CALGARY, ALBERTA–(Marketwired – Dec. 16, 2016) – Inter Pipeline Ltd. (“Inter Pipeline”) (TSX:IPL) announced today the successful closing of its acquisition of the remaining 15 percent interest in the Cold Lake pipeline system from Canadian Natural Resources Limited (“Canadian Natural”) for $527.5 million, subject to closing adjustments.
This immediately accretive acquisition, announced on December 12, 2016, results in Inter Pipeline owning 100 percent of the 1,400 km Cold Lake pipeline system, which is the largest transporter of Cold Lake area bitumen production.
Canadian Natural received $350 million in cash and $177.5 million through the issuance of 6,417,740 Inter Pipeline common shares in consideration for its Cold Lake ownership interest. Funding for the cash component of the acquisition was provided from proceeds of a new 10-year medium term note offering that closed today.
Concurrent with closing of this acquisition, Inter Pipeline has entered into a binding long-term take-or-pay agreement with Canadian Natural to transport diluent and bitumen blend for its Kirby North SAGD oil sands project. The agreement will trigger the construction of a new $125 million pipeline connection to the Kirby North production facility, with service targeted for the first quarter of 2020.
Inter Pipeline Ltd.
Inter Pipeline is a major petroleum transportation, natural gas liquids processing, and bulk liquid storage business based in Calgary, Alberta, Canada. Inter Pipeline owns and operates energy infrastructure assets in western Canada and Europe. Inter Pipeline is a member of the S&P/TSX 60 Index and its common shares trade on the Toronto Stock Exchange under the symbol IPL. www.interpipeline.com