SAN ANTONIO, April 17, 2013 /PRNewswire/ -- The Tierra Companies and TexStar Midstream today announced that the companies have successfully completed the sale of Tierra Pipeline, LP to TexStar Midstream Services, LP. In addition, the companies have also entered into a non-binding Letter of Intent (LOI) to sell Tierra Transportation to Black Creek Well Services, a sister company of TexStar. Tierra and Black Creek will work together toward completion of the sale of the transportation assets on or before July 1, 2013.
The Tierra Companies CEO, Glen Gonzalez, states, "As we have always known, both the Tierra Pipeline and Tierra Transportation assets are strategically located in Central Texas. A multi-line right-of-way that extends from San Antonio to Corpus Christi and intersects the heart of the Eagle Ford Shale has proven to be a unique asset; I'm delighted that we have found the perfect buyer in TexStar Midstream Services who can push the assets to the next level. The additional time that Tierra took on due diligence and commercial development of the line has allowed us to find the best usage and highest value for the pipeline assets. The deal between The Tierra Companies and TexStar Midstream/Black Creek is the realization of our vision for the Tierra assets: Integrated Midstream Services within the Eagle Ford Shale."
Regarding the proposed sale of Tierra Transportation to Black Creek Well Companies, Gonzalez states, "Tierra has specifically chosen TexStar and Black Creek because the companies share a similar mission: To be the leading transportation and logistics company in Central Texas – management at TexStar and Black Creek understand that our customers and business partners are our most valuable business asset. And we share similar values: To deliver crude, while also delivering honesty, value and integrity every day. And, most important: To work hard, work smart, work safe."
TexStar and Black Creek are purchasing Tierra to build on the company's business platform and are committed to the growth and success of Tierra's business. There are no plans to change the Tierra business model. The trucking assets will continue to service the same customer base with the same team. TexStar and Black Creek will leverage each companies' deep resources, asset base, relationships and project slate to help the companies achieve their maximum potential and best serve their customers.
Phil Mezey, CEO of TexStar Midstream and Black Creek, states, "We have been talking to Tierra on and off for years. The time was finally right for us to move. We are extremely excited about having Tierra Pipeline and Tierra Transportation as part of our asset base and team. We are buying this because we really like the business that Tierra has built and we want to grow it."
The Tierra Pipeline assets included in the transaction between Tierra and TexStar are a multi-line right-of-way and pipeline, which intersects the heart of the Eagle Ford Shale play. The 140-mile pipeline extends from San Antonio to "refinery row" in Corpus Christi. The pipeline consists of one 4" line diameter section spanning 123 miles from San Antonio, TX to Odem, TX, and one 6" line diameter section spanning 17 miles from Odem, TX to "refinery row" in Corpus Christi, TX.
Tierra Transportation employs approximately 60 people. The assets included in the proposed transaction between Tierra and Black Creek include a fleet of specially outfitted 35 tractors and trailers.
SOURCE The Tierra Companies; Glen Gonzalez, San Antonio