On December 13, 2023, Enbridge Inc. completed a deal to sell its 50.0% interest in Alliance Pipeline and 42.7% interest in Aux Sable to Pembina Pipeline Corporation for $3.1 billion. This sum includes approximately $0.3 billion of non-recourse debt at Alliance, with adjustments typical for such closings. Alliance Pipeline transports natural gas rich in liquids from Northeast B.C., Northwest Alberta, and the Bakken region to Chicago. Aux Sable manages NGL extraction and fractionation facilities in both Canada and the U.S., maintaining extraction rights on Alliance.

The transaction's valuation, about 11 times Alliance's projected 2024 EBITDA and 7 times for Aux Sable, is considered attractive and aligns with the valuations of other commodity-exposed businesses. Pat Murray, Enbridge’s EVP and Chief Financial Officer, highlighted the divestiture as a continuation of their successful capital recycling program, which has raised approximately $14 billion since 2018.

Pembina, already partnered with Alliance and the current operator of Aux Sable, will assume control of Alliance. The sale is a key part of Enbridge's financing strategy, with proceeds earmarked for strategic U.S. gas utilities acquisitions and debt reduction.

This transaction, effective January 1, 2024, and expected to close in the first half of 2024, is pending regulatory approvals. Enbridge's 2024 financial outlook and growth predictions through 2025 remain unchanged.

National Bank Financial and Scotiabank served as financial advisors, while Torys LLP was the legal advisor to Enbridge for this transaction.