VLI Valero Lp

Valero L.P. (NYSE:VLI) today announced that it has signed a definitive purchase and sale agreement to acquire the St. James crude oil facility located in Louisiana owned by Koch Supply and Trading, L.P. for $140 million. Valero L.P. expects the acquisition to close during the next 90 days, pending regulatory approvals. The acquisition includes 17 crude oil tanks and three heated refined product tanks with a total capacity of approximately 3.3 million barrels. Additionally, the facility has a rail-loading facility and three docks with barge and ship access. The facility is located on approximately 220 acres of land on the west bank of the Mississippi River approximately 60 miles west of New Orleans and has an additional 585 acres of undeveloped land. The acquisition is expected to be immediately accretive to the partnership's distributable cash flow per unit. "The acquisition of Koch Supply and Trading, L.P.'s St. James crude oil facility aligns perfectly with our strategic plan to have large facilities in growing markets that have water-borne access," said Curt Anastasio, President and CEO of Valero L.P. "Through this acquisition, we'll have access to several major crude delivery systems including LOOP and Capline. Those delivery systems provide access to nearly 50 percent of U.S. refining capacity and transport 10 percent of all U.S. imports. This acquisition also gives us excellent growth opportunities given the proximity to several large refining complexes and the availability of 585 acres of undeveloped land, which offer the opportunity to build additional tankage." Valero L.P. is a publicly traded, limited partnership based in San Antonio, with 9,243 miles of pipeline, 88 terminal facilities and four crude oil storage facilities. One of the largest independent terminal and petroleum liquids pipeline operators in the nation, the partnership has operations in the United States, the Netherlands Antilles, Canada, Mexico, the Netherlands and the United Kingdom. The partnership's combined system has approximately 77 million barrels of storage capacity, and includes crude oil and refined product pipelines, refined product terminals, a petroleum and specialty liquids storage and terminaling business, as well as crude oil storage tank facilities. For more information, visit Valero L.P.'s website at www.valerolp.com. Cautionary Statement Regarding Forward-Looking Statements This press release includes forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995 regarding future events and the future financial performance of Valero L.P. All forward-looking statements are based on the partnership's beliefs as well as assumptions made by and information currently available to the partnership. These statements reflect the partnership's current views with respect to future events and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in Valero L.P.'s 2005 annual report on Form 10-K and subsequent filings with the Securities and Exchange Commission.