Shell Midstream Partners, L.P. announced today that it has agreed to acquire a 2.62% equity interest in Explorer Pipeline Company
OREANDA-NEWS. Shell Midstream Partners, L.P. (NYSE: SHLX) announced today that it has agreed to acquire a 2.62% equity interest in Explorer Pipeline Company (Explorer). The acquisition will be made in connection with Shell Pipeline Company LP’s right, as a current shareholder of Explorer, to acquire a portion of an equity interest divested by another shareholder of Explorer. Shell Pipeline Company LP separately owns and will retain a 35.97% equity interest in Explorer. This acquisition introduces a new refined products line to Shell Midstream Partners’ portfolio.
“Shell Midstream Partners is pleased to bring the Explorer Pipeline into our portfolio. This was an opportunistic acquisition for the partnership that aligns with our strategic intent to diversify our cash flows and bring forward accretive deals that complement our footprint,” said John Hollowell, chief executive officer of Shell Midstream Partners.
Explorer is recognized as one of the nation’s leading petroleum products transporters serving more than 70 major cities in 16 states. Its 1,830-mile pipeline transports gasoline, diesel, fuel oil and jet fuel with an average flow that exceeds 600,000 barrels per day. Explorer continues to diversify its portfolio of services for its shippers. Recently, Explorer invested in approximately 18 miles of new pipe to transport diluent in Illinois.
The acquisition is expected to be immediately accretive to unitholders and funded with available cash. The terms of the acquisition were approved by the board of directors of the general partner of Shell Midstream Partners and is expected to close in August 2016 subject to regulatory approvals.
About Shell Midstream Partners, L.P.
Shell Midstream Partners, headquartered in Houston, Texas, is a fee-based, growth-oriented midstream master limited partnership formed by Royal Dutch Shell to own, operate, develop and acquire pipelines and other midstream assets. Shell Midstream Partners’ assets consist of pipelines, crude tank storage and terminal systems that serve as key infrastructure to transport and store onshore and offshore crude oil production to Gulf Coast and Midwest refining markets and to deliver refined products from Gulf Coast markets to major demand centers.