Pipelines enhance Enbridge

Article Excerpt

ENBRIDGE INC. $51.72 (Toronto symbol ENB; Shares outstanding: 929.2 million; Market cap: $48.4 billion; TSINetwork Rating: Above A v e r a g e ; D i v i d e n d y i e l d : 4 . 1 % ; www.enbridge.com) plans to buy 27.6% of the Bakken Pipeline System for $1.5 billion U.S. The operation consists of two separate pipelines that pump crude oil from North Dakota to the U.S. Gulf Coast. The Bakken System already links to Enbridge’s existing pipelines, which will make it easier for the company’s customers to ship more of their crude to refineries in Texas. As well, the Bakken lines have long-term commitments from oil shippers. Steady cash flows from these contracts cut the risk of the investment. Enbridge is still a hold. hold…