Spectra Energy (SE) to Acquire Express-Platte Pipeline in $1.49B Deal
Article
Related Press Releases (2)
Related Articles (1)
Related SEC Filings (1)
Stock Quotes (2)
Comments (0)
Tweet
Send to a Friend
Get Alerts SE Hot Sheet
Price: $31.68 +1.08%
Overall Analyst Rating:
BUY (
Down)
Dividend Yield: 3.9%
Revenue Growth %: +3.2%
Overall Analyst Rating:
BUY (
Down)Dividend Yield: 3.9%
Revenue Growth %: +3.2%
Trade SE Now!
Spectra Energy Corp (NYSE: SE) today announced it has entered into a definitive agreement to purchase 100 percent of the ownership interests in the Express-Platte Pipeline System from Borealis Infrastructure, the Ontario Teachers' Pension Plan and Kinder Morgan Energy Partners (NYSE: KMP) for $1.49 billion, consisting of $1.25 billion cash and $240 million of acquired debt.
The 1,717-mile Express-Platte Pipeline System, which begins in Hardisty, Alberta, and terminates in Wood River, Illinois, is comprised of both the Express and Platte crude oil pipelines. The Express pipeline carries crude oil to U.S. refining markets in the Rockies area, specifically Billings and Laurel, Montana, and Casper, Wyoming. The pipeline's capacity is 280,000 barrels a day. The Platte pipeline, which interconnects with Express pipeline in Casper, Wyoming, transports crude oil predominantly from the Bakken and Western Canada to refiners in the Midwest. Platte's capacity ranges from 164,000 barrels a day in Wyoming to 145,000 barrels a day to Wood River, Illinois.
Spectra Energy expects the acquisition will be immediately accretive to earnings, with expected full-year 2013 EBITDA of approximately $130 million and full-year annual EPS accretion in the 3 to 5 cents per share range.
The Express-Platte System is one of just three major pipelines moving crude oil from Western Canada to Rockies and Midwest refineries and markets, representing a significant opportunity for Spectra Energy to participate in the rapidly expanding North American crude oil pipeline market.
Completion of the transaction is subject to customary consents, regulatory approvals and closing conditions. The transaction is expected to close during the first half of 2013.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The 1,717-mile Express-Platte Pipeline System, which begins in Hardisty, Alberta, and terminates in Wood River, Illinois, is comprised of both the Express and Platte crude oil pipelines. The Express pipeline carries crude oil to U.S. refining markets in the Rockies area, specifically Billings and Laurel, Montana, and Casper, Wyoming. The pipeline's capacity is 280,000 barrels a day. The Platte pipeline, which interconnects with Express pipeline in Casper, Wyoming, transports crude oil predominantly from the Bakken and Western Canada to refiners in the Midwest. Platte's capacity ranges from 164,000 barrels a day in Wyoming to 145,000 barrels a day to Wood River, Illinois.
Spectra Energy expects the acquisition will be immediately accretive to earnings, with expected full-year 2013 EBITDA of approximately $130 million and full-year annual EPS accretion in the 3 to 5 cents per share range.
The Express-Platte System is one of just three major pipelines moving crude oil from Western Canada to Rockies and Midwest refineries and markets, representing a significant opportunity for Spectra Energy to participate in the rapidly expanding North American crude oil pipeline market.
Completion of the transaction is subject to customary consents, regulatory approvals and closing conditions. The transaction is expected to close during the first half of 2013.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Applied Materials, Inc. (AMAT) Tops Q2 EPS by 3c, Offers Guidance
- Macy's (M) Posts Q1 EPS of 55c; Comps Up 3.8%; Boosts Dividend 25%, Raises Buyback
- Response Genetics (RGDX) Surges on Blue Shield of California Contract
Create E-mail Alert Related Categories
Corporate News, Hot Corp. News, Mergers and AcquisitionsRelated Entities
Bakken Formation, Crude Oil, Earnings, Ontario Teachers Pension Plan
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
