Enbridge http://www.so-l.ru/tags/show/enbridge Mon, 01 Jun 2020 07:59:46 +0300 <![CDATA[Enbridge (ENB) Stock Sinks As Market Gains: What You Should Know]]> In the latest trading session, Enbridge (ENB) closed at $32.72, marking a -1.09% move from the previous day. This move lagged the S&P 500's daily gain of 0.82%. Meanwhile, the Dow gained 0.79%, and the Nasdaq, a tech-heavy index, added 0.79%.

Coming into today, shares of the oil and natural gas transportation and power transmission company had gained 4.45% in the past month. In that same time, the Oils-Energy sector lost 0.98%, while the S&P 500 gained 3.94%.

ENB will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2019. The company is expected to report EPS of $0.48, unchanged from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.23 per share and revenue of $36.87 billion. These totals would mark changes of +44.81% and +2.26%, respectively, from last year.

Any recent changes to analyst estimates for ENB should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.76% higher within the past month. ENB is currently a Zacks Rank #3 (Hold).

In terms of valuation, ENB is currently trading at a Forward P/E ratio of 14.82. This valuation marks a discount compared to its industry's average Forward P/E of 16.69.

Also, we should mention that ENB has a PEG ratio of 1.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ENB's industry had an average PEG ratio of 2.79 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ENB in the coming trading sessions, be sure to utilize Zacks.com.


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http://www.so-l.ru/news/y/2018_12_01_enbridge_enb_stock_sinks_as_market_gai Sat, 01 Dec 2018 01:45:18 +0300
<![CDATA[Will Oil Plunge Disrupt North Dakota's Production Juggernaut?]]> As per North Dakota’s oil regulator, the state’s daily crude output rose 5.2% in September after increasing 1.8% in the previous month. The North Dakota Department of Mineral Resources’ (‘DMR’) latest data said that oil production in September averaged a record 1,359,256 barrels a day, up 66,751 barrels a day from August.

Like crude, natural gas output also hit its highest level ever. The state churned out 2,532,018 thousand cubic feet per day in September, up from August’s 2,443,010 thousand cubic feet per day. Meanwhile, North Dakota’s total number of producing wells tallied 15,287 at the end of September, the highest on record.

The newest numbers, which showed that daily crude output remained above one million barrels for the 20th month, further confirms the status of North Dakota (centered on the Bakken formation) as one of the hottest shale plays in the United States.

Rig Count Inches Down

Some 62 drilling rigs are active in the state now, down five from the October average and three less than September. A closely watched yardstick of North Dakota oil industry's strength, the decrease in the number of units searching for oil and gas in the region indicates uncertainty regarding future drilling activities amid the sharp drop in crude prices.

Oil Price Plunge to Put Brakes on Production Growth?

There is increasing evidence that a fundamental change is occurring in the oil market. WTI crude, the American benchmark, popped above $76 a barrel and was trading at multiyear highs in early October. A looming shortage of the commodity on Iran sanctions helped in driving oil prices higher.

Now, in a reversal, oil is facing a two-pronged attack: rising supply from major producers and fear that an economic slowdown will dampen the outlook for demand. Oil’s troubles pushed the index into a bear market, leading to a more than 30% drop from recent highs.

With weaker oil prices denting producer profits, oil volume in North Dakota is expected to experience muted growth. Winter weather and road restrictions in the coming months will also put brakes on the region’s breakneck activity. This has prompted operators to drill fewer new oil wells, reflected by the declining rig count.

Dakota Access Pipeline: Is it Facing a Crunch?

Apart from the robustness in oil prices, there is another factor that helped to speed up Bakken output growth – the 1,170-mile-long Dakota Access Pipeline. Energy Transfer L.P.’s ET mega project has a capacity to carry about 520,000 barrels of oil per day (or more than 50% of North Dakota’s output). The conduit has successfully bridged the gap between Bakken players and producers in other U.S. oil-producing areas like the Williston and Permian basins.

The geographically constrained Bakken Shale's crude has now better access to Gulf and East Coast refineries and also reaches international markets. The pipeline, where energy majors like Phillips 66 PSX, Enbridge Inc. ENB and Marathon Petroleum MPC have invested, has helped to improve the region’s drilling economics by lowering transportation costs for operators.

Moreover, the pipeline’s service has bolstered the revival of Bakken output, with large operators like Oasis Petroleum Inc. OAS counting on the Dakota Access Pipeline to send a major portion of their products to market.

But with the pipeline’s spare capacity vanishing rapidly amid high demand, there is a need for another conduit that can allow for the movement of more oil. The proposed Liberty Pipeline, which will provide opportunity to shippers to secure transportation service from the Bakken production areas to Corpus Christi, TX, is touted as a solution. With an initial throughput capacity of 350,000 barrels per day, the pipeline is expected to start operations in another two years.

Two Stocks to Focus

While the crude price collapse could stall North Dakota oil growth engine for the time being, production is nevertheless expected to remain robust.

Though a number of companies have built sizeable acreage positions in North Dakota, we have shortlisted two of them, Whiting Petroleum Corp. WLL and Continental Resources, Inc. CLR that might warrant attention. Both carry Zacks Rank #3s (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Whiting Petroleum is a top-tier operator in North Dakota's Williston Basin. The company has 410,000 net acres in the region, giving it drilling inventory of more than 20 years. The 2018 Zacks Consensus Estimate for this Denver, CO-based company is $3.12, representing some 338.2% earnings per share growth over 2017. Next year’s average forecast is $4.05, pointing to another 29.9% growth.

Continental Resources also holds a premium position in the prolific Bakken Shale formation. The company has a working interest in 1,576 net oil producing wells in the region, which comprises almost 48% of the energy explorer’s proved reserves. The 2018 Zacks Consensus Estimate for this Oklahoma City, OK-based company is $3.17, representing some 521.6% earnings per share growth over 2017. Next year’s average forecast is $3.82, pointing to another 20.6% growth.

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Enbridge Inc (ENB): Free Stock Analysis Report
 
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Continental Resources, Inc. (CLR): Free Stock Analysis Report
 
Energy Transfer LP (ET): Free Stock Analysis Report
 
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Zacks Investment Research]]>
http://www.so-l.ru/news/y/2018_11_29_will_oil_plunge_disrupt_north_dakota_s_p Thu, 29 Nov 2018 02:04:00 +0300
<![CDATA[«Enbridge» намерена к середине ноябре возобновить прокачку газа из Канады в США]]> По сообщению канадской трубопроводной и газотранспортной компании «Enbridge», ею запланировано возобновление прокачки газа по 36-дюймовому трубопроводу из Канады в США после завершения тестовых работ к середине следующего месяца.

В пресс-релизе компании говорится: ««Enbridge» усердно работает, чтобы отремонтировать 36-дюймовый газопровод, подвергшийся воздействию инцидента 9 октября». Добавляя: «Линия будет введена в эксплуатацию после завершения всех работ, а линия полностью будет протестирована, и утверждение будет предоставлено Национальным советом по энергетике».

В релизе поясняют: «Основываясь на текущей информации и оценке «Enbridge», которые подлежат одобрению регулирующих органов, ее 36-дюймовый газопровод «TSouth» будет отремонтирован к середине ноября, вернувшись в работу при пониженном давлении 80% от нормального рабочего давления. 30-дюймовый газопровод «TSouth» была снов введен в эксплуатацию 11 октября, также при пониженном давлении, чтобы обеспечить постоянную безопасность системы».

И добавляют: «При условии одобрения регулирующими органами после завершения ремонта и возврата в эксплуатацию 36-дюймового трубопровода при пониженном давлении, мощность в системе «TSouth», как правило, колеблется от 0,9 до 1,3 млрд фут³ в день вследствие баланса зимнего газового сезона».

9 октября примерно в 5:45 вечера по тихоокеанскому времени на трубопроводе, принадлежащем «Enbridge», расположенном примерно в 13,5 км к северу от Принс-Джордж (Британская Колумбия, Канада) и транспортирующем природный газ в США, произошел взрыв. За ним последовало воспламенение на участке, расположенном в сельской местности. В результате инцидента никто из людей не пострадал. Прокачка газа была сразу же остановлена, что вызвало приостановку работы некоторых перерабатывающих заводов в США. Но уже 11 октября по газопроводу меньшего диаметра была возобновлена в тестовом режиме.

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http://www.so-l.ru/news/y/2018_10_22_enbridge_namerena_k_seredine_noyabre_vo Mon, 22 Oct 2018 08:03:31 +0300
<![CDATA[Из-за взрыва на газопроводе «Enbridge» остановила подачу газа в Канаде и США]]> По сообщению канадской компании «Enbridge», ею остановлена прокачка по трубопроводу, который снабжает газом потребителей канадской провинции Британская Колумбия и американского штата Вашингтон. Предпринятые компанией действия вызвали перебои на нескольких американских газоперерабатывающих заводах. «Enbridge» пока не может дать прогноз о приблизительной дате возобновления подачи газа.

Вчера на западе Канады в 15 км к северу от Принс-Джорджа, Британская Колумбия (Prince George, B.C.) рядом с индейским поселением Шелли (Shelley) прогремел огромной мощности взрыв и над местностью завис огненный ярко-оранжевый шар пламени, сопровождавшийся непрерывным гудением. По словам очевидцев – местных жителей, это случилось примерно 5:30 вечера по местному времени (3:30 мск). Причина аварии еще не известна.

Старейшина Доминик Фредерик из племени Lheidli T’enneh рассказал CBC, что около 100 человек из его сообщества были вынуждены бежать вместе с людьми из соседнего поселения. Он сказал: «Взрыв произошел всего в 2-х километрах от заповедника, заставив жителей быстро сбежать из своих домов». И добавил: «Мы как бы обучены этому … из-за лесных пожаров».

Жительница Шелли Меган Кларк находилась в своем доме, расположенном на небольшом расстоянии от того места, где взорвался газопровод, когда услышала ужасный грохот. Она сказала: «Сначала я подумала, что это был гром, но потом это был громкий шум, все гудело». Кларк добавила: «Я смотрю в окно и вижу этот огромный лесной пожар, поэтому я подумала, что, возможно, дом взорвется». Она рассказала, что когда она и ее семья увидели, что происходит, то сразу схватили своих питомцев и некоторые вещей и побежали.

Эвакуированным жителям индейских поселений к ночи разрешили вернуться в свои дома. По словам представителей полиции, произошедший взрыв никакого ущерба не причинил, за исключением самого трубопровода, и никто из людей не пострадал и их имущество тоже. Подачу газа сразу же прекратили.

«Enbridge» указала в своем заявлении, что будет расследовать причину взрыва. Национальный совет по энергетике написал в Twitter, что направлены инспектора на место происшествия.

Из-за взрыва на газопроводе «Royal Dutch Shell» объявила о закрытии подразделения на перерабатывающем заводе «Puget Sound» рядом с американским Сиэтлом. По информации Bloomberg, также закрылся завод «Phillips 66» в штате Вашингтон.

«Fortis» сообщила, что остановка подачи газа затронет почти 700 тыс потребителей в Ванкувере и других районах на западе Канады, обратившись с просьбой об экономии топлива.

«Puget Sound Energy» поступила аналогично: обратилась к 750 тыс потребителей в штате Вашингтон снизить температуру на термостатах в своих домах и уменьшить расход горячей воды.

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http://www.so-l.ru/news/y/2018_10_11_iz_za_vzriva_na_gazoprovode_enbridge_o Thu, 11 Oct 2018 08:47:16 +0300
<![CDATA[«Enbridge» продает газовый бизнес в Канаде компании «Brookfield» за $3,3 млрд]]> По сообщению североамериканской компании «Enbridge», она намерена продать бизнес по сбору и переработке газа в Канаде компании «Brookfield Infrastructure» за $3,3 млрд (4,31 млрд канадских долларов). Указано, что сделкой предполагается продажа 19 заводов по подготовке газа, суммарная мощность которых достигает 3,3 млрд фут³, и системы трубопроводов общей протяженностью 3,55 км.

«Enbridge» также отмечено, что в текущем году компания планирует получить порядка $7,5 млрд в результате продажи активов. Изначально компанией ставилась цель заработать на продажах $3 млрд. Еще в мае «Enbridge» объявила о продаже подразделений по транспортировке и маркетингу газа в США за $1,12 млрд компании, аффилированной с «ArcLight Capital Partners».

Основной деятельностью канадской энергетической компании «Enbridge», штаб-квартира которой находится в Калгари, является сооружение трубопроводов для сырой нефти и нефтепродуктов, трубопроводов для природного газа и распределение природного газа. Служащие компании работают в основном в Канаде, США и Южной Америке.

«Новости энергетики» писали ранее, что регулятор американского штата Миннесоты одобрил проект «Enbridge Energy» по замене нефтепровода «Enbridge Line 3», несмотря на протесты экологических организаций, а также местных племен, через угодья которых проходит трубопровод. Проект поддержали все 5 членов комиссии. До этого проект был одобрен судом штата.

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http://www.so-l.ru/news/y/2018_07_05_enbridge_prodaet_gazoviy_biznes_v_kana Thu, 05 Jul 2018 12:56:51 +0300
<![CDATA[Регулятором штата Миннесота одобрена замена нефтепровода «Enbridge» из Канады в США]]> Как следует из сообщения коммунальной комиссии американского штата Миннесоты, регулятором одобрен проект «Enbridge Energy» по замене нефтепроводной линии 3, несмотря на протесты экологических организаций, а также местных племен, через угодья которых проходит трубопровод. Указано, что проект был поддержан всеми пятью членами комиссии. До этого данный проект одобрил суд штата.

«Новости энергетики» писали ранее, что полтора года назад премьер-министром Канады Джастином Трюдо была одобрена реконструкция канадской части трубопровода «Enbridge Line 3», тогда же им был подписан контракт с компанией «Kinder Morgan Inc.» о прокладке нового трубопровода «Trans Mountain» через Британскую Колумбию.

Компания «Enbridge» неоднократно заявляла, что реконструкция трубопровода «Enbridge Line 3», по которому сырую нефть транспортируют из канадской провинции Альберта через американские штаты Миннесота и Северная Дакота в Висконсин, нужна для обеспечения надежной доставки сырья на нефтеперерабатывающие заводы Среднего Запада. В компании считают, что действующий трубопровод, протяженностью 1,097 миль (1,765 км), построенный еще в 1960-х годах, из-за коррозии и растрескивания сейчас работает лишь на половину своей первоначальной мощности. «Enbridge» утверждает, что замена трубопровода восстановит первоначальную мощность 760 тыс баррелей в день.

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http://www.so-l.ru/news/y/2018_06_29_regulyatorom_shtata_minnesota_odobrena_zam Fri, 29 Jun 2018 09:37:26 +0300
<![CDATA[Sea Limited (SE) Down 11.3% Since Earnings Report: Can It Rebound?]]> A month has gone by since the last earnings report for Sea Limited Sponsored ADR SE. Shares have lost about 11.3% in that time frame.

Will the recent negative trend continue leading up to its next earnings release, or is SE due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Fourth-Quarter 2016 Results

Premier natural gas company Spectra Energy Corp. reported fourth-quarter 2016 earnings per share from continuing operations of $0.28, which lagged the Zacks Consensus Estimate of $0.33. The bottom line remained flat on a year-over-year basis. The decline is mainly attributable to lackluster performance of Western Canada Transmission & Processing and Field Services segment.

The company’s operating revenues of $1,298 million fell 1.4% from the year-ago level of $1,316 million and also came in below the Zacks Consensus Estimate of $1,426 million.

Full-year 2016 earnings of $1.19 per share lagged the Zacks Consensus Estimate of $1.20. Enbridge Energy Partners posted earnings of $1.15 per share in 2015.

Total revenue for the full year decreased to $4,916 million from $5,234 million in 2015. It also lagged the Zacks Consensus Estimate of $5,098.0 million.

Operational Analysis

Spectra Energy Partners: The segment posted quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) of $537.0 million, up 11% from the year-ago quarter. The improvement was mainly driven by higher earnings from expansion projects commissioned in the second half of 2016 in both the natural gas transmission and liquids businesses. Also, increased Allowance for Funds Used During Construction (AFUDC), mainly from the Sabal Trail project, supported the upside.

Distribution: The segment reported year-over-year increase of 8% in EBITDA to $122.0 million from $113.0 million. The upside was mainly driven by incremental earnings from the 2015 Dawn-Parkway expansion project and colder weather.

Western Canada Transmission & Processing: The segment recorded an EBITDA of $105.0 million, down 14.6% from the year-earlier level. The downside can mainly be attributed to lower gathering and processing revenues.

Field Services: Spectra Energy reported that the 50% it owns of the Field Services segment incurred loss of $5 million in the fourth quarter. This is much narrower than a loss of $36 million in the year-ago quarter. Favorable contract realignment efforts, stronger commodity prices and asset growth contributed to the improvement.
 
Production and Price Realizations

The company produced NGLs of 371 thousand barrels per day (MBbl/d) compared with the year-ago quarter level of 409 MBbl/d. Price of NGLs increased 31% and averaged $0.55 per gallon, while crude oil costs were up 16.5% and averaged approximately $49.15 per barrel, both on a year-over-year basis. Natural gas was sold at $2.98 per million British thermal units (MMBtu) as against $2.27 per MMBtu in the fourth quarter of 2015.

Balance Sheet

As of Dec 31, 2016, Spectra Energy had long-term debt of approximately $13.6 billion with a debt-to-capitalization ratio of 54.1% compared with 55.9% in the preceding quarter.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimate. There has been one revision higher for the current quarter. In the past month, the consensus estimate has shifted by 19.3% due to these changes.

Sea Limited Sponsored ADR Price and Consensus

At this time, SE has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Our style scores indicate investors will probably be better served looking elsewhere.

Outlook

Estimates have been trending upward for the stock and the magnitude of this revision indicates a downward shift. Notably, SE has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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Zacks Investment Research]]>
http://www.so-l.ru/news/y/2018_03_29_sea_limited_se_down_11_3_since_earnin Thu, 29 Mar 2018 18:10:00 +0300
<![CDATA[Dearth of Pipeline Capacity Plagues Canadian Oil Producers]]> The shortage of pipelines and rail transportations has disrupted the production schedule of the companies in Western Canada. The companies had to slow down their activity levels due to difficulty in crude transportation.

Oil sands companies such as Cenovus Energy Inc. CVE, Suncor Energy Inc. SU and Canadian Natural Resources Ltd. CNQ witnessed a decline in share prices after Cenovus Energy announced a cut in its production at Christina Lake and Foster Creek complexes. Cenovus Energy and Suncor Energy hold a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Per Cenovus Energy, Christina Lake and Foster Creek complexes have been operating at reduced levels since February 2018.  

Factors Causing Transportation Issues

The new supply, which has arrived in the market from the start up of new oil sands, is facing transportation issues as Keystone pipeline lowered shipments in November 2017, thanks to a spill. This has pushed the heavy Canadian crude prices to trade close to the largest discount to U.S. benchmark oil futures in more than four years. Other existing pipelines are fully committed, while exporters shipping crude using rail have faced hindrances amid excess grain that is to be transported.

The heavy discount between Canadian crude prices and futures has forced the oil sands players to shut their plants this month for maintenance. For instance, Canadian Natural Resources’ Peace River oil sands site is currently under maintenance. Moreover, it has also reduced its pace of the ramp up and completion of some wells.

Per industry researcher Genscape Inc., Western Canadian crude production was more than the pipeline capacity to transfer it to markets by 87,000 barrels per day (bpd) in December 2017. This is expected to grow to 338,000 bpd by the end of 2018.

How are Companies Coping?

Cenovus Energy has maintained its full-year oil sands production within the earlier projection of 364,000-382,000 bpd. But the company anticipates first-quarter output in the range of 350,000-360,000 bpd.

The companies are trying to reduce the impact of pipeline and rail constraints by scheduling the maintenance accordingly. They are also in talks with rail providers to work out the issue of lack of locomotive hauling capacity disturbing its Bruderheim crude-by-rail facility near Edmonton.

Toward the end of the year, more volumes are expected to move by rail. Rail companies are eager to help but they need to work out the availability of power and the locomotives needed for this purpose. This will give the much-needed relief as about 900,000 bpd can be exported by rail.

New Pipelines Facing Legal Issues

Enbridge Inc.’s ENB Line 3 replacement spanning across Hardisty, Alberta and Superior, Wisconsin, is expected to provide Canadian takeaway capacity over the next few years. However, the project is still awaiting approval from Minnesota. When operational, the pipeline will augment takeaway capacity by 125,000 bpd.

Kinder Morgan Inc.’s KMI Trans Mountain pipeline has also been facing considerable objection and even TransCanada Corp.’s TRP Alberta-to-Nebraska Keystone XL pipeline. The International Energy Agency (IEA) anticipates the pipelines not to be ready prior to 2021.

Oil Production in Canada

Canada is the fourth-largest producer and third-largest exporter of oil, globally. About 97% of Canada’s proven oil reserves are located in the oil sands and 99% of the total extracts are exported to the United States.

Canada is expected to continue pumping out more oil from the oil sands over the next few years. However, constraints like pipeline approvals and ambiguity over the provision of more export capacity is discouraging the next wave of development. These obstacles are part of a wider capacity crisis developing in North America.

Regardless of the lack of pipelines, Canada is likely to be among the countries with highest oil output over the next few years. The country’s overall production will reach 5.6 million bpd by 2023, versus 4.8 million bpd this year.

Bottom Line

The call of the moment is to expedite the process of approving the pipelines under scanner. If this does not happen or the process is delayed, the increased supply coming out of oil sands in the coming years will face shortages in midstream capacity. Also, the Canadian heavy oil benchmark — Western Canada Select — will trade at high discount.

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Zacks Investment Research]]>
http://www.so-l.ru/news/y/2018_03_27_dearth_of_pipeline_capacity_plagues_cana Tue, 27 Mar 2018 14:45:00 +0300
<![CDATA[North Dakota Oil Production to Reach Record High in 2018]]> As per North Dakota’s oil regulator, the state’s daily crude output fell 0.6% in January after decreasing 1.2% in the previous month. The North Dakota Department of Mineral Resources’ (‘DMR’) latest data said that oil production in January averaged 1,175,638 barrels a day, down 7,198 barrels a day from December.

With crude, natural gas output came down, too – from December’s 2,084,925 thousand cubic feet per day to 2,068,244 thousand cubic feet per day. Meanwhile, North Dakota’s total number of producing wells numbered 14,313 at the end of January, unchanged from the previous month.

While the slight drop in oil activity – primarily attributed to winter weather – is the second month-over-month production decrease in a row, the decline was much smaller than anticipated. Moreover, daily output remained above 1 million barrels for the twelfth month.

Therefore, notwithstanding the temporary blip, the newest numbers confirm the resurgence in volumes extracted from North Dakota, centered on the Bakken Shale formation.

Rig Count Pushes Higher

Some 56 drilling rigs were active in the state in January, up four from the December average. The all-time low of 27 was set in May 2016, while a year ago, North Dakota had just 38 rigs operating. A closely watched yardstick of North Dakota oil industry's strength, the improvement in the number of units searching for oil and gas in the region indicates rebounding drilling activities and production.

Though the rig count is still down considerably from the peak of May 2012 when North Dakota had 218 units drilling, one must note that sophisticated drilling rigs have enabled producers to get more oil out of each well. In other words, modern rigs have helped boost the per-unit output.

$60 Is the New $80 for Shale Industry

More rigs in operation and stable production not only confirms the positive developments for the state of North Dakota, but also points to the rising flood of U.S. shale-driven production.

Now at a financial equilibrium, the shale firms are putting more rigs and employees back to work. Throughout the downturn, producers (in North Dakota and particularly the Permian Basin in Texas) worked tirelessly to cut costs down to a bare minimum and look for innovative ways to churn out more oil from rock. And they managed to do just that by improving drilling techniques.

With these efforts, many upstream companies have repositioned themselves to adapt to the new $50-$60 oil reality and even thrive at those prices. In other words, while OPEC's moves to trim output and rebalance the demand-supply situation has stabilized the market to a large extent, in the process it has incentivized shale drillers to churn out more.

What Lies Ahead?

The U.S. West Texas Intermediate benchmark hit a more than three-year high of around $66 recently. Also, we are confident that improving fundamentals have probably put a floor under crude prices for the time being. While we do not rule out chances for short-term pullbacks on oversupply concerns and a stronger U.S. dollar, we remain extremely confident of an extended period of gains in the near future.

In this context, the steady recovery in North Dakota’s production bode well for the region. With oil prices likely to head higher, the monthly output in the second-largest oil producing state after Texas is expected to stay above the psychologically important one million barrel a day mark for the time being.

Dakota Access Pipeline: Safe and Reliable Method for Transporting Oil

Apart from the strength in crude prices, there is another factor that might speed up Bakken output growth – the 1,100-mile-long Dakota Access Pipeline.

Making good on his campaign promises to rev up infrastructure spending, President Trump ignored bitter opposition from environmental activists and signed executive order to smooth the way for Energy Transfer Partners’ ETP $3.7 billion Dakota Access Pipeline just a few days into his new Administration. As a result, disregarding the censure from environmental groups and the Standing Rock Sioux Tribe, the sponsor brought the controversial conduit online in early June 2017.

With the project’s arrival, operators have scrambled to use the Dakota Access Pipeline to send a major portion of their product to market. In fact, around 78% of oil shipments out of North Dakota are now being carried by pipelines, with the costly railroad share dropping from over 24% in the early part of 2017 to little over 10%.

Market players believe that the pipeline has helped in bettering the region’s drilling economics by lowering transportation costs for operators. Set to carry about 520,000 barrels of oil daily, or more than 50% of North Dakota’s output, the commencement of the Dakota Access Pipeline has bridged the gap between Bakken players and producers in other U.S. oil producing areas like the Permian Basin.

The geographically constrained Bakken Shale's crude has now better access to Gulf and East Coast refineries and also reaches international markets. As expected, the pipeline, where energy majors like Phillips 66 PSX, Enbridge Inc. ENB and Marathon Petroleum Corp. MPC have invested, has helped to improve the region’s drilling economics by lowering transportation costs for operators and benefit the state financially.

Products from companies like Continental Resources, Inc. CLR,  and Hess Corp. HES were among the first to reach the international markets (China and Netherlands), with the help of Dakota Access.

Overall, rebounding oil prices, together with the start of the Dakota Access Pipeline, are expected to support further increase in Bakken output by providing the companies a chance to push their produce outward at a lower cost.

In fact, Lynn Helms – the director of DMR – feels that a conducive oil pricing environment is likely push the state’s output beyond the all-time high of 1,227,483 barrels/day sometime by mid-2018, eventually hitting 1.3 million barrels by the end of the year.

Want to Own a North Dakota Play Now?

If you are looking for a near term North Dakota play, Continental Resources may be a good selection. This company actually has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Continental is an oil explorer and producer with primary focus in North Dakota’s Bakken play. The company, which holds acreage in some top-notch reservoirs in the U.S., expects to have roughly 120 gross operated Bakken wells by the end of this year.

Over 30 days, the Oklahoma City, OK-based company has seen the Zacks Consensus Estimate for 2018 and 2019 increase 19.7% and 18%, to $2.37 and $2.69 per share, respectively.

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Energy Transfer Partners, L.P. (ETP): Free Stock Analysis Report
 
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http://www.so-l.ru/news/y/2018_03_21_north_dakota_oil_production_to_reach_rec Wed, 21 Mar 2018 22:23:00 +0300
<![CDATA[Enbridge Energy Partners credit rating could 'significantly weaken,' DBRS warns]]> http://www.so-l.ru/news/y/2018_03_21_enbridge_energy_partners_credit_rating_c Wed, 21 Mar 2018 00:58:59 +0300 <![CDATA[Enbridge's Line 3 Project Passes Minnesota Regulatory Test]]> Enbridge Inc. ENB recently cleared a significant regulatory hurdle of final environmental review for its proposed Line 3 crude pipeline project in northern Minnesota. The project has received unanimous approval from the Minnesota Public Utilities Commission. The project's fate now awaits an administrative law judge's report on its importance, which is expected to be released on Apr 23, 2018.

Regulators: Line 3 Project is “adequate”

The regulatory board is of the opinion that the project meets all legal requirements, after it considered the proposed alternatives for the pipeline's route. Through the project, which was highly opposed by the environmentalists, the company is planning to replace the aging Line 3 crude oil pipeline.

The old pipeline was built in the 1960s and ships crude to Enbridge's terminal in Superior, WI from Alberta through North Dakota and Minnesota. The company, with the use of strong steel, is likely to restore the pipeline's original shipping capacity of 760,000 barrels per day (BPD), which has come down to 390,000 BPD. The company's proposition incorporates replacing the old pipeline's 282-mile stretch in Minnesota with a new alternate routed pipeline of 337 miles that goes through the pristine Mississippi River headwaters area. It is also expected to make the shipping to Midwest refineries more reliable.

Meanwhile the public opinion on the pipeline remains divided. The Minnesota locals have welcomed the replacement to ensure better environmental security and the creation of 8,600 jobs. The total economic impact of the project on the state is expected to be around $2 billion. On the other hand, it contradicts with the interests of the Ojibwe groups, who fear that a spill in their lake can disrupt food sources as it can contaminate the area where they gather wild rice.

Enbridge’s View

Calgary, Alberta-based Enbridge’s take on the project answers many questions regarding the environmental impact of the pipeline.  As it is, the pipeline, being quite old, needs frequent maintenance. Moreover, the pipeline’s currently curtailed capacity forces oil shippers from Alberta oil sands to carry the additional crude by rail or road, both less efficient than the pipeline. Enbridge believes, the approval of the replacement project will help the refineries in Minnesota and the regional oil market. Moreover, the company expects that the jobs created through the project and following its completion will be important for the state's economy.

The capital cost of the project in Canada is estimated to be C$5.3 billion while the portion in the United States will cost $2.9 billion. The pipeline will transport light, medium and heavy crude oil.

Price Performance

Enbridge has lost 24.7% last year against 12.2% growth of its industry.

 

Zacks Rank and Stocks to Consider

Enbridge carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the oil and energy sector are Pioneer Natural Resources Company PXD, Continental Resources, Inc. CLR and ConocoPhillips COP. While Pioneer Natural and Continental Resources sport a Zacks Rank #1 (Strong Buy), ConocoPhillips has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Irving, TX-based Pioneer Natural is an independent oil and gas exploration and production company. Its revenues for first-quarter 2018 are anticipated to improve 22.8% from the prior-year quarter. The company witnessed a positive average earnings surprise of 66.9% in the trailing four quarters.

Oklahoma City, OK-based Continental Resources is an oil and gas exploration and production company. Its revenues for first-quarter 2018 are expected to improve 55.1% from the year-ago quarter. For 2018, the bottom line is anticipated to be up 366.7%.

Houston, TX-based ConocoPhillips is an upstream energy player. Its revenues for first-quarter 2018 are anticipated to improve 9.6% from the prior-year quarter. The company witnessed a positive average earnings surprise of 144.5% in the trailing four quarters.

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Zacks Investment Research]]>
http://www.so-l.ru/news/y/2018_03_20_enbridge_s_line_3_project_passes_minneso Tue, 20 Mar 2018 18:03:00 +0300
<![CDATA[FERC's Verdict to Impact Enbridge's (EEP) Financial Position]]> Enbridge Energy Partners, L.P. EEP has announced the initial evaluation of the effects of the Federal Energy Regulatory Commission's (FERC) recent policy change, related to the recovery of income tax amounts included in the cost of service rates of pipelines within a master limited partnership (MLP).

A major change in its long-standing policy was announced by FERC on Mar 15, 2018. Pursuant to this, permit entities organized as master limited partnerships (MLPs), would no longer be able to recover an income tax allowance in the respective cost of service rates.  

The policy in place since 2005, has always treated the income tax amounts as inclusion in the rates of pipelines and other entities, subject to cost of service rate regulation within an MLP.

Enbridge Energy Partners, organized as an MLP, used to charge certain amount of the rates applicable to its expansion projects annually on a cost of service basis through the Lakehead Facility Surcharge Mechanism (FSM).

The firm plans to ask for rehearing of this policy change at the FERC. The commission's new policy will be effective when it gets published in the Federal Register probably on Mar 31, 2018 for the purpose of estimating the 2018 impact.

However, if FERC’s new policy is approved ditto its announcement, then Enbridge Energy Partners’ revenues would be reduced by around $100 million and distributable cash flow (DCF) by $60 million in 2018.

Per the prior preliminary analysis and estimates, Enbridge Energy Partners is altering its 2018 DCF guidance range to $650-$700 million from $720-$770 million and that of 2018 total distribution coverage to about 1.0x from about 1.15x.

More clarification is required with respect to the new policy statement’s implementation while the partnership firm will keep an eye on evaluating the financial impact on its operation as and when more information is available.

Price Performance

Enbridge Energy Partners’ shares have underperformed its industry in the last three months. The stock has lost 23.6% compared with the industry’s 8.4% decline.

 

Zacks Rank & Key Picks

Enbridge Energy Partners carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the same sector are Statoil ASA STO, Pioneer Natural Resources Company PXD and ConocoPhillips COP, each of the three sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Statoil, based in Norway, is a major international integrated oil and gas company. It delivered an average positive earnings surprise of 23.2% in the last four quarters.

Headquartered at Irving, TX, Pioneer Natural Resources Company is an independent oil and gas exploration plus production entity. It pulled off an average beat of 66.92% in the trailing four quarters.

Houston, TX-based ConocoPhillips is a major global exploration and production company. It came up with a positive surprise of 144.45% in the last four quarters.

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To read this article on Zacks.com click here.]]>
http://www.so-l.ru/news/y/2018_03_19_ferc_s_verdict_to_impact_enbridge_s_eep Mon, 19 Mar 2018 17:30:00 +0300
<![CDATA[Why Is Enbridge (ENB) Down 8.7% Since its Last Earnings Report?]]> Why Is Enbridge (ENB) Down 8.7% Since its Last Earnings Report?Enbridge (ENB) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.


]]> http://www.so-l.ru/news/y/2018_03_19_yahoo_finance_why_is_enbridge Mon, 19 Mar 2018 11:11:08 +0300 <![CDATA[Why Is Enbridge (ENB) Down 8.7% Since its Last Earnings Report?]]> It has been about a month since the last earnings report for Enbridge Inc ENB. Shares have lost about 8.7% in that time frame.

Will the recent negative trend continue leading up to its next earnings release, or is ENB due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Fourth-Quarter 2017 Results

Enbridge reported strong fourth-quarter 2017 results, courtesy of higher liquid delivery volumes from the Canadian Mainline and Wood Buffalo Extension Pipeline. Higher natural gas processing volumes, lower expenses and contributions from new projects led to the encouraging numbers.

Earnings per share were 48 cents, which beat the Zacks Consensus Estimate and the year-ago quarter’s figure, both of which were 42 cents.

Total revenues in the quarter rose 45% year over year to $10,149 million. The top line also surpassed the Zacks Consensus Estimate of $9,385 million. 

Segment Analysis

Liquids Pipelines: Adjusted operating income in this segment was C$1,482 million, up 9.4% from C$1,355 million in the year-ago quarter. Higher delivery of liquids from the Canadian Mainline and Wood Buffalo Extension Pipeline led to the improvement.

Gas Pipelines and Processing: The segment reported earnings of C$1,020 million, skyrocketing from C$166 million recorded in fourth-quarter 2016. Higher contributions from expansion projects commissioned in 2016 and 2017 along with Spectra assets drove the upside.

Gas Distribution: This business unit reported profit of C$450 million, up more than 89% from C$238 million recorded in the October-December 2016 quarter. The upside was mainly due to the acquisition of the Union Gas, which benefited from higher contributions from the Dawn-Parkway expansion projects, improved storage optimization and increases in delivery rates.

Green Power and Transmission: This segment delivered earnings of C$109 million, which increased from C$91 million recorded in the prior-year quarter.

Energy Services: This segment reported loss of C$21 million, wider than a loss of C$4 million in fourth-quarter 2016.

Outlook

The company expects to initiate online secured growth projects worth $22 billion through 2020. Enbridge increased the dividend by 10% for 2018 and expects annual dividend per share at a CAGR of 10% through 2020. Considering the stable and improving business, Enbridge expects 2018 DCF between $4.15 and $4.45 per share.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.

Enbridge Inc Price and Consensus

 

VGM Scores

At this time, ENB has an average Growth Score of C, however its Momentum is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Our style scores indicate that the stock is more suitable for momentum investors than growth investors.

Outlook

ENB has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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Zacks Investment Research]]>
http://www.so-l.ru/news/y/2018_03_19_why_is_enbridge_enb_down_8_7_since_it Mon, 19 Mar 2018 11:11:00 +0300
<![CDATA[The Enbridge Saga: When FERC Gives You Lemons - Part 1]]> http://www.so-l.ru/news/y/2018_03_19_the_enbridge_saga_when_ferc_gives_you_l Mon, 19 Mar 2018 09:50:21 +0300 <![CDATA[Chicago Gasoline Highest-Flying Commodity Benchmark In Trump Era]]> http://www.so-l.ru/news/y/2018_03_16_russia_ukraine_to_discuss_latest_gas_di Sat, 17 Mar 2018 00:00:00 +0300 <![CDATA[European Gas Glut Forces Traders To Store Fuel On Tankers]]> http://www.so-l.ru/news/y/2018_03_16_bp_technology_could_lower_oil_productio Fri, 16 Mar 2018 22:30:00 +0300 <![CDATA[Minnesota regulators OK environmental review for Enbridge pipeline]]> http://www.so-l.ru/news/y/2018_03_16_minnesota_regulators_ok_environmental_re Fri, 16 Mar 2018 21:41:20 +0300 <![CDATA[Enbridge Clears Minnesota Hurdle For Line 3 Replacement]]> http://www.so-l.ru/news/y/2018_03_15_iraq_looks_for_investors_to_build_70_000 Fri, 16 Mar 2018 21:00:00 +0300 <![CDATA[FERC changes to hit Enbridge Energy 2018 revenue by $100M, DCF by $60M]]> http://www.so-l.ru/news/y/2018_03_16_ferc_changes_to_hit_enbridge_energy_2018 Fri, 16 Mar 2018 18:13:32 +0300 <![CDATA[Enbridge does not expect material impact from FERC policy revisions]]> http://www.so-l.ru/news/y/2018_03_16_enbridge_does_not_expect_material_impact Fri, 16 Mar 2018 15:32:55 +0300