enbridge

RESEARCH IN MOTION LTD., $7.52, Toronto symbol RIM, jumped 20% this week, mainly because the company reported a lower-than-expected loss in its latest quarter. Its revenue was also higher than the consensus estimate. In its fiscal 2013 second quarter, which ended September 1, 2012, RIM lost $235 million, or $0.45 a share (all amounts except share price in U.S. dollars). The latest results include a $93-million (after-tax) charge related to RIM’s restructuring plan, which includes laying off 30% of its workforce and simplifying its product lines. Without these costs, the company would have lost $0.27 a share in the latest quarter. That’s much better that consensus estimate of a $0.47-a-share loss. A year earlier, RIM earned $329 million, or $0.63 a share....

The Bakken oil formation was discovered in 1953 on Henry Bakken’s farm in the state of Montana, but it was abandoned because it was too difficult to access the oil with the technology of the time. The formation is a 350-million-year-old layer of rock that’s 300 metres below the surface and spread out over 200,000 square miles, with sections underlying Montana and North Dakota, as well as Saskatchewan and a small portion of Manitoba. The Bakken formation could contain as much as 503 billion barrels of oil. Saskatchewan and Manitoba could be holding a quarter of that total. By way of comparison, the massive Ghawar oil field, the largest in Saudi Arabia, is estimated to contain 125 billion barrels and produces half of that country’s oil output....

ENBRIDGE INC. $38 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 797.1 million; Market cap: $30.3 billion; Price-to-sales ratio: 1.3; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.enbridge.com) plans to spend $600 million to expand its natural gas distribution system in the Greater Toronto Area. To put this figure in context, Enbridge earned $653 million, or $0.86 a share, in the first half of 2012. These upgrades will help the company sell more gas in the fast-growing communities outside Toronto. Enbridge aims to complete this project in 2015. Enbridge is a buy.

Growth by acquisition can be risky. Newly purchased companies may develop unforeseen problems, especially in an unsettled economy. But Pembina has cut that risk by buying a rival in a business it’s already a leader in — and Veresen focuses on adding plants with long-term sales contracts already in place. PEMBINA PIPELINE $26.86 (Toronto symbol PPL; Shares outstanding: 288.7 million; Market cap: $7.8 billion; TSI Network Rating: Average; Dividend yield: 6.0%; www.pembina.com) owns pipeline systems that transport half of Alberta’s conventional oil production, 30% of the natural gas liquids (NGLs) produced in Western Canada and virtually all of B.C.’s conventional oil output. In the three months ended June 30, 2012, revenue rose 70.0%, to $870.9 million from $512.4 million a year earlier. In January 2012, it bought rival Provident Energy, which extracts, transports and stores NGLs, for $3.2 billion. Provident’s contribution was the main reason for the higher revenue....

ENBRIDGE INC. $38.65 (Toronto symbol ENB; Shares outstanding: 796.9 million; Market cap: $30.8 billion; TSINetwork Rating: Above Average; Dividend yield: 2.9%; www.enbridge.com) recently finished repairing its leaking oil pipeline in Wisconsin. The company has faced criticism over leaks like this. That could hurt its proposed $5.5- billion Northern Gateway project, which would pump oil from Edmonton to Kitimat, B.C. However, Enbridge still has a strong safety record, and it has pledged to spend an extra $500 million on safety for Northern Gateway. This investment includes thicker steel at river crossings, 50% more inspections and aroundthe- clock staffing at remote pumping stations....

TRANSCANADA CORP. $45.95 (Toronto symbol TRP; Shares outstanding: 704.4 million; Market cap: $32.3 billion; TSINetwork Rating: Above Average; Dividend yield: 4.3%; www.transcanada.com) operates 68,500 kilometres of pipelines that pump natural gas in Canada and the U.S.

The company also owns or has interests in over 10,800 megawatts of power generation. That includes Bruce Power LP, a nuclear power plant in Ontario.

In the three months ended June 30, 2012, TransCanada’s revenue rose slightly, to $1.81 billion from $1.80 billion a year earlier. Earnings per share fell 9.8%, to $0.46 from $0.51, mostly due to the negative impact of lower natural gas and power demand on its operations.

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ENBRIDGE INC. $40.50 (Toronto symbol ENB; Shares outstanding: 794.9 million; Market cap: $33.3 billion; TSINetwork Rating: Above Average; Dividend yield: 2.8%; www.enbridge.com) gets 80% of its revenue by operating pipelines that pump crude oil and natural gas from western Canada to eastern Canada and the U.S. The remaining 20% mainly comes from distributing gas to consumers in Ontario, Quebec, New Brunswick and New York State.

Enbridge has spent over $12 billion on new growth projects in the past three years. This includes new pipelines to handle rising oil sands and shale gas production. Meanwhile, the company expects to complete another $13 billion in projects by the end of 2015. Additional projects are likely to follow.

In the three months ended June 30, 2012, revenue fell 17.5%, to $5.7 billion from $6.9 billion on lower gas prices. However, earnings per share before one-time items rose 5.9%, to $0.36 from $0.34.

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p>ENBRIDGE INC. $39 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 797.0 million; Market cap: $31.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.enbridge.com) recently repaired a leaking oil pipeline in Wisconsin. The company has faced criticism over leaks like this. That could hurt its proposed $5.5-billion Northern Gateway project, which would pump oil from Edmonton to Kitimat, B.C. However, Enbridge still has a strong safety record, and it has pledged to spend an extra $500 million on thicker steel and extra monitoring for leaks.

Enbridge is a buy.

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ENBRIDGE INC. $39 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 797.0 million; Market cap: $31.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.enbridge.com) recently repaired a leaking oil pipeline in Wisconsin. The company has faced criticism over leaks like this. That could hurt its proposed $5.5-billion Northern Gateway project, which would pump oil from Edmonton to Kitimat, B.C. However, Enbridge still has a strong safety record, and it has pledged to spend an extra $500 million on thicker steel and extra monitoring for leaks. Enbridge is a buy.

ENBRIDGE INC., $39.86, Toronto symbol ENB, has finished repairing a leaking pipeline in Wisconsin. This line pumps crude oil from Western Canada to refineries in the U.S. Midwest. However, U.S. regulators have stopped Enbridge from restarting the pipeline until the company submits a new plan outlining its environmental and maintenance procedures. This delay is not likely to have a meaningful impact on Enbridge’s growth. Meanwhile, the company earned $277 million in the three months ended June 30, 2012. That’s up 7.4% from $258 million a year earlier. Earnings per share rose 5.9%, to $0.36 from $0.34, on more shares outstanding....