Oklahoma City’s Devon Energy’s close to selling its 50 percent stake in the Access Pipeline in Western Canada according to a report by Bloomberg.
Wolf Infrastructure, a midstream oil and gas firm backed by the Canada Pension Plan Investment Board is about to complete the deal that could be worth as much as $1.2 billion for Devon Energy. An announcement is expected this week.
The Investment Board indicated previously that it sees opportunities for long-term investors to take advantage of falling valuations in the energy sector.
Bloomberg indicated if the Devon sale happens, it will be the third such energy sector in recent weeks involving CPPIB. Earlier, Teine Energy of Saskatchewan bought assets from Canadian producer Penn West Petroleum in a $975 million deal in early June. The Investment Board holds a 77 percent stake in Teine Energy.
Canadian oil producer Paramount Resources also announced last week to sell some of its Deep Basin oil and gas properties in Alberta to Seven Generations Energy. The CPPIB has a 16 percent stake in Seven Generations Energy.
