Gross proceeds related to the Transaction are
'Our ability to provide unique and value-added solutions to support Whitecap's development in both the
Transaction Details
PGI will acquire a 50 percent working interest in the
PGI has agreed to fund Whitecap's Lator area development, including a new battery and gathering lateral (the 'Lator Infrastructure'), which PGI will own. In exchange, Whitecap has entered into long-term take-or-pay agreements with PGI for priority access to the Lator Infrastructure. In addition, the Lator area development includes an area of dedication to PGI for all volumes Whitecap produces out of the area.
Whitecap has entered into additional long-term take-or-pay contracts with PGI at the Musreau gas plant within the
In addition to PGI's transaction, Pembina has signed a combination of new and extended long-term integrated transportation, fractionation, and marketing services agreements with Whitecap, including a dedication of future growth volumes from Whitecap's Kaybob and Lator developments.
Strategic Benefits
Further Aligns PGI and Pembina with a
Enhanced Asset Utilization: The Transaction will increase volumes at PGI's Musreau and K3 facilities, utilizing existing white space.
Increased Volume Capture: The Lator Lateral will connect PGI's Musreau facility into the Lator area, enhancing PGI's potential to capture further volumes.
Strong Contractual Protections: The existing assets and further infrastructure development will be underpinned by an area-of-dedication and long-term take-or-pay agreements.
Benefits Full Pembina Value Chain: In addition to the acquired infrastructure and future development within PGI, there are added benefits across Pembina's integrated value chain. A combination of new and extended long-term transportation, fractionation, and marketing services agreements, and dedication of future growth, will support higher utilization on Pembina's Peace Pipeline and at the
Transaction Funding
The Transaction will initially be funded using PGI's existing credit facility.
Closing
Closing is expected to occur in the third quarter of 2024 and is subject to the satisfaction or waiver of customary closing conditions, including all required regulatory approvals.
Forward-Looking Information and Statements
This news release contains certain forward-looking statements and forward-looking information (collectively, 'forward-looking statements'), including forward-looking statements within the meaning of the 'safe harbor' provisions of applicable securities legislation, that are based on Pembina's, current expectations, estimates, projections, and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as 'continue', 'anticipate', 'will', 'expects', 'estimate', 'potential', 'planned', 'future', 'outlook', 'strategy', 'protect', 'plan', 'commit', 'maintain', 'focus', 'ongoing', 'believe' and similar expressions suggesting future events or future performance.
In particular, this news release contains forward-looking pertaining to, without limitation, the following: (i) the terms and conditions of the Transaction, including with respect to PGI's acquisition of working interests in certain assets, entering into new agreements with Whitecap including related to areas of dedication, transportation, fractionation, and marketing services, and the funding of Lator Infrastructure; (ii) the strategic benefits of the Transaction; (iii) the funding of the Transaction and (iv) the anticipated timing of closing of the Transaction.
The forward-looking statements are based on certain assumptions that Pembina have made in respect thereof as at the date of this news release regarding, among other things: prevailing commodity prices, margins and exchange rates; that Pembina's financial results will be consistent with management expectations; the availability and sources of capital; estimated operating and development costs; utilization rates and future demand for services; the ability to reach required commercial agreements and the ability to obtain required regulatory approvals and to comply with the conditions thereof.
Although Pembina believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties that could cause actual events or results to differ materially, including, but not limited to: the regulatory environment and decisions and Indigenous and landowner consultation requirements; the impact of competitive entities and pricing; reliance on key relationships, joint venture partners and agreements; labour and material shortages; the strength and operations of the oil and natural gas production industry and related commodity prices; non-performance or default by contract counterparties; actions by governmental or regulatory authorities, including changes in tax laws and treatment, changes in royalty rates, changes in regulatory processes or increased environmental regulation; the ability of Pembina or PGI to acquire or develop the necessary infrastructure in respect of the Transaction; fluctuations in operating results; adverse general economic and market conditions, including potential recessions in
This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected by forward-looking statements contained herein. The forward-looking statements contained in this news release speak only as of the date of this news release.
Contact:
Tel: (403) 231-3156
Email: investor-relations@pembina.com
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