Key pipeline moves ahead

Article Excerpt

ENBRIDGE INC. $46.57 (Toronto symbol ENB; Shares outstanding: 828.2 million; Market cap: $38.2 billion; TSINetwork Rating: Above Average; Yield: 3.0%) has won regulatory approval for its Northern Gateway pipeline. This line would pump crude from Alberta’s oil sands to Kitimat, B.C. From there, tankers would ship the oil to customers in Asia. It will cost $6.5 billion to build this project. That’s equal to 17% of Enbridge’s $37.8-billion market cap (or the value of all of its outstanding shares). Regulators also imposed 209 conditions on Enbridge, including carrying liability insurance of $950 million to cover the cost of cleaning up any potential oil spill. The project still faces strong opposition from environmentalists, First Nations and the B.C. provincial government. However, the federal cabinet seems likely to grant final approval within the next six months. If so, the line could start up in 2018. Enbridge is a buy. buy…