Current ENB Stock Info

Enbridge Inc. (ticker: ENB) said its indirect subsidiary, Enbridge (U.S.) Inc., has entered into an agreement to sell Midcoast Operating, L.P. and its subsidiaries to AL Midcoast Holdings, LLC (an affiliate of ArcLight Capital Partners, LLC) for a cash purchase price of US$1.120 billion.

Enbridge Sells U.S. Midstream for $1.1 Billion

Courtesy of Enbridge

“The sale of Midcoast is an important step in our shift towards a pure regulated pipeline and utility model, and positions us well to achieve our goal of selling CAD$3 billion in non-core assets in 2018,” said Enbridge President and CEO Al Monaco. “This transaction includes our 100-percent-owned gathering and processing assets in Texas and Oklahoma.”

Monaco also said that proceeds from the sale would be used to strengthen the company’s balance sheet and increase financial flexibility. The transaction is expected to close in the third quarter of 2018.

What the sale includes

The Midcoast businesses to be sold include:

  1. Natural gas gathering, treating, processing and transportation and NGL transportation – assets located in the East Texas, Western Anadarko and Barnett shale plays, consisting of ~11,200 miles of pipelines, 2,075 MMcf/d of natural gas processing capacity and 1,330 MMcf/d of treating capacity,
  2. An NGL logistics and marketing business (including ELTM, L.P. and Enbridge Marketing (U.S.) L.P.) and
  3. 35% interest in the Texas Express Pipeline, which is a 594-mile, 20-inch NGL pipeline, and a 35% interest in Texas Express Gathering, which is made up by 115 miles of NGL pipelines and other NGL infrastructure, comprising the company’s Texas Express NGL pipeline system

Buyer will retain Midcoast Operating workforce

AL Midcoast said it intends to maintain Midcoast Operating’s workforce and it anticipates that the workforce will join AL Midcoast upon the transaction’s close. AL Midcoast also intends to retain a Houston presence.

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