According to Colonial’s website, the Alpharetta, Georgia-based company is privately held and owned by five entities. (Source: Shutterstock)
The largest refined products pipeline network in the U.S. could be up for sale soon, according to news reports on Oct. 29.
Colonial Pipeline and company advisers are considering a $10 billion sale. The company did not respond to a request for comment prior to publication.
Colonial’s 5,500-mile pipeline network carries more than 100,000 gallons of fuel to an area stretching from Houston to New Jersey. Bloomberg News, which broke the story, attributed the information to anonymous sources familiar with talks of a potential deal. Bloomberg’s sources said a sale was one of several options being considered and that a definite decision had not been made.
According to Colonial’s website, the Alpharetta, Georgia-based company is privately held and owned by five entities: CDPQ Colonial Partners LP; IFM (US) Colonial Pipeline 2 LLC; KKR-Keats Pipeline Investors LP; Koch Capital Investments Co. LLC; and Shell Midstream Operating LLC.
Several speakers at Hart Energy’s A&D Strategies and Opportunities Conference on Oct. 23 in Dallas discussed the shrinking pool of major assets on the market for the major midstream companies to buy. The number of deals has fallen off in 2024, said TD Cowen analyst David Deckelbaum.
However, the major public companies are under pressure to find acquisitions to remain relevant to the broader investment market, Deckelbaum said.
Recommended Reading
E&Ps Pivot from the Pricey Permian
2025-02-01 - SM Energy, Ovintiv and Devon Energy were rumored to be hunting for Permian M&A—but they ultimately inked deals in cheaper basins. Experts say it’s a trend to watch as producers shrug high Permian prices for runway in the Williston, Eagle Ford, the Uinta and the Montney.
Murphy Shares Drop on 4Q Miss, but ’25 Plans Show Promise
2025-01-31 - Murphy Oil’s fourth-quarter 2024 output missed analysts’ expectations, but analysts see upside with a robust Eagle Ford Shale drilling program and the international E&P’s discovery offshore Vietnam.
Crescent Energy Closes $905MM Acquisition in Central Eagle Ford
2025-01-31 - Crescent Energy’s cash-and-stock acquisition of Carnelian Energy Capital Management-backed Ridgemar Energy includes potential contingency payments of up to $170 million through 2027.
On The Market This Week (Jan. 27, 2025)
2025-01-31 - is a roundup of marketed oil and gas leaseholds in Appalachia and the Central Basin from select E&Ps.
Utica Liftoff: Infinity Natural Resources’ Shares Jump 10% in IPO
2025-01-31 - Infinity Natural Resources CEO Zack Arnold told Hart Energy the newly IPO’ed company will stick with Ohio oil, Marcellus Shale gas.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.