Enbridge's Line 3 to Face Deeper Inquiry for Water Permits
Enbridge Inc.’s ENB Line 3 crude-oil pipeline replacement and expansion project is expected to face potential delays following the Minnesota Pollution Control Agency’s decision to carry out a longer and more contested case process before granting the long-awaited project a crucial permit. The hearing is expected to be scheduled later this summer.
The Water Quality Certificate Permit will focus on the pipeline’s construction at water crossings and wetlands. The deadline for issuance of the project’s permit has been extended from Aug 15 to Nov 14. Enbridge intends to keep working with other agencies to receive other necessary permits for the project. It still expects construction work to commence by the year-end. The company will continue pre-construction activities, which will allow it to finish the project within six-nine months, once it receives the final permit.
The project has faced fierce opposition from environmentalists and indigenous groups, and is pushed back by at least a year due to regulatory hurdles. It has been winding through the regulatory processes for five years. Due to the delays, the company now expects the majority of the remaining $1.5-billion capital spending for the project to occur in 2021.
The pipeline is currently running at half of its capacity. The replacement project will allow the pipeline to restore full flow from the Canadian oil hub in Edmonton, Alberta, to refiners in the U.S. Midwest. The Canadian part of the pipeline is already completed. Once the construction begins, the project will create 4,200 construction jobs for local workers.
Price Performance
Enbridge’s shares have rallied 22.3% from the beginning of the second quarter compared with 36.6% growth of the industry it belongs to.
Zacks Rank & Other Stocks to Consider
Enbridge currently has a Zacks Rank #2 (Buy). Other top-ranked players in the energy space include Chesapeake Energy Corporation CHK, CNX Resources Corporation CNX and Comstock Resources, Inc. CRK, each holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chesapeake Energy delivered an average positive earnings surprise of 42.8% in the last four quarters.
CNX Resources beat earnings estimates thrice and met once in the last four quarters, with average positive surprise of 111.5%.
Comstock Resources’ 2020 sales are expected to gain 33.7% year over year.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
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
Chesapeake Energy Corporation (CHK) : Free Stock Analysis Report
Comstock Resources, Inc. (CRK) : Free Stock Analysis Report
CNX Resources Corporation. (CNX) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
