OIL&GAS JOURNAL: Plains All American Pipeline Acquires South Louisiana Assets From Shell (ShellNews.net) Posted 13 Jan 05
HOUSTON, PRNewswire-FirstCall/ -- Plains All American Pipeline, L.P. (NYSE:PAA) announced today that it has acquired south Louisiana crude oil pipeline assets from Shell Pipeline Company LLC. The purchase price for the assets was approximately $12 million and was funded with cash on hand and borrowings under the Partnership's revolving credit facility. The effective date of the acquisition is January 1, 2005.
"The Capline and Link acquisitions that we completed in 2004 have established a strong platform for further growth and consolidation of Gulf Coast crude oil assets," said George R. Coiner, Senior Group Vice President of the Partnership. "These Shell assets fit extremely well with our existing operations in the area and enhance our ability to service our producer and refinery customers in south Louisiana." Coiner also stated that the Partnership intends to spend approximately $8 million during 2005 to make modifications and improvements to the acquired assets and to integrate them into Plains All American's existing asset base.
The primary assets that are included in the acquisition are as follows:
* Terrebonne Bay Gathering System * Golden Meadow Gathering System
* Bay St. Elaine Pipeline * Turtle Bayou Gathering System
* Cocodrie to Houma Pipeline * Patterson Station
* Cocodrie Station
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, successful integration and future performance of assets acquired, refinery downtime, unusual weather patterns, continued creditworthiness of, and performance by, our counterparties, the effects of competition, the success of our risk management activities, commodity price fluctuations, regulatory changes, and other factors and uncertainties inherent in the marketing, transportation, terminalling, gathering and storage of crude oil discussed in the Partnership's filings with the Securities and Exchange Commission.
Plains All American Pipeline, L.P. is engaged in interstate and intrastate crude oil transportation, terminalling and storage, as well as crude oil and LPG gathering and marketing activities, in the United States and Canada. The Partnership's common units are traded on the New York Stock Exchange under the symbol "PAA". The Partnership is headquartered in Houston, Texas.
Source: Plains All American Pipeline, L.P.
CONTACT: Phillip D. Kramer, Executive Vice President and CFO,
+1-713-646-4560, or A. Patrick Diamond, Manager, Special Projects,
+1-713-646-4487, both of Plains All American Pipeline, L.P., +1-800-564-3036
Web site: http://www.paalp.com/
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