Plains All American Announces Bolt-on Acquisitions, Capital Structure Optimization & Distribution Increase
Plains All American Pipeline (PAA) has announced three strategic bolt-on acquisitions totaling approximately $670 million, along with significant capital structure optimization initiatives. The company is acquiring Ironwood Midstream Energy for $475 million, expanding its Eagle Ford Basin presence. Through its joint venture, it acquired Medallion Midstream's Delaware Basin crude oil gathering business for $160 million ($105 million net to PAA), and purchased the remaining 50% stake in Midway Pipeline for $90 million.
Additionally, PAA will purchase about 12.7 million units (18%) of its outstanding Series A Preferred Units at $26.25 per unit, totaling approximately $330 million. The company also announced a 20% increase in its quarterly distribution from $0.3175 to $0.38 per unit. Post-transactions, PAA's leverage ratio is expected to remain at or below their target range of 3.25x to 3.75x.
Plains All American Pipeline (PAA) ha annunciato tre acquisizioni strategiche che ammontano a circa $670 milioni, insieme a significative iniziative di ottimizzazione della struttura del capitale. L'azienda sta acquisendo Ironwood Midstream Energy per $475 milioni, espandendo la sua presenza nel bacino di Eagle Ford. Attraverso la sua joint venture, ha acquisito il business di raccolta di petrolio greggio di Medallion Midstream nel bacino del Delaware per $160 milioni (di cui $105 milioni netti per PAA), e ha acquistato la restante partecipazione del 50% in Midway Pipeline per $90 milioni.
Inoltre, PAA acquister脿 circa 12,7 milioni di unit脿 (18%) delle sue unit脿 privilegiate di Serie A in circolazione a $26,25 per unit脿, per un totale di circa $330 milioni. L'azienda ha anche annunciato un aumento del 20% della distribuzione trimestrale, passando da $0,3175 a $0,38 per unit脿. Dopo le transazioni, il rapporto di indebitamento di PAA 猫 previsto rimanere al di sotto o pari al loro intervallo target di 3,25x a 3,75x.
Plains All American Pipeline (PAA) ha anunciado tres adquisiciones estrat茅gicas que suman aproximadamente $670 millones, junto con importantes iniciativas de optimizaci贸n de la estructura de capital. La compa帽铆a est谩 adquiriendo Ironwood Midstream Energy por $475 millones, ampliando su presencia en la cuenca de Eagle Ford. A trav茅s de su empresa conjunta, adquiri贸 el negocio de recolecci贸n de petr贸leo crudo de Medallion Midstream en la cuenca de Delaware por $160 millones (de los cuales $105 millones son netos para PAA), y compr贸 el 50% restante de Midway Pipeline por $90 millones.
Adem谩s, PAA comprar谩 aproximadamente 12.7 millones de unidades (18%) de sus Unidades Preferidas de Serie A en circulaci贸n a $26.25 por unidad, totalizando aproximadamente $330 millones. La compa帽铆a tambi茅n anunci贸 un aumento del 20% en su distribuci贸n trimestral, de $0.3175 a $0.38 por unidad. Despu茅s de las transacciones, se espera que la ratio de apalancamiento de PAA se mantenga en o por debajo de su rango objetivo de 3.25x a 3.75x.
頂岆爤鞚胳姢 鞓 鞎勲⿺毽垢 韺岇澊頂勲澕鞚(PAA)鞚 鞎 6鞏 7觳滊 雼煬鞐 雼晿電 靹 臧歆 鞝勲灥鞝 鞚胳垬鞕 頃粯 鞛愲掣 甑“ 斓滌爜頇 鞚措媹靺旐嫲敫岆ゼ 氚滍憸頄堨姷雼堧嫟. 鞚 須岇偓電 鞎勳澊鞏胳毎霌 氙鸽摐鞀ろ姼毽 鞐愲剤歆毳 4鞏 7觳 5氚彪 雼煬鞐 鞚胳垬頃橃棳 鞚搓竴 韽摐 攵勳鞐愳劀鞚 鞛呾毳 頇曤寑頃橁碃 鞛堨姷雼堧嫟. 頃╈瀾 韴瀽毳 韱淀暣 氅旊嫭毽槰 氙鸽摐鞀ろ姼毽 雿鸽澕鞗柎 攵勳鞚 鞗愳湢 靾橃 靷梾鞚 1鞏 6觳滊 雼煬(靾 PAA 1鞏 5氚彪 雼煬)鞐 鞚胳垬頄堨溂氅, 氙鸽摐鞗澊 韺岇澊頂勲澕鞚鞚 雮橂ǜ歆 50% 歆攵勳潉 9觳滊 雼煬鞐 甑Г頄堨姷雼堧嫟.
霕愴暅 PAA電 鞎 1觳270毵 鞙犽嫑(18%)鞚 鞙犿喌 欷戩澑 A 鞁滊Μ歃 鞖办劆欤茧ゼ 鞙犽嫑雼 26.25雼煬鞐 甑Г頃橃棳 齑 鞎 3鞏 3觳滊 雼煬鞐 雼暕雼堧嫟. 鞚 須岇偓電 攵勱赴 氚半嫻旮堨潉 鞙犽嫑雼 $0.3175鞐愳劀 $0.38搿 20% 鞚胳儊頃滊嫟瓿 氚滍憸頄堨姷雼堧嫟. 瓯半灅 頉 PAA鞚 攵毂 牍勳湪鞚 氇╉憸 氩旍渼鞚 3.25氚办棎靹 3.75氚 鞚错晿鞐 鞙犾霅 瓴冹溂搿 鞓堨儊霅╇媹雼.
Plains All American Pipeline (PAA) a annonc茅 trois acquisitions strat茅giques totalisant environ 670 millions de dollars, ainsi que des initiatives significatives d'optimisation de la structure du capital. La soci茅t茅 acquiert Ironwood Midstream Energy pour 475 millions de dollars, renfor莽ant sa pr茅sence dans le bassin d'Eagle Ford. Gr芒ce 脿 sa coentreprise, elle a acquis l'activit茅 de collecte de p茅trole brut de Medallion Midstream dans le bassin du Delaware pour 160 millions de dollars (105 millions de dollars nets pour PAA), et a achet茅 le reste des 50 % de Midway Pipeline pour 90 millions de dollars.
De plus, PAA ach猫tera environ 12,7 millions d'unit茅s (18 %) de ses unit茅s pr茅f茅rentielles de s茅rie A en circulation 脿 26,25 $ par unit茅, pour un total d'environ 330 millions de dollars. La soci茅t茅 a 茅galement annonc茅 une augmentation de 20 % de sa distribution trimestrielle, passant de 0,3175 $ 脿 0,38 $ par unit茅. Apr猫s les transactions, le ratio d'endettement de PAA devrait rester dans ou en dessous de sa fourchette cible de 3,25x 脿 3,75x.
Plains All American Pipeline (PAA) hat drei strategische Akquisitionen im Gesamtwert von etwa 670 Millionen Dollar bekannt gegeben, zusammen mit bedeutenden Initiativen zur Optimierung der Kapitalstruktur. Das Unternehmen erwirbt Ironwood Midstream Energy f眉r 475 Millionen Dollar und erweitert damit seine Pr盲senz im Eagle Ford Basin. Durch sein Joint Venture hat es das Roh枚l-Sammelgesch盲ft von Medallion Midstream im Delaware Basin f眉r 160 Millionen Dollar (105 Millionen Dollar netto f眉r PAA) 眉bernommen und den verbleibenden 50%-Anteil an Midway Pipeline f眉r 90 Millionen Dollar erworben.
Zus盲tzlich wird PAA etwa 12,7 Millionen Einheiten (18%) seiner ausstehenden Serien-A-Vorzugsanteile zu einem Preis von 26,25 Dollar pro Einheit erwerben, was insgesamt etwa 330 Millionen Dollar betr盲gt. Das Unternehmen gab auch eine Erh枚hung der viertelj盲hrlichen Aussch眉ttung um 20% von 0,3175 auf 0,38 Dollar pro Einheit bekannt. Nach den Transaktionen wird das Verschuldungsverh盲ltnis von PAA voraussichtlich im Rahmen des Zielbereichs von 3,25x bis 3,75x bleiben.
- Three strategic acquisitions expanding presence in key basins for $670 million
- 20% increase in quarterly distribution to $0.38 per unit
- Leverage ratio expected to remain at or below target range (3.25x-3.75x)
- Immediate value creation through earnings and distributable cash flow accretion
- Significant cash outlay of $1 billion combined for acquisitions and preferred units buyback
Insights
HOUSTON, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: ) and Plains GP Holdings (Nasdaq: ) (collectively, 鈥淧lains鈥) announced today three bolt-on acquisitions for an aggregate cash consideration of approximately
Bolt-on Acquisitions
- Plains signed a definitive agreement to acquire Ironwood Midstream Energy, which owns an Eagle Ford Basin gathering system, from EnCap Flatrock Midstream for approximately
$475 million . The transaction is expected to close in the first quarter of 2025 following satisfaction of customary closing conditions. - Effective January 1, 2025, a subsidiary of Plains Permian Basin joint venture, Plains Oryx Permian Basin LLC, acquired Medallion Midstream鈥檚 Delaware Basin crude oil gathering business from The Energy & Minerals Group for approximately
$160 million ($105 million net to PAA鈥檚 interest). - On December 23, 2024, a subsidiary of Plains acquired the remaining
50% interest in Midway Pipeline LLC from a subsidiary of CVR Energy for approximately$90 million . - These transactions further enhance Plains鈥 crude oil footprint in the Permian, Eagle Ford and Mid-Con at returns consistent with our bolt-on framework and provide incremental return of capital opportunities for our unitholders.
Capital Structure Optimization
- Plains has also agreed to purchase approximately 12.7 million units, or
18% , of its outstanding Series A Preferred Units at 鈥減ar鈥 ($26.25) for a purchase price of approximately$330 million (plus accrued and unpaid distributions) from EnCap Flatrock Midstream. This transaction is expected to close in late January 2025. - After giving effect to all of these transactions, Plains' leverage ratio is expected to be at or below the low-end of our target range of 3.25x to 3.75x, continuing to provide significant balance sheet optionality and flexibility.
Return of Capital Update
- The Plains Board of Directors has approved an increase in the quarterly distribution payable in February 2025 for both PAA common units and PAGP Class A shares from
$0.31 75 per unit to$0.38 per unit. On an annualized basis, the distribution represents a$0.25 per unit, or20% , increase from the distribution paid in November 2024.
鈥淭he bolt-on acquisitions announced today are an excellent strategic fit for Plains and allow us to progress our efficient growth strategy by adding high-quality assets adjacent to our existing integrated footprint,鈥 said Willie Chiang, Chairman and CEO of Plains.聽鈥淚mportantly, these transactions create immediate value by delivering sustainable accretion to earnings, distributable cash flow and accelerating return of capital to unitholders. Our capital allocation framework remains intact, and we remain committed to financial flexibility, capital discipline, generating meaningful free cash flow and increasing return of capital to our unitholders as demonstrated today.鈥
About Plains
PAA is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil and natural gas liquids (NGL). PAA owns an extensive network of pipeline gathering and transportation systems, in addition to terminalling, storage, processing, fractionation and other infrastructure assets serving key producing basins, transportation corridors and major market hubs and export outlets in the United States and Canada. On average, PAA handles approximately eight million barrels per day of crude oil and NGL.
PAGP is a publicly traded entity that owns an indirect, non-economic controlling general partner interest in PAA and an indirect limited partner interest in PAA, one of the largest energy infrastructure and logistics companies in North America.
PAA and PAGP are headquartered in Houston, Texas. More information is available at .
Investor Relations Contacts:
Blake Fernandez
Michael Gladstein
(866) 809-1291
FAQ
What are the three acquisitions announced by Plains All American (PAA) in January 2025?
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