CALGARY, July 4, 2018 /PRNewswire/ - Enbridge Inc.
(TSX: ENB) (NYSE: ENB) (Enbridge or the Company) today announced
that it has entered into definitive agreements to sell its Canadian
natural gas gathering and processing business in the Montney, Peace River Arch, Horn River and
Liard basins in British Columbia
(B.C.) and Alberta (the "G&P
Business") to Brookfield Infrastructure (NYSE: BIP; TSX:
BIP.UN) and its institutional partners (collectively, "Brookfield")
for a cash purchase price of CAN $4.31
billion, subject to customary closing adjustments and
receipt of regulatory approvals.
The G&P Business includes 19 natural gas processing plants
and liquids handling facilities, with a total operating capacity of
3.3 Bcf/d and 3,550 km of natural gas gathering pipelines.
"When combined with asset monetizations announced in May, the
sale of our Canadian G&P Business significantly advances our
strategic priority of moving to a pure play regulated pipeline and
utility business model." said Al
Monaco, President and Chief Executive Officer of Enbridge.
It also demonstrates our focus on prudent capital allocation and
ensuring the continued strength of our balance sheet and funding
flexibility. With a total of roughly $7.5
billion in asset monetizations announced in 2018, we have
more than doubled our initial target of $3
billion."
Separate sale agreements have been entered into for those
facilities currently governed by provincial regulations
(Alberta and B.C.), and those
governed by federal National Energy Board regulations.
The transaction involving the sale of the provincially regulated
facilities is expected to close in 2018, while the transaction
involving the sale of the federally regulated facilities is
anticipated to close in mid-2019.
Proceeds from these transactions provide significant additional
financing flexibility going forward as the Company continues to
execute on its current portfolio of secured growth projects.
The Company's outlook for DCF/share through 2020 and its target
credit metrics remain unchanged as a result of these asset
sales.
Enbridge will continue to hold its highly strategic long haul
regulated natural gas transmission assets which include the
Westcoast transmission system in British
Columbia and the Alliance pipeline that carries natural gas
from western Canada to the
Chicago market.
Brookfield intends to maintain
the Canadian G&P workforce and anticipates that they will
remain with the G&P business upon transaction
close.
"I'd like to thank our colleagues at the G&P Business, who
have done an exceptional job building and expanding a substantial
gathering and processing franchise while operating the business
safely and reliably day-in and day-out." added Mr. Monaco.
Enbridge will work with Brookfield to ensure a safe and orderly
transition of the G&P business' operations.
RBC Capital Markets acted as financial advisor and Torys LLP
acted as legal advisors to Enbridge on the transaction.
Forward-Looking Statements
Certain information
provided in this news release constitutes forward-looking
statements and information ("FLI"). The words "anticipate",
"expect", "project", "estimate", "forecast", "plan", "intend",
"target", "believe", "likely" and similar words and expressions are
intended to identify such FLI. All statement other than statements
of historical fact may be FLI. FLI included or incorporated
by reference in this news release include, but are not limited to,
information with respect to the following: the proposed
transaction; the timing of closing of the transaction in respect of
each of the provincially and federally regulated facilities; the
consideration and the expected net proceeds from the transaction;
use of proceeds from the transaction; Enbridge's financial strength
and flexibility; intentions regarding the holding of Enbridge's
regulated natural gas pipeline investments; intentions regarding
the Canadian G&P workforce; and the transition of the Canadian
G&P operations. Although Enbridge believes that the FLI
is based on information which is current, reasonable and complete,
by its nature FLI is necessarily subject to a variety of
assumptions, risks and uncertainties pertaining but not limited to
the timing and completion of the transactions, including receipt of
regulatory approvals and satisfaction of other conditions
precedent; the focus of management time and attention on the
transaction and other disruptions arising from the transaction;
estimated future cash flow, financial strength and flexibility; and
economic and competitive conditions. A further discussion of
the risks and uncertainties facing Enbridge can be found in its
filings with Canadian and United
States securities regulators. While Enbridge provides the
FLI in good faith, should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary significantly from those
expected. Except as may be required by applicable securities laws,
Enbridge assumes no obligation to publicly update or revise any FLI
provided herein or otherwise, whether as a result of new
information, future events or otherwise. All FLI in this news
release is expressly qualified in its entirety by these cautionary
statements.
About Enbridge Inc.
Enbridge Inc. is
North America's premier energy
infrastructure company with strategic business platforms that
include an extensive network of crude oil, liquids and natural gas
pipelines, regulated natural gas distribution utilities and
renewable power generation. The Company safely delivers an average
of 2.8 million barrels of crude oil each day through its Mainline
and Express Pipeline; accounts for approximately 65% of U.S.-bound
Canadian crude oil exports; and moves approximately 20% of all
natural gas consumed in the U.S., serving key supply basins and
demand markets. The Company's regulated utilities serve
approximately 3.7 million retail customers in Ontario, Quebec, and New
Brunswick. Enbridge also has interests in more than 2,500 MW
of net renewable generating capacity in North America and Europe. The Company has ranked on the Global
100 Most Sustainable Corporations index for the past nine years;
its common shares trade on the Toronto and New
York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's
quality of life. For more information, visit
www.enbridge.com.
FOR MORE INFORMATION PLEASE CONTACT:
Media
Jesse Semko
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan
Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
View original
content:http://www.prnewswire.com/news-releases/enbridge-announces-sale-of-canadian-natural-gas-gathering--processing-businesses-for-4-31-billion-300676284.html
SOURCE Enbridge Inc.