Company: ENBSF
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000895728-25-000006
Chunk: 97

Company: ENBRIDGE INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 97
---
million (after-tax of $53 million) for the year ended December 31, 2023.The East Ohio Gas CompanyOn March 6, 2024, through a wholly-owned US subsidiary, we acquired all of the outstanding shares of capital stock of EOG for cash consideration of $5.8 billion (US$4.3 billion) (the EOG Acquisition). EOG is a public natural gas utility providing distribution, storage and transmission services to residential, commercial and industrial customers in Ohio and is regulated by the Ohio Commission. Subsequent to its acquisition, EOG conducts business as Enbridge Gas Ohio.The following table summarizes the estimated preliminary fair values that were assigned to the net assets of EOG:March 6, 20241(millions of Canadian dollars)Fair value of net assets acquired:Current assets (a)493 Property, plant and equipment (b)7,276 Long-term assets (c)1,689 Current liabilities551 Long-term debt (d)2,612 Other long-term liabilities (e)1,001 Deferred income tax liabilities1,045 Goodwill (f)1,603 Purchase price:Cash5,852 1  In the fourth quarter of 2024, immaterial adjustments were made to the EOG Acquisition purchase price allocation.a)  Current assets consist primarily of trade and other accounts receivable, prepaid expenses, regulatory assets and inventory. The fair value of trade receivables from customers approximates their carrying value of $379 million due to the short period to maturity. A provision of $3 million for expected credit loss associated with accounts receivable has been recorded.

141

b)  EOG's property, plant and equipment constitutes an integrated system of rate-regulated natural gas transmission, gathering, distribution and storage assets. For these rate-regulated assets, fair value was determined using a market participant perspective. Given the regulated nature of, and fixed return on the assets, the fair value of property, plant and equipment acquired is equal to its carrying value.c)  Long-term assets consist primarily of overfunded pension plan assets of $367 million and $1.2 billion of regulatory assets expected to be recovered from customers in future periods through rates.Pension plan assets attributable to the workforce acquired from EOG were transferred in cash to an Enbridge-sponsored pension plan based on their fair value as at March 6, 2024. The fair value of plan assets was determined using unadjusted