Enbridge Inc T.ENB

Alternate Symbol(s): T.ENB.PF.U | T.ENB.PR.P | ENBOF | T.ENB.PF.V | T.ENB.PR.T | T.ENB.PR.A | EBBGF | T.ENB.PR.V | EBGEF | ENBRF | T.ENB.PR.B | EBBNF | T.ENB.PR.Y | ENB | T.ENB.PR.D | T.ENB.PR.Z | T.ENB.PR.F | ENBFF | T.ENB.PF.A | T.ENB.PR.G | ENBGF | T.ENB.PF.C | T.ENB.PR.H | ENBHF | ENNPF | T.ENB.PF.E | T.ENB.PR.I | EBRGF | T.ENB.PF.G | T.ENB.PR.J | ENBMF | T.ENB.PF.K | T.ENB.PR.N | ENBNF | EBRZF

Energy Oil & Gas Midstream

Enbridge Inc. is an energy transportation and distribution company. The Company operates through five business segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. Liquids Pipelines consists of pipelines and terminals in Canada and the United States that transport and export various grades of crude oil and other liquid hydrocarbons. Gas Transmission and Midstream consists of its investments in natural gas pipelines and gathering and processing facilities in Canada and the United States. Gas Distribution and Storage consists of its natural gas utility operations. Renewable Power Generation consists of investments in wind and solar assets, geothermal, waste heat recovery, and transmission assets. Energy Services provides physical commodity marketing, logistics services, and energy marketing services. The Company owns Aitken Creek Gas Storage facility and Aitken Creek North Gas Storage facility.

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Enbridge Inc > How are they paying for this?

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Comment by ckwongon Sep 08, 2021 8:21am

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RE:How are they paying for this?

Good question. According to the following presentation going along with the press release, it is cash transaction:

https://www.enbridge.com/~/media/Enb/Documents/Investor%20Relations/2021/Project_Nimitz_IR_Deck_Final.pdf Page 5.

Agreed to acquire ModaMidstream Operating,LLC (“Moda”) in an all-cash transaction that values the enterprise at USD $3.0 billion on a debt-free basis

This means ENB either uses existing credit facility or reserve. In their 2020 annual report, they indicate that they have $3B liquidity available.

I would like to say the board is very conservative. If they use share to purchase new asset, it could lead to dilution down the road. But let see if they are going to issue any new share down the road.

With all the asset sales going on, they should have a sizeable war chest. I suggest you may want to read the presentation which does not only talk about liquid (which could be capped one day) but also the NG and other green projects.