What happened

Shares of Enbridge (NYSE:ENB) rallied 13.2% in November, according to data provided by S&P Global Market Intelligence. Several factors fueled the energy stock last month.  

So what

Enbridge got November off to a good start by posting solid third-quarter results. While its earnings and cash flow dipped modestly, the company remains on track to achieve its full-year forecast despite all the oil market volatility this year. 

Pipelines laid out for construction at sunset.

Image source: Getty Images.

Meanwhile, the Canadian oil pipeline company set new ESG targets last month, including a goal to achieve net-zero carbon emissions by 2050. One way the company aims to deliver on this ambitious plan is b focusing on building more offshore wind farms in Europe. 

Analysts liked the quarter and Enbridge's ESG target, leading several to boost their price targets on the stock last month. Overall, they see significant upside in Enbridge's stock. Driving that view is the company's strong contract backlog, which should help it grow its cash flow per share by a 5% to 7% annual pace through 2022.

The company also got some good news on the project front as it received the final permits and approval to start construction on the Line 3 project in Minnesota. That will finally allow the company to begin work on the largest U.S. section of the $2.9 billion cross-border oil pipeline.  

Now what

Despite rallying last month, Enbridge's shares remain down by about 15% on the year even though it's still on track to achieve its initial forecast. Because of this year's sell-off, the energy infrastructure company's dividend yields an attractive 7.4%. With the company making progress on its expansion plans, it's a compelling buy for income-seeking investors.  

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.