HOUSTON--(BUSINESS WIRE)--Noble Midstream Partners LP (NYSE: NBLX) (“Noble Midstream”) and Plains All American Pipeline, L.P. (NYSE: PAA) (“Plains”) announced today the completion of the Advantage Pipeline, L.L.C. (“Advantage”) acquisition for $133 million through a newly formed 50/50 joint venture. Noble Midstream contributed $66.5 million of cash, funded by available cash on hand and their credit facility, and Plains contributed approximately 1.3 million PAA units and $26.3 million of cash.
Noble Midstream serves as the operator of the Advantage system, which includes a 70-mile crude oil pipeline in the southern Delaware Basin from Reeves County, Texas to Crane County, Texas with 150,000 barrels of daily shipping capacity (expandable to over 200,000 barrels per day) and 490,000 barrels of storage capacity.
In addition to existing customers, throughput growth is expected from an acreage dedication from Noble Energy, Inc. and a volume commitment from Plains Marketing, L.P. Connections to the Advantage Pipeline from Noble Midstream’s first central gathering facility and Plain’s Wolfbone Ranch Station remain on schedule for completion in the second quarter of this year.
About Noble Midstream Partners
Noble Midstream Partners LP is a growth-oriented master limited partnership formed by Noble Energy, Inc., to own, operate, develop and acquire domestic midstream infrastructure assets. NBLX currently provides crude oil, natural gas, and water-related midstream services in the DJ Basin in Colorado and the Delaware Basin in Texas. For more information, please visit www.nblmidstream.com.
About Plains All American Pipeline
Plains All American Pipeline, L.P. is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids (“NGL”), natural gas and refined products. PAA owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, PAA handles over 4.6 million barrels per day of crude oil and NGL in its Transportation segment. PAA is headquartered in Houston, Texas. More information is available at www.plainsallamerican.com.
Forward Looking Statements
This news release contains certain “forward-looking statements” within the meaning of federal securities law. Words such as “anticipates”, “believes”, “expects”, “intends”, “will”, “should”, “may”, “estimates”, and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect NBLX’s and PAA’s current views about future events. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, without limitation, Noble Energy, Inc.’s ability to meet its drilling and development plans, Plains Marketing, L.P.’s ability to satisfy certain volume commitments, changes in general economic conditions, and other risks inherent in the businesses of NBLX and PAA that are discussed in their respective filings with the Securities and Exchange Commission. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither NBLX nor PAA assumes any obligation to update forward-looking statements should circumstances, management’s estimates, or opinions change.