Business
Plains All American and Oryx Midstream Announce Permian Basin Joint Venture
Conference call to be hosted by Plains today at 8:30 a.m. EDT / 7:30 a.m. CDT HOUSTON and MIDLAND, Texas, July 13, 2021 (GLOBE NEWSWIRE) -- Plains All
About this update from Plains All American Pipeline, L.p.
[{"type":"text","content":"Conference call to be hosted by Plains today at 8:30 a.m. EDT / 7:30 a.m. CDT\nHOUSTON and MIDLAND, Texas, July 13, 2021 (GLOBE NEWSWIRE) -- Plains All American (Nasdaq: PAA & PAGP) (“Plains”) and Oryx Midstream Holdings LLC (“Oryx”), a portfolio company of Stonepeak Infrastructure Partners, today announced they have entered into a definitive agreement to merge their respective assets, operations and commercial activities within the Permian Basin into a newly formed strategic joint venture, Plains Oryx Permian Basin LLC (“Plains Oryx Permian Basin” or the “JV”). The transaction will include all of Oryx’s Permian assets and, with the exception of Plains’ long-haul pipeline systems and certain of its intra-basin terminal assets, the vast majority of Plains’ assets located within the Permian Basin. Joint Venture Summary Significant value for customers via increased connectivity, operational flexibility, and access to marketsHighly complementary Permian Basin assets, capabilities, and long-term business modelsJV Ownership: 65% Plains / 35% Oryx (governance consistent with ownership interests)Plains will serve as operator of the JVA Joint Operating Committee that includes representatives from Plains and Oryx will provide oversight on material JV operating and commercial decisionsJV will be consolidated into PAA‘s financial statementsNear-term free cash flow accretive to Plains and OryxCashless transaction, debt-free JV entityDurable JV structure, attractive in any reasonable oil price environment “This is a very positive announcement for Plains, Oryx and our Permian Basin customers,” said Willie Chiang, Chairman and CEO of Plains All American. “This joint venture is a natural combination and logical next step to optimizing our highly complementary systems. Structured as a debt-free JV entity through a cashless transaction, this aligns with Plains’ financial and portfolio optimization strategies, is near-term free cash flow accretive to Plains and Oryx, and reinforces Plains’ ability to maximize free cash flow for our investors, while enhancing our overall credit profile.” “Since our team started Oryx in late 2013, we have been committed to being a leading strategic partner to our customers and to building a world-class system in the Permian,” said Brett Wiggs, Chief Executive Officer of Oryx. “This combination is a natural evolution ...