Enbridge's (ENB) Line 5 Gets Go-Ahead But Must Cease by 2026
Enbridge Inc. ENB received permit to operate the controversial Line 5 pipeline across the Wisconsin territory of an indigenous band for the time being. However, activities on the property "must cease" on Jun 16, 2026, per a U.S. judge.
Enbridge, a Calgary-based firm, requested clarity from Wisconsin district court judge William Conley regarding his verdict that gave the company only three years to move that part of the pipeline. ENB can keep running Line 5 as long as it complies with the court's order to share its profits with the band.
The Wisconsin Department of Natural Resources and the U.S. Army Corps of Engineers are slated to make judgements on the reroute's timeline in 2025, according to Enbridge. The pipe's relocation is anticipated to take a year or so.
Line 5 transports 540,000 barrels of oil and natural gas liquids per day from Wisconsin and Michigan to Sarnia, Ontario refineries. A shutdown, according to the pipeline’s defenders (which include the federal government), would severely affect the economy in the Prairies and the American Midwest, where it serves as feedstock for refineries in Michigan, Ohio and Pennsylvania.
Enbridge stated that it disagrees with the judge's belief that the business is trespassing. It plans to appeal against the ruling, and may ask for a stay order while the petition is underway.
Zacks Rank & Key Picks
Currently, Enbridge carries a Zack Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Evolution Petroleum Corporation EPM, NGL Energy Partners LP NGL and RGC Resources Inc. RGCO. Evolution Petroleum sports a Zacks Rank #1 (Strong Buy) at present, and NGL Energy Partners and RGC Resources carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 60 days.
NGL Energy Partners, headquartered in Tulsa, OK, is a limited partnership company operating a vertically-integrated propane business with three operating segments — retail propane, wholesale supply and marketing, and midstream. NGL has witnessed an upward earnings estimate revision for 2024 in the past 30 days.
RGC Resources is a holding company that offers energy and associated products and services through its operational subsidiaries — Roanoke Gas Company and RGC Midstream, LLC. RGCO has thousands of customers through its natural gas distribution companies that serve the Roanoke Valley and Bluefield, Virginia and West Virginia areas.
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