TC Energy enters agreement to sell Columbia Midstream assets for US$1.275 billion
July 02 2019 - 9:15PM
News Release -- TC Energy Corporation (TSX:TRP) (NYSE:TRP) (TC
Energy) announced today that it has entered into an agreement to
sell its U.S. midstream assets held by its subsidiary, Columbia
Midstream Group, to UGI Energy Services, LLC, a subsidiary of UGI
Corporation (NYSE: UGI), for approximately US$1.275 billion
(Cdn$1.7 billion). The transaction is expected to close in the
third quarter of 2019 subject to closing adjustments and customary
regulatory approvals.
Columbia Midstream Group, which operates in the Appalachian
Basin, owns four natural gas gathering systems and an interest in a
company with gathering, processing and liquids assets. These assets
connect production to markets throughout western Pennsylvania,
eastern Ohio and northern West Virginia. This sale does not include
any interest in Columbia Energy Ventures Company (CEVCO), which is
TC Energy’s minerals business in the Appalachian basin.
“The sale of Columbia Midstream Group advances our ongoing
efforts to prudently fund our industry-leading portfolio of
high-quality natural gas pipeline, liquids pipelines and power
generation projects, while maximizing value for our shareholders,”
said Russ Girling, TC Energy President and Chief Executive
Officer.
“Along with the sale of Coolidge and partial monetization of
Northern Courier we now expect to realize approximately Cdn$3.4
billion of proceeds from announced portfolio management activities
in 2019. When combined with our significant and growing cash flow,
access to capital markets and potential additional portfolio
management activities, we are well-positioned to fund our $30
billion secured capital program in a manner consistent with
achieving targeted credit metrics in 2019 and thereafter.”
TC Energy continues to own and operate its significant network
of interstate pipelines in the Appalachian Basin with its Columbia
Gas Transmission system, which transports low-cost natural gas
supply from the production region to markets in the U.S., including
LNG export facilities that serve international markets.
Wells Fargo Securities, LLC acted as exclusive financial advisor
to TC Energy on the transaction.
TC Energy and its affiliates deliver the energy millions of
people rely on every day to power their lives and fuel industry. We
are not only focused on what we do, but how we do it – guided by
core values of safety, responsibility, collaboration and integrity,
our more than 7,000 people are committed to sustainably developing
and operating pipeline, power generation and energy storage
facilities across Canada, the United States and Mexico. TC Energy’s
common shares trade on the Toronto (TSX) and New York (NYSE) stock
exchanges under the symbol TRP. Visit TCEnergy.com and connect with
us on social media to learn more.
FORWARD-LOOKING INFORMATION
This publication contains certain information that is
forward-looking and is subject to important risks and uncertainties
(such statements are usually accompanied by words such as
"anticipate", "expect", "believe", "may", "will", "should",
"estimate", "intend" or other similar words). Forward-looking
statements in this document are intended to provide TC Energy
security holders and potential investors with information regarding
TC Energy and its subsidiaries, including management's assessment
of TC Energy's and its subsidiaries' future plans and financial
outlook. All forward-looking statements reflect TC Energy's beliefs
and assumptions based on information available at the time the
statements were made and as such are not guarantees of future
performance. Readers are cautioned not to place undue reliance on
this forward-looking information, which is given as of the date it
is expressed in this news release, and not to use future-oriented
information or financial outlooks for anything other than their
intended purpose. TC Energy undertakes no obligation to update or
revise any forward-looking information except as required by law.
For additional information on the assumptions made, and the risks
and uncertainties which could cause actual results to differ from
the anticipated results, refer to the Quarterly Report to
Shareholders dated May 2, 2019 and 2018 Annual Report filed under
TC Energy's profile on SEDAR at www.sedar.com and with the U.S.
Securities and Exchange Commission at www.sec.gov.
Media Enquiries:Carol Wirth / Paige
Fredrickson403.920.7859 or 800.608.7859
Investor & Analyst Enquiries:David Moneta /
Duane Alexander403.920.7911 or 800.361.6522
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