8-KAcquisitions & Dispositions

ENBRIDGE INC 8-K Report, Acquisition Completed (Oct 1, 2024)

Filed October 1, 2024For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) has officially completed the acquisition of three distinct sets of assets from Dominion Energy, Inc. (Dominion) as of September 30, 2024. This marks the culmination of previously announced agreements, significantly expanding Enbridge's utility footprint in the United States. The acquired entities include "EOG" (Dominion Energy Questar Corporation, Dominion Energy Gas Distribution, LLC, The East Ohio Gas Company, and DEO Alternative Fuel, LLC), "Questar" (Questar Gas Company, Wexpro Company, Wexpro II Company, Wexpro Development Co., Dominion Energy Wexpro Services Co., Dominion Gas Projects Co., LLC, and Questar InfoComm Inc.), and Public Service Company of North Carolina, Incorporated (“PSNC”). These acquisitions represent substantial investments, totaling approximately US$6.6 billion for EOG, US$4.3 billion for Questar, and US$3.2 billion for PSNC, funded through a combination of cash and assumed debt. The integration of these businesses will see them operating under the Enbridge brand in their respective regions, with transition services agreements in place to ensure a smooth handover from Dominion. This strategic move is poised to bolster Enbridge's natural gas utility operations and geographic diversification.

Key Highlights

  • 1Enbridge Inc. has completed the acquisition of EOG, Questar, and PSNC from Dominion Energy, Inc. on September 30, 2024.
  • 2The total acquisition cost is approximately US$14.1 billion (US$6.6B for EOG + US$4.3B for Questar + US$3.2B for PSNC).
  • 3The acquisitions were financed through a combination of cash and assumed debt for each transaction.
  • 4EOG acquisition involved US$4.3 billion in cash and US$2.3 billion in assumed debt.
  • 5Questar acquisition involved US$3.0 billion in cash and US$1.3 billion in assumed debt.
  • 6PSNC acquisition involved US$2.0 billion in cash (subject to adjustments) and US$1.2 billion in assumed debt.
  • 7Transition services agreements are in place with Dominion to facilitate operational handover.

Frequently Asked Questions

These acquisitions represent a significant expansion of Enbridge's natural gas utility operations in the United States, adding substantial customer bases and geographic diversity across Ohio, Utah, Wyoming, Idaho, and North Carolina. This is a strategic move to strengthen its regulated utility business.

The combined total consideration for the three acquisitions is approximately US$14.1 billion. This includes cash payments and the assumption of significant debt from Dominion Energy for each entity.

Each acquisition was financed through a combination of cash consideration and the assumption of debt. For example, the EOG acquisition involved approximately US$4.3 billion in cash and US$2.3 billion in assumed debt.

Transition services agreements have been established with Dominion Energy to provide certain services during the handover period. This ensures continuity of operations for the acquired businesses as they integrate into Enbridge's structure.