Even as Ottawa takes steps to curb Alberta’s natural gas industry, Calgary-based Enbridge is doubling down on gas distribution south of the border in a multi-billion blockbuster deal..Canada’s largest oil pipeline operator on Tuesday snapped up three US-based utility companies operating in five states, Ohio, North Carolina, Utah, Wyoming and Idaho for a combined US$14 billion in cash and assumed debt..When it closes in 2024, Enbridge, which already owns the largest and oldest gas utility in Ontario, becomes the largest in North America, effectively doubling its distribution business..At close, it will transport 9.3 billion cubic feet of gas per day — about 10% of all the gas produced in North America — to more than seven million customers in Canada and the US..In a statement, Enbridge CEO Greg Ebel said the deal is the largest of its kind in more than a decade and balances out the company’s exposure between natural gas and renewables, and its oil and liquids pipelines. He called them “must-have” assets in the evolving energy landscape taking place in both countries..“We remain firmly of the view that all forms of energy will be required for a safe and reliable energy transition,” he said..“Adding natural gas utilities of this scale and quality, at a historically attractive multiple, is a once-in-a-generation opportunity. The transaction also reinforces our position as the first-choice energy delivery company in North America.” .As with Enbridge, all three of the acquired companies have committed to achieving net-zero greenhouse gas emissions by 2050 and are exploring critical energy infrastructure to transport low-carbon energy sources such as renewable natural gas and hydrogen..And despite assertions to the contrary from federal officials, without naming Environment Minister Steven Guilbeault, Enbridge said natural gas will continue to play a dominant role in the continental energy mix. In addition to home heating, gas is a primary fuel for power generation..“Today, and for the long-term, natural gas will remain essential for achieving North America’s energy security, affordability and sustainability goals,” said executive VP and Enbridge Gas president Michele Harradence..Subsequent to the deal announcement, Enbridge issued a $4 billion share offering which immediately makes it the second largest offering of shares in Canadian history — surpassed only by TransCanada, which raised $4.2 billion in 2016..That said, investors weren’t impressed with the per share discount being offered, driving Enbridge’s share price down about 5% on the Toronto Stock Exchange, to CAD $45.58, well off a 52-week high of $56.37..In a virtual press conference on Wednesday, Ebel said the share price drop was expected given the size of the deal and chalked it up to the cost of doing business.."When you issue equity, there is always going to be a little chop in the market," he said. "What we're telling investors, and what I expect will play out here, is investors are really going to like the returns that we're able to generate in this business.".This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
Even as Ottawa takes steps to curb Alberta’s natural gas industry, Calgary-based Enbridge is doubling down on gas distribution south of the border in a multi-billion blockbuster deal..Canada’s largest oil pipeline operator on Tuesday snapped up three US-based utility companies operating in five states, Ohio, North Carolina, Utah, Wyoming and Idaho for a combined US$14 billion in cash and assumed debt..When it closes in 2024, Enbridge, which already owns the largest and oldest gas utility in Ontario, becomes the largest in North America, effectively doubling its distribution business..At close, it will transport 9.3 billion cubic feet of gas per day — about 10% of all the gas produced in North America — to more than seven million customers in Canada and the US..In a statement, Enbridge CEO Greg Ebel said the deal is the largest of its kind in more than a decade and balances out the company’s exposure between natural gas and renewables, and its oil and liquids pipelines. He called them “must-have” assets in the evolving energy landscape taking place in both countries..“We remain firmly of the view that all forms of energy will be required for a safe and reliable energy transition,” he said..“Adding natural gas utilities of this scale and quality, at a historically attractive multiple, is a once-in-a-generation opportunity. The transaction also reinforces our position as the first-choice energy delivery company in North America.” .As with Enbridge, all three of the acquired companies have committed to achieving net-zero greenhouse gas emissions by 2050 and are exploring critical energy infrastructure to transport low-carbon energy sources such as renewable natural gas and hydrogen..And despite assertions to the contrary from federal officials, without naming Environment Minister Steven Guilbeault, Enbridge said natural gas will continue to play a dominant role in the continental energy mix. In addition to home heating, gas is a primary fuel for power generation..“Today, and for the long-term, natural gas will remain essential for achieving North America’s energy security, affordability and sustainability goals,” said executive VP and Enbridge Gas president Michele Harradence..Subsequent to the deal announcement, Enbridge issued a $4 billion share offering which immediately makes it the second largest offering of shares in Canadian history — surpassed only by TransCanada, which raised $4.2 billion in 2016..That said, investors weren’t impressed with the per share discount being offered, driving Enbridge’s share price down about 5% on the Toronto Stock Exchange, to CAD $45.58, well off a 52-week high of $56.37..In a virtual press conference on Wednesday, Ebel said the share price drop was expected given the size of the deal and chalked it up to the cost of doing business.."When you issue equity, there is always going to be a little chop in the market," he said. "What we're telling investors, and what I expect will play out here, is investors are really going to like the returns that we're able to generate in this business.".This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.