Akin Gump Counsels Valero Energy Partners Conflicts Committee in $154M Texas and Oklahoma Acquisitions
(Houston) – An Akin Gump team led by Houston energy partners David Elder and John Goodgame served as legal counsel to the conflicts committee of Valero Energy Partners in its 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 and be funded with the partnership’s cash on hand.
The assets to be acquired include:
- The McKee Crude System, located in Sunray, Texas, which has 72,000 barrels per day (bpd) 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.
- The Three Rivers Crude System, located in the Eagle Ford shale region in South Texas, consisting of 11 crude oil truck unloading sites with lease automatic custody transfer units and a one-mile, 12-inch pipeline with a capacity of 110,000 bpd that delivers crude oil to tanks at Valero's Three Rivers refinery. The system also receives locally produced crude oil via connections to the Harvest Arrowhead pipeline system and the Plains Gardendale pipeline for processing at the Three Rivers refinery or for shipment through third-party pipelines to Valero's two refineries in Corpus Christi, Texas.
- The Wynnewood Products System, located in Ardmore, Oklahoma, consisting of a 30-mile, 12-inch refined petroleum products pipeline with 90,000 bpd of capacity and two tanks with a total of 180,000 barrels of storage capacity. The system connects Valero's Ardmore refinery to the Magellan refined products pipeline system and is the primary distribution outlet for the refinery.
Founded in 1945, Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 850 attorneys in offices throughout the United States, Europe, Asia and the Middle East.
# # #