Plains All American buys oil assets for $125M
HOUSTON (AP) — Plains All American Pipeline LP said Thursday that it bought some crude oil and condensate gathering assets located in the Eagle Ford oil and gas formation in South Texas from Chesapeake Energy Corp. for about $125 million.
The Houston-based pipeline operator said the assets include about 40 miles of crude oil and condensate gathering pipelines with a throughput capacity of about 50,000 barrels per day, 150,000 barrels of existing crude oil and condensate storage capacity, 300,000 barrels of storage capacity under construction and a truck unloading terminal.
Plains said they will connect with its existing crude oil and condensate gathering systems.
The company also said Thursday that it closed on its $500 million acquisition of four rail terminals used to store and transfer crude oil.
The terminals were bought from U.S. Development Group, a privately held company that owns crude oil, petrochemical and ethanol terminal and storage centers across the U.S. and Canada. The deal also includes one terminal under development and various contractual arrangements, Plains said.
Plains owns a network of about 18,000 miles of liquids pipelines across the country. By owning the terminals, the company will also have more control over the oil it moves and will avoid storage costs at rented terminals.
In midday trading, Plains shares fell 61 cents to $44.56, while Chesapeake shares fell 21 cents to $16.75.