Plains All American Announces Joint Venture Pipeline Acquisition
13 February 2017 - 11:30PM
Business Wire
Enhances Permian Basin Footprint in Strategic
Southern Delaware Basin
Plains All American Pipeline, L.P. (NYSE:PAA) and Noble
Midstream Partners LP (NYSE:NBLX) announced today that they have
entered into definitive agreements to form a 50/50 joint venture
(“JV”) to acquire Advantage Pipeline, L.L.C. (“Advantage”), which
owns a 70-mile, 16-inch crude oil pipeline located in the southern
Delaware Basin (the “Advantage Pipeline”).
The JV will acquire Advantage for $133 million. The majority of
PAA’s 50% share is expected to be paid in PAA units issued to
certain of the sellers at closing. The acquisition is subject to
customary closing conditions, including the receipt of regulatory
approvals.
The Advantage Pipeline has a capacity of 150,000 barrels per day
originating in eastern Reeves County, Texas running through Pecos
and Ward Counties, to Crane County, Texas. The Advantage Pipeline
also includes approximately 490,000 barrels of combined crude
storage at three separate trucking stations.
“Plains is pleased to be entering into this strategic
partnership with Noble Midstream Partners in a growing area of the
Delaware Basin,” said Greg Armstrong, Chairman and CEO of Plains
All American. “The Advantage Pipeline provides area producers with
more efficient access to multiple markets through interconnections
with PAA’s Permian Basin system.”
NBLX will serve as operator and will construct a 15-mile
pipeline to deliver crude oil to the Advantage Pipeline from its
central gathering facility in the southern Delaware Basin. PAA will
construct a pipeline to connect its Wolfbone Ranch facility to the
Advantage Pipeline near Highway 285. The connections are estimated
to be completed in the second quarter of this year. The Advantage
Pipeline will be contractually supported by an acreage dedication
from Noble Energy, Inc. and a volume commitment from Plains
Marketing, L.P.
Plains All American Pipeline, L.P. is a publicly traded master
limited partnership that owns and operates midstream energy
infrastructure and provides logistics services for crude oil,
natural gas liquids ("NGL"), natural gas and refined products. PAA
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, PAA handles over 4.6 million
barrels per day of crude oil and NGL in its Transportation segment.
PAA is headquartered in Houston, Texas. More information is
available at www.plainsallamerican.com.
Forward Looking Statements
Certain matters discussed in this release are forward-looking
statements that involve risks and uncertainties that could cause
actual results or outcomes to differ materially from results or
outcomes anticipated in the forward-looking statements. These risks
and uncertainties include, among other things, shortages, cost
increases or delays in receipt of supplies, materials or labor;
inability to obtain, delays in the receipt of, or other issues
associated with necessary licenses, permits, approvals, consents,
rights of way or other governmental or third party requirements;
the impact of current and future laws, rulings, orders,
governmental regulations, accounting standards and statements and
related interpretations; weather interference with business
operations or project construction, including the impact of extreme
weather events or conditions; environmental liabilities, issues or
events that result in construction delays or otherwise impact
targeted in-service dates; interruptions in service on third-party
pipelines or facilities; general economic, market or business
conditions and the amplification of other risks caused by volatile
financial markets, capital constraints and pervasive liquidity
concerns; and other factors and uncertainties inherent in the
transportation, storage, terminalling and marketing of crude oil
and refined products as discussed in PAA's filings with the
Securities and Exchange Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20170213005535/en/
Plains All American Pipeline, L.P.Ryan Smith,
866-809-1291Director, Investor Relations
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