Michigan Court Rejects Enbridge's Bid to Delay Line 5 Litigation

Enbridge Inc. ENB has suffered another legal setback in its ongoing fight to keep Line 5 operating, after a Michigan judge refused to pause the state’s case seeking to shut down the controversial pipeline, per a report from The Detroit News.Judge Rejects ENB’s Request for DelayIngham County Circuit Judge James Jamo denied Enbridge’s motion to stay the proceedings, ruling that it was in the public interest to keep the case moving. He underscored that the lawsuit, filed in 2019 by Michigan Attorney General Dana Nessel, has already been pending for six years.Jamo stated that continuing with the case at this time would be more efficientand would avoid further delays, even though the U.S. Supreme Court is set to hear arguments this fall over whether the case belongs in the federal or state court.ENB’s Line 5 BackgroundLine 5 carries about 540,000 barrels per day of crude oil and natural gas liquids through Michigan, including two underwater pipelines running beneath the Straits of Mackinac. Environmental groups and state officials have long argued that the line poses an unacceptable spill risk to the Great Lakes.Nessel’s lawsuit claims Line 5 is a public nuisance and should be shut down. Enbridge has resisted, saying federal regulators — not Michigan — have ultimate jurisdiction. The company has also argued that the line is critical for energy security in the U.S. Midwest and Canada.Enbridge sought to pause the state case after the Supreme Court agreed to review whether the company properly attempted to move the case to the federal court. The company argued that delaying litigation in Ingham County until that decision was made would be customary.After the ruling, Enbridge reiterated its commitment to building a tunnel beneath the Straits of Mackinac to house a replacement pipeline segment. The company representatives, however, warned that pursuing shutdown litigation could carry serious implications for energy supply and international relations.Next Steps for ENB and MichiganJudge Jamo’s order means the state-level case against Line 5 will press ahead, even as the Supreme Court prepares to weigh in on the jurisdictional fight. Meanwhile, Enbridge continues its separate lawsuit against Gov. Gretchen Whitmer in federal court in western Michigan, which also focuses on the state’s authority to revoke Line 5’s easement.With disputes playing out on multiple legal fronts, the fight over Line 5’s future remains one of the region’s highest-stakes battles, combining questions of energy supply, environmental safety, and state vs. federal power.ENB’s Zacks Rank and Other Key PicksENB currently carries a Zacks Rank #2 (Buy).Investors interested in the energy sector may look at a couple of other top-ranked stocks like Antero Midstream Corporation AM, Eni S.p.A. E and Precision Drilling Corporation PDS. While Antero Midstream and Eni carry a Zacks Rank #2 at present, Precision Drilling sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.AM’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%.Eni’s strategic growth in upstream production, focused portfolio optimization, and expansion into renewables highlight its resilience amid changing macroeconomic conditions. Successful ramp-up of exploration projects reinforces its long-term potential and enhances its position in the global energy market.E’s earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 3.83%.Precision Drilling is an oilfield services company. The company provides contract drilling, well servicing and strategic support services to the oil and gas industry in North America and internationally. It provides land drilling, directional drilling, turnkey drilling, camp and catering services, and procures and distributes oilfield supplies.PDS’ earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 977.7%. The Zacks Consensus Estimate for 2025 earnings indicates a 14.2% year-over-year decline.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eni SpA (E): Free Stock Analysis Report Antero Midstream Corporation (AM): Free Stock Analysis Report Enbridge Inc (ENB): Free Stock Analysis Report Precision Drilling Corporation (PDS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks