$1.4 Billion Deal: Devon Offloads 50% of Access Pipeline

Devon Energy Corp. (Devon) has sold its 50 percent ownership interest in Access Pipeline to the Canada Pension Plan Investment Board (CPPIB) and Wolf Midstream Inc. for CAD $1.4-billion, according to an article in the Globe and Mail.

Image: Globe and Mail
Image: Globe and Mail

Running between the Christina Lake area and Edmonton, the pipeline is used to transport blended bitumen and diluent.

According to a press release from Devon, the agreement also includes the potential for an additional CAD $150-million to be paid incrementally if the company’s Pike thermal project goes ahead.

Devon’s announcement quotes Dave Hager, its president and CEO: “With the highly-accretive sale of Access, Devon’s divestiture program is now complete with proceeds totaling $3.2 billion, surpassing the top end of our $2 billion to $3 billion guidance range.”

Click here to read the article in the Globe and Mail, and here to read the press release from Devon Energy.

 

 

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