Western Refining's Southwest Wholesale Biz Changes Hands
EL PASO, Texas — Western Refining Logistics LP (WNRL) announced Wednesday it closed its previously announced acquisition of Western Refining Inc.'s Southwest wholesale business. Western Refining received $320 million in cash and $40 million in WNRL common units.
The Southwest wholesale business consists of fuel sales of approximately 79,000 barrels per day to third-party customers, rapidly growing crude oil trucking operations in the Permian and San Juan basins, and a lubricants products distribution business.
In connection with the closing of the sale, both companies entered into a 10-year product supply agreement and a 10-year crude oil trucking transportation services agreement.
The Southwest wholesale business is expected to contribute approximately $40 million in EBITDA to WNRL's bottom line in 2015.
WNRL paid for the transaction with $51 million of cash-on-hand and $269 million in borrowings under its revolving credit facility.
El Paso-based Western Refining Inc. is an independent refining and marketing company that also operates more than 200 convenience stores and gas stations under the GIANT, Mustang, Sundial and Howdy's banners. It is the general partner and approximate 66-percent limited partnership interest owner in Western Refining Logistics LP.
Western Refining Logistics is a master limited partnership that owns, operates, develops and acquires terminals, storage tanks, pipelines and other logistical assets related to the terminaling, transportation and storage of crude oil and refined products.