Plains All American to buy 50 percent stake in pipeline company from Occidental Petroleum

MarketsAssociated Press

Plains All American Pipeline LP said Thursday that it plans to buy Occidental Petroleum Corp.'s 50 percent stake in a pipeline company for $1.075 billion.

The company, BridgeTex Pipeline Co., is jointly owned by Houston-based Occidental and Magellan Midstream Partners LP and operates a pipeline that stretches from west Texas to the Houston Gulf Coast area. It transports 300,000 barrels per day of crude oil.

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As part of the deal, Magellan will also buy a 40-mile stretch of the pipeline for $75 million from Occidental.

Shares of Plains All American fell $1.51, or 2.8 percent, to $52.82 in afternoon trading Thursday. Occidental shares fell 92 cents, or 1.1 percent, to $85.55. Magellan shares slipped 36 cents to $83.66.