Enbridge Plans C$3.3 Billion in Investments, Targets Earnings Growth
March 01 2023 - 8:18AM
Dow Jones News
By Robb M. Stewart
Enbridge Inc. plans more than 3 billion Canadian dollars (US$2.2
billion) in fresh investments and acquisitions to strengthen its
energy infrastructure and help drive earnings growth in the coming
years.
Ahead of a meeting with investors, the multinational pipeline
and energy company said it would make C$3.3 billion in investments
that would grow its backlog to C$17 billion across each of its
business areas and 15 projects.
The secured capital program would help drive projected per-share
earnings growth at an average annual rate of 4% to 6% over the 2022
to 2025 planning period, with expected growth of about 5% after
that, the Calgary, Alberta, company said.
The proposed investment includes adding C$2.4 billion of new gas
transmission modernization and utility capital to Enbridge's
secured capital program, the company said.
Greg Ebel, Enbridge's president and chief executive, said the
company's financial position has never been stronger and Enbridge
expects to continue to have about C$6 billion of annual investment
capacity, the majority of which will be targeted toward
utility-like investments within the four core businesses. He said
the company would maintain the flexibility for other activities,
such as "tuck-in" acquisitions and returning additional capital to
shareholders.
Enbridge said it is negotiations with shippers for incremental
contract capacity on the Flanagan South Pipeline system.
The company said it will proceed with the construction of the
Enbridge Houston Oil Terminal for an initial capital cost of C$240
million. The terminal, located adjacent to the terminus of the
Seaway Pipeline, will provide shippers with a storage terminal
primarily focused on heavy crude.
As well, Enbridge said it has entered into a definitive
agreement with Brookfield Infrastructure Partners and Crestwood
Equity Partners LP to buy Tres Palacios Holdings LLC for US$335
million. Tres Palacios is located in the U.S. Gulf Coast region and
its natural gas infrastructure serves Texas gas-fired power
generation and increasing liquefied natural gas exports, as well as
growing need in Mexico.
Enbridge said it also is acquiring a 10% stake in Divert Inc., a
food-waste management company expanding into renewable natural gas
to help food retailers manage waste more sustainably, for US$80
million. The agreement includes further investment opportunities to
develop wasted-food-to-RNG projects across the U.S., it said.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
March 01, 2023 08:03 ET (13:03 GMT)
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