Veren strategic infrastructure transaction in Alberta Montney

On September 9, 2024, Veren Inc. ("Veren") announced it entered into a strategic long-term partnership with Pembina Gas Infrastructure Inc. ("PGI"), a joint venture between Pembina Pipeline Corporation and KKR, related to certain infrastructure assets in the Alberta Montney, which includes Veren selling primarily all its working interest in four oil battery sites in the Gold Creek and Karr areas, while maintaining full operatorship of these sites, to PGI, as well as Veren acquiring operatorship in certain battery sites currently operated by PGI.

Pursuant to the transaction Veren will also enter into a long-term area of dedication and take-or-pay commitment with PGI at such battery sites, pursuant to which Veren will acquire a firm processing commitment for 100% of capacity at the Patterson Creek Gas Plant and receive priority access for all its products at the oil battery sites and pursuant to which PGI agreed to fund up to C$300 million in future infrastructure development in Veren’s Alberta Montney assets area.

Upon closing, Veren received net cash proceeds of C$400 million related to this transaction.

Further information can be found on Canada Newswire’s website.

Pembina Gas Infrastructure is a premier gas processing entity in Western Canada.

Veren is a leading North American oil producer with assets in central Alberta and southeast and southwest Saskatchewan.