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Enbridge's Line 3 Project Passes Minnesota Regulatory Test
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Enbridge Inc. (ENB - Free Report) 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 - Free Report) , Continental Resources, Inc. and ConocoPhillips (COP - Free Report) . 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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And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Enbridge's Line 3 Project Passes Minnesota Regulatory Test
Enbridge Inc. (ENB - Free Report) 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 - Free Report) , Continental Resources, Inc. and ConocoPhillips (COP - Free Report) . 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.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>