Plains All American Pipeline, L.P. Completes Merger of PAA Natural Gas Storage, L.P.
December 31 2013 - 12:04PM
Business Wire
Plains All American Pipeline, L.P. (NYSE: PAA) (“PAA”) and PAA
Natural Gas Storage, L.P. (NYSE: PNG) (“PNG”) today jointly
announced the completion of the merger of PNG with a wholly-owned
subsidiary of PAA, with PNG surviving the merger as a wholly-owned
subsidiary of PAA, effective today, December 31, 2013. PNG’s common
unitholders approved the merger in a special meeting held today in
Houston, Texas. Under the terms of the merger agreement, each PNG
unitholder eligible to receive the merger consideration will
receive 0.445 common units of PAA for each PNG common unit owned by
such unitholder, plus cash in lieu of any fractional common units
of PAA otherwise issuable in the merger.
The transaction is expected to result in the issuance of
approximately 14.7 million common units of PAA. In connection with
the closing of the merger, the owners of PAA’s general partner have
agreed to reduce their incentive distribution rights under PAA’s
agreement of limited partnership by $12 million in each of 2014 and
2015, $10 million in 2016 and $5 million per year thereafter.
As a result of the completion of the merger, common units of PNG
will be delisted and, as of the opening of the stock market on
January 2, 2014, will no longer be publicly traded. PAA common
units will continue to be traded on the New York Stock Exchange
under the ticker symbol “PAA.”
Plains All American Pipeline, L.P. (NYSE: PAA) is a publicly
traded master limited partnership that provides midstream energy
infrastructure and 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 3.5 million barrels
per day of crude oil and NGL on its pipelines. PAA is headquartered
in Houston, Texas.
PAA Natural Gas Storage, L.P. is a Delaware limited partnership
engaged in the development, acquisition, operation and commercial
management of natural gas storage facilities. PNG currently owns
and operates three natural gas storage facilities located in
Louisiana, Mississippi and Michigan. PNG is headquartered in
Houston, Texas.
Forward-Looking
Statements
Except for the historical information contained herein, the
matters discussed in this release are forward-looking statements
that involve certain risks and uncertainties that could cause
actual results to differ materially from results anticipated in the
forward-looking statements. Various risks relating to PAA and PNG
are described in their respective filings with the Securities and
Exchange Commission.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20131231005217/en/
Plains All American Pipeline, L.P.Roy I. Lamoreaux,
866-809-1291Director, Investor Relations
Plains All American Pipe... (NYSE:PAA)
Historical Stock Chart
From Aug 2024 to Sep 2024
Plains All American Pipe... (NYSE:PAA)
Historical Stock Chart
From Sep 2023 to Sep 2024