Oct 17, 2023 · 41 min · 16 segments
An audio reading of the feature article from the October 2023 issue of Gas Compression Magazine. This month's features include: Enbridge Opens The Floodgates On Midstream M&A (Begins At 1:01) Venture…
Danny FelberHost
The deal is the second largest the North American midstream industry has seen since Enbridge merged with Spectra Energy for $28 billion in 2016.
Before we get into the pipelines and compressor stations involved and how the deal relates to other recent midstream mergers and acquisitions, it's important to note the premium price Enbridge is paying for these assets.
Enbridge is paying 16.5 times the utility's estimated 2023 earnings, a premium price for what are generally considered low-growth gas transmission, gathering, and distribution assets.
It's also a particularly high price relative to what liquified natural gas assets have been going for, which is perceived to be a higher-growth industry.
America, and the future of natural gas is through North America and exports, said Enbridge Chief Executive Officer Greg Epple in an interview with CNBC.
Enbridge's acquisition is a bold stamp of approval on the value of legacy North American oil and gas assets.
The price Enbridge is paying for these assets comes not from growth, but from the affordability, reliability, and security of natural gas relative to other fuels, factors that don't normally garner the attention they deserve.
Once complete, the deal will make Enbridge the largest natural gas utility business by volume in North America.
Enbridge is buying the East Ohio Gas Company, QSTAR Gas, and the Public Service Company of North Carolina.
East Ohio serves more than 1.2 million customers across more than 400 communities and 27 counties.
The utility has 22,000 miles of transmission, gathering, and distribution pipelines, as well as 60 BSCF of natural gas storage.
QSTAR serves about 97% of households in Utah, as well as customers in southwestern Wyoming and Idaho.
The utility has about 21,000 miles of transmission, gathering, and distribution pipelines.
It has a regulated supply agreement with Wexpro, which can supply up to 65% of QSTAR's gas needs without commodity exposure.
PSNC serves more than 600,000 customers across North Carolina and has about 13,000 miles of transmission, gathering, and distribution pipelines.
The utilities bring Enbridge's total gas delivery volume to 9.3 BSCF per day, making it the largest natural gas utility in North America.
Adding natural gas utilities of this scale and quality at a historically attractive multiple is a once-in-a-generation opportunity, said Ebel in a statement.
The assets we are acquiring have long, useful lives, and natural gas utilities are a must-have infrastructure for providing safe, reliable, and affordable energy.
The deal is the second largest the North American midstream industry has seen since Enbridge merged with Spectra Energy for $28 billion in 2016.
Before we get into the pipelines and compressor stations involved and how the deal relates to other recent midstream mergers and acquisitions, it's important to note the premium price Enbridge is paying for these assets.
Enbridge is paying 16.5 times the utility's estimated 2023 earnings, a premium price for what are generally considered low-growth gas transmission, gathering, and distribution assets.
It's also a particularly high price relative to what liquified natural gas assets have been going for, which is perceived to be a higher-growth industry.
America, and the future of natural gas is through North America and exports, said Enbridge Chief Executive Officer Greg Epple in an interview with CNBC.
Enbridge's acquisition is a bold stamp of approval on the value of legacy North American oil and gas assets.
The price Enbridge is paying for these assets comes not from growth, but from the affordability, reliability, and security of natural gas relative to other fuels, factors that don't normally garner the attention they deserve.
Once complete, the deal will make Enbridge the largest natural gas utility business by volume in North America.
Enbridge is buying the East Ohio Gas Company, QSTAR Gas, and the Public Service Company of North Carolina.
East Ohio serves more than 1.2 million customers across more than 400 communities and 27 counties.
The utility has 22,000 miles of transmission, gathering, and distribution pipelines, as well as 60 BSCF of natural gas storage.
QSTAR serves about 97% of households in Utah, as well as customers in southwestern Wyoming and Idaho.
The utility has about 21,000 miles of transmission, gathering, and distribution pipelines.
It has a regulated supply agreement with Wexpro, which can supply up to 65% of QSTAR's gas needs without commodity exposure.
PSNC serves more than 600,000 customers across North Carolina and has about 13,000 miles of transmission, gathering, and distribution pipelines.
The utilities bring Enbridge's total gas delivery volume to 9.3 BSCF per day, making it the largest natural gas utility in North America.
Adding natural gas utilities of this scale and quality at a historically attractive multiple is a once-in-a-generation opportunity, said Ebel in a statement.
The assets we are acquiring have long, useful lives, and natural gas utilities are a must-have infrastructure for providing safe, reliable, and affordable energy.
The rest of this transcript — segmented and speaker-labeled, so you land on the exact moment something was said
Search every transcript — by keyword, by phrase, or by meaning, across every show Radar indexes
Trends — what is surging across podcasts, measured against its own baseline
Alerts — when a name you follow appears in a newly indexed episode
No account is needed to search Radar.