Wolf Midstream to acquire 50% stake in Access Pipeline

CANADA - Wolf Midstream Inc (Wolf) agreed to acquire the remaining 50% interest, which it did not already own, in Access Pipeline Inc, a Calgary-based owner and operator of heavy oil transportation pipeline, jointly owned by MEG Energy Corp (MEG) and Wolf Midstream Inc, for a total of CAD 1.4 bil (USD 1.114 bil). The consideration was to consist of CAD 1.31 bil (USD 1.042 bil) in cash and up to CAD 90 mil (USD 71.616 mil) in profit-related payments. Concurrently, Wolf agreed to acquire Stonefell Terminal of MEG, for a total CAD 210 mil (USD 167.104 mil).

The purposes of the transaction were for MEG Energy Corp to strengthen their existing operations by pursuing economic growth projects, surface attractive value and terms that will allow the company to pay down debt and to offset incremental transportation costs.

Date Announced: 02/08/2018
Deal Status (as of publication date): Pending
Deal Value (mil): $1,400

RBC Capital Markets (Financial Advisor)
Norton Rose Fulbright Canada LLP (Counsel)

BMO Capital Markets (Financial Advisor)
Credit Suisse Group (Financial Advisor)
Burnet, Duckworth & Palmer LLP (Counsel)
Latham & Watkins LLP (Counsel)
Osler, Hoskin & Harcourt LLP (Counsel to Financial Advisor)

Wolf Midstream Inc, located in Calgary, Canada, provides oil and gas field exploration services, Long term support for asset development and operation, Greenfield construction while having financial flexibility, disciplined project management and creative approaches to risk and commercial structure to provide additional value. It also invests in Western Canadian energy infrastructure.

Canada Pension Plan Investment Board is a pension fund. The Company was founded in December 1997 and is located in Toronto, Canada.

Access Pipeline Inc, located in Calgary, Alberta, owns and operates a heavy oil transportation pipeline. It has primary field operations and pipeline control center based office in Fort Saskatchewan, Alberta. It also maintains a field office in Conklin, Alberta.

MEG Energy Corp, located in Calgary, Canada, is an oil and gas exploration and production company focused on sustainable in situ development and production in the Southern Athabasca oil sands region of Alberta. Canada. The company was founded in 1999.

*List of advisors are those known at press time.