Updating Enbridge Inc. and Fortis Inc.

Article Excerpt

ENBRIDGE INC. $50 (www.enbridge.com) is paying $750 million for 24.9% of the 400-megawatt Rampion offshore wind project in the English Channel. To put that price in context, Enbridge earned $399 million, or $0.79 a share, in the third quarter of 2015. Construction on this wind farm began in September 2015, and it should start up in 2018. The project has agreed to sell its electricity at fixed prices for the first 15 years, which cuts the risk of this investment. Hold. FORTIS INC. $38 (www.fortisinc.com) paid $4.5 billion for UNS Energy in August 2014. This business operates power plants and distributes electricity and gas to 658,000 clients in Arizona. In the three months ended September 30, 2015, UNS increased Fortis’s earnings by 116.4%, to $145 million from $67 million a year earlier. Per-share profits rose at a slower pace of 67.7%, to $0.52 from $0.31, on more shares outstanding. Revenue gained 30.8%, to $1.6 billion from $1.2 billion. Buy. Buy…