enbridge

PEMBINA PIPELINE $29.78 (Toronto symbol PPL; Shares outstanding: 285.0 million; Market cap: $8.5 billion; TSI Network Rating: Average; Dividend yield: 5.4%; www.pembina.com) owns pipeline systems with a total length of over 7,500 kilometres. These lines pump oil and gas from fields in B.C. and Alberta to refineries, or feed into major pipelines, such as the Enbridge Pipeline System. Pembina also owns the Syncrude, Horizon and Cheecham pipelines, which pump crude oil from the Alberta oil sands. In addition, the company holds a 50% stake in the Fort Saskatchewan Ethylene Storage Limited Partnership. It also owns the Cutbank Complex, a network of natural gas gathering and processing facilities. In the three months ended December 31, 2011, Pembina’s cash flow rose 2.9%, to $66.8 million, or $0.40 a share, from $64.9 million, or $0.39 a share, a year earlier....

ENBRIDGE INC. $40.94 (Toronto symbol ENB; Shares outstanding: 784.6 million; Market cap: $32.1 billion; TSINetwork Rating: Above Average; Dividend yield: 2.8%; www.enbridge.com) plans to build a new pipeline that would pump shale oil from the Bakken region of North Dakota to refineries in the U.S. and Canada. If it can sign up enough oil shippers, this new line would increase Enbridge’s capacity in the region by 67,000 barrels a day by the end of 2013. Right now, the company’s North Dakota pipelines can pump 210,000 barrels a day. The new line would cost $650 million. However, investments like this will help the company take advantage of North Dakota’s rising oil production, which has quadrupled since 2005. Enbridge is a buy....

ENBRIDGE INC. $39.42 (Toronto symbol ENB; Shares outstanding: 782.2 million; Market cap: $30.8 billion; TSINetwork Rating: Above Average; Div. yield: 2.9%; www.enbridge.com) continues to expand in the U.S.

In November 2011, the company agreed to buy half of the Seaway pipeline for $1.15 billion U.S. Enterprise Product Partners LP owns the other half and operates the pipeline.

Right now, Seaway pumps crude oil from Houston, Texas, to storage facilities in Cushing, Oklahoma. But the partners plan to reverse the line’s flow by mid-2012.

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Enterprise Product Partners L.P., $52.25, symbol EPD on New York (Shares outstanding: 871.3 million; Market cap: $45.5 billion; www.enterpriseproducts.com), is a leading provider of natural gas and natural gas liquids processing, transportation and storage services in the U.S. and Canada. In the three months ended December 31, 2011, Enterprise’s revenue rose 20.9%, to $11.6 billion from $9.6 billion a year earlier. Earnings per share rose 148.5%, to $0.82 from $0.33. The company has seen steady growth across all of its businesses. Enterprise should process and ship more natural gas liquids (NGLs) this year, and its profit margins from these activities should increase, as well. Natural gas prices are at 10-year lows, but companies continue to increase their drilling and production....

CANADIAN PACIFIC RAILWAY LTD., $76.45, Toronto symbol CP, reported higher-than-expected earnings this week. In the three months ended March 31, 2012, the company’s earnings soared 317.6%, to $142.0 million from $34.0 million a year earlier. Earnings per share rose 310.0%, to $0.82 from $0.20, on more shares outstanding. That beat the consensus estimate of $0.75 a share. Severe winter weather and avalanches in B.C. delayed the company’s trains and depressed the year-earlier results. This was the main reason for the earnings jump....

ENBRIDGE INC. $39.42 (Toronto symbol ENB; Shares outstanding: 782.2 million; Market cap: $30.8 billion; TSINetwork Rating: Above Average; Div. yield: 2.9%; www.enbridge.com) continues to expand in the U.S. In November 2011, the company agreed to buy half of the Seaway pipeline for $1.15 billion U.S. Enterprise Product Partners LP owns the other half and operates the pipeline. Right now, Seaway pumps crude oil from Houston, Texas, to storage facilities in Cushing, Oklahoma. But the partners plan to reverse the line’s flow by mid-2012....

PLEASE NOTE: Our next Hotline will go out on Thursday, April 5, 2012. RESEARCH IN MOTION LTD., $14.63, Toronto symbol RIM, earned $418 million, or $0.80 a share, in its fiscal 2012 fourth quarter, which ended March 3, 2012 (all amounts except share price in U.S. dollars). These figures exclude a $346-million (after-tax) writedown of goodwill and a $197-million writedown of inventory of unsold BlackBerry smartphones. On this basis, RIM’s latest earnings fell short of the consensus estimate of $0.81 a share. The latest earnings are also down 55.2% from $934 million, or $1.78 a share, a year earlier....

ENBRIDGE INC. $38 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 782.3 million; Market cap: $29.7 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.enbridge.com) plans to build a new pipeline that would pump shale oil from the Bakken region of North Dakota to refineries in the U.S. and Canada. If it can sign up enough oil shippers, this new line would increase Enbridge’s capacity in the region by 67,000 barrels a day by the end of 2013. Right now, the company’s North Dakota pipelines can pump 210,000 barrels a day.

The new line would cost $650 million, which is equal to 59% of the $1.1 billion, or $1.48 a share, that Enbridge earned in 2011. However, investments like this will help it take advantage of rising oil production in North Dakota, which has quadrupled since 2005.

Enbridge is a buy.

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BCE INC. $39.64, Toronto symbol BCE, is buying Astral Media Inc. (Toronto symbols ACM.A and ACM.B). Montreal-based Astral owns 22 TV stations, 84 radio stations and several pay TV and specialty channels, such as The Movie Network, Family Channel and Teletoon. It also owns billboards and sells other outdoor advertising services in Quebec, Ontario and B.C. The purchase price is $3.4 billion, including $380 million of Astral’s debt. BCE will pay roughly 75% of this cost in cash and 25% in common shares. To put this purchase in context, BCE earned $2.4 billion, or $3.13 a share, in 2011....

ENBRIDGE INC. $38 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 782.3 million; Market cap: $29.7 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.enbridge.com) plans to build a new pipeline that would pump shale oil from the Bakken region of North Dakota to refineries in the U.S. and Canada. If it can sign up enough oil shippers, this new line would increase Enbridge’s capacity in the region by 67,000 barrels a day by the end of 2013. Right now, the company’s North Dakota pipelines can pump 210,000 barrels a day. The new line would cost $650 million, which is equal to 59% of the $1.1 billion, or $1.48 a share, that Enbridge earned in 2011. However, investments like this will help it take advantage of rising oil production in North Dakota, which has quadrupled since 2005. Enbridge is a buy.