Brookfield Infrastructure Partners Unloads NGPL Stake: A $1.7 Billion Windfall!

Ladies and gentlemen, buckle up! brookfield infrastructure Partners L.P. (BIP) just pulled off a massive deal, selling its remaining 25% stake in the U.S. gas pipeline for a staggering $1.7 billion! This isn’t just a sale; it’s a strategic masterstroke that’s going to send shockwaves through the infrastructure sector. Let’s dive in and see what this means for investors like you!



First things first, this sale is a complete and successful exit for bip. They’ve crystalized an 18% IRR and a 3x multiple of capital on their investment since 2015. That’s right, folks! An 18% IRR and a 3x multiple—this is the kind of return that makes investors jump out of their seats and shout, “BOO-YAH!”

But wait, there’s more! This transaction, combined with the financing completed in advance of the sale, has generated total proceeds of over $900 million in the last 18 months. The net proceeds received from the sale represent a 1.8x multiple of their current carrying value. This is a no-brainer, folks! BIP has shown that they know how to play the game and win big.

Now, let’s talk about the broader picture. This sale is part of BIP’s asset monetization goal of $5 to $6 billion over the next two years. Sam Pollock, the CEO of Brookfield Infrastructure, said, “Securing these two transactions adds to the excellent start we have had to the year. We have now locked in over $700 million in proceeds from asset sales since the beginning of the year, which is expected to increase to nearly $900 million shortly following the sell down of the additional stake in our European data center portfolio.” This is a clear indication that BIP is on a roll, and they’re not slowing down anytime soon.



But why is this such a big deal? Well, for starters, BIP has a proven track record of executing business plans to create value primarily through organic growth. This includes pipeline expansions into key regions to connect natural gas supply to utility providers and LNG export facilities, as well as upgrades across the existing pipeline network to increase capacity. This is the kind of growth that investors dream of!

Moreover, BIP has engaged CIBC Capital Markets and RBC Capital Markets as joint financial advisors in the transaction and Vinson & Elkins LLP as legal advisor. This is a powerhouse team that knows how to get things done. They’re not messing around, folks!

Now, let’s talk about the future. BIP is not just sitting on their laurels. They’re progressing the sale of an additional 60% stake in their European data center portfolio, which they hope to sign in the coming months. This is part of their stabilized data center monetization strategy, and it’s going to be a game-changer.

So, what does this mean for you, the investor? It means that BIP is a company that knows how to make money and make it big. They’re not afraid to take risks, and they’re not afraid to cash in on their successes. This is the kind of company that you want to be a part of.

In conclusion, the sale of BIP’s remaining stake in the U.S. gas pipeline is a massive win for the company and its investors. It’s a testament to their strategic vision, their execution prowess, and their ability to create value. So, if you’re not already invested in BIP, what are you waiting for? This is a no-brainer, folks! Get in on the action and watch your portfolio soar!