April 1, 2015 [OPIS] - Delek Logistics Partners LP said that it has acquired from its parent company, Delek US Holdings Inc., a crude oil storage tank constructed in 2014 adjacent to Delek US' Tyler, Texas, refinery and rail offloading racks constructed in 2012 adjacent to Delek US' El Dorado, Ark., refinery for a combined $61.9 million in cash.
Delek Logistics financed the purchase price for these assets through available cash and borrowings on its revolving credit facility.
“This purchase of these logistics assets from Delek US is expected to add approximately $6.7 million of EBITDA to our operations on an annual basis,” said Uzi Yemin, CEO of Delek Logistics’ general partner.
“This should provide additional growth in 2015 and move us toward our target of a $150.0 million EBITDA run rate as we exit 2015. We continue to evaluate opportunities for future growth including both organic projects and acquisitions,” he said.
Assets acquired by Delek Logistics as part of this transaction include the El Dorado Rail Offloading Facility.
These assets consist of two crude oil unloading racks that allow Delek US’ El Dorado refinery to receive up to 25,000 b/d of light crude or up to 12,000 b/d of heavy crude or some combination of the two.
The logistics arm of Delek will also get Tyler Crude Oil Storage Tank, which has approximately 350,000 bbl of shell capacity that supports Delek US’ Tyler refinery.
In connection with the closing of the transaction, Delek US, Delek Logistics and various of their subsidiaries entered into, among other long-term agreements, a throughput agreement for the rail offloading facility and a tankage agreement for the crude oil storage tank.
