MLP Formed By Valero to Buy Terminal Assets for $465 Million
September 23 2015 - 6:06PM
Dow Jones News
By Josh Beckerman
A master limited partnership formed by Valero Energy Corp. (VLO)
will buy the refiner's Corpus Christi Terminal Services Business
for $465 million.
Valero Energy Partners LP (VLP) said Wednesday that the deal is
expected to close Oct. 1. The MLP is buying assets including two
terminals that support Valero's Corpus Christi East and West
refineries.
The acquired operations are expected to add about $50 million in
earnings before interest, taxes and amortization in the first full
year.
Valero Energy Partners, which held an initial public offering in
December 2013, was formed to own, operate, develop and buy crude
oil and refined petroleum products pipelines, terminals and other
assets.
The deal will enable Valero Energy Corp. to surpass its
previously stated target of $1 billion of drop-down transactions to
the MLP, sales that are intended to increase the MLP's growth and
"unlock value."
Earlier Wednesday, Valero Energy Corp. reported flaring and a
loss of feed gas to a unit at one of the Corpus Christi
refineries.
Write to Josh Beckerman at josh.beckerman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 23, 2015 17:51 ET (21:51 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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