AEC subsidiary to sell Alberta Oil Sands Pipeline.CALGARY, AB, Nov. 1 /PRNewswire/
- AEC's subsidiary AEC AEC US Atomic Energy Commission
Noun 1. AEC - a former executive agency (from 1946 to 1974) that was responsible for research into atomic energy and its peacetime uses in the United States
Atomic Energy Commission Pipelines, L.P. has reached an agreement to sell its shares in Alberta Oil Sands Pipeline Ltd. (AOSPL) to Pembina Pipeline Corporation for $225 million. AEC carried a net book value of approximately $150 million for AOSPL. The transaction is subject to customary closing conditions and regulatory approval. It is expected to close by December 31, 2001.
AOSPL is the exclusive transporter of synthetic oil production from Syncrude Canada Ltd.'s plant, near Fort McMurray, Alberta Fort McMurray, is a community in the Regional Municipality of Wood Buffalo, in the northeastern part of Alberta, Canada. Although it is commonly referred to and thought of as being a city, Fort McMurray is not incorporated. , to Edmonton. The 430-kilometre pipeline currently transports about 220,000 barrels of oil per day under a long-term transportation agreement with the Syncrude participants. AEC has a 13.75 percent interest in Syncrude. Transportation charges on Syncrude production will not be impacted by the sale.
"The agreed to sale of AOSPL follows the recent sale of our Jonah Gas Gathering System in Wyoming. The realization by AEC from these transactions will total close to $800 million and underscores the value of AEC's midstream assets. These sales will have only a modest impact on the future income from AEC's remaining core midstream assets," said Hector McFadyen, President of AEC Midstream. As of Sept. 30, 2001, AEC's midstream assets had a book value of $2.9 billion and are forecast to generate $300 million in operating cash flow Operating cash flow
Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. in 2001.
The AOSPL sale further strengthens AEC's financial position. On a pro forma basis at September 30, 2001, AEC's upstream debt to capitalization is 34 percent and upstream debt to cash flow, on a trailing 12-month basis, is 1.1 times. AEC's midstream debt to capitalization remains unchanged at 60 percent. In addition, AEC has cash and unused bank lines of $2.7 billion.
AEC (Alberta Energy Company Ltd.) is focused on Growth, Value and Performance as it builds a Super-Independent oil and gas company. This strategy capitalizes on the world-class assets and high-quality, long-life reserves that AEC has established in its three strong growth platforms - Western Canada, the U.S. Rockies and Ecuador. Last year, the Company set a target to double production from existing assets within five years.
As one of North America's largest independent oil and gas producers, AEC's daily production is expected to exceed 370,000 barrels of oil equivalent in 2001. The Company is also looking to establish additional growth platforms through new ventures exploration in Alaska, the Mackenzie Delta, the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico
Golfo de Mexico
Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , Australia, West Africa and Azerbaijan. Midstream natural gas storage and oil pipelines assets comprise approximately 20 percent of the Company's asset base and provide a stable source of cash flow. Currently, AEC's enterprise value is about $14 billion.
AEC's Common Shares trade on The Toronto Stock Exchange Toronto Stock Exchange (TSE)
Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (AEC) and on the New York Stock Exchange New York Stock Exchange (NYSE)
World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (AOG AOG Assemblies Of God
AOG Aircraft On Ground
AOG Association of Graduates
AOG Act of God (insurance)
AOG Gasoline Tanker
AOG Army of God (militant anti-abortion group)
AOG Air Operations Group ). AEC web site: www.aec.ca.
ADVISORY - Certain information regarding the Company set forth in this
document, including management's assessment of the Company's future plans
and operations, may constitute forward-looking statements under
applicable securities law and necessarily involve risks associated with
oil and gas exploration, production, marketing, and transportation such
as loss of market, volatility of prices, currency fluctuations,
imprecision of reserves estimates, environmental risks, competition from
other producers and ability to access sufficient capital from internal
and external sources. As a consequence, actual results may differ
materially from those anticipated in the forward-looking statements.