Plains All American Pipeline, L.P. Provides Status Report on Asset Sales & Enters into Agreement to Expand Its Canadian NGL B...
April 04 2016 - 8:46AM
Business Wire
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160404005829/en/
Plains All American Pipeline, L.P.Ryan Smith,
866-809-1291Director, Investor Relations
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