Andeavor Logistics To Acquire Pipeline Operator For $1.5B
Zacks Investment Research | Aug 15, 2017 09:31PM ET
Pipeline operator, Andeavor Logistics LP (NYSE:ANDX) announced recently that it will acquire rival Western Refining Logistics LP (NYSE:WNRL) , including the latter’s $310 million net debt, to extend its hold in the prolific Permian Basin, TX.
Lately, the Permian Basin has drawn many oil producers including the likes of oil major ConocoPhillips (NYSE:COP) , while the existing players are expanding their presence to benefit from the basin’s high production and low-cost characteristics.
About the Deal
Per the $1.5 billion unit-for-unit deal, Andeavor Logistics, formerly known as Tesoro Logistics, will give 0.5233 units for each Western Refining Logistics unit to the latter’s unitholders. It means Andeavor Logistics will pay $25.28 for every Western Refining Logistics unit, which represents a premium of 6.4% to its closing price as of Aug 11, 2017. Andeavor Logistics expects the deal, which awaits regulatory approval from the unitholders of Western Refining Logistics, to be over in the fourth quarter of 2017.
We would like to remind investors that the parent entity of Andeavor Logistics, Andeavor (NYSE:ANDV) - previously known as Tesoro Corp - Zacks Investment Research
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