HOUSTON, Oct. 22, 2020
/PRNewswire/ -- Adams Resources & Energy, Inc. (NYSE
AMERICAN: AE) ("Adams" or the "Company") today announced that
GulfMark Energy, Inc., Adams' crude oil marketing subsidiary, and
its wholly owned subsidiary, GulfMark Terminals, LLC (collectively,
"GulfMark") has acquired the outstanding equity interests of
Victoria Express Pipeline, LLC ("VEX") and certain related pipeline
terminal facility assets from EnLink Midstream Operating,
L.P.
The VEX Pipeline System, with truck and storage terminals at
both Cuero and the Port of
Victoria, Texas, is a crude oil
and condensate pipeline system, which connects the heart of the
Eagle Ford Basin to the Gulf Coast waterborne market. The VEX
Pipeline System includes 56 miles of 12-inch pipeline, which spans
DeWitt county to Victoria county, Texas, with 350,000 barrels of above ground
storage, two 8 bay truck offload stations, and access to two docks
at the Port of Victoria. The VEX Pipeline System can receive
crude oil by pipeline and truck, and has downstream pipeline
connections to two terminals today, with potential for additional
downstream connection opportunities in the future. The
pipeline system has a current capacity of 90,000 barrels per
day.
"Over the last several years, the VEX Pipeline System has been
integral to GulfMark's crude oil supply and marketing business in
the Eagle Ford and Gulf Coast region," said Greg Mills, President of GulfMark. "As one
of the system's largest shippers, we look forward to fully
integrating the VEX Pipeline System into our Gulf Coast marketing
business, which will further strengthen our ability to provide
excellent service to the producers in the region, as well as more
effectively service our end-user markets along the Gulf
Coast. As important, the VEX Pipeline System complements our
existing storage terminal and dock at the Port of Victoria, where GulfMark will now control
450,000 barrels of storage with three docks."
Kevin Roycraft, Adams' Chief
Executive Officer and President, commented, "This acquisition is
expected to provide growth opportunities to the current GulfMark
business, as we will participate in a greater portion of the
midstream value chain for crude oil and condensate production
moving from the wellhead to the end market. By effectively
managing these assets, we plan to further enhance the quality and
value of the services our customers have come to expect from
GulfMark, as well as begin to provide midstream services to both
new and former customers of the VEX Pipeline System. Finally,
we believe this transaction will generate long-term cash flow, and
represents another key milestone in our strategic efforts to
prudently grow the business."
Adams Resources & Energy, Inc. is primarily engaged
in the business of crude oil marketing, transportation and storage,
tank truck transportation of liquid chemicals and dry bulk through
its two subsidiaries, GulfMark Energy, Inc. and Service Transport
Company, respectively. For more information, visit
www.adamsresources.com.
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains certain
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements relate to future events and anticipated results of
operations, business strategies, and other aspects of our
operations or operating results. In many cases you can identify
forward-looking statements by terminology such as "anticipate,"
"intend," "plan," "project," "estimate," "continue," "potential,"
"should," "could," "may," "will," "objective," "guidance,"
"outlook," "effort," "expect," "believe," "predict," "budget,"
"projection," "goal," "forecast," "target" or similar words.
Statements may be forward looking even in the absence of these
particular words. Where, in any forward-looking statement, the
Company expresses an expectation or belief as to future results,
such expectation or belief is expressed in good faith and believed
to have a reasonable basis. Forward-looking statements are subject
to risks and uncertainties that could cause actual results to
differ materially from those expressed or implied in the
forward-looking statements, including, but not limited to: Adams'
ability to efficiently integrate the VEX assets and to obtain the
anticipated benefits therefrom, and other risk factors included in
Adams' reports filed with the Securities and Exchange
Commission. However, there can be no assurance that such
expectation or belief will result or be achieved. Unless legally
required, Adams undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contact:
Tracy E. Ohmart
EVP, Chief Financial Officer
tohmart@adamsresources.com
(713) 881-3609
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SOURCE Adams Resources & Energy, Inc.