Dentons also legal counsel this week
BD&P and Torys assisted two Calgary-based energy firms in an M&A deal valued at $650 million. Also in this week’s deals roundup is Dentons serving as legal counsel.
AltaGas to acquire Tidewater natural-gas assets for $650 million
Two Calgary-based energy firms, AltaGas Ltd. and Tidewater Midstream and Infrastructure Ltd., entered into an agreement in which AltaGas will acquire natural gas assets from Tidewater for $ 650 million.
Included in the deal are Tidewater’s Pipestone natural gas plant, Pipestone expansion project, Dimsdale natural gas storage facility, and associated gathering and other infrastructure.
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Burnet Duckworth & Palmer LLP is serving as legal counsel and RBC Capital Markets as financial advisor to AltaGas on the transaction.
Torys LLP is acting as legal counsel to Tidewater, with National Bank Financial and CIBC Capital Markets as financial advisors.
“We are excited that the Pipestone transaction will strengthen our Midstream value chain,” said AltaGas President and CEO Vern Yu. “The acquisition provides us the opportunity to support industry-leading producers' growth plans in one of Canada's most prolific resource plays. The assets will deliver highly contracted take-or-pay and fee-for-service revenue that will also bring meaningful long-term LPG supply for AltaGas' global exports platform.”
Tidewater Interim CEO Rob Colcleugh said, “We believe the Transaction unlocks significant value for our shareholders while strengthening our balance sheet to better address opportunities across our diversified portfolio of energy and energy transition infrastructure assets.”
The deal is expected to close in the fourth quarter of 2023.
Crescent Point to sell North Dakota assets for $675 million
Crescent Point Energy Corp., a Calgary-based oil and gas company, agreed to sell its North Dakota assets to a private investor for approximately $675 million (US$500 million).
TPH&Co., the energy business of Perella Weinberg Partners, and TD Securities Inc. are serving as financial advisors to Crescent Point. BMO Capital Markets and RBC Capital Markets acted as strategic advisors.
Crescent Point President and CEO Craig Bryksa said, “Over the last few years, we have taken several strategic steps to optimize our portfolio. This transaction allows us to realize future value for an area with limited scalability while immediately enhancing our financial position and increasing our focus on our core operating areas.”
The deal is expected to close in the fourth quarter of 2023, subject to customary closing conditions.
Kingston Midstream to buy Rangeland’s Martin Hills pipeline in Clearwater play
Calgary-based Kingston Midstream Limited signed an agreement to acquire Rangeland Midstream Canada Ltd. from Rangeland Energy and its financial sponsor EnCap Flatrock Midstream.
Included in the deal is the Marten Hills Pipeline System, comprised of crude oil and condensate pipelines and related assets serving the core of the Marten Hills region of north-central Alberta in the prolific Clearwater play.
Dentons is serving as legal counsel and RBC Capital Markets as financial advisor to Kingston on the transaction.
Weil, Gotshal & Manges LLP is serving as legal counsel and Scotiabank as exclusive financial advisor to Rangeland Canada.
Kingston President and CEO Jim Hand said, “The acquisition furthers Kingston's energy infrastructure platform and diversifies both its customer base and basin exposure, while adding critical, high quality long term crude infrastructure assets in one of the most prolific plays in North America.”
“From the outset, our goal was to demonstrate to the producer community that the midstream model in Canada can be done differently,” said Rangeland Midstream Canada President Briton Speer. “We brought our pipeline into service during the most extraordinarily uncertain oil price environment the market had ever experienced, and our team worked closely with our customers through that challenging period.”
Rangeland Energy CEO Chris Keene said, “The entire Rangeland team has done an outstanding job exporting our proven US brand to Canada to develop a first-class midstream system in the prolific Clearwater/Marten Hills oil play. We are committed to continuing our brand and midstream development activities in Canada with our second company, Rangeland Midstream Canada II.”
EnCap Flatrock Midstream Managing Partner and COO Morriss Hurt said, “This is our third successful realization with Rangeland and our first in Canada. Chris Keene and his team have combined their vision with first-rate execution, successfully completing our first investment in Canada and achieving an attractive valuation.”
The deal is anticipated to be completed by the end of the third quarter of 2023, subject to customary regulatory approvals.