Canadian energy infrastructure group Enbridge acquires various oil export terminals and oil pipelines from Moda Midstream Operating (Moda) for USD 3 billion. The purchase price corresponds to approximately 8x projected forward EBITDA.
Moda is a liquids terminaling and logistics company that provides independent terminal, storage and distribution solutions to refiners. Based on the acquisition, Enbridge intends to significantly enhance its U.S. Gulf Coast export strategy and connectivity to low-cost and long-lived reserves in the Permian and Eagle Ford basins.
The transaction consists of various components. Central to this is the full acquisition of the Ingleside Energy Center near Corpus Christi (Texas/USA) as North America’s largest Crude Export Terminal. In addition, Enbridge acquires a 20% stake in the Cactus II pipeline, a 100% stake in the Viola Pipeline and a 100% stake in the Taft Terminal. Together with the Ingleside Energy Center, these pipelines and storage assets provide a fully integrated Crude Export Platform. Closing is expected in Q4 2021.