Business
Plains All American and Oryx Midstream Complete Formation of Permian Basin Joint Venture
HOUSTON and MIDLAND, Texas, Oct. 05, 2021 (GLOBE NEWSWIRE) -- Plains All American (Nasdaq: PAA & PAGP) (“Plains”) and Oryx Midstream Holdings LLC (“Oryx”), a
About this update from Plains Gp Holdings, L.p.
[{"type":"text","content":"HOUSTON and MIDLAND, Texas, Oct. 05, 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 that they have successfully completed the formation of their Permian Basin strategic joint venture. Plains Oryx Permian Basin LLC (the “JV”) includes 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. “This is a significant milestone that positions Plains, Oryx and the JV to create significant value for our customers, partners, and investors,” said Willie Chiang, Chairman and CEO of Plains All American. “The Plains and Oryx teams have developed a robust integration strategy that prioritizes a seamless transition for customers and positions the JV to capture opportunities as the Permian continues to grow.” “Today marks an important step for the Plains Oryx Permian Basin joint venture and we are excited to continue our close partnership with the Plains team as we collectively move ahead with integration planning and execution,” said Brett Wiggs, Chief Executive Officer of Oryx. “We are confident that this joint venture will provide significant and mutual benefits to all involved by increasing connectivity, enhancing reliability, and strengthening efficiencies across the Permian Basin. We look forward to continuing to work with the Plains team to grow and strengthen the joint venture in the future.” Plains Oryx Permian JV Overview: Strategic Alignment, Multiple Benefits Natural combination of two leading Permian franchises, provides JV customers enhanced flexibility, optionality and connectivityHighly complementary assets, capabilities, and long-term business models, with direct downstream connections to all major intra-basin and downstream marketsEnhances shipper diversification, economies of scale and long-term Free Cash Flow>4 million dedicated system acres, high-return multi-decade drilling inventory, ~7-year average remaining contract tenorCashless transaction, debt-free entity, durable JV structure that is owned 65% PAA / 35% Oryx (governance consistent with ownership interests)Near-term Free Cash Flow accretive to Plains and Oryx, expecting +/-...