Contacts: Phillip D. Kramer Executive Vice President and CFO 713/646-4560 – 800/564-3036
Brad A. Thielemann Manager, Special Projects 713/646-4222 – 800/564-3036
FOR IMMEDIATE RELEASE
Plains All American Completes Sale of Common Units
(Houston – March 23, 2006) Plains All American Pipeline, L.P. (NYSE: PAA) announced today that it has completed the sale of 2,336,448 common units at a price of $42.80 per unit to a group of funds affiliated with institutional investors. Including the units issued in the offering, the Partnership now has approximately 76.1 million common units outstanding.
Net proceeds from the offering, including the general partner's proportionate capital contribution and expenses associated with the offering, were approximately $101.4 million. The Partnership intends to use the net proceeds from the sale to fund a portion of its pending acquisition of Andrews Petroleum, Inc. and related businesses. The acquisition is expected to close in the next 30 days, subject to receipt of regulatory approval and satisfaction of customary closing conditions. Pending the application of the proceeds toward the acquisition, the Partnership intends to use the proceeds to reduce indebtedness and for general partnership purposes.
Plains All American Pipeline, L.P. is engaged in interstate and intrastate crude oil transportation and crude oil gathering, marketing, terminalling and storage, as well as the marketing and storage of liquefied petroleum gas and other petroleum products, in the United States and Canada. Through its 50% ownership in PAA/Vulcan Gas Storage LLC, the Partnership is also engaged in the development and operation of natural gas storage facilities. The Partnership's common units are traded on the New York Stock Exchange under the symbol "PAA." The Partnership is headquartered in Houston, Texas.
Forward Looking Statements Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They include statements regarding the timing of the Andrews acquisition and the use of proceeds from the sale of units. These statements are based on management's current expectations and estimates. Actual results may differ materially due to certain risks and uncertainties, including the successful completion of the acquisition of Andrews Petroleum and other risks and uncertainties as identified and discussed in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2005 as filed with the Securities and Exchange Commission.
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