-- Gibson Energy (GEI.TO) closed its previously announced acquisition of Teine Energy's Chauvin Infrastructure Assets.
Gibson, through the deal, acquired a crude oil gathering pipeline system and associated infrastructure connecting Chauvin to the Hardisty oil hub, extending the company's strategic footprint at Hardisty and "reinforcing the stable, contracted nature of its cash flows." The acquisition of the Chauvin infrastructure assets is "underpinned by long-term take-or-pay and area-of-dedication agreements" with Teine Energy, it added.
The company also sanctioned the Hardisty Connection growth project which will directly connect the Chauvin Infrastructure Assets to the company's core terminal and enhance connectivity for customers. Gibson expects to sanction the Chauvin pipeline expansion project to increase effective capacity from 30,000 barrels per day to an expected 45,000 barrels per day, by the end of 2026.
Funding for the $400 million purchase price for the deal was done through a combination of proceeds from Gibson's previously completed $215 million bought deal equity offering and drawings under its existing credit facility.
Shares of the company were last seen down 0.7% at $29.53 on the Toronto Stock Exchange.
Price: $29.53, Change: $-0.22, Percent Change: -0.74%