Canada’s Inter Pipeline Ltd. said on Feb. 18 it has launched a review of options, including a possible ‘corporate transaction,’ just a week after it rejected an unsolicited bid from its largest shareholder Brookfield Infrastructure Partners.
Brookfield, which acquires and manages infrastructure assets, had offered CA$16.50 per share for Inter and said it was willing to raise it to as much as CA$18.25 if the pipeline operator gave it access to due diligence.
At the top price, Brookfield’s offer valued Inter at CA$7.8 billion (US$6.15 billion) and would have made it the biggest Canadian oil and gas deal since 2017, according to data provider Dealogic.
However, the Calgary, Alberta-based company rejected the offer, saying it was too low.
While Inter on Feb. 18 did not give any detail on the type of corporate transaction it might consider, it said it continues to look for partner for its CA$4 billion Heartland Petrochemical Complex in Alberta province.
The company had in 2019 rejected an unsolicited CA$12.4 billion buyout offer from an unnamed bidder, which, according to several media reports, was Hong Kong billionaire Li Ka-shing. That offer valued Inter shares at around CA$30 each.
The company’s assets include over 7,000 km (4,300 miles) of pipelines and 5 million barrels of oil storage in western Canada, as well as natural gas liquids processing plants.
Separately, Inter posted a 68% jump in fourth-quarter profit, helped by higher volumes and capital fees at its oil sands transportation business.
Excluding items, it earned 24 Canadian cents, above expectations of 19 Canadian cents, according to Refinitiv IBES.
Its shares closed at CA$17.50 in Toronto Stock Exchange on Feb. 18, up 30.6% since the Brookfield offer was made public. (US$1 = 1.2674 Canadian dollars)
Recommended Reading
Biden-Led EPA Rolls Out Methane Fee Targeting Oil, Gas Emitters
2024-11-12 - Companies violating the new Environmental Protection Agency rules will start paying penalties next year based on methane emissions reported in calendar year 2024.
Belcher: Election Outcomes and Their Impacts on Future US Policy
2024-10-14 - Trump would back ‘energy dominance,’ while Harris would pursue a climate change agenda.
New York to Fine Fossil Fuel Companies $75B Under New Climate Law
2024-12-26 - New York state will fine fossil fuel companies a total of $75 billion over the next 25 years to pay for damage caused to the climate.
Permian Operators Cut Methane Emissions by 26% in 2023, S&P Global Says
2024-12-23 - S&P Global credits improved equipment and technology for helping with methane emissions reductions in the Permian Basin.
EQT’s Rice: ‘Wake Up’ to Anti-Energy Movement
2024-11-08 - In the face of growing opposition to fossil fuels and energy infrastructure, EQT CEO Toby Rice pulled out a rallying cry at Hart Energy’s DUG Appalachia conference: “Wake up!”