Andeavor Logistics to merge with rival Western Refining Logistics in $1.5 bn deal
Full-service oil logistics company Andeavor Logistics has acquired oil storage and pipeline developer Western Refining Logistics (WNRL) for $1.5 billion.
El Paso, Texas-based WNRL assets include 705 miles of pipelines, 12.4 million barrels of active storage capacity, distribution of wholesale petroleum products, and crude oil and asphalt trucking.
The acquisition aims to further generate growth and enhance Andeavor Logistics’ credit profile while offering Western Refining Logistics investors to participate in these growth opportunities.
Andeavor Logistics plans to spend at least $500 to $600 million per year in projects in the Permian Basin and the Conan Crude Oil Pipeline System in the Delaware Basin, according to a company release.
The merger transaction is expected to close in the fourth quarter of 2017 and is subject to customary closing conditions, including regulatory and approval from holders of a majority of the WNRL units.
