Weekly OFS Newsletter – December 4, 2017
OILFIELD SERVICES UPDATE
Monday December 4, 2017
News items ended December 3, 2017
Mergers and Acquisitions
- Calgary based Noralta Technologies acquired the assets and monitored accounts of Edmonton based Wellsite Automation and Control (WAC). WAC provides oil and gas wellsite monitoring and control services. Noralta will integrate WAC’s clients onto its own host platform and provide additional service offerings.
- Enbridge Inc. (TSX:ENB) announced the offering of $1.5 billion in common shares on a private placement basis. Enbridge reached subscription agreements with three large institutional investors at a price of $44.84 per common share. The gross proceeds from the private placement will be used to reduce short term indebtedness pending investment in capital projects.
- Keyera Corp. (TSX:KEY) announced a public offering of $429.4 million in gross proceeds with its underwriters on a bought-deal basis. 12.2 million common shares were issued to the underwriters at $35.20 per share, with an option to purchase an additional 1.83 million common shares at the same issue price. The net proceeds will be used to pay down short-term debt, capital project spending and other general corporate purposes.
- Pembina Pipeline Corp. (TSX:PPL) announced a $300 million bought deal preferred share offerings with a syndicate of underwriters. The underwriters have agreed to purchase 12 million cumulative redeemable minimum rate reset class A preferred shares, Series 21 at $25 per share for public distribution. The net proceeds from the offering will be used to reduce indebtedness incurred to fund its capital program and as cash consideration payable to former common shareholders of Veresen Inc. after its acquisition.
- STEP Energy Services Ltd. (TSX:STEP) announced the completion of its $65 million secondary offering of common shares. The selling shareholders sold off 5.31 million common shares at $12.25 per share through a syndicate of underwriters on a bought deal basis, with STEP not receiving any of the proceeds.
- Enbridge Inc. (TSX:ENB) announced plans to sell more than $3 billion in assets in 2018. As part of its strategic update, Enbridge announced it has identified $10 billion in non-core assets and will seek to prioritize its core businesses: liquids pipelines and terminals, natural gas transmission and storage and natural gas utilities.
- The Organization of the Petroleum Exporting Countries (OPEC) reached an agreement to extend oil output cuts from March 2018 to the end of 2018, with the objective of tackling the global gut in crude oil supply. The current deal agreed upon reduces oil supply by approximately 1.8 million bbls/d to boost global oil prices.
- Pembina Pipeline Corp. (TSX:PPL) approved the development of its Prince Rupert Terminal, a liquefied petroleum gas terminal located on Watson Island, British Columbia. The terminal will be built on lands leased from a wholly-owned subsidiary of the City of Prince Rupert and is expected to have a capacity of 25,000 bbls/d when it goes online in mid 2020. The terminal is subject to regulatory and environmental approvals.
- Total Energy Services Inc. (TSX:TOT) and its wholly owned subsidiary, Savanna Energy Services Corp., has received a statement of claim from Alberta Investment Management Corp. (AIMCO), relating to Savanna’s refusal to pay a $6 million change of control penalty to AIMCO. Savanna received $200 million in financing from AIMCO in November 2016, which included change of control provisions with accelerated repayment and penalty interest prior to being acquired by Total in June 2017.
- TransCanada Corp.’s (TSX:TRP) Keystone pipeline resumed operations on November 28, 2017 after a 5,000 bbl spill that happened on November 16, 2017. TransCanada announced that it had recovered more than 1,000 bbls of oil as site cleanup efforts continue. The pipeline is scheduled to resume at reduced pressure to ensure a safe, gradual increase in volume transported