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| 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.
Oct. 1, 2013, 3:59 PM
- Enbridge (ENB -1.5%) plans to build a new ~$1B, 200K bbl/day pipeline to bring diluent - used to thin out oil sands bitumen so it can flow through pipelines - to industry players in Alberta.
- ENB is the dominant Alberta crude shipper, transporting more than 1M bbl/day from the Fort McMurray area to market hubs in Edmonton and Hardisty along its Athabasca and Waupisoo pipelines, and ENB expects eventually to have enough commercial support to build another pipeline to Edmonton and another one to Hardisty by latter part of this decade.
Sep. 24, 2013, 12:26 PM
- Goldman Sachs is bullish on Bakken after it came away from a trip to North Dakota with greater confidence in its outlook that activity in the shale play should exceed expectations, citing producers and drillers who were "uniformly confident" in resource expansion, efficiency gains and potential for improving well performance in coming years.
- The firm sees production growth of 130K bbl/day to 210K bbl/day through 2016, above the average of 110K bbl/day for the six months up to this July.
- Buy-rated Oasis Petroleum (OAS +3.4%) and Continental Resources (CLR +3.3%) (earlier) are Goldman's favorites among Bakken-exposed oil E&P companies; also listed as ready to reap Bakken benefits are Northern Tier Energy (NTI +4%), Halliburton (HAL +0.7%), Enbridge (ENB +0.2%) and Canadian Pacific Railway (CP +0.6%).
Jul. 11, 2013, 2:24 PMCrude oil futures weaken following an unconfirmed report that the 400K bbl/day Seaway Pipeline has been shut down. Flows from Seaway and other pipelines have been key in drawing down crude from the Midwest hub in recent weeks and sparking a jump in prices. Seaway is a 50-50 JV between operator Enterprise Products Partners (EPD +0.8%) and Enbridge (ENB +1.9%). | 2 Comments
May 8, 2013, 12:31 PMEnbridge (ENB +0.3%) agrees to invest $1.2B in Enbridge Energy Partners (EEP +3.8%) through a private placement of preferred units expected to close later today. EEP says the placement will significantly reduce the amount of third-party funding required and relieve the equity issuance overhang it believes is pressuring its valuation. | Comment!
May 2, 2013, 11:57 AMEOG Resources (EOG +0.6%) could see 25% annual oil production growth in coming years, and its stock trades at cheaper multiples than rivals, RBC says as it adds EOG to its "energy best ideas" list. The firm also adds Oceaneering (OII +2.3%); it boots Helmerich & Payne (HP +1.9%) and Precision Drilling (PDS +1%), whose U.S. rig counts have not risen as quickly as expected, as well as Continental Resources (CLR -0.8%). | Comment!
Apr. 5, 2013, 9:44 AMEnbridge (ENB -3.2%) opens lower after announcing last night it had entered into an agreement with RBC and TD Securities to sell 10.85M treasury common shares, on a bought deal basis, at $46.11/share for distribution to the public. Proceeds will be used to fund recently announced projects, pay down debt, and general corporate purposes. | 1 Comment
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