Encana, Cutbank Ridge Partnership, and Veresen close Montney midstream deal

On March 31, 2015, Encana Corporation, and its affiliate, Cutbank Ridge Partnership (CRP), a partnership between Encana and a subsidiary of Mitsubishi Corporation, completed the sale of natural gas gathering and compression assets supporting development in the Montney area of northeastern British Columbia to Veresen Midstream Limited Partnership, 50/50 limited partnership of Veresen Inc. and affiliates of Kohlberg Kravis Roberts & Co. L.P. The aggregate purchase price of the acquisition was approximately $760 million.

Under the terms of the transaction, Veresen Midstream will provide gathering and compression services to each of Encana and CRP under separate fee-for-service arrangements in a dedicated area of mutual interest within the Montney resource play. 

Veresen Midstream has agreed to undertake up to $5 billion of new midstream expansion to support development by Encana and CRP within the area of dedication. 

Encana was represented by Don MacDiarmid, Vice President, Legal Services, and Bennett Jones LLP by a team led by Patrick Maguire and including Chris Skelton, Duncan McPherson, Geoff Stenger, Megan Bertram, and Helen Cox (corporate/M&A) and Beth Riley (regulatory). 

Veresen Midstream was represented by Patrick Trumpy, Corporate Counsel, Veresen Inc., and Torys LLP by a team comprising Derek Flaman, David Cuschieri, Peter Danner, Matt McMahon, and Amy Maginley (corporate/M&A), Dany Assaf and Marina Chernenko (regulatory) and Craig Maurice (tax).