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.”
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.