Enbridge (ENB) to Develop Carbon Storage Project in Alberta

Enbridge Inc. ENB collaborated with the First Nation Capital Investment Partnership (“FNCIP”) to proceed with the proposed carbon transportation and storage project in Alberta.

The project involves the development of the Open Access Wabamun Carbon Hub near Edmonton. It is a move toward clean energy transition as the entire energy industry forges ahead with plans to reduce emissions.

The FNCIP is a partnership established by four Treaty 6 Nations — Alexander First Nation, Alexis Nakota Sioux Nation, Enoch Cree Nation and Paul First Nation. The partnership was formed to seek ownership stakes in major infrastructure projects. Notably, this is the first project agreed to by the FNCIP.

The Open Access hub is being developed as an innovative combination of carbon transportation and storage solutions. It will enable the project partners to lead developing projects that help create a cleaner, more sustainable environment.

Once developed, the hub will be one of the largest integrated carbon transportation and storage projects globally. It can prevent close to four million tons of atmospheric carbon dioxide emissions. Enbridge and partners submitted the project for approval to the government of Alberta's request for a full project proposal process.

The open-access carbon storage hub will favor the recently announced carbon capture projects from Capital Power Corporation, Lehigh Hanson Materials Limited (or Lehigh Cement) and others. Capital Power and Lehigh Cement have already announced plans to develop carbon capture facilities, which would utilize the new transportation and storage hub. Capital Power and Lehigh Cement intend to bring their facilities online by 2026 and 2025, respectively.

The project creates an opportunity to generate wealth and allows sustainable economic sovereignty for communities. Enbridge aims to develop the hub with customer-focused carbon capture and storage solutions, while minimizing any infrastructure footprint to protect the environment.

Company Profile & Price Performance

Headquartered in Calgary, Alberta, Enbridge is a leading energy infrastructure company.

Shares of Enbridge have underperformed the industry in the past six months. The stock has gained 12.9% compared with the industry’s 14.4% growth.

Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

Enbridge currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Marathon Petroleum Corporation MPC is a leading independent refiner, transporter and marketer of petroleum products. As of Dec 31, 2021, MPC had cash and cash equivalents of $5.3 billion and total debt, including that of MPLX, of $25.5 billion.

Marathon Petroleum's earnings for 2022 are expected to soar 128.6% year over year. MPC has witnessed three upward revisions in the past 30 days. Marathon Petroleumrepurchased shares worth $3 billion during the October-January period and completed around 55% of its target to buy back $10 billion in common stock. Further, planning to reward its shareholders, MPC announced a $5-billion buyback program.

Centennial Resource Development, Inc. CDEV is an independent oil and gas exploration and production company. In 2020, CDEV’s net production was recorded at 67,161 barrels of oil equivalent per day, of which oil contributed 53.7%, and natural gas and natural gas liquids accounted for the rest.

Centennial Resource is expected to see an earnings growth of 98.4% in 2022. CDEV currently has a Zacks Style Score of B for Momentum and Growth. At the end of third-quarter 2021, cash and cash equivalents increased to $5 million from the second-quarter level of $4.7 million. Long-term net debt outstanding amounted to $1,004.9 million, down from $1,054.3 million at the second quarter-end.

Phillips 66 PSX is the leading player in each of its operations like refining, chemicals and midstream in terms of size, efficiency and strength. PSX is on track to enhance its potential in every business segment by streamlining its portfolio of assets and by investing in growth developments.

Phillips 66 is expected to see an earnings growth of 38.8% in 2022. PSX currently has a Zacks Style Score of A for Value and Growth, and B for Momentum. In fourth-quarter 2021, Phillips 66 generated $1,800 million of net cash from operations, up from $639 million a year ago.

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