Secure Energy Services has acquired a 27% interest in a crude oil storage facility and a 51% interest in a parcel of undeveloped land in Cushing, Oklahoma for $10.4 million.
The two tuck-in acquisitions provide the company with a strategic midstream footprint in one of the largest crude oil storage and trading hubs in North America.
The crude oil storage facility comprises four aboveground 175,000-barrel tanks. The 80-acre parcel of undeveloped land is adjacent to the facility.
The storage terminal was built in 2015 and is strategically located on ten acres of land in South Cushing with long-term connection agreements in place. These provide connectivity to all major inbound and outbound pipelines in Cushing. The company says that taving access to multiple Canadian crude streams and well-connected tankage will benefit its customers getting their product to market at the optimum price.
The company says: ‘Secure’s majority investment in the parcel of undeveloped land provides the corporation with significant optionality to develop additional midstream infrastructure in one of North America’s key trading hubs.
‘The corporation’s strategic partners have a long history in construction similar scale storage infrastructure in the Cushing market and have developed key relationships with major companies in the area. Secure intends to support any further investment with long-term contracts providing the corporation with certainty over future cash flows.
‘These transactions provide a measured and strategic entry into a new market for Secure, supporting the continued growth and development of the corporation’s midstream business.’