On March 22, 2018, Wolf Midstream Inc. (Wolf Midstream) successfully closed the acquisition from MEG Energy Corp. (MEG) of MEG’s 50-per-cent ownership interest in Access Pipeline and a 100-per-cent ownership interest in the Stonefell Terminal for $1.52 billion, including capital commitments of approximately $90 million. Wolf Midstream also completed an amendment and restatement of its senior secured credit facilities, which were upsized on the date of the acquisition to $1.5 billion, in order to provide debt financing for the acquisition.
Following this acquisition, Wolf Midstream will own 100 per cent of Access Pipeline in addition to being its sole operator. This agreement includes an initial 30-year commitment from MEG, pertaining to transportation services on Access Pipeline and the use of Stonefell Terminal. The Access Pipeline system includes pipelines that transport blended bitumen and diluent between the Christina Lake area of Northeastern Alberta and Edmonton, while the Stonefell Terminal connects MEG’s production facilities through the Access Pipeline system to multiple markets.
Wolf Midstream is a Calgary-based energy infrastructure company led by a focused team of industry veterans. The Wolf Midstream team has a proven track record in the execution of creative midstream solutions that benefit their customers. Wolf Midstream invests in Western Canadian energy infrastructure.
Norton Rose Fulbright Canada LLP advised Wolf Midstream with a team that included Richard Borden, KayLynn Litton, Ryan Keays, Rujuta Patel, Lincoln Mitchell, Sean Wallace, and Matthew Longstaff.
Burnet, Duckworth & Palmer LLP provided external counsel for MEG with a team that included Alicia Quesnel, Sean Korney, Carolyn Wright, Larissa Roche and Fraser Wayne (energy), Annette Lambert (real estate), Brittney LaBranche (competition) and Bill Maslechko and Jeff Oke (securities).
Blake, Cassels & Graydon LLP acted for the bank syndicate, which provided the debt financing for the acquisition, with a team that included Michael McIntosh and Andrew Kolody.
Osler, Hoskin & Harcourt LLP advised BMO Capital Markets, which acted for MEG, with a team consisting of Jeremy Fraiberg and Don Gilchrist (corporate).