Enbridge reorganizes its JVs

Article Excerpt

ENBRIDGE, $54.16, is a buy. The firm (Toronto symbol ENB; Shares o/s: 2.0 billion; Market cap: $113.2 billion; TSINetwork Rating: Above Average; Dividend yield: 6.4%; www.enbridge.com) operates pipelines that pump Western Canadian oil and gas to eastern Canada and the U.S. Investors also tap its gas distribution for Ontario and Quebec consumers. The company is now re-organizing its joint ventures with U.S.-based oil company Phillips 66 (New York symbol PSX). As a result, Enbridge will increase its stake in the Gray Oak pipeline to 58.5% from 22.8%. It pumps oil from the Permian Basin in West Texas to the U.S. Gulf Coast. Enbridge will also operate this line. At the same time, the company will cut its interest in DCP Midstream LP to 13.2% from 28.3%. DCP gathers, processes and markets natural gas. As a result of these transactions, Enbridge will receive cash of $400 million U.S. Enbridge is a buy. buy…

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