SUN - Pembina Signs Deal to Acquire 50% Stake in Whitecap | Benzinga
Pembina Pipeline Corporation (NYSE: PBA), an energy transportation and midstream services provider, has entered into a purchase and sale agreement through its joint venture entity, Pembina Gas Infrastructure Inc. ("PGI"), with Whitecap Resources Inc., a Calgary-based oil and gas exploration and production company.
This strategic collaboration will see PGI acquiring a 50% working interest in Whitecap's 15-07 Kaybob Complex in Alberta and supporting the infrastructure development of the company's Lator growth area. The gross proceeds related to this transaction amount to C$420 million, with C$252 million net to Pembina.
Key Transaction Details
Acquisition of Kaybob Complex: PGI will acquire a 50% working interest in the Kaybob Complex, which includes a natural gas processing capacity of 165 million cubic feet per day and a condensate stabilization capacity of 15,000 barrels per day.
Despite the acquisition, Whitecap will retain operatorship of the assets. A long-term take-or-pay agreement for PGI's capacity in the Kaybob Complex has been secured with Whitecap, which will a dedicated area for all volumes produced by the company in the region.
Lator Area Development: PGI has committed to funding the development of Whitecap's Lator area, including a new battery and gathering lateral, referred to as the Lator Infrastructure. PGI will own this infrastructure and in return Whitecap has agreed to long-term take-or-pay agreements, which will grant the company priority access to the Lator Infrastructure. This development also includes an area of dedication to PGI for all volumes produced by Whitecap from the Lator area.
Additional Agreements and Facilities: Whitecap has also entered into further long-term take-or-pay contracts with PGI at the Musreau gas plant within the Cutbank Complex and the K3 gas plant. These contracts enhance the volume capture potential ...