On July 2, 2024, Pembina Gas Infrastructure Inc. (“PGI”), jointly owned by Pembina Pipeline Corporation and KKR, entered into a $420 million transaction with Whitecap Resources Inc. to acquire a 50% working interest in the Kaybob Complex. Pembina’s share of the acquisition amounted to $252 million. The Kaybob Complex includes 165 million cubic feet per day of natural gas processing capacity and 15,000 barrels per day of condensate stabilization. Whitecap will retain operatorship of the assets.

Additionally, PGI committed to funding infrastructure development in Whitecap’s Lator growth area, including a new battery and gathering lateral, in exchange for long-term take-or-pay agreements and priority access. PGI and Pembina also extended their partnership with Whitecap through new long-term agreements for integrated transportation, fractionation, and marketing services.

The transaction strategically enhances asset utilization and volume capture for PGI and Pembina, aligning with Whitecap’s growth in the Montney and Duvernay regions. It strengthens Pembina’s value chain by supporting higher utilization of its Peace Pipeline and Redwater Complex.

The deal was financed through PGI’s existing credit facility. Closing was expected in Q3 2024, subject to customary regulatory approvals. Legal advisors were not disclosed.