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Delek (DK) Issues Updates on Wink-to-Webster, Red River JVs

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Delek US Holdings, Inc. (DK - Free Report) recently provided an update on the status of its two projects wherein it expects its Wink-to-Webster crude oil pipeline joint venture (JV) to come online next year while the expansion of its Red River crude line joint venture is scheduled to take place in the second half of this year.

Details on Wink-to-Webster Pipeline JV

Last May, Delek bought 15% interest in the 650-mile Wink-to-Webster Long-Haul Pipeline joint venture.

The Zacks Rank #3 (Hold) company’s Wink-to-Webster project will utilise a 36-inch OD pipe to transport 1.5-million barrels per day of crude from the Permian Basin to the Texas Gulf Coast. The pipeline will be joined with Delek’s Big Spring gathering system. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Apart from Delek, other owners of this Wink-to-Webster joint venture are ExxonMobil (XOM - Free Report) , Plains All American Pipeline LP (PAA - Free Report) , Enterprise Products Partners LP, Lotus Midstream LLC, MPLX LP (MPLX - Free Report) and Rattler Midstream LP.

Details on Red River Pipeline JV

In 2019, this Brentwood, TN-based company’s logistics unit Delek Logistics Partners purchased 33% stake in the Red River crude oil pipeline from Plains Pipeline. The transaction worth $128 million comprised an initial payment of $3.5 million to expand the pipeline.  Delek Logistics plans to spend more than $20 million on this expansion.

The Red River pipeline, which currently has a capacity of producing 150,000 barrels of oil equivalent per day (boe/d) between Cushing, OK and Longview, TX, will be extended to 235,000boe/d by the second half of 2020. On completion of the pipeline expansion, its shipment capacity will increase from 35,000 boe/d to 100,000 boe/d.

About the Company

Founded in 2001, Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. The company’s operations are organized into three reportable segments, namely Refining, Logistics and Retail.

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