Energy Transfer Executes Definitive Agreement to Sell Its Interest in Energy Transfer Canada
March 01 2022 - 7:50AM
Business Wire
Transaction allows Energy Transfer to redeploy
capital within its core footprint in the U.S.
Energy Transfer LP (NYSE: ET) today announced the signing of a
definitive agreement to sell its 51 percent interest in Energy
Transfer Canada ULC (Energy Transfer Canada) to a joint venture
which includes participation by Pembina Pipeline Corporation and
global infrastructure funds managed by KKR at a valuation of
approximately C$1.6 billion (US$1.3 billion) including debt and
preferred equity. The sale is expected to result in cash proceeds
to Energy Transfer of approximately C$340 million (US$270 million),
subject to certain purchase price adjustments. The transaction is
expected to close by the third quarter of 2022.
Energy Transfer Canada, based in Calgary, is one of Alberta’s
largest licensed gas processors. Its assets include six natural gas
processing plants that have a combined operating capacity of 1,290
million cubic feet per day and a network of approximately 848 miles
of natural gas gathering and transportation infrastructure in the
Western Canadian Sedimentary Basin.
The agreement allows Energy Transfer to divest its high-quality
Canadian assets at an attractive valuation to further deleverage
its balance sheet and redeploy capital within its U.S.
footprint.
Energy Transfer LP (NYSE: ET) owns and operates one of
the largest and most diversified portfolios of energy assets in
North America, with a strategic footprint in all of the major U.S.
production basins. Energy Transfer is a publicly traded limited
partnership with core operations that include complementary natural
gas midstream, intrastate and interstate transportation and storage
assets; crude oil, natural gas liquids (NGL) and refined product
transportation and terminalling assets; and NGL fractionation.
Energy Transfer also owns Lake Charles LNG Company, as well as the
general partner interests, the incentive distribution rights and
28.5 million common units of Sunoco LP (NYSE: SUN), and the general
partner interests and 46.1 million common units of USA Compression
Partners, LP (NYSE: USAC).
For more information, visit the Energy Transfer LP website at
energytransfer.com.
Forward Looking Statements
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management’s control. An extensive list of factors, including the
risk that the transaction described may not be completed in a
timely manner or at all, that can affect future results are
discussed in the Partnership’s Annual Report on Form 10-K and other
documents filed from time to time with the Securities and Exchange
Commission. In addition to the risks and uncertainties previously
disclosed, the Partnership has also been, or may in the future be,
impacted by new or heightened risks related to the COVID-19
pandemic, and we cannot predict the length and ultimate impact of
those risks. The Partnership undertakes no obligation to update or
revise any forward-looking statement to reflect new information or
events.
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version on businesswire.com: https://www.businesswire.com/news/home/20220228006262/en/
Investor Relations Bill Baerg Brent Ratliff Lyndsay Hannah
214-981-0795
Media Relations Vicki Granado Lisa Coleman 214-840-5820
media@energytransfer.com
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