Plains All American Pipeline, L.P. entered into a definitive purchase and sale agreement to acquire 50% stake in Bridgetex Pipeline Company, Llc from Occidental Petroleum Corporation for $1.1 billion.
November 06, 2014 at 09:30 am IST
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Plains All American Pipeline, L.P. (NYSE:PAA) entered into a definitive purchase and sale agreement to acquire 50% stake in Bridgetex Pipeline Company, Llc from Occidental Petroleum Corporation (NYSE:OXY) for $1.1 billion on November 5, 2014. In a related transaction, BridgeTex has agreed to sell the southern leg of the pipeline system to Magellan Midstream Partners and Magellan Midstream agreed to enter into a long term capacity lease with BridgeTex pursuant to which BridgeTex shippers will have access to capacity on the Texas City Leg.
The transaction is subject to consummation of the sale of the Texas City Leg by BridgeTex and execution of the capacity lease, completion by Plains GP Holdings, L.P. (NYSE: PAGP) of an underwritten secondary offering pursuant to which Occidental would sell a portion of its equity interest in Plains GP. If an offering is not completed prior to December 31, 2014, both Plains All and Occidental have the right to terminate the overall transaction. The transaction is expected to 1.5% accretive to Plains All targeted 2015 distribution per unit and 5% accretive to Plains GP Holdings distribution per share for 2015. Rell Tipton, Alan Beck, Joe Dilg, John Lynch, Billy Vigdor, Jay Blackman and Will Burns from Vinson & Elkins acted as legal advisors for Plains All American Pipeline, L.P. Hugh Tucker, Jason Rocha, Coleson Bruce, Bryan Cory, Kristen Smith, R.J. Malenfant, Tom Fina, Michael Bodosky, James Chenoweth, Erin Hopkins, Matt Larsen, Zack Pullin, Greg Wagner, Jonathan Bobinger, John Craven, Daniel Kruger, Leah Burcat, Josh Davidson and Paul Elliot of Baker Botts LLP acted as legal advisors to Occidental. Marcia Backus, Ulrik Damborg and Gregory Romero acted as inside legal advisors to Occidental. Richard McGee acted as inside legal advisor to Plains All American Pipeline. Michelle T. Boudreaux of Caldwell Boudreaux Lefler PLLC acted as legal advisor for Occidental.
Plains All American Pipeline, L.P. is a midstream service provider in North America. The Company owns a network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and natural gas liquids (NGL) producing basins (including the Permian Basin) and transportation corridors and at major market hubs in the United States and Canada. It has two segments: Crude Oil and Natural Gas Liquids (NGL). Its Crude Oil segment operations generally consist of gathering and transporting crude oil using pipelines, gathering systems, trucks and at times on barges or railcars, in addition to providing terminalling, storage and other facilities-related services utilizing its integrated assets across the United States and Canada. Its NGL segment operations involve natural gas processing and NGL fractionation, storage, transportation and terminalling. NGL segment is involved in gathering, fractionation, storage, and/or terminalling services to third-party customers.
Plains All American Pipeline, L.P. entered into a definitive purchase and sale agreement to acquire 50% stake in Bridgetex Pipeline Company, Llc from Occidental Petroleum Corporation for $1.1 billion.
PLAINS ALL AMERICAN PIPELINE, L.P. 
