Adams’ crude oil subsidiary acquires VEX Pipeline and assets

Adams Resources & Energy crude oil marketing subsidiary GulfMark Energy and its wholly owned subsidiary GulfMark Terminals has acquired the equity interests of Victoria Express Pipeline (VEX) and associated assets.

The company purchased the assets from EnLink Midstream Operating.

The VEX Pipeline System is a crude oil and condensate pipeline system that connects the centre of the Eagle Ford Basin to the Gulf Coast waterborne market.

It comprises truck and storage terminals at both Cuero and the Port of Victoria, Texas.

GulfMark president Greg Mills 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.”

The VEX Pipeline System includes a 12 pipeline that spans across DeWitt county to Victoria county, Texas.

It includes 350,000 barrels of above ground storage, two eight bay truck offload stations, as well as access to two docks at the Port of Victoria.

VEX can receive crude oil by pipeline and truck. It has downstream pipeline connections to two terminals, with a total capacity of 90,000bpd.

Adams’ CEO and president Kevin Roycraft 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.

“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.”