After market close today, Canadian oil & gas midstream company Enbridge (TSE:ENB) (NYSE:ENB) announced that it will acquire three utility companies from Dominion Energy (NYSE:D). This US$14 billion deal, which encompasses a $9.4 billion cash payment and $4.6 billion of absorbed debt, will establish Enbridge as North America’s premier natural gas supplier and double its gas distribution business, according to the press release.
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To fund a part of this acquisition, Enbridge announced a bought-deal offering of common shares totaling C$4 billion at a price of C$44.70 per share. The news has resulted in ENB stock falling by over 6% in after-hours trading.
Nonetheless, Enbridge’s CEO, Greg Ebel, underscored the significance of this acquisition, highlighting the vital role natural gas will continue to play in a secure and dependable energy transition. Ebel referred to the assets as “must-have” infrastructure, indispensable in facilitating safe, affordable, and reliable energy solutions.
It’s a strategic move for Enbridge, as it brings a more balanced asset mix, shifting closer to a 50-50 split between natural gas & renewables and crude oil & liquids. The transaction, expected to close in 2024, will extend Enbridge’s reach to seven million customers across various states.
Is ENB Stock a Buy, According to Analysts?
According to analysts, ENB stock comes in as a Moderate Buy based on three Buys and six Holds assigned in the past three months. The average ENB stock price target of C$55.90 implies 16.1% upside potential.

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