Energy logistics company Tesoro Logistics LP, a master limited
partnership created by refinery operator Tesoro Corp., has agreed
to buy the remaining stake of QEP Midstream Partners LP in an
exchange of common units.
In a $2.5 billion deal completed in December, Tesoro Logistics
bought pipeline and gas-processing company QEP Field Services LLC,
including its stake in QEP Midstream.
Tesoro Logistics, which now owns about 55.8% of QEP Midstream,
said the merger will provide a more simplified business
structure.
The deal for the remaining units is valued at $17.09 each. QEP
Midstream units were up 3.8% to $16.34 in after-hours trading.
QEP Midstream had 26.7 million common units, 26.7 million
subordinated units and one million general partner units
outstanding as of March 2.
QEP Midstream disclosed in a December filing that Tesoro
Logistics made a nonbinding merger proposal. The companies said the
deal announced Monday provides an 8.5% premium to the exchange
ratio of the original proposal.
Tesoro Corp. formed Tesoro Logistics in 2011. Since then, other
refiners, including Phillips 66 and Valero Energy Corp., have
followed suit and launched MLPs of their own. MLPs are popular with
investors because of their high and dependable payouts.
Write to Josh Beckerman at josh.beckerman@wsj.com
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