Enbridge Inc. ENB, a leading energy infrastructure firm, is in talks with certain indigenous communities in Canada to sell a stake in some of its pipelines. The company aims to form a financial partnership with the indigenous communities, similar to a previous deal in which Enbridge sold a minority stake in seven of its Alberta oil pipelines to the communities for C$1.12 billion.

ENB has invited the indigenous communities to a meeting on Nov. 20 to discuss the agreement in Edmonton, Alberta, according to a Bloomberg report. The report further mentioned that the details of the asset (to be put in the deal) have not yet been disclosed by the company.  ENB had sold a 12% stake in seven pipelines in Alberta to indigenous communities in 2022. The agreement, better known as “Project Rocket”, involved a partnership with the First Nations and Métis communities.

Enbridge, along with many other Canadian energy firms, is increasingly looking to partner with indigenous communities in the regions where it operates. The primary objective of this is to foster a strong relationship with the communities and ward off environmental and legal challenges associated with the company’s operations.

Per a Bloomberg statement, Enbridge continues to interact with more than 350 indigenous groups across the continent.

ENB’s Zacks Rank and Key Picks

Currently, ENB carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the energy sector are PEDEVCO Corp. PED, Archrock Inc. AROC and FuelCell Energy FCEL. PEDEVCO and Archrock presently sport a Zacks Rank #1 (Strong Buy) each, while FuelCell Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PEDEVCO is engaged in the acquisition and development of energy assets in the United States and Pacific Rim countries. PED stands to benefit significantly from its holdings in the Permian Basin, one of the most prolific oil-producing regions in the United States and the D-J Basin in Colorado, which includes more than 150 high-quality drilling locations. Combined with bullish oil prices, this is expected to boost the company's production and overall profitability.

Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, the company is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.