Meeting energy needs: A practical and balanced approach

U.S. gas utilities acquisition: A transformative deal

In September, we announced the US$14-billion ($19-billion) acquisition of three U.S. natural gas utilities from Dominion Energy. This is a rare and unprecedented opportunity to acquire high quality, growing natural gas utilities at scale and at a historically attractive valuation.

On March 7 of this year, we completed the first of these important acquisitions—of The East Ohio Gas Company (now doing business as Enbridge Gas Ohio), following the approval by the Public Utilities Commission of Ohio.

The U.S. utilities acquisition is a transformative opportunity that establishes Enbridge as the largest (by volume) natural gas distribution company in North America.

The utilities are ‘must-have’ infrastructure for providing safe, reliable and affordable energy for some three million customers in Ohio, North Carolina, Utah, Wyoming and Idaho, and add to the four million customers we currently serve through our Ontario gas utility.

And similar to Enbridge’s existing business units, the utilities have a commitment to embedded sustainability and lower carbon initiatives in their operations.

The acquisition supports a more diversified Enbridge, lowers our already industry-leading business risk profile, elevates our existing utility-like model and underpins the longevity of our growth profile—both earnings and dividends.

We have protected our balance sheet strength by employing a flexible funding plan that includes equity prefunding and asset recycling. Enbridge is positioned to fund the remainder of the transaction using the variety of options available to us.

For shareholders, once again this acquisition aligns with our low risk value proposition: stability, strength, consistency, growth and optionality.

Governance

The Board is committed to clear and transparent disclosure and we’re engaged with the management team on how we communicate with our stakeholders. That includes taking time to listen and understand their perspectives.

This year, as part of the commitments made in our Indigenous Reconciliation Action Plan, we established our Indigenous Advisory Group, comprised of Indigenous leaders from across North America. The group meets with members of the senior leadership team four times a year and with the Board annually. We are honored to listen and learn from these leaders and consider their perspectives and interests as we make decisions that impact communities where we operate.

Our Board is made up of diverse, highly qualified and experienced business leaders who bring forward their knowledge and broad leadership perspectives to guide this Company.