Plains All American Pipeline, L.P. (NYSE:PAA)
and Noble Midstream Partners LP (NYSE:NBLX) announced today that they
have entered into definitive agreements to form a 50/50 joint venture
("JV") to acquire Advantage Pipeline, L.L.C. ("Advantage"), which owns a
70-mile, 16-inch crude oil pipeline located in the southern Delaware
Basin (the "Advantage Pipeline").
The JV will acquire Advantage for $133 million. The majority of PAA's
50% share is expected to be paid in PAA units issued to certain of the
sellers at closing. The acquisition is subject to customary closing
conditions, including the receipt of regulatory approvals.
The Advantage Pipeline has a capacity of 150,000 barrels per day
originating in eastern Reeves County, Texas running through Pecos and
Ward Counties, to Crane County, Texas. The Advantage Pipeline also
includes approximately 490,000 barrels of combined crude storage at
three separate trucking stations.
"Plains is pleased to be entering into this strategic partnership with
Noble Midstream Partners in a growing area of the Delaware Basin," said
Greg Armstrong, Chairman and CEO of Plains All American. "The Advantage
Pipeline provides area producers with more efficient access to multiple
markets through interconnections with PAA's Permian Basin system."
NBLX will serve as operator and will construct a 15-mile pipeline to
deliver crude oil to the Advantage Pipeline from its central gathering
facility in the southern Delaware Basin. PAA will construct a pipeline
to connect its Wolfbone Ranch facility to the Advantage Pipeline near
Highway 285. The connections are estimated to be completed in the second
quarter of this year. The Advantage Pipeline will be contractually
supported by an acreage dedication from Noble Energy, Inc. and a volume
commitment from Plains Marketing, L.P.
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, natural gas liquids ("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 4.6 million barrels per day of crude oil and NGL in its
Transportation segment. PAA is headquartered in Houston, Texas. More
information is available at www.plainsallamerican.com.
Forward Looking Statements
Certain matters discussed in this release are forward-looking statements
that involve risks and uncertainties that could cause actual results or
outcomes to differ materially from results or outcomes anticipated in
the forward-looking statements. These risks and uncertainties include,
among other things, shortages, cost increases or delays in receipt of
supplies, materials or labor; inability to obtain, delays in the receipt
of, or other issues associated with necessary licenses, permits,
approvals, consents, rights of way or other governmental or third party
requirements; the impact of current and future laws, rulings, orders,
governmental regulations, accounting standards and statements and
related interpretations; weather interference with business operations
or project construction, including the impact of extreme weather events
or conditions; environmental liabilities, issues or events that result
in construction delays or otherwise impact targeted in-service dates;
interruptions in service on third-party pipelines or facilities; general
economic, market or business conditions and the amplification of other
risks caused by volatile financial markets, capital constraints and
pervasive liquidity concerns; and other factors and uncertainties
inherent in the transportation, storage, terminalling and marketing of
crude oil and refined products as discussed in PAA's filings with the
Securities and Exchange Commission.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170213005535/en/
Plains All American Pipeline, L.P.
Ryan Smith, 866-809-1291