Magellan Midstream Partners LP (NYSE: MMP) will buy 800 miles for refined petroleum products pipeline for $190 million.
Plains All American Pipeline LP (NYSE: PAA) is selling the assets, which are part of the Rocky Mountain pipeline and New Mexican pipeline systems.
The deal is expected to close in the second quarter of 2013, and will be funded with cash on hand and borrowings under Magellan’s revolving credit facility, if necessary.
Magellan, headquartered in Tulsa, Okla., focuses on transporting, storing and distributing petroleum products.
Plains recently bought crude oil and gathering assets in the Eagle Ford area of south Texas for $125 million http://www.themiddlemarket.com/news/plains-buys-oil-assets-for-125-million-latest-in-long-streak-of-energy-deal-236140-1.html and four crude oil terminals for about $500 million. http://www.themiddlemarket.com/news/plains-all-american-pays-500-million-on-four-oil-terminals-235923-1.html