Secure Energy Services Inc. (TO: SES) entered into an agreement to acquire all of the assets of Calgary, Alberta-based Predator Midstream Ltd. for about $107 million.
Predator owns and operates three existing transloading rail terminals in Alberta at Mannville, Alliance and High Prairie. Predator transloads crude oil from truck to rail and has a current fleet of 275 rail cars. Its management team is led by CEO and founder Joel MacLeod who, along with his management and operational team, will continue to operate the day-to-day business.
The purchase price for the acquisition is being paid with $65 million in cash and the balance of $42 million through issuance of common shares of Secure. Closing is expected on Aug. 15.
The acquisition is expected to contribute an additional $5 million to $7 million to Secure’s EBITDA for the rest of 2014. The expected 2015 annualized run rate EBITDA is expected to be in the range of $17 million to $20 million, reflecting utilization of assets put into operation during 2014.
Recommended Reading
Williams Cos. Prices $1.5B of Senior Notes
2025-01-07 - Williams Cos. said proceeds from the offering for near-term debt reduction and corporate needs.
Midstreamers Say Need for More Permian NatGas Pipelines Inevitable
2024-11-26 - The Permian Basin’s associated gas output could outstrip the region’s planned capacity well before the end of the decade, pipeline company executives said.
Williams Completes Mid-Atlantic Transco Expansion Project
2024-12-30 - Williams Cos.'s Transco Southside Reliability Enhancement project is now online.
High Court Hears Potentially Influential Uinta Basin Case
2024-12-11 - U.S. Supreme Court justices heard arguments over a Utah railroad that could have big implications for the energy sector’s adherence to environmental requirements.
Panama Canal Traffic Rose in Dec, but Waterway Still Has Empty Slots
2025-01-13 - Some vessels, including LNG tankers, have continued using alternative routes due to the canal's increase in passage fees in the last decade.