December 21, 2018 [Houston Chronicle] - Pipeline and storage terminal company Enbridge has simplified its corporate structure after shareholders of two of its publicly traded subsidiaries voted to merge with the midstream giant.
Stockholders of Enbridge Energy Partners and Enbridge Energy Management met at the Hilton Houston Post Oak on Monday morning where they voted in favor of two merger and acquisition deals that ended with both companies being folded into Calgary-based Enbridge Inc.
Prior to the merger, the three companies were traded on the New York Stock Exchange under different stock ticker symbols. Enbridge is traded under ENB, while Enbridge Energy Partners was traded under EEP, and Enbridge Energy Management was traded under EEQ.
With the two stockholder votes now complete, Enbridge Energy Partners and Enbridge Energy Management have ceased to be their own companies and their stock will no longer be traded.
Under the merger deals, Enbridge Energy Partners and Enbridge Energy Management stockholders will receive 0.335 shares of ENB stock for each share of EEP and EEQ stock.
“I encourage all of you to invest some time to learn about Enbridge Inc.,” Enbridge Energy Management President Mark Maki told stockholders and investors at the meeting. “In my personal view, Enbridge’s investment proposition is powerful.“
The two merger votes came on the same day that Enbridge announced closing a $3.3 billion deal to buy Spectra Energy Partners, which was a subsidiary of the Houston pipeline company Spectra Energy Corp., which Enbridge acquired last year. Enbridge received a majority share in Spectra Energy Partners as part of the earlier deal.
It also comes less than a week after Enbridge bought a 26.25 percent stake in the Gray Oak Pipeline, a project to move crude oil from the Permian Basin and Eagle Ford Shale to four destinations along the Texas Gulf Coast.
Founded in 1991, Enbridge Energy Partners was set up as a special category of companies known as master limited partnerships, or MLPs, which hold assets and provide tax benefits to the parent company.
Federal tax reform and shifting preferences among investors have led many companies in the midstream sector to move their master limited partnerships back into their parent companies. More than a dozen MLPs specializing in pipelines and storage terminals for the oil and natural gas industry have been folded back into their parent companies over the past two years.
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