Plains Snaps Up Energy Spectrum’s Interests In Velocity South Texas Gathering

Acquired interests in assets which include approximately 120 miles of crude oil and condensate gathering and transportation pipelines in Eagle Ford shale area in Dimmit, Webb & La Salle counties, S TX, with projected throughput capacity of approximately 150,000 BO/d & aggregate 185,000 Bbls condensate/d of condensate storage capacity at Catarina & Gardendale Hub.

Plains All American Pipeline LP, Houston, (NYSE: PAA) has acquired interests in Velocity South Texas Gathering LLC, a subsidiary of Velocity Midstream Partners LLC held by Dallas-based Energy Spectrum Partners V LP for an undisclosed price.

Plains will acquire Energy Spectrum’s and its management’s membership interests.

Velocity’s assets include approximately 120 miles of crude oil and condensate gathering and transportation pipelines in the Eagle Ford Shale area of South Texas with a projected throughput capacity of approximately 150,000 barrels per day and an aggregate of 185,000 barrels of condensate storage capacity located at Catarina and the Gardendale Hub, which Velocity conceived. The system, which extends through portions of Dimmit, Webb and La Salle counties, Texas, is underpinned by long-term acreage dedications or volume commitments from several large Eagle Ford producers.

Energy Spectrum Capital managing partner Jim Benson says, “Velocity’s management team envisioned this system well before an opportunity arose and worked diligently to execute on its plan. We are confident that Plains All American is a high-quality, strategic acquirer for this asset and will take it to the next level.”

Evercore Partners is financial advisor to Velocity Midstream Partners.