The Successful Investor Hotline – Friday, August 3, 2012

Article Excerpt

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. These figures exclude several unusual items, mainly non-cash losses on hedging contracts Enbridge uses to shield itself from changes in interest rates, foreign exchange rates and oil and natural gas prices. On this basis, the latest earnings fell short of the consensus estimate of $0.38 a share. Revenue fell 17.6%, to $5.7 billion from $6.9 billion. Even with the decline, the latest revenue beat…