Enbridge (ENB) Resumes Operations at Westcoast Gas Pipeline
Enbridge Inc ENB fully resumed operations at its Westcoast natural gas pipeline system after it temporarily closed part of the gas pipeline due to heavy flooding in the British Columbia province.
Enbridge shut down a 30-inch pipeline, which is one of the two pipelines that constitute the Westcoast natural gas pipeline system. The other 36-inch pipeline remained in operation.
The Westcoast pipeline typically delivers up to 1.8 billion cubic feet of gas per day (bcf/d) to British Columbia’s lower mainland and the Pacific Northwest region of the United States. The heavy flooding, hitting parts of the province of British Columbia, resulted in food and fuel shortages. As a result, customers experienced reduced supplies after Enbridge sealed the pipeline segment.
Despite the incident, Enbridge maintained its natural gas service and increased capacity on the system. Per Enbridge, the Westcoast pipeline is currently transporting 1.63 bcf/d of natural gas, which is above 100% of the total contracted volume transported last year at this time.
Another pipeline system that was temporarily closed due to the rainstorms was Canada’s Trans Mountain oil pipeline system. The line, which transports crude from Alberta to the Pacific Coast, has a capacity of 300,000 barrels per day of oil and refined products. This is the most prolonged shutdown in the 70-year history of the line.
Trans Mountain cited no evidence of a fuel leak from the pipeline. As a precautionary measure, Trans Mountain installed spill-response equipment at control points in river areas near to or downstream from where operations are being carried out. The company is progressing toward making the oil line operational by the end of the week.
Company Profile & Price Performance
Headquartered in Calgary, Alberta, Enbridge is a leading energy infrastructure company.
Shares of Enbridge have outperformed the industry in the past six months. The stock has gained 3.2% against the industry’s 1.6% decline.
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Zacks Rank & Stocks to Consider
Enbridge currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following stocks that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy SM is one of the most attractive players in the exploration and production space, which engages in the exploration, exploitation, development, acquisition and production of natural gas and crude oil in North America. SM's operations are focused on the Permian Basin, and the South Texas and Gulf Coast regions. SM has total of 443,188 net acres under its possession, of which 33.5% is developed.
In the past year, shares of SM Energy have surged 561.5% compared with the industry's growth of 96.8%. SM's earnings for 2021 are expected to soar 695.7% year over year. SM currently has a Zacks Style Score of A for both Growth and Momentum. The upstream energy player beat the Zacks Consensus Estimate thrice in the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 126.3%, on average.
Diamondback Inc FANG, based in Midland, TX, is an independent oil and gas exploration and production company. FANG primarily focuses on the Permian basin, with around 414,000 net acres. The upstream operator focuses on growth through a combination of acquisitions and active drilling in America's hottest and lowest-cost shale region. As of 2020-end, Diamondback held 1,316 million barrels of oil equivalent in proved reserves.
In the past year, shares of Diamondback have increased 128.3% compared with the Zacks Exploration and Production Industry's growth of 96.7%. FANG expects an earnings growth of 267.4% for 2021. The company also witnessed 9 upward revisions in the past 30 days. Diamondback's board of directors recently declared a quarterly dividend of 50 cents per share for the third quarter, indicating an 11.1% hike in its quarterly payout from the previous level of 45 cents.
Northern Oil and Gas, Inc. NOG is an independent upstream operator that engages in the acquisition, exploration, development and production of oil and natural gas properties. NOG employs a unique strategy wherein it owns non-operating, minority interests in thousands of oil and gas wells, which are majority-owned and operated by some leading producers. As of 2020 end, NOG had a proved reserve base of 122.6 million barrels of oil equivalent.
In the past year, shares of Northern Oil and Gas have gained 205.5% compared with the industry's growth of 96.7%. NOG is also projected to witness year-over-year earnings surge of 130.8% in 2021. NOG witnessed six upward revisions in the past 30 days. Prioritizing returns to investors, NOG recently initiated a 3 cents per share quarterly base dividend, with the first payment made in the third quarter. It plans to hike the payout to 4.5 cents following the closure of the Permian acquisitions. The company’s debt maturity profile is also in good shape with the earliest maturity ($550 million) in 2028.
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