February 8, 2018 / 11:53 AM / 10 months ago

BRIEF-MEG Energy Announces Sale Of Access Pipeline And Stonefell Terminal For $1.61 Bln

Feb 8 (Reuters) - MEG Energy Corp:

* PRESS RELEASE - MEG ENERGY ANNOUNCES THE SALE OF ACCESS PIPELINE AND STONEFELL TERMINAL FOR $1.61 BILLION

* MEG ENERGY CORP - DEAL FOR ‍CASH AND OTHER CONSIDERATION OF $1.61 BILLION​

* MEG ENERGY - INTENDS TO INCREASE ITS 2018 CAPITAL BUDGET FROM $510 MILLION TO $700 MILLION TO FUND APPROXIMATELY 70% OF PHASE 2B BROWNFIELD EXPANSION IN 2018​

* MEG ENERGY CORP - WILL RECEIVE $1.52 BILLION IN CASH AT CLOSE, & CREDIT OF $90 MILLION TOWARD FUTURE EXPANSIONS OF ACCESS PIPELINE

* MEG ENERGY - ‍PRODUCTION IS ANTICIPATED TO BEGIN RAMPING UP IN SECOND HALF OF 2019 TO REACH FULL BROWNFIELD EXPANSION CAPACITY OF 13,000 BPD IN 2020​

* MEG ENERGY CORP - ‍TRANSACTION COMPRISES SALE OF ACCESS PIPELINE FOR TOTAL CONSIDERATION OF $1.4 BILLION, AND SALE OF STONEFELL FOR $210 MILLION​

* MEG ENERGY CORP - ‍MEG’S AVERAGE AND EXIT PRODUCTION GUIDANCE FOR 2018 REMAINS UNCHANGED​

* MEG ENERGY CORP - ‍AS A RESULT OF DEAL, MEG EXPECTS ITS NET CASH COSTS TO INCREASE BY APPROXIMATELY $50 MILLION ON AN ANNUALIZED BASIS​

* MEG ENERGY- ‍AS PART OF DEAL, CO & WOLF HAVE ENTERED INTO TRANSPORTATION SERVICES AGREEMENT FOR INITIAL TERM OF 30 YEARS​

* MEG ENERGY CORP - ‍PRODUCTION ANTICIPATED TO BEGIN RAMPING UP IN H2 2019 TO REACH FULL BROWNFIELD EXPANSION CAPACITY OF 13,000 BPD IN 2020​

* MEG ENERGY-‍UPON CLOSING, CASH PROCEEDS FROM DEAL TO REPAY ABOUT C$1.225 BILLION OF CO’S SENIOR SECURED TERM LOAN, OTHERS

* MEG ENERGY CORP - ‍MEG’S AVERAGE AND EXIT PRODUCTION GUIDANCE FOR 2018 REMAINS UNCHANGED​

* MEG ENERGY CORP - ‍IN 2020 CO ANTICIPATES DEBT TO EBITDA TO COME INTO RANGE OF 2 TO 3 TIMES WHILE GENERATING FREE CASH FLOW AT CURRENT PRICES​

* MEG ENERGY - ‍HAS ENTERED INTO AGREEMENT WITH WOLF MIDSTREAM FOR SALE OF CO’S 50% INTEREST IN ACCESS PIPELINE & 100% INTEREST IN STONEFELL TERMINAL​ Source text for Eikon: Further company coverage:

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