Enbridge CEO shares reasons behind $14B deal for Dominion Energy utilities (NYSE:ENB) - Seeking Alpha
Enbridge CEO shares reasons behind $14B deal for Dominion Energy utilities (NYSE:ENB) | Seeking Alpha
Enbridge CEO shares reasons behind $14B deal for Dominion Energy utilities
Enbridge Inc. (ENB),
D,
ENB:CA By:
Monica Correa, SA News Editor
27 Comments JHVEPhoto/iStock Editorial via Getty Images
Earlier this week, pipeline and energy company Enbridge (NYSE: ENB) announced that it would buy three utilities from electric services company Dominion Energy (NYSE: D) for $14B. The acquisition included $9.4B in cash and $4.6B in assumed debt.
The acquisition is a notable development in the sector as it will make Enbridge ( ENB) the largest provider of natural gas in the U.S. CEO Greg Ebel shared his thoughts behind the transaction this week in an interview on CNBC.
"There is no positive energy future, from a sustainability perspective or affordability perspective, without gas," he said. The company is seeking an "all-above approach" towards a diversified energy mix.
Enbridge ( ENB) will continue to focus on all sources of utilities, Ebel said, "as you see population growth and sustainability, and that need for consumer choice."
The deal will allow the company to expand its portfolio to a larger area that includes Ohio, North Carolina, and Utah. In addition, this acquisition would be an opportunity for Enbridge ( ENB) and its shareholders to continue to grow dividend earnings.
Related Knowledge Center: ENERGY BASICS: renewables
Renewable energy sources — once the fuel of the future, then practical in specific, narrow applications — are increasingly economic mainstream sources of power generation. Hydropower was long the mainstay of U.S. renewable electricity generation, although wind power surpassed hydro for the first time in 2019, and solar continues its rapid growth. The continued growth of wind and solar, with their fluctuations, is tied in part to improvements in storage technology: batteries.