- Facilities Provide 160,000 Barrels per Day of Rail Loading Capacity
- Transaction Establishes Crude Oil Supply, Logistics and Marketing
Platform to East and West Coasts
WALTHAM, Mass.--(BUSINESS WIRE)--Feb. 4, 2013--
Global Partners LP (NYSE: GLP) today announced the completion of its
previously announced acquisition of a 60% membership interest in Basin
Transload LLC (“Basin Transload”), which operates two crude oil
transloading facilities in Columbus and Beulah, North Dakota with a
combined rail loading capacity of 160,000 barrels per day. The purchase
price, subject to post-closing adjustments, was approximately $85
million, which Global financed through an increase in its credit
facility.
“Basin Transload provides us with strategically located assets in the
Bakken region,” said Eric Slifka, Global’s president and chief executive
officer. “The facilities are in close proximity to key suppliers and
producers in this high-growth area. Together, these facilities help form
a network of unique origin and destination locations through which our
customers can efficiently supply cost-competitive crude oil to
destinations on the East and West coasts.”
“The transaction complements our recently announced agreement to
purchase a West Coast crude oil transload and ethanol facility near
Portland, Oregon,” Slifka added. “That facility is linked via the BNSF
Railway to the Beulah facility, where Basin Transload is constructing a
140,000 barrel tank and truck offloading rack to support crude oil
production in the Williston Basin. Our Albany, NY terminal is connected
via single line haul on Canadian Pacific to Basin Transload’s Columbus
location, where we own and operate a 100,000 barrel storage tank and
truck offloading rack.”
“By directly addressing the lack of infrastructure in high-growth energy
regions of the country, we are creating new opportunities to increase
volume and margins by providing a wide range of value-added services,
including leases, to producers and refiners,” Slifka concluded.
The Basin Transload operations are expected to be accretive in the first
full year of operation, based on their current and anticipated future
performance as well as economic and market conditions.
About Global Partners LP
A publicly traded master limited partnership, Global Partners LP is a
midstream logistics and marketing company. Global is a leader in the
logistics of transporting Bakken and Canadian crude oil and other
energy products via rail, establishing a ‘virtual pipeline’ from the
mid-continent region of the U.S. and Canada to refiners and other
customers on the East and West coasts. Global owns, controls or has
access to one of the largest terminal networks of petroleum products and
renewable fuels in the Northeast, and is one of the largest wholesale
distributors of gasoline, distillates, residual oil and renewable fuels
to wholesalers, retailers and commercial customers in New England and
New York. With a portfolio of approximately 1,000 locations in nine
states, the Partnership is also one of the largest independent owners,
suppliers and operators of gasoline stations and convenience stores in
the Northeast. Global is No. 182 in the Fortune 500 list of America’s
largest corporations.
Forward-looking Statements
Some of the information contained in this news release may contain
forward-looking statements. Forward-looking statements include, without
limitation, any statement that may project, indicate or imply future
results, events, performance or achievements, and may contain the words
“may,” “believe,” “should,” “could,” “expect,” “anticipate,” “plan,”
“intend,” “estimate,” “will likely result,” or other similar
expressions. In addition, any statement made by Global Partners LP’s
management concerning future financial performance (including future
revenues, earnings or growth rates), ongoing business strategies or
prospects and possible actions by Global Partners LP or its subsidiaries
are also forward-looking statements.
Although Global Partners LP believes these forward-looking statements
are reasonable as and when made, there may be events in the future that
Global Partners LP is not able to predict accurately or control, and
there can be no assurance that future developments affecting Global
Partners LP’s business will be those that it anticipates.
For additional information about risks and uncertainties that could
cause actual results to differ materially from the expectations Global
Partners LP describes in its forward-looking statements, please refer to
Global Partners LP’s Annual Report on Form 10-K for the year ended
December 31, 2011 and subsequent filings the Partnership makes with the
Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on the forward-looking
statements, which speak only as of the date on which they are made.
Global Partners LP expressly disclaims any obligation or undertaking to
update forward-looking statements to reflect any change in its
expectations or beliefs or any change in events, conditions or
circumstances on which any forward-looking statement is based.
Source: Global Partners LP
Global Partners LP
Thomas J. Hollister, 781-894-8800
Chief
Operating Officer and
Chief Financial Officer
or
Global
Partners LP
Edward Faneuil, 781-894-8800
Executive Vice
President,
General Counsel and Secretary