CALGARY, May 24, 2018 /CNW/ - Keyera Corp. (TSX:KEY)
("Keyera") today announced that its wholly owned subsidiary, Keyera
Energy Inc., has entered into an agreement to acquire a logistics
and liquids blending terminal located near Tulsa, Oklahoma. The terminal receives, blends
and delivers diluent, the majority of which is transported by
pipeline from the Mont Belvieu area to the Chicago area and ultimately into the
Alberta market. The terminal also
has exclusive access to a nearby rail-to-truck transloading
facility. Subject to typical closing conditions, the acquisition is
expected to close in the second quarter of 2018 for approximately
US$80 million plus up to US$10 million in additional consideration over
five years.
Keyera is well positioned to fund this acquisition, along with
its current growth capital program of $1.0 billion to $1.1
billion.
"This acquisition builds on Keyera's focused investment strategy
for the United States, where we
are selectively extending our liquids infrastructure into key U.S.
liquids hubs," said David Smith,
Keyera's President and Chief Executive Officer. "The terminal is
situated approximately 50 miles from our recently announced
Wildhorse development, providing opportunities for operations
integration and commercial synergies. These assets, along with our
Hull Terminal, provide the foundation for Keyera to execute a
strategy in the U.S. that is consistent with our proven strategy in
Canada."
About Keyera
Keyera Corp. (TSX:KEY) operates an integrated
Canadian-based midstream business with extensive interconnected
assets and depth of expertise in delivering midstream energy
solutions. Its predominantly fee-for-service based business
consists of natural gas gathering and processing, natural gas
liquids processing, transportation, storage, marketing, iso-octane
production and sales, and an industry-leading condensate system in
the Edmonton/Fort Saskatchewan area of Alberta. Keyera strives to provide high
quality, value-added services to its customers across North America and is committed to conducting
its business ethically, safely and in an environmentally and
financially responsible manner.
Disclaimer
This news release contains forward-looking statements based on
Keyera's current expectations and assumptions made by the
management of Keyera relating to its business, the environment in
which it operates, its future operations and the performance of its
assets, including the proposed terminal. As these forward-looking
statements depend upon future events, actual outcomes may differ
materially depending on factors such as: satisfaction of closing
conditions for the acquisition (including regulatory approvals and
third party consents); future operating results of the assets; the
continuing ability to carry on the blending activities at the
terminal; the ability of Keyera to execute its strategic
initiatives in connection with the terminal; weather conditions;
commodity supply/demand balances and prices; activities of
producers, competitors, customers, business partners and others;
overall economic conditions; access to capital and financing
alternatives; operational risks associated with gas plant operation
and oil and gas production; environmental liabilities; potential
delays or changes in producer development plans in the area; the
legislative, regulatory and tax environment; and other known or
unknown factors. There can be no assurance that the results or
developments anticipated by Keyera will be realized or that it will
have the expected consequences for or effects on Keyera.
For additional information on these and other factors, see
Keyera's public filings on www.sedar.com. The information provided
in this release is given as of the date hereof. Readers are
cautioned that they should not unduly rely on forward-looking
information.
SOURCE Keyera Corp.