CALGARY, ALBERTA--(Marketwired - Dec. 28, 2016) - Veresen Inc. ("Veresen") (TSX:VSN) today announced the sanction of $195 million ($93 million net to Veresen) in new capital projects at Veresen Midstream.
"With the sanction of this additional capital, Veresen now has over $1.4 billion of projects under construction," said Don Althoff, President and CEO of Veresen. "We expect these capital projects to deliver incremental per share growth as Veresen remains fully funded without the need to access capital markets. As Veresen Midstream's capital projects come into service, the significant increase in cash flow will reduce Veresen's leverage and bolster our financial flexibility to fund new growth opportunities generated from our strong footprint in the heart of the Montney play."
Two new projects have been sanctioned by the Cutbank Ridge Partnership ("CRP") to facilitate ongoing development plans while also minimizing total infrastructure costs and surface footprint. The South Central Liquids Hub project has been sanctioned to allow the existing gathering system in the area to handle development anticipated over the next several years and is expected to be in service by the end of the second quarter of 2017. The South Central Liquids Hub can be expanded in the future to meet CRP's long-term liquids handling needs as well as provide services to third party producers in the area.
The Tower Liquids Hub has also been sanctioned to provide a lower overall cost and more commercially flexible solution for the handling and storage of NGLs produced at the Sunrise, Tower and Saturn Phase II processing facilities. The project includes infrastructure to deliver the NGLs into a third party system. The Tower Liquids Hub is expected to be in service in the third quarter of 2017. Part of the Tower Liquids Hub will include capacity to handle third party NGLs that could be either trucked in or connected directly by a future pipeline.
Both the South Central Liquids Hub and the Tower Liquids Hub are governed by the Dawson Midstream Service Agreement, which is in place for the next 28 years.
About Veresen Inc.
Veresen is a publicly-traded dividend paying corporation based in Calgary, Alberta that owns and operates energy infrastructure assets across North America. Veresen is engaged in three principal businesses: a pipeline transportation business comprised of interests in the Alliance Pipeline, the Ruby Pipeline and the Alberta Ethane Gathering System; a midstream business which includes a partnership interest in Veresen Midstream Limited Partnership, which owns assets in western Canada, and an ownership interest in Aux Sable, which owns a world-class natural gas liquids (NGL) extraction facility near Chicago, and other natural gas and NGL processing energy infrastructure; and a power business comprised of a portfolio of assets in Canada. Veresen is also developing Jordan Cove LNG, a six million tonne per annum natural gas liquefaction facility proposed to be constructed in Coos Bay, Oregon, and the associated Pacific Connector Gas Pipeline. In the normal course of business, Veresen regularly evaluates and pursues acquisition and development opportunities.
Veresen's Common Shares, Cumulative Redeemable Preferred Shares, Series A, Cumulative Redeemable Preferred Shares, Series C, and Cumulative Redeemable Preferred Shares, Series E trade on the Toronto Stock Exchange under the symbols "VSN", "VSN.PR.A", "VSN.PR.C" and "VSN.PR.E", respectively. For further information, please visit www.vereseninc.com.
Certain information contained herein relating to, but not limited to, Veresen and its businesses and the offering of the notes, constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that Veresen expects or anticipates may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "may", "estimate", "anticipate", "believe", "expect", "plan", "intend", "target", "project", "forecast" or similar words suggesting future outcomes or outlook. Forward-looking statements in this news release include, but are not limited to, statements with respect to: the impact of the additional capital expenditures on Veresen's financial performance and ability to fund growth projects; and the anticipated cost, in service dates and operating capabilities of the South Central Liquids Hub and the Tower Liquids Hub. Readers are also cautioned that such additional information is not exhaustive. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these factors are independent and management's future course of action would depend on its assessment of all information at that time. Although Veresen believes that the expectations conveyed by the forward-looking information are reasonable based on information available on the date of preparation, no assurances can be given as to future results, levels of activity and achievements. Undue reliance should not be placed on the information contained herein, as actual results achieved will vary from the information provided herein and the variations may be material. Veresen makes no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof, and Veresen does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement.