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  1. Tesoro, Western Refining to merge

    Tesoro Corp. , San Antonio, has entered a definitive agreement valued at more than $6 billion to acquire fellow US independent refiner and marketer Western Refining Inc. , which owns and operates three refineries in Texas, New Mexico, and Minnesota. As part of the agreement, Tesoro will purchase Western at an implied current price of $37.30/share in a stock transaction that, based on Tesoro’s Nov. 16 closing stock price of $85.74/share, represents an equity value of $4.1 billion and an enterprise value of $6.4 billion, including Tesoro’s assumption of Western’s $1.7 billion net debt and the $605-million market value of its noncontrolling interest in Western Refining Logistics LP (WNRL), Tesoro and Western said in a joint news release. Under the terms of the agreement, Western shareholders can choose either to receive 0.4350 of a share of Tesoro in exchange for each Western share (not subject to proration) or a cash sum of $37.30/share for each Western share (subject to proration in excess of about 10.8 million shares, or $404 million in the aggregate). The transaction, which has been unanimously approved by both companies’ boards, is scheduled to close during first-half 2017, pending approval by shareholders as well as other customary closing conditions and regulatory approvals, Tesoro and Western said. The proposed transaction follows recent consolidation moves by both independent refiners, including Tesoro’s acquisition of Dakota Prairie Refining LLC (DPR), the former MDU Resources-Calumet Specialty Products Partners LP joint venture that operated a 20,000-b/d diesel refinery near Dickinson, ND ( OGJ Online, June 28, 2016 ), and Western’s takeover of Northern Tier Energy LP’s high-conversion refinery at St. Paul Park, Minn. ( OGJ Online, June 24, 2016 ). Merger details In addition to the interest in WNRL, Tesoro will acquire the following Western assets as part of the transaction: • A total of 254,000 b/sd (241,300 b/d) in refining combined refining capacity from Western’s three refineries, which include the 131,000-b/sd (124,450-b/cd) El Paso, Tex., refinery; the 25,000 b/sd (23,750 b/cd) refinery near Gallup, NM; and the 98,000-b/sd (93,100-b/cd) St. Paul Park refinery. • Access to price-advantaged crude feedstock in Permian, San Juan, Bakken , and Western Canadian basins. • Access to a fully integrated crude pipeline system that serves Western refineries and third parties, including a 17% interest in the 465,000-b/d Minnesota pipeline, the primary supply route for Western Canadian and North Dakota crude to the St. Paul Park refinery. • Refined product storage and distribution pipelines to retail and wholesale customers. • About 545 retail outlets in Arizona, Colorado, New Mexico, Texas, Minnesota, and Wisconsin. Upon the completed merger, Tesoro will own ten refineries with a combined refining capacity of more than 1.1 million b/sd (1.05 million b/cd), as well as combined retail operations of more than 3,000 branded retail outlets operating under a variety of brands that, in addition to Tesoro-branded stations, will include ARCO, Shell, Exxon, Mobil, SuperAmerica, and Giant. With regard to the combined logistics business, Tesoro said it already is eyeing opportunities to enhance the portfolio in high-growth Permian and other attractive crude basins, including investments in crude gathering and storage, as well as in natural gas gathering and processing. Following conclusion of the transaction, Tesoro’s board likely will be expanded to admit Paul Foster and Jeff Stevens—Western’s current executive chairman and chief executive officer, respectively—as directors, Tesoro said. Tesoro’s Gregory J. Goff will remain chairman, president, and chief executive officer of the combined company. Contact Robert Brelsford at rbrelsford@ogjonline.com .

    Online Articles

    Online Articles

    Thu, 17 Nov 2016

  2. PHMSA finalizes excess flow valve rule for gas distribution pipelines

    The US Pipeline & Hazardous Materials Safety Administration issued a final rule on Oct. 7 for excess flow valves on new and replaced distribution pipelines . The final rule requires installation of EFVs in new or replaced service lines for multifamily residences—including apartment buildings and ...

    Online Articles

    Online Articles

    Wed, 12 Oct 2016

  3. Dominion Midstream to buy Questar Pipeline

    Dominion Midstream Partners LP has agreed to acquire Questar Pipeline LLC from Dominion Resources Inc. for $1.725 billion including debt. The deal has an anticipated effective date of Dec. 1.

    Online Articles

    Online Articles

    Wed, 2 Nov 2016

  4. Halifax Water generates power from a 32-kW in-pipe small hydroelectric system

    Halifax Regional Municipality of Nova Scotia, Canada, is the first Canadian city to use an in-pipe hydroelectric generation system within a pressurized water distribution pipeline , according to Halifax Water. On Nov. 13, a 32-kW generating system within a drinking water distribution control chamber ...

    Online Articles

    Online Articles

    Mon, 17 Nov 2014

  1. 1Derrick US M&A weekly update

    Online Articles

    Online Articles

    Wed, 3 Aug 2016

  2. IG’s office recommends EPA begin regulating LDC methane emissions

    The US Environmental Protection Agency, which does not regulate methane emissions from natural gas local distribution companies (LDC), should start working with the US Pipeline & Hazardous Materials Safety Administration to address the problem, EPA’s inspector general’s office said in a July 25 ...

    Online Articles

    Online Articles

    Mon, 28 Jul 2014

  3. ONEOK to build new NGL pipeline and fractionator to serve Gulf Coast market

    Tulsa-based ONEOK Partners LP said May 2 that it will invest between $910 million and $1.2 billion between now and late 2013 in order to construct a new 570-mile, 16-inch diameter NGL pipeline from the Mid-Continent region to the Texas Gulf Coast and build a new 75,000-bpd NGL fractionator at Mont ...

    Online Articles

    Online Articles

    Mon, 2 May 2011

  4. ONEOK Partners to invest up to $240 million in Cana-Woodford Shale and Granite Wash

    natural gas liquids distribution pipelines between Conway and ..... petroleum products distribution pipelines that connect its Mid ..... existing Sterling I NGL distribution pipeline , increasing its capacity

    Online Articles

    Online Articles

    Wed, 15 Dec 2010

  5. Rentricity starts work on micro-hydro projects in Colorado, Utah

    Rentricity Inc. reports it has begun work on installation of its first micro-hydro in-pipe projects, in Colorado and Utah.

    Online Articles

    Online Articles

    Tue, 2 Feb 2016

  6. Warren Equity Partners and Multifuels establish new midstream company

    Warren Equity Partners, a middle market private equity firm, has partnered with Multifuels LP to build a midstream pipeline platform. As part of the transaction, Multifuels is contributing an existing natural gas pipeline that supplies a utility service area in Texas, and Warren Equity is ...

    Online Articles

    Online Articles

    Wed, 27 Jan 2016

  7. Dominion, Questar Clear Key Hurdle in Merger Deal

    Dominion Resources (NYSE: D) and Questar Corp. (NYSE: STR) said their proposed merger cleared a key condition needed to complete the deal.

    Online Articles

    Online Articles

    Tue, 23 Feb 2016

  8. Corrib drilling program nears completion

    The Shell-operated Corrib field offshore northwest Ireland continues to produce strongly, according to partner Vermillion Energy.

    Online Articles

    Online Articles

    Tue, 10 May 2016

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