Latest news with #Montney
Globe and Mail
16 hours ago
- Business
- Globe and Mail
Keyera Announces Sanctioning of KAPS Zone 4 and Provides Other Commercial Updates
CALGARY, AB , /CNW/ - Keyera Corp. (TSX: KEY) ("Keyera") announced today the formal sanctioning of KAPS Zone 4, a strategic extension of its integrated system. This expansion strengthens Keyera's connectivity to the growing liquids-rich Montney regions of northeast British Columbia and northwest Alberta , some of the most active and resource-rich areas in North America . "The sanctioning of KAPS Zone 4 marks another important milestone in the execution of our strategy to grow and extend our value chain," said Dean Setoguchi , President and CEO. "This project reflects strong customer demand for our fully integrated service offerings and our ability to connect to valuable end-markets. By enhancing connectivity and optionality, Zone 4 strengthens our competitive position and delivers greater value to our customers." KAPS Zone 4 is an 85-kilometre extension of the existing KAPS pipeline, connecting Pipestone to Gordondale, Alberta . It will connect to NorthRiver Midstream's Northeast BC Connector project. Together, these systems offer Montney producers a fully integrated and cost-effective route from northeast British Columbia to Fort Saskatchewan area fractionation and Keyera's industry-leading condensate hub. The capital cost of KAPS Zone 4 is expected to be $220 million (net to Keyera), which includes investments in additional pumping capacity on KAPS Zones 1 to 3. The project is targeted to enter service in mid-2027. The project is backed by long-term transportation agreements with several investment-grade Montney producers, averaging 11 years in duration and 75% take-or-pay commitments. The agreements include downstream services such as fractionation, storage, transportation, and marketing, further demonstrating the value of Keyera's integrated offering. Keyera has secured over 75,000 barrels per day of new contracted volumes across KAPS Zones 1 through 4 in recent months, with substantially all volumes also committed to incremental downstream services. Keyera's current and future fractionation capacity, which includes the Fort Saskatchewan Fractionation Unit II debottleneck and the Fort Saskatchewan Fractionation Unit III expansion project, is now substantially fully contracted, supporting strong utilization and returns across the system. Investments in Zone 4 and fractionation expansions directly contribute to the growth of Keyera's long-term, fee-for-service cash flows, supporting continued sustainable dividend growth. In response to growing volumes across Keyera's integrated system, Keyera has entered into an agreement with AltaGas to export an additional 12,500 barrels per day of natural gas liquids via AltaGas' west coast export facilities starting in 2028. This builds on the 12,500 barrels per day announced earlier this year. The agreement will further strengthen Keyera's ability to offer its customers more diversified market access for LPGs, including premium Asian markets, while providing AltaGas with long-term ratable export volumes and cash flows. About Keyera Corp. Keyera Corp. (TSX: KEY) operates an integrated Canadian-based energy infrastructure business with extensive interconnected assets and depth of expertise in delivering energy solutions. Its predominantly fee-for-service based business consists of natural gas gathering and processing; natural gas liquids processing, transportation, storage and marketing; iso-octane production and sales; and an industry-leading condensate system in the Edmonton / Fort Saskatchewan area of Alberta . Keyera strives to provide high quality, value-added services to its customers across North America and is committed to conducting its business ethically, safely and in an environmentally and financially responsible manner. Forward-Looking Statements This news release contains certain statements that constitute forward-looking information within the meaning of applicable Canadian securities legislation (collectively, "forward-looking information"). Forward-looking information is typically identified by words such as "anticipate", "expect", "may", "will", "can", "should", "would", "plan", "intend", "believe", "target", and similar words or expressions, including the negatives or variations thereof. All statements other than statements of historical fact contained in this document are forward-looking information including, without limitation, statements regarding the cost and timing of the KAPS Zone 4 project; the impact of this project on Keyera's stand-alone project return on capital target; the results of additional contracting discussions with third parties and the expected impact on future volumes on KAPS; and expectations around the impact of the agreement with AltaGas on market access. All forward-looking information is based on a number of risks, expectations, assumptions and uncertainties that Keyera has used to develop such information, but which may prove to be incorrect. Such risks, expectations, assumptions and uncertainties include, without limitation, general industry, market and economic conditions; activities of customers, producers and other facility owners; actions by joint venture partners or other partners which hold interests in certain of Keyera's assets; counterparty performance and credit risk; reliance on third parties; actions by governmental authorities; and the ability to obtain regulatory, stakeholder and third-party approvals. Further information about the factors affecting forward-looking information and management's assumptions and analysis thereof, is available in Keyera's Management's Discussion and Analysis for the year ended December 31, 2024 and in Keyera's Annual Information Form available on Keyera's profile on SEDAR+ at While Keyera believes that the expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because Keyera can give no assurance that such expectations will prove to be correct. Readers are cautioned that the foregoing list of important factors is not exhaustive, and they should not unduly rely on the forward-looking information included in this press release. Further, readers are cautioned that the forward-looking information contained herein is made as of the date of this press release. Unless required by law, Keyera does not intend and does not assume any obligation to update any forward-looking information. All forward-looking information contained in this press release is expressly qualified by this cautionary statement. Additional Information For more information about Keyera Corp., please visit our website at or contact: Dan Cuthbertson , General Manager, Investor Relations Katie Shea , Senior Advisor, Investor Relations
Yahoo
17-05-2025
- Business
- Yahoo
Strathcona Resources Ltd (STHRF) Q1 2025 Earnings Call Highlights: Strategic Moves and Growth ...
Release Date: May 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strathcona Resources Ltd (STHRF) has reached definitive agreements to sell substantially all of its Montney business, which is expected to streamline operations and focus on core assets. The company disclosed an investment in MEG Energy and plans to make an offer for the remaining shares, indicating a strategic move to consolidate and expand its oil sands operations. Strathcona Resources Ltd (STHRF) is positioned to become the fifth largest oil producer in Canada, with a focus on long-life, low-decline, high free cash flow oil assets. The proposed acquisition is expected to generate $175 million in annual synergies, including savings from overhead, interest, and operational efficiencies. The acquisition of the largest crude-by-rail terminal in Western Canada provides a strategic hedge against pipeline capacity constraints, potentially enhancing cash flow stability. The company's strategic shift away from natural gas and the Montney business may limit diversification and expose it to oil market volatility. The proposed acquisition of MEG Energy involves complexities, including the need for regulatory approvals and integration challenges. Strathcona Resources Ltd (STHRF) is a comparatively new company with limited trading history, which may affect investor confidence and valuation. The reliance on synergies and operational efficiencies to achieve accretion may not materialize as expected, posing a risk to projected financial benefits. The acquisition strategy involves leveraging, which could increase financial risk if market conditions or interest rates change unfavorably. Warning! GuruFocus has detected 7 Warning Sign with BRC. Q: Can you provide more detail on the strategic rationale behind moving away from the Montney business and focusing on thermal and oil sands? A: Adam Waterous, Managing Partner & CEO, explained that Strathcona remains optimistic about long-term oil demand and skeptical about long-term oil supply, particularly from the US. The decision to sell the Montney business aligns with their focus on long-life, low-decline, high free cash flow oil assets. The acquisition of MEG Energy is seen as highly complementary, offering operational synergies and positioning Strathcona as a significant player in North America without mines or refineries. Q: Could you elaborate on the rail terminal acquisition and its strategic importance? A: Connor Waterous, CFO, stated that acquiring the largest crude-by-rail terminal in Western Canada is part of their strategy to manage risk, particularly the WCS differential. The terminal provides cash flows that are inversely correlated with their upstream business, offering a hedge against pipeline constraints and potential widening differentials. Q: How does the MEG Energy acquisition create value for both companies? A: Adam Waterous highlighted that the acquisition is unusual because both companies gain accretion on various metrics. Strathcona benefits from operational synergies and a strategic fit, while MEG shareholders receive a premium and per-share accretion. The combined entity will have significant cash flow synergies and operational efficiencies. Q: What are the expected synergies from the MEG Energy acquisition? A: The combined business anticipates $175 million in annual synergies, including $50 million from overhead reductions, interest savings due to improved credit ratings, and $75 million from operational efficiencies. These synergies are expected to enhance cash flow and operational performance. Q: How does Strathcona plan to leverage its position as a major oil producer in Canada? A: Adam Waterous emphasized that Strathcona aims to be a leading investment-grade oil company with long-life, low-decline assets. The acquisition positions them as the fifth-largest oil producer in Canada, with a focus on maintaining a strong reserve life index and capitalizing on operational synergies. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
15-05-2025
- Business
- Bloomberg
Strathcona Shifts to Pure Heavy Oil Producer With $2 Billion Montney Sale
Canadian oil tycoon Adam Waterous's Strathcona Resources Ltd. agreed to sell its assets in the Montney shale formation in western Canada in a shift that makes it a pure heavy oil producer. Strathcona is disposing of gas-focused operations in three separate transactions worth C$2.8 billion ($2 billion). The largest will see the company sell its Kakwa asset to ARC Resources Ltd. for C$1.7 billion in cash and assumed lease obligations.
Reuters
15-05-2025
- Business
- Reuters
Canadian oil and gas producer Strathcona sells Montney assets for $2.84 billion
May 14 (Reuters) - Canadian oil and gas producer Strathcona Resources ( opens new tab said on Wednesday that it has sold all of its Montney assets for about $2.84 billion. The company sold its Kakwa asset to ARC Resources ( opens new tab for around $1.7 billion, its Grade Prairie asset for around $850 million, and its Groundbirch asset to Tourmaline Oil ( opens new tab for $291.5 million. Strathcona stated that the Kakwa and Grande Prairie asset sales are expected to close in the early part of the third quarter this year, while the Groundbirch sale is anticipated to close in the second quarter. The company also revised its guidance, projecting second-quarter 2025 production at 180 Mboe/d. Full-year 2025 production is expected to range between 150–160 Mboe/d, with 120–125 Mbbls/d anticipated in the third and fourth quarters following the Montney asset dispositions, it said in a statement. Strathcona went public in 2023 after acquiring its smaller rival Pipestone Energy. It has a market capitalization of $4.17 billion, as per LSEG data.
Yahoo
15-05-2025
- Business
- Yahoo
Canadian oil and gas producer Strathcona sells Montney assets for $2.84 billion
(Reuters) -Canadian oil and gas producer Strathcona Resources said on Wednesday that it has sold all of its Montney assets for about $2.84 billion. The company sold its Kakwa asset to ARC Resources for around $1.7 billion, its Grade Prairie asset for around $850 million, and its Groundbirch asset to Tourmaline Oil for $291.5 million. Strathcona stated that the Kakwa and Grande Prairie asset sales are expected to close in the early part of the third quarter this year, while the Groundbirch sale is anticipated to close in the second quarter. The company also revised its guidance, projecting second-quarter 2025 production at 180 Mboe/d. Full-year 2025 production is expected to range between 150–160 Mboe/d, with 120–125 Mbbls/d anticipated in the third and fourth quarters following the Montney asset dispositions, it said in a statement. Strathcona went public in 2023 after acquiring its smaller rival Pipestone Energy. It has a market capitalization of $4.17 billion, as per LSEG data.
