Rose Rock Midstream LP (NYSE:RRMS) has executed a definitive agreement to acquire the assets of Barcas Field Services LLC, which owns and operates a crude oil trucking fleet, for $47 million.
The transaction, called "incrementally positive" by analysts at Baird Equity Research, includes the acquisition of 114 trucks and 120 trailers in the growing Rockies and Midcon region, as well as long-term take-or-pay transportation agreements.
"We maintain our positive stance on RRMS units, driven by substantial drop-down opportunities from SemGroup (SEMG), attractive positioning in the Rockies area, and attractive valuation vs. crude logistics peers," noted the analysts Friday morning.
"Trucking is a key component of crude oil transportation, serving as a mobile extension of fixed pipeline gathering systems," said Norm Szydlowski, CEO of Rose Rock Midstream's general partner in a statement.
Approximately 140 employees of Barcas Field Services will join Rose Rock at the close of the transaction. Closing is expected during the third quarter of 2013 and is subject to customary closing conditions.
Rose Rock Midstream LP is a growth-oriented Delaware limited partnership formed by SemGroup Corp. (NYSE:SEMG) to own, operate, develop and acquire a diversified portfolio of midstream energy assets. Rose Rock Midstream provides crude oil gathering, transportation, storage and marketing services. Headquartered in Tulsa, OK, Rose Rock Midstream has operations in six states with the majority of its assets located in or connected to the Cushing, Oklahoma crude oil marketing hub.