Tulsa, OK, Houston, TX and The
Woodlands, TX – Saddlehorn Pipeline Company, LLC (“Saddlehorn”) announced
today that the Saddlehorn Pipeline system will extend to Carr, CO. The 50-mile
pipeline extension from Platteville to Carr, which is anticipated to be
constructed with 16-inch diameter pipe, will provide a connection to existing
crude oil assets in that region. This extension has been designed to provide
shippers with flexible options and streamlined access into the Saddlehorn Pipeline
system.
Saddlehorn is a limited liability company owned by Magellan Midstream
Partners, L.P. (NYSE: MMP) (“Magellan”), Plains All American Pipeline, L.P.
(NYSE: PAA) (“Plains”) and Anadarko Petroleum Corporation (NYSE:APC). Saddlehorn
will construct, own and operate the approximately 600-mile pipeline (including
the Carr extension) that will transport various grades of crude oil from the DJ
Basin, and potentially the broader Rocky Mountain and Bakken area resource
plays, to storage facilities in Cushing, OK owned by Magellan and Plains. The
20-inch pipeline from Platteville to Cushing ultimately has the capacity to
transport up to 400,000 barrels per day (bpd), with the initial capacity
expected to be closer to 200,000 bpd.
The Carr extension project is currently estimated to cost between $80
million and $100 million. Magellan will serve as construction manager and
operator of the Saddlehorn Pipeline system. Subject to receipt of necessary
permits and regulatory approvals, the Platteville to Cushing pipeline is
expected to be operational during mid-2016 and the extension to Carr is anticipated
to be in service by the end of 2016.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded
partnership that primarily transports, stores and distributes refined petroleum
products and crude oil. Magellan owns the longest refined petroleum products
pipeline system in the country, with access to nearly 50% of the nation’s
refining capacity, and can store more than 95 million barrels of petroleum
products such as gasoline, diesel fuel and crude oil. More information is
available at www.magellanlp.com.
About Plains All American Pipeline, L.P.
Plains All American Pipeline, L.P. (NYSE: PAA) is a publicly traded
partnership that owns and operates midstream energy infrastructure and provides
logistics services for crude oil, natural gas liquids (“NGL”), natural gas and
refined products. Plains owns an extensive network of pipeline transportation,
terminalling, storage and gathering assets in key crude oil and NGL producing
basins and transportation corridors and at major market hubs in the United
States and Canada. On average, Plains handles over 4.2 million barrels per day
of crude oil and NGL on its pipelines. More information is available at www.plainsallamerican.com.
About Anadarko Petroleum Corporation
Anadarko Petroleum Corporation's mission is to deliver a competitive
and sustainable rate of return to shareholders by exploring for, acquiring and
developing oil and natural gas resources vital to the world's health and
welfare. As of year-end 2014, the company had approximately 2.86 billion
barrels-equivalent of proved reserves, making it one of the world's largest
independent exploration and production companies. For more information about
Anadarko and APC Flash Feed updates, please visit www.anadarko.com.
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Portions of this document constitute
forward-looking statements as defined by federal law. Although management of
Anadarko Petroleum Corporation, Magellan Midstream Partners, L.P. and Plains
All American Pipeline, L.P. (the “companies”) believe any such statements are
based on reasonable assumptions, there is no assurance that actual outcomes
will not be materially different. Among the key risk factors associated with
the project that may have a direct impact on Saddlehorn’s and the companies’
results of operations and financial condition are: (1) the ability to obtain
all required rights-of-way, permits and other governmental approvals on a
timely basis; (2) the ability to complete construction of the project on time
and at expected costs; (3) price fluctuations and overall demand for crude oil;
(4) changes in Saddlehorn’s tariff rates or other terms imposed by state or
federal regulatory agencies; (5) the occurrence of an operational hazard or
unforeseen interruption; (6) disruption in the debt and equity markets that
negatively impacts Saddlehorn’s or the companies’ abilities to finance capital
spending and (7) willingness to incur or failure of customers or vendors to
meet or continue contractual obligations related to the project. Additional
information about issues that could lead to material changes in performance is
contained in filings with the Securities and Exchange Commission for all
companies. The companies undertake no obligation to revise these
forward-looking statements to reflect events or circumstances occurring after
today's date.