TransCanada (TRP) to Acquire BP's (BP) Stake in Crossfield Gas Storage for C$210M
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Price: $36.09 +0.50%
Overall Analyst Rating:
NEUTRAL ( Up)
Dividend Yield: 9.7%
EPS Growth %: -35.7%
Overall Analyst Rating:
NEUTRAL ( Up)
Dividend Yield: 9.7%
EPS Growth %: -35.7%
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TransCanada Corporation (NYSE: TRP) (TransCanada) announced today that it has entered into an agreement to acquire BP's (NYSE: BP) 40 per cent interest in the assets of the Crossfield Gas Storage facility. In addition, TransCanada will acquire BP's interest in CrossAlta Gas Storage & Services Ltd., an affiliated marketing joint venture between the two companies.
This $210 million transaction will give TransCanada 100 per cent ownership in the facility located in Crossfield, Alberta, about 50 kilometres north of the City of Calgary. This acquisition adds an additional 27 billion cubic feet of natural gas storage capacity to TransCanada's existing portfolio in Alberta. TransCanada has operated the Crossfield Gas Storage facility since 2011.
As part of the transaction, TransCanada will acquire BP's base gas in the facility, all of BP's mineral interests in the Crossfield area including BP's ownership interest in the Elkton production unit and related surface land. BP will maintain a transactional relationship with TransCanada as a storage customer going forward.
Closing of the transaction is subject to certain conditions being satisfied and is expected to occur by the first quarter of 2013.
This $210 million transaction will give TransCanada 100 per cent ownership in the facility located in Crossfield, Alberta, about 50 kilometres north of the City of Calgary. This acquisition adds an additional 27 billion cubic feet of natural gas storage capacity to TransCanada's existing portfolio in Alberta. TransCanada has operated the Crossfield Gas Storage facility since 2011.
As part of the transaction, TransCanada will acquire BP's base gas in the facility, all of BP's mineral interests in the Crossfield area including BP's ownership interest in the Elkton production unit and related surface land. BP will maintain a transactional relationship with TransCanada as a storage customer going forward.
Closing of the transaction is subject to certain conditions being satisfied and is expected to occur by the first quarter of 2013.
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