By Robb M. Stewart

Pembina Pipeline has boosted its 2024 earnings target after closing a deal to buy Enbridge's 50% interest in Alliance Pipeline and its 42.7% interest in Aux Sable.

The energy transportation company said Monday it now expected adjusted earnings before interest, taxes, depreciation and amortization of between 4.05 billion Canadian dollars ($2.99 billion) and C$4.3 billion, up from prior guidance of C$3.725 billion to C$4.025 billion, to reflect the contribution from increased ownership of Alliance and Aux Sable as well as a stronger outlook in its marketing business.

The roughly C$3.1 billion purchase price for stakes was partly funded through a C$1.28 billion bought deal offering of subscription receipts that closed on Dec. 19.

For Enbridge, the sale proceeds will fund a portion of its strategic U.S. gas utilities acquisitions and will also be used for debt reduction.

Write to Robb M. Stewart at

(END) Dow Jones Newswires

04-01-24 0931ET