Keyera Energy Inc., a wholly owned subsidiary of Keyera Corp., has entered into an agreement to acquire a logistics and liquids blending terminal located near Tulsa, Oklahoma. The announcement comes less than ten days after the company announced plans for a new oil storage and terminal business in Cushing, Oklahoma.
The new Tulsa terminal receives, blends and delivers diluent, the majority of which is transported by pipeline from the Mont Belvieu area to the Chicago area and ultimately into the Alberta market.
The terminal also has exclusive access to a nearby rail-to-truck transloading facility. Subject to typical closing conditions, the acquisition is expected to close in the second quarter of 2018 for approximately $80m plus up to $10m in additional consideration over five years.
Keyera is well positioned to fund this acquisition, along with its current growth capital programme of $1.0bn to $1.1bn.
“This acquisition builds on Keyera’s focused investment strategy for the United States, where we are selectively extending our liquids infrastructure into key U.S. liquids hubs,” said David Smith, Keyera’s President and Chief Executive Officer. “The terminal is situated approximately 50 miles from our recently announced Wildhorse development, providing opportunities for operations integration and commercial synergies. These assets, along with our Hull Terminal, provide the foundation for Keyera to execute a strategy in the U.S. that is consistent with our proven strategy in Canada.”
For more information, visit: www.keyera.com
29th May 2018