7.6.1.2Vertical

Crude Oil Pipeline Operators

Long-haul pipeline operators transporting crude to refineries.

Market snapshot

These figures describe Crude Oil Pipelines & Transportation (7.6.1), the segment that Crude Oil Pipeline Operators sits within. They are not figures for Crude Oil Pipeline Operators on its own.

Market size
~$15B
Growth
~7.4%CAGR (2017–22, nominal)
Companies
~79 firms
FragmentationConsolidatedEstimate

Toll-road economics: pipelines earn a tariff per barrel under long-term shipper commitments, which is why growth is modest and cash flow is not. The asset is the right of way, and it cannot be replicated.

NAICS 486110. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Business model & economics

Revenue model

Pipeline transportation and capacity fees (toll-like)

Key economics

Revenue per firm
$190,393,127
Revenue per employee
$1,098,128
Employees per firm
122.8
Recurring revenue
High

contracted, toll-like transportation fees

EBITDA margin
Strong

stable, fee-based infrastructure

Capex intensity
High

Characteristics

  • Scale-driven: payroll is only 12% of revenue, so the cost base is assets, not headcount
  • Moderate strategic-buyer pool: 34 firms exceed 500 employees, so a scaled asset has buyers, but not many
  • Fee-based, toll-like liquids infrastructure.
  • Permian takeaway and export connectivity key.
  • Recurring, often contracted revenue.

NAICS 486110. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

M&A deal context

Deal activityHigh

Who’s acquiring

  • Liquids-midstream/MLP majors
  • Infrastructure funds & investors
  • Pipeline consolidators

What’s driving deals

  • Permian-takeaway and export-capacity demand.
  • Midstream consolidation.
  • Recurring-fee infrastructure appeal.

Find Crude Oil Pipeline Operators acquisition targets

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