Dislocation = Opportunity In Enbridge Preferred Shares
Keubiko • 36 Comments
Keubiko • 36 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.
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, May 12, 12:49 PM
- Enbridge (ENB +2.2%) is higher after reporting better than expected Q1 earnings, helped by increased shipments and new projects coming into service.
- ENB says it delivered ~2.5M bbl/day of crude oil through its Canadian mainline system during Q1, up from 2.2M bbl/day in the year-ago quarter, and ~2.7M bbl/day via its Lakehead pipeline system, up from 2.3M bbl/day a year earlier.
- ENB's Q1 results beat expectations on “stronger than expected contributions” from its liquids pipeline business, National Bank Financial says.
- ENB says it is slowly resuming operations after last week's fire-related shutdowns, which reduced deliveries from its regional oil sands pipelines ~900K bbl/day; while the company says it is too early to determine the financial impact of the shutdowns, it does not expect the disruption to have a significant effect on full-year results.
- ENB said yesterday that it restarted its 550K bbl/day Line 18 pipeline following last week's shutdown.
Mon, May 9, 3:19 PM
- Crude oil prices erased all of Friday's gains and more, as June futures ended the pit session 2.7% lower to $43.55/barrel even as the massive wildfires in the heart of Canada's oil sands continue to spread, albeit more slowly.
- But positioning in the oil market is very stretched, and analysts say speculators already hold the largest number of wagers for a rise in WTI futures since last summer and near-record high bullish bets on Brent, so the scope for further gains was limited without more clarity on the extent of damage to oil facilities or supply outages.
- The sacking of Ali al-Naimi as head of Saudi Arabia’s oil ministry also may be a reason why oil prices failed to maintain early gains, as successor Khalid al-Falih, the former head of Aramco, is expected to follow the strategy of protecting the country’s market share.
- Yesterday, Cnooc’s Nexen (NYSE:CEO) operations to the south of Fort McMurray reportedly suffered minor damage, while Suncor (NYSE:SU) says its facilities have not been damaged and is beginning to implement a plan for a return to operations.
- Other relevant tickers: RDS.A, RDS.B, XOM, IMO, COP, OTCPK:HUSKF, OTCPK:ATHOF, CNQ, CVE, OTCPK:MEGEF, ENB, OTCPK:IPPLF, OTC:KEYUF, TRP, PSX, STO
- ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, UGA, USL, DNO, OLO, UHN, SZO, OLEM
- Now read Fort McMurray situation getting better - oil markets daily
Mon, Apr. 25, 2:57 PM
- Enbridge’s (ENB -1.6%) Northern Gateway pipeline may get renewed life as the Canadian government wavers on a planned tanker moratorium that had been thought to spell the end for the project, Bloomberg reports.
- PM Trudeau pledged in November to enact a tanker moratorium off the northern British Columbia coast, which was interpreted at the time to sound the death knell for the pipeline, but cabinet ministers are non-committal on the precise implications while federals officials have regularly declined comment on the project's prospects.
- Alberta Premier Notley says she met with Trudeau Sunday night about “the importance of getting a pipeline built so we can get Alberta’s energy product to market."
- Now read Enbridge: The short story
Tue, Mar. 1, 9:51 AM
- Marathon Oil (MRO -6.3%) opens sharply lower after upsizing its public offering to 145M common shares and pricing it at $7.65/share; MRO's original offering had totaled 135M shares.
- MRO says it intends to use the proceeds to strengthen its balance sheet and fund part of its capital program.
- While the offering represents a 20% dilution to MRO shareholders, it is a far better choice than adding to its $7.3B long-term debt load, according to TheStreet.com's Jim Collins.
- Energy companies have issued nearly $11B in equity YTD, with MRO just the latest to issue equity within the past two weeks following Devon Energy (DVN -3.6%), Enbridge (ENB -1%) and Newfield Exploration (NFX -0.9%).
Wed, Feb. 24, 5:59 PM
- Enbridge (NYSE:ENB) -6.2% AH after announcing plans to issue 49.14M common shares on a bought deal basis, raising ~C$2B (US$1.5B) in Canada and the U.S., with an underwriters option to purchase up to an additional 7.37M shares.
- ENB says it plans to use the proceeds to pay down short-term debt pending investment in capital projects, and expects the equity raised will be sufficient to fulfill equity funding requirements for its growth program through the end of 2017.
Fri, Feb. 19, 11:54 AM
- Enbridge (ENB -2.1%) is lower as part of today's broad energy rout, even after reporting better than expected Q4 earnings as record oil shipments on its main pipeline system shielded the company from the collapse in prices.
- ENB's Mainline system, which moves most of Canada's crude exports to the U.S., shipped an average of 2.2M bbl/day of oil during Q4, compared with 2.1M a year earlier.
- ENB says it will defer C$5B in capex planned for this year and the next to 2018, as the Sandpiper and Line 3 replacement pipeline projects to Wisconsin are delayed to 2019 from 2017 to allow for completion of environmental reviews and permitting in Minnesota.
- ENB also says the secured component of its 2015-19 growth capital program totals C$26B, of which ~$8B already has been funded and brought into service through the end of 2015.
Wed, Feb. 10, 3:57 PM
- Summit Midstream Partners (SMLP -0.9%) says it has begun operations of the Stampede Lateral crude oil transmission pipeline in North Dakota and is in the final stages of completing the nearby Little Muddy crude oil transmission pipeline.
- SMLP says the Stampede Lateral connects its Polar & Divide crude oil gathering system with Global Partners' (GLP -3.2%) Basin Transload rail terminal, and provides GLP and other producers in the region with up to 60K bbl/day of crude oil throughput capacity.
- Little Muddy will interconnect with Enbridge's (ENB -2.1%) pipeline system in the Bakken shale formation.
Fri, Feb. 5, 3:11 PM
- Canada’s government will make a decision by the end of this year on Kinder Morgan’s (KMI -1.3%) Trans Mountain oil pipeline expansion after additional consultations and considering the country’s national interest, Natural Resources Minister Jim Carr says.
- The government has added four months to the National Energy Board regulatory process in order to provide more assessment of the project, Carr says; TransCanada’s (TRP -1.3%) Energy East also will face a longer review period, while Enbridge’s (ENB -2.7%) Northern Gateway was approved by the previous government but the company has not yet made a final investment decision.
- "When we’re done, we want Canadians to be heard, that it was a responsible and thorough process which we hope will lead to a better result... We are not asking the proponents of these prjects to go back to square one," Carr says.
Thu, Jan. 14, 2:49 PM
- The B.C. supreme court rules the province failed to properly consult with First Nations on Enbridge's (ENB +3.4%) Northern Gateway pipeline, another setback for the project which aims to ship 525K bbl/day of oil sands crude to the port of Kitimat for export to Asia.
- The First Nations group who brought the case forward say the ruling could set back the controversial pipeline by years and throw a wrench into another high-profile project review.
- The court ruling stems from the B.C. government's agreement with the federal government to hold a single environmental assessment process under the National Energy Board rather than parallel federal and provincial reviews.
Tue, Jan. 12, 11:33 AM
- With B.C.’s rejection of Kinder Morgan's (KMI -4.3%) Trans Mountain pipeline expansion, Canada’s diversification strategy is unraveling, according to Financial Post's Claudia Cattaneo.
- Of the four major export pipeline projects proposed to open new markets for Canadian oil production, Cattaneo says the Trans Mountain project should have been the easiest to achieve because it expands a pipeline that has been safely transporting oil from Alberta to the B.C. coast for 60 years.
- The rejection came the B.C. government said KMI had failed to fulfill the five conditions for heavy oil pipelines, announced in 2012, including “world-leading” marine oil spill response, prevention and recovery; “world-leading” practices for land oil spill prevention, response and recovery systems; and that B.C. receives its “fair share” of the fiscal and economic benefits.
- B.C. "pulled the same stunt" in opposing Enbridge's (ENB -1.1%) Northern Gateway project, Cattaneo writes, saying the moves raise questions about whether the province's conditions are actually attainable, or why Canada has a federal process to approve cross-border pipelines when B.C. effectively seems to have the final say.
Nov. 24, 2015, 11:30 AM
- Analysts are betting that renewable energy developers such as Enbridge (ENB +1.2%) and TransCanada (TRP +1.9%) will be among the best placed to make the shift to Alberta's new carbon policies, Bloomberg reports.
- As the government boosts the province’s share of renewable electricity to 30% from 9% by 2030, "renewable power contracts are going to go to the bidder that needs the least amount of government support, developers with most financial flexibility and overall lowest cost of capital” such as ENB and TRP, says National Bank Financial's Patrick Kenny.
- The two companies already are among Canada’s largest renewable power operators: ENB owns 2,065 MW of wind power across Canada, enough to power 650K homes, while TRP operates wind, hydro and nuclear plants as part of its 11.8K MW of power generation.
- TransAlta (TAC -2%) surged 9.5% yesterday as investors felt Alberta's new policy avoided the worst-case fastest potential phase-out of coal plants.
- Earlier: TransAlta +12% on Alberta climate change plan (Nov. 23)
Nov. 5, 2015, 10:49 AM
- Enbridge (ENB -2.1%) is lower in early trading after Q3 earnings fall slightly short of expectations and saying a delay in starting up the Line 9 pipeline project that will move crude from Ontario to Quebec will hold down earnings for the year.
- ENB says the 400-mile Line 9 will start deliveries in December but initially was expected to be in service in early 2015; partly as a result, ENB says it now expects full-year 2015 EPS to fall within the lower half of the estimated range of C$2.05-C$2.35.
- ENB says Q3 results in its base business were strong and that its C$38B five-year growth plan is expected to generate average annual adjusted earnings growth of 11%-13%.
- ENB also says its Mainline system, which moves the bulk of Canadian crude exports to the U.S., shipped an average of 2.2M bbl/day in Q3 vs. ~2M bbl/day a year earlier.
Nov. 4, 2015, 1:10 PM
- Enbridge (ENB -3.1%) says it plans to spend $5B building three oil storage facilities in the Gulf of Mexico region as part of a "full frontal assault” aimed at fortifying its strategic position in the U.S. market, WSJ reports.
- ENB's plan calls for three terminals stretching from Houston toward New Orleans, each with crude storage tanks, ship docks, pipelines and other infrastructure to allow for both the import and export of U.S. and Canadian crude as well as processed condensate and refined products.
- The plan is in the early stages, but the facilities likely would be rolled out in phases over the coming years.
- If the U.S. crude oil export ban is lifted, the terminals would position ENB at the forefront of the U.S. oil export industry.
Oct. 7, 2015, 12:59 PM
- Enbridge (ENB +1.8%) plans to spend $38B through 2019 on new projects including liquids and natural gas lines, as well as power generation and gas processing, despite a "higher degree of risk," CEO Al Monaco tells investors.
- ENB is focusing on expanding “low-cost, incremental” projects such as twinning existing pipelines to provide producers with new transportation capacity as they struggle with low crude prices, Monaco says; its $7.5B Line 3 replacement is the largest project.
- ENB says it is performing early development work on a plan to twin Line 61 which runs from Superior, Wis., to Flanagan, Ill., as expansion of the Mainline system which carries crude from western Canada to Superior and may be increased by 800K bbl/day requires the Line 61 expansion to avoid a bottleneck.
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
Sector: Basic Materials
Industry: Oil & Gas Pipelines
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