Feb 22, 2007 |
PAA to Acquire LPG Storage Facility |
Contacts: Phil D. Kramer Executive Vice President and CFO 713/646-4560 – 800/564-3036
Roy I. Lamoreaux Manager, Investor Relations 713/646-4222 – 800/564-3036
FOR IMMEDIATE RELEASE
Plains All American Pipeline to Acquire LPG Storage Facility
(Houston – February 22, 2007) Plains All American Pipeline, L.P. (NYSE: PAA) announced today that its subsidiary Plains LPG Services, L.P. ("Plains") has signed a definitive agreement to acquire the Bumstead LPG storage facility located near Phoenix, Arizona, from AmeriGas Propane, L.P. for approximately $52 million. The transaction is expected to close within 90 days, subject to satisfaction of certain closing conditions.
"The Bumstead facility increases Plains' LPG storage capacity by approximately 60% and provides an attractive complement to the Andrews Petroleum assets that we acquired last year," said W. David Duckett, President of Plains LPG Services, L.P. "Additionally, the Bumstead facility provides Plains another link in the LPG value chain, enabling us to more fully optimize our LPG truck and rail assets and associated merchant capabilities."
The Bumstead facility is located at a major rail transit point and along the Interstate 10 corridor running between Phoenix and Los Angeles. With 133-million gallons of working capacity, primary assets at the facility include three salt-dome storage caverns, a 24-car rail rack and three truck racks capable of simultaneously loading or unloading six trucks.
Plains All American Pipeline, L.P. is a publicly traded master limited partnership engaged in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas related petroleum products. Through its 50% ownership in PAA/Vulcan Gas Storage LLC, the partnership also develops and operates natural gas storage facilities. The Partnership is headquartered in Houston, Texas, and its common units are traded on the New York Stock Exchange under the symbol "PAA."
Forward Looking Statements Certain statements made herein are forward-looking statements, including statements regarding the timing and expected benefits of the Bumstead LPG storage facility acquisition. 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 timing of the acquisition and the ability of the Partnership to achieve expected results may be affected by successful completion of the acquisition and integration of the acquired assets. 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 Reports on Form 10-Q for the quarters ended June 30, 2006 and September 30, 2006 as filed with the Securities and Exchange Commission.
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