Pembina Agrees to Acquire Enbridge's Interests in Joint Ventures
December 13 2023 - 5:03PM
Dow Jones News
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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