80367 shares were traded on Mid-Con Energy Partners, LP’s last session.
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The deal is a merger, but make no mistake here about the size differential.
The stock-for-stock deal values Spectra common at roughly $28 billion, based on the closing price of Enbridge’s common shares on September 2, Kallanish Energy calculates. According to multiple reports, this is now the going to be the largest entity in North America for infrastructure.
Spectra Energy Corp. has a market capital of 28315.83 at the moment and a profit to earnings ratio of 96.24.
Enbridge’s ADSs were trading at $40.99 last week, now they are trading at $43.65 after closing up at $43.06 after the merger.
The Relative Volume of the company is 15.94 and Average Volume (3 months) is 4.9 million.
Sell-side analyst recommendations point to a short term price target of $36.35 on the shares of Spectra Energy Corp. The average numbers of shares are traded in a security per day, during the recent 3-month period.
24/7 Wall St. has already covered who gets what here, for how much, and what some of the benefits were shown to be.
Some of the price targets were made in Canadian dollars because of Enbridge being in Canada, and the firms are mostly Canadian. IFP Advisors Inc now owns 6,695 shares of the company’s stock worth $261,000 after buying an additional 899 shares in the last quarter. Canaccord Genuity lifted their price objective on Enbridge from C$57.00 to C$60.00 and gave the company a “buy” rating in a report on Wednesday. $71 is the highest target while $50 is the lowest. RBC Capital Markets maintained the stock on September 2 with “Outperform” rating. Enbridge presently has an average rating of “Buy” and an average price target of $56.00.
This is a mega-merger for energy infrastructure in North America.
The combined company brings together numerous highest quality energy infrastructure assets in North America: liquids and gas pipelines; USA and Canadian midstream businesses; a regulated utility portfolio; and a growing renewable power generation business.
Spectra was seen taking some downgrades, but the reality is that this is quite common for a company being acquired.
The deal positions Enbridge to diversify its operations toward natural gas while protecting the company’s dividend growth.
The Company operates approximately 100% of its properties, as calculated on a barrel of oil equivalent (Boe) basis, through its affiliate, Mid-Con Energy Operating, LLC (Mid-Con Energy Operating).
The deal has no serious antitrust problems as the companies’ networks have “limited overlap”, said Bruce McDonald, an antitrust expert with Jones Day law firm.
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The transaction is subject to shareholder and certain regulatory approvals, as well as other customary conditions and is expected to close in the first quarter of next year. Moreover, we view management’s ability to provide updates regarding its MLP strategy as potentially more hard until well-after the close of the transaction. Their customer base is largely low risk, the companies said, with 93 percent of customers holding investment grade or equivalent ratings. We view the partnership’s cash flows as being less risky, on average, than those of the broader MLP space.
