ARB Midstream Expands into Canada, Acquires Calgary-based Sunwest Energy
Denver, CO (September 15, 2015) - ARB Midstream, LLC, a Denver, Colorado-based midstream energy company announced today that it has acquired Sunwest Energy Canada, Ltd., an established crude oil marketing and trading company headquartered in Calgary, Alberta. Sunwest will operate under the new name of ARB Midstream Logistics Canada, ULC.
Sunwest is a privately owned crude oil marketing and trading firm that currently markets over 20,000 barrels per day of crude oil in Canada and the U.S. Sunwest was established in 2004 and has a long and successful track record of marketing and shipping Canadian crude oil into, and throughout, the Western Canadian and U.S. pipeline systems. Existing Sunwest management will be retained by ARB Midstream who will continue to oversee the Canadian operations of the company.
“This acquisition marks a new chapter for ARB, diversifying our existing business operations, increasing our market reach into Canada, and adding long-term contracted earnings to our business. Sunwest is an established and well respected company in the Canadian markets and we are very excited about this transaction and the opportunity to work with the management of Sunwest. In only our first year of operations, we continue to expand and grow our business and this acquisition is one more step in achieving our goal of becoming and full service, geographically diversified midstream infrastructure and logistics company,” said Adam Bedard, CEO of ARB Midstream.
“The new ARB Midstream Logistics Canada, ULC will continue to provide the same quality service and capabilities to our existing customers, while increasing our abilities to develop infrastructure in both Canada and the U.S. in support of Canadian crude oil production growth,” said Glen Dickey, founder and President of Sunwest Energy Canada. “We are excited about this new partnership with ARB Midstream and recognize the value and long-term benefit this acquisition will bring to our existing and future customers.”
The acquisition was financed in part through debt drawn on a new $52.5 million credit facility with Macquarie Bank Limited and in part by an additional equity commitment from current ARB Midstream’s private equity sponsor, BV Natural Resources, LLC. This new investment by BV Natural Resources increases their total contributions to date to over $32.5 million and increases their total commitment to ARB Midstream to $45.0 million.
“We are pleased to announce both the additional equity contribution from our equity sponsor, as well as the new credit facility with Macquarie,” said Rogan McGillis, CFO of ARB Midstream. “This new credit facility will allow us to continue to execute on our strategic growth plans and provide credit support to the marketing and trading activities of the new Canadian business unit.”
About ARB Midstream, LLC
ARB Midstream, LLC is a privately held midstream energy company, based in Denver, CO, that provides midstream logistics and infrastructure solutions for the North American energy markets. For more information about ARB Midstream, please visit www.arbmidstream.com.
About BV Natural Resources, LLC and Ball Ventures, LLC
BV Natural Resources is a private equity investor in ARB Midstream, LLC. BV Natural Resources, LLC is the energy division of Ball Ventures, LLC. Ball Ventures, LLC is a real estate development, investment and lending company headquartered in Idaho Falls, Idaho, and currently manages over 100 real estate projects in 13 states with over 3.5 million square feet of existing space. Holdings for the company include mixed-use developments, shopping centers, office parks and hospitality properties. For more information about Ball Ventures, please visit www.ballventures.com or contact Liza Leonard, Media Relations, at 208.523.3794 or email@example.com.