News Summary: Spectra to buy pipeline for $1.25B
THE DEAL: Pipeline operator Spectra Energy Corp. is buying the 1,700-mile Express-Platte pipeline system for $1.25 billion in cash to build its oil transportation network.
THE PIPELINE: The Express-Platte moves crude from Western Canada to refineries in the Midwest and the Rockies.
THE BIG PICTURE: Spectra said that acquiring the network will help it benefit from the rapidly expanding North American oil market. The deal comes as U.S. oil production increases — monthly crude production reached its highest level since 1998 in September, according to the Energy Department — and follows several other large energy deals.