Subsidiaries of Delek Logistics Partners LP (NYSE: DKL) acquired a crude oil storage tank and rail offloading racks from subsidiaries of Delek US Holdings Inc. (NYSE: DK), Delek Logistics said March 31.
The El Dorado offloading facility has two crude oil unloading racks that allow Delek US’ El Dorado, Ark., refinery to receive up to 25,000 barrels per day (Mbbl/d) of light crude, or 12 Mbbl/d,000 barrels per day of heavy crude. There could be some combination, the company added.
The Tyler crude oil storage tank handles about 350 Mbbl of shell capacity supporting Delek US’ Tyler, Texas, refinery.
A throughput agreement for the rail facility, and a tankage agreement for the storage tank, was entered into by the companies. Each was approved by the general partner’s conflicts committee.
The acquisitions were made for a combined $61.9 million in cash. Delek Logistics financed the purchase price through cash and revolving credit facility borrowings.
Uzi Yemin, chairman and CEO of Delek Logistics’ general partner, said the purchase would add about $6.7 million of EBITDA to operations annually, and help pursue the $150 million EBITA run-rate target for year-end 2015.
Delek Logistics Partners LP is based in Brentwood, Tenn.
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