Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Toronto Stock Exchange  >  Enbridge Inc    ENB   CA29250N1050

ENBRIDGE INC (ENB)
Mes dernières consult.
Most popular
SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Exclusive: Kinder Morgan starts talks with investors for $5.2 billion Canada pipeline project - sources

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/17/2017 | 07:57pm CET
The entrance for the Kinder Morgan Tank Farm is pictured in Burnaby

Kinder Morgan Inc (>> Kinder Morgan Inc) has begun talks with institutional investors including major Canadian pension funds and private equity firms to raise capital for the C$6.8 billion ($5.2 billion) expansion of its Trans Mountain pipeline project, according to people familiar with the process.

Kinder Morgan Inc (>> Kinder Morgan Inc) has begun talks with institutional investors including major Canadian pension funds and private equity firms to raise capital for the C$6.8 billion ($5.2 billion) expansion of its Trans Mountain pipeline project, according to people familiar with the process.

Kinder Morgan has held discussions with Canada Pension Plan Investment Board, the Caisse de depot et placement du Quebec and Ontario Teachers' Pension Plan Board, three of the biggest Canadian pension funds, the people added. It was unclear whether these talks were continuing.

The biggest U.S. pipeline company, which has said its goals for 2017 include a joint venture or initial public offering of Trans Mountain, is stepping up financing efforts even though the massive project faces opposition from environmental and aboriginal groups. It won Canadian government approval late last year, and expects to start the expansion later in 2017 and complete it by 2019.

Kinder Morgan has hired Toronto Dominion Bank (>> Toronto-Dominion Bank) as an adviser to help arrange financing, and the bank is expected to run a so-called "dual-track" process. Apart from a potential IPO, Kinder Morgan is also considering sale of a 50 percent stake in Trans Mountain by creating a joint venture. The formal process to attract venture partners is getting underway, the people said.

"We're confident in the interest from the investment community and we're continuing to move forward with all aspects of planning in order to begin construction in September 2017," said Ali Hounsell, spokeswoman for Kinder Morgan's Trans Mountain Expansion Project.  

The company will also tap sovereign wealth funds from the Middle East, the people said. Institutional investors are attracted to infrastructure assets because they tend to operate with long-term contracts and have stable cash flow.

CPPIB declined to comment. TD, the Caisse and Ontario Teachers did not immediately respond to requests for comment. Sources declined to be identified as the discussions are private.

MAJOR CANADIAN IPO

Should Kinder Morgan pursue a share sale instead, it would be among the biggest IPOs in Canadian history. An IPO could raise about 20 to 40 percent of the targeted budget, one of the people said, or between C$1.4 billion and C$2.7 billion.

The IPO could be a spin-off of its Trans Mountain pipeline business or the rest of its Canadian assets, which sources said would be more likely.

Trans Mountain has been operating since 1953. Most of the crude, which is produced in Alberta, is shipped to British Columbia’s Pacific Coast, with some volumes diverted south of the border to Washington State.

Kinder Morgan has owned the pipeline since 2005 when it bought Terasen Inc. The expansion project will make Trans Mountain one of the biggest pipelines in North America. For the company, it would almost triple the pipeline's capacity, allowing it to transport 890,000 barrels of oil per day.

The Trans Mountain expansion would increase access to fast-growing Asian refining markets and has strong support from Canadian oil sands shippers keen to diversify their customer base away from just the United States. But it faces strong opposition from environmentalists and communities along its route, with critics from First Nations chiefs to the mayor of Burnaby, where it terminates, vowing civil disobedience to disrupt construction. (http://reut.rs/2kDsWwh) Kinder Morgan Canada President Ian Anderson said last year he would be “naive” not to expect blockades during the build.

The current Trans Mountain pipeline is routinely oversubscribed, with shippers keen to transport crude to Canada’s Pacific coast usually only able to move a fraction of their nominated volumes.

The scarcity of such high-quality infrastructure assets makes them particularly attractive, often increasing competition among institutional players. Canada's growing pension funds have been forced to look beyond Canada for large acquisitions.

Frustration has been growing in the energy industry about Canadian pipelines struggling to get approved. The Trans Mountain expansion project was one of few to get a go-ahead in recent years, along with Enbridge Inc's (>> Enbridge Inc) Line 3 replacement project.

(Reporting by John Tilak in Toronto, David French in New York; additional reporting by Nia Williams in Calgary; Editing by Denny Thomas and David Gregorio)

By John Tilak and David French

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ENBRIDGE INC
11/17 ENBRIDGE : TransCanada Among 11 Canadian Oil and Gas Firms Using Tax Havens
11/16 ENBRIDGE : Notice of Issuance of a Presidential Permit to Enbridge Energy, Limit..
11/16 ENBRIDGE : Rep. Fred Upton (R-MI) News Release
11/16 ENBRIDGE ENERGY PARTNERS L P : Meet the young activists fighting Enbridge's Line..
11/16 OPINION : Enbridge Line 5 problems draw strong words from state officials. Again..
11/15 ENBRIDGE : 3 arrested at Enbridge Line 3 pipeline site in Wisconsin
11/15 ENBRIDGE : Rep. Bergman Issues Statement on Enbridge Pipeline
11/15 UPDATE : Four arrested in Superior pipeline protest
11/14 ENBRIDGE ENERGY PARTNERS L P : Pipeline safety leaders, governor respond to pipe..
11/14 ENBRIDGE : Rep. Jack Bergman (R-MI) News Release
More news
News from SeekingAlpha
11/16 ENBRIDGE : Weak Quarter But Still A Buy
11/14 10 Dividend Growth Stocks For November 2017
11/14 Union Pacific Is A Better Rail Stock Than CSX - Cramer's Lightning Round (11/..
11/13 Enbridge goes ex-dividend tomorrow
11/13 DIVIDEND SENSEI'S PORTFOLIO UPDATE 9 : You Asked For It, So Here It Is
Financials ( CAD)
Sales 2017 41 869 M
EBIT 2017 7 098 M
Net income 2017 3 100 M
Debt 2017 68 931 M
Yield 2017 5,43%
P/E ratio 2017 20,74
P/E ratio 2018 17,63
EV / Sales 2017 3,38x
EV / Sales 2018 3,34x
Capitalization 72 759 M
Chart ENBRIDGE INC
Duration : Period :
Enbridge Inc Technical Analysis Chart | ENB | CA29250N1050 | 4-Traders
Technical analysis trends ENBRIDGE INC
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 16
Average target price 60,3  CAD
Spread / Average Target 37%
EPS Revisions
Managers
NameTitle
Albert Monaco President, Chief Executive Officer & Director
Gregory L. Ebel Chairman
Leon Anthony Zupan Chief Operating Officer-Liquids Pipelines
John K. Whelen Chief Financial Officer & Executive Vice President
Cathrine L. Dyer Chief Information Officer & Vice President
Sector and Competitors
1st jan.Capitalization (M$)
ENBRIDGE INC-22.76%57 094
ENTERPRISE PRODUCTS PARTNERS L.P.-11.17%52 285
TRANSCANADA CORPORATION3.78%43 313
KINDER MORGAN INC-17.77%37 585
WILLIAMS COMPANIES-11.69%22 339
ONEOK, INC.-11.46%19 421