Canadian Manufacturing

Enbridge acquires three U.S. based utilities to create natural gas utility franchise

by CM staff   

Manufacturing Procurement natural gas utility franchise

The gas utilities fit Enbridge's long held investor proposition of low-risk businesses with predictable cash flow growth and overall returns.

CALGARY — Enbridge Inc., has entered into three separate definitive agreements with Dominion Energy, Inc. to acquire EOG, Questar and PSNC for an aggregate purchase price of US$14.0 billion (CDN$19 billion), comprised of $US9.4 billion of cash consideration and US$4.6 billion of assumed debt, subject to customary closing adjustments.

Upon the closings of the three transactions, Enbridge will add gas utility operations in Ohio, North Carolina, Utah, Idahoand Wyoming, representing a significant presence in the U.S. utility sector.

The gas utilities fit Enbridge’s long held investor proposition of low-risk businesses with predictable cash flow growth and overall returns. Following the closings, the acquisitions will double the scale of the company’s gas utility business to approximately 22 per cent of Enbridge’s total adjusted EBITDA and balance the company’s asset mix evenly between natural gas and renewables, and liquids.

Following the closings of the acquisitions, Enbridge’s gas utility business will be the largest, by volume, in North America with a combined rate base of over CDN$27 billion and about 7,000 employees delivering over 9 Bcf/d of gas to approximately 7 million customers.


“Adding natural gas utilities of this scale and quality, at a historically attractive multiple, is a once in a generation opportunity. The transaction is expected to be accretive to DCFPS and adjusted EPS in the first full year of ownership, increasing over time due to the strong growth profile,” said Greg Ebel, Enbridge President and CEO. “Following the closings of the Acquisitions, our Gas Distribution and Storage (“GDS”) business will be North America’s largest gas utility franchise. These Acquisitions further diversify our business, enhance the stable cash flow profile of our assets, and strengthen our long-term dividend growth profile. The transaction also reinforces our position as the first-choice energy delivery company in North America.


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