Magellan Midstream Partners paying $190 million for Plains All American pipelines
BY ROD WALTON World Staff Writer
Friday, February 22, 2013
Tulsa-based Magellan Midstream Partners LP announced Friday it is buying 800 miles of Rocky Mountain and southwest U.S. refined petroleum pipelines for $190 million.
Plains All American Pipeline LP is selling the two pipeline systems to Magellan. The Rocky Mountain pipeline is a 550-mile common carrier system which moves refined fuels in Colorado, South Dakota and Wyoming, a deal which includes four terminals with nearly 1.7 million barrels in storage capacity.
The second system includes 250 miles of pipeline moving refined product from El Paso, Texas to Albuquerque, New Mexico. The same system also moves fuels south to the Texas-Mexico border.
“This acquisition utilizes Magellan’s expertise in transporting and storing petroleum products,” Magellan CEO Michael Mears said in a statement. “These pipelines are a natural extension of our existing refined products distribution system and provide new markets for Magellan to serve.”
The Plains transaction is expected to close in the second quarter pending regulatory approvals.
Magellan will fund the acquisition with cash and borrowing under its revolving credit facility.
Magellan owns and operates approximately 10,000 miles in refined petroleum and crude oil pipelines in the U.S. The company is headquartered in Tulsa and has a large refined products terminal on the west side of town.