Noble Midstream Partners LP (NYSE:NBLX), Plains All American Pipeline, L.P. (NYSE:PAA) Buy Advantage Pipeline


Noble Midstream Partners LP (NYSE:NBLX) and Plains All American Pipeline, L.P. (NYSE:PAA) have jointly acquired Advantage Pipeline.

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The transaction was valued at $133 million, the companies said in a joint press release.

Noble Midstream and Plains All American formed a joint venture to purchase Advantage Pipeline which focuses on crude oil transportation in the Permian Basin, primarily serving the growing infrastructure needs of the Delaware Basin.

Noble Midstream paid $66.5 million in cash, funded by available cash on hand and their credit facility, while Plains contributed about 1.3 million PAA units and $26.3 million of cash.

Noble Midstream operates the Advantage system, which includes a 70-mile crude oil pipeline in the southern Delaware Basin from Reeves County to Crane County in Texas with 150,000 barrels of daily shipping capacity and 490,000 barrels of storage capacity.

Noble Midstream Partners LP (NYSE:NBLX) is a master limited partnership formed by Noble Energy to own, operate, develop and acquire domestic midstream infrastructure assets. The partnership provides crude oil, natural gas, and water-related midstream services in the DJ Basin in Colorado and the Delaware Basin in Texas.

Houston, Texas-based Plains All American Pipeline, L.P. (NYSE:PAA) is also a master limited partnership. It owns and operates midstream energy infrastructure as well as provides logistics services for crude oil, natural gas liquids, natural gas and refined products. The partnership has a network of pipeline transportation, storage and gathering assets in main crude oil and NGL producing basins in the United States and Canada.

In addition to existing customers, throughput growth is expected from an acreage dedication from Noble Energy and a volume commitment from Plains Marketing, Noble Midstream and Plains All American said in the statement.

The Advantage Pipeline will be connected to Noble Midstream’s first central gathering facility and Plain’s Wolfbone Ranch Station in the second quarter of 2017.

Shares of Noble Midstream Partners LP (NYSE:NBLX) were trading up 0.76% in the morning session. The stock is up 44.42% for the year.

Shares of Plains All American Pipeline, L.P. (NYSE:PAA) were up 1.37% in the morning. The stock is down 1.33% year-to-date. During the last 12 months, PAA has gained more than 60%.

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