Steel Reef Announces $500 Million Acquisition of Assets with Long-Term Take-or-Pay Commitments

November 15th, 2019

CALGARY, ALBERTA – (November 14, 2019) – Steel Reef Infrastructure Corp. (“Steel Reef” or the “Company”) is pleased to announce it has entered into a definitive agreement (the “Agreement”) to purchase certain associated gas gathering, processing and sales infrastructure assets in Saskatchewan from Crescent Point Energy Corp. (“Crescent Point”) for total cash consideration of $500 million.

“This attractive investment is in line with Steel Reef’s responsible growth model and secures long-term benefits for our valued shareholders and customers,” said Scott Southward, President and CEO. “We are pleased to further strengthen our relationship with Crescent Point in a best-in-class resource base.”

Under the terms of the agreement, Steel Reef will purchase and operate nine natural gas processing facilities and their associated gathering systems and two gas sales pipelines with a total throughput capacity of more than 90 million cubic feet per day. As part of the Agreement, the Company has also successfully secured long-term takeor-pay commitments from Crescent Point and retains the right to market unreserved capacity to third parties. In addition, Steel Reef has committed to fund a $30 million expansion of one of the gas processing facilities purchased.

The purchase price will be satisfied by the Company’s existing investors and financers. This transaction is expected to close in first quarter 2020, subject to customary closing conditions and regulatory approvals.

About Steel Reef Infrastructure Corp.:
Formed in 2012, Steel Reef is a privately held midstream company which owns and operates high-quality processing and transportation facilities. The Company is focused on strategically partnering with oil and gas exploration, development and production companies to develop a portfolio of midstream assets, through acquisition or construction, with a view to generating a regular dividend for its investors. Notwithstanding the funds associated with this announcement, Steel Reef has deployed approximately $450 million into a cohesive portfolio of assets since inception.

CONTACT INFORMATION
Scott Southward
President and Chief Executive Officer
(403) 263-8333

William Champion
Chief Financial Officer
(587) 391-1319

www.steelreef.ca

Sign-up

Sign-up for Our Insight Updates

Through its affiliation with the fund managers PFM Fund Operations, PFM Venture Capital, Prairie Ventures GP, TopSoil Farm Land Management, and TopSoil Farm Land Management (II), and doing business as PFM Capital ("PFM Capital" or "PFM"), PFM is a leading private equity investment firm in Saskatchewan. Founded in 1989 as a corporate finance company, PFM has been managing private equity and venture capital funds since 1993. This website does not represent an offering of securities. The information disclosed is incomplete and can be qualified in its entirety by each fund's most recent offering document or limited partnership agreement, obtainable free of charge by contacting PFM Capital Inc. The securities described herein are only available to eligible investors in Canada in accordance with applicable securities laws. Legal

Disclaimer | Legal