enbridge-agrees-with-encap-on-a-$3-billion-deal-to-acquire-crude-export-terminal-ingleside-energy-center

Enbridge agrees with EnCap on a $3 billion deal to acquire crude export terminal Ingleside Energy Center

Enbridge Inc.
ENB,
0.53%

ENB,
0.32%

announced Tuesday an agreement with EnCap Flatrock Midstream to buy Moda Midstream Operating LLC in a cash deal valued at $3.0 billion. Enbridge expects the deal to “immediately and strongly” add to cash flow and earning to share upon closing, which is expected to occur in the fourth quarter of 2021. Under terms of the deal, Enbridge will acquire a 100% interest in the Ingleside Energy Center near Corpus Christi, Texas, which Enbridge said is North America’s largest crude export terminal. Enbridge said it will also acquire a 20% interest in the Cactus II Pipeline, a 100% interest in the Viola pipeline and a 100% interest in the Taft Terminal. “With close proximity to world-class Permian reserves, and with cost effective and efficient export infrastructure, our new Enbridge Ingleside terminal will be critical to capitalizing on North America’s energy advantage,” said Enbridge Chief Executive Al Monaco. Enbridge’s stock, which edged up 0.1% in premarket trading, has rallied 25.1% year to date, while the SPDR Energy Select Sector ETF
XLE,
-0.57%

has run up 28.3% and the S&P 500
SPX,
-0.03%

has advanced 20.8%.