NEW YORK (TheStreet) -- Shares of Enbridge Energy Partners (EEP) are slumping by 1.45% to $24.53 on Wednesday afternoon, after the Canadian company reached a $177 million settlement with the EPA over a 2010 oil spill, Reuters reports.
Enbridge will now pay about $62 million in fines and nearly $120 billion to improve pipe construction and prevent future spills.
"Our substantial investment has increased our cnofidence that our system is safe and reliable and enables us to provide greater comfort to our stakeholders that we're doing everything we can to protect them," said Enbridge President and Ceo Al Monaco in a statement.
The 2010 spill involved a Line6B pipeline that leaked crude oil into the Kalamazoo River in Michigan, the company said in a statement. Enbridge also had a separate leak in Romeoville, Illinois in September of 2010.
The leak in Michigan is considered to be one of the worst onshore oil spills in U.S. history, Reuters reports.
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 has this to say about the recommendation:
We rate ENBRIDGE ENERGY PRTNRS -LP as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: EEP