Gibson Energy and Baytex Energy Announce Pembina Duvernay Infrastructure and Area of Dedication Agreement

About this update from Baytex Energy Corp.

[{"type":"text","content":"Gibson Energy and Baytex Energy Announce Pembina Duvernay Infrastructure and Area of Dedication Agreement\n\n\n\n CALGARY, Alberta , March 11, 2025 (GLOBE NEWSWIRE) -- Gibson Energy Inc. (\"Gibson\") and Baytex Energy Corp. (“Baytex”) are pleased to announce a strategic partnership in the Pembina Duvernay and the execution of a long-term take-or-pay agreement (the “Partnership” or the “Agreement”). The Partnership will see Gibson advance its liquids infrastructure strategy in support of the development of Baytex’s growing Pembina Duvernay asset.\n \n\n\n Key Highlights\n \n\n\n\n Creates a strategic partnership to develop infrastructure, driving long-term value for both parties.\n \n\n Expands Gibson’s liquids infrastructure footprint and increases committed volumes to its core Edmonton terminal through an area dedication, enhancing the quality of cash flows.\n \n\n Supports Baytex’s ongoing development in the Pembina Duvernay and provides committed market access.\n \n\n\n\n \"Building on our long-standing relationship, this strategic partnership leverages our infrastructure expertise, differentiated services and superior connectivity at our Edmonton terminal to create mutual value,\" said Curtis Philippon, President and Chief Executive Officer. \"Moving forward, we see the opportunity for further expansion of our partnership with Baytex to support their development plans and potential to work with other customers to explore additional purpose-built solutions which increase long-term demand for services at our core terminal assets.\"\n \n\n “We are excited to partner with Gibson and progress the development of our Pembina Duvernay asset, which includes the construction and operation of certain midstream infrastructure,” commented Eric T. Greager, President and Chief Executive Officer. “This partnership allows us to leverage Gibson's liquids infrastructure and midstream expertise while maintaining operatorship.”\n \n\n Under the initial 10-year Agreement, Gibson will invest approximately $50 million of capital expenditures and receive an area of dedication and established return on investment that is aligned with Gibson’s target build multiple. Baytex will construct the infrastructure and have operating responsibility for the term of...

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