Weekly OFS Newsletter
News Items Ending August 7, 2018
Mergers & Aquisitions
Enbridge Inc. (TSX:ENB) closed its previously announced agreement to sell its US midstream businesses and to monetize a portion of its renewables business for a combined cash proceeds of $3.15 billion. The sales takes Enbridge’s total non-core asset sales this year to $7.5 billion. These sale transactions is aligned with its strategy to move towards being a pure pipeline and utility business and to provide the company with additional financing flexibility.
According to Bloomberg, Western Canadian Select (WCS) discount to benchmark West Texas Intermediate (WTI) widened to $30.80 last week, the biggest gap since December 2013. The decline in WCS prices is due to constraints on pipeline and rail capacity out of Western Canada, as well as maintenance plans at the US Midwest’s biggest refinery in late August. The increase in the price gap has resulted in Canadian heavy producers focusing more on drilling for lighter crude oil.