Dec 15, 2003 |
PAA Acquires Remaining Interests in Atchafalaya Pipeline |
(Houston – December 15, 2003) Plains All American Pipeline, L.P. (NYSE: PAA) announced today that it has acquired all of the remaining interests in Atchafalaya Pipeline LLC, increasing its ownership from 33-1/3 percent to 100 percent. The additional interests were purchased from Shell Pipeline Company L.P. and Gulf Coast Field Services, L.L.C. in two separate transactions for a combined purchase price of approximately $4.4 million. The transactions were funded through a combination of cash on hand and borrowings under the Partnership’s revolving credit facilities. The principal asset of Atchafalaya LLC is the Atchafalaya Pipeline System, which originates near Garden City, Louisiana, and traverses east until it reaches its terminus near Gibson, Louisiana. The system is an 8-inch diameter crude oil and condensate pipeline with a length of approximately 35 miles, 28 miles of which are in active service. The system receives crude oil and condensate from ANR Pipeline, CMS Trunkline and a barge dock in the Patterson, Louisiana, area and delivers into tankage controlled by PAA at Gibson. In 2002, the system transported approximately 18,100 barrels of crude oil and condensate per day.
The Partnership acquired its original 33-1/3 percent interest in the system earlier in the year as part of its acquisition of a package of assets from an affiliate of El Paso Corporation. 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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