Summary
Magellan Midstream Partners, L.P. (MMP) is an owner, operator, and acquirer of a diversified portfolio of energy assets, agreed to acquire oil storage and pipeline assets from BP Pipelines Inc., a unit of embattled oil giant BP Plc, for a purchase consideration of $289 million.
The acquisition includes 7.8 million barrels of crude oil storage and more than 100 miles of active petroleum pipelines from BP Pipelines in North America. Along with, 2 million barrels of crude oil storage, the partnership is currently under construction at Cushing. After the transaction, Magellan will be one of the largest owners of crude oil storage in the Cushing crude oil hub.
The acquisition will also provide the company with nearly 40 miles of crude oil pipelines traversing from Houston to Texas City. It varies in size between 24 and 26 inches in diameter. This common carrier pipeline system can be connected to every major refinery within Houston and Texas City.
The acquisition is expected to close within 60 days subject to regulatory approval. On the closing of transaction, the partnership will also acquire certain crude oil tank working inventory at fair market value, which is currently estimated to be approximately $50 million.
Scope
- Rationale behind Magellan Midstream Partners acquiring assets from BP Pipelines
- Strategic Benefits for the companies involved
- Geography covered -US
- Develop a sound undestanding of the major M&A's, Partnerships, And Joint Ventures taking place in North American Oil & Gas industry
- Identify the most lucrative segments to leverage on the growth oppurtunities available in the US oil & gas market
- Get a detailed analysis of a deal to enable you to take better decisions