logo-loader
viewEnbridge Inc

Energy major Enbridge shares higher as it unveils latest C$4.3bn asset sale

The energy and infrastructure giant has now sold C$7.5bn worth of assets this year alone

1530728414_gas-pipeline.jpg
The sale includes 3,550km of pipelines

Energy major Enbridge Inc (TSX: ENB, NYSE: ENB) saw shares nudge higher Wednesday as its asset sale spree continued and it disposed its Canadian natural gas gathering and processing business to  Brookfield Infrastructure Partners for C$4.31bn.

The business includes 19 natural gas processing plants and liquids handling facilities, with a total operating capacity of 3.3 Bcf/d (billion cubic fet per day) and 3,550 km of pipelines.

The energy and infrastucture giant has now sold C$7.5bn worth of assets this year alone, which is more than double a target of C$3bn, as it aims to streamline operations and promote growth.

"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, the president and chief executive 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 $7.5bn in asset monetizations announced in 2018, we have more than doubled our initial target of $3bn."

Enbridge said it would 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.

The firm delivers an average of 2.8mkn barrels of crude oil each day through its Mainline and Express Pipeline and accounts for around 65% of US bound Canadian crude oil exports.

Shares added 1.57% today in Toronto to C$47.12 each.

Quick facts: Enbridge Inc

Price: 55.31 CAD

TSX:ENB
Market: TSX
Market Cap: $111.99 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Castillo Copper's Ged Hall updates on key assets and progress on London dual...

Ged Hall works with London stockbroker SI Capital and is also a non-exec director at Castillo Copper Ltd's (ASX:CCZ). He discusses how the two came to work together as well as updates on what Castillo's doing as far as the Mt Oxide project in Queensland, Australia. 

1 day, 3 hours ago

2 min read