AEC to buy shares in its pipeline limited partnership

Alberta Energy Co. Ltd., (AEC) Calgary, plans to buy outstanding units of its pipeline limited partnership for $288 million (Can.) in stock. The offer values each unit of AEC Pipelines LP at $9, a 31% premium over the Aug. 11 closing price of $6.85 (Can.). The board of AEC pipelines is recommending the offer to unit holders.

Aug 16th, 2000


CALGARY�Alberta Energy Co. Ltd., (AEC) Calgary, plans to buy outstanding units of its pipeline limited partnership for $288 million (Can.) in stock.

The offer values each unit of AEC Pipelines LP at $9, a 31% premium over the Aug. 11 closing price of $6.85 (Can.). The board of AEC pipelines is recommending the offer to unit holders.

AEC says the limited partnership structure has made it difficult for AEC Pipelines to raise capital for acquisitions.

AEC Pipelines operates Alberta Energy oil pipelines in Alberta and has a 50% interest in the Express oil pipeline from Alberta to the US Midwest. AEC Pipelines has an option to buy the 50% interest held in Express by TransCanada PipeLines Ltd., Calgary, for $60 million.

Alberta Energy Co. CEO Gwyn Morgan said it is awkward for the company to pursue pipeline opportunities through partly-owned or wholly-owned vehicles. He said an increasing portion of AEC�s growth is international, such as the recent acquisition of a Wyoming pipeline and a proposed Ecuador pipeline investment.

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