New pipelines add to Enbridge’s appeal

Article Excerpt

ENBRIDGE INC. $31 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 774.3 million; Market cap: $24.0 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.enbridge.com) gets 80% of its revenue by operating pipelines that pump crude oil and natural gas from western Canada to eastern Canada and the U.S. The remaining 20% mainly comes from distributing natural gas to 2 million consumers in Ontario, Quebec and parts of New York State. The company is also developing a gas distribution system in New Brunswick. Big investments should pay off In the past three years, Enbridge has spent over $12 billion on new growth projects, including new pipelines to serve expanding oil-sands projects in Alberta. The company is also building pipelines to take advantage of big new shale gas discoveries in Texas and Louisiana. The company started up $6.5 billion worth of new projects in 2010, including its new Alberta Clipper pipeline, which pumps crude oil from Alberta to the U.S….