Steel Reef Infrastructure has announced the completion of acquisition of certain associated gas infrastructure assets in Saskatchewan from Crescent Point Energy for $500m.
The transaction follows a definitive agreement signed by Steel Reef in November last year, to acquire the natural gas gathering, processing and sales infrastructure assets from Crescent Point.
Under the acquisition, Steel Reef acquired nine natural gas gathering and processing facilities along with two gas sales pipelines. The assets have a combined throughput capacity of over 90 MMcf/d.
The processing facilities comprise four Viewfield gas plants, Flat Lake gas plant, Rapdan gas plant, Leitchville gas plant, Dollard gas plant and Glen Ewen gas plant.
Steel Reef Infrastructure president and CEO Scott Southward said: “Acquiring key natural gas infrastructure assets in leading resource plays provides Steel Reef with the opportunity to enhance and integrate its full-service gas processing offerings.
“This acquisition demonstrates our resolve to provide infrastructure solutions for our customers, while providing value for our shareholders.”
Steel Reef has secured $175m from InstarAGF to fund the transaction
As part of the agreement, the company has also secured long-term take-or-pay commitments from Crescent Point in exchange of retaining the right to market unreserved capacity to third parties.
Additionally, Steel Reef has also committed to fund the 12MMcf/d expansion of one of the gas processing facilities.
For the transaction, Steel Reef has secured $175m from InstarAGF, a current shareholder, and expanded its credit facilities through National Bank of Canada, Bank of Nova Scotia and ATB Financial.
National Bank Financial has served as debt advisor to Steel Reef for the transaction.
Steel Reef is a privately held midstream company which owns and operates high-quality processing and transportation facilities.
It is focused on strategically partnering with oil and gas exploration, development and production companies to develop its portfolio of midstream assets, through acquisition or construction.
