Enbridge sells some assets

Article Excerpt

ENBRIDGE, $47.74, is a buy. The firm (Toronto symbol ENB; Shares outstanding: 2.1 billion; Market cap: $102.4 billion; TSINetwork Rating: Above Average; Dividend yield: 7.7%; www.enbridge.com) has agreed to sell its stakes in two joint ventures to its partner Pembina Pipeline. Specifically, Pembina will acquire an additional 50.0% of the Alliance Pipeline, which pumps natural gas from B.C. and Alberta to Chicago. It will also buy 42.7% of the Aux Sable gas processing plant in Illinois. After Pembina completes these transactions in the first half of 2024, it will own 100% of Alliance and 85.4% of Aux Sable (U.S.-based Williams Companies holds the remaining 14.6%). In all, Enbridge will receive $3.1 billion. The company will use those proceeds to fund its recent deal to buy three regulated gas utility firms—they serve roughly 3 million customers in Ohio, North Carolina, Utah, Idaho and Wyoming. Enbridge will pay from Dominion Energy, Inc. (New York symbol D) $14.0 billion U.S. in cash for these businesses. Enbridge is still a buy. …