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)
Recommended Reading
US NatGas Flows to Freeport LNG Export Plant Drop Near Zero
2024-04-11 - The startup and shutdown of Freeport has in the past had a major impact on U.S. and European gas prices.
US Natgas Prices Hit 5-week High on Rising Feedgas to Freeport LNG, Output Drop
2024-04-10 - U.S. natural gas futures climbed to a five-week high on April 10 on an increase in feedgas to the Freeport LNG export plant and a drop in output as pipeline maintenance trapped gas in Texas.
Tinker Associates CEO on Why US Won’t Lead on Oil, Gas
2024-02-13 - The U.S. will not lead crude oil and natural gas production as the shale curve flattens, Tinker Energy Associates CEO Scott Tinker told Hart Energy on the sidelines of NAPE in Houston.
What's Affecting Oil Prices This Week? (March 18, 2024)
2024-03-18 - On average, Stratas Advisors predicts that supply will be at a deficit of 840,000 bbl/d during 2024.
What's Affecting Oil Prices This Week? (March 11, 2024)
2024-03-11 - Stratas Advisors expects oil prices to move higher in the middle of the year, but for the upcoming week, there is no impetus for prices to raise.