By the OGJ Online Staff
HOUSTON, Apr. 11 -- Plains All American Pipeline LP, Houston, has agreed to buy CANPET Energy Group Inc., Calgary, for $42 million -- $26 million in cash and the rest in stock.
CANPET is a crude oil and liquefied petroleum gas marketing company. It gathers 75,000 b/d of crude and markets 26,000 b/d of NGL. Its assets include a crude handling facility, 130,000 bbl of tankage, and working capital of $8.5 million.
The deal is subject to regulatory approval and other conditions, but is expected to close in 30-45 days.
"The acquisition of CANPET will complement the pending acquisition of Murphy Oil Co. Ltd.'s Canadian crude oil pipeline, gathering, storage and terminalling assets announced last month," said Harry Pefanis, president and CEO of Plains All American. He said the two acquisitions will form a platform to build and expand the company's presence in Canada.
Plains All American estimates CANPET will contribute $7.5 million/year to earnings before interest, taxes, depreciation, and amortization.
