CALGARY, July 14, 2016 /CNW/ – Wolf Midstream Inc. (Wolf) announced today that it has signed an agreement to acquire a 50% ownership interest in Access Pipeline (Access) from Devon Energy Corp. (Devon) for $1.4 billion. The Access Pipeline system includes pipelines that transport blended bitumen and diluent between the Christina Lake area of Northeastern Alberta andEdmonton. Under the terms of the transaction, Devon’s thermal-oil acreage is dedicated to Access for an initial term of 25 years.
In September 2015, Wolf’s management team and Canada Pension Plan Investment Board (CPPIB) created a midstream investment vehicle focused on acquisition opportunities in Western Canada. The transaction will be funded at closing by Wolf through an investment by CPPIB of approximately $825 million and third-party debt financing.
“Access is an attractive foundational asset for Wolf that provides us with immediate scale in the region. We are pleased to work withDevon as a long-term partner supporting its high-quality oil sands projects, and look forward to expanding service with third-party shippers. We are pleased to have CPPIB’s full support on this significant transaction for Wolf, reinforcing our mutual commitment to build out the vehicle” said Gord Salahor, Wolf’s Chief Executive Officer.
The transaction is subject to regulatory approvals along with customary terms and conditions. Closing is expected in the third quarter of 2016. Peters & Co. Limited acted as financial advisor and Norton Rose Fulbright Canada LLP acted as legal advisor to Wolf on this transaction.
About Wolf Midstream Inc.
Wolf is a private company based in Calgary dedicated to building, owning, and operating energy infrastructure. Wolf management has a long track record of operating energy infrastructure assets in Western Canada and previously led Mistral Energy Inc. and Taylor NGL Limited Partnership (formerly TSX: TAY.UN).