CRC Acquires Crimson Midstream's California Pipeline Platform

California Resources Corp. (CRC) has agreed to acquire Crimson Midstream Holdings LLC from CorEnergy Infrastructure Trust for $63 million in cash, expanding CRC's California midstream footprint by about 2,000 miles of pipeline infrastructure with transportation capacity of up to 400,000 barrels per day.

The assets to be acquired include the SoCal Pipeline Network, IVEC Line, San Pablo Bay Pipeline, KLM Pipeline, and other assets. Francisco Leon, president and chief executive officer of CRC, said that the midstream network will help the company 'efficiently deliver California-produced crude oil barrels directly to the highest-value markets.'

Leon added that growing CRC's midstream and marketing operations is a 'logical step' in their long-term strategy, and that the Crimson assets are worth more inside CRC than as an independent midstream player. He also noted that the energy market in California is improving drastically due to a higher rig count and oil production feeding pipeline systems.

The deal builds on CRC's separate midstream expansion earlier this year, which included the acquisition of an integrated Central Valley midstream network identified as Line 100 (P66). The transaction to acquire Crimson Midstream is expected to close in this year's third quarter, subject to regulatory approvals.