Master limited partnership, Plains All American Pipeline L.P. (PAA) announced that it has acquired additional 21% stakes in the Capline Pipeline system and 100% stake in 720,000 barrels of tankage at Patoka, Illinois. The Capline assets were acquired for an aggregate consideration of approximately $64 million. The partnership acquired these assets from Chevron, Marathon Oil Corporation and Shell Pipeline Company L.P. in a series of direct or indirect transactions.
 
The deal makes Plains the largest owner in Capline pipeline, with an aggregate interest of 43%, adding to the initial 22% interest it acquired in 2004.
 
The Capline pipeline is a 633-mile, 40-inch mainline crude oil pipeline that originates in St. James, Louisiana, and terminates in Patoka, Illinois. This system is one of the primary transportation routes for shipping crude oil and condensate to the Midwestern U.S., accessing approximately 3 million barrels per day of refining capacity in PADD II. Capline is a key transporter of sweet and light sour foreign crude to PADD II. It pipes about 1.1 million barrels per day, with about 470,000 barrels per day of capacity attributable to Plains All American’s interest.
 
Upon the completion of announced expansions, the partnership expects the existing St. James and Patoka terminal facilities in the Capline pipeline to have capacities of approximately 7 million barrels and 4 million barrels, respectively.
 
In the third quarter of 2009, Plains reported revenues of $4.86 billion, down 45% year over year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter improved 5% to $234 million from $223 million a year ago.
 
Plains All American had been very active during the quarter, delivering solid operating and financial results. During the quarter, it acquired the remaining 50% interest in the Natural Gas Storage business, raised approximately $1.2 billion in the capital markets at very attractive rates, and increased the annualized distribution by 6 cents to $3.68 per unit.
 
Headquartered in Houston, Texas, Plains All American Pipeline L.P. is a publicly traded master limited partnership engaged in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas related petroleum products. The Partnership is also engaged in the development and operation of natural gas storage facilities.
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