Houston-based Plains All American Pipeline said recently it acquired the Permian Basin crude oil gathering system of Black Knight Midstream. The $55 million deal closed May 1. Plains also acquired the remaining 50 percent interest in Cheyenne Pipeline in southeast Wyoming and completed a debottlenecking project at a fractionation complex in Edmonton, Canada. Willie Chiang, chairman and CEO, said May 9, “Plains delivered another quarter of solid operational and financial performance… Our commitment to financial discipline and financial responsibility remains unchanged.”
Chris Chandler, COO, said of the Black Knight asset, “It’s in the absolute core of the northern Midland Basin. The producer on the system is one of their top assets.”
Chiang said the outlook for Permian production remains strong despite the recent volatility. “We believe a lower price environment will ultimately reinforce the cyclical nature of the commodity markets, leading to a conservative medium- to long-term outlook.”
Leave a Reply