07.26
Enbridge and EEP announced a joint funding agreement whereby Enbridge
will effectively fund two-thirds of the US$1.2 billion capital cost of Alberta
Clipper’s U.S. segment. The arrangement allows EEP to avoid a large equity
issue, which in current market conditions would have been dilutive.
Enbridge’s 2008-2012 funding profile now anticipates an equity surplus of
$1.5 billion through 2012 (compared with $1.9 billion prior to incremental
U.S. Alberta Clipper funding) and a new debt funding requirement through
2012 of $4.0 billion (compared with $3.5 billion previously).
Incremental earnings from direct ownership in the U.S. segment of Alberta Clipper
is offset by lower earnings from Enbridge’s 27% stake in EEP and lower general
partner incentive cash distributions
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