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

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 CEST
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
04/21 ENBRIDGE INC. : to Host a Joint Webcast with Enbridge Income Fund Holdings Inc.,..
04/21 ENBRIDGE INC. : to Hold Annual Meeting of Shareholders on May 11, 2017
04/21 ENBRIDGE : to Host a Joint Webcast with Enbridge Income Fund Holdings Inc., Enbr..
04/20 ENBRIDGE : Rambiz topside duty at Rampion
04/17 TSX notches biggest gain in six weeks as banks, miners gain
04/17 ENBRIDGE : A look at Enbridge's next big pipeline project, the Line 3 Replacemen..
04/14 ENBRIDGE : PROPOSED PIPELINE Group seeking support
04/14 ENBRIDGE : tax dispute could hit Minnesota counties with big bill
04/14 ENBRIDGE ENERGY PARTNERS L P : FERC Issues Letter Involving Enbridge Energy of H..
04/11 TAKING A CLOSER LOOK : Activists gather to inspect Enbridge pipelines in Cass La..
More news
Sector news : Oil & Gas Transportation Services - NEC
04/12 Pipeline operator NuStar to buy Navigator Energy for $1.48 billion
04/11 Pipeline operator NuStar to buy Navigator Energy for $1.48 billion
04/06 TSX nudges higher ahead of U.S.-China meeting, jobs data
04/06 Sunoco to sell 1,110 U.S. stores to 7-Eleven operator for $3.3 billion
04/06 Sunoco to sell 1,110 U.S. stores to 7-Eleven operator for $3.3 billion
More sector news : Oil & Gas Transportation Services - NEC
News from SeekingAlpha
04/21 Growing Demand For Cleaner Electricity Will Spark The Next Natural Gas Boom
04/20 ENBRIDGE VS. ENERGY TRANSFER PARTNER : A Clear Winner Materializes
04/20 What To Make Of Kinder Morgan's Earnings Miss
04/19 A Retirement Portfolio With Quality Over Quantity
04/16 MLPS : Are We There Yet?
Advertisement
Financials ( CAD)
Sales 2017 44 355 M
EBIT 2017 7 666 M
Net income 2017 3 237 M
Debt 2017 70 239 M
Yield 2017 4,11%
P/E ratio 2017 22,99
P/E ratio 2018 20,82
EV / Sales 2017 3,67x
EV / Sales 2018 3,42x
Capitalization 92 593 M
More Financials
Chart ENBRIDGE INC
Duration : Period :
Enbridge Inc Technical Analysis Chart | ENB | CA29250N1050 | 4-Traders
Full-screen chart
Technical analysis trends ENBRIDGE INC
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 16
Average target price 63,7  CAD
Spread / Average Target 12%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Albert Monaco President & Chief Executive Officer
Gregory L. Ebel Chairman
Leon Anthony Zupan Chief Operating Officer-Liquids Pipelines
John K. Whelen Chief Financial Officer & Executive Vice President
C. L Dyer Chief Information Officer & Vice President
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
ENBRIDGE INC-0.60%68 621
ENTERPRISE PRODUCTS PA..2.26%58 671
KINDER MORGAN INC-2.12%45 252
TRANSCANADA CORPORATIO..4.14%40 704
WILLIAMS COMPANIES INC-3.63%24 795
PLAINS ALL AMERICAN PI..-7.37%20 192
More Results