Pembina Pipeline and KKR’s Western Canada-focused gas processing business is acquiring C$400m (€267m) of midstream assets from Veren.
Pembina Gas Infrastructure (PGI) has agreed to acquire the assets which include Veren’s Gold Creek and Karr area oil batteries and support for future infrastructure development.
Pembina Pipeline which owns 60% of PGI said it expects to incur a net purchase price of C$240m. KKR’s global infrastructure funds have a 40% stake in PGI.
PGI is expected to initially use its existing loan to finance the acquisition.
As part of the transaction, Veren is to take over the operation of the acquired assets, including the existing PGI-owned batteries. PGI will invest up to C$300m – part of which has been already invested – in Veren’s future battery and gathering infrastructure.
Chris Rousch, PGI’s president and CEO, said: “We are thrilled to enhance and further align our strategic partnership with Veren, a top-tier growth focused Montney and Duvernay producer.
“This transaction demonstrates how our collaborative approach to infrastructure solutions creates a compelling value proposition for our customers.”
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