Noble Midstream Partners LP (ticker: NBLX) and Plains All American Pipeline, L.P. (ticker: PAA) announced the completion of the Advantage Pipeline, L.L.C. 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.
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, 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.
