8-03-2016

Plains All American Pipeline and Phillips 66 Partners Announce STACK Pipeline Joint Venture and Expansion Plans

HOUSTON--()--Plains All American Pipeline, L.P. (NYSE: PAA) and Phillips 66 Partners LP (NYSE: PSXP) today announced the formation of STACK Pipeline LLC (JV), a 50/50 limited liability company to own and operate a common carrier pipeline that transports crude oil from the Sooner Trend, Anadarko Basin, Canadian and Kingfisher Counties (STACK) play in northwestern Oklahoma to Cushing, Okla. Under the JV agreement, Plains contributed an existing terminal located at Cashion, Okla. with approximately 200,000 barrels of crude oil storage (Cashion Terminal) and an approximately 55-mile crude oil pipeline with a current capacity of approximately 100,000 barrels per day (STACK Pipeline), while Phillips 66 Partners contributed $50 million cash, which will be distributed to Plains, in exchange for a 50 percent interest in the JV.

The JV plans to invest an estimated $15 million to expand the STACK Pipeline by constructing a truck station at Highway 33, approximately 12 miles northwest of the Cashion Terminal, a lateral pipeline to connect the Highway 33 station to the Cashion Terminal and 100,000 barrels of storage at the Cashion Terminal. Additional expansion opportunities, including expanding the capacity of the STACK Pipeline through looping the pipeline from the Cashion Terminal to Cushing, as well as other gathering opportunities, are also being pursued. The STACK Pipeline and the initial expansion are supported by multiple long-term contracts as well as legacy production gathered by existing Plains crude oil pipelines that originate in western Oklahoma.

“Plains is pleased to be entering into this strategic partnership with Phillips 66 Partners in one of the most exciting emerging resource plays in North America,” said Greg L. Armstrong, Chairman and CEO of Plains All American.

“We are pleased to announce this joint venture with Plains to develop a strategic transportation asset in the emerging STACK play,” said Greg Garland, Phillips 66 Partners chairman and CEO. “This asset is a reliable and cost-effective transportation option for producers in the STACK basin. The formation of the STACK joint venture is consistent with our growth strategy and will provide Phillips 66 Partners with a fee-based asset backed by third-party committed shipper volumes. The system’s connectivity to Cushing also will provide another source of advantaged crude to Phillips 66’s Ponca City Refinery.”

About Plains All American Pipeline

Plains All American Pipeline, L.P. is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids ("NGL"), natural gas and refined products. PAA 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, PAA handles over 4.6 million barrels per day of crude oil and NGL in its Transportation segment. PAA is headquartered in Houston, Texas.

About Phillips 66 Partners

Headquartered in Houston, Phillips 66 Partners is a growth-oriented master limited partnership formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and natural gas liquids pipelines and terminals and other transportation and midstream assets. For more information, visit www.phillips66partners.com.

Forward Looking Statements

This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. An extensive list of factors that can affect future results are discussed in each registrant’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The registrants undertake no obligation to update or revise any forward-looking statement to reflect new information or events.

Contacts

Plains All American
Investors:
Ryan Smith, (866) 809-1291
Director, Investor Relations
or
Media:
Brad Leone, (866) 809-1290
Director, Communications
or
Phillips 66 Partners
Investors:
Rosy Zuklic, 832-765-2297
rosy.zuklic@p66.com
or
C.W. Mallon, 832-765-2297
c.w.mallon@p66.com
or
Media:
Dennis Nuss, 832-765-1850
dennis.h.nuss@p66.com