Arc Logistics Partners LP Completes Its Acquisition of Four Refined Products Terminals in Pennsylvania From Gulf Oil
NEW YORK, Jan. 14, 2016 (GLOBE NEWSWIRE) -- Arc Logistics Partners LP (NYSE:ARCX) (“Arc Logistics” or the “Partnership”) announced today that it has completed its previously announced acquisition of four refined products terminals (the “Terminals”) located in Pennsylvania from Gulf Oil Limited Partnership (“Gulf Oil”) for a purchase price of $8,000,000. The Partnership’s acquisition of the Terminals follows a decision and order issued by the Federal Trade Commission requiring an affiliate of ArcLight Capital Partners, LLC (together with ArcLight Capital Partners, LLC, “ArcLight”) to sell the Terminals, following ArcLight’s acquisition of Gulf Oil on December 29, 2015.
The acquisition of the Terminals extends Arc Logistics’ independent service platform into Pennsylvania, offering continued third-party access to the Altoona, Mechanicsburg, Dupont and South Williamsport markets. The Terminals are capable of receiving, storing and delivering gasoline, distillates, ethanol and biodiesel via pipe and truck connectivity. The Partnership plans to invest incremental capital in the Terminals to modernize the infrastructure, upgrade the tankage and capabilities of the Terminals and enhance the renewable fuel capabilities. In total, the Terminals’ assets include 28 storage tanks with 816,000 barrels of shell capacity, increasing the Partnership’s total shell capacity to 7.7 million barrels across twenty-one terminals.
As part of this acquisition, Gulf Oil and the Partnership have entered into a take-or-pay terminal services agreement, pursuant to which the Partnership will provide Gulf Oil with continued commercial access to the Terminals, as well as several of the Partnership’s other refined petroleum product terminals.
About Arc Logistics
Arc Logistics is a fee-based, growth-oriented limited partnership that owns, operates, develops and acquires a diversified portfolio of complementary energy logistics assets. Arc Logistics is principally engaged in the terminalling, storage, throughput and transloading of crude oil and petroleum products. For more information, please visit www.arcxlp.com.
Certain statements and information in this press release constitute “forward-looking statements.” Certain expressions including “believe,” “expect,” “intends,” or other similar expressions are intended to identify the Partnership’s current expectations, opinions, views or beliefs concerning future developments and their potential effect on the Partnership. While management believes that these forward-looking statements are reasonable when made, there can be no assurance that future developments affecting the Partnership will be those that it anticipates. The forward-looking statements involve significant risks and uncertainties (some of which are beyond the Partnership’s control) and assumptions that could cause actual results to differ materially from the Partnership’s historical experience and its present expectations or projections. Important factors that could cause actual results to differ materially from forward-looking statements include: (i) adverse economic, capital markets and political conditions; (ii) changes in the market place for the Partnership’s services; (iii) changes in supply and demand of crude oil and petroleum products; (iv) actions and performance of the Partnership’s customers, vendors or competitors; (v) changes in the cost of or availability of capital; (vi) unanticipated capital expenditures in connection with the construction, repair or replacement of the Partnership’s assets; (vii) operating hazards, unforeseen weather events or matters beyond the Partnership’s control; (viii) inability to consummate acquisitions, pending or otherwise, on acceptable terms and successfully integrate acquired businesses into the Partnership’s operations; (ix) effects of existing and future laws or governmental regulations; and (x) litigation. Additional information concerning these and other factors that could cause the Partnership’s actual results to differ from projected results can be found in the Partnership’s public periodic filings with the SEC, including the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2014 and any updates thereto in the Partnership’s subsequent quarterly reports on Form 10-Q and current reports on Form 8-K.
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of the forward-looking statements contained herein. Other unknown or unpredictable factors could also have material adverse effects on the Partnership’s future results. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. The Partnership undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
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