U.S. Development Group LLC (USDG), a Houston-based developer of unit
train logistics and terminal facilities, today announced that it has
entered into an agreement to sell five of its industry-leading crude oil
handling and distribution terminals to Plains All American Pipeline,
L.P. (NYSE: PAA), a leader in the transportation, storage, development
and marketing of crude oil and related products, for $500 million.
The transaction involves the following terminals: the St. James Crude
Terminal in St. James, La.; the Eagle Ford Crude Terminal in Gardendale,
Texas; the Van Hook Crude Terminal in Mountrail County, N.D.; the
Bakersfield Crude Terminal under development in Bakersfield, Calif. and
the Niobrara Crude Terminal in Carr, Colo. In total, the terminals have
throughput capacity of approximately 225,000 barrels of crude oil and
condensate per day.
Under the terms of the deal, USDG will continue to provide customer
service and scheduling on behalf of Plains as part of a Joint Services
Agreement.
Dan Borgen, president and CEO of U.S. Development Group, said the
transaction would continue USDG’s successful working relationship with
Plains. “We are very pleased to have entered into this agreement with
Plains and look forward to working with them to assure a smooth
transition. Our technical and service expertise in scheduling, fleet
management and railroad operations support complements Plains’ extensive
network of assets throughout the U.S. Plains has proven to be a great
terminal and pipeline partner for USDG, and we believe that this
transaction will provide for the most efficient optimization of the
assets involved.”
U.S. Development Group looks forward to expanding its network of
terminals supporting the oil and gas, petrochemical and related products
industries.
Evercore Partners served as exclusive financial advisor to U.S.
Development Group for the transaction.
About U.S. Development Group
U.S. Development Group is a leading North American multimodal logistics
company dedicated to developing unique solutions that address the
toughest industry challenges. U.S. Development Group companies are
engaged in rail logistics terminalling, as well as designing,
developing, owning and managing large-scale crude oil, petrochemical and
ethanol rail logistic centers in the United States and Canada.
www.us-dev.com
Media Contact:
Gooden Group PR
Meg Martin, 405-397-6156
media@us-dev.com