MEG Energy to Sell Access Pipeline, Stonefell Terminal
By Colin Kellaher
MEG Energy Corp. (MEG.T) on Thursday said it agreed to sell its 50% interest in Access Pipeline and its Stonefell Terminal to Wolf Midstream Inc. in a transaction valued at about 1.61 billion Canadian dollars ($1.28 billion).
MEG said it will receive C$1.52 billion in cash at closing, along with a credit of C$90 million whereby the company won't pay incremental tolls to fund future expansions of Access Pipeline.
The Calgary energy company said it will use proceeds from the transaction to repay about C$1.225 billion of its senior secured term loan and to fully fund its C$275 million brownfield expansion at the Phase 2B facility. MEG said it will increase its 2018 capital budget to C$700 million from C$510 million to fund about 70% of the brownfield expansion in 2018.
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(END) Dow Jones Newswires
February 08, 2018 08:08 ET (13:08 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.