Enbridge Inc. ENB and Enbridge Energy Partners, L.P. EEP announced the closure of the sale of Enbridge Energy Partners’ interest in the Midcoast Gas Gathering and Processing business to Enbridge Energy Company, Inc. (EECI), a subsidiary of Enbridge.
Earlier, the Midcoast Sale was declared as part of the termination and an outcome of the Enbridge Energy Partners’ strategic review. Subsequent to the closure of the sale, 100% of the Midcoast Gas Gathering and Processing business is currently owned by Enbridge through EECI.
The partnership plans to lower cost system expansions, expand Bakken Pipeline and interconnection and invest in ongoing system related to downstream market expansion opportunities as well as merchant contract terminating beyond 2019.
Enbridge Energy Partners is repositioning itself as a premier, low risk, pure play liquids and a master limited partnership (MLP). It has exceptional North American liquids infrastructure, improved business risk profile, attractive commercial agreements and low risk business model. The partnership’s financial position remains strong and has a healthy distribution coverage and investment grade balance sheet. Moderate visible growth secured through embedded organic growth will aid it position advantageously in case of recovery in oil and gas prices.
Enbridge Energy Partners, a MLP, is engaged in the gathering, processing and transmission of natural gas and crude oil. The partnership through its interests in Midcoast Energy Partners, L.P., natural gas transportation systems in the U.S., owns and operates a diversified portfolio of crude oil. Midcoast Partners’ natural gas gathering, treating, processing and transmission assets are located onshore in the active U.S. Mid-Continent and Gulf Coast areas.
