Pembina Pipeline will use KAPS divestment for loan repayment

Chicago, Dec. 12 – Pembina Pipeline Corp. announced that it will be selling its 50% non-operated Pembina Gas Infrastructure interest in the Key Access Pipeline System, according to a press release.

Upon closing, Pembina will receive cash proceeds of C$662.5 million, which will be used to repay drawn credit facilities associated with construction funding for the pipeline.

Additionally, and separately, the company said it would be using cash flow from operating activities in excess of dividends and capital expenditures in 2023 for debt repayment.

“As in 2022, Pembina will continue to evaluate the merits of debt repayment relative to share repurchases over the course of the year, taking into account prevailing market conditions and risk-adjusted returns,” the company stated in the release.

The transportation and midstream service provider for the energy industry is based in Calgary, Alta.

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