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Dominion and Enbridge Complete $6.6 Billion Utility Transaction
03/20/2024
Enbridge Inc. has completed a $6.6 billion purchase of The East Ohio Gas Co., an Ohio natural gas company, from Dominion Energy. This acquisition is part of a larger $14 billion merger and acquisition deal previously announced by the two companies. The East Ohio Gas Co. will operate under the new name Enbridge Gas Ohio (EOG) and become part of Enbridge's Gas Distribution and Storage Business Unit, including taking on some debt as mentioned by Dominion.
EOG is set to provide over 40% of the yearly EBITDA expected from the three gas utilities Enbridge is buying from Dominion. The purchases of Questar Gas Co., Wexpro companies, and the Public Service Company of North Carolina from Dominion are still in progress, with Enbridge planning to finalize these in 2024 after getting the necessary regulatory approvals.
EOG serves over 1.2 million customers in Ohio alone, boasting a significant infrastructure network that includes over 22,000 miles of pipelines for transmission, gathering, and distribution, as well as underground storage and connections to several major interstate pipelines and natural gas producers.
Adding a big gas company from Ohio to Enbridge's business is a smart move. Michele Harradence, who leads Enbridge's gas distribution and storage, says this helps the company grow and keep making steady money. Gas companies are important because they provide safe and affordable energy that people need for a long time.
This new addition will help Enbridge make more money steadily until the end of the decade. It's a good investment that matches their plan to pay regular dividends to their shareholders. Also, with this purchase, Enbridge now works in all its business areas in Ohio, which means more chances to do well and make money.
Dominion Energy, with its headquarters in Richmond, Virginia, serves about 6 million customers across 15 states with electricity and natural gas. The company has set a commitment to achieve Net Zero emissions by 2050.
About Enbridge
Enbridge, based in Calgary, Canada, manages 30% of North America's crude oil transportation and nearly 20% of the US's natural gas, with the world's most complex liquid transportation system extending 17,809 miles. Following a significant acquisition in September 2023, it became North America's largest gas utility by volume. A pioneer in renewable energy, Enbridge is committed to achieving net-zero greenhouse emissions by 2050, focusing on sustainability and reducing emissions intensity by 35% by 2030. Its gas transmission network, vital for LNG exports, moves about 24.6 billion cubic feet of natural gas daily across key markets in North America.
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Pembina (PBA) to Acquire Enbridge's Joint Ventures for $2.3 Billion - C$3.1 Billion
Pembina Pipeline Corporation PBA, a well-known player in the Canadian midstream sector, recently announced its plan to acquire Enbridge Inc.'s remaining shares in the Alliance Pipeline, Aux Sable pipelines, and NRGreen joint ventures. The deal, valued at C$3.1 billion or US$2.3 billion, marks a key step for Pembina in asserting its leadership in North America's natural gas transportation sector. This strategic acquisition is expected to considerably boost Pembina's growth and profitability in the coming years.
Tenaris Acquires Mattr's Pipe Coating Division for $166 Million
Tenaris has successfully finalized the purchase of Mattr's Pipe Coating Division, previously known as Shawcor, for a total of $182.6 million. This figure includes working capital and $16.9 million in cash. Announced back on August 14, 2023, the acquisition has now received the green light from regulatory bodies in both Mexico and Norway.
EOG Resources is pushing boundaries in Ohio's Utica oil play and now drilling on the Sable pad, also located in Noble County. This site features the 3.7-mile lateral currently under construction. The company's first multi-well pads in the area Timberwolf and Xavier have each produced over 200,000 barrels of oil since their inception—Timberwolf in August and Xavier in October. A third site, the four-well White Rhino pad in Noble County, is also showing promising early results, according to Keith Trasko, EOG’s Senior Vice President of Exploration and Production, who noted the wells are performing as expected in their initial weeks.
Exxon Mobil recently completed its acquisition of Pioneer Natural Resources, a deal worth about $60 billion. This transaction, which is the biggest in shale oil history, significantly changes the competitive landscape in the Permian Basin, a major oil field. This marks Exxon Mobil's largest deal since its $84.4 billion merger with Mobil Corp. in 1999. With this acquisition, Exxon Mobil's production in the Permian Basin will double to 1.3 million barrels of oil equivalent per day.
OXY has been the leader in Permian Basin production for the past five years. Currently, the Houston-based oil and gas company is deepening its presence in the basin with a $12 billion acquisition of CrownRock, adding over 94,000 acres in the Midland Basin and increasing its oil output by about 170,000 barrels per day. Occidental announced an increase in its proved reserves to 4.0 billion barrels of oil equivalent by the end of December 2023, up from 3.8 billion the previous year. Activities in the Permian largely fueled this rise. Occidental added approximately 303 million barrels through infill development projects as well as new discoveries and the further development of existing fields brought in another 153 million barrels.