Nov 24, 2003 |
PAA Announces Acquisition of So. Saskatchewan Pipeline System |
(Houston – November 24, 2003) Plains All American Pipeline, L.P. (NYSE: PAA) announced today that its subsidiary Plains Marketing Canada, L.P. has acquired the South Saskatchewan Pipeline System from South Saskatchewan Pipe Line Company. Total purchase price for the assets was approximately $47 million, including transaction costs, and was funded through a combination of cash on hand and borrowings under the Partnership’s revolving credit facilities.
The South Saskatchewan Pipeline System originates approximately 75 miles southwest of Swift Current, Saskatchewan, and traverses north and east until it reaches its terminus at Regina. The system consists of a 158-mile, 16-inch mainline and 203 miles of gathering lines ranging in diameter from three to twelve inches. In 2002, the system transported approximately 52,000 barrels of crude oil per day. At Regina, the system can deliver crude oil to the Enbridge Pipeline System and to local markets. In addition, the system can indirectly deliver crude oil into the Partnership’s Wascana Pipeline System.
“We are pleased to complete this transaction, which has been subject to a letter of intent for several months,” said Greg L. Armstrong, Chairman & Chief Executive Officer of the Partnership.
“The acquisition of this fee-based pipeline system complements our existing asset base in the province of Saskatchewan and advances our efforts to expand our presence in the Canadian market.”
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, continued creditworthiness of, and performance by, our counterparties, the effects of competition, the success of our risk management activities, successful third party drilling efforts, regulatory changes, 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 and LPG gathering and marketing activities, primarily in Texas, California, Oklahoma, Louisiana 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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