Valero Energy acquires undivided interest in Red River Pipeline for $70mStaff Writer | January 19, 2017
Valero Partners Wynnewood, an indirect wholly owned subsidiary of Valero Energy Partners, acquired a 40 percent undivided interest in the Hewitt segment of Plains All American Pipeline's Red River pipeline for approximately $70 million.
Acquisition The Hewitt segment
The Hewitt segment originates at Plains Marketing L.P.’s Cushing, Oklahoma terminal and ends at Hewitt Station in Hewitt, Oklahoma. The pipeline began supplying crude oil to Valero’s refinery in Ardmore, Oklahoma in January 2017.
The Partnership funded the acquisition with cash on hand.
Concurrent with the acquisition, the Partnership entered into a 10-year throughput agreement with a subsidiary of Valero Energy Corporation.
Consistent with the Partnership’s existing portfolio of assets, the agreement includes a minimum volume commitment, a five-year renewal term, and no direct commodity price exposure. ■