Jun 24, 2003 |
PAA Acquires South Louisiana Assets from El Paso |
(Houston – June 24, 2003) Plains All American Pipeline, L.P. (NYSE: PAA) announced today that it has acquired a package of south Louisiana terminalling and gathering assets from El Paso Corporation (NYSE: EP) and its subsidiaries (collectively, “El Paso”). The purchase price for the package was approximately $10 million and was funded with cash on hand and borrowings under the Partnership’s revolving credit facility. “These assets comprise an integrated condensate and crude oil gathering and marketing business and complement our existing operations in south Louisiana,” said Greg L. Armstrong, Chairman and Chief Executive Officer of the Partnership. “In addition, we believe the system is favorably leveraged to the growing volume of crude oil and natural gas production in the Gulf of Mexico.” Armstrong also noted that the financial impact of the transaction was included in the financial guidance the Partnership provided in its Form 8-Ks that were filed on February 26th and April 25th of this year. Such financial guidance was also discussed during the Partnership’s conference calls held on the same dates. The assets that are included in the package are as follows with the ownership or leased interests in parentheses:
•Atchafalaya Pipeline (33%)
•Bayou Sale Gathering System (100%)
•Cote Blanche Gathering System (100%)
•Bay St. Elaine Gathering System (100%)
•Eugene Island Flow System (38% - 56%)
•Burns Terminal (38%)
•Patterson Terminal (55,000 barrels leased)
(1) Ownership varies based on the segment of the line and level of throughput.
The Partnership expects to become the operator of each of the nonleased assets. The effective date of the transaction was June 13, 2003.
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, availability of third party production volumes for transportation and marketing, demand for various grades of crude oil and resulting changes in pricing conditions, successful third party drilling efforts, regulatory changes, weather interference, 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, primarily in Texas, California, Oklahoma and Louisiana and the Canadian Provinces of Alberta and Saskatchewan. The Partnership’s common units are traded on the New York Stock Exchange under the symbol “PAA.” The Partnership is headquartered in Houston, Texas. # # #
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