Adams Resources & Energy acquires Victoria Express Pipeline in Texas

Adams Resources & Energy, a US crude oil marketing and transportation company, has acquired Victoria Express Pipeline (VEX Pipeline) and certain associated pipeline terminal facility assets from EnLink Midstream Operating.

The financial details of the transaction were not disclosed.

The transaction was carried out through Adams Resources & Energy’s crude oil marketing subsidiary – GulfMark Energy and its fully-owned subsidiary GulfMark Terminals.

Kevin Roycraft – Adams Resources & Energy CEO and President said: “This acquisition is expected to provide growth opportunities to the current GulfMark business, as we will participate in a greater portion of the midstream value chain for crude oil and condensate production moving from the wellhead to the end market.

“By effectively managing these assets, we plan to further enhance the quality and value of the services our customers have come to expect from GulfMark, as well as begin to provide midstream services to both new and former customers of the VEX Pipeline System.

“Finally, we believe this transaction will generate long-term cash flow and represents another key milestone in our strategic efforts to prudently grow the business.”

Details of the Victoria Express Pipeline (VEX Pipeline)

The Victoria Express Pipeline is a crude oil and condensate pipeline system that connects the core of the Eagle Ford Basin to the Gulf Coast waterborne market with truck and storage terminals located at Cuero and the Port of Victoria in Texas.

The pipeline system has 56 miles of 12-inch pipeline, which runs from DeWitt county to Victoria county with 350,000 barrels of above-ground storage, a couple of 8-bay truck offload stations, and access to two docks at the Port of Victoria.

Currently, with a capacity of 90,000 barrels per day, the Victoria Express Pipeline sources crude oil by pipeline and truck. It also has downstream pipeline connections to a couple of terminals, with scope for the possible addition of downstream connections in the future.

Greg Mills – President of GulfMark, commenting on the acquisition of the Victoria Express Pipeline, said: “Over the last several years, the VEX Pipeline System has been integral to GulfMark’s crude oil supply and marketing business in the Eagle Ford and Gulf Coast region.

“As one of the system’s largest shippers, we look forward to fully integrating the VEX Pipeline System into our Gulf Coast marketing business, which will further strengthen our ability to provide excellent service to the producers in the region, as well as more effectively service our end-user markets along the Gulf Coast.

“As important, the VEX Pipeline System complements our existing storage terminal and dock at the Port of Victoria, where GulfMark will now control 450,000 barrels of storage with three docks.”

Adams Resources & Energy is focused mainly in crude oil marketing, transportation and storage, tank truck transportation of liquid chemicals and dry bulk, via its two subsidiaries – GulfMark Energy and Service Transport Company, respectively.