Plains All American Pipeline LP (PAA) disclosed on Aug. 4 its subsidiary was the buyer of Diamondback Energy’s 43% interest in a Permian Basin pipeline.
A subsidiary of Plains Oryx Permian Basin LLC acquired Diamondback Energy's interest in the OMOG JV LLC for approximately $225 million with $145 million net to PAA's interest. The deal closed on July 28th.
The OMOG JV LLC operates about 400 miles of crude oil gathering and regional transport pipelines, as well as approximately 350,000 bbl of crude storage in Midland, Martin, Andrews and Ector counties, Texas, according to Diamondback.
"Our team remains focused on execution while continuing to identify and progress capital efficient growth opportunities; as a result, we expect to be at the high-end of our 2023 EBITDA guidance range," said Willie Chiang, chairman and CEO of Plains said in an Aug. 4 earnings release. "We announced multiple strategic actions this quarter, including a bolt-on acquisition in the Permian that will complement our existing geographic footprint. Additionally, we took steps to improve the long-term durability and quality of our cash flow stream in the NGL segment by sanctioning the debottlenecking project at our Fort Sask complex and extending the duration of our contracts across our NGL portfolio.”
Recommended Reading
Kimmeridge-SilverBow Public Feud Gets Ugly as Firm Suggests New Directors
2024-04-01 - Kimmeridge Energy Management said in a letter that should SilverBow continue to “stonewall” consideration of a merger offer, shareholders should elect three new independent board members.
SilverBow Gears Up for Proxy Fight with Kimmeridge
2024-04-09 - Both SilverBow Resources and Kimmeridge Energy Management have proposed a slate of candidates for the board of directors with a vote set for May 21.
Could Crescent, SilverBow Buy More in South Texas After $2.1B Deal?
2024-05-17 - The combination of Crescent Energy and SilverBow Resources will yield one of the Eagle Ford’s top producers—and the pro forma E&P could look to gobble up more acreage in South Texas after closing.
Crescent Energy to Buy Eagle Ford’s SilverBow for $2.1 Billion
2024-05-16 - Crescent Energy’s acquisition of SilverBow Resources will create the second largest Eagle Ford Shale E&P with production of about 250,000 boe/d, the companies said.
Making Bank: Top 10 Oil and Gas Dealmakers in North America
2024-02-29 - MergerLinks ranks the key dealmakers behind the U.S. biggest M&A transactions of 2023.