On September 9, 2024, Veren Inc. (TSX: VRN) announced a strategic long-term partnership with Pembina Gas Infrastructure (PGI), securing $400 million in net cash proceeds. The transaction focused on Veren’s infrastructure assets in the Alberta Montney. Veren sold its working interests in four oil battery sites while maintaining operatorship and acquiring additional sites previously operated by PGI. This deal enhances Veren's access to Patterson Creek Gas Plant and reduces operational costs by renegotiating multiple agreements with lower fees.

The transaction enables Veren to reduce its debt by $400 million, part of an expected $1.3 billion total debt reduction in 2024. Additionally, PGI will fund up to $300 million for future infrastructure developments, lowering Veren’s capital expenditures. The partnership includes a 15-year take-or-pay agreement, generating an annual fee of $35 million.

CIBC Capital Markets acted as the financial advisor, and BMO Capital Markets served as the strategic advisor to Veren. Torys LLP is acting as counsel to Veren, with a team including David Cuschieri, Amy Maginley, Tanis Makowsky, Alanah Wiberg, Katelyn Deyholos, Matt Bean, Charlotte Hardwicke-Brown (corporate/oil & gas), Darryl Hiscocks (employment), and Ian Li (competition). The transaction is expected to close in Q4 2024, subject to standard conditions.