Last year, Enbridge identified non-core assets worth US$8 billion that it could sell to reduce its debt load.
Enbridge accumulated more debt in merger with Spectra Energy in February 2017
The Globe and Mail reports that Enbridge plans to divest billions of dollars worth of assets this year in an effort to shrink its long-term debt pile which grew after the company merged with Spectra Energy last year.
The $8 billion in assets the Calgary-based company is looking to sell is more than double it’s initial planned divestment plan for the period, according to Globe and Mail sources.
In November, Enbridge announced it would divest about $3 billion in non-core assets due to pressure from shareholders and rating agencies over the company’s debt.
On Feb. 27, 2017, the $37-billion, all-stock deal between Enbridge and Houston-based Spectra energy closed. Less than a month following the close, the company laid off about 1,000 employees. Analysts said the layoffs were tied to the merger.
Last year, Enbridge identified non-core assets valued at about $10 billion that it could sell to cut its debt. Among these assets are about $2 billion worth of renewable energy assets along with approximately $4 billion in midstream operations.
Some private equity investors looking to benefit from the low-interest rate environment have already shown interest in the renewable energy assets.
As well, Canada’s top pipeline operating company is hoping to benefit from an improved appetite for petroleum assets due to rising oil prices.