Valero Energy Partners LP has approved the acquisition from certain subsidiaries of Valero Energy Corporation of the McKee Crude System, Three Rivers Crude System, and Wynnewood Products System for total consideration of $154 million. The drop-down transaction is expected to close on July 1, 2014 and to be funded with the Partnership's cash on hand.
"This acquisition is our first step in executing our growth strategy and is consistent with previously communicated growth plans," said Joe Gorder, Chairman and Chief Executive Officer.
The assets to be acquired include:
◾ The McKee Crude System, located in Sunray, Texas, which has 72,000 barrels per day of throughput capacity and supplies approximately 40 percent of the crude oil processed at Valero's McKee refinery. The system consists of more than 200 miles of pipelines, 20 crude oil truck unloading sites with lease automatic custody transfer units, and approximately 240,000 barrels of storage capacity.