Tidewater acquires Canadian gas processing assets from AltaGas

Tidewater Midstream has entered into an agreement with AltaGas to acquire 100% of AltaGas' working interest in select Deep Basin and central Alberta gas processing facilities and related infrastructure, the majority of which are located in Tidewater's core West Pembina region.

Under the terms of the acquisition, Tidewater will issue to AltaGas approximately 43.7 million Tidewater common shares and pay AltaGas $30 million in cash, funded through cash on hand and availability under Tidewater's existing corporate credit facility.

"The acquisition is consistent with Tidewater's strategy to capitalize on Canadian natural gas liquids (NGLs) market opportunities within the Deep Basin," said Joel MacLeod, CEO of Tidewater.

"The acquisition of strategic midstream infrastructure allows Tidewater to capture the value of infrastructure connectivity and offer additional options to producers," he continued. "The majority of the earnings from the acquired assets are derived from our strategic Deep Basin core area and will be highly synergistic with our existing Brazeau River Complex assets, allowing Tidewater the opportunity to optimize the currently underutilized plants being acquired and further build out our natural gas and NGL network."

Tidewater and AltaGas said they are also currently discussing other strategic opportunities involving NGLs and natural gas.

"Moving forward, AltaGas and Tidewater have agreed to work together to identify additional opportunities that could enhance value for each company's respective producer customers and shareholders," said David Cornhill, CEO of AltaGas.

Acquisition Overview

The assets include working interests in select Deep Basin and central Alberta gas processing facilities and related infrastructure. The facilities have a combined gross licensed natural gas processing capacity of approximately 490 MMcf/d and current throughput of approximately 102 MMcf/d.

The scquisition includes eight core facilities that are focused in the Deep Basin, located in proximity to Tidewater's Brazeau River Complex (BRC), which generated approximately 77% of the acquired assets' 2015 EBITDA.

These core facilities are located at Windfall/Kaybob, Marlboro/Edson, Alder Flats, Gilby, Manola, Bonnie Glenn, Malmo and Sylvan Lake. In addition, the acquisition also includes over 2,000 km of gathering pipelines and other associated infrastructure.

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