Pembina Pipeline and Inter Pipeline have entered into an agreement for Pembina to acquire all of the issued and outstanding shares of Inter Pipeline in a share-for-share transaction. The transaction will produce one of the biggest energy infrastructure companies in Canada with a pro forma enterprise value of $53 billion.
The arrangement will support and grow an extensive value chain for natural gas, natural gas liquids and crude oil, from wellhead to end user. Additionally, past and future investments by both companies will help access new demand markets, helping Pembina and its customers.
Key Highlights:
- Combination of connected and complementary assets, resulting in greater vertical integration, expanded customer service offerings, and enhanced global market reach.
- Near-term synergies of $150 to $200 million annually, which are expected to immediately contribute to meaningful adjusted cash flow per share accretion upon closing of the transaction.
- Once the Heartland Petrochemical Complex is in full service, the combined company is expected to generate $1.1 billion to $1.4 billion of adjusted cash flow from operating activities after dividends annually, greatly enhancing its ability to fund existing and future capital investment.
- Arrangement will accelerate and de-risk accretive investment opportunities across various value chains, allowing for deployment of capital into projects at attractive rates of return.
- Strong financial platform, in adherence with Pembina’s financial guardrails.
- Pembina’s monthly dividend to increase by $0.01 per share, or 4.8 percent, to $0.22 per share following closing of the transaction.
- Shared commitment to environmental, social and governance priorities including investments that reduce the combined company’s emissions intensity to contribute to a lower carbon economy.
- Inter Pipeline shareholders will benefit immediately from an offer that provides a premium to the current trading price.
For more information visit www.interpipeline.com
1st June 2021
