The total consideration is estimated at $210m, including approximately $170m for the business and physical assets and approximately $40m for approximately 400,000 barrels of inventory and other working capital adjustments.
The assets are primarily located in Northwestern North Dakota and Northeastern Montana, which consist of a lease gathering business, the FERC regulated Robinson Lake pipeline and eight truck terminals and various other contractual rights.
Plains All American president and COO Harry Pefanis said that this acquisition is consistent with the company’s strategy to expand and strengthen its presence in growing producing regions that is complementary to its existing Bakken area assets and activities, including its recently proposed Bakken North Pipeline Project.
Subject to regulatory approval, the transaction is slated to close by year-end 2010.
