Enbridge Inc (ENB) News & EventsENBNews & EventsEnbridge Inc

Enbridge Forms C$2.7B Joint Venture with KKR

Enbridge (ENB) has entered into a definitive agreement with KKR (KKR) to form a new joint venture, subject to the satisfaction of customary closing conditions, led by capital accounts advised by KKR, in collaboration with funds and affiliates managed by Apollo. The joint venture will fund the previously sanctioned Aspen Point and Sunrise Expansion Programs of the Westcoast natural gas pipeline system. The Expansions have regulatory approval and are commercially underpinned by long-term take-or-pay contracts. Under the agreement, KKR and Apollo will invest approximately C$2.7B to fund the Expansions, including C$0.7B of cash to Enbridge at closing, in exchange for an indirect, cumulative 29% interest in the aggregate Westcoast system upon Sunrise entering service. The investors will begin receiving distributions as each expansion project enters service. The Aspen Point Expansion Program is expected to enter service in 2026, followed by the Sunrise Expansion Program, in late 2028. Enbridge will retain majority ownership and operational control over the Westcoast system, including responsibility for executing the Expansions. Enbridge also has the option to repurchase the investors' interest in the joint venture at any time between the seventh and fourteenth year following close. The transaction is not material to Enbridge's 2026 financial guidance or medium-term financial outlook.

Enbridge Acquires Salt Creek Midstream's Crude Oil Gathering Business for $600M

Enbridge announced that, through a wholly-owned subsidiary, it has entered into a definitive agreement to acquire Salt Creek Midstream's crude oil gathering business, comprising 100% of the Orla and Wink North systems and a 50% interest in the Delaware Crossing system for cash consideration of $600M. The business includes approximately 500 miles of crude oil gathering infrastructure located in the core of the Delaware Basin, one of the most prolific and competitive crude oil producing regions in North America. The system serves a diversified group of more than 20 producers and is supported by approximately 320,000 net dedicated acres under long-term commercial agreements. With an average remaining contract life of approximately 10 years, the assets provide stable, long-term cash flows and a durable foundation for future growth. The Orla, Wink North and DCX gathering systems have a combined 420,000 barrels per day of throughput capacity and 350,000 barrels of storage capacity and can deliver into multiple long-haul Permian crude egress pipelines including Enbridge's majority-owned Gray Oak Pipeline. The acquisition will provide a direct strategic connection between crude oil production in the Permian Basin to export at Enbridge Ingleside Energy Center, North America's largest crude export terminal. The transaction is expected to close later in 2026, subject to the satisfaction of customary closing conditions, including clearance from the Federal Trade Commission under Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Enbridge Transaction Expected to Immediately Boost Cash Flow Per Share

Enbridge expects the transaction to be immediately accretive to distributable cash flow per share and earnings per share and the company's 2026 financial guidance remains unchanged by this announcement.