CALGARY, AB, June 3, 2024 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) ("Enbridge" or the "Company") announced today the closing of its acquisition of the Questar Gas Company ("Questar Gas") and its related Wexpro companies ("Wexpro" and collectively with Questar Gas, "Questar") from Dominion Energy, Inc. ("Dominion"). The Questar Gas utility will be doing business in Utah as Enbridge Gas Utah, in Wyoming as Enbridge Gas Wyoming, and in Idaho as Enbridge Gas Idaho. Questar will join Enbridge's Gas Distribution and Storage Business Unit.
Questar Gas is a premier multi-state utility that distributes natural gas in Utah, southwestern Wyoming, and southeastern Idaho, serving approximately 1.2 million customers in service territories with fast growing economies and populations. Questar Gas Company has a cost-of-service supply agreement with Wexpro, which helps ensure reliability and affordability for Questar Gas's customers. Questar Gas's asset portfolio includes over 21,000 miles (over 33,500 km) of natural gas distribution and transmission pipelines, a liquefied natural gas storage facility that enhances system reliability, and interconnections to multiple interstate natural gas pipelines.
"We are excited to welcome another strong gas utility to Enbridge. Questar Gas and Wexpro enhance the scale and breadth of our existing low risk utility business model and support our long-term dividend growth profile by providing stable, predictable cash flows," said Michele Harradence, Enbridge Executive Vice President and President, Gas Distribution and Storage. "We welcome Questar Gas and Wexpro employees into the Enbridge family of companies and look forward to building long‑term productive relationships with all of their stakeholders in Utah, Wyoming, and Idaho."
The closing of the purchase of the Public Service Company of North Carolina, Incorporated ("PSNC") is expected to occur following the receipt of required regulatory approvals for that purchase. The acquisition of PSNC is on track to close in 2024. The combined contributions from Questar and the previously closed acquisition of The East Ohio Gas Company (now doing business as Enbridge Gas Ohio) are expected to contribute approximately 80% of the total annualized EBITDA from the three gas utilities Enbridge has agreed to acquire from Dominion.
About Enbridge Inc.
At Enbridge, we safely connect millions of people to the energy they rely on every day, fueling quality of life through our North American natural gas, oil, and renewable power networks and our growing European offshore wind portfolio. We are investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on more than a century of operating conventional energy infrastructure and two decades of experience in renewable power. We are advancing new technologies, including hydrogen, renewable natural gas, and carbon capture and storage, and are committed to achieving net zero greenhouse gas emissions by 2050. Headquartered in Calgary, Alberta, Enbridge's common shares trade under the symbol ENB on the Toronto (TSX) and New York (NYSE) stock exchanges. To learn more, visit us at enbridge.com.
Forward-Looking Statements
Forward-looking statements have been included in this news release to provide readers with information about Enbridge and its subsidiaries and affiliates, including management's assessment of Enbridge's and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely", and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this news release include, but are not limited to, statements with respect to Enbridge's acquisition of three gas utilities, including Questar Gas, from Dominion (the "Acquisitions"), including the characteristics, expected closing dates, value drivers, annualized EBITDA contribution and anticipated benefits thereof, on a standalone and combined post-Acquisitions basis; cash flow profile and outlook; and long term dividend profile.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity, and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: our ability to complete the Acquisitions and successfully integrate the gas utilities without material delay, material change in terms, higher than anticipated costs or difficulty, or loss of key personnel; the expected supply of, demand for, export of, and prices of crude oil, natural gas, natural gas liquids ("NGL"), liquefied natural gas ("LNG"), and renewable energy; energy transition and lower carbon energy and our approach thereto; global economic growth and trade; anticipated utilization of our assets; exchange rates; inflation; interest rates; availability and price of labor and construction materials; the stability of our supply chain; operational reliability and performance; customer, regulatory, and stakeholder support and approvals, including, with respect to the Acquisitions; anticipated construction and in-service dates; weather; announced and potential acquisitions, dispositions, and other corporate transactions and projects, and the timing and terms, and the impact thereof, including the Acquisitions; the realization of anticipated benefits of transactions, including the Acquisitions; governmental legislation; litigation; impact of the Company's dividend policy on its future cash flows; Enbridge's credit ratings; hedging programs; expected EBITDA and expected Adjusted EBITDA; expected earnings/(loss) and adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share; expected future cash flows and expected future distributable cash flow ("DCF") and DCF per share; estimated future dividends; financial strength and flexibility; sources of liquidity and sufficiency of financial resources; debt and equity market conditions; general economic and competitive conditions; ability of management to execute key priorities, including with respect to the Acquisitions; and the effectiveness of various actions resulting from the Company's strategic priorities. Assumptions regarding the expected supply of, and demand for, crude oil, natural gas, NGL, LNG, and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for Enbridge's services. Similarly, exchange rates, inflation, and interest rates impact the economies and business environments in which Enbridge operates and may impact levels of demand for Enbridge's services and cost of inputs and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected EBITDA, expected Adjusted EBITDA, expected earnings/(loss), expected adjusted earnings/(loss), expected DCF and associated per share amounts, and estimated future dividends.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to the realization of anticipated benefits and synergies of projects and transactions, including the Acquisitions, successful execution of our strategic priorities, operating performance, Enbridge's dividend policy, regulatory parameters, litigation, acquisitions and dispositions, and other transactions, including the Acquisitions, and the realization of anticipated benefits therefrom; operational dependence on third parties; project approval and support, renewals of rights-of-way, weather, economic and competitive conditions, global geopolitical conditions, political decisions, public opinion, changes in tax laws and tax rates, exchange rates, interest rates, inflation, commodity prices, and supply of, and demand for, commodities and other alternative energy, including, but not limited to, those risks and uncertainties discussed in this and in the Company's other filings with Canadian and U.S. securities regulators. The impact of any one assumption, risk, uncertainty, or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time.
Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events, or otherwise. All forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on Enbridge's behalf, are expressly qualified in their entirety by these cautionary statements.
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SOURCE Enbridge Inc.
