enbridge

ENBRIDGE INC. $53.00 (Toronto symbol ENB; Shares outstanding: 846.2 million; Market cap: $45.4 billion; TSINetwork Rating: Above Average; Dividend yeield:2.6%; www.enbridge.com) plans to transfer its 66.7% stake in the U.S. portion of the Alberta Clipper pipeline to its American affiliate, Enbridge Energy Partners, L.P. (New York symbol EEP).

The 1,600-kilometre Alberta Clipper pipeline moves crude from Alberta’s oil sands to Superior, Wisconsin.

Enbridge will receive $300 million U.S. in cash and $600 million U.S. worth of Enbridge Energy Partners units. The $900-million U.S. total is equal to 2% of Enbridge’s $45.4-billion (Canadian) market cap.

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ENCANA CORP., $23.86, Toronto symbol ECA, has agreed to buy Athlon Energy Inc. (New York symbol ATHL). Athlon produces 30,000 barrels of oil equivalent (80% oil and 20% natural gas) a day from 1,138 wells in Texas’s Midland Basin. To put that in context, Encana’s daily output was 491,700 barrels (86% gas, 14% oil) in the second quarter of 2014. Right now, Athlon uses traditional vertical drilling techniques. However, Encana feels it can use its expertise with horizontal drilling to make Athlon’s wells more productive. That will help Encana reach its goal of producing 250,000 barrels of oil a day by 2017....

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ENBRIDGE INC. $53.00 (Toronto symbol ENB; Shares outstanding: 846.2 million; Market cap: $45.4 billion; TSINetwork Rating: Above Average; Dividend yeield:2.6%; www.enbridge.com) plans to transfer its 66.7% stake in the U.S. portion of the Alberta Clipper pipeline to its American affiliate, Enbridge Energy Partners, L.P. (New York symbol EEP). The 1,600-kilometre Alberta Clipper pipeline moves crude from Alberta’s oil sands to Superior, Wisconsin. Enbridge will receive $300 million U.S. in cash and $600 million U.S. worth of Enbridge Energy Partners units. The $900-million U.S. total is equal to 2% of Enbridge’s $45.4-billion (Canadian) market cap....

Enbridge Income Fund Holdings Inc., $30.32, symbol ENF on Toronto (Shares outstanding: 56.5 million; Market cap: $2.0 billion; www.enbridgeincomefund.com), is a holding company that owns 85.6% of Enbridge Income Fund. Enbridge Inc. (symbol ENB on Toronto and a recommendation of The Successful Investor), holds the remaining 14.4%. If you include preferred shares and its 19.9% direct stake in Enbridge Income Fund Holdings, Enbridge Inc. has a 67.3% economic interest in the fund. Enbridge first sold units of Enbridge Income Fund Holdings to the public in 2003. In December 2010, the fund converted to a regular corporation....

ENBRIDGE INC. $56 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 846.4 million; Market cap: $47.4 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.enbridge.com) gets 90% of its revenue from pipelines that pump oil and natural gas from Western Canada to customers in Eastern Canada and the U.S. The remaining 10% mainly comes from distributing gas to 2.1 million consumers in Ontario, Quebec, New Brunswick and New York State.

New pipelines and other projects boosted Enbridge’s revenue by 164.1%, from $12.5 billion in 2009 to $32.9 billion in 2013. Earnings rose 68.8%, from $857.4 million to $1.4 billion. The company sold shares to help pay for its expansion, so per-share earnings rose at a slower pace of 50.8%, from $1.18 to $1.78.

Enbridge now plans to spend $42 billion on new pipelines and other projects over the next few years. Of that total, $37 billion of these projects already have secure commitments from oil producers, which cuts the risk of these investments. The company expects these new assets to increase its earnings per share by 10% to 12% each year through 2017.

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ENBRIDGE INC., $56.48, Toronto symbol ENB, plans to transfer its 66.7% stake in the U.S. portion of its Alberta Clipper pipeline to its American affiliate, Enbridge Energy Partners, L.P. (New York symbol EEP). Alberta Clipper pumps crude from Alberta’s oil sands to Superior, Wisconsin. Enbridge will receive $300 million U.S. in cash and $600 million U.S. worth of Enbridge Energy Partners units. The $900-million U.S. total is equal to 2% of Enbridge’s $47.8-billion (Canadian) market cap....

Enbridge has jumped 175% in the past five years, largely because low interest rates have prompted income-seeking investors to buy high-yielding utility stocks. The company is also aggressively adding pipelines to profit from rising oil sands production and new fields like the Bakken shale oil region. The stock now trades at over 25 times earnings. That’s a high multiple for a regulated pipeline operator, but it’s still reasonable in light of Enbridge’s improving growth prospects. ENBRIDGE INC. $56 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 846.4 million; Market cap: $47.4 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.enbridge.com) gets 90% of its revenue from pipelines that pump oil and natural gas from Western Canada to customers in Eastern Canada and the U.S. The remaining 10% mainly comes from distributing gas to 2.1 million consumers in Ontario, Quebec, New Brunswick and New York State....

Every Monday we feature “A Stock to Sell” as our daily post. With every stock we recommend as a sell, we give you a full explanation of why we advise against investing in the stock at this time. Keyera Corp. (symbol KEY on Toronto; www.keyera.com), provides a number of services to the oil and gas industry, including gathering, processing, storage and transportation....