What happened

Shares of Enbridge Inc (NYSE:ENB) surged 16.1% last month according to data provided by S&P Global Market Intelligence after regulators in the state of Minnesota finally approved its Line 3 Replacement Project.  

So what

On June 28, the Minnesota Public Utilities Commission voted 5-0 to grant Enbridge a Certificate of Need, which will allow it to proceed with its Line 3 Replacement Project in the state. Further, the Commission voted 3-2 to approve the project along the company's preferred route with a few minor modifications and conditions.

A stack of pipes.

Image source: Getty Images.

These approvals marked two big wins for Enbridge. Not only will the pipeline giant be able to finish a project that it had already started in Canada and Wisconsin, but it doesn't need to take a costlier alternative route, which could have boosted the price tag by 16% according to one analyst. As a result, the company now expects to finish construction on time and on budget. That dramatically increases the likelihood that Enbridge can achieve its dividend growth goal to boost the payout by 10% per year through 2020.

Now what

The project approval is the latest in a string of positive news for Enbridge this year. These factors have significantly improved the company's financial situation while enhancing the visibility of its growth prospects. While those positives have driven the stock up in the last month, shares of Enbridge still trade at a below average valuation within its peer group, making it one of the top stocks in the oil patch to buy these days in my opinion.

Matthew DiLallo owns shares of Enbridge. The Motley Fool owns shares of Enbridge. The Motley Fool has a disclosure policy.