Keubiko • 39 Comments
Tue, Oct. 25, 6:57 PM
- Shareholders have filed five separate lawsuits in two weeks against Spectra Energy (NYSE:SE), alleging the company is selling itself too cheaply to Enbridge (NYSE:ENB).
- The most recent lawsuit criticizes SE’s board for agreeing to several “coercive deal protection devices” in the merger agreement, including a “no solicitation” clause that prevented alternate bidders from coming forward and a $1B termination fee that SE would have to pay if it decides to pursue a competing offer, stipulations the suit says would “chill any potential post-deal market check.”
- Each of the shareholder lawsuits are seeking class action status to represent other shareholders.
Thu, Sep. 29, 6:41 PM
- Enbridge (NYSE:ENB) agrees to sell the 994-mile South East Saskatchewan pipeline network to privately-held Tundra Energy Marketing for C$1.075B ($818M).
- ENB's Mainline system is the main conduit for Canadian crude shipped south to U.S. markets, and the SE Saskatchewan system transports 175K bbl/day of crude to the Mainline at Cromer, Manitoba, a major hub for barrels in Canada's South Prairie region.
- ENB says the sale achieves half of its goal of divesting ~$2N of non-core assets over the next year in conjunction with the Spectra Energy merger, and helps its income fund finance its growth program.
Tue, Sep. 27, 12:58 PM
- Investors likely are underestimating the earnings potential of the Enbridge (ENB -0.1%) and Spectra Energy (SE -0.1%) combination, CIBC analyst Robert Catellier says.
- Catellier says prospective financial information in the prospectus shows 2018 cash flow projections are 18% higher than currently expected, so “it appears to us that there is a healthy discount between estimates and company projections.”
- The proxy statement for the merger also shows that SE pushed for an all-stock transaction and showed “considerable confidence” in the dividend growth of the company following the merger, Catellier says. while Enbridge initially offered a combination of stock and cash.
- CIBC rates ENB as a Sector Outperformer with a $71 12-18-month price target.
Tue, Sep. 13, 1:37 PM
- Enbridge (ENB -4.2%) has indicated that the MLPs it amasses from its $28B takeover of Spectra Energy (SE -4.4%) will continue to be operated separately, but analysts say they are headed for some sort of consolidation in the long run.
- While ENB and SE rallied following their merger news, results have been mixed for Spectra Energy Partners (SEP -1.6%), Enbridge Energy Partners (EEP -3.2%), Midcoast Energy Partners (MEP -1.3%) and DCP Midstream Partners (DPM -5.4%) - the MLP jointly owned by SE and Phillips 66 - highlighting investor concerns about the post-merger fate of the units.
- ENB may take 2-3 years to decide the structure of its MLPs after closing on SE, says Hennessey Gas Utility Fund's Skip Aylesworth, adding that when it finally happens, “you might end up with two of the four” units.
Thu, Sep. 8, 10:26 AM
- Enbridge (ENB +3.5%) is upgraded to Buy from Neutral with a $48 price target, raised from $43, while proposed merger partner Spectra Energy (SE +4.3%) is downgraded to Neutral from Buy with a $42 price target at Goldman Sachs.
- Goldman thinks ENB’s medium-term growth outlook is robust, although there could be a decline in large-scale organic project associated with the oil sands, which could be a risk to long-term growth.
- The firm believes the proposed ENB-SE deal highlights the value of existing pipeline assets and natural gas infrastructure, adding that "deceleration in midstream capex could encourage companies to pursue acquisition opportunities to sustain growth."
Tue, Sep. 6, 7:45 PM
- Spectra Energy (NYSE:SE) surged +13.4% in today's trade for its biggest gain in more than three years, even staying above the original $40.33/share value of Enbridge's (NYSE:ENB) $28B all-stock offer, as traders clearly believe that antitrust and financing concerns are minimal and that the premium paid for SE was modest considering potential synergies.
- The deal has no serious antitrust problems, as the companies' networks have "limited overlap," according to Jones Day antitrust expert Bruce McDonald.
- Bloomberg's Liam Denning says combining the two companies "should entrench their advantage when it comes to raising money. Reassuring the capital markets is the no. 1 skill any pipeline executive requires in the aftermath of the crash."
- While ENB closed +5% and the Enbridge Energy Partners (NYSE:EEP) MLP ended +2.5%, Spectra Energy Partners (NYSE:SEP) was -1.3% as investors believed that the MLPs would be merged, even though the parent companies said it was not part of their current plans.
- SEP, which operates natural gas pipelines, has the lowest cost of capital in the group and would be diluted if it combines with EEP, which is more in crude pipelines, says Rob Thummel of Tortoise Capital, adding that he does not believe the MLPs will be combined.
Tue, Sep. 6, 7:17 AM
- Enbridge (NYSE:ENB) agrees to acquire Spectra Energy (NYSE:SE) in an all-stock deal valued at ~C$37B ($28B) that will create North America's largest energy infrastructure company.
- SE shareholders will receive 0.984 shares of the combined company for each SE share they own, the equivalent of $40.33/share, representing a ~11.5% premium to SE's closing price on Friday.
- After the deal, ENB shareholders will own ~57% of the combined company, while SE shareholders will own ~43%.
- The combined company will be called Enbridge Inc. and upon closing will be the largest energy infrastructure company in North America with a US$127B enterprise value.
- The companies’ MLP,s Spectra Energy Partners (NYSE:SEP) and Enbridge Energy Partners (NYSE:EEP), will continue to be separate publicly traded companies; SE also owns a 50% stake in DCP Midstream Partners (NYSE:DPM).
- SE +5.8% premarket.
Thu, Jul. 14, 2:52 PM
- Williams Cos. (WMB +5.6%) moves sharply higher following a Reuters report that it has received at least seven bids for its Canada unit, in a potential sale that could fetch $1B-$2B.
- Interest has come from pipeline companies Enbridge (ENB -0.4%), Pembina (PBA +0.5%), Keyera (OTC:KEYUF) and Inter Pipeline (OTCPK:IPPLF), as well as three Canadian pension plans, and an unspecified number of U.S. companies, according to the report.
- The sale process reportedly is at an advanced stage, and a deal could result by the end of the month; interest is said to be strong, highlighting demand for midstream assets that offer a steady cash flow despite volatile oil prices.
- Also: WPZ +3.3%, EEP +0.1%.
Nov. 5, 2015, 7:58 AM
- Enbridge (NYSE:ENB) agrees to acquire a 24.9% stake in E.ON's (OTCQX:EONGY) €1.9B ($2.1B) offshore Rampion wind project Rampion in the U.K. for C$750M (US$570M), and will manage construction of the project.
- E.ON will remain the controlling shareholder of the 400 MW project with a 50.1% stake, with the remaining stake being held by the UK Green Investment Bank.
- ENB and E.ON already are partners in the Magic Valley wind farm in Texas and the Wildcat wind farm in Indiana.
Sep. 3, 2015, 12:38 PM
- Holly Energy Partners (HEP +0.3%) agrees to acquire Enbridge’s (ENB +2.8%) 50% stake in the Frontier Pipeline for an undisclosed amount.
- The Frontier pipeline is a 296-mile crude oil route that runs from Casper, Wyo., to Frontier Station, Utah, and has a capacity of 72K bbl/day; the line brings Canadian and Rocky Mountain crude oils south to refineries in the Salt Lake City area.
- Plains All American (PAA +1.5%) owns the remaining 50% interest and will continue to operate the Frontier line.
Jun. 17, 2013, 10:59 AM
A 50% cut in Petrominerales' (PMGLF.PK) market value has left its equity and net debt valued at the cheapest multiple to profit among any oil and gas explorer in the world with a market value higher than $250M, according to Bloomberg, which speculates its reserves, estimated at 40M-plus barrels of mostly high-quality light oil, could attract suitors such as Enbridge (ENB), TransCanada (TRP) or Pacific Rubiales (PEGFF.PK).| Jun. 17, 2013, 10:59 AM | 3 Comments
Dec. 20, 2012, 9:29 AM
Enbridge (ENB) says it will invest ~C$170M to acquire a 50% stake in a wind project in Quebec. The 150 MW Massif du Sud project will be ENB's second wind project in the province. ENB has been building its portfolio of renewable energy projects to supply power for its own needs and offset its carbon emissions.| Dec. 20, 2012, 9:29 AM
Nov. 16, 2011, 9:31 AM
More on ConocoPhillips's (COP -1.2%) asset sales: One of the deals is a $1.15B transaction to sell ConocoPhillips' 50% stake in the Seaway Crude Pipeline Company, which transports oil between Texas and Oklahoma, to Enbridge (ENB -1.4%). ConocoPhillips says the deals will bring total proceeds from its 2010-2012 divestiture program up to $10.5B.| Nov. 16, 2011, 9:31 AM | 2 Comments