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.
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.
Mon, Apr. 4, 9:17 AM
- Plains All American Pipeline (NYSE:PAA) agrees to acquire Spectra Energy's (NYSE:SE) Canadian natural gas liquids business for ~C$200M (US$150M).
- The deal includes the Empress NGL extraction and fractionation facility, the PTC transmission pipeline, seven NGL terminals and two NGL storage facilities in western Canada.
- PAA also says it is evaluating non-core asset sales and expects total asset sales for 2016 of $500M-$600M.
- Now read Spectra Energy is a safe midstream with an attractive yield
Oct. 19, 2015, 8:58 AM
- Spectra Energy (NYSE:SE) agrees to acquire Spectra Energy Partners' (NYSE:SEP) one-third ownership interests in the Sand Hills and Southern Hills natural gas liquids pipelines in exchange for redemption and cancellation of 21.56M limited partner units and 440K general partner units.
- SE also says it has executed an agreement with Phillips 66 (NYSE:PSX) and DCP Midstream (NYSE:DPM), under which it will contribute its interests in the Sand Hills and Southern Hills pipelines and Phillips 66 will contribute $1.5B, respectively, to DPM; DPM is the 50-50 joint venture between SE and PSX.
Sep. 28, 2015, 11:39 AM
- Investors are balking at Energy Transfer Equity's (ETE -8.9%) just-announced merger with Williams Cos. (WMB -8.6%), as shares in the two oil and gas pipeline companies sell off sharply.
- WMB appears not to have needed to do much to sweeten its offer: "At first glance, it seems as if the bid matches ETE’s original offer made in June,” Raymond James analysts say - since both companies’ shares have fallen since the potential deal first became public, the headline deal number is now much lower than the $48B value announced in June.
- While plunging oil and natural gas prices have not hit pipeline operators as hard as other energy companies, analysts say the group is facing pressure to merge; prices also have fallen for fuels such as ethane and propane, which has hurt companies like WMB, which processes natural gas.
- Despite the immediate negative reaction, ETE claims the merger will enable it to capture $2.4B or more in commercial and cost-saving synergies over the next few years.
- Kinder Morgan (KMI -3.8%) and Spectra Energy (SE -3.4%) were among the other companies reportedly interested in acquiring WMB.
- Also: WPZ -7.7%, ETP -6.1%.
Sep. 11, 2015, 6:24 PM
- Spectra Energy (NYSE:SE) has exited the auction process for Williams Cos. (WMB, WPZ), increasing the possibility that Energy Transfer Equity (ETE, ETP) could succeed in buying the company, Reuters reports.
- ETE and WMB are said to be negotiating and trying to agree over the share portion of the offer, with ETE offering new shares that have never traded in the public market and WMB viewing the valuation for those shares as untested.
- ETE has hinted that it could launch a hostile takeover if discussions fall through.
Aug. 17, 2015, 8:11 AM
- Spectra Energy (NYSE:SE) is bidding for the whole of Williams Cos. (NYSE:WMB), despite its market cap being about half of the latter, Reuters reports.
- Kinder Morgan (NYSE:KMI) is also interested in the company, but would face potential antitrust issues if it proceeded with a bid.
- Williams put itself up for sale in June after rejecting a $53.1B all-stock takeover bid (including debt) from Energy Transfer Equity (NYSE:ETE).
- WMB +1.5% premarket
Aug. 5, 2015, 2:45 PM
- Energy Transfer Equity (ETE -2.9%) has progressed to the second round of bidding for Williams Cos. (WMB -1.7%), a key milestone in its efforts to clinch a friendly takeover, Reuters reports.
- WMB decided to put itself on the auction block after it rejected an acquisition proposal from ETE in June worth ~$53B at the time including the assumption of debt, aimed at disrupting WMB's plans to acquire its pipeline subsidiary Williams Partners (WPZ -3.6%).
- WMB reportedly has attracted other bidders, although it is not yet clear which other companies made it through to the second round; Kinder Morgan (KMI -3.5%) and Spectra Energy (SE +0.4%) reportedly have expressed interest in WMB, but KMI could face significant antitrust hurdles because of its size.
Aug. 6, 2013, 9:22 AM
- Spectra Energy (SE) agrees to sell its remaining U.S. transmission, storage and liquids assets to Spectra Energy Partners (SEP) for ~$10B.
- SE had first unveiled the plan to sell the assets in June, and said Friday it closed the drop-down of 50% of the Express-Platte crude oil pipeline system to SEP for ~$729M; in the latest move, SE is dropping the other half of Express-Platte plus all interest in the Sand Hills and Southern Hills pipelines.
- The deal will allow for a "significant dividend increase" at SE and "sizeable increases" in SEP's distributions to unitholders.
- Once the deal closes, SE CEO Greg Ebel also will become CEO and chairman of SEP. (Q2 results)
Oct. 31, 2012, 8:37 AM
Spectra Energy (SE) agrees to acquire a one-third interest in the Sand Hills and Southern Hills pipelines now under construction by DCP Midstream (DCM). SE, Phillips 66 (PSX) and DCM each would own a one-third interest in the pipelines and will equally fund the remaining capital expenditures through completion. SE's total investment in the two projects is expected at $700M-$800M.| Oct. 31, 2012, 8:37 AM
Jan. 17, 2012, 4:55 PM
Spectra Energy (SE) says it's open to buying natural gas pipeline assets in the Rocky Mountains from Kinder Morgan (KMI) and El Paso (EP), should they try to sell some of them in order to obtain federal clearance for their merger. The companies are already attempting to sell parts of El Paso's oil and gas exploration/production unit in order to help finance the merger.| Jan. 17, 2012, 4:55 PM