CALGARY, April 15, 2019 /CNW/ - Secure Energy
Services Inc. ("Secure" or the "Corporation") (TSX – SES) is
pleased to announce the completion of two tuck-in acquisitions,
providing the Corporation with a strategic midstream footprint in
one of the largest crude oil storage and trading hubs in
North America. The Corporation has
acquired a 27% interest in a crude oil storage facility comprised
of four above-ground 175,000 bbl tanks located in Cushing, Oklahoma ("the Facility"), and a 51%
interest in an 80-acre parcel of undeveloped land adjacent to the
Facility. The total purchase price of the acquisitions was
US$10.4 million, paid in cash at
closing on April 11, 2019.
The Facility was constructed in 2015 and is strategically
located on 10 acres of land in South
Cushing with long-term connection agreements in place,
ultimately providing connectivity to all major inbound and outbound
pipelines in Cushing. Having
access to multiple Canadian crude streams and well-connected
tankage will benefit our customers getting their product to market
at the optimum price.
Secure's majority investment in the 80-acre parcel of land
provides the Corporation with significant optionality to develop
additional midstream infrastructure in one of North America's key trading hubs. The
Corporation's strategic partners have a long history in
constructing similar scale storage infrastructure in the
Cushing market and have developed
key relationships with major companies in the area. Secure intends
to support any further investment with long-term contracts
providing the Corporation with certainty over future cash
flows.
These transactions provide a measured and strategic entry into a
new market for Secure, supporting the continued growth and
development of the Corporation's midstream business. Owning
infrastructure in Cushing extends
Secure's crude oil value chain, providing our customers with market
access flexibility to optimize realized pricing and increase
operating netbacks.
ABOUT SECURE ENERGY SERVICES INC.
Secure is a TSX
publicly traded integrated energy business with midstream
infrastructure, environmental and technical solutions divisions
providing industry leading customer solutions to upstream oil and
natural gas companies operating in western Canada and certain regions in the United States ("U.S.").
SOURCE SECURE Energy Services Inc.