Sep. 17, 2014, 8:25 AM
- Enbridge (NYSE:ENB) proposes to transfer its 66.7% interest in the U.S. segment of the Alberta Clipper Pipeline to its Enbridge Energy Partners (NYSE:EEP) affiliate for ~$900M in cash and units; EEP owns the other 33.3% interest.
- ENB says EEP's valuation has improved to the point where a drop down is now accretive to both EEP's distributable cash flow and to ENB's earnings.
- ENB says the proposed transfer would not require any equity issuance by EEP, and is expected to be immediately accretive to distributable cash flow per unit by ~3%.
Sep. 4, 2014, 6:15 PM
- The president of the Northern Gateway pipeline says the possibility of a 2018 start-up date is “quickly evaporating," since Enbridge (NYSE:ENB) - the company building the project - is focused on getting support from First Nations groups along the pipeline’s route through British Columbia.
- Northern Gateway, which has been in the works for six years, received regulatory approval in June, but ENB clearly is in no hurry to put shovels in the ground.
- If built, Northern Gateway would ship 525K bbl/day of diluted oil sands crude from the Edmonton area to Kitimat, B.C., where the oil would be loaded onto tankers and shipped to Asia.
Aug. 25, 2014, 12:46 PM
- Enbridge (NYSE:ENB) finds a way to ship more Alberta oil to the U.S. that does not require a review similar to the one faced by the Keystone XL pipeline - switching crude from one pipeline to another before it crosses the border - as the State Department OKs the company to move ahead with its cross-border Alberta Clipper project under authority granted by previously issued permits.
- ENB plans to construct a link between the Alberta Clipper and the adjacent Line 3 pipeline; by transferring oil from the Clipper to Line 3 before it crosses the border and then back again after the oil is in the U.S., ENB does not need the U.S. presidential permit required for new lines.
- The plan is drawing criticism from environmental groups opposed to new imports from Canada’s oil sands because mining and processing the fuel releases more climate-warming carbon than other types of crude.
Aug. 19, 2014, 11:37 AM
- Enbridge's (ENB +0.4%) pipeline to carry tar sands oil between Oklahoma and Illinois can proceed, a federal judge ruled yesterday after rejecting arguments by the Sierra Club and the National Wildlife Federation that the failure to conduct an environmental impact review of the pipeline violated the National Environmental Protection Act.
- “Plaintiffs are wrong to insist that any federal agency had an obligation under NEPA or any other statute to conduct an environmental review” of the pipeline’s impact, the judge said.
- The pipeline will carry crude oil from Pontiac, Ill., to Cushing, Okla.
Aug. 11, 2014, 6:14 PM
- Enbridge (NYSE:ENB) says it has no interest in imitating rival Kinder Morgan's plan to consolidate its publicly traded units into a single company and cannot see a competitive advantage coming from such a move.
- ENB says it already has a highly competitive cost of capital, and is well positioned to deliver double-digit dividend per share and earnings per share growth through 2017.
Aug. 1, 2014, 12:19 PM
- Enbridge (ENB -0.2%) says it is planning to build a new rail loading facility adjacent at the south point of its Flanagan South pipeline near Oklahoma to help move some of its heavy crude product down the U.S. Gulf coast.
- In this morning's earnings conference call, ENB's president of liquids pipelines projected the cost of the facility at ~$150M, and said it should be able to handle 140K bbl/day of heavy crude a day and come online by early 2016.
- ENB already operates three rail terminals in the U.S. and Canada that can handle a total of ~190K bbl/day of crude, and has one more terminal under construction in Manitoba that is expected to begin service in early 2015.
- Earlier: Enbridge posts Q2 earnings beat on higher pipeline demand.
Aug. 1, 2014, 8:58 AM
- Enbridge (NYSE:ENB) reported slightly better than expected Q2 earnings, helped by higher shipment volumes on the Canadian Mainline and regional oil sands systems.
- ENB benefited from a 23% Y/Y rise in average deliveries on the Canadian Mainline to 1.96M bbl/day, while deliveries on the regional oil sands system, comprising the Athabasca mainline and Waupisoo pipeline, soared nearly 72% to 690K bbl/day.
- Says strong supply from western Canada and increased downstream refinery demand led to higher throughput on the Canadian Mainline system, while higher volumes were also achieved on the Athabasca mainline due to new projects coming into service.
- Says construction of the Seaway Twin expansion is now mechanically complete, and expects to complete the Flanagan South project this fall.
- Reaffirms FY 2014 earnings guidance, seeing EPS of C$1.84-C$2.04 vs. C$1.96 analyst consensus estimate.
Aug. 1, 2014, 7:10 AM
Jul. 31, 2014, 5:30 PM
Jul. 30, 2014, 8:59 AM
Jul. 17, 2014, 11:49 AM
- In a sign of the mounting tensions over new energy infrastructure, Enbridge (ENB +0.5%) is raising the possibility of an "attack" on one of its pipelines in an emergency response plan filed with Canada's National Energy Board tied to its Line 9 reversal and expansion.
- The specter of an attack comes as efforts to expand markets for Alberta’s oil sands production face intense resistance from environmentalists and First Nations; groups have vowed to set up blockades to stymie ENB’s Northern Gateway pipeline through British Columbia.
- Line 9 is designed to move crude from western Canada and North Dakota to Quebec refineries.
Jul. 12, 2014, 8:25 AM
- The problem facing Canada isn't the Keystone pipeline or Pres. Obama or environmentalists - it's the oil sands, and they've got to be cleaned up and the head-in-the-sand denials chased way or the country will be stuck with a "baby seal hunt" image, Diane Francis writes in the Financial Post.
- The columnist thinks she knows the right person to lead the clean-up: Jeff Immelt - "an American leader with stature in Washington, on Wall Street, in the oil patch and in Silicon Valley" - who said this week that GE will help companies clean up the oil sands.
- The only way to stop the environmental excuses, Immelt believes, is for the industry to collaborate and voluntarily establish lower emissions targets that would make the oil sands competitive with any other fuel source in the world - without such a promise to provide cleaner energy, "all bets are off."
- Some related companies: XOM, IMO, SU, RDS.A, RDS.B. ENB, TRP, CNQ, CVE, CVX, COP, BP, KMP, WPZ, TOT, STO, CEO, SNP, PTR, HUSKF, ATHOF, COSWF.
Jul. 11, 2014, 6:17 PM
- A 60-year-old Enbridge (ENB) pipeline beneath the environmentally sensitive shipping channel through the Straits of Mackinac would cause disastrous consequences for the Great Lakes if it ruptured, according to a new report.
- The Straits' oscillating currents are part of what makes it such a harmful place for a pipeline breach, the report says; as the current changes direction every few days, contaminants could be carried back and forth across the straits several times.
- ENB has said its Line 5 pipeline is in good shape and not in danger of rupturing; in December, ENB increased the amount of oil passing through it to 540K bbl/day.
Jul. 10, 2014, 11:56 AM
- Enbridge (ENB -0.5%) CEO Al Monaco says the recent ruling by Canada's Supreme Court recognizing an aboriginal title claim in British Columbia will not impact the proposed Northern Gateway pipeline.
- Monaco says the decision confirms ENB has been taking the right approach all along by reaching out to communities in the pipeline right of way and offering economic participation; so far, 26 First Nations have signed up as equity owners.
- Monaco also says there is no interest in changing the Northern Gateway end point to Prince Rupert from Kitimat on the B.C. coast as a way to speed construction.
Jul. 10, 2014, 9:56 AM
- Enbridge (ENB -0.5%) says it is in talks with Alaska about building a pipeline to ship natural gas from the North Slope, describing the project as a potential alternative to an Alaskan pipeline project backed by rival TransCanada (TRP -0.6%).
- The proposed $7.7B project would carry ~500M cf/day of gas from Prudhoe Bay to Point MacKenzie, with a spur line to Fairbanks, and aim to start up by late 2020; it would mostly serve to offset declining gas production from the Cook Inlet.
- Alaska is weighing the project as a backup if a competing proposal from TRP fails to move ahead.
Jul. 9, 2014, 11:29 AM
- Cenovus Energy (CVE -0.8%) CEO Brian Ferguson raps Liberal Party leader Justin Trudeau and NDP leader Thomas Mulcair for opposing the proposed Northern Gateway (ENB) pipeline for "political gain."
- "What they are saying [about] the most scrutinized project that we ever had the National Energy Board look at [is that] they would chose to ignore this very stringent regulatory process for what I think is their own political gain,” Ferguson says.
- Ferguson, whose company is one of Northern Gateway's funding partners, says shippers remain supportive and will follow up with more specific commitments in the future.
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