M2 Infrastructure and TransCanada to Pursue Development of 6.2 Million Barrels of New Crude Oil Storage at Cushing, Oklahoma

HOUSTON--()--M2 Infrastructure LLC (“M2 Infrastructure”) announced today that it has entered into a Memorandum of Understanding with TransCanada Corporation (NYSE: TRP) (“TransCanada”) to pursue construction of 6.2 million barrels of new crude oil storage at TransCanada’s terminal in Cushing, Oklahoma. Cushing is the most active crude oil trading hub in the world, and the delivery point for the West Texas Intermediate futures contract listed on the Chicago Mercantile Exchange (“CME”).

“We are excited to continue transforming the way midstream operators bring efficiencies to their clients”

The new crude oil storage will be owned by M2 Infrastructure and operated by TransCanada. M2 Infrastructure has an option to build up to 20 million barrels of storage, which would be built in subsequent phases. The project and option to expand are subject to completion of definitive agreements between the parties and obtaining required approvals and land rights. Construction of the crude oil storage is expected to begin in late 2017.

M2 Infrastructure plans to work with Matrix Global Holdings, the parent company of Matrix Markets, to sell storage capacity to its customers through on-line auctions of futures contracts and/or physical forward agreements. The auction program will be similar to the highly successful LOOP Sour auction developed by CME, LOOP LLC and Matrix Markets.

“We are excited to continue transforming the way midstream operators bring efficiencies to their clients,” said J. Robert Collins, Jr., co-founder and Manager of M2 Infrastructure and Matrix Global Holdings. “This project’s unique position in Cushing, combined with the innovative excellence of Matrix, should provide the lowest cost, highest throughput, most liquid and most connected storage solution in the midcontinent – eliminating costly limitations of alternative storage programs.”

“TransCanada is committed to developing energy infrastructure solutions in the United States and Canada and pursuing this opportunity fits well in our plans to provide enhanced flexibility to our customers,” said Paul Miller, TransCanada’s executive vice-president and president, Liquids Pipelines.

Macquarie Capital has been engaged by M2 Infrastructure to serve as its financial advisor on the project.

ABOUT:

M2 INFRASTRUCTURE LLC: Founded in 2016, M2 Infrastructure seeks to provide innovative storage solutions to its customers, which include producers, gatherers, refiners, global energy merchants, and commodity trading firms. Management is comprised of an experienced team of energy and financial market professionals, leveraging over 100 years of combined trading, logistics, and industry expertise. M2 Infrastructure is an affiliate of Lone Star Capital. Lone Star Capital (lonestarcapital.net) invests in, advises, and incubates companies in fin-tech and commodity sectors around the globe.

TRANSCANADA: With more than 65 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and liquids pipelines, power generation and gas storage facilities. TransCanada operates a network of natural gas pipelines that extends more than 91,500 kilometres (56,900 miles), tapping into virtually all major gas supply basins in North America. TransCanada is the continent's leading provider of gas storage and related services with 653 billion cubic feet of storage capacity. A large independent power producer, TransCanada currently owns or has interests in over 10,700 megawatts of power generation in Canada and the United States. TransCanada is also the developer and operator of one of North America's leading liquids pipeline systems that extends over 4,300 kilometres (2,700 miles), connecting growing continental oil supplies to key markets and refineries. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. Visit TransCanada.com and our blog to learn more, or connect with us on social media and 3BL Media.

FORWARD LOOKING INFORMATION

This publication contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as "anticipate", "expect", "believe", "may", "will", "should", "estimate", "intend" or other similar words). Forward-looking statements in this document are intended to provide TransCanada security holders and potential investors with information regarding TransCanada and its subsidiaries, including management's assessment of TransCanada's and its subsidiaries' future plans and financial outlook. All forward-looking statements reflect TransCanada's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release, and not to use future-oriented information or financial outlooks for anything other than their intended purpose. TransCanada undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to the Quarterly Report to Shareholders dated February 16, 2017 and 2016 Annual Report filed under TransCanada's profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at www.sec.gov.

MATRIX GLOBAL HOLDINGS: Matrix Global Holdings (matrixglobalholdings.com) is an innovative financial products development company and a trusted strategic advisor for clients who include the world’s leading energy merchants, commodity trading firms, as well as owners and operators of infrastructure assets. Matrix Global Holdings works intimately with its clients to create solutions, which enhance and preserve asset values in today’s changing and volatile energy markets. Its first initiative was the highly successful launch of the world’s first futures contract on crude oil storage capacity, developed through its subsidiary, Matrix Markets. Matrix Global Holdings seeks to optimize customers’ unique midstream assets through the creation of proprietary short-term physical bilateral agreements and financial derivative products. Matrix is also an affiliate of Lone Star Capital.

MACQUARIE: Macquarie Group (“Macquarie”) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie's main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie operates in more than 70 office locations in 27 countries. Macquarie employs approximately 13,800 people and has assets under management of over $377 billion (as of September 30, 2016). Macquarie Capital comprises Macquarie Group's corporate advisory, capital markets and principal investing capabilities. Macquarie Capital's expertise spans a variety of industry sectors, including telecommunications, media, entertainment, gaming, financial institutions, industrials, energy, resources, real estate, infrastructure, utilities and renewables.

Contacts

M2 INFRASTRUCTURE LLC
J. Robert Collins Jr.
Chief Executive Officer & Co-Founder
Lone Star Capital LLC
4306 Yoakum Blvd., Suite 300
Houston, TX 77006
713-352-7334 (o)
917-645-2134 (m)
jrc@lonestarcapital.net
or
MACQUARIE GROUP
Rishi D. Sharma
Vice President Corporate Communications & Investor Relations
Macquarie Group
125 West 55th Street, New York, NY 10019
212-231-0494 (o)
646-703-2806 (m)
rishi.sharma@macquarie.com

Release Summary

M2 Infrastructure and TransCanada to Pursue Development of 6.2 Million Barrels of New Crude Oil Storage at Cushing, Oklahoma, the most active crude oil trading hub in the world.

M2 Infrastructure LLC