Tue, Nov. 24, 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)
Thu, Nov. 5, 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.
Wed, Nov. 4, 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.
Wed, Oct. 7, 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.
Thu, Sep. 3, 12:38 PM
- Holly Energy Partners (HEP +0.3%) agrees to acquire Enbridge’s (ENB +2.8%) 50% stake in the Frontier Pipeline for an undisclosed amount.
- The Frontier pipeline is a 296-mile crude oil route that runs from Casper, Wyo., to Frontier Station, Utah, and has a capacity of 72K bbl/day; the line brings Canadian and Rocky Mountain crude oils south to refineries in the Salt Lake City area.
- Plains All American (PAA +1.5%) owns the remaining 50% interest and will continue to operate the Frontier line.
Thu, Aug. 13, 12:45 PM
- A key pipeline for delivering Canadian oil to the U.S. remains shut for a third day, leaving heavy crude stranded in Alberta and keeping its price in the cash market at ~$20 below the WTI benchmark.
- A small leak near Shelbina, Mo., coming from Enbridge’s (ENB -1.1%) Spearhead pipeline, which runs from Flanagan, Ill., to the Cushing, Okla., crude hub forced the shutdown Tuesday of the 193.3K bbl/day pipeline as well as a closing of the parallel Flanagan South pipeline, an even larger 585K bbl/day line that runs from Pontiac, Ill., to Cushing.
- ENB expects operations at Flanagan South to resume today, but does not know when Spearhead may return to service, as it continues to investigate the cause of the spill in Missouri.
- Operational problems at BP's (BP -1.5%) Whiting, Ind., refinery also keep the pressure on prices for Canada’s heavy crude as barrels continue to get backed up.
- Other related tickers: SU, IMO, TRP, CNQ, CVE, TCK, CEO, OTCPK:HUSKF, OTCQX:COSWF
- Earlier: Canadian oil sands price nears $20/bbl, cut in half since July 1
Wed, May 6, 2:36 PM
- Canadian energy stocks are broadly lower after the shocking election result in Alberta raised questions about the future of the country's oil industry: SU -3.3%, ENB -2.8%, TRP -2.6%, IMO -2.3%, CNQ -2.3%, CVE -5.8%, OTCQB:HUSKF -1%, TCK -1.6%, TAC -4.1%, OTCQX:COSWF -6%.
- "Energy is such a critical issue to Alberta, I’m really not that concerned," ENB CEO Al Monaco says, but investors and analysts disagree.
- "It’s completely devastating" for energy companies and investors, saysCanoe Financial's Rafi Tahmazian of stated plans by the newly elected government to raise corporate taxes, review the government’s take of energy revenue, scale back advocacy for pipelines and phase out coal power more quickly.
- “If you are invested in energy stocks, you should be concerned,” says AltaCorp’s Jeremy McCrea, noting that drillers already face higher costs to extract oil and gas in Alberta than in many jurisdictions, so an increase in royalties would make the province even less competitive.
Dec. 24, 2014, 2:40 PM
Dec. 8, 2014, 10:21 AM
- Enbridge (ENB -1.9%) is planning for much greater aboriginal participation and control - perhaps even a majority - over the Northern Gateway oil pipeline, while eventually stepping back into more of an operator role, the proposed pipeline’s top executive tells Financial Post.
- Consultation with British Columbia’s First Nations and Metis communities on the $7.9B project has increased ENB's awareness that should strive to better reflect their needs and interests, project president John Carruthers says.
- Discussions are under way about moving the project’s control from ENB to a more independent entity, such as a limited partnership, governed by a board representing the company, oil company shippers and aboriginal equity partners, he says.
Dec. 5, 2014, 3:19 PM
- Enbridge’s decision (ENB -2.5%) yesterday to transfer assets into an affiliate and boost dividends has rewarded shareholders but hurt bondholders, pushing down the price of ENB’s C$450M of notes due June 2023 and driving relative yields to 153 bps, the highest since the securities were issued in 2013.
- Equity holders “want companies to go out and spend all sorts of money," says one portfolio manager. "‘Let’s do a deal’ - that’s what driving investment right now.”
- ENB CEO Al Monaco maintains he is not ignoring bondholders, saying ENB's credit metrics stay strong after the move.
- Moody’s and S&P reduced their outlooks on the debt to negative on concern the changes will weaken ENB's finances.
Dec. 4, 2014, 3:25 PM
- Enbridge (ENB +10.8%) soars to all-time highs on heavy volume following news of its sweeping plan to raise its dividend by 33% and transfer ownership of its Canadian pipelines to affiliates in a bid to lower funding costs for future expansion and new projects.
- The dropdown allows ENB “to accelerate dividend growth immediately and for the next four-plus years,” ScotiaBank analyst Matthew Akman says.
- "It's another attempt to remove the conglomerate discount by streamlining its businesses," says Colin Cieszynski of CMC Markets.
- The move comes as rival TransCanada (TRP +1.6%) faces pressure from activist investors to overhaul its business, including accelerating dropdowns into its U.S.-based affiliate TC Pipelines (TCP +0.6%) and a spinoff of its power business.
- EEP +6.6%, EEQ +7.3%.
Dec. 4, 2014, 8:41 AM
- Enbridge (NYSE:ENB) +9.6% premarket after saying it will increase its dividend by 33% and transfer ownership of its Canadian pipelines to affiliates in an attempt to lower funding costs for future expansion and new projects.
- ENB plans to drop down its Canadian pipeline assets to its Enbridge Income Fund subsidiary and then raise up to C$800M in equity over the next three years through another affiliate, Enbridge Income Fund Holdings (OTC:EBGUF).
- The combined value of the pipeline assets involved in the transfer totals C$17B and includes the Canadian segment of the Alberta Clipper pipeline.
- ENB says it also is considering a similar move to restructure its U.S. assets by transferring them to its Enbridge Energy Partners (NYSE:EEP) affiliate.
Nov. 28, 2014, 10:20 AM| Nov. 28, 2014, 10:20 AM | 17 Comments
Oct. 10, 2014, 11:57 AM
- Enbridge (ENB -1.6%) must take more safety measures to protect major waterways before it gets permission to start up its Line 9B oil pipeline, according to a ruling from the National Energy Board that will delay plans to start up the pipeline project by at least three months and perhaps longer.
- ENB received permission in March to reverse a 639 km section of Line 9B from North Westover, Ont., to Montreal, provided various conditions were fulfilled; the NEB now says ENB has installed safety valves that met proper standards at only six of 104 identified major water crossings.
Jun. 17, 2014, 5:15 PM
- The Canadian government approves Enbridge’s (ENB) Northern Gateway pipeline, Bloomberg reports, which would eliminate the final major regulatory obstacle for the project that would move Alberta oil to the Pacific coast for shipment to Asia.
- Approval of the C$6.5B project is said to be subject to ENB satisfying the 209 conditions placed on the proposal by a regulatory review panel in December.
- ENB +2.3% AH.
Mar. 4, 2014, 10:58 AM
- Enbridge (ENB +1.9%) and Enbridge Energy Partners (EEP +0.2%) say they have received shipper support for a C$7B project to replace segments of its Mainline pipeline system running between Alberta and Wisconsin.
- ENB says the replacement program for Line 3, an oil pipeline that is part of the Mainline system, will complement an existing segment replacement program; no U.S. presidential permit is required.
- The Canadian part of the program is estimated to cost ~$4.2B, while the U.S. side is estimated to cost ~$2.6B; the entire program is targeted for completion by H2 2017.
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