Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
AltaGas to Purchase Tidewater Midstream Assets in $480 Million Deal
09/14/2023
AltaGas announced plans to acquire Tidewater's Phase 1 and II expansions of the Pipestone Natural Gas Processing Plant, a truck terminal, and related pipelines.
Recently AltaGas Ltd. revealed that it had finalized a deal with Tidewater Midstream and Infrastructure Ltd. to purchase an array of midstream assets, storage solutions, and terminals for a sum of CA$650 million (approximately US$480 million).
AltaGas will be taking ownership of Tidewater's Phase 1 and II expansion efforts for the Pipestone Natural Gas Processing Plant, as well as the nearby Dimsdale Natural Gas Storage Facility. In addition, the deal includes the acquisition of Pipestone's truck-in/truck-out condensate terminal and its affiliated pipeline networks.
The company stated that this acquisition is poised to enhance AltaGas's midstream operations by enlarging its presence in Alberta's Montney Shale. Furthermore, the deal is designed to secure a sustainable long-term supply of LPG to support AltaGas's global export initiatives.
Overview of the Pipestone Assets
- Pipestone Phase I: An advanced sour deep-cut gas processing facility situated in Alberta's Montney basin, featuring a processing throughput of 110 MMcf/d and a liquids handling capability of 20,000 bbl/d.
- Pipestone Condensate Terminal: A specialized truck-in/truck-out terminal engineered to maximize the value chain of Pipestone-derived liquid commodities.
- Pipestone Phase II: A fully-permitted, shovel-ready extension projected to contribute an additional 100 MMcf/d of sour deep-cut gas processing capacity and augment liquids handling by 20,000 bbl/d.
- Dimsdale Gas Storage: A high-caliber operational natural gas storage asset, proximally located to Pipestone I and II installations, with an extant working gas capacity of 15 Bcf, scalable up to 69 Bcf.
The total transaction value stands at $650 million, which includes $325 million in cash and the distribution of roughly 12.5 million AltaGas common shares to Tidewater. This acquisition hinges on both companies making a favorable Final Investment Decision (FID) for the Pipestone Phase II development. In a move to expedite the FID, AltaGas and Tidewater have forged a new joint venture aimed at completing the requisite steps for the project's construction and development. This partnership framework allows for continued cooperation on Pipestone Phase II, even if the primary acquisition fails to materialize.
AltaGas stated that the deal would represent an estimated 7.2x run-rate normalized EBITDA, factoring in synergies and additional capital investments for the Pipestone Phase II completion. Financially, the acquisition is projected to enhance earnings per share (EPS) by five percent from 2025 onwards, while contributing to a 0.1x decrease in the net debt-to-normalized EBITDA ratio, also starting in 2025.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Kingston Midstream Secures Deal to Acquire Clearwater Assets from Rangeland Midstream Canada
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/184Blog_Rangeland Energy Divests Canadian Pipeline to Kingston Midstream.png)
Rangeland Energy has agreed to sell Rangeland Midstream Canada to Kingston Midstream Alberta and remains committed to future Canadian midstream investments. Texas-based Rangeland Energy, supported by financial partner EnCap Flatrock Midstream, has inked a deal to sell its Canadian subsidiary, Rangeland Midstream Canada Ltd., to Calgary's Kingston Midstream Alberta Ltd. for cash.
Chevron (CVX) Set to Purchase PDC Energy for $6.3B
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/172Blog_Chevron (CVX) to Acquire PDC Energy for 6.3B.png){kind=icon}
Chevron Corp. has finalized the acquisition of PDC Energy Inc.'s land holdings in the Denver-Julesburg and Permian basins. Chevron Corporation (CVX) has announced its intention to acquire PDC Energy, Inc. (PDCE) in an all-stock deal valued at $6.3 billion. Under the agreement terms, PDC stockholders will receive 0.4638 Chevron shares for each PDCE share, bringing the total enterprise value to $7.6 billion, inclusive of debt. The acquisition is seen as a strategic step to enhance Chevron's position in vital U.S. production basins, unlocking new opportunities and potentially driving higher returns. As part of the agreement, Chevron will issue around 41 million shares of common stock at the deal's closure. Both Chevron's and PDC Energy's boards of directors have unanimously approved the acquisition.
Rangeland Energy has agreed to sell Rangeland Midstream Canada to Kingston Midstream Alberta and remains committed to future Canadian midstream investments. Texas-based Rangeland Energy, supported by financial partner EnCap Flatrock Midstream, has inked a deal to sell its Canadian subsidiary, Rangeland Midstream Canada Ltd., to Calgary's Kingston Midstream Alberta Ltd. for cash.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/187Blog_ONEOK Completes Acquisition of Magellan Midstream.png)
The merger between ONEOK and Magellan received approval from Magellan shareholders, securing just 55% of the total votes at Magellan’s meeting on Sept. 21. ONEOK Inc. has successfully concluded the acquisition of Magellan Midstream Partners LP on Sept. 25. The deal will bring together their respective assets and expertise, resulting in a powerful entity boasting an extensive network of approximately 25,000 miles of pipelines primarily focused on transporting liquids.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/186Blog_Viper Energy Secures $1 Billion in Permian.png)
Viper Energy's deal, comprised of cash and equity, secures an additional 2,800 net royalty acres in the Midland Basin and 1,800 in the Delaware Basin. Viper Energy Partners LP, a Diamondback Energy Inc. subsidiary, has inked a deal to acquire mineral and royalty interests in the Permian Basin. The deal, valued at around $1 billion, is with Warwick Capital Partners and GRP Energy Capital. Viper was established by Diamondback with the purpose of owning, purchasing, and capitalizing on oil and natural gas assets in North America, specifically targeting mineral and royalty interests.