Magellan Midstream Completes $135 Million Acquisition Of Rocky Mountain Pipeline

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
$135.0MM
Description

Acquired Rocky Mountain pipeline assets including 550 miles of pipeline.

Magellan Midstream Partners LP (NYSE: MMP) closed on its acquisition of Rocky Mountain pipeline assets from Plains All American Pipeline LP (NYSE: PAA) for $135 million, the company announced Nov. 15.

The pipeline system includes 550 miles of common carrier pipeline that distributes refined petroleum products in Colorado, South Dakota and Wyoming. The system includes four terminals with nearly 1.7 million barrels of storage.

"This Rocky Mountain pipeline system is a strategic fit with Magellan's existing asset footprint, leveraging our refined products expertise and existing customer relationships while extending the reach of our pipeline system to allow us to serve new geographic markets," Michael Mears, CEO, said in the release.

Magellan funded the purchase price primarily with proceeds from the partnership's recent debt offering.

Magellan Midstream Partners LP engages in the transportation, storage, and distribution of petroleum products in the U.S. The company is headquartered in Tulsa, Okla.