Subsequent Events

12 Months Ended

Dec. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

Note 12. Subsequent Events

On February 12, 2017, through our indirectly wholly-owned subsidiary Trinity River DevCo LLC (Trinity), we entered into a Subscription Agreement with Plains Pipeline, L.P. (Plains), a wholly-owned subsidiary of Plains All American Pipeline L.P., pursuant to which we and Plains will enter into a 50/50 joint venture (the Advantage Joint Venture) to acquire Advantage Pipeline, L.L.C. (Advantage), which owns a 16-inch crude oil pipeline system extending approximately 70 miles from Pecos, Texas to Crane County, Texas (the Advantage Pipeline System).

Through Trinity, we will acquire a 50% interest in the Advantage Joint Venture for $66.5 million to be funded with cash and our revolving credit facility, which we amended on February 12, 2017 to permit Trinity’s investment in the Advantage Joint Venture. Once formed, the Advantage Joint Venture will acquire Advantage for approximately $133 million.

The closing of the joint venture is conditioned upon the termination or expiration of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the execution on satisfactory terms of certain ancillary agreements to provide for the construction of necessary infrastructure to connect the parties’ assets to the Advantage Pipeline System, as well as other customary closing conditions.

In connection with the closing of the joint venture, the parties will enter into an operating and administrative services agreement, a dedication agreement and a limited liability company agreement pursuant to which NMS will be the operator of the Advantage Pipeline System and we will commit certain volumes to the system.