Plains All American Pays $500M for Oil Terminals
The deal puts a spotlight on middle-market energy M&A amid several larger deals within the sector
Plains All American Pipeline LP (NYSE: PAA) will acquire four operate crude oil rail terminals from U.S. Development Group for about $500 million.
The assets include crude oil rail loading terminals located in the Eagle Ford, Bakken and Niobrara regions with an aggregate loading capacity of 85,000 barrels per day.
Plains All American owns a network of rail facilities with 18 loading or unloading terminals that transports natural gas liquids through the U.S. and Canada. The Houston-based company transports, stores and markets crude oil, refined products and liquid natural gas.
U.S. Development Group, headquartered in Pasedena, Texas, owns and operates terminal facilities in the U.S.
The deal was announced on the heels of Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) spending $10.3 billion on two oil and gas companies: Plains Exploration & Production Co. (NYSE: PXP) and McMoRan Exploration Co. (NYSE: MMR).
For more on the energy sector, see "Fracking Fuels Energy Deals."
For more information on related topics, visit the following: