Whitecap Sells Gas Assets to Pembina, Secures Funding for New Facility
(Reuters) — Canadian oil and gas producer Whitecap Resources said on Tuesday it would raise about C$520 million ($378.73 million) by selling working interests in two projects and securing investment for an upcoming facility, in separate deals.
According to terms of one of the deals, Pembina Gas Infrastructure (PGI), jointly owned by Pembina Pipeline and private equity firm KKR, would acquire a 50% working interest in Whitecap's Kaybob gas processing complex and help develop its upcoming Lator facility.
Gross proceeds related to this transaction are about C$420 million and PGI would get access to production volumes from the two facilities.
The Kaybob complex has a natural gas processing capacity of 165 million cubic feet per day. Whitecap would remain its operator and retain the rest of the working interest after the deal's closing, which is expected to take place in the third quarter.
The Lator facility is expected to start up in late 2026 to early 2027 and PGI would own parts of the infrastructure in it.
Separately, Topaz Energy has acquired a 50% working interest in Whitecap's Musreau facility for C$100 million.
The Musreau facility currently produces at a rate of 14,000 barrels of oil equivalent per day and Whitecap plans to reach full capacity by the end of 2024.
This deal closed on June 24.
($1 = 1.3730 Canadian dollars)
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