• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 7 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 12 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 43 mins CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 10 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 5 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 4 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 10 hours NordStream2
  • 4 days Modest drop in oil price: SPRs vs US crude inventory build
  • 4 days 2019 - Attack on Saudi Oil Facilities.
  • 4 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 6 days Ukrainian Maidan after 8 years
  • 6 days Peak oil - demand vs production

Breaking News:

Expect Cheaper Gasoline This Week

Enbridge, Spectra Ink A $28 Billion Merger Deal

On Tuesday, Canadian pipeline company Enbridge agreed to the purchase of Spectra Energy Corporation out of Houston. The all stock deal is valued at $28 million. In the deal, Spectra Energy Holders will receive Enbridge shares valued at approximately $40.33 each.

When the deal is closed, Enbridge shareholders will own 57 percent of the company, while Spectra holders will have the remaining 43 percent. The new entity, bearing Enbridge’s name, will be a major energy infrastructure company that is being created when the industry continues to cope with low oil prices and the resulting conditions.

The company will have assets in crude oil, liquids and natural gas pipelines, terminal and midstream operations. The company will also have a regulated utility portfolio and renewable energy operations.

Al Monaco, the chief executive of Enbridge stated: “Bringing Enbridge and Spectra Energy together makes strong strategic and financial sense, and the all-stock nature of the transaction provides shareholders of both companies with the opportunity to participate in the significant upside potential of the combined company.”

Greg Ebel, who will be the chairman of the new company noted: “Together, the merged companies will have what we believe is the finest platform for serving customers in every region of North America and providing investors with the opportunity for superior shareholder returns.”

The deal is expected to close in the first quarter of 2017, according to a statement from Enbridge and Spectra.

Of note: in an interview with the Houston Business Journal in April, Ebel, who at the time was the CEO for Spectra, stated: “We have a history of being involved in M&A and consolidation, but we don’t need to do that because we have a $10 billion backlog of contracted projects that we’re building. You can build projects cheaper than you can buy new assets. In buying new assets, you’re usually buying assets that are revenue producing, and building assets takes several years to get it done, but we’ll be on the lookout.”

By Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News