Stake in Magellan's Longhorn Crude Oil Pipeline Up for Grabs

Magellan Midstream Partners is exploring a sale of a 35% stake in its Longhorn crude oil pipeline in Texas, according to sources familiar with the matter. The evaluation could be as much as $2 billion, and the source spoke on the condition to remain anonymous as the information is confidential.  

The operator is working with investment banks to sell the 35% stake in a new business unit containing the Longhorn pipeline in addition to some storage assets on the coast of the Gulf of Mexico.

Magellan would continue to own the remainder, the sources added. The final bids are expected to be lodged next month.

A spokesman for Magellan said: “We are pleased with our existing assets and our strong financial profile. While we are always open to opportunities to optimize our portfolio, we can’t speak to any particular rumors that may be in the marketplace.”

The 275,000-barrel-per-day Longhorn pipeline transports crude from the West Texas part of the Permian Basin to refining and export facilities in Houston.

Source:
P&OJ

Longhorn Midstream Partnering with Old Ironsides Energy for Future Midstream Ventures

Longhorn Midstream Holdings LLC. has announced that it has partnered with Old Ironsides Energy LLC., a private oil and gas investment firm investing in private equity and drilling joint ventures. 

Longhorn Midstream Holdings is a newly formed Dallas based midstream oil and gas company and has been successfully developing and acquiring midstream assets in many regions including the Midland Basin, Ark-La-Tex, the Mid-Continent, and most recently the Denver-Julesburg and Delaware Basins, across all commodities.

Mike Davis, the Managing Partner & President of Longhorn Midstream Holdings said, "The extended team has proven our ability to cost-effectively and reliably provide integrated midstream services to our producer clients."

"Old Ironsides has successfully partnered with members of the Longhorn team across multiple ventures since 2009. We are thrilled to form another company around this impressive group to continue pursuing their proven midstream strategy," said Sean O'Neill, a Managing Partner at Old Ironsides Energy.

Source:
prnewswire