Analyst Note| Joe Gemino, CPA |
On Sept. 10, Enbridge restarted the east leg of its Line 5 pipeline after receiving approval from a Michigan court a day prior. Line 5’s east leg has been closed since June 25 when a Michigan judge ordered a temporary shutdown of both legs after Enbridge discovered damage to an anchor support a few days earlier. The west leg of the pipeline has been operating since July 1 when the Ingham County Circuit Court of Michigan lifted its temporary restraining order. Despite the temporary shutdown, we still don’t expect a material impact on the company’s financial results given that the Mainline system is running at reduced rates as a result of lower crude oil demand across North America.