Enbridge Inc., Canada's largest pipeline operator, beat analysts' estimates for quarterly profit on May 10, as it benefited from transporting more oil and gas across its pipelines.
The company said it transported 2.7 million barrels per day (bbl/d) of crude oil on its key Mainline system across Canada and the U.S. during the first quarter, up from 2.6 million bbl/d in the year-ago quarter.
Enbridge has been working on replacement works on its Line 3 pipeline project that would run from Alberta to Wisconsin and connect to pipelines carrying crude to refineries in the United States.
Construction costs for the project were tracking below budget in Canada and above budget in the U.S. due to permitting delays in Minnesota, the company said.
Adjusted earnings rose to C$1.64 billion (US$1.22 billion) in the first quarter ended March 31, from C$1.38 billion in the year-ago quarter.
On an adjusted per share basis, the company earned 81 Canadian cents, while analysts' on average had expected 72 Canadian cents, according to IBES data from Refinitiv.
Enbridge has an extensive network of crude oil, liquids and natural gas pipelines plus regulated natural gas distribution utilities and renewable power generation throughout North America. The company's Mainline and Express Pipeline accounts for roughly 62% of U.S.-bound Canadian crude oil exports and moves about 20% of all natural gas consumed in the U.S. (US$1 = C$1.3463)
Construction would start this year, with the plant beginning operations in 2023.
Negotiations with three companies includes joint operation of a crude pipeline from Houston to Corpus Christi.
Oil and gas producer Apache said on April 23 it would delay natural gas production from its Alpine High assets in the Permian Basin due to "extremely" low prices.