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PBF Logistics acquires interest in Torrance Valley Pipeline Co.

Published by
World Pipelines,


PBF Logistics LP (PBFX) has revealed that it has recently acquired a 50% interest in Torrance Valley Pipeline Company LLC (TVPC) for a total of approximately US$175 million in cash.

The acquisition was financed with cash on hand, borrowings under its revolving credit facility and proceeds from a successful public offering of common units completed in August.

Based on anticipated ownership percentage, current cost structure, increased fees payable by PBF – under the transportation services agreement – and the expected minimum throughput rates, the acquired interests of TVPC would be expected to generate an estimated annual net income of approximately US$9.4 million, from revenues of US$38.5 million, an operating income of US$11 million and estimated earnings before interest, taxes, depreciation and amortisation of approximately US$20 million.

PBFX and PBF Energy’s CEO, Thomas Nimbley said: "The acquisition of the Torrance Valley Pipeline interests demonstrates PBFX's ongoing commitment to deliver sustained growth and diversify our earnings base with high quality assets."

He continued: "PBF Energy shareholders also benefit from this transaction as PBF Energy has received additional cash, representing approximately one third of PBF Energy's acquisition price for the Torrance refinery and its logistics assets, to strengthen its balance sheet in anticipation of future opportunities."

TVPC owns the 189 mile San Joaquin Valley pipeline system, which has a throughput capacity of approximately 110 000 bpd. Its assets also include 11 pipeline stations with approximately 1 million bbls of combined tankage and truck unloading capability at two of the stations.


Adapted from press release by Anna Nicklin

Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/02092016/pbf-logistics-acquires-interest-in-torrance-valley-pipeline-co/


 

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