Enbridge Advances U.S. Gulf Coast Oil Strategy with Increased Interest in Gray Oak Pipeline

The merger is expected to be immediately accretive to Enbridge’s distributable cash flow per share and result in an increase of approximately 400 million US dollars cash payment to the Company by the merged entity. The cash generated by the transaction will create additional financial flexibility and support the Company’s capital allocation priorities.

“We are delighted to have entered into this new agreement with P66 to optimize the combined assets and generate operational and financial synergies from both assets,” said monaco, President and Chief Executive Officer of Enbridge. “This is another example of our continued focus on optimizing our portfolio and creating value for our shareholders, while strengthening our already strong export position on the U.S. Gulf Coast. We are looking forward to continuing our strong partnership with P66.”

The Gray Oak Pipeline, together with Enbridge’s Ingleside Energy Center (EIEC), offers a state-of-the-art solution for delivering low-cost, long-lived Permian Basin oil to the local Gulf Coast and global export markets. The EIEC currently loads nearly 30% of North American oil exports. Through 2030, the company expects Permian oil supply to increase by about two million barrels per day, improving Gray Oak utilization and driving increased oil exports off the Gulf Coast. The continued integration of Gray Oak and EIEC should support the development of new business solutions and future growth potential, unlocking additional value for Enbridge customers.

Enbridge intends to expand its solar self-power strategy by working with the other owners of Gray Oak to develop solar installations along the Gray Oak right-of-way in support of net-zero emissions goals of the company and those of its customers.

Citi acted as financial advisor to Enbridge and Vinson & Elkins acted as legal advisor.

Forward-looking information

Forward-looking information, or forward-looking statements, have been included in this press release to provide information about Enbridge and its subsidiaries and affiliates, including management’s assessment of the future plans and operations of Enbridge and its subsidiaries and affiliated companies. This information may not be suitable for other purposes. Forward-looking statements are generally identified by words such as “anticipate”, “expect”, “project”, “estimate”, “expect”, “plan”, “have the ‘intent’, ”target”, ”believe”, ‘likely’ and similar words suggesting future results or statements about a prospect. Forward-looking information or statements included or incorporated by reference herein include, but are not limited to, statements regarding the joint venture merger transaction with Phillips 66 (the “Transaction”) and related matters, including the expected growth, operating conditions and financial synergies and other benefits of the Transaction; the projected supply of Permian oil; expected oil exports from the Gulf Coast; the intended use of gray oak; the integration of Gray Oak and Enbridge Ingleside Energy Center; future growth opportunities; solar self-powering strategy; and net zero emissions targets.

Although Enbridge believes these forward-looking statements are reasonable based on the information available as of the date these statements are made and the processes used to prepare the information, these statements are not guarantees of future performance and readers are cautioned not to place undue reliance on forward-looking statements. statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by these statements. Material assumptions include assumptions about the following: the energy transition, including its drivers and pace; the COVID-19 pandemic, its duration and impact; global economic growth and trade; expected supply and demand for crude oil, natural gas, natural gas liquids (“NGLs”), liquefied natural gas (“LNGs”) and renewable energy; crude oil, natural gas, NGLs, LNG and renewable energy prices; the intended use of our assets; anticipated cost savings; exchange rate; inflation; interest rate; availability and price of labor and construction materials; the stability of our supply chain; operational reliability and performance; customer, regulatory and stakeholder support and approvals; the planned dates of construction and commissioning; Weather report; the announced and potential acquisition, divestiture and other corporate transactions and plans, and the timing and impact thereof, including the Transaction; expectations regarding the ability of our partners to complete and finance the proposed transactions and projects, including the Transaction; government legislation; dispute; credit ratings; hedging program; expected EBITDA and expected adjusted EBITDA; expected profit/(loss) and adjusted profit/(loss); expected profit/(loss) or adjusted profit/(loss) per share; expected future cash flows and expected future distributable cash flow (“DCF”) and DCF per share; estimated future dividends; financial strength and flexibility; debt and equity market conditions; and general economic and competitive conditions. Assumptions regarding the expected supply and demand for crude oil, natural gas, NGL, LNG and renewable energy and the prices of these raw materials are important and underlie all forward-looking statements, as they may have affect current and future levels of demand for the company’s services. Similarly, currency exchange rates, inflation, interest rates and the COVID-19 pandemic impact the economies and business environments in which the Company operates and may impact levels of demand for Company services and the cost of inputs and are therefore inherent in all futures contracts. research statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on any forward-looking statement cannot be determined with certainty, particularly with respect to expected DCF and DCF per share amounts.

Enbridge’s forward-looking statements are subject to risks and uncertainties regarding the realization of the anticipated benefits and synergies of the Projects and Transactions, including the Transaction, the successful execution of our strategic priorities, operating performance, Company dividends, regulatory parameters, regulatory changes applicable to the Company’s business, litigation, acquisitions and divestitures and other transactions, project approval and support, right-of-way renewals, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, political decisions, exchange rates, interest rates, commodity prices, commodity supply and demand, and the coronavirus pandemic. COVID-19, including but not limited to the risks and uncertainties discussed herein and t in other documents filed by the Company with Canadian and US securities authorities. The impact of any risk, uncertainty or factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent, and Enbridge’s future course of action depends on the management of all information available at the relevant time. Except to the extent required by applicable law, Enbridge undertakes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on behalf of the Company are expressly qualified in their entirety by these cautionary statements.

About Enbridge

At Enbridge, we safely connect millions of people to the energy they depend on every day, powering quality of life through our North American natural gas, oil or renewable energy grids and wind portfolio. growing offshore in Europe. We invest in modern power distribution infrastructure to maintain access to safe and affordable energy and we draw on two decades of experience in renewable energy to advance new technologies including wind and solar power , hydrogen, renewable natural gas and carbon capture and storage. We are committed to reducing the carbon footprint of the energy we supply and to achieving net zero greenhouse gas emissions by 2050.

Based at Calgary, ABthe common shares of Enbridge trade under the symbol ENB on the Toronto (TSX) and New York stock exchanges (NYSE). To learn more, visit us at Enbridge.com.

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SOURCEEnbridge Inc.

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