Enbridge Inc.
ENBRIDGE INC. $53.46 (Toronto symbol ENB; Shares outstanding: 834.8 million; Market cap: $45.2 billion; TSINetwork Rating: Above Average; Dividendyield: 2.6%; www.enbridge.com) recently won Ottawa’s approval for its Northern Gateway pipeline. The project faces strong opposition from environmentalists and First Nations. As well, the Supreme Court recently issued a ruling that makes it easier for aboriginal groups to claim title to their traditional lands. However, Enbridge does not expect the ruling to block Northern Gateway. There are no land claims along the pipeline’s route, and the company has signed equity-sharing deals with 26 First Nations....
ENBRIDGE INC. $50.81 (Toronto symbol ENB; Shares outstanding: 834.8 million; Market cap: $4242 billion; TSINetwork Rating: Above Average; Dividend yield: 2.8%; www.enbridge.com) has won approval from Ottawa for its Northern Gateway pipeline.
The line will pump crude from Alberta’s oil sands to Kitimat, B.C. From there, tankers would ship the oil to customers in Asia.
It will cost $7.9 billion to build this project. However, that estimate is sure to rise as other oil sands and pipeline projects drive up labour and material costs.
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The line will pump crude from Alberta’s oil sands to Kitimat, B.C. From there, tankers would ship the oil to customers in Asia.
It will cost $7.9 billion to build this project. However, that estimate is sure to rise as other oil sands and pipeline projects drive up labour and material costs.
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ENBRIDGE INC. $52 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 834.8 million; Market cap: $43.4 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.enbridge.com) had hoped to complete its new Flanagan South pipeline in the third quarter of 2014, but the company now says it will start up in the fourth quarter.
Flanagan South will connect Enbridge’s main oil-export pipeline in Illinois with storage facilities in Cushing, Oklahoma. From there, the company will pump the oil to refineries in Texas. The new line will let Enbridge transport up to 775,000 barrels a day on this route, up from just 175,000 on its existing Spearhead line.
Demand for this extra capacity should be strong, because it will let oil producers ship more of their crude from Western Canada and North Dakota’s Bakken area to the U.S. Gulf Coast.
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Flanagan South will connect Enbridge’s main oil-export pipeline in Illinois with storage facilities in Cushing, Oklahoma. From there, the company will pump the oil to refineries in Texas. The new line will let Enbridge transport up to 775,000 barrels a day on this route, up from just 175,000 on its existing Spearhead line.
Demand for this extra capacity should be strong, because it will let oil producers ship more of their crude from Western Canada and North Dakota’s Bakken area to the U.S. Gulf Coast.
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ENCANA CORP. $24 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 740.9 million; Market cap: $17.8 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.3%; TSINetwork Rating: Average; www.encana.com) has agreed to sell its operations in Alberta’s Bighorn area to privately held Jupiter Resources. Encana will get $1.8 billion when the sale closes in the next few weeks (all amounts except share price and market cap in U.S. dollars). To put that in context, the company earned $515 million, or $0.70 a share, in the quarter ended March 31, 2014. The company is also selling a gas-fired power plant and its 50% stake in a second plant, both in Alberta, for an undisclosed sum....
BCE INC., $48.80, Toronto symbol BCE, fell slightly in response to the federal government’s new plan to auction off more blocks of high-quality wireless frequencies (or spectrum). Ottawa has set aside 60% of this spectrum for smaller wireless providers. It will also limit how much of the remainder that larger providers like BCE can buy. Ottawa hopes these moves will encourage other wireless carriers, which mainly operate in certain regions, to expand into other parts of Canada. The new rules are unlikely to substantially hurt BCE’s wireless operations, which supply 28% of its revenue. Meanwhile, the company continues to see strong demand for its Fibe service, which uses fibre optic cable to deliver high-speed Internet and digital TV. As of March 31, 2014, it had 534,110 Fibe TV subscribers in Ontario and Quebec, up 80.6% from a year earlier....
ENBRIDGE INC. $50.81 (Toronto symbol ENB; Shares outstanding: 834.8 million; Market cap: $4242 billion; TSINetwork Rating: Above Average; Dividend yield: 2.8%; www.enbridge.com) has won approval from Ottawa for its Northern Gateway pipeline. The line will pump crude from Alberta’s oil sands to Kitimat, B.C. From there, tankers would ship the oil to customers in Asia. It will cost $7.9 billion to build this project. However, that estimate is sure to rise as other oil sands and pipeline projects drive up labour and material costs....
ENBRIDGE INC. $51 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 834.8 million; Market cap: $42.6 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada to Eastern Canada and the U.S. The company’s pipelines also handle 53% of Canada’s crude oil exports to the U.S.
Pipelines supply 90% of Enbridge’s revenue. The remaining 10% comes from distributing gas to two million consumers in Ontario, Quebec, New Brunswick and New York State.
In the quarter ended March 31, 2014, Enbridge’s revenue jumped 33.2%, to $10.5 billion from $7.9 billion a year earlier, mainly because the company is pumping more crude from the Alberta oil sands.
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Pipelines supply 90% of Enbridge’s revenue. The remaining 10% comes from distributing gas to two million consumers in Ontario, Quebec, New Brunswick and New York State.
In the quarter ended March 31, 2014, Enbridge’s revenue jumped 33.2%, to $10.5 billion from $7.9 billion a year earlier, mainly because the company is pumping more crude from the Alberta oil sands.
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ENBRIDGE INC., $51.09, Toronto symbol ENB, has won approval from Ottawa for its Northern Gateway pipeline. Northern Gateway will pump crude from Alberta’s oil sands to Kitimat, B.C. From there, tankers would ship the oil to customers in Asia. It will cost $7.9 billion to build this project. That’s equal to 19% of Enbridge’s $42.7-billion market cap (or the value of all its outstanding shares). However, that estimate is sure to rise as other oil sands and pipeline projects drive up labour and material costs....
Enbridge and TransCanada have risen strongly in recent months. That’s partly because low interest rates continue to encourage income-seeking investors to buy high-yielding utilities.
After their recent gains, both stocks now seem expensive in relation to their earnings....
After their recent gains, both stocks now seem expensive in relation to their earnings....
CANADIAN PACIFIC RAILWAY $190.72 (Toronto symbol CP; Shares o/s: 175.1 million; Market cap: $32.7 billion; TSINetwork Rating: Average; Dividend yield: 0.7%; www.cpr.ca) expects to ship 140,000 to 210,000 carloads of crude oil a year by the end of 2015, up from 90,000 in 2013.
Higher crude shipments and improving efficiency should increase CP’s 2014 earnings by 30% over 2013, to $8.35 a share....
Higher crude shipments and improving efficiency should increase CP’s 2014 earnings by 30% over 2013, to $8.35 a share....