Jul 09, 2001 |
PAA Completes Acquisition of CANPET Energy Group Inc. |
(Houston – July 9, 2001) Plains All American Pipeline, L.P. (NYSE: PAA) announced today it had completed the acquisition of substantially all of the assets of CANPET Energy Group, Inc., a Calgary-based Canadian crude oil and liquefied petroleum gas marketing company. The total purchase price was approximately US$42 million, plus an amount for additional crude oil and products inventory in excess of normal working requirements. Approximately US$24 million of the purchase price consists of cash and the remaining approximately US$18 million, which is subject to various performance standards, will be satisfied with PAA common units in 2004 if such performance standards are met. CANPET currently gathers approximately 75,000 barrels per day of crude oil and markets approximately 26,000 barrels per day of liquefied petroleum gas and natural gas liquids. Tangible assets include a crude oil handling facility, a 130,000 barrel tank facility and working capital of approximately US$8.6 million. In addition, excess inventory at closing was approximately US$25 million. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. The risks and uncertainties associated with the Partnership’s business include, among other things, demand for various grades of crude oil and resulting changes in pricing conditions, successful third party drilling efforts and completion of announced oil-sands projects, availability of third party production volumes for transportation and marketing, regulatory changes, the availability of acquisition opportunities on terms favorable to the Partnership, the availability to Plains All American of credit on satisfactory terms, successful integration and future performance of recently acquired assets, 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, including its annual report on Form 10-K for the period ended December 31, 2000, and quarterly report on Form 10-Q for the period ended March 31, 2001. 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 Texas, Oklahoma, California, Louisiana and the Gulf of Mexico, and in the Canadian Provinces of Alberta and Saskatchewan. The Partnership’s common units are traded on the New York Stock Exchange under the symbol “PAA”. The Partnership is headquartered in Houston, Texas. |
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