Deal Details
Delek Logistics Acquires Big Spring Gathering System
Summary
Delek Logistics Partners, LP (“Delek Logistics” or the “Partnership”) (NYSE: DKL) announced an agreement to acquire the Big Spring Gathering System from Delek US Holdings, Inc. (“Delek”) (NYSE: DK) for total consideration of $100 million in cash and 5.0 million common units representing limited partnership interest in the Partnership.
Baird served as exclusive financial advisor to the Conflicts Committee of the Board of Directors of the General Partner of Delek Logistics Partners, LP.
About
Delek Logistics is a growth-oriented, publicly-traded master limited partnership formed by Delek in 2012 to own, operate, acquire and construct crude oil and refined products logistics and marketing assets.The Big Spring Gathering System is an approximately 200-mile crude oil gathering system with approximately 350,000 barrels per day throughput capacity located in Howard, Borden and Martin Counties in Texas and connecting to the Delek US terminal located near Big Spring, Texas and to a third-party pipeline system. As part of the transaction, DK will provide a minimum volume commitment of 120,000 barrels per day for the Big Spring Gathering System in addition to 50,000 barrels per day connection to a third-party system.
Delek is a diversified downstream energy company with assets in petroleum refining, logistics, asphalt, renewable fuels and convenience store retailing. The refining assets consist of refineries operated in Tyler and Big Spring, Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a combined nameplate crude throughput capacity of 302,000 barrels per day.
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- Date
- March 2020
- Company
- Delek Logistics Partners, LP
- Transaction
- M&A
- Sectors
- Energy
- Verticals
-
Energy
- Target Geography
- North America
- Acquiror Geography
- North America
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