Lakehead Pipe Line Partners to Acquire North Dakota System From Enbridge Inc

abarrelfullabarrelfull wrote on 16 Jan 2014 12:11
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3/8/2001

Lakehead Pipe Line Partners, L.P. (NYSE: LHP) and Enbridge Inc. (TSE: ENB) today announced that their respective Boards of Directors approved the acquisition of 100% of Enbridge Pipelines (North Dakota), Enbridge Inc.'s North Dakota pipeline system by Lakehead Pipe Line Partners, L.P., for cash of $33 million. The transaction is anticipated to close on May 1, 2001, subject to regulatory approval and standard closing conditions.

Mr. J. Richard Bird, President of the General Partner, said, "Purchase of the North Dakota feeder system from Enbridge represents a first step in our recently adopted strategy focused on accelerating growth in cash distributions through acquisition of energy transportation assets. It is also consistent with our objective to diversify the Partnership operations geographically and to other complementary businesses, including feeder systems, terminals and natural gas assets." Mr. Bird added, "We are continuing to move forward with the new strategic plan, including establishment of a Houston business development office, examination of further potential purchases of Enbridge assets and active pursuit of third-party acquisitions."

Lakehead estimates indicate that the North Dakota System will annually contribute earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $5.5 million and net income of approximately $2.5 million, over the next few years. The transaction is expected to be cash flow accretive by an amount of approximately $0.03 per common unit, beginning in 2001.

The North Dakota System comprises 330 miles of crude oil gathering lines connected to a 620 mile trunk line and has an operating capacity of 84,000 barrels per day. The System gathers crude oil from the Williston Basin in North Dakota and Montana and receives Canadian crude oil via an interconnect with Enbridge's gathering system in Saskatchewan, for delivery primarily to the Lakehead System at Clearbrook, Minn. In 2000, average system deliveries were 67,000 barrels per day which generated operating revenue of $11.7 million.

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