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Enbridge May Defer In-Service Date of Line 3 to Q4 2019

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Enbridge Inc. (ENB - Free Report) is uncertain about when the Line 3 replacement project will commence operations, per Reuters. The C$8.2 billion development might get deferred to November 2019, the source added.  

The project, touted to be the largest for Enbridge, entails the replacement of the entire old pipeline, spanning over 1,031 miles. The company plans to get the restructured pipeline online by the third quarter of 2019, which might get delayed to Nov 1, 2019 – said Guy Jarvis, the Executive Vice President of Enbridge. 

Objections from local government and environmentalists have hurt several midstream infrastructure projects, including Line 3 — stretching from Hardisty, Alberta to Superior, Wisconsin. Investors should know that initially, the replaced pipeline will be able to carry 760,000 barrels of oil every day.  

Headquartered in Calgary, Alberta, Enbridge is a leading energy infrastructure company. On Nov 29, the firm announced plans to focus on more profitable businesses as well as lower debt burden. The company intends to streamline its portfolio by spending as much as C$22 billion on growth and maintenance developments through 2020-end.

However, compared to 2012, the company’s debt load has increased significantly. Importantly, during the first nine months of 2017, long-term debt has risen more than 75% while cash balance declined 59%, reflecting weak financials. Moreover, the company has lost 8.9% year to date, underperforming the industry’s 1.3% decline.

Enbridge carries a Zacks Rank #3 (Hold). A few better-ranked energy players are BP Plc (BP - Free Report) , China Petroleum & Chemical Corp. and Northern Oil and Gas, Inc. (NOG - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

BP is a leading integrated energy firm. The company managed to surpass the Zacks Consensus Estimate in three of the last four quarters, with an average positive earnings surprise of 26.8%.

Headquartered in Beijing, China Petroleum is a leading integrated energy player. The company will likely witness year-over-year earnings growth of 59.1% in 2017.

Based in Minnetonka, MN, Northern Oil is an upstream energy player. The company’s 2017 revenues are estimated to grow almost 44%.

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