By Stephen Nakrosis

Pembina Pipeline on Wednesday said it agreed to acquire Enbridge's interests in three joint ventures operated by the companies.

Pembina said the deal would see it acquire all Enbridge's interests in the Alliance, Aux Sable and NRGreen joint ventures for an aggregate purchase price of about C$3.1 billion ($2.3 billion), which includes approximately C$327 million of assumed debt. Pembina said it will finance the cash portion of the deal with net proceeds of a C$1.1 billion bought deal offering of subscription receipts, as well as funds drawn from existing credit facilities and cash on hand.

Once the deal closes, Pembina said, it will hold 100% of the equity interests in Alliance, Aux Sable's Canadian operations and NRGreen and about 85.4% of Aux Sable's U.S. operations. Pembina will also become the operator of all Alliance, Aux Sable and NRGreen businesses.

Enbridge said proceeds from the sale will be used to fund "strategic U.S. gas utilities acquisitions," and for debt reduction.

The Alliance JV transports natural gas sourced in Canada and the U.S. to Chicago, while Aux Sable operates NGL extraction and fractionation facilities in both countries, Enbridge said. NRGreen operates waste heat recovery facilities along the Alliance Pipeline, according to Enbridge.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

December 13, 2023 17:48 ET (22:48 GMT)

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