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Energy Transfer to sell Canadian assets in $1.3bn transaction

Dallas-based energy transportation infrastructure company Energy Transfer has agreed to sell its 51 percent interest in Energy Transfer Canada at a $1.3 billion (C$1.6 billion) value.

Dallas-based energy transportation infrastructure company Energy Transfer has agreed to sell its 51 percent interest in Energy Transfer Canada at a $1.3 billion (C$1.6 billion) value. The buyer is a joint venture that includes Canada’s Pembina Pipeline and US private equity firm KKR. The deal, which includes debt and preferred equity, is expected to close by Q3 2022.

PRESS RELEASE

March 01, 2022

DALLAS–(BUSINESS WIRE)–Energy Transfer LP (NYSE: ET) today announced the signing of a definitive agreement to sell its 51 percent interest in Energy Transfer Canada ULC (Energy Transfer Canada) to a joint venture which includes participation by Pembina Pipeline Corporation and global infrastructure funds managed by KKR at a valuation of approximately C$1.6 billion (US$1.3 billion) including debt and preferred equity. The sale is expected to result in cash proceeds to Energy Transfer of approximately C$340 million (US$270 million), subject to certain purchase price adjustments. The transaction is expected to close by the third quarter of 2022.

Energy Transfer Canada, based in Calgary, is one of Alberta’s largest licensed gas processors. Its assets include six natural gas processing plants that have a combined operating capacity of 1,290 million cubic feet per day and a network of approximately 848 miles of natural gas gathering and transportation infrastructure in the Western Canadian Sedimentary Basin.

The agreement allows Energy Transfer to divest its high-quality Canadian assets at an attractive valuation to further deleverage its balance sheet and redeploy capital within its U.S. footprint.

Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in North America, with a strategic footprint in all of the major U.S. production basins. Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. Energy Transfer also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco LP (NYSE: SUN), and the general partner interests and 46.1 million common units of USA Compression Partners, LP (NYSE: USAC).

For more information, visit the Energy Transfer LP website at energytransfer.com.