Keyera Corp. said July 7 it agreed to acquire an additional 35% ownership interest in the Alder Flats Plant from Bellatrix Exploration Ltd. (NYSE: BXE) for C$112.5 million (US$86.2 million).
The Alder Flats Plant, which is located in west central Alberta, currently has a licensed capacity of 110 million cubic feet per day (MMcf/d). A second phase is expected to have a design inlet capacity of 120 MMcf/d.
Phase two's target onstream date is in the first half of 2018. Bellatrix is responsible for constructing phase two and funding 60% of the costs, the release said.
Keyera's acquisition includes additional working interest in the facilities, a 10-year take-or-pay commitment, an area dedication agreement and a prepayment of 35% of the estimated future construction costs of the plant's second phase.
Upon closing, Keyera will own 70% of the facilities. Bellatrix will continue to be an owner and the operator.
The acquisition is subject to typical closing conditions and is expected to close in August.
Recommended Reading
Williston Warriors: Enerplus’ Long Bakken Run Ends in $4B Chord Deal
2024-02-22 - Chord Energy and Enerplus are combining to create an $11 billion Williston Basin operator. The deal ends a long run in the Bakken for Enerplus, which bet on the emerging horizontal shale play in Montana nearly two decades ago.
Chord Buying Enerplus to Create a Bakken Behemoth
2024-02-22 - Chord Energy said Feb. 21 it will acquire Enerplus Corp. for nearly $4 billion in a stock-and-cash deal to potentially create the largest producer in the Williston Basin.
Continental Resources Makes $1B in M&A Moves—But Where?
2024-02-26 - Continental Resources added acreage in Oklahoma’s Anadarko Basin, but precisely where else it bought and sold is a little more complicated.
Chord, Enerplus’ $4B Deal Clears Antitrust Hurdle Amid FTC Scrutiny
2024-04-08 - Chord Energy and Enerplus Corp.’s $4 billion deal is moving forward as deals by Chesapeake, Exxon Mobil and Chevron experience delays from the Federal Trade Commission’s requests for more information.
Report: Devon Energy Targeting Bakken E&P Enerplus for Acquisition
2024-02-08 - The acquisition of Enerplus by Devon would more than double the company’s third-quarter 2023 Williston Basin production.