Plains All American, Oryx Midstream to Merge Permian Basin Assets

The combination with a vast majority of Plains All American’s Permian Basin assets is a “natural evolution of the Oryx growth story,” says Oryx Midstream CEO Brett Wiggs.

Plains All American, Oryx Midstream to Merge Permian Basin Assets

Oryx Midstream, a portfolio company of Stonepeak Infrastructure Partners based in Midland, Texas, is one of the largest privately held midstream crude operators in the Permian Basin. (Source: Oryx Midstream)

Plains All American Pipeline LP agreed to merge a vast majority of its Permian Basin assets with privately held Oryx Midstream Holdings LLC, the companies said in a joint release on July 13.

The merger, structured as a cashless transaction, will create a debt-free joint venture (JV) named Plains Oryx Permian Basin LLC that the companies expect will generate $50 million of operational synergies within the first 12 months and potentially reach over $100 million over time.

Since its launch in 2013, Oryx Midstream, a portfolio company of Stonepeak Infrastructure Partners based in Midland, Texas, has grown into one of the largest privately held midstream crude operators in the Permian Basin. According to CEO Brett Wiggs, its combination with Plains is a “natural evolution of the Oryx growth story.”

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.