Enbridge, Inc. (ENB) - NYSE
  • Wed, Jul. 20, 12:57 PM
    • Goldman Sachs downgrades Enbridge (ENB -1.5%) to Neutral from Buy with a $42 price target, cut from $44, and Enbridge Energy Partners (EEP -1.1%) to Sell from Neutral with a $20 target, trimmed from $21, citing project delays, more challenging fundamentals in the Bakken and oil sands regions, and increasingly strained financials.
    • From an operational standpoint, the firm notes regulatory challenges on ENB's Sandpiper and Line 3 replacement projects, growing competition in the Bakken, macro uncertainty on oil sands and Bakken volume growth.
    • Goldman says its ENB downgrade is due to valuation, as well as the fundamental challenges at its EEP MLP and ENB's relatively high leverage (greater than 6x consolidated 2016-18 debt/EBITDA).
    • Goldman issued its recommendations before news of the companies' $177M settlement with the U.S. DoJ and EPA over 2010 oil spills.
    | Wed, Jul. 20, 12:57 PM | 6 Comments
  • Wed, Jul. 20, 11:47 AM
    • Enbridge (ENB -1.4%) and Enbridge Energy Partners (EEP -1.7%) reach a $177M settlement with the U.S. Department of Justice and the EPA over 2010 oil spills in Michigan and Illinois, resolving the biggest legal question over the failure of ENB’s Line 6B, which spilled more than 20K barrels of oil into a Kalamazoo River tributary when it ruptured six years ago.
    • ENB agrees to spend at least $110M on a series of measures to prevent spills and improve operations across nearly 2K miles of its Lakehead pipeline system in the Great Lakes region, and will pay $62M in civil penalties for Clean Water Act violations plus $5.4M in unreimbursed costs incurred by the government in connection with spill cleanup; ENB also is required to replace nearly 300 miles of one of the pipelines.
    • ENB already has paid $57.8M to reimburse the government for cleanup costs tied to the spill, previously said it would pay $75M to settle claims pursued by the state of Michigan, and spent more than $800M cleaning up the accident.
    | Wed, Jul. 20, 11:47 AM | 3 Comments
  • Fri, Jul. 15, 10:26 AM
    • Enbridge (ENB -0.2%) appears to be the front-runner in bidding for a 49.9% stake in German utility EnBW's €2B ($2.2B) Hohe See offshore wind park project in the North Sea, Reuters reports.
    • Hohe See is one of Europe's largest offshore wind park projects, with a planned capacity of 500 MW, and would be EnBW's biggest park to date.
    • ENB and Australia's Macquarie, who also is vying for the stake, have emerged as key investors in Europe's energy infrastructure sector, which is seeing heavy M&A activity as pension funds and energy groups seek the steady returns big wind parks offer.
    | Fri, Jul. 15, 10:26 AM | 2 Comments
  • Thu, Jul. 14, 2:52 PM
    • Williams Cos. (WMB +5.6%) moves sharply higher following a Reuters report that it has received at least seven bids for its Canada unit, in a potential sale that could fetch $1B-$2B.
    • Interest has come from pipeline companies Enbridge (ENB -0.4%), Pembina (PBA +0.5%), Keyera (OTC:KEYUF) and Inter Pipeline (OTCPK:IPPLF), as well as three Canadian pension plans, and an unspecified number of U.S. companies, according to the report.
    • The sale process reportedly is at an advanced stage, and a deal could result by the end of the month; interest is said to be strong, highlighting demand for midstream assets that offer a steady cash flow despite volatile oil prices.
    • Also: WPZ +3.3%, EEP +0.1%.
    | Thu, Jul. 14, 2:52 PM | 14 Comments
  • Tue, Jul. 12, 5:41 PM
    • The state of Michigan selects two independent companies to analyze the financial risk of an oil pipeline rupture in the Straits of Mackinac and evaluate any alternatives to two 63-year-old underwater lines in the waterway.
    • Enbridge (ENB, EEP), owner of the twin oil pipelines in the area where lakes Huron and Michigan converge, will pay $3.5M toward the studies but will not oversee them; the pipelines are part of Line 5, which carries nearly 23M gallons/day of light crude oil and liquefied natural gas.
    • Det Norske Veritas will determine how much money would be needed to clean up a spill in the Straits, and Dynamic Risk Assessment Systems will study alternatives to Line 5 in the area.
    • Environmental groups and some elected officials have called for shutting down the portion of Line 5 beneath the Straits, which was laid in 1953.
    | Tue, Jul. 12, 5:41 PM | 5 Comments
  • Tue, Jul. 12, 9:45 AM
    • Alberta introduced two new oil and gas royalty programs yesterday that the provincial government says will encourage producers to explore new areas, boost production and keep people working.
    • The Emerging Resources Program will apply to wells being drilled in the early stages of development, and allows producers to pay a flat 5% royalty rate, while the Enhanced Hydrocarbon Recovery Program is aimed at boosting production from aging wells.
    • Alberta’s NDP government within only a year has gone from threatening to increase oil and gas royalties to having to provide royalty incentives to stimulate drilling activity, Financial Post's Claudia Cattaneo writes.
    • Among oil and gas companies currently active in Alberta: SU, ECA, CVE, CNQ, ENB, TRP, OTCPK:HUSKF, IMO, XOM, COP, PDS, CEO, RDS.A, RDS.B
    | Tue, Jul. 12, 9:45 AM | 30 Comments
  • Fri, Jul. 8, 6:45 PM
    • Canada's National Energy Board says it suspended a review of Enbridge's (NYSE:ENB) request to extend its permit for the proposed Northern Gateway crude oil pipeline project.
    • ENB and 31 aboriginal partners had filed a request with the NEB in May for a three-year extension of the permit as it sought greater legal and regulatory certainty.
    • The regulator also says it is suspending review of any filings from Northern Gateway regarding compliance with the 209 conditions attached to the project.
    | Fri, Jul. 8, 6:45 PM | 14 Comments
  • Tue, Jul. 5, 4:59 PM
    • Canadian Prime Minister Trudeau reiterates his opposition to Enbridge's (NYSE:ENB) Northern Gateway oil pipeline, casting further doubt on the project's prospects a week after a Canadian court overturned federal approval of the project and sent it back to Trudeau's cabinet to reconsider.
    • "On the Northern Gateway pipeline, I've said many times, the Great Bear Rainforest is no place for a crude oil pipeline," the PM says.
    • Canada's former Conservative government had approved the pipeline, which would carry oil from the Alberta oil sands to British Columbia for export, but Trudeau's Liberal government has promised a moratorium on oil tanker traffic along the northern B.C. coast.
    | Tue, Jul. 5, 4:59 PM | 14 Comments
  • Thu, Jun. 30, 4:48 PM
    • Canada’s Federal Court of Appeal overturns Enbridge’s (NYSE:ENB) permits for the Northern Gateway pipeline, ruling that the federal government did not “fulfill its duty to consult” with First Nations communities.
    • “The inadequacies - more than just a handful and more than mere imperfections - left entire subjects of central interest to the affected First Nations, sometimes subjects affecting their subsistence and well-being, entirely ignored,” the court wrote.
    • ENB has spent years working on the Northern Gateway proposal, which would cost at least C$7.9B to build, according to National Energy Board estimates.
    | Thu, Jun. 30, 4:48 PM | 9 Comments
  • Thu, Jun. 30, 1:13 PM
    • Canadian oil and gas companies say they are not worried about the new North America-wide energy and climate change strategy announced yesterday by Canadian PM Trudeau, U.S. Pres. Obama and Mexican Pres. Nieto, which includes reducing methane gas emissions from the oil and gas industry by 40%-45%.
    • The Canadian Association of Petroleum Producers says “having our competitors held to a similar standard is going to be good for all of us," since Canadian producers already are under pressure to cut methane emissions and pay carbon levies.
    • TransCanada (NYSE:TRP) says it welcomed the agreement and cited its growing natural gas pipeline business in Mexico and its acquisition of Columbia Pipelines in the U.S. as evidence of the need for an interconnected energy system.
    • The pact would force the three countries to add renewables, nuclear projects or carbon capture and storage projects on coal-fired power plants that would raise the total to 50% from the current 37%.
    • Among other relevant tickers: SU, ECA, ENB, CVE, CNQ, OTCPK:HUSKF, IMO, XOM, COP, PDS, CEO, RDS.A, RDS.B
    | Thu, Jun. 30, 1:13 PM | 33 Comments
  • Tue, Jun. 28, 5:42 PM
    • The Enterprise Products Partners (NYSE:EPD) natural gas processing plant in Pascagoula, Miss., remains closed after today's fire, which is now under control but forced the closure of the 225-mile Destin gas pipeline system that can carry 1.2B cf/day from offshore fields to Pascagoula.
    • Destin, majority-owned by BP with Enbridge (NYSE:ENB) a minority partner, declares force majeure as a result of the fire.
    • Murphy Oil (NYSE:MUR) says it shut its Thunder Hawk platform, which also is connected to the Destin system and has the capacity to handle 60K bbl/day of oil and 70M cf/day of natural gas.
    • LLOG, partially owned by the Blackstone Group (NYSE:BX), says it is shutting its Delta House floating production system, which has 100K bbl/day of oil and 240m cf/day of gas capacity.
    • Williams Partners (NYSE:WPZ) says the Gulfstream Pipeline, a joint venture with Spectra Energy Partners (NYSE:SEP), appears to be unaffected.
    • BP, whose Thunder Horse and Na Kika platforms tie into the Destin pipeline and together produce nearly 400K bbl/day of oil and more than 700M cf/day of natural gas, has not commented; the status of other Gulf producers which operate facilities that connect to Destin, including Stone Energy (NYSE:SGY) and Freeport McMoRan (NYSE:FCX), is not known.
    | Tue, Jun. 28, 5:42 PM | 10 Comments
  • Tue, Jun. 28, 11:58 AM
    • A Canadian government study yields a surprising result about what happens to oil sands crude in a freshwater spill: it floats, at least for a while, sinking more slowly than conventional oil, unless exposed to high temperatures and weathering.
    • The results may help dispel some concern that a spill of diluted bitumen would be more difficult to clean up, and help companies make the case for pipeline projects such as Kinder Morgan’s (KMI +0.9%) Trans Mountain expansion and Enbridge’s (ENB -0.1%) Northern Gateway pipeline.
    • The study follows a 2015 report by the U.S. National Academy of Science that showed diluted bitumen tended to sink quickly after being spilled in fresh water.
    • Among other relevant tickers: SU, ECA, CVE, CNQ, TRP, OTCPK:HUSKF, IMO, XOM, COP, PDS, CEO, RDS.A, RDS.B
    | Tue, Jun. 28, 11:58 AM | 62 Comments
  • Wed, Jun. 22, 10:36 AM
    • Alberta's tougher rules in determining if companies are financially strong enough to buy oil and gas assets could chill M&A activity in the province, energy industry players warn.
    • The Alberta Energy Regulator announced Monday that companies seeking to buy oil and gas properties will need to show their deemed assets exceed their deemed liabilities by 2x or more after the purchase, after deemed assets previously needed only to be equal to deemed liabilities.
    • More than 200 companies that met the prior standard were ruled out as buyers by the stricter financial solvency test, a move that Industry reps say will limit the number of companies allowed to buy oil and gas assets.
    • Among oil and gas companies currently active in Alberta: SU, ECA, CVE, CNQ, ENB, TRP, OTCPK:HUSKF, IMO, XOM, COP, PDS, CEO, RDS.A, RDS.B
    | Wed, Jun. 22, 10:36 AM | 32 Comments
  • Tue, Jun. 21, 11:16 AM
    • Enbridge (ENB, EEP), which owns twin oil pipelines in the area where Lakes Huron and Michigan converge, says it plans to spend $7M over the next two years on additional equipment that could be deployed quickly in the event of a spill, while trying to reassure locals that it probably never would be needed.
    • ENB announces the equipment purchase as it kicks off a three-day public relations tour in northern Michigan designed to convince residents its Line 5 pipeline has never leaked, is in good shape and poses no risk to the scenic area and its tourism-based economy.
    • Some elected officials have raised concerns about Line 5 - which carries nearly 23M gallons of light crude oil and liquefied natural gas daily - since another ENB pipeline ruptured in southern Michigan in 2010, releasing more than 800K gallons of oil into the Kalamazoo River and a tributary creek.
    | Tue, Jun. 21, 11:16 AM | 4 Comments
  • Wed, Jun. 15, 7:18 PM
    • A shutdown of Suncor Energy's (NYSE:SU) MacKay River oil sands facility near Fort McMurray, Alberta, is being prolonged by an Enbridge (NYSE:ENB) pipeline connected to the facility has clogged after heavy oil cooled in the system, Reuters reports.
    • The pipeline clogged after last month's Alberta wildfire forced oil sands producers to shut facilities, including thermal projects that require ongoing heat to operate effectively.
    • It is not yet clear how long repairs would take, but the extended shutdown is a setback for SU, which last week cut its full-year production guidance but said it expected all its operations in the area to be at normal rates by the end of June.
    • Separately, ConocoPhillips (NYSE:COP) says 73% of wells at its Surmont oil sands project in Alberta are back in production or injecting steam, with no unexpected complications affecting the effort, after being shut down due to the fires.
    | Wed, Jun. 15, 7:18 PM | 21 Comments
  • Wed, Jun. 1, 6:28 PM
    • Forget Keystone XL and Energy East... TransCanada (NYSE:TRP) shares have been rallying since mid-March, shaking off Pres. Obama’s rejection of Keystone XL as well as the hurdles facing the even bigger C$15.7B Energy East pipeline that would link the Alberta oil sands to Canada’s Atlantic coast.
    • TRP is now seen as less dependent on winning approval for huge projects, according to Manulife fund manager Steve Belisle, who was among investors who met with TRP CEO Russ Girling in Montreal yesterday and noticed less emphasis on big pipelines.
    • TRP is still pursuing Keystone XL and remains committed to Energy East, but small to medium-sized projects form the basis of its plan to increase its dividend payments 8%-10%/year through 2020 as larger developments are delayed, and the company has said the acquisition of gas-focused Columbia Pipeline may add to that growth.
    • The market loves the Columbia deal because it gives TRP a foothold in the Marcellus shale gas region of the U.S., complimenting its existing gas system, and has helped to effectively eliminate TRP’s valuation discount relative to Enbridge (NYSE:ENB) based on earnings and cash flow, Bloomberg's Michael Kay says.
    | Wed, Jun. 1, 6:28 PM | 3 Comments
Company Description
Enbridge, Inc. transports, generates and distributes energy in Canada and U.S. The company is involved in natural gas transmission and midstream businesses. It operates through five business segments: Liquids Pipelines, Gas Distribution, Gas Pipelines, Processing and Energy Services, Sponsored... More
Industry: Oil & Gas Pipelines
Country: Canada