Hartree Partners’ $850 Million Acquisition of Natural Gas Storage Assets from Plains

Vinson & Elkins LLP advised Plains All American on the deal while Milbank LLP represented Hartree Partners, LP.

Plains All American (Nasdaq: PAA & PAGP) and Hartree Partners, LP announced the execution of definitive agreements whereby Plains will sell its Pine Prairie and Southern Pines natural gas storage facilities to an affiliate of Hartree for a total cash consideration of $850 million.

The assets included in the transaction consist of approximately 70 billion cubic feet of total working gas capacity across nine caverns, along with associated base gas, header pipelines and compression facilities. Subject to the receipt of regulatory approvals and customary closing conditions, the transaction is expected to close in the third quarter of 2021. As of June 30, 2021, Plains will re-classify the assets associated with the transaction to “held for sale” on its balance sheet and recognize a corresponding non-cash loss of approximately $480 million in accordance with GAAP requirements.

The following advisors served in their respective roles for the transaction: Wells Fargo Securities, LLC served as Plains’ exclusive financial advisor, Vinson & Elkins LLP acted as legal counsel to Plains, and Milbank LLP acted as legal counsel to Hartree. 

The V&E corporate team was led by partner Doug Bland (Picture) with assistance from senior associate Caroline Kuehn and associates Ryan Logan, Alyssa Allen and Abby Branigan. Also advising were partner John Lynch and senior associate Christine Mainguy; counsel Sarah Mitchell; partner John Decker and counsel Christopher Terhune; partner Tom Wilson and senior associate Alex Bluebond; partner David D’Alessandro and associates Mary Daniel Morgan and Maddison Riddick; partner Larry Nettles; partner Darren Tucker and senior associate Ryan Will; partner David Wicklund; and senior associate Jared Knight.

The Milbank team was led by Global Corporate partners John D. Franchini and Aaron Stine and Global Project, Energy and Infrastructure Finance partner Dan Bartfeld with support from Global Corporate associates Pragyan Patnaik and Alessandra Rosales and Global Project, Energy and Infrastructure Finance associates Sean O’Neill, Geoff Butterworth, Sean Rail and Filippos Papageorgiou.

Involved fees earner: Daniel Bartfeld – Milbank LLP; Geoff Butterworth – Milbank LLP; John Franchini – Milbank LLP; Sean O’Neil – Milbank LLP; Pragyan Patnaik – Milbank LLP; Aaron Stine – Milbank LLP; Alyssa Allen – Vinson & Elkins LLP; Douglas Bland – Vinson & Elkins LLP; Alex Bluebond – Vinson & Elkins LLP; Abby Branigan – Vinson & Elkins LLP; David D’Alessandro – Vinson & Elkins LLP; John Decker – Vinson & Elkins LLP; Jared Knight – Vinson & Elkins LLP; Caroline Kuehn – Vinson & Elkins LLP; Ryan Logan – Vinson & Elkins LLP; John Lynch – Vinson & Elkins LLP; Christine Mainguy – Vinson & Elkins LLP; Sarah Mitchell – Vinson & Elkins LLP; Mary Daniel Morgan – Vinson & Elkins LLP; Larry Nettles – Vinson & Elkins LLP; Maddison Riddick – Vinson & Elkins LLP; Christopher Terhune – Vinson & Elkins LLP; Darren Tucker – Vinson & Elkins LLP; David Wicklund – Vinson & Elkins LLP; Ryan Will – Vinson & Elkins LLP; Thomas Wilson – Vinson & Elkins LLP;

Law Firms: Milbank LLP; Vinson & Elkins LLP;

Clients: Hartree Partners LP; Plains All American Pipeline L.P.;

Author: Martina Bellini