Valero Energy Partners LP (NYSE: VLP) is buying oil and gas assets for $154 million.
The company is buying: the McKee Crude System, a Sunray, Texas-based system that includes 200 miles of oil pipelines, 20 crude oil truck unloading sites and 240,000 barrels of storage capacity; the Three Rivers Crude System, located in the Eagle Ford shale region in South Texas, that includes 11 truck unloading sites and a 1-mile pipeline; and the Wynnewood Products System, in Ardmore, Oklahoma, which has a 30-mile pipeline, and two tanks with 180,000 barrels of storage capacity.
Valero Energy, headquartered in San Antonio, Texas, was create to acquire, own, operate and develop crude oil and refined petroleum products pipelines, terminals and other logistics assets.
The deal comes at a busy time in the oil and gas industry. Similar M&A transactions include the planned merger of Southcross Energy LLC and TexStar Midstream Services LP, and Triangle Petroleum Corp.’s (NYSE: TPLM) purchase of two oil and gas properties in the Williston Basin.