- Acquiring leading
U.S. Gulf Coast light crude export platform, with VLCC capability - Advantaged location ensures shortest transit times and lowest cost exports
- Immediately and strongly accretive investment, with ~90% contracted cash flows
- Embedded low capital organic expansion opportunities provides future growth
- Development of on-site solar power results in net-negative facility emissions
"We're very excited about acquiring
"This blue-chip platform aligns very well with our long-standing shareholder value proposition; strong commercial underpinnings that generate highly transparent and low risk cash flows, establishing a new platform for low capital intensity growth, and an attractive financial return, all while retaining a strong balance sheet and financing flexibility.
"This investment is also a prime example of how we're focused on being a differentiated service provider to our customers by lowering emissions across our systems. In line with that objective, we expect to develop solar power capacity at the terminal site, which will ensure it's the most sustainable export facility in
Central to the transaction,
EIEC's highly advantaged outer harbor location, with direct connection to low-cost, long-lived supply, combined with VLCC capability and rapid loading rates, position it as one of the most competitive export facilities globally. EIEC is underpinned by 925 thousand barrels per day of long term take-or-pay vessel loading contracts and 15.3 million barrels of long-term storage contracts providing visibility to future cash flows. Its direct connection to globally competitive Permian and
The acquired assets are expected to be immediately and strongly accretive to distributable cash flow per share and earnings per share. In addition, ongoing EBITDA generation supports the Company's dividend growth outlook and growing base of free cash flow, further strengthening its sector leading financial flexibility and preserving its
This investment also provides
EIEC has been recently constructed to industry-leading environmental standards designed to minimize its carbon emissions footprint.
The transaction is expected to close in the fourth quarter of 2021, subject to customary regulatory approvals and closing conditions. Moda's Ingleside Management and key Moda marine terminal personnel will remain in place following closing of the transaction, ensuring continuity of operations and ongoing development activities.
A complete description of the transaction, along with additional details on the acquired assets is available on the Investor Relations section of the
Barclays acted as financial advisor to
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about us and our subsidiaries and affiliates, including management's assessment of our and our subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate", "believe", "estimate", "expect", "forecast", "intend", "likely", "plan", "project", "target" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: the acquisition of
Although we believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the COVID-19 pandemic and the duration and impact thereof; the expected supply of and demand for crude oil, natural gas, NGL and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; anticipated utilization of assets; exchange rates; inflation; interest rates; availability and price of labor and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals; the timing and closing of the Transaction; the realization of anticipated benefits of the Transaction and other transactions; governmental legislation; litigation; estimated future dividends and impact of our dividend policy on our future cash flows; our credit ratings; capital project funding; hedging program; expected EBITDA; expected earnings/(loss); expected future cash flows; and expected distributable cash flow. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for our services. Similarly, exchange rates, inflation and interest rates and the COVID-19 pandemic impact the economies and business environments in which we operate and may impact levels of demand for our services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected EBITDA, expected earnings/(loss), expected future cash flows, expected distributable cash flow or estimated future dividends.
Our forward-looking statements are subject to risks and uncertainties pertaining to the successful execution of our strategic priorities; operating performance; legislative and regulatory parameters; litigation; acquisitions, dispositions and other transactions, including the Transaction, and the realization of anticipated benefits therefrom; our dividend policy; project approval and support; renewals of rights-of-way; weather; economic and competitive conditions; public opinion; changes in tax laws and tax rates; exchange rates; interest rates; commodity prices; political decisions; the supply of and demand for commodities; and the COVID-19 pandemic, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and
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