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Mar 27, 2000
PAA Completes Asset Sales for $225 Million
(Houston – March 27, 2000) Plains All American Pipeline, L.P. (NYSE:PAA) announced today it had completed the sale of a segment of the All American Pipeline to a unit of El Paso Energy Corporation (NYSE:EPG) for total proceeds of $129 million. The pipeline segment sold extends from Emidio, California, to McCamey, Texas, and was recently taken out of service. During 1999, this segment contributed approximately $5 million to earnings before interest, taxes, depreciation and amortization. Plains All American also stated it had completed the sale of approximately 5.2 million barrels of crude oil line fill it owned that was located in the pipeline segment sold. Total proceeds for this crude oil line fill was approximately $105 million. After deduction of the costs to purge the crude oil line fill, associated transaction costs, and estimated costs of removal of certain equipment and underground piping, net proceeds to the Partnership from these sales are estimated at approximately $225 million. The Partnership expects to record a gain on the sale of the pipeline of approximately $20 million and a gain on the sale of the crude oil line fill of approximately $44 million. Approximately $16 million of the crude oil line fill gain is associated with volumes sold in the fourth quarter of 1999. “The sale of these assets has enabled us to significantly reduce the Partnership’s total debt while having a relatively minor impact on the Partnership’s earning capacity, The Partnership’s total debt at September 30, 1999, was $354 million, but had increased to nearly $500 million at December 31, 1999. Sales proceeds are being used to reduce debt and we anticipate the Partnership’s total debt at March 31, 2000, will be approximately $275 million,” said Greg L. Armstrong, Chairman and Chief Executive Officer. Except for the historical information contained herein, this matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, the availability of acquisition opportunities on terms favorable to the Partnership, and other factors and uncertainties inherent in the marketing, transportation, terminalling, gathering and storage of crude oil discussed in the Partnership’s filings with the Securities and Exchange Commission.

Plains All American Pipeline, L.P. is engaged in interstate and intrastate crude oil transportation, terminalling and storage, as well as crude oil gathering and marketing activities, primarily in California, Texas, Oklahoma, Louisiana and the Gulf of Mexico. Plains All American Inc., a wholly owned subsidiary of Plains Resources Inc., holds an effective 54% interest in the Partnership and serves as its General Partner. The Partnership’s common units are traded on the New York Stock Exchange under the symbol “PAA”. Plains Resources Inc.’s common shares are traded on the American Stock Exchange under the symbol “PLX”. The Partnership is headquartered in Houston, Texas.
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