Magellan Midstream Partners, a United States pipeline operator, is looking to sell a 35 percent stake in its Longhorn crude oil pipeline in Texas for up to $2 billion, according to Reuters.
The pipeline transports 275,000 barrels of crude oil per day from the West Texas part of the Permian Basin to refining and export facilities in Houston.
The pipeline is part of a newly-created business unit that has 12-month earnings before interest, tax, depreciation and amortization of between $400 million and $500 million.
Magellan is reportedly marketing the stake to long-term investors such as infrastructure funds and pension funds. With the sale, the company would continue to own the remainder of the stake.
Final bids are expected to be lodged next month.
