Update On CBR Vs Pipeline In The Bakken; Enbridge Reports Disappointing Numbers

Platts is reporting:

Volumes on Enbridge Energy Partners' North Dakota crude pipeline system are on the rise in connection with less competitive netbacks for sending Bakken Shale crude by rail, the company said Tuesday.

We "expect improvement on our North Dakota system as a result of significant narrowing of pricing differentials between the market centers and the North Dakota supply basin," President Mark Maki said on a call to discuss the company's second-quarter earnings.

Crude-by-rail movements have increased in recent years in North America because of a lag in pipeline capacity to ship booming low-cost shale oil production, notably from the Bakken, to destination markets.

Zacks reports disappointing numbers:

Enbridge (EEP) reported second-quarter 2013 adjusted earnings of 13 cents per unit, falling behind the Zacks Consensus Estimate of 22 cents. The quarterly figure was also lower than the year-earlier profit of 23 cents.

Total revenue in the quarter was up almost 7.8% year over year at $1,672.7 million from the year-ago level of $1,551.1 million. The reported figure was however below the Zacks Consensus Estimate of $1,750.0 million.

Also at Zacks:

Enbridge Energy remains optimistic about its long-term growth. It expects various organic projects to be commissioned in 2013 and 2014. These projects are characterized by their longer term and lower risk. The partnership’s business model will assist the initiative of its parent company – Enbridge Inc. – in increasing capacity in the Lakehead System and the Eastern Access Projects with its commissioning scheduled for 2014. The partnership is undertaking various growth initiatives in the Liquids segment as witnessed by pipeline expansion for expediting movement of resources from the Bakken region.

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