Mr. Pat Murray reports

ENBRIDGE ANNOUNCES $3.1 BILLION SALE OF ITS INTERESTS IN ALLIANCE PIPELINE AND AUX SABLE

Enbridge Inc. has entered into a definitive agreement to sell its 50.0-per-cent interest in Alliance Pipeline and its 42.7-per-cent interest in Aux Sable to Pembina Pipeline Corp. for a purchase price of $3.1-billion, including non-recourse debt at Alliance of approximately $300-million and subject to customary closing adjustments.

Alliance delivers liquids-rich natural gas sourced in northeastern British Columbia, northwest Alberta and the Bakken region to Chicago. Aux Sable operates natural gas liquids extraction and fractionation facilities in both Canada and the U.S., with extraction rights on Alliance, offering connectivity to key U.S. NGL hubs.

The sale price represents an attractive valuation of approximately 11 times projected 2024 earnings before interest, taxes, depreciation and amortization for Alliance and approximately seven times for Aux Sable, which are in line with other commodity-exposed businesses.

"We are pleased to continue our strong track record of surfacing value for shareholders through an ongoing capital recycling program. With this divestiture, we will have raised approximately $14-billion since 2018 at attractive valuations," said Pat Murray, executive vice-president and chief financial officer. "Today's transaction reinforces our disciplined approach to capital allocation. We remain committed to optimizing our portfolio, enhancing our industry-leading cash flow profile by reducing commodity price exposure, bolstering our financial flexibility and maintaining a strong balance sheet."

As part of the transaction, Pembina, a long-standing partner on Alliance and the current operator of Aux Sable will also assume operatorship of Alliance. Enbridge will work closely with Pembina to ensure a safe and orderly transition.

"The Alliance and Aux Sable system has been a reliable and profitable asset for Enbridge for many years. We would like to thank our high-quality team for their commitment to safety and reliability," said Cynthia Hansen, executive vice-president and president, gas transmission and mid-stream.

The divestiture represents an important element of Enbridge's financing plan. The sales proceeds will finance a portion of the strategic U.S. gas utilities acquisitions and be used for debt reduction. Any remaining acquisition financing will be satisfied through utilizing any, or all, of the following financing programs available to Enbridge, including its continuing capital recycling program, issuance of further hybrid securities and bonds, reinstatement of its dividend reinvestment plan program or at-the-market equity issuances.

The effective date of the transaction is Jan. 1, 2024, with closing expected to occur in the first half of 2024, subject to the receipt of regulatory approvals and customary closing conditions. Enbridge's 2024 financial guidance and near-term growth outlook through 2025 remain unchanged as a result of this announcement.

National Bank Financial and Scotiabank acted as financial advisers and Torys LLP as legal adviser to Enbridge on the transaction.

About Enbridge Inc.

At Enbridge, it safely connects millions of people to the energy they rely on every day, fuelling quality of life through its North American natural gas, oil and renewable power networks, and its growing European offshore wind portfolio. It is investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on more than a century of operating conventional energy infrastructure and two decades of experience in renewable power. It is advancing new technologies, including hydrogen, renewable natural gas, carbon capture and storage, and is committed to achieving net-zero greenhouse gas emissions by 2050. Headquartered in Calgary, Alta., Enbridge has common shares that trade under the symbol ENB on the Toronto and the New York stock exchanges.

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