We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Valero's Board Okays Asset Sale by Affiliate to Partnership
Read MoreHide Full Article
Valero Energy Corporation’s (VLO - Free Report) board of directors has approved its partnership’s Valero Energy Partners LP acquisition of the Meraux and Three Rivers Terminal Services Business from one of the company’s subsidiaries. The acquisition is valued at about $325 million.
Per estimations, the business to be purchased by the partnership will contribute about $25 million of net income and about $39 million of earnings before interest, taxes, depreciation, and amortization (EBITDA) within the first year of operation.
Post acquisition, the business is expected to contribute approximately $25 million of net income and approximately $39 million of earnings before interest, taxes, depreciation, and amortization (EBITDA) within the first twelve months of operation. The deal is expected to close on Sep 1, 2016.
The proposed acquisition comprises terminals that support Valero’s Meraux and Three Rivers refineries. The Meraux assets include 24 tanks with a storage capacity of 3.9 million barrels for crude oil, intermediates, and refined petroleum products. The Three Rivers assets consist of 62 tanks with a storage capacity of 2.25 million barrels for crude oil, intermediates, and refined petroleum products.
The transaction is expected to be financed with borrowings under its revolving credit facility, cash on hand and the issuance of additional common units and general partner units to Valero subsidiaries. The newly issued units will be allotted in a proportion to enable Valero to retain its 2% general partner interest.
On closure of the transaction, the partnership intends to enter into a 10-year terminaling agreement with a subsidiary of Valero. The agreements are likely to include minimum volume commitments covering about 85% of planned throughput.
Valero carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Devon Energy Corporation (DVN - Free Report) and Enbridge Energy Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Valero's Board Okays Asset Sale by Affiliate to Partnership
Valero Energy Corporation’s (VLO - Free Report) board of directors has approved its partnership’s Valero Energy Partners LP acquisition of the Meraux and Three Rivers Terminal Services Business from one of the company’s subsidiaries. The acquisition is valued at about $325 million.
Per estimations, the business to be purchased by the partnership will contribute about $25 million of net income and about $39 million of earnings before interest, taxes, depreciation, and amortization (EBITDA) within the first year of operation.
Post acquisition, the business is expected to contribute approximately $25 million of net income and approximately $39 million of earnings before interest, taxes, depreciation, and amortization (EBITDA) within the first twelve months of operation. The deal is expected to close on Sep 1, 2016.
The proposed acquisition comprises terminals that support Valero’s Meraux and Three Rivers refineries. The Meraux assets include 24 tanks with a storage capacity of 3.9 million barrels for crude oil, intermediates, and refined petroleum products. The Three Rivers assets consist of 62 tanks with a storage capacity of 2.25 million barrels for crude oil, intermediates, and refined petroleum products.
The transaction is expected to be financed with borrowings under its revolving credit facility, cash on hand and the issuance of additional common units and general partner units to Valero subsidiaries. The newly issued units will be allotted in a proportion to enable Valero to retain its 2% general partner interest.
VALERO ENERGY Price
VALERO ENERGY Price | VALERO ENERGY Quote
On closure of the transaction, the partnership intends to enter into a 10-year terminaling agreement with a subsidiary of Valero. The agreements are likely to include minimum volume commitments covering about 85% of planned throughput.
Valero carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Devon Energy Corporation (DVN - Free Report) and Enbridge Energy Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>