Plains All American LP picked up terminal assets on May 21 located in Oklahoma’s famous Cushing oil hub.
CVR Energy Inc. said it sold the 1.5 million-barrel crude oil terminal located in Cushing to an affiliate of Houston-based Plains for roughly $36 million.
In addition to the sale, CVR also announced it has begun to explore strategic alternatives that would maximize its value for shareholders. The company engaged BofA Merrill Lynch as its financial adviser to assist in this initiative, which could include a potential sale.
“CVR Energy is committed to maximizing value for its stockholders,” Dave Lamp, CVR Energy’s CEO, said in a statement on May 21. “Both the sale of the Cushing terminal, which allowed us to derive value from an underutilized asset, and the exploration of potential strategic alternatives support this commitment.”
CVR is a Sugar Land, Texas-based diversified holding company primarily engaged in the petroleum refining and marketing business. The company does not have a defined timeline for the exploration of strategic alternatives and makes no assurances that its evaluation will result in any transaction being announced or consummated.
The Cushing transaction closed concurrently with the signing of the purchase and sale agreement, according to the CVR release.
Recommended Reading
Valeura Purchases FSO Offshore Thailand
2024-06-14 - After initially leasing the Aurora FSO, Valeura Energy decided to purchase the vessel for $19 million.
E&P Highlights: June 4, 2024
2024-06-03 - Here’s a roundup of the latest E&P headlines, with new contracts awarded and larger commitments made for oil and gas exploration in South Korea and Australia.
Exxon Buys Viridien Vessel Monitoring System
2024-06-13 - Formerly known as CGG, Viridien’s Marlin vessel monitoring system will be used to support Exxon’s operations offshore Guyana.
Oceaneering Awarded Multiple GoM Vessel Services Contracts
2024-07-02 - Oceaneering also secured two separate pricing agreements that include the use of new technologies from its integrated, customizable IMR service.
Comet Ridge Awarded Mahalo Far East Extension for 6-year Term
2024-07-22 - Comet Ridge was awarded 100% ownership and operator of Australia’s Mahalo Far East Extension for an initial term of 6 years.