EL PASO, Texas --Western Refining Inc. and Western Refining Logistics LP (WNRL) have announced that WNRL has entered into an agreement to acquire WNR's southwestern wholesale business for $360 million, payable to WNR in a combination of cash and WNRL common partnership units.
WNR's southwestern wholesale business includes:
- Fuel sales of approximately 79,000 barrels per day (bpd) to third-party customers and to WNR's retail and unmanned cardlock locations.
- Crude oil trucking operations in the expanding Permian and San Juan basins.
- Lubricant products distribution business.
Upon closing, WNR and WNRL plan to enter into 10-year fuel supply and crude oil trucking agreements containing certain minimum volume commitments by WNR. They expect the southwestern wholesale business to contribute EBITDA of approximately $40 million in 2015.
"We are committed to delivering consistent distribution growth to WNRL unit holders, and this first acquisition is the next step in fulfilling that commitment," WNRL and WNR president and CEO Jeff Stevens said. "Western's wholesale business has a long history of delivering profitable results and this transaction unlocks the value of that business and provides cash to WNR for future growth opportunities. This is a very positive step for the continued success of both organizations."
The companies expect the transaction to close on or about Oct. 15, 2014.
Western Refining Logistics is a fee-based master limited partnership (MLP) that Western Refining Inc. formed to own, operate, develop and acquire terminals, storage tanks, pipelines and other logistics assets related to the terminalling, transportation and storage of crude oil and refined products. Based in El Paso, Texas, Western Refining Logistics' assets include approximately 300 miles of pipelines, approximately eight million barrels of active storage capacity and other assets in the Southwest.
Western Refining Inc. is an independent refining and marketing company based in El Paso. The refining segment operates refineries in El Paso, and Gallup, N.M. The wholesale segment includes a fleet of crude oil and finished product truck transports and wholesale petroleum products operations in Arizona, California, Colorado, Georgia, Maryland, Nevada, New Mexico, Texas and Virginia. The retail segment includes gas stations and convenience stores in Arizona, Colorado, New Mexico and Texas. It also owns the general partner and approximately 65% of the limited partnership interest of WNRL and the general partner and approximately 39% of the limited partnership interest in Northern Tier Energy LP.
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