Weekly OFS Newsletter – DECEMBER 22, 2017




Monday December 22, 2017
News items ended December 21, 2017

Mergers and Acquisitions


  • Whitehorn Merchant Capital Inc. assisted Calgary based Caltrax Inc., a full service independent railcar repair service facility with its sale to Lachine, QC based Cad Railway Industries Ltd., a rolling-stock repair and remanufacturing facility. The acquisition allows Cad to reinforce its freight servicing capabilities and to solidify its market position in the rail service industry
  • Tidewater Midstream and Infrastructure Ltd. (TSX:TWM) closed its $34 million acquisition of some assets in the Deep Basin and Montney region. Along with its previous acquisition of a pipeline in the Wapiti region, Tidewater owns working interests in a rail connected 600 MMcf/d gas plant,  in 400 MMcf/d and 200MMcf/d dehydration and compression facilities at Stolberg and Brazeau, and in more than 600km of pipelines  in the Montney and Deep Basin areas.



  • Critical Control Energy Services Corp. (TSX:CCZ) announced a $2 million private placement of a term loan. The term loan is expected to be fully drawn in 2018 based on market demand for Critical Control’s services. The first six months after the initial draw of the term loan is interest only and the principal will be amortized over a 36-month period.



  • The Alberta government received $556 million in bonus bids on 1.48 million hectares of land sale in 2017, with an average price of $374.91 per hectare. This represented a 275% increase from 2016’s bonus bids of $148 million. Most of the bids were spent on the emerging Duvernay East Shale Basin play.
  • Inter Pipeline Ltd. (TSX:IPL) is proceeding with a $3.5 billion petrochemical project north of Edmonton. The facility will convert propane into polypropylene, a type of plastic used to manufacture automobile parts, containers and bank notes. The project will be eligible for up to $200 million in provincial royalty credits and is scheduled to be completed in late 2021.
  • Canadian National Railway Co. (TSX:CNR) is buying 200 locomotives in the next three years from General Electric Co. (NYSE:GE) to support expected growth and to further drive operational efficiencies. Canadian National is also seeking to add at least 2,000 more employees to the 3,500 hired in 2017. Growth is expected from domestic and international intermodal container shipments, sand and the opening of new grain terminals on its current routes.
  • AltaGas Ltd. (TSX:ALA) announced the commencement of commercial operations at its $120 million North Pine NGL Separation Facility in northeastern BC. The 10,000 bbls/d facility provides a market alternative to Western Canadian gas producers and has access to the Canadian National Railway rail network.