Inter Pipeline Ltd. successfully closed its acquisition of the remaining 15% interest in the Cold Lake pipeline system from Canadian Natural Resources Ltd. for CA$527.5 million, subject to closing adjustments.
The acquisition, announced on Dec. 12, gave Inter Pipeline full ownership of the 1,400-kilometer Cold Lake pipeline system, which is the largest transporter of Cold Lake-area bitumen production.
Canadian Natural received CA$350 million in cash and CA$177.5 million through the issuance of about 6.41 million Inter Pipeline common shares in consideration for its Cold Lake ownership interest.
Funding for the cash component of the acquisition was provided from proceeds of a new 10-year medium-term note offering that closed Dec. 19, the company said.
Concurrent with closing of this acquisition, Inter Pipeline entered into a binding long-term take-or-pay agreement with Canadian Natural to transport diluent and bitumen blend for its Kirby North steam-assisted gravity drainage oil sands project.
Under this agreement, a new CA$125 million pipeline connection to the Kirby North production facility will be built. It is expected to begin service in first-quarter 2020.
Inter Pipeline Ltd. is based in Calgary, Alberta.
Recommended Reading
Glenfarne: Latest Customer Means Texas LNG is Ready for FID
2024-09-12 - Construction on Glenfarne’s Texas LNG is scheduled to begin this year, though the project is one of two LNG sites that had permits pulled after a court ruling in August.
Diamondback Subsidiary Viper Closes $900MM Midland Royalty Deal
2024-10-02 - Diamondback Energy’s Viper Energy closed the last of three acquisitions from Tumbleweed Royalty, owned by Double Eagle Energy’s founders, that together totaled about $1.1 billion.
SM Energy, NOG Close $2.6 Billion in Uinta Basin Acquisitions
2024-10-02 - SM Energy and Northern Oil and Gas have closed the acquisitions of XCL Resources and Altamont Energy, adding hundreds of locations and oil cuts of 86% to 87%.
Enterprise Closes $950MM Acquisition of Delaware’s Piñon Midstream
2024-10-28 - Enterprise Products Partners acquisition of Piñon Midstream expands Enterprise’s New Mexico Delaware Basin footprint with sour-gas processing.
SandRidge Closes $144MM Western Anadarko Basin Acquisition
2024-09-03 - SandRidge Energy’s deal, with an undisclosed party, adds net production of 6,000 boe/d (40% oil) in Ellis and Roger Mills counties, Oklahoma.