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Pembina Pipeline Corp. Closes Acquisition

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Pembina_LogoCalgary-based Pembina Pipeline Corp.’s recently closed its acquisition of the recently-completed Vantage pipeline system and Mistral Midstream Inc.’s interest in the Saskatchewan Ethane Extraction Plant from certain entities affiliated with Riverstone Holdings LLC.

“I am very pleased to add these strategic assets to our energy infrastructure portfolio” said Mick Dilger, Pembina’s president and CEO. “Expanding our footprint into the prolific Bakken play and connecting it to the Alberta petrochemical market in a low-risk transaction is a logical step for us, and one that is in line with our integrated strategy. We expect that future opportunities associated with both Vantage and Saskatchewan Ethane Extraction Plant will provide further diversification and growth for our asset base, which will ultimately translate into continued long-term value for our shareholders.”

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Pursuant to the transaction, Pembina has acquired all of the equity interests of Vantage Pipeline Canada ULC, Vantage Pipeline US LP and Mistral and repaid Vantage’s bank indebtedness of approximately US$224 million in a transaction valued at approximately US$650 million. Pembina paid cash of US$395 million and US$255 million in its common shares to fund the Transaction.

Pembina funded the cash portion of the consideration in part with proceeds from its previously announced bought-deal preferred share issuance, which closed on Sept. 11, 2014, as well as existing credit capacity. The US$255 million common share portion of the consideration resulted in 5.61 million shares being issued to the Seller.

In addition, given the transaction’s effective date of Aug. 1, 2014, Pembina will reimburse the seller for approximately US$23 million that was spent to advance the construction of Saskatchewan Ethane Extraction Plan between the effective date and the closing date of the Transaction.

Pembina also announced that it has reached an agreement to acquire the remaining 10 percent interest in Saskatchewan Ethane Extraction Plan, which is anticipated to close shortly after the transaction, after which time Pembina will own 100 percent of the 60 mmcf/d deep cut processing facility.

For additional information on the transaction, including a description of the assets acquired, visit pembina.com.

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