Pembina Pipeline has entered into an agreement to acquire Kinder Morgan Canada and the US portion of the Cochin Pipeline in a transaction valued at approximately $ 4.35 billion.
At the conclusion of the deal with Kinder Morgan, Pembina also announced Wednesday that its quarterly dividend would be increased by 1 cent per share, to 21 cents.
The Cochin pipeline extends 2900 kilometers from Fort Saskatchewan, Alberta, to Chicago, with an estimated daily capacity of 110,000 barrels.
The agreement also includes a facility in Edmonton and Vancouver Wharves.
A portion of the transaction, approximately $ 2.3 billion, is settled in shares. Pembina also pays nearly $ 2.05 billion in cash to Kinder Morgan Cochin LLC.