CorEnergy Acquires California Pipeline Assets From Crimson Midstream

Updated 7 months 2 weeks ago

CorEnergy announced the acquisition of Crimson's regulated crude pipelines in California for a consideration of $350 million. This includes four pipeline systems spanning 1,800 miles across northern, central, and southern California. This deal was funded with a combination of $75.6 million in cash, $105 million new term loan and revolver borrowings, contribution of the Grand Isle Gathering System (GIGS), and $119.4 million in common and preferred equity. The conversion of Crimson units to CorEnergy securities requires approval from the California Public Utilities Commission (CPUC) which is expected in the third quarter of 2021. At that time, Crimson units held by John Grier will be transferred to other individuals managing Crimson. Grier will join CorEnergy as COO as well as director.

John Grier, Crimson Founder & Chairman

Our combined ability to pursue additional opportunities leveraging Crimson’s oil market relationships, together with CorEnergy’s natural gas transmission assets, establishes a diversified foundation for future acquisition consideration.