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Enbridge's TEAL Pipeline Expansion Becomes Fully Operational

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Enbridge Inc’s (ENB - Free Report) Texas Eastern Appalachian Lease (“TEA”L) natural gas pipeline expansion in Ohio has become fully operational.

In March 2019, the Federal Energy Regulatory Commission (FERC) gave its approval for the pipeline to begin operations at the new Salineville compressor station. TEAL is intended to supply Enbridge's new Nexus pipeline, which has a planned capacity of 1.5 billion cubic feet per day. The pipeline became partially operational in late 2018.

The 36-inch pipeline in Monroe County, Ohio, is 4.4 miles (7 kilometers) long and comprises 1,790 feet of connecting pipeline to the Nexus line in Columbiana County, the new compressor station in that county as well as a new compressor unit in the Colerain compressor station. The project, which is worth $183 million, also altered an existing line to facilitate bi-directional flows.

Nexus has a design capacity of 1.5 billion cubic feet per day and began partial services in 2018. The pipelines are operated by Enbridge.

Enbridge is a leading energy infrastructure company. One of its businesses comprises the transportation of energy through the most extensive as well as advanced crude and liquids pipeline system that is spread across 17,018 miles globally. Through the Mainline and Express pipelines, the company transports 2.8 million barrels of crude every day that accounts for almost 68% of the Canadian crude oil production that are transported to the United States.

Through 2018, Enbridge has placed online C$7 billion worth of growth projects. The projects were placed into service per schedule and didn’t exceed budget. This reflects on the company’s strong project execution skill. Moreover, the company is likely to bring online another C$16 billion worth of midstream developments thorough 2019 to 2020. This is likely to boost shareholders’ value in the upcoming years.

Zacks Rank & Key Picks

Currently, Enbridge carries a Zacks Rank #3 (Hold).

Some better-ranked players in the energy space are Antero Resources Corporation (AR - Free Report) , CrossAmerica Partners L.P. (CAPL - Free Report) and SEACOR Holdings, Inc . While Antero Resources and CrossAmerica Partners sport a Zacks Rank #1 (Strong Buy), SEACOR Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources is an independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids as well as oil resources in the Appalachian Basin. The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters.

CrossAmerica Partners is involved in the wholesale distribution of motor fuels, comprising gasoline and diesel fuel. The partnership delivered an average positive earnings surprise of 452.2% in the last four quarters.

SEACOR Holdings is a diversified holding company, which primarily focuses on domestic and international transportation, logistics as well as risk management consultancy. The bottom line for 2019 is expected to inch up 1.7% year over year. The company delivered an average positive earnings surprise of 20.5% in the trailing four quarters.

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