Energy Transfer Executes Agreement to Sell Its Interest in Energy Transfer Canada

Member Updates,

Transaction allows Energy Transfer to redeploy capital within its core footprint in the U.S.

Energy Transfer LP announced the signing of a definitive agreement on March 1 to sell its 51 percent interest in Energy Transfer Canada ULC (“Energy Transfer Canada”) to a joint venture which includes participation by Pembina Pipeline Corporation and global infrastructure funds managed by KKR at a valuation of approximately C$1.6 billion (U.S. $1.3 billion) including debt and preferred equity. The sale is expected to result in cash proceeds to Energy Transfer of approximately C$340 million (U.S. $270 million), subject to certain purchase price adjustments. The transaction is expected to close by the third quarter of 2022.

Energy Transfer Canada, based in Calgary, is one of Alberta’s largest licensed gas processors. Its assets include six natural gas processing plants that have a combined operating capacity of 1,290 million cubic feet per day and a network of approximately 848 miles of natural gas gathering and transportation infrastructure in the Western Canadian Sedimentary Basin.

The agreement allows Energy Transfer to divest its high-quality Canadian assets at an attractive valuation to further deleverage its balance sheet and redeploy capital within its U.S. footprint.

Energy Transfer LP owns and operates one of the largest and most diversified portfolios of energy assets in North America, with a strategic footprint in all of the major U.S. production basins.