MLP Formed By Valero to Buy Terminal Assets for $465 Million

   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 [e-mail]

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September 23, 2015 17:51 ET (21:51 GMT)

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