August 12, 2026 [Storage Terminals Magazine]- California Resources Corporation has entered into an agreement to acquire Crimson Midstream Holdings, LLC (Crimson) from CorEnergy Infrastructure Trust, Inc. for total cash consideration of approximately $63 million, subject to customary adjustments.

The proposed transaction is expected to further strengthen CRC’s position as an integrated energy infrastructure platform focused on California, while expanding its midstream capabilities and access to key markets across the state.

According to CRC, the acquisition will provide greater flexibility in transporting California-produced crude oil to high-value markets, while improving flow assurance and connectivity across its existing infrastructure portfolio.

Acquisition Covers Approximately 2,000 Miles of Pipelines

The transaction includes approximately 2,000 miles of California pipeline infrastructure**, with combined transportation capacity of up to approximately 400,000 barrels per day.

The assets included in the acquisition comprise the SoCal Pipeline Network, IVEC Line, San Pablo Bay Pipeline, KLM Pipeline, as well as other strategic infrastructure.

CRC expects the expanded network to enhance its ability to transport crude oil safely and efficiently across California. The infrastructure is also expected to provide additional transportation options and improve access to key markets for both CRC and third-party producers.

Strategic and Financial Benefits

The acquisition is valued at approximately 4.4 times estimated 2027 adjusted EBITDA, positioning the transaction as an attractively priced addition to CRC’s infrastructure portfolio, according to the company.

Beyond the financial considerations, the pipeline assets offer strategic value because of their established infrastructure corridors and their role in connecting California production with important markets.

The expanded network is also expected to support the transportation of locally produced, lower-carbon-intensity barrels while providing greater operating flexibility and flow assurance.

Benefits for California Producers

The transaction could also provide greater transportation optionality for Central Valley producers, including independent operators. Improved access to higher-value markets may help producers reduce exposure to constrained outlets and associated pricing discounts.

CRC said the infrastructure is expected to support the broader California economy by contributing to local employment, royalty revenues and the reliable supply of locally produced energy.

Transaction Expected to Close in Q3 2026

Completion of the acquisition remains subject to customary regulatory approvals, with closing currently expected during the third quarter of 2026.

Following completion, CRC plans to provide additional financial and operating guidance related to the acquired assets.

Jefferies LLC is serving as financial advisor to CRC, while Evercore is advising CorEnergy Infrastructure Trust on the transaction.

CRC has based its estimated 2027 adjusted EBITDA on assumptions including continued operation of the acquired pipeline systems at current levels, projected higher throughput on the San Pablo Bay Pipeline, transportation rates consistent with existing tariffs, and payments made by CRC as a shipper on certain acquired pipelines. The estimate does not include material capital expenditures for the period and represents a non-GAAP financial measure.