Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
AltaGas to Purchase Tidewater Midstream Assets in $480 Million Deal
09/14/2023
AltaGas announced plans to acquire Tidewater's Phase 1 and II expansions of the Pipestone Natural Gas Processing Plant, a truck terminal, and related pipelines.
Recently AltaGas Ltd. revealed that it had finalized a deal with Tidewater Midstream and Infrastructure Ltd. to purchase an array of midstream assets, storage solutions, and terminals for a sum of CA$650 million (approximately US$480 million).
AltaGas will be taking ownership of Tidewater's Phase 1 and II expansion efforts for the Pipestone Natural Gas Processing Plant, as well as the nearby Dimsdale Natural Gas Storage Facility. In addition, the deal includes the acquisition of Pipestone's truck-in/truck-out condensate terminal and its affiliated pipeline networks.
The company stated that this acquisition is poised to enhance AltaGas's midstream operations by enlarging its presence in Alberta's Montney Shale. Furthermore, the deal is designed to secure a sustainable long-term supply of LPG to support AltaGas's global export initiatives.
Overview of the Pipestone Assets
- Pipestone Phase I: An advanced sour deep-cut gas processing facility situated in Alberta's Montney basin, featuring a processing throughput of 110 MMcf/d and a liquids handling capability of 20,000 bbl/d.
- Pipestone Condensate Terminal: A specialized truck-in/truck-out terminal engineered to maximize the value chain of Pipestone-derived liquid commodities.
- Pipestone Phase II: A fully-permitted, shovel-ready extension projected to contribute an additional 100 MMcf/d of sour deep-cut gas processing capacity and augment liquids handling by 20,000 bbl/d.
- Dimsdale Gas Storage: A high-caliber operational natural gas storage asset, proximally located to Pipestone I and II installations, with an extant working gas capacity of 15 Bcf, scalable up to 69 Bcf.
The total transaction value stands at $650 million, which includes $325 million in cash and the distribution of roughly 12.5 million AltaGas common shares to Tidewater. This acquisition hinges on both companies making a favorable Final Investment Decision (FID) for the Pipestone Phase II development. In a move to expedite the FID, AltaGas and Tidewater have forged a new joint venture aimed at completing the requisite steps for the project's construction and development. This partnership framework allows for continued cooperation on Pipestone Phase II, even if the primary acquisition fails to materialize.
AltaGas stated that the deal would represent an estimated 7.2x run-rate normalized EBITDA, factoring in synergies and additional capital investments for the Pipestone Phase II completion. Financially, the acquisition is projected to enhance earnings per share (EPS) by five percent from 2025 onwards, while contributing to a 0.1x decrease in the net debt-to-normalized EBITDA ratio, also starting in 2025.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
LM Energy Unloads 130 Miles of Pipelines in New Mexico Oil Gathering Asset Sale
LM Energy Holdings is set to sell assets including over 130 miles of pipelines, terminals, and other facilities in Eddy and Lea, New Mexico, Delaware Basin. LM Energy Holdings LLC has concluded definitive agreements to divest subsidiaries and assets associated with its Touchdown Crude Oil Gathering System situated in Eddy and Lea counties, New Mexico. The purchasing entity and financial particulars remain undisclosed.
Chevron Acquires Hess in $53 Billion Oil Megadeal Following Exxon's Pioneer Purchase
Chevron Corp has agreed to acquire Hess Corp in a $53 billion all-stock deal. This acquisition will not only enhance Chevron’s position in the domestic oil market but also fetch a substantial stake in Exxon Mobil's promising Guyana projects.
EOG Resources is pushing boundaries in Ohio's Utica oil play and now drilling on the Sable pad, also located in Noble County. This site features the 3.7-mile lateral currently under construction. The company's first multi-well pads in the area Timberwolf and Xavier have each produced over 200,000 barrels of oil since their inception—Timberwolf in August and Xavier in October. A third site, the four-well White Rhino pad in Noble County, is also showing promising early results, according to Keith Trasko, EOG’s Senior Vice President of Exploration and Production, who noted the wells are performing as expected in their initial weeks.
Exxon Mobil recently completed its acquisition of Pioneer Natural Resources, a deal worth about $60 billion. This transaction, which is the biggest in shale oil history, significantly changes the competitive landscape in the Permian Basin, a major oil field. This marks Exxon Mobil's largest deal since its $84.4 billion merger with Mobil Corp. in 1999. With this acquisition, Exxon Mobil's production in the Permian Basin will double to 1.3 million barrels of oil equivalent per day.
OXY has been the leader in Permian Basin production for the past five years. Currently, the Houston-based oil and gas company is deepening its presence in the basin with a $12 billion acquisition of CrownRock, adding over 94,000 acres in the Midland Basin and increasing its oil output by about 170,000 barrels per day. Occidental announced an increase in its proved reserves to 4.0 billion barrels of oil equivalent by the end of December 2023, up from 3.8 billion the previous year. Activities in the Permian largely fueled this rise. Occidental added approximately 303 million barrels through infill development projects as well as new discoveries and the further development of existing fields brought in another 153 million barrels.