Plains All American Announces Expansion and Joint Venture of Red River Pipeline with Delek Logistics

HOUSTON–(BUSINESS WIRE)–Plains All American Pipeline (NYSE: PAA)
today announced a capital-efficient expansion and new joint venture of
its existing Red River Pipeline system. Delek Logistics Partners, LP
(NYSE: DKL) has purchased from a Plains’ subsidiary a 33% ownership
interest in a new Red River Pipeline Company LLC joint venture for $128
million. Plains retained a 67% interest in the joint venture and will
continue to operate the Red River system. In support of this expansion,
Delek US (NYSE: DK) increased its long-term throughput and deficiency
(“T&D”) agreement on the Red River system from an existing 35,000
barrels per day to 100,000 barrels per day. The expansion enables
additional volume pull-through from Cushing and the Permian to the U.S.
Gulf Coast markets, providing additional supply optionality for shippers.

“This is a win-win deal that fits our strategy of optimizing and
expanding existing systems while exercising capital discipline,” stated
Jeremy Goebel, Executive Vice President – Commercial, Plains All
American. “This transaction expands long-term alignment with a natural
shipper, supports and funds the expansion of the system, increases
Plains’ net committed annual cash flow, and provides proceeds to fund
our capital program or lower debt.”

The Red River pipeline system extends from Cushing, Oklahoma to
Longview, Texas. The expansion will increase the total system capacity
from approximately 150,000 barrels per day to approximately 235,000
barrels per day through the addition of pumping capacity and is expected
to be completed during the first half of 2020. Approximately 30% of the
expanded Red River system capacity from Cushing to Hewitt, Oklahoma is
owned by a third party in an undivided joint interest structure.

About Plains All American Pipeline

Plains All American Pipeline, L.P. is a publicly traded master limited
partnership that owns and operates midstream energy infrastructure and
provides logistics services for crude oil, NGLs and natural gas. PAA
owns an extensive network of pipeline transportation, terminalling,
storage, and gathering assets in key crude oil and NGL producing basins
and transportation corridors and at major market hubs in the United
States and Canada. On average, PAA handles more than 6 million barrels
per day of crude oil and NGL in its Transportation segment. PAA is
headquartered in Houston, Texas. More information is available at www.plainsallamerican.com.

Forward-Looking Statements

Certain matters discussed in this release are forward-looking statements
that involve risks and uncertainties that could cause actual results or
outcomes to differ materially from results or outcomes anticipated in
the forward-looking statements. These risks and uncertainties include,
among other things, shortages, cost increases or delay in receipt of
supplies, materials or labor; failure to implement or capitalize, or
delays in implementing or capitalizing, on expansion projects, whether
due to permitting delays, permitting withdrawals or other factors; the
impact of current and future laws, rulings, orders, governmental
regulations, accounting standards and statements and related
interpretations; weather interference with business operations or
project construction, including the impact of extreme weather events or
conditions; environmental liabilities, issues or events that result in
construction delays or otherwise impact targeted in-service dates;
interruptions in service on third-party pipelines or facilities; general
economic, market or business conditions and the amplification of other
risks caused by volatile financial markets, capital constraints and
pervasive liquidity concerns; and other factors and uncertainties
inherent in the transportation, storage, terminalling and marketing of
crude oil as discussed in PAA’s filings with the Securities and Exchange
Commission.

Contacts

Investors:
Brett Magill
Director, Investor Relations
(866)
809-1291

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