The Successful Investor Hotline – Friday, November 29, 2013

Article Excerpt

ENBRIDGE INC., $43.71, Toronto symbol ENB, announced this week that U.S.-based Marathon Petroleum Corp. (New York symbol MPC) will invest in its proposed Sandpiper pipeline, which would pump oil from North Dakota’s Bakken shale formation to U.S. refineries. Under the deal, Marathon will cover $975 million (37.5%) of Sandpiper’s $2.6-billion cost. In exchange, Marathon will get a 27% stake in Enbridge’s North Dakota pipeline system. Enbridge’s share of Sandpiper’s cost is $1.625 billion. That’s equal to 1.5 times the $1.1 billion, or $1.33 a share, that it earned in the nine months ended September 30, 2013. When the company completes Sandpiper in 2016, it will increase the North Dakota system’s capacity to 580,000 barrels a day from 210,000 now. That will help Enbridge take advantage of the Bakken’s rising shale oil production. Enbridge is a buy. Please make sure you are logged in to your account to access these articles. Click here if you’ve lost your password. Enbridge was recently covered in The Successful Investor Hotline…