Leveraging Pecos Terminal to Help Alleviate Permian Basin Crude Takeaway Constraints
FORT WORTH, Texas, Aug. 28, 2018 (GLOBE NEWSWIRE) — Vista Proppants and Logistics, LLC (“Vista” or the “Company”), today announced it has entered into a definitive agreement with JupiterMLP, LLC (“Jupiter”) for transloading crude oil from truck to rail at its Pecos, Texas facility. Commercial operations at Pecos, one of the newest additions to Vista’s terminal network, commenced on August 15, 2018.
Gary Humphreys, Vista Chief Executive Officer, commented, “We are excited to formalize our relationship with Jupiter and begin exporting crude out of the Permian Basin. Vista has a long history of providing innovative solutions to issues that arise for our customers in the marketplace. Today’s announcement is yet another example of the significant value provided by our unique vertically integrated logistics network. The strategic location and capabilities of our Pecos facility make it a natural fit for crude-by-rail operations, and we look forward to assisting our customers with their transport needs as takeaway infrastructure for the Permian is further built out over the next couple of years.”
Tom Ramsey, Jupiter Chief Executive Officer, further commented, “We value our relationship with the Vista team. The crude-by-rail opportunity that their facility provides helps us to accelerate our strategy of moving significant volumes of Permian Basin crude oil to the Gulf Coast while we construct our Jupiter Pipeline and VLCC loading terminal in Brownsville, Texas.”
Vista and Jupiter plan to ship crude oil on the Union Pacific Railroad through 2019 and potentially into 2020, depending on pipeline construction timelines and capacity availability. The Company currently anticipates shipping approximately 400,000 barrels per month from Pecos to St James, Louisiana. The amount of crude shipped out of Pecos could be larger than Vista’s current estimate, which is dependent on the number of available train slots each month. Union Pacific has indicated they will continually evaluate their mainline capacity and provide additional service as it becomes available.
About Vista Proppants and Logistics
Vista is a leading in-basin provider of frac sand solutions for oil and gas well completions in the most active oil and gas regions of the United States, including the Permian Basin, Eagle Ford Shale and SCOOP/STACK. The Company offers leading E&P and oilfield service companies high-quality sand that is most in demand in these basins with the cost advantages of a regional provider. Through its vertically integrated logistics network of 12 transload terminals throughout Texas and Oklahoma, and fleet of approximately 100 “last-mile” transport vehicles, Vista’s customers benefit from its unique mine-to-wellhead frac sand supply chain solutions and assured security of supply. For more information, visit the Company’s website at https://www.vprop.com/.
About JupiterMLP, LLC
JupiterMLP is a private company that provides Permian Basin producers and gas plants with crude oil and plant condensate logistics and offtake solutions. Jupiter Marketing & Trading is an active first purchaser of both high and low gravity crude and plant condensate in New Mexico and West Texas. Jupiter Transport’s crude oil and condensate hauling business and strategically located terminals connect the Permian Basin to the Gulf Coast refining markets. In addition to a 675 mile crude oil pipeline that originates in Orla, Texas with additional inject points and offtake points at Pecos, Crane and Three Rivers, the Company is also constructing a crude upgrading, processing and export terminal capable of loading VLCCs on approximately 270 acres of land located in the Port of Brownsville, Texas. The company is also an active seller of refined products in Mexico. For more information on Jupiter, visit http://www.jupitermlp.com.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/e009a071-1e1c-44a4-9a89-af574cefcf74
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