Arc Logistics Partners LP to Acquire Four Refined Products Terminals in Pennsylvania From Gulf Oil
NEW YORK, Dec. 30, 2015 (GLOBE NEWSWIRE) -- Arc Logistics Partners LP (NYSE:ARCX) (“Arc Logistics” or the “Partnership”) announced today that it has entered into an agreement to acquire from Gulf Oil Limited Partnership (“Gulf Oil”), following the purchase of Gulf Oil by affiliates of ArcLight Capital Partners LLC (“ArcLight”), four refined products terminals (the “Terminals”) located in Altoona, Mechanicsburg, Dupont and South Williamsport, Pennsylvania. This acquisition, which will extend the Partnership’s operational footprint into the state of Pennsylvania, will be financed with a combination of available cash and borrowings from the Partnership’s senior secured revolving credit facility. The acquisition is expected to close in mid-January 2016, subject to customary closing conditions. The sale of the Terminals by Gulf Oil has been mandated by the Federal Trade Commission pursuant to its decision and order to resolve certain matters relating to ArcLight’s acquisition of Gulf Oil, which closed on December 29, 2015.
The transaction, at closing, is expected to increase the Partnership’s total shell capacity by approximately 12%, to 7.7 million barrels across twenty-one terminals. The transaction also provides the Partnership with an option to purchase additional land with storage tanks located adjacent to one of the Terminals from Gulf Oil for an agreed upon price. At closing, the Partnership will enter into a take-or-pay terminal services agreement with Gulf Oil, further expanding the parties’ existing commercial relationship. The throughput and related services to be provided by the Partnership to Gulf Oil under the terminal services agreement shall be provided at the Terminals, as well as several of the Partnership’s other refined petroleum product terminals.
Following closing, ARCX will operate the Terminals to support new and existing third-party customers’ activity across the Terminals. The Terminals include 28 storage tanks with 816,000 barrels of shell capacity and more than 20 acres of land available for development for customer-driven commercial activities. The Terminals receive, store and deliver gasoline, distillates, ethanol and biodiesel via pipeline and/or truck connectivity and offer ethanol and biodiesel blending and additive injection services to its customers.
The Terminals are expected to allow the Partnership to leverage its expanded footprint to capitalize on commercial opportunities with new and existing customers. The Terminals are expected to be an important addition to the Partnership’s diversified portfolio of logistics assets and will provide opportunities for future growth.
About Arc Logistics Partners LP
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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