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Plains All American Pipeline LP (PAA) disclosed on Aug. 4 its subsidiary was the buyer of Diamondback Energy’s 43% interest in a Permian Basin pipeline.
A subsidiary of Plains Oryx Permian Basin LLC acquired Diamondback Energy's interest in the OMOG JV LLC for approximately $225 million with $145 million net to PAA's interest. The deal closed on July 28th.
The OMOG JV LLC operates about 400 miles of crude oil gathering and regional transport pipelines, as well as approximately 350,000 bbl of crude storage in Midland, Martin, Andrews and Ector counties, Texas, according to Diamondback.
"Our team remains focused on execution while continuing to identify and progress capital efficient growth opportunities; as a result, we expect to be at the high-end of our 2023 EBITDA guidance range," said Willie Chiang, chairman and CEO of Plains said in an Aug. 4 earnings release. "We announced multiple strategic actions this quarter, including a bolt-on acquisition in the Permian that will complement our existing geographic footprint. Additionally, we took steps to improve the long-term durability and quality of our cash flow stream in the NGL segment by sanctioning the debottlenecking project at our Fort Sask complex and extending the duration of our contracts across our NGL portfolio.”
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