Enbridge Acquires Montney Natural Gas Assets from Murphy Oil Corp.
January 27, 2016
CALGARY, ALBERTA--(Marketwired - Jan. 27, 2016) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) (the "Company") today announced the $538 million acquisition of Tupper Main and Tupper West gas plants and associated pipelines in northeastern B.C., from the Canadian subsidiary of Murphy Oil Corporation (Murphy) (NYSE:MUR).
"This acquisition fits extremely well with Enbridge's low risk value proposition and supports our key priority of extending and diversifying growth," said C. Gregory Harper, President of Gas Pipelines and Processing. "These assets, which are currently in operation, are underpinned by long-term contracts that generate highly predictable cash flows. They also enhance our natural gas footprint within the Montney, one of the most attractive gas plays in North America, and add gas processing services in proximity to our existing Sexsmith gathering system."
The purchase price will initially be funded from available sources of liquidity. The investment was anticipated in Enbridge's long term capital expenditure plan and no incremental equity funding will be required beyond amounts previously identified.
Located 35 kilometers southwest of Dawson Creek, B.C., the Tupper Main and Tupper West plants are adjacent to Enbridge's existing Sexsmith gathering system and close to the Alliance pipeline, which is 50 percent owned by Enbridge Income Fund. Tupper Main was placed into service in late 2008 and has a licensed capacity of 110 MMcf/d. Tupper West went into service in early 2011 and has a licensed capacity of 210 MMcf/d. The assets include approximately 53 kilometers of high pressure pipelines.
The transaction is subject to regulatory review and approval.
About Enbridge Inc.
Enbridge Inc., a Canadian company, exists to fuel people's quality of life, and has done so for more than 65 years. A North American leader in delivering energy, Enbridge has been ranked on the Global 100 Most Sustainable Corporations index for the past seven years. Enbridge operates the world's longest crude oil and liquids transportation system across Canada and the U.S., and has a significant and growing involvement in natural gas gathering, transmission and midstream business, as well as an increasing involvement in power transmission. Enbridge owns and operates Canada's largest natural gas distribution company, serving residential, commercial, and industrial customers in Ontario, Quebec, New Brunswick and New York State. Enbridge has interests in more than 2,000 megawatts of net renewable and alternative generating capacity, and continues to expand into wind, solar and geothermal power. Enbridge employs nearly 11,000 people, primarily in Canada and the U.S., and is ranked as one of Canada's Top Employers for 2016.
Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
Forward Looking Information
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to, future production and development activities; recoverable quantities of natural gas and NGLs; demand for processing capacity and services; anticipated cash flows; integration opportunities; and sources of funding. Although Enbridge believes these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to project completion, operating performance, regulatory parameters, weather, economic conditions and commodity prices. A further discussion of the risks and uncertainties facing the Company can be found in the Company's filings with Canadian and United States securities regulators. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
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