Delek Logistics Partners, LP Announces Closing of H2O Midstream Acquisition
12 Septiembre 2024 - 6:00AM
Business Wire
Delek Logistics Partners, LP (NYSE: DKL) (“Delek Logistics”)
announced today the closing of the previously announced acquisition
of H2O Midstream, a portfolio company of EIV Capital, LLC. The H2O
Midstream operations include water gathering, transportation,
recycling, storage and disposal services in the Midland Basin in
Texas. Total consideration of $230 million consists of $160 million
in cash at closing (excluding customary closing adjustments) and
$70 million of convertible preferred redeemable equity. The
transaction is being funded with cash and debt financing.
The acquisition of H2O Midstream supports our core strategy of
providing a full midstream service solution to our existing and
third-party customers in the prolific Permian Basin. H2O Midstream
operations have significant overlap with our existing Midland,
Texas operations. The acquisition also presents an opportunity to
extract significant synergies through cost optimization and cross
product sales.
About Delek Logistics Partners, LP
Delek Logistics Partners, LP is a midstream energy master
limited partnership headquartered in Brentwood, Tennessee. Through
its owned assets and joint ventures located primarily in and around
the Permian Basin, the Delaware Basin and other select areas in the
Gulf Coast region and giving effect to the H20 Midstream
acquisition, Delek Logistics provides gathering, transportation,
recycling, storage, water disposal and recycling services. Delek US
Holdings, Inc. (NYSE: DK) (“Delek US”) owns the general partner
interest as well as a majority limited partner interest in Delek
Logistics Partners, LP, and is also a significant customer.
Safe Harbor Provisions Regarding Forward-Looking
Statements
This press release contains forward-looking statements that are
based upon current expectations and involve a number of risks and
uncertainties. Statements concerning current estimates,
expectations and projections about future results, performance,
prospects, opportunities, plans, actions and events and other
statements, concerns, or matters that are not historical facts are
“forward-looking statements,” as that term is defined under the
federal securities laws. Investors are cautioned that important
factors may affect these forward-looking statements, as described
in Delek US’s and Delek Logistics’ filings with the SEC, including
risks disclosed in their respective Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and other filings and reports with
the SEC.
Forward-looking statements should not be read as a guarantee of
future performance or results and will not be accurate indications
of the times at, or by, which such performance or results will be
achieved. Forward-looking information is based on information
available at the time and/or management's good faith belief with
respect to future events, and is subject to risks and uncertainties
that could cause actual performance or results to differ materially
from those expressed in the statements. Neither Delek US nor Delek
Logistics undertakes any obligation to update or revise any such
forward-looking statements to reflect events or circumstances that
occur, or which they become aware of, after the date hereof, except
as required by applicable law or regulation.
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Investor Relations and Media/Public Affairs Contact:
investor.relations@delekus.com
Delek Logistics Partners (NYSE:DKL)
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