TULSA, Okla., Feb. 4, 2020 /PRNewswire/ -- Saddlehorn
Pipeline Company, LLC ("Saddlehorn") announced today that Black
Diamond Gathering LLC ("Black Diamond"), through its majority owner
Noble Midstream Partners LP (NASDAQ: NBLX) ("NBLX"), has purchased
a 20% membership interest in Saddlehorn for $155 million effective Feb. 1, 2020. As previously announced, an option
had been granted to Black Diamond in conjunction with recent volume
commitments to the pipeline.
The Saddlehorn pipeline is currently capable of transporting
190,000 barrels per day ("bpd") of crude oil and condensate from
the DJ and Powder River Basins to storage facilities in
Cushing, Oklahoma. Supported by
increased volume commitments from shippers, the pipeline's capacity
is being increased by 100,000 bpd to a new total capacity of
approximately 290,000 bpd, providing shippers enhanced access to
market. The higher capacity is expected to be available in late
2020 following the capital-efficient addition of incremental
pumping and storage capabilities.
The Saddlehorn pipeline was previously owned jointly by
affiliates of Magellan Midstream Partners, L.P. (NYSE: MMP)
("Magellan"), Plains All American Pipeline, L.P. (NYSE: PAA)
("Plains") and Western Midstream Partners, LP (NYSE: WES) ("WES").
After Black Diamond's purchase, with Magellan and Plains each
selling a 10% interest, Magellan and Plains each own a 30%
membership interest and Black Diamond and WES each own a 20%
membership interest in Saddlehorn. Magellan continues to serve as
operator of the Saddlehorn pipeline.
About Magellan Midstream Partners, L.P.
Magellan
Midstream Partners, L.P. (NYSE: MMP) is a publicly traded
partnership that primarily transports, stores and distributes
refined petroleum products and crude oil. Magellan owns the longest
refined petroleum products pipeline system in the country, with
access to nearly 50% of the nation's refining capacity, and can
store more than 100 million barrels of petroleum products such as
gasoline, diesel fuel and crude oil. More information is available
at www.magellanlp.com.
About Plains All American Pipeline, L.P.
Plains All American Pipeline, L.P. (NYSE: PAA) is a publicly traded
master limited partnership that owns and operates midstream energy
infrastructure and provides logistics services for crude oil,
natural gas liquids ("NGL") and natural gas. Plains owns an
extensive network of pipeline transportation, terminalling, storage
and gathering assets in key crude oil and NGL producing basins and
transportation corridors and at major market hubs in the United States and Canada. On average, Plains handles more than 6
million bpd of crude oil and NGL in its Transportation segment.
Plains is headquartered in Houston,
Texas. More information is available at
www.plainsallamerican.com.
About Western Midstream Partners, LP
Western Midstream Partners, LP (NYSE: WES) is a Delaware master limited partnership formed to
acquire, own, develop and operate midstream assets. With midstream
assets located in the Rocky Mountains, North-central Pennsylvania, Texas and New
Mexico, WES is engaged in the business of gathering,
compressing, treating, processing and transporting natural gas;
gathering, stabilizing and transporting condensate, NGLs and crude
oil; and gathering and disposing of produced water for its
customers. In addition, in its capacity as a processor of natural
gas, WES also buys and sells natural gas, NGLs and condensate on
behalf of itself and as agent for its customers under certain of
its contracts. More information is available at
www.westernmidstream.com.
About Black Diamond Gathering LLC
Black Diamond is a joint venture between Noble Midstream Partners
LP (NASDAQ: NBLX) and Greenfield Midstream. NBLX owns 54.4% of
Black Diamond and Greenfield Midstream owns the remaining 45.6%.
NBLX operates Black Diamond, which includes a large-scale
integrated crude oil gathering system in the DJ Basin, consisting
of approximately 240 miles of pipeline in operation, 300,000 bpd
delivery capacity and 390,000 bpd crude oil storage capacity. The
system is connected to every major takeaway pipeline in the DJ
Basin, including the White Cliffs Pipeline,
the Saddlehorn Pipeline, the Grand Mesa Pipeline and the Pony
Express Pipeline. NBLX and Greenfield Midstream jointly provide
commercial efforts to bring additional producer dedications to
Black Diamond Gathering and pursue expansion opportunities.
Except for statements of historical fact, the information in
this news release constitutes forward-looking statements as defined
by federal law. Although the statements are based on reasonable
assumptions, such forward-looking statements necessarily involve
known and unknown risks and uncertainties that may cause actual
outcomes to be materially different. Important factors that could
lead to material changes in performance include the risk and
uncertainties discussed in filings with the Securities and Exchange
Commission by Magellan, NBLX, Plains and WES. This news release
speaks only as of the date issued, and the companies undertake no
obligation to update any forward-looking statements because of new
information, future events or any other factors.
Contact Information:
Magellan:
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Paula Farrell,
Investor Relations
Bruce Heine, Media
Relations
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(918)
574-7650
(918)
574-7010
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paula.farrell@magellanlp.com
bruce.heine@magellanlp.com
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Plains:
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Brett Magill,
Investor Relations
Brad Leone, Media
Relations
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(866)
809-1291
(866)
809-1290
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WES:
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Kristen Shults,
Investor Relations
Abby Dempsey,
Investor Relations
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(832)
636-6000
(832)
636-6000
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kristen.shults@westernmidstream.com
abby.dempsey@westernmidstream.com
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Black
Diamond:
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Park Carrere,
Investor Relations
Casey Nikoloric,
Investor Relations
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(281)
872-3208
(303)
433-4397
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park.carrere@nblenergy.com
casey.nikoloric@ten10group.com
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SOURCE Magellan Midstream Partners, L.P.