Enbridge Announces Sale of Canadian Natural Gas Gathering & Processing Businesses for $4.31 Billion

July 4, 2018

CALGARY, July 4, 2018 /CNW/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) today announced that it has entered into definitive agreements to sell its Canadian natural gas gathering and processing business in the Montney, Peace River Arch, Horn River and Liard basins in British Columbia (B.C.) and Alberta (the "G&P Business") to Brookfield Infrastructure (NYSE: BIP; TSX: BIP.UN) and its institutional partners (collectively, "Brookfield") for a cash purchase price of CAN $4.31 billion, subject to customary closing adjustments and receipt of regulatory approvals. 

The G&P Business includes 19 natural gas processing plants and liquids handling facilities, with a total operating capacity of 3.3 Bcf/d and 3,550 km of natural gas gathering pipelines.

"When combined with asset monetizations announced in May, the sale of our Canadian G&P Business significantly advances our strategic priority of moving to a pure play regulated pipeline and utility business model." said Al Monaco, President and Chief Executive Officer of Enbridge. It also demonstrates our focus on prudent capital allocation and ensuring the continued strength of our balance sheet and funding flexibility. With a total of roughly $7.5 billion in asset monetizations announced in 2018, we have more than doubled our initial target of $3 billion."

Separate sale agreements have been entered into for those facilities currently governed by provincial regulations (Alberta and B.C.), and those governed by federal National Energy Board regulations.   The transaction involving the sale of the provincially regulated facilities is expected to close in 2018, while the transaction involving the sale of the federally regulated facilities is anticipated to close in mid-2019.

Proceeds from these transactions provide significant additional financing flexibility going forward as the Company continues to execute on its current portfolio of secured growth projects.  The Company's outlook for DCF/share through 2020 and its target credit metrics remain unchanged as a result of these asset sales.

Enbridge will continue to hold its highly strategic long haul regulated natural gas transmission assets which include the Westcoast transmission system in British Columbia and the Alliance pipeline that carries natural gas from western Canada to the Chicago market.

Brookfield intends to maintain the Canadian G&P workforce and anticipates that they will remain with the G&P business upon transaction close.   

"I'd like to thank our colleagues at the G&P Business, who have done an exceptional job building and expanding a substantial gathering and processing franchise while operating the business safely and reliably day-in and day-out." added Mr. Monaco.  Enbridge will work with Brookfield to ensure a safe and orderly transition of the G&P business' operations.

RBC Capital Markets acted as financial advisor and Torys LLP acted as legal advisors to Enbridge on the transaction.

Forward-Looking Statements
Certain information provided in this news release constitutes forward-looking statements and information ("FLI"). The words "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe", "likely" and similar words and expressions are intended to identify such FLI. All statement other than statements of historical fact may be FLI. FLI included or incorporated by reference in this news release include, but are not limited to, information with respect to the following: the proposed transaction; the timing of closing of the transaction in respect of each of the provincially and federally regulated facilities; the consideration and the expected net proceeds from the transaction; use of proceeds from the transaction; Enbridge's financial strength and flexibility; intentions regarding the holding of Enbridge's regulated natural gas pipeline investments; intentions regarding the Canadian G&P workforce; and the transition of the Canadian G&P operations. Although Enbridge believes that the FLI is based on information which is current, reasonable and complete, by its nature FLI is necessarily subject to a variety of assumptions, risks and uncertainties pertaining but not limited to the timing and completion of the transactions, including receipt of regulatory approvals and satisfaction of other conditions precedent; the focus of management time and attention on the transaction and other disruptions arising from the transaction; estimated future cash flow, financial strength and flexibility; and economic and competitive conditions.  A further discussion of the risks and uncertainties facing Enbridge can be found in its filings with Canadian and United States securities regulators. While Enbridge provides the FLI in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge assumes no obligation to publicly update or revise any FLI provided herein or otherwise, whether as a result of new information, future events or otherwise.  All FLI in this news release is expressly qualified in its entirety by these cautionary statements.

About Enbridge Inc. 
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline; accounts for approximately 65% of U.S.-bound Canadian crude oil exports; and moves approximately 20% of all natural gas consumed in the U.S., serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.7 million retail customers in Ontario, Quebec, and New Brunswick. Enbridge also has interests in more than 2,500 MW of net renewable generating capacity in North America and Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past nine years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB.

Life takes energy and Enbridge exists to fuel people's quality of life. For more information, visit www.enbridge.com.  


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SOURCE Enbridge Inc.