TULSA, Okla., HOUSTON and THE
WOODLANDS, Texas, March 18,
2015 /PRNewswire/ -- Magellan Midstream Partners (NYSE: MMP)
("Magellan") and Plains All American Pipeline, L.P. (NYSE: PAA)
("Plains") announced today that a wholly owned subsidiary of
Anadarko Petroleum Corporation (NYSE:APC) has exercised its option
to purchase a 20% equity interest in Saddlehorn Pipeline Company.
As a result of today's announcement, the equity ownership in
Saddlehorn will be 40% Magellan, 40% Plains and 20% Anadarko.
Saddlehorn is a limited liability company that will construct,
own and operate the Saddlehorn pipeline, an approximately 550-mile
pipeline that will transport various grades of crude oil from the
DJ Basin, and potentially the broader Rocky Mountain area resource
plays, to storage facilities in Cushing,
OK owned by Magellan and Plains. The 20-inch pipeline will
have an ultimate capacity to transport up to 400,000 barrels per
day (bpd), but the initial capacity of the Saddlehorn pipeline is
expected to be closer to 200,000 bpd.
An extension to Carr, CO is
also under consideration for connection to existing crude oil
assets owned by Plains in that region. This lateral is being
designed to provide additional shippers with flexible options and
streamlined access into the Saddlehorn system.
"Magellan and Plains are pleased to have Anadarko as a partner in the Saddlehorn
pipeline," said Michael Mears,
Magellan's Chief Executive Officer and Greg
L. Armstrong, Chairman and CEO of Plains All American.
"Anadarko is a committed shipper
and has a significant production presence in this region, adding
further value to the pipeline project to deliver crude oil to the
Cushing hub."
The project is currently estimated to cost between $800 million and $850 million. Magellan will
serve as construction manager and pipeline operator of the
Saddlehorn system. Subject to receipt of necessary permits and
regulatory approvals, the Saddlehorn pipeline is expected to be
operational during mid-2016.
About Anadarko Petroleum Corporation
Anadarko Petroleum Corporation's mission is to deliver a
competitive and sustainable rate of return to shareholders by
exploring for, acquiring and developing oil and natural gas
resources vital to the world's health and welfare. As of year-end
2014, the company had approximately 2.86 billion barrels-equivalent
of proved reserves, making it one of the world's largest
independent exploration and production companies. For more
information about Anadarko and APC
Flash Feed updates, please visit www.anadarko.com.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly
traded partnership that primarily transports, stores and
distributes refined petroleum products and crude oil. Magellan owns
the longest refined petroleum products pipeline system in the
country, with access to nearly 50% of the nation's refining
capacity, and can store more than 95 million barrels of petroleum
products such as gasoline, diesel fuel and crude oil. More
information is available at
www.magellanlp.com.
About Plains All American Pipeline, L.P.
Plains All American Pipeline, L.P. (NYSE: PAA) is a publicly
traded partnership that owns and operates midstream energy
infrastructure and provides logistics services for crude oil,
natural gas liquids ("NGL"), natural gas and refined products.
Plains owns an extensive network of pipeline transportation,
terminalling, storage and gathering assets in key crude oil and NGL
producing basins and transportation corridors and at major market
hubs in the United States and
Canada. On average, Plains handles
over 4.1 million barrels per day of crude oil and NGL on its
pipelines. More information is available at
www.plainsallamerican.com.
Portions of this document constitute forward-looking
statements as defined by federal law. Although management of
Anadarko Petroleum Corporation, Magellan Midstream Partners, L.P.
and Plains All American Pipeline, L.P. (the "companies") believe
any such statements are based on reasonable assumptions, there is
no assurance that actual outcomes will not be materially different.
Among the key risk factors associated with the project that may
have a direct impact on Saddlehorn's and the companies' results of
operations and financial condition are: (1) the ability to obtain
all required rights-of-way, permits and other governmental
approvals on a timely basis; (2) the ability to complete
construction of the project on time and at expected costs; (3)
price fluctuations and overall demand for crude oil; (4) changes in
Saddlehorn's tariff rates or other terms imposed by state or
federal regulatory agencies; (5) the occurrence of an operational
hazard or unforeseen interruption; (6) disruption in the debt and
equity markets that negatively impacts Saddlehorn's or the
companies' abilities to finance capital spending and (7)
willingness to incur or failure of customers or vendors to meet or
continue contractual obligations related to the project. Additional
information about issues that could lead to material changes in
performance is contained in filings with the Securities and
Exchange Commission for all companies. The companies undertake no
obligation to revise these forward-looking statements to reflect
events or circumstances occurring after today's date.
Contact Information:
Magellan:
|
Paula
Farrell
|
Investor
Relations
|
(918)
574-7650
|
paula.farrell@magellanlp.com
|
|
Bruce
Heine
|
Media
Relations
|
(918)
574-7010
|
bruce.heine@magellanlp.com
|
|
|
|
|
|
Plains:
|
Ryan Smith
|
Investor
Relations
|
(866)
809-1291
|
|
|
Brad Leone
|
Media
Relations
|
(866)
809-1290
|
|
Anadarko:
|
John
Christiansen
|
Media
Relations
|
(832)
636-8736
|
john.christiansen@anadarko.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/anadarko-joins-magellan-midstream-and-plains-all-american-to-build-saddlehorn-pipeline-300052334.html
SOURCE Magellan Midstream Partners, L.P.