Saddlehorn Pipeline Welcomes Additional Owner
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.
Paula Farrell, Investor Relations
Bruce Heine, Media Relations
Brett Magill, Investor Relations
Brad Leone, Media Relations
Kristen Shults, Investor Relations
Abby Dempsey, Investor Relations
Park Carrere, Investor Relations
Casey Nikoloric, Investor Relations
SOURCE Magellan Midstream Partners, L.P.