Canadian Manufacturing

AIMCo spending US$500M on Howard Midstream stake

The investment corporation owned by the province of Alberta has already bought US$300 million worth of Howard Energy Partners preferred units and has committed to buy more

August 23, 2016  by The Canadian Press

CALGARY—Alberta Investment Management Corp. says it is investing US$500 million in Howard Midstream Energy Partners to expand its exposure to the U.S. energy sector.

The provincially-owned investment corporation said Monday it had already bought US$300 million worth of Howard Energy Partners preferred units and has committed to buy US$200 million more.

AIMCo said the deal gives it exposure to an attractive infrastructure portfolio that will produce stable, fee-based cash flows.

Texas-based Howard Energy Partners owns and operates a network of pipelines, processing plants, storage facilities and other midstream infrastructure that service natural gas fields in Texas and Pennsylvania.

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AIMCo is an arms-length agency of the Alberta government that manages more than $90 billion in investments on behalf of 31 public sector pension, endowment and government funds.