Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Toronto Stock Exchange  >  Enbridge Inc.    ENB   CA29250N1050

ENBRIDGE INC.

(ENB)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Enbridge hits debt target with $2.5 billion pipeline, renewables sale

05/09/2018 | 06:12pm EST
FILE PHOTO: Pipelines run to Enbridge Inc.'s crude oil storage tanks at their tank farm in Cushing

(Reuters) - Enbridge Inc will sell a U.S. gas pipelines business and part of its renewable energy portfolio for a combined $2.5 billion (1.84 billion pounds), the Canadian pipeline operator said on Wednesday, achieving the first step in its debt reduction plan.

The Calgary-based company is continuing to shop its Canadian midstream assets and has received initial bids valuing the portfolio as high as C$4.5 billion ($3.5 billion), people familiar with the situation told Reuters.

Enbridge Chief Executive Officer Al Monaco told reporters on Wednesday that the company has not received any formal bids for the Canadian midstream assets and declined to comment on indications of interest.

Enbridge has been under pressure to sell non-core assets since its $28 billion takeover of U.S.-based Spectra Energy last year. Its long-term debt pile of $60.87 billion as of Dec. 31 has also caused alarm at credit rating agencies. [http://bit.ly/2EwyF5O]

The company said in November it expected to raise upwards of C$3 billion from divestments in 2018, the first sales from a pool of non-core assets worth C$10 billion.

The deals announced on Wednesday brought Enbridge close to that goal. The company said it had sealed a C$1.75 billion deal with the Canada Pension Plan Investment Board (CPPIB) for a 49 percent stake in wind and solar power assets in North America and Germany.

The company will also sell Midcoast Operating LP, its U.S. gas pipelines unit, to an affiliate of private equity firm ArcLight Capital Partners LLC for $1.12 billion. Midcoast operates facilities to process and treat natural gas and natural gas liquids.

"This transaction, in addition to our other funding actions taken, accelerates funding for our secured capital program and gives us increased financial flexibility," Monaco said in a statement announcing the CPPIB deal.

Enbridge said it may yet monetize or sell the remaining renewable stake. Banking sources suggested that Enbridge had offered all its renewables assets for sale to begin with, asking potential buyers to propose the best deal.

The company separately said Wednesday that it had filed a formal response to a Minnesota judge's recommendation that its Line 3 pipeline replacement go ahead but follow the existing right-of-way through the state instead of Enbridge's preferred route.

Enbridge said that if it were to follow the recommended route, the existing pipeline would need to be shut down for nine to 12 months, "negatively impacting Minnesota's energy supply."

The C$8.2 billion Line 3 replacement would double capacity on the pipeline, which extends from Alberta to Wisconsin, providing much needed relief to Canada's oil producers who are struggling with a lack of transportation capacity to get their crude to market.

CPPIB RENEWABLE PUSH

In an interview with Reuters, Bruce Hogg, head of power and renewables at CPPIB, said its longstanding history with Enbridge and the fund's desire to grow its renewables exposure led to the agreement.

"We were having conversations about a broader arrangement and the ability to grow value over time, which was a much more sellable package (to Enbridge) than they initially envisaged," he said.

The pension fund will also provide C$500 million of capital to help finance outstanding construction related to the German offshore wind scheme, and it signed a 50-50 joint venture with Enbridge to invest in future European offshore wind projects.

CPPIB also purchased U.S. utility NextEra Energy Partners' wind and solar assets in Ontario last month for about $582 million.

CIBC Capital Markets and law firm Dentons advised Enbridge on the renewables deal, the statement said. RBC Capital Markets and Citigroup advised CPPIB, sources familiar with the matter said. Citi, along with Norton Rose Fulbright LLP, worked with Enbridge on the U.S. midstream sale.

Enbridge's Toronto shares closed up 2.65 percent at C$41.48.

(Reporting by Anirban Paul in Bengaluru, David French in New York and John Tilak in Toronto, Additional reporting by Rod Nickel in Calgary and Julie Gordon in Vancouver; Editing by David Gregorio, Sai Sachin Ravikumar and Cynthia Osterman)

By Anirban Paul, David French and John Tilak


© Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
BEST INC. 1.99% 2.05 Delayed Quote.0.49%
DEERE & COMPANY -0.14% 294.99 Delayed Quote.9.79%
ENBRIDGE INC. 1.52% 44.75 Delayed Quote.9.92%
FIRST SOLAR, INC. 3.79% 100.24 Delayed Quote.1.33%
NEXTERA ENERGY PARTNERS, LP 0.72% 82.93 Delayed Quote.23.68%
STEP CO.,LTD. -0.27% 1502 End-of-day quote.-5.95%
THE BANK OF NOVA SCOTIA 0.51% 70.76 Delayed Quote.2.33%
All news about ENBRIDGE INC.
01/19ENBRIDGE : Correction to Great Lake Pipeline Article
DJ
01/19ENBRIDGE : CEO Al Monaco to Present at CIBC Western Conference
AQ
01/19ENBRIDGE INC. : to Host Webcast to Discuss 2020 Fourth Quarter and Full-Year Res..
AQ
01/19Great Lakes Pipeline Adds Heat to U.S.-Canada Energy Tensions
DJ
01/18Canada scrambles to salvage Keystone XL as Biden prepares to kill troubled pi..
RE
01/12ENBRIDGE : rejects Michigan's order to shut down Line 5 pipeline through Great L..
AQ
01/12Enbridge Slams Michigan Governor's Attempt to Revoke Line 5 Easement
MT
01/12ENBRIDGE : rejects Michigan's demand to shut down oil pipeline
AQ
01/12ENBRIDGE BRIEF : Says Michigan Governor's Attempt to Revoke Line 5 Easement is "..
MT
01/12ENBRIDGE : Michigan Governor's Attempt to Revoke Line 5 Easement is Unlawful and..
AQ
More news
Financials
Sales 2020 39 296 M 30 934 M 30 934 M
Net income 2020 2 525 M 1 988 M 1 988 M
Net Debt 2020 72 051 M 56 718 M 56 718 M
P/E ratio 2020 37,1x
Yield 2020 7,24%
Capitalization 90 629 M 71 148 M 71 343 M
EV / Sales 2020 4,14x
EV / Sales 2021 4,24x
Nbr of Employees 13 000
Free-Float 86,4%
Chart ENBRIDGE INC.
Duration : Period :
Enbridge Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ENBRIDGE INC.
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 26
Average target price 51,37 CAD
Last Close Price 44,75 CAD
Spread / Highest target 29,6%
Spread / Average Target 14,8%
Spread / Lowest Target -21,8%
EPS Revisions
Managers and Directors
NameTitle
Albert Monaco President, CEO & Non-Independent Director
Gregory Lorne Ebel Non-Executive Chairman
Colin K. Gruending Chief Financial Officer & Executive Vice President
Bhushan Ivaturi Chief Information Officer & Senior Vice President
Vera Maureen Kempston-Darkes Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
ENBRIDGE INC.9.92%71 148
ENTERPRISE PRODUCTS PARTNERS L.P.18.89%50 839
TC ENERGY CORPORATION9.31%40 150
KINDER MORGAN, INC.13.75%35 202
WILLIAMS COMPANIES11.97%27 245
MPLX LP11.87%25 158