Enbridge Might Reduce Stake in German Offshore Wind Project
Enbridge Inc. ENB is looking forward to divest half of its 50% stake in the 497-MW Hohe See wind project, located off the coast of Germany, per Bloomberg. The company bought the asset in early-2017.
Enbridge is developing the project with Energie Baden-Wuerttemberg AG since it acquired the stake in the asset, located in the North Sea. The Canadian energy infrastructure company had plans to invest a total of $1.3 billion (C$1.7 billion) in the project. The project is expected to come online in 2019.
The companies that are planning to bid for the stakes in the wind farm project include Brookfield Asset Management Inc, Caisse de Depot et Placement du Quebec and Green Investment Group Ltd. of Macquarie Group Ltd.
The divestment can aid the company, which has a significant exposure to debt. During 2017, its long-term debt has risen more than 70% while cash balance declined almost 73%, reflecting weak financials. If divested, the move will be in line with the company's plan to get rid of C$10 billion ($7.8 billion) worth of non-core assets. In 2018 alone, the company wants to sell $2.34 billion (C$3 billion) worth of the non-core properties, as it is trying to reduce its debt burden and streamline portfolio since its Spectra Energy acquisition last year.
Price Performance
Enbridge has lost 25.4% in the last year compared with 19.6% decline of its industry.
About Enbridge
Headquartered in Calgary, Alberta in Canada, Enbridge is a leading energy infrastructure company. One of its businesses is the transportation of energy through the most extensive, and advanced crude and liquids pipeline system that spreads globally. Through the Mainline and Express pipelines, the company transports 2.8 million barrels of crude every day, accounting for almost 65% of the Canadian crude oil production that is transported to the United States.
Zacks Rank and Stocks to Consider
Enbridge carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the oil and energy sector are Pioneer Natural Resources Company PXD, EOG Resources, Inc. EOG and Continental Resources, Inc. CLR, each sporting a Zacks Rank #1 (Strong 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 23.7% from the prior-year quarter. The company witnessed an average positive earnings surprise of 66.9% in the trailing four quarters.
Houston, TX-based EOG Resources is an upstream energy player. Its earnings for 2018 are anticipated to skyrocket 282.1% year over year. The company delivered an average positive earnings surprise of 25.7% 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 estimated to soar 55.7% from the year-ago quarter’s figure. For 2018, the bottom line is likely to be up 370.6%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Enbridge Inc (ENB) : Free Stock Analysis Report
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Continental Resources, Inc. (CLR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
