Veresen Inc. (TSX:VSN) announced May 24 that it has entered into a definitive agreement for the sale of its 33-MW Glen Park hydropower facility for proceeds of US$61 million plus working capital at closing.
Glen Park, located near Watertown in upstate New York, is contract operated and sells its output on a month-to-month basis at prevailing market prices.
“The sale of Glen Park reflects our continuing efforts to optimize our portfolio,” said Don Althoff, President and CEO of Veresen. “This divestiture provides additional flexibility beyond our expected DRIP proceeds to fund our contracted growth program.”
The transaction with an unnamed buyer is expected to close in the third quarter of 2016, subject to customary closing conditions including the approval of the Federal Energy Regulatory Commission. The transaction is not expected to have a material impact on Veresen’s 2016 financial performance.
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 infrastructure; and a power business comprised of a portfolio of assets in Canada. Veresen is also working to advance 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.