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Enbridge (ENB) Ordered to File More Details for Line 5 Tunnel
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Enbridge Inc. (ENB - Free Report) has been instructed by the State of Michigan regulators to provide additional information on safety and engineering for its proposed Line 5 oil pipeline tunnel.
The company aims to replace two existing Line 5 pipelines in the Straits of Mackinac, connecting Lake Huron and Lake Michigan. It is planning to develop a segment, which would go through the proposed underground tunnel.
Enbridge failed to show that the underground oil pipeline tunnel could be constructed or operated safely. Hence, the Michigan Public Service Commission demands additional information about the possibility of explosions and fires involving electrical equipment during the construction of the tunnel below the Straits of Mackinac.
Enbridge’s Line 5 is a major source of 540,000 barrels per day of propane and crude oil supply for Michigan and nearby areas. The line, which is part of the company’s larger Mainline and Lakehead systems, extends from Wisconsin through Michigan and into Ontario.
The tunnel project would make Line 5 safer in the coming years. The latest decision is a setback for Enbridge as it intended to build the tunnel to address issues that Line 5 could spill into the Great Lakes. Environmental groups are concerned over the risk of an oil leak since a section of the pipeline runs underwater through the Straits of Mackinac.
Enbridge’s Line 5 has been facing severe backlash from environmental groups. Michigan’s governor and attorney general are favoring the move of shutting down the pipeline over concerns of a potential spill. The company will continue to work with the Michigan commission to address any remaining concerns regarding the tunnel project.
Company Profile & Price Performance
Headquartered in Calgary, AB, Enbridge is a leading energy infrastructure company.
Shares of Enbridge have outperformed the industry in the past six months. The stock has gained 4.4% compared with the industry’s 2.7% growth.
BP plc (BP - Free Report) is a fully integrated energy company, with a strong focus on renewable energy. The British energy giant added that its target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from the key new upstream projects had been met successfully.
BP announced plans to execute a $2.5-billion share buyback, which is expected to complete before reporting the second-quarter results. The company anticipates buying back $1 billion worth of shares every quarter, considering Brent crude price at $60 per barrel. Also, BP expects to receive $2-3 billion of divestment and other proceeds this year.
Phillips 66 (PSX - Free Report) is the leading player in each of its operations like refining, chemicals and midstream in terms of size, efficiency and strengths. PSX currently has a Zacks Style Score of A for Growth and Momentum, and B for Value.
Phillips 66 has hiked its quarterly dividend to 97 cents per share, representing an increase of 5% from the prior quarter. With the recent resumption of the stock repurchase program, the increment in the quarterly dividend represents Phillips 66’s strong focus on returning capital to stockholders. Since the company’s inception in 2012, this has resulted in its 11th annual dividend hike.
PDC Energy, Inc. is an independent upstream operator that explores, develops and produces natural gas, crude oil and natural gas liquids. As of Mar 31, 2022, PDCE had $1.65 billion in total liquidity, while its credit facility currently has a total borrowing base of $3 billion. PDCE’s debt maturity profile is favorable.
A tight leash on costs and strong commodity prices are set to translate into strong levels of free cash flows for PDC Energy. As proof of this, the company anticipates generating $1.7 billion in adjusted free cash flow this year (assuming price realizations of $95 per barrel of oil and natural gas at $6), while returning $800 million-$1 billion to its shareholders during the same period.
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Enbridge (ENB) Ordered to File More Details for Line 5 Tunnel
Enbridge Inc. (ENB - Free Report) has been instructed by the State of Michigan regulators to provide additional information on safety and engineering for its proposed Line 5 oil pipeline tunnel.
The company aims to replace two existing Line 5 pipelines in the Straits of Mackinac, connecting Lake Huron and Lake Michigan. It is planning to develop a segment, which would go through the proposed underground tunnel.
Enbridge failed to show that the underground oil pipeline tunnel could be constructed or operated safely. Hence, the Michigan Public Service Commission demands additional information about the possibility of explosions and fires involving electrical equipment during the construction of the tunnel below the Straits of Mackinac.
Enbridge’s Line 5 is a major source of 540,000 barrels per day of propane and crude oil supply for Michigan and nearby areas. The line, which is part of the company’s larger Mainline and Lakehead systems, extends from Wisconsin through Michigan and into Ontario.
The tunnel project would make Line 5 safer in the coming years. The latest decision is a setback for Enbridge as it intended to build the tunnel to address issues that Line 5 could spill into the Great Lakes. Environmental groups are concerned over the risk of an oil leak since a section of the pipeline runs underwater through the Straits of Mackinac.
Enbridge’s Line 5 has been facing severe backlash from environmental groups. Michigan’s governor and attorney general are favoring the move of shutting down the pipeline over concerns of a potential spill. The company will continue to work with the Michigan commission to address any remaining concerns regarding the tunnel project.
Company Profile & Price Performance
Headquartered in Calgary, AB, Enbridge is a leading energy infrastructure company.
Shares of Enbridge have outperformed the industry in the past six months. The stock has gained 4.4% compared with the industry’s 2.7% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Enbridge currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BP plc (BP - Free Report) is a fully integrated energy company, with a strong focus on renewable energy. The British energy giant added that its target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from the key new upstream projects had been met successfully.
BP announced plans to execute a $2.5-billion share buyback, which is expected to complete before reporting the second-quarter results. The company anticipates buying back $1 billion worth of shares every quarter, considering Brent crude price at $60 per barrel. Also, BP expects to receive $2-3 billion of divestment and other proceeds this year.
Phillips 66 (PSX - Free Report) is the leading player in each of its operations like refining, chemicals and midstream in terms of size, efficiency and strengths. PSX currently has a Zacks Style Score of A for Growth and Momentum, and B for Value.
Phillips 66 has hiked its quarterly dividend to 97 cents per share, representing an increase of 5% from the prior quarter. With the recent resumption of the stock repurchase program, the increment in the quarterly dividend represents Phillips 66’s strong focus on returning capital to stockholders. Since the company’s inception in 2012, this has resulted in its 11th annual dividend hike.
PDC Energy, Inc. is an independent upstream operator that explores, develops and produces natural gas, crude oil and natural gas liquids. As of Mar 31, 2022, PDCE had $1.65 billion in total liquidity, while its credit facility currently has a total borrowing base of $3 billion. PDCE’s debt maturity profile is favorable.
A tight leash on costs and strong commodity prices are set to translate into strong levels of free cash flows for PDC Energy. As proof of this, the company anticipates generating $1.7 billion in adjusted free cash flow this year (assuming price realizations of $95 per barrel of oil and natural gas at $6), while returning $800 million-$1 billion to its shareholders during the same period.