Dec. 24, 2014, 2:40 PM
Dec. 19, 2014, 6:46 AM
- Enbridge (NYSE:ENB) has restarted its largest crude-oil export pipeline to the U.S., after shutting Line 4 due to a 1,350 barrel spill at its Regina Terminal in Saskatchewan.
- The company expects the full clean up of the spilled oil to continue into next week.
- Previously: Enbridge shuts oil pipeline to U.S. after spill in Canada (Dec. 18 2014)
Dec. 18, 2014, 8:19 AM
- Enbridge (NYSE:ENB) says it safely shut down and isolated its Line 4 pipeline at the Regina Terminal in Saskatchewan overnight after ~1,350 barrels of oil were released from the line within an on-site pumping station.
- The shutdown of the 796K bbl/day pipeline has disrupted the flow of Canadian oil supplies to the U.S. Midwest; ENB does not yet know when the line will return to service, but the company has not declared force majeure.
- If Line 4 remains down, Midwest refiners may lean on pipelines bringing supply north from the Gulf Coast, including the Capline system operated by Marathon Petroleum (NYSE:MPC), analysts say.
Dec. 10, 2014, 4:58 PM
- Enbridge (NYSE:ENB) agrees to pay ~$6.8M to settle a class-action lawsuit related to a July 2010 pipeline spill in Michigan that dumped more than 20K barrels of crude oil into the Kalamazoo River and Talmadge Creek, resulting in one of the costliest onshore oil spills in U.S. history.
- The suit was brought in 2011 and covers a class including people that owned or lived on property within 1,000 feet of the Kalamazoo River in the area where the pipeline leaked.
- ENB has estimated that its cleanup costs from the incident will reach $1.2B.
Dec. 9, 2014, 5:25 PM
- Canada will not impose new carbon emission rules on its oil and gas sector in a time of falling oil prices, Prime Minister Harper tells the House of Commons as international talks begin in Peru to reach a new global agreement on curbing greenhouse gas emissions.
- Canada’s critical energy sector has been slammed by the recent collapse of world oil prices, and a number of Canadian producers recently have announced plans to cut spending and dividends.
- Harper’s government, which counts the resource-rich western provinces as its core political base, had said it was prepared to work with the U.S. on environmental rules covering the continental oil and gas sector.
- Among Canada's top energy firms: SU, ENB, EEP, EEQ, TRP, IMO, CNQ, TCK, CVE, BTE, OTCQX:COSWF, OTCQB:HUSKF
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.
Dec. 4, 2014, 12:40 AM| Comment!
Dec. 1, 2014, 10:11 AM
- Canadian Natural Resources (CNQ -0.9%) Chairman Murray Edwards predicted Friday that oil prices could collapse to US$30/bbl before stabilizing at $70-$75.
- Edwards says industry projects that are already underway, particularly oil sands projects with a long-term horizon and capital already invested, likely will continue, but others will be shelved until there is more clarity around future oil prices; Edwards also sees a slowdown in conventional oil projects, especially those that tend to produce a lot at the front end.
- He expects efforts to build new pipelines such as Keystone XL (TRP +0.6%) and Energy East (ENB +0.8%) to continue because they represent a 30-50 year opportunity for Canada.
- Brace for such “apocalyptically low” oil calls now, Jason Zweig writes: “Watch for the last optimists to be swept away by pessimism - at which point it will be an opportune time to add to your energy stocks or MLPs... We’re probably not there yet."
Nov. 28, 2014, 10:20 AM| 17 Comments
Nov. 28, 2014, 8:43 AM| Comment!
Nov. 21, 2014, 3:43 PM
- Enbridge Energy Partners (EEP +0.2%) says it may build a 120K bbl/day rail terminal at the Cushing, Okla., oil storage hub, another sign that rail is being integrated into key oil infrastructure.
- The terminal, which would be complete by the end of 2016, would handle two inbound and two outbound unit trains a day; the crude oil probably would come from Canada, and final destinations would depend on consumer interest.
- Enbridge (ENB +0.3%) has a terminal in Cushing with 20M barrels of storage.
Nov. 12, 2014, 6:57 PM
- Utility stocks tumbled today amid Pres. Obama's plan with China to curb greenhouse gas emissions, and will renew a push by environmental activists to deny government approval of pipeline projects such as Keystone XL (NYSE:TRP) and Alberta Clipper (NYSE:ENB) that would carry Canadian oil sands crude to U.S. refineries.
- “Achieving these goals will almost certainly require changes to the implementation of the EPA power plant regulations,” Council on Foreign Relations analyst Michael Levi says, referring to draft rules issued by the EPA in June that already have sparked pushback.
- Congressional Republicans, soon to have a majority in the Senate in addition to the House, promise to do everything possible to stop Obama’s emissions targets for power plants; the administration believes GOP gains mean Obama will not get legislative help in achieving his goals but that Republicans are unlikely to be able to stop executive orders and environmental regulations.
- ETFs: XLU, IDU, VPU, UPW, RYU, FUTY, FXU, SDP
Nov. 5, 2014, 9:49 AM
- In its Q3 earnings report, Enbridge (ENB -0.1%) warned that its $400M plan to reverse the flow of the Line 9B pipeline running between southern Ontario and Montreal has been delayed.
- ENB says Canada’s National Energy Board has requested additional information on the project, and that it has provided the information but does not have an estimate for the length of the delay; Canada's main energy regulator approved the company’s plan in March, subject to a list of 30 conditions.
- ENB had said earlier that it expected to begin shipments of crude oil on the 300K bbl/day pipeline on Nov. 1.
- Q3 total revenues were $8.3B, down from $9B in the same quarter last year, and the company said full-year adjusted EPS is on track to meet its guidance for $1.84-$2.04, in line with analyst consensus of $1.92.
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