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Enbridge To Buy Moda Midstream Operating, LLC For $3.0 Bln Cash - Quick Facts

Enbridge Inc. (ENB,ENB.TO) announced Tuesday that it has entered into a definitive purchase agreement with EnCap Flatrock Midstream to acquire Moda Midstream Operating, LLC (Moda) for $3.0 billion in cash, subject to closing adjustments.

The acquisition will significantly advance the Company's U.S. Gulf Coast export strategy and connectivity to low-cost and long-lived reserves in the Permian and Eagle Ford basins. The transaction is expected to be immediately accretive to Enbridge's financial outlook upon closing.

Under the transaction, Enbridge will acquire a 100 percent operating interest in the Ingleside Energy Center (to be renamed the Enbridge Ingleside Energy Center (EIEC)), located near Corpus Christi, Texas - North America's largest crude export terminal, which loaded 25 percent of all U.S. Gulf Coast crude exports in 2020. This state-of-the-art terminal, built in 2018, comprises 15.6 million barrels of storage and 1.5 million barrels per day of export capacity.

Enbridge will also acquire a 20 percent interest in the 670-thousand-barrel per day Cactus II Pipeline, a 100 percent operating interest in the 300-thousand-barrel per day Viola pipeline, and a 100 percent operating interest in the 350-thousand-barrel Taft Terminal. Together with EIEC, these pipeline and storage assets provide a fully integrated light crude export platform.

The acquired assets are expected to be immediately and strongly accretive to distributable cash flow per share and earnings per share.

The transaction will be initially funded with existing liquidity and the Company anticipates that 2022 Debt to EBITDA will be at the lower end of its target range.

This investment also provides Enbridge with further organic growth potential supporting the Company's post-2023 growth outlook.

In addition, Enbridge will hold a 50 percent interest in a brownfield St. James deep-water crude and refined products terminal development opportunity, which provides longer term growth potential.

The transaction is expected to close in the fourth quarter of 2021, subject to customary regulatory approvals and closing conditions.

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