Plains All American Pipeline, L.P. and Noble Midstream Partners LP have entered into definitive agreements to form a 50/50 joint venture (JV) to acquire Advantage Pipeline, L.L.C. (Advantage), which owns a 70-mile, 16-inch crude oil pipeline located in the southern Delaware Basin (the Advantage Pipeline).
The JV will acquire Advantage for USD 133M. The majority of PAA’s 50% share is expected to be paid in PAA units issued to certain of the sellers at closing.
The Advantage Pipeline has a capacity of 150,000 barrels per day originating in eastern Reeves County, Texas running through Pecos and Ward Counties, to Crane County, Texas. The Advantage Pipeline also includes approximately 490,000 barrels of combined crude storage at three separate trucking stations.
NBLX will serve as operator and will construct a 15-mile pipeline to deliver crude oil to the Advantage Pipeline from its central gathering facility in the southern Delaware Basin. PAA will construct a pipeline to connect its Wolfbone Ranch facility to the Advantage Pipeline near Highway 285. The connections are estimated to be completed in the second quarter of this year.
