Valero LP, San Antonio TX, has purchased from Valero Energy Corporation a 270-mile crude oil pipeline and related 660,000-barrell storage facility in Wichita Falls TX. The 110,000 barrel-per-day pipeline delivers crude oil from Wichita Falls to Valero Energy Corporation's refinery located in the Texas Panhandle. The sale is expected to close February 1, 2002. Valero LP will pay $64 million for the pipeline and the storage tanks.
"Strategically, this acquisition allows the partnership to significantly increase its throughput volumes and revenues and provides a stable cash flow for the unit holders," said Curt Anastasio, Valero LP chief executive officer. "This acquisition is expected to be very accretive to earnings and cash flow. With this acquisition, the partnership has completed the exercise of the three asset purchase options announced at the time of our initial public offering and we look forward to pursuing additional acquisition opportunities in the future."