Enbridge has reached three deals with Dominion Energy to acquire three utility companies for a combined value of $14 billion.
The acquisition will make Enbridge the largest gas utility company in North America, expanding its footprint into several states.
The deal is expected to strengthen Enbridge's dividend growth profile and be accretive to distributable cash flow.
News just broke after hours that Enbridge (NYSE:ENB), one of North America's largest energy infrastructure companies, has reached 3 deals with Dominion Energy (D) to acquire 3 utility companies from them. ENB will acquire East Ohio Gas Co, Questar Gas, and Public Service Company of North Carolina for a combined value of $14 billion. ENB will spend $9.4 billion in cash and assume $4.6 billion of debt from Dominion. ENB has indicated that they expect the deal to close sometime in 2024. In after-hours trading, shares of ENB have declined by -6.21%. I think this is a smart strategic move on ENB's part and I am planning on adding more shares to my position as this deal will make ENB the largest natural gas utility company across North America.
Prior to this announcement, ENB was the only major pipeline and midstream company that owned a regulated gas utility. ENB had operated North America's largest gas utility by volume and the 3rd largest by customer count. Enbridge Gas Inc. has delivered energy for over 175 years, and within its infrastructure resides 52,505 miles of gas transportation and distribution mainlines and 41,631 miles of service lines. ENB provided 75% of Ontario's residents with their gas needs and provided service to 3.9 million customers, including both residential and commercial segments. ENB distributed over 5.9 Bcf/d of natural gas in 2022. On the storage side, ENB has 290.8 billion feet of working capacity.
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