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Enbridge Inc Acquires Dominion Energy's Natural Gas Distribution Businesses for $9.4 Billion

Strategic Insights

— 1 min read

Enbridge Inc's leaders have signed a deal to purchase Dominion Energy Inc's natural gas distribution businesses for a significant $9.4 billion, including the assumption of $4.6 billion in debt. This acquisition is set to be completed in 2024, potentially making Enbridge the largest gas utility in North America. The Calgary, Alberta-based company plans to acquire the assets of Ohio Gas Co, Questar Gas Co, and Public Service Co of North Carolina Inc, which collectively operate a vast network of 78,000 miles of distribution, transmission, gathering, and storage pipelines, as well as storage facilities with over 62 billion cubic feet of capacity.

Key Takeaways:

  • Enbridge plans to pay cash for Dominion's natural gas distribution businesses, which serve approximately 3 million customers across Ohio, North Carolina, Utah, Idaho, and Wyoming.
  • The transaction includes the assumption of $4.6 billion in debt, in addition to the $9.4 billion purchase price.
  • Enbridge expects to combine its presence in Ontario and Quebec with Dominion's subsidiaries, resulting in a utility with 7,000 employees and 7 million customers delivering approximately 9.3 billion cubic feet per day.
  • The acquisition is expected to add approximately $2 billion to Enbridge's adjusted EBITDA in 2025.
  • The companies involved in the transaction include Enbridge Inc, Dominion Energy Inc, Ohio Gas Co, Questar Gas Co, and Public Service Co of North Carolina Inc.

Statistics:

  • $9.4 billion: The purchase price for Dominion's natural gas distribution businesses.
  • $4.6 billion: The assumed debt associated with the acquisition.
  • 78,000 miles: The combined length of distribution, transmission, gathering, and storage pipelines operated by the acquired businesses.
  • 62 billion cubic feet: The capacity of the storage facilities associated with the acquired businesses.
  • 3 million: The approximate number of customers served by the acquired businesses.
  • 7 million: The combined number of customers served by Enbridge and Dominion's subsidiaries after the acquisition.
  • 7,000: The combined number of employees working for Enbridge and Dominion's subsidiaries after the acquisition.
  • 9.3 billion cubic feet per day: The approximate amount of natural gas delivered by Enbridge and Dominion's subsidiaries after the acquisition.

Sources:

  • PennWell Corporation. (2023). Original source. Available at: http://www.ogj.com/index.html

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