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.