CALGARY, ALBERTA--Enbridge today announced that it has agreed to
revised terms for the transfer of the Midcoast, Northeast Texas
and South Texas systems to Enbridge Energy Partners, L.P. (the
"Partnership"). The price of the transfer will be reduced from
US$929 million to US$820 million, plus adjustments for working
capital and other items.
The terms were revised based on a review of the performance of the
Northeast Texas system following the release of second quarter
2002 results and after consideration of current market conditions.
The transfer price of US$820 million is expected to result in a
book loss of approximately Cdn$76 million, which would be
recognized in the third quarter of 2002.
"The transfer of the Midcoast and Northeast Texas assets to the
Partnership is consistent with our original intent and our plans
to develop Enbridge's footprint in the United States," said
Patrick D. Daniel, President and Chief Executive Officer. "The
transfer proceeds will enhance our flexibility to capitalize on
the many other opportunities available to us in this market. At
the same time, the transfer advances the Partnership's strategy
with respect to geographic and commodity diversification and its
goal to increase distributions to unitholders. We are confident
that these assets will generate stable and growing cash flows for
the Partnership and provide opportunities to expand the existing
platform."
The closing of the transfer, which is expected to occur during the
fourth quarter, remains subject to the Partnership obtaining
necessary financing and other conditions.
Enbridge Inc. is a leader in energy transportation and
distribution in North America and internationally. As a
transporter of energy, Enbridge operates, in Canada and the U.S.,
the world's longest crude oil and liquids transportation system.
The Company also is involved in international energy projects and
has a growing involvement in the natural gas transmission and
midstream businesses. As a distributor of energy, Enbridge owns
and operates Canada's largest natural gas distribution company,
which provides distribution services in Ontario, Quebec and New
York State; and is developing a gas distribution system for the
Province of New Brunswick. Enbridge employs approximately 4,000
people, primarily in Canada, the U.S. and South America.
Enbridge's common shares trade on the Toronto Stock Exchange in
Canada and on the New York Stock Exchange in the U.S. under the
symbol ENB. Information about Enbridge is available on the
Company's web site at www.enbridge.com.
When used in this news release, the words "anticipate", "expect",
"project", "believe", "estimate", "forecast" and similar
expressions are intended to identify forward-looking statements,
which include statements relating to pending and proposed
projects. Such statements are subject to certain risks,
uncertainties and assumptions pertaining to operating performance,
regulatory parameters, weather and economic conditions and, in the
case of pending and proposed projects, risks relating to design
and construction, regulatory processes, obtaining financing and
performance of other parties, including partners, contractors and
suppliers.
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