Enbridge (ENB) Stock Up, Q2 Earnings In Line Despite Wildfire
NEW YORK (TheStreet) -- Shares of Enbridge (ENB) - Get Report are climbing 4.12% to $53.51 this afternoon after reporting in-line earnings despite setbacks due to an Alberta wildfire that curbed pipeline shipments.
Adjusted earnings for the period were 38 U.S. cents per common share, meeting analysts' estimates for the Canadian oil company.
This came as a surprise following May wildfires in Alberta, forcing the shutdown of some oil sands operations and curtailing pipeline shipments for Enbridge.
The company said that deliveries were cut by 255,000 barrels per day during May and June, or a 10% throughput loss. Volumes moved higher by the end of June, however, and Enbridge projects they should return to normal in the third quarter.
Enbridge also hopes to add 60,000 to 80,000 barrels a day to its capacity by the end of September.
CEO Al Monaco said the company remains committed to building the Northern Gateway pipeline, which has come under fire from environmental and First Nations groups. The Federal Court of Appeal overturned the government's conditional approval of the pipeline in late June.
"All in, a good set of results with notably continued strong contribution from new oil infrastructure projects," said BMO Capital Markets in an analyst note.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: ENB