Enbridge To Buy Spectra Energy Partners -- August 24, 2018

This seems like "old news" or "predictable news."

Click here for previous posts that mentioned "Spectra Energy."

Today's "news", from MarketWatch, Enbridge to buy Spectra Energy Partners in a $3.3 billion stock deal.

Enbridge Inc. ENB, said today it will buy the pipeline master limited partnership Spectra Energy Partners LB SEP, in a stock deal valued at $3.3 billion.

Under terms of the deal, Enbridge will exchange 1.111 of its common shares for each Spectra share.

Based on Thursday's stock closing prices, that values Spectra shares at $40.00 each, or a 5.6% premium. The deal is expected to close in the fourth quarter of 2018.

Flashback, back to 2010: See this note from July 19, 2010, comparing Spectra and MDU:

Spectra Buys More Storage 

Now, today same song, different verse: Spectra Energy will buy Bobcat Gas Storage from two partners, including GE Energy Financial Services, for $540 million. In addition to the purchase price, Spectra will invest another $400 - $450 million to fully develop the facility by the end of 2015. The facility with 46 bcf of gas storage capacity is located in southeastern Louisiana.

This will bring Spectra's total storage capacity to about 340 bcf.

Spectra vs MDU

MDU's total storage capacity is about 353 bcf. (I do not know if this includes the expansion of the Baker storage facility. I assume it does.)

My understanding is that Spectra is a pure-play natural gas production and distribution company, compared to MDU in which natural gas production and distribution is but one division.

The market cap for Spectra is: $14 billion
The market cap for MDU is: $3.6 billion (that was in 2010; today -- 2018 -- MDU's market cap is $5.8 billion).