11:36:55 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Enbridge Inc
Symbol ENB
Shares Issued 848,774,828
Close 2014-12-03 C$ 54.43
Market Cap C$ 46,198,813,888
Recent Sedar Documents

Enbridge mulls drop-down of U.S. pipelines to EEP

2014-12-03 20:05 ET - News Release

Mr. Mark Maki reports

ENBRIDGE REVIEWING RESTRUCTURING PLAN TO DROP DOWN ITS U.S. LIQUIDS PIPELINE ASSETS TO ENBRIDGE ENERGY PARTNERS

Enbridge Inc. is reviewing a potential restructuring plan that would involve the transfer of its directly held U.S. liquids pipeline assets to Enbridge Energy Partners LP (EEP), a U.S. affiliate of Enbridge. This review is under way and has not progressed to a conclusion.

In the event that a proposal is received from Enbridge, the board of directors of Enbridge Energy Management LLC, the delegate of EEP's general partner, would appoint a special committee comprising independent directors to review and consider any such proposal. Acceptance of a proposal is subject to the review and favorable recommendation by the special committee and final approval by the board.

"Enbridge's recent restructuring announcement is a clear message that Enbridge is seriously considering further drop-down transactions to EEP. Enbridge's U.S. liquids pipeline systems are extensive and include very strategic assets such as the Flanagan South, Spearhead, Seaway, Toledo and Southern Access Extension pipelines. In addition, EEP and Enbridge have jointly funded several major expansions of the Lakehead pipeline system in the Great Lakes region of the United States. All of these pipeline systems and jointly funded projects are attractive investments for EEP. Enbridge's U.S. pipeline systems are largely underpinned by low-risk commercial frameworks, such as cost-of-service or ship-or-pay commitments," said Mark A. Maki, president of Enbridge Management.

"The potential drop-down of Enbridge's U.S. liquids pipelines systems would add substantial new sources of long-lived and growing cash flows to EEP's already exceptional portfolio of liquids pipeline systems. The restructuring plan under consideration by Enbridge once again demonstrates the strategic alignment and support of our sponsor Enbridge, and its commitment to enhancing the value of EEP for all of our investors," concluded Mr. Maki.

An independent committee of the board is currently reviewing and considering the terms of the previously announced proposed transfer to EEP of Enbridge's 67-per-cent interest in the U.S. segment of the Alberta Clipper pipeline, which, if approved, is expected to be completed by the end of 2014.

We seek Safe Harbor.

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