Delek US Completes Sale of Retail Related Assets for $535 million
November 14 2016 - 4:25PM
Delek US Holdings, Inc. (NYSE:DK) (“Delek”) has closed the
previously announced transaction to sell its retail related assets
to a U.S. subsidiary of Compañía de Petróleos de Chile COPEC S.A.
(SNSE:COPEC) (“COPEC”). The assets sold included MAPCO Express,
Inc., and certain related affiliated companies, (together “MAPCO”)
for total cash consideration of $535.0 million (the “Transaction”)
plus MAPCO’s estimated cash on hand and working capital adjustment,
totaling approximately $16.3 million.
At closing, $156.0 million of debt associated
with MAPCO was repaid, along with a debt prepayment fee of $13.4
million and an estimated $4.6 million of transaction related costs.
Net cash proceeds before taxes related to this Transaction are
$377.3 million. Amounts disclosed above are subject to final cash
and working capital adjustments. The estimated income tax payment
related to this Transaction will occur in early 2017.
Uzi Yemin, Chairman, President and Chief
Executive Officer of Delek said, “With the completion of this
transaction, we have unlocked the value of our retail assets and
improved our financial flexibility. We have gained a partner in
retail fuel sales and will continue to supply certain locations
under an 18-month fuel supply agreement. By continuing to utilize
our wholesale business and our space on the Colonial pipeline
system to serve these retail locations as we have in the past, our
consolidated RINs position should not be significantly changed by
this transaction. This financial flexibility can be used as we
evaluate strategic opportunities to create long term value for our
shareholders.”
About Delek US Holdings,
Inc.Delek US Holdings, Inc. is a diversified downstream
energy company with assets in petroleum refining and logistics. The
refining segment consists of refineries operated in Tyler, Texas
and El Dorado, Arkansas with a combined nameplate production
capacity of 155,000 barrels per day. Delek US Holdings, Inc.
and its affiliates also own approximately 62 percent (including the
2 percent general partner interest) of Delek Logistics Partners,
LP. Delek Logistics Partners, LP (NYSE:DKL) is a growth-oriented
master limited partnership focused on owning and operating
midstream energy infrastructure assets. Delek US Holdings, Inc.
also owns approximately 47 percent of the outstanding common stock
of Alon USA Energy, Inc. (NYSE:ALJ).
Safe Harbor Provisions Regarding
Forward-Looking StatementsThis press release contains
forward-looking statements that are based upon current expectations
and involve a number of risks and uncertainties. Statements
concerning current estimates, expectations and projections about
future results, performance, prospects and opportunities and other
statements, concerns, or matters that are not historical facts are
“forward-looking statements,” as that term is defined under the
federal securities laws.
Investors are cautioned that the following
important factors, among others, may affect these forward-looking
statements. These factors include but are not limited to: risks and
uncertainties with respect to the quantities and costs of crude oil
we are able to obtain and the price of the refined petroleum
products we ultimately sell; gains and losses from derivative
instruments; management's ability to execute its strategy of growth
through acquisitions and the transactional risks associated with
acquisitions and dispositions; acquired assets may suffer a
diminishment in fair value as a result of which we may need to
record a write-down or impairment in carrying value of the asset;
the effect on our financial results by the financial results of
Alon USA Energy, Inc., in which we hold a significant equity
investment; uncertainty regarding the outcome of our proposal to
acquire the remaining outstanding stock of Alon USA; changes in the
scope, costs, and/or timing of capital and maintenance projects;
operating hazards inherent in transporting, storing and processing
crude oil and intermediate and finished petroleum products; our
competitive position and the effects of competition; the projected
growth of the industries in which we operate; general economic and
business conditions affecting the southeastern United States; and
other risks contained in our filings with the United States
Securities and Exchange Commission.
Forward-looking statements should not be read as
a guarantee of future performance or results and will not be
accurate indications of the times at or by which such performance
or results will be achieved. Forward-looking information is
based on information available at the time and/or management's good
faith belief with respect to future events, and is subject to risks
and uncertainties that could cause actual performance or results to
differ materially from those expressed in the statements.
Delek US undertakes no obligation to update or revise any such
forward-looking statements.
Contact:
U.S. Investor / Media Relations Contact:
Keith Johnson
Delek US Holdings, Inc.
Vice President of Investor Relations
615-435-1366
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