MEG Energy in sale of Access Pipeline and Stonefell terminal for $1.61 billion

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MEG Energy Corp. this morning announced an agreement with Wolf Midstream Inc. for the sale of the company's 50 per cent interest in Access Pipeline and 100 per cent interest in Stonefell Terminal for cash and other consideration of $1.61 billion.

Wolf Midstream nearly two years ago bought out Devon Energy Corporation’s 50 per cent interest in Access. MEG had been looking to unload its 50 per cent interest as well for some time.

Wolf invests in Western Canadian energy infrastructure. The company is backed by the Canada Pension Plan Investment Board (CPPIB), an investment management organization responsible for the investment of Canada Pension Plan (CPP) funds.

As part of the transaction announced today, MEG and Wolf have entered into a Transportation Services Agreement (TSA) dedicating MEG's Christina Lake production and condensate transport to Access Pipeline for an initial term of 30 years.