Weekly OFS Newsletter
News Items Ending July 9, 2018
Mergers & Aquisitions
AltaGas Ltd. (TSX:ALA) closed the $9 billion acquisition of WGL Holdings, Inc. (NYSE:WGL). The combined company has an enterprise value of over $17 billion and a presence in over 30 states and provinces. The acquisition is aligned with its strategy to strengthen its North American clean energy platform and drive growth across all three business segments: Gas, Power and Utilities.
Brookfield Infrastructure is acquiring Enbridge Inc.’s (TSX:ENB) Canadian natural gas gathering and processing business for $4.31 billion in cash. The business includes 19 natural gas processing plants and liquids handling facilities, with a total operating capacity of 3.3 bcf/d and 3,550 km of natural gas pipelines located in Alberta and BC. Most of these assets were acquired during Enbridge’s merger with Spectra energy. The sale is aligned with Enbridge’s strategy to move towards being a pure play regulated pipeline and utility business.
Calgary based CEDA International Corp., an industrial maintenance, turnaround and construction services provider acquired Dawson Creek, BC based Breakthrough Oilfield Services Ltd., an industrial and field services provider of oil and natural gas liquids processing. The acquisition complements CEDA’s existing operations in the Montney region and its core service offerings.
Vertex Resource Group Ltd. (TSXV:VTX) announced the acquisition of a private hydro-vac services provider located in Edmonton, AB. The transaction will double Vertex’s hydro-vac fleet with the addition of 11 hydro-vac units and is expected to add ~$5 million in annual revenue. The company acquired primarily services clients in the municipal and utility industries. The acquisition allows Vertex to expand its hydro-vac services and continue pursuing industry diversification.
Mullen Group Ltd. (TSX:MTL) closed its previously announced acquisition of Sherwood Park, AB based Canadian Hydrovac Ltd., a hydrovac services provider to the midstream, pipeline, construction and municipal sectors in Western Canada. The acquisition is estimated to add $25 million in annual revenue to Mullen Group and will be financed through cash and the issuance of shares.
Civeo Corp. (NYSE:CVEO) announced that it has been awarded contracts to supply temporary accommodations for four locations along the 670 km Coastal GasLink pipeline project in BC, on the condition that the LNG export terminal is built. This serves as a strong indication that the $40 billion LNG Canada project is headed for a positive final investment decision, which will see natural gas from northeastern BC transported to the facility near Kitimat, BC before being shipped as LNG to Asian markets.
Suncor Energy Inc. (TSX:SU) announced that it is expecting the Syncrude upgrader project to ramp up to full production in early to mid September 2018. Preliminary investigations indicate that a June disruption was caused by a transformer trip resulting in a site wide loss of power and steam generation.
The US imported a record volume of crude from Canada last week despite the Canadian oil industry’s struggles to deal with widespread transportation bottlenecks. American refiners took 3.73 million bbl/d of Canadian oil for the week ending June 29, 2018, the largest volume in weekly government data tracing back to June 2010. The boost contributed towards total US crude imports of 9.01 million bbls/d, the highest in over a year.