Murphy USA Inc. has announced that it has recently entered into an agreement with an undisclosed investment-grade buyer for the sale of the CAM pipeline system for approximately US$85 million, less customary closing costs.
The CAM pipeline transports crude oil from the Louisiana Offshore Oil Port (LOOP) to three Gulf Coast refineries, including the Meraux refinery, formerly owned by Murphy Oil Corporation. This transaction is expected to close sometime in 1H16, subject to customary closing conditions, including regulatory approvals.
President and CEO Andrew Clyde commented, "The strategic value of the CAM system has increased significantly with the successful development of onshore oil-shale in conjunction with enhanced economics and optionality for refiners in the current price environment." Clyde went on to say, "We are excited to execute on our last meaningful non-core asset inherited from the spinoff in 2013, the proceeds of which will free up capital that can be used to help fund our independent growth plan, including our recently announced US$500 million share repurchase programme."
Edited from source by Stephanie Roker
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