Nov 01, 2006 |
PAA Acquires 50% Interest in Settoon Towing LLC
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Contacts:
Phillip D. Kramer Executive Vice President and CFO 713/646-4560 – 800/564-3036
A. Patrick Diamond Director, Strategic Planning 713/646-4487 – 800/564-3036
FOR IMMEDIATE RELEASE
Plains All American Pipeline Acquires 50% Interest in Settoon Towing LLC
(Houston – November 1, 2006) Plains All American Pipeline, L.P. (NYSE: PAA) today announced that its subsidiary, Plains Marketing, L.P., has acquired a 50% membership interest in Settoon Towing LLC ("Settoon"). The effective date of the transaction was November 1, 2006 and the cash purchase price was approximately $33 million.
"We are pleased to enter the barge business by partnering with Settoon, an established company with over 30 years of experience in the marine transportation and storage business," said Greg L. Armstrong, Chairman and Chief Executive Officer of Plains All American. "Russ Settoon and his successful and dedicated team of employees have built an attractive business with an exemplary safety record. Their assets will expand the Partnership's crude oil transportation capabilities, predominantly in the coastal waters of the Gulf Coast. Going forward, we will selectively look to acquire additional marine transportation assets that will enhance our ability to provide value-added services to our producer and refinery customers." Armstrong noted that PAA has had a long-standing business relationship with Settoon and PAA is currently Settoon's largest customer with 22 tugs and 22 tank barges under charter.
Settoon Towing LLC owns and operates a fleet of 57 transport and storage barges (including three on lease or charter) as well as 30 transport tugs (including three on lease or charter). Settoon's core business is the gathering and transportation of crude oil and produced water from inland production facilities across the Gulf Coast. It conducts its operations out of two facilities in south Louisiana, which are strategically located on the Gulf Intercoastal Waterway and provide access to numerous inland waterways.
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 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 expected benefits of our acquisition of a membership interest in Settoon Towing LLC. These statements are based on management's current expectations and estimates; actual results may differ materially due to certain risks and uncertainties. For example, the ability of the Partnership to achieve expected results may be affected by the availability of, and our ability to consummate, future acquisition or combination opportunities; our access to capital to fund additional acquisitions and our ability to obtain debt or equity financing on satisfactory terms; and successful integration and future performance of acquired assets or businesses and the risks associated with operating in lines of business that are distinct and separate from our historical operations. Other risks and uncertainties that may affect actual results include refinery downtime, continued creditworthiness of, and performance by, our counterparties, unusual weather patterns, the effects of competition, the success of our risk management activities, commodity price fluctuations, regulatory changes, and other factors and uncertainties inherent in the Partnership's business as discussed in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2005 and Quarterly Report on Form 10-Q and 10-Q/A for the quarter ended June 30, 2006, as filed with the Securities and Exchange Commission.
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