Plains All American LP picked up terminal assets on May 21 located in Oklahoma’s famous Cushing oil hub.
CVR Energy Inc. said it sold the 1.5 million-barrel crude oil terminal located in Cushing to an affiliate of Houston-based Plains for roughly $36 million.
In addition to the sale, CVR also announced it has begun to explore strategic alternatives that would maximize its value for shareholders. The company engaged BofA Merrill Lynch as its financial adviser to assist in this initiative, which could include a potential sale.
“CVR Energy is committed to maximizing value for its stockholders,” Dave Lamp, CVR Energy’s CEO, said in a statement on May 21. “Both the sale of the Cushing terminal, which allowed us to derive value from an underutilized asset, and the exploration of potential strategic alternatives support this commitment.”
CVR is a Sugar Land, Texas-based diversified holding company primarily engaged in the petroleum refining and marketing business. The company does not have a defined timeline for the exploration of strategic alternatives and makes no assurances that its evaluation will result in any transaction being announced or consummated.
The Cushing transaction closed concurrently with the signing of the purchase and sale agreement, according to the CVR release.