November 20, 2013 [Oil and Gas Investor] - Magellan Midstream Partners LP closed on its acquisition of Rocky Mountain pipeline assets from Plains All American Pipeline LP for $135 million, the company announced Nov. 15.
The pipeline system includes 550 miles of common carrier pipeline that distributes refined petroleum products in Colorado, South Dakota and Wyoming. The system includes four terminals with nearly 1.7 million barrels of storage.
“This Rocky Mountain pipeline system is a strategic fit with Magellan’s existing asset footprint, leveraging our refined products expertise and existing customer relationships while extending the reach of our pipeline system to allow us to serve new geographic markets,” Michael Mears, CEO, said in the release.
Magellan funded the purchase price primarily with proceeds from the partnership’s recent debt offering.
