Rangeland Energy to sell Canadian midstream business to Kingston Midstream Alberta
Rangeland Energy and its financial sponsor, EnCap Flatrock Midstream, have entered a definitive agreement to sell Rangeland Midstream Canada Ltd. to Kingston Midstream Alberta Limited. The all-cash transaction’s overall value has not been disclosed. The deal is scheduled for completion by the end of Q3 2023, subject to obtaining the necessary regulatory approvals.
Key Details of the Midstream Assets Transaction
The assets in this transaction mainly include the Marten Hills Pipeline System in the core of the Marten Hills region of north-central Alberta, part of the Clearwater play. The pipeline system, consisting of crude oil and condensate pipelines both spanning 82 kilometers (51 miles), was placed into operation in July 2020. The pipeline system links with a third-party pipeline serving the Edmonton, Alberta hub and refining market. Rangeland Canada’s field employees and Athabasca office are set to remain with the business, becoming part of Kingston, which has a strong reputation for safety and reliable operations.
Statements from Key Stakeholders
Rangeland Midstream Canada President, Briton Speer, said, “From the outset, our goal was to demonstrate to the producer community that the midstream model in Canada can be done differently.” Similarly, Rangeland Energy CEO, Chris Keene, mentioned, “The entire Rangeland team has done an outstanding job exporting our proven US brand to Canada.” EnCap Flatrock Midstream Managing Partner and COO, Morriss Hurt, also praised the Rangeland team for achieving an attractive valuation in Canada.
About Rangeland Energy and Partners Involved
Founded in 2009, Rangeland Energy focuses on midstream infrastructure for various petroleum products and is headquartered in Sugar Land, Texas. Rangeland Midstream Canada was established in 2016 and offers a full range of midstream services, including oil and gas gathering, processing, terminaling, and transportation. The financial advisory for this transaction was provided by Scotiabank, and Weil, Gotshal & Manges LLP acted as lead counsel to Rangeland Canada.
In summary, the sale of Rangeland Midstream Canada to Kingston Midstream Alberta is yet another strategic shift in the Canadian midstream sector. While the overall transaction value remains undisclosed, the deal is poised to conclude by the end of Q3 2023, marking a significant milestone for both companies involved.