Enbridge wants more time for Gateway

Article Excerpt

ENBRIDGE INC. $51 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 928.9 million; Market cap: $47.4 billion; Price-to-sales ratio: 1.3; Dividend yield: 4.2%; TSINetwork Rating: Above Average; www. enbridge.com) has asked regulators to extend its permit to build the Northern Gateway pipeline by three years. This $7.9 billion project would pump crude oil from Alberta to the B.C. coast. However, the permit will expire if Enbridge does not begin construction by the end of 2016. The extra time would also help the company address significant political opposition to the project. For example, it will now give Aboriginal groups a 33% stake in the project, up from 10% under the original proposal. Even so, Ottawa’s plan to ban tanker traffic on B.C.’s northern coast hurts the project’s viability. Enbridge is still a hold. hold…