CALGARY, Oct. 24, 2014 /CNW/ - Pembina Pipeline
Corporation ("Pembina" or "the Company") (TSX: PPL; NYSE: PBA) is
pleased to announce that the Company has completed its previously
announced acquisition (the "Transaction") of the Vantage pipeline
system ("Vantage") and Mistral Midstream Inc.'s ("Mistral")
interest in the Saskatchewan Ethane Extraction Plant ("SEEP") from
certain entities affiliated with Riverstone Holdings LLC (the
"Seller").
"I am very pleased to add these strategic assets to our energy
infrastructure portfolio" said Mick
Dilger, Pembina's President and Chief Executive Officer.
"Expanding our footprint into the prolific Bakken play and
connecting it to the Alberta
petrochemical market in a low-risk transaction is a logical step
for us, and one that is in line with our integrated strategy. We
expect that future opportunities associated with both Vantage and
SEEP will provide further diversification and growth for our asset
base, which will ultimately translate into continued long-term
value for our shareholders."
Pursuant to the Transaction, Pembina has acquired all of the
equity interests of Vantage Pipeline Canada ULC, Vantage Pipeline
US LP and Mistral and repaid Vantage's bank indebtedness of
approximately US$224 million in a
transaction valued at approximately US$650
million. Pembina paid cash of US$395
million and US$255 million in
its common shares to fund the Transaction. The Company funded the
cash portion of the consideration in part with proceeds from its
previously announced bought-deal preferred share issuance, which
closed on September 11, 2014, as well
as existing credit capacity. The US$255
million common share portion of the consideration resulted
in 5.61 million shares being issued to the Seller. In addition,
given the Transaction's effective date of August 1, 2014, Pembina will reimburse the Seller
for approximately US$23 million that
was spent to advance the construction of SEEP between the effective
date and the closing date of the Transaction. Pembina is also
pleased to announce that it has reached an agreement to acquire the
remaining 10 percent interest in SEEP, which is anticipated to
close shortly after the Transaction, after which time Pembina will
own 100 percent of the 60 mmcf/d deep cut processing facility.
For additional information on the transaction, including a
description of the assets acquired, please see Pembina's website at
www.pembina.com.
About Pembina
Calgary-based Pembina Pipeline
Corporation is a leading transportation and midstream service
provider that has been serving North
America's energy industry for 60 years. Pembina owns and
operates pipelines that transport various hydrocarbon liquids
including conventional and synthetic crude oil, heavy oil and oil
sands products, condensate (diluent) and natural gas liquids
produced in western Canada. The
Company also owns and operates gas gathering and processing
facilities and an oil and natural gas liquids infrastructure and
logistics business. With facilities strategically located in
western Canada and in natural gas
liquids markets in eastern Canada
and the U.S., Pembina also offers a full spectrum of midstream and
marketing services that spans across its operations. Pembina's
integrated assets and commercial operations enable it to offer
services needed by the energy sector along the hydrocarbon value
chain.
Forward-Looking Statements & Information
This document contains certain forward-looking statements and
information (collectively, "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
"expects", "will", "expand", "would", "plans" and similar
expressions suggesting future events or future performance.
In particular, this document contains forward-looking
statements, pertaining to, without limitation, the following: the
Transaction, including the anticipated benefits of the Transaction
to Pembina; the anticipated timing of the acquisition of the
remaining interest in SEEP; corporate strategy and the expected
integration of the acquired assets with Pembina's business; the
ongoing utilization and expansions of and additions to Pembina's
business and asset base, growth and growth potential. These
forward-looking statements and information are being made by
Pembina based on certain assumptions that Pembina has made in
respect thereof as at the date of this document including those
discussed below.
With respect to forward-looking statements contained in this
document, Pembina has made assumptions regarding, among other
things: the ongoing utilization and future expansion, development,
growth and performance of Pembina's business and asset base; future
demand for processing and transportation services; future levels of
oil and natural gas development; potential revenue and cash flow
enhancement; future cash flows; the ability of parties to satisfy
conditions to closing of the additional SEEP interest; future
levels of oil and natural gas developments.
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. Readers are cautioned that events or
circumstances could cause results to differ materially from those
predicted, forecasted or projected. By their nature,
forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties that contribute to the possibility
that the predictions, forecasts, projections and other
forward-looking statements will not occur, which may cause actual
performance and financial results in future periods to differ
materially from any projections of future performance or results
expressed or implied by such forward-looking statements and
information.
None of the forward-looking statements described above are
guarantees of future performance and are subject to a number of
known and unknown risks and uncertainties, including, but not
limited to: the failure to realize the anticipated benefits of the
Transaction following closing due to integration issues or
otherwise; the impact of competitive entities and pricing; reliance
on key industry partners, alliances and agreements; the strength
and operations of the oil and natural gas production industry and
related commodity prices; the continuation or completion of third-
party projects; regulatory environment and inability to obtain
required regulatory approvals; tax laws and treatment; fluctuations
in operating results; lower than anticipated results of operations
and accretion from Pembina's business initiatives; the ability of
Pembina to raise sufficient capital (or to raise capital on
favourable terms) to complete future projects and satisfy future
commitments.
The forward-looking statements contained in this document
speak only as of the date of this document. Pembina does not
undertake any obligation to publicly update or revise any
forward-looking statements or information contained herein, except
as required by applicable laws. The forward-looking statements
contained in this document are expressly qualified by this
cautionary statement.
Pembina Pipeline® is a registered trademark of
Pembina Pipeline Corporation.
SOURCE Pembina Pipeline Corporation