Pembina Pipeline to buy midstream assets from Veren in C$400M deal (NYSE:PBA)

Pembina Pipeline (NYSE:PBA) said earlier Monday it agreed to acquire some infrastructure assets in Alberta’s Montney shale from Veren (VRN) for ~C$400M (US295M).

Pembina (PBA) said its Pembina Gas Infrastructure unit, which is jointly owned by KKR, will acquire four oil battery sites in the Gold Creek and Karr areas, which have a natural gas handling capacity of 320M cf/day and liquids handling capacity of 53K bbl/day.

Veren (VRN), formerly Crescent Point Energy, will retain operatorship of the acquired assets while also acquiring full operatorship of four oil battery sites which are currently operated by PGI.

PGI also said it will fund as much as $300M, of which about a third already has been committed, for Veren’s (VRN) future battery and gathering infrastructure in the area.

Veren (VRN) said it expects the deal proceeds will result in C$1.3B of total debt reduction in 2024.