higher oil supports volumes but does not directly dictate its tolls.

"Successful execution and on time, on budget delivery of the Blackrod connection, with commissioning underway and cash flows expected to ramp in the second half of 2026, should provide visible, contracted revenue growth and support higher normalized EBITDA."

What really matters now is how one less visible constraint on future throughput shapes the balance between steady toll income and funding costs.

To see how that constraint could flip into accelerating cash generation, read the full narrative for South Bow to understand where South Bow’s throughput, contracts and funding story really converge.

Seeking Alternatives Before Momentum Flies

Fresh ideas move first. By the time every investor spots a breakout, early entry points can be gone. Scan these curated shortlists while it matters and look for opportunities to get in earlier.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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