(Source: Business Wire)
Plains All American Pipeline, L.P. (NYSE: PAA)
today announced that it has acquired certain pipelines, a manifold
system and approximately 400,000 barrels of crude oil storage capacity
from Holly Corporation ("Holly") for $40 million.
The assets purchased include 6 tanks, three receiving pipelines and
related assets and contract rights located at or associated with Holly's
Tulsa, Oklahoma refinery. In conjunction with the sale, Holly entered a
15-year tank lease and minimum throughput agreement (with options to
extend). Plains and Holly have also agreed to work together to identify
and capture contango storage opportunities. Including only the cash flow
generated by the lease and throughput agreement, the transaction is
expected to be immediately accretive.
Plains All American Pipeline, L.P. is a publicly traded master limited
partnership engaged in the transportation, storage, terminalling and
marketing of crude oil, refined products and liquefied petroleum gas and
other natural gas related petroleum products. The Partnership is also
engaged in the development and operation of natural gas storage
facilities. The Partnership is headquartered in Houston, Texas.
Forward-Looking Statements
Certain statements made herein are forward-looking statements, including
statements regarding the expected benefits of the Holly acquisition.
These statements are based on management's current expectations and
estimates; actual results may differ materially due to certain risks and
uncertainties. These risks and uncertainties include, among other
things, risks associated with the crude oil markets, the success of our
risk management activities and other factors and uncertainties inherent
in the transportation, storage and terminalling of crude oil.
A service of YellowBrix, Inc.
