CALGARY, AB, April 8, 2021 /CNW/ -Inter Pipeline Ltd. (“Inter Pipeline“) (TSX:IPL) announced today it will report first quarter 2021 operating and financial results under a new business structure to align with how it manages budgets and commercially operates its business. Inter Pipeline was previously organized into four businesses: oil sands transportation, conventional oil pipelines, NGL processing and bulk liquid storage. Effective January 1, 2021, these four segments have been repositioned into four new segments: transportation, facilities infrastructure, marketing and new ventures.
Planned in early 2020, and approved by the Board in October, the reorganization integrates similar assets and contract structures thereby maximizing operational efficiencies. The new structure will also streamline external reporting and promote alignment with Inter Pipeline's energy infrastructure peers. A centralized and integrated marketing division has been established to aggregate commodity-based adjusted EBITDA, while handling commodity risk management and hedging activities. Additional benefits include enhancing transparency with cost-of-service and fee-based adjusted EBITDA generated by the transportation and facilities infrastructure segments and providing a platform for the integration of large-scale new business ventures, such as HPC.
“Since becoming a public entity in 1997, Inter Pipeline has experienced tremendous growth through the development and expansion of our oil sands transportation, conventional oil pipelines and NGL processing business segments,“ said Christian Bayle, Inter Pipeline's President and Chief Executive Officer. “Given the enhanced scale of our business, the ongoing integration of the Heartland Petrochemical Complex and the changing nature of the energy industry, the time was right for Inter Pipeline's structure to further adapt to position us for continued long-term success.“