Enbridge hits a roadblock

Article Excerpt

ENBRIDGE INC. $47.55 (Toronto symbol ENB; Shares outstanding: 2.0 billion; Market cap: $95.3 billion; TSINetwork Rating: Above Average; Dividend yield: 6.2%; www.enbridge.com) wants to replace its aging Line 3 pipeline, which pumps crude from Alberta to Wisconsin. The project is set to double the current line’s capacity and will cost $9 billion. Line 3 runs through Minnesota, and regulators there recently approved the plan. However, the Minnesota Court of Appeals has ruled that the project’s environmental impact statement was inadequate, particularly regarding the potential impact of an oil spill in Lake Superior. It’s unclear how long it would take Enbridge to complete a new environmental review. It had hoped to finish the project in the second half of 2020. It’s also possible that regulators could reject an updated proposal. Enbridge is still a hold. hold…