Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Canadian pipeline operator, Enbridge Inc. (ENB - Snapshot Report), has affirmed that its Waupisoo Pipeline (Line 18) is back in operation. The pipeline, which runs between the Cheecham Terminal and Edmonton, was shut down owing to significant release from the nearby Line 37 pipeline.

On Jun 22, Enbridge’s leak detection system identified a potential release from Line 37 pipeline, which connects facilities in the Long Lake area to Enbridge’s Terminal in Cheecham, Alberta. The company believes that the leakage was mainly due to ground movement caused by torrential rainfall in north Alberta. Consequently, for precautionary measures, Enbridge closed all the pipelines in the area, including Line 18.

However, according to Enbridge, the Alberta Energy Regulator permitted the restart of Line 18 on Jun 25. Moreover, Athabasca Pipeline’s (Line 19) southern part, which runs between Cheecham and Hardisty, Alberta, was back to service on Jun 23, 2013.

Enbridge reveals that it will conduct further examinations on the Line 37 incident area, in order to safely resume the operations of the other lines in the affected region. Moreover, the company has been bearing a cost of $1 million per day, owing to the shutdown of all the pipelines adjacent to the Line 37 pipeline.

Enbridge is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates the world's longest crude oil and liquids pipeline system in Canada and the United States. The company also has international operations and growing involvement in the natural gas transmission and midstream businesses.

Enbridge currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next 1 to 3 months.    

Meanwhile, one can look at Cheniere Energy Partners LP (CQP), Oiltanking Partners LP (OILT - Snapshot Report) and Pembina Pipeline Corp (PBA - Snapshot Report) as good buying options. These oil production and pipeline operators – sporting a Zacks Rank #1 (Strong Buy) – have solid secular growth stories with the potential to rise significantly from the current levels.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%