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.
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.
For further information: For further information about Keyera, please visit our website at www.keyera.com or contact: Keyera Corp.: Lavonne Zdunich, Director, Investor Relations, or Calvin Locke, Manager, Investor Relations, Email: [email protected]; Telephone: 403.205.7670, Toll Free: 888.699.4853