Energy Transfer Sells Its 51% Interest in Energy Transfer Canada

By Chris Wack

Energy Transfer LP said it is selling its 51% interest in Energy Transfer Canada ULC to a joint venture, which includes participation by Pembina Pipeline Corp. and global infrastructure funds managed by KKR & Co., at a valuation of $1.3 billion, including debt and preferred equity.

The company said it expects to see cash proceeds of $270 million from the sale, subject to certain purchase price adjustments.

The transaction is expected to close by the third quarter of 2022.

Energy Transfer said the agreement allows it to divest its Canadian assets to further deleverage its balance sheet and use the capital within its U.S. footprint.

Energy Transfer Canada, based in Calgary, is one of Alberta's largest licensed gas processors. Its assets include six natural gas processing plants that have a combined operating capacity of 1.29 billion cubic feet per day and a network of 848 miles of natural gas gathering and transportation infrastructure in the Western Canadian Sedimentary Basin.

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(END) Dow Jones Newswires

March 01, 2022 08:25 ET (13:25 GMT)

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