ADAMS RESOURCES & ENERGY, INC. ANNOUNCES VICTORIA EXPRESS PIPELINE CONNECTION
Adams Resources & Energy, Inc. (NYSE AMERICAN: AE) announced that its subsidiary, Victoria Express Pipeline, will construct a new pipeline connection to Max Midstream's Upper Gulf Coast Pipeline System. This initiative aims to enhance crude oil supply and delivery points for VEX customers, providing access to key markets. Construction is set to begin in September 2022, with completion expected by year-end and new volumes anticipated in early 2023. The connection is seen as a strategic move to improve operational efficiency and market reach.
- New pipeline connection enhances crude oil supply.
- Access to additional markets via Max Midstream.
- Strategic construction set to begin September 2022.
- None.
HOUSTON, Aug. 24, 2022 /PRNewswire/ -- Adams Resources & Energy, Inc. (NYSE AMERICAN: AE) ("Adams" or the "Company") today announces that its subsidiary, Victoria Express Pipeline, L.L.C. ("VEX"), will construct a new pipeline connection to Max Midstream Texas, LLC's ("Max Midstream") recently acquired Upper Gulf Coast Pipeline System.
Currently, the VEX Pipeline System connects the central Eagle Ford Shale near Cuero, TX to the GulfMark Terminals, LLC ("GMT") Cuero terminal facility and to the GMT POV terminal facility at the Port of Victoria, Texas. Max Midstream's Upper Gulf Coast Pipeline System spans points both upstream and downstream of the VEX Pipeline System, providing incremental crude oil supply potential, as well as new market delivery points to VEX customers to the dock at Point Comfort via the Max Midstream system. Potential future connection points via the Max Midstream system include the Kinder Morgan Crude & Condensate pipeline, P66 Gray Oak Pipeline and the Taft Hub near the Port of Corpus Christi.
Greg Mills, President of GulfMark Energy, Inc. commented, "The connection to the Max Midstream system will allow VEX to provide shippers with more diversity of supply, and through the Max Midstream system, access to important additional crude oil markets, which will complement the existing Port of Victoria market which the VEX Pipeline serves today."
"I am pleased to see the GulfMark team continue to execute on the strategic plans surrounding the VEX Pipeline System. This connection with Max Midstream is the next step toward maximizing this asset's potential," said Kevin Roycraft, Adams' Chief Executive Officer and President.
Construction of the new pipeline connection will begin in September 2022, and we anticipate the connection being complete by the end of the year, with new volume anticipated on the pipeline as early as the first quarter to the first half of 2023.
Adams Resources & Energy, Inc. is engaged in crude oil marketing, transportation, terminalling and storage, tank truck transportation of liquid chemicals and dry bulk and recycling and repurposing of off-spec fuels, lubricants, crude oil and other chemicals through its subsidiaries, GulfMark Energy, Inc., Service Transport Company, Victoria Express Pipeline, L.L.C., GulfMark Terminals, LLC, Phoenix Oil, Inc., and Firebird Bulk Carriers, Inc. For more information, visit www.adamsresources.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains forward-looking statements. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. In many cases you can identify forward-looking statements by terminology such as "anticipate," "intend," "plan," "project," "estimate," "continue," "potential," "should," "could," "may," "will," "objective," "guidance," "outlook," "effort," "expect," "believe," "predict," "budget," "projection," "goal," "forecast," "target" or similar words. Statements may be forward looking even in the absence of these particular words. Where, in any forward-looking statement, the Company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, and any other risk factors included in Adams' reports filed with the Securities and Exchange Commission. However, there can be no assurance that such expectation or belief will result or be achieved. Unless legally required, Adams undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Company Contact
Tracy E. Ohmart
EVP, Chief Financial Officer
(713) 881-3609
Investor Relations Contact
Gary Guyton or Steven Hooser
Three Part Advisors
(214) 442-0016
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SOURCE Adams Resources & Energy, Inc.
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