Jan 09, 2002 |
PAA to Acquire West Texas Crude Oil Assets From CornerStone Propane Partners, L.P. |
(Houston – January 9, 2002) Plains All American Pipeline, L.P. (NYSE: PAA) announced today that it has entered into an agreement to acquire substantially all of CornerStone Propane Partners, L.P.’s (NYSE: CNO) midstream crude oil pipeline, gathering and marketing assets for approximately $8.5 million. These assets are currently operated by Coast Energy Group, a division of CornerStone, under the trade names Lantern Petroleum and Coast Energy Group. The transaction is expected to close in approximately 60 days. “The acquisition of these assets enhances our gathering and marketing and pipeline transportation presence in the West Texas market,” commented Harry Pefanis, President and Chief Operating Officer of Plains All American. “The West Texas market is a core area for the Partnership and we will continue to evaluate consolidation opportunities in that area. We expect this transaction to be accretive to earnings per unit and cash flow per unit, generating an annual 15% - 20% return on capital.” Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, successful integration and future performance of assets acquired, availability of third party production volumes for transportation and marketing, demand for various grades of crude oil and resulting changes in pricing conditions, successful third party drilling efforts, regulatory changes, the availability of acquisition opportunities on terms favorable to the Partnership, unanticipated shortages or cost increases in materials and skilled labor, weather interference, 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 Texas, California, Oklahoma, Louisiana, the Gulf of Mexico and 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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