Midland-based Oryx Midstream and Houston-based Plains All American said Tuesday they are merging their assets, operations and commercial activities in the Permian Basin into a new joint venture, Plains Oryx Permian Basin. The transaction will include all of Oryx’s Permian assets and – with the exception of Plains’ long-haul pipeline systems and certain of its intra-basin terminal assets – the vast majority of Plains’ assets in the Permian Basin. Plains will own 65 percent and operate the JV. Closing is expected in 2021Q4. Willie Chiang, Plains chairman and CEO, said Plains Oryx Permian Basin is “structured as a debt-free JV entity through a cashless transaction.” Brett Wiggs, Oryx CEO, said the JV will be “the premier crude oil logistics system in the basin.”
The JV profile includes 5,500 pipeline miles with 6.8 million b/d of pipeline system multi-segment capacity, connections to all major intra-basin and downstream markets, and 4.1 million dedicated system acres. They expect $50 million in operational, cost and capital synergies within 12 months.