Sep 28, 2022
Enbridge selling Alberta pipeline stakes to Indigenous groups for $1.12B
By Noah Zivitz
Alberta Indigenous groups purchase $1.12B in energy assets
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Enbridge Inc. announced the sale of a minority stake in seven of its Alberta pipelines to almost two dozen Indigenous communities in what's being described as the largest transaction of its nature to date in North America.
The company said 23 First Nations and Métis communities will pay $1.12 billion for an 11.57 per cent interest in seven Enbridge pipelines in Alberta's oil-rich Athabasca region.
A new entity dubbed Athabasca Indigenous Investments will oversee the investment, according to the press release.
"On behalf of the Indigenous partners, we are proud to become equity owners in these high-quality assets which contribute to North American energy supply and security," said Athabasca Indigenous Investments President Justin Bourque in the release.
In a report to clients, RBC Capital Markets analyst Maurice Choy said the size of the deal isn’t “particularly material” for Enbridge. However, he estimated it will help the company’s debt metrics.
In the release, Enbridge president and Chief Executive Officer Al Monaco said the transaction “fully aligns with our priority to recycle capital at attractive valuations, which can be used to fund numerous growth opportunities within our conventional and low carbon platforms."
