Plains All American Pipeline, L.P. (NYSE: PAA)
today provided an update on its 2016 planned asset sales and also
announced it had entered into an agreement to acquire natural gas
liquids ("NGL") assets complementary to its existing operations in
Canada.
In January, PAA announced its plans to sell $200 to $400 million in
non-core assets during 2016. On March 31, 2016, PAA completed two
transactions for approximately $250 million. Five additional
transactions totaling approximately $250 million are either under
contract or in advanced stages of negotiation and are expected to be
consummated in the second quarter of 2016, subject to execution of
definitive agreements and customary closing conditions, as applicable.
PAA is also evaluating additional non-core assets sales and currently
expects total asset sales for 2016 will range from $500 million to $600
million.
PAA also announced that its indirect subsidiary, Plains Midstream Canada
ULC ("PMC"), has entered into a definitive agreement with Westcoast
Energy Inc., a unit of Spectra Energy, to acquire its Canadian NGL
business for a cash purchase price of approximately C$200 million (US
$150 million), subject to customary closing adjustments.
The transaction includes Westcoast's Canadian NGL integrated system of
assets, consisting of the Empress NGL extraction and fractionation
facility, the PTC transmission pipeline, seven NGL terminals and two NGL
storage facilities in Western Canada, which include 2.4 billion cubic
feet per day of NGL extraction capacity and 63,000 barrels per day of
fractionation capacity at Empress as well as 4.7 million barrels of NGL
storage.
"These assets are a strategic fit with our existing core Canadian NGL
midstream operations, allowing PMC to enhance its operating efficiencies
and commercial synergies while providing optionality for producers in
Western Canada and NGL customers throughout Canada and the northern
U.S." said David Duckett, Chief Executive Officer of PMC. "The assets
fit well into our existing NGL platform of assets and allow for
continued long-term profitability."
The transaction is expected to close during the second quarter of this
year, subject to regulatory approvals and the satisfaction of customary
closing conditions.
Plains All American Pipeline, L.P. is a publicly traded master limited
partnership that owns and operates midstream energy infrastructure and
provides logistics services for crude oil, NGL, natural gas and refined
products. PAA owns an extensive network of pipeline transportation,
terminalling, storage and gathering assets in key crude oil and NGL
producing basins and transportation corridors and at major market hubs
in the United States and Canada. On average, PAA handles over 4.4
million barrels per day of crude oil and NGL in its Transportation
segment. PAA is headquartered in Houston, Texas.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160404005829/en/
Plains All American Pipeline, L.P.
Ryan Smith, 866-809-1291
Director,
Investor Relations
