The multibillion-dollar Suncor-COS tie-up got a lot of attention from media and investors this year—and for good reason. But it wasn’t the only big deal in the Canadian oil patch worth revisiting, and it certainly wasn’t the biggest.
TransCanada buys Columbia Pipeline—twice
In May, Calgary-based TransCanada bought the U.S. midstream Columbia Pipeline for a reported US$13 billion. Columbia operates more than 25,000 kilometers of natural gas pipelines from the U.S. Northeast to the Gulf of Mexico, including massive underground storage systems and significant access to the Marcellus and Utica shales. Then in November, TransCanada announced it would also acquire all outstanding units of the Columbia Pipeline Partners for US$17 per common share, for a total cash deal worth US$915 million.
Enbridge buys Spectra Energy
In one of the largest-ever Canadian takeover deals, Enbridge announced in September that it would acquire the Houston-based Spectra Energy for $37 billion (US$28 billion) in an all-stock deal. The Calgary midstream company’s takeover of its southern counterpart will create North America’s largest energy infrastructure company with near-equal assets in oil and gas storage and transport, if approved by regulators.
Inter Pipeline buys Williams Canada
Calgary’s Inter Pipeline struck a deal in August to buy the Canadian gas assets of Tulsa-based Williams for $1.35 billion. The Williams Canada assets include two NGL extraction plants near Fort McMurray, a gas processing plant near Redwater and a pipeline system connecting the two. But Inter also gained the option of getting a foothold into an Alberta petrochemical manufacturing industry that, if the Alberta NDP government gets its way, will take off in the years to come. This year, the NDP government announced up to $500 million in royalty credits for new value-added petroleum manufacturing projects, including a proposed $1.85-billion propane-to-propylene pellet manufacturing center that Inter acquired from Williams in the deal.
GE and Baker Hughes combine
When Baker Hughes and General Electric’s oil and gas division eventually unite, the “New” Baker Hughes will be one of the most powerful players in the oilfield service industry. The deal was announced in October, and should it pass muster with regulators, will create a company with operations in 120 countries, including Canada, and an estimated annual revenue of US$32 billion—a close rival to reigning oilfield giant Schlumberger’s US$35.5 billion.
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