From the San Antonio Business Journal
San Antonio-based pipeline and storage terminal company Andeavor Logistics is moving to complete a merger with Wester Refining Logistics by the fourth quarter.
In an amended registration statement filed with the U.S. Securities and Exchange Commission on Wednesday, Andeavor Logistics LP (NYSE: ANDX) reported that the company plans to exchange a 0.5233 share of its stock for every share of Western Refining Logistics LP (NYSE: WNRL) common stock.
If approved by regulators, Andeavor Logistics can set a date for Western Refining Logistics shareholders to vote about the merger.
San Antonio-based Tesoro Corp. and El Paso-based Western Refining successfully closed their merger in June, rebranded and emerged as Andeavor Corp. (NYSE: ANDV) in August. Under the merger agreement, Tesoro Logistics LP was rebranded as Andeavor Logistics.
If all proceeds as planned, the merger, stock swap and a related incentive distribution rights transaction will be completed by the fourth quarter.
Andeavor Logistics owns 26 million barrels of storage capacity across six states with 990 miles of refined product pipeline as well as 1,246 miles of crude oil gathering pipeline and 1,948 miles of natural gas gathering pipeline. The San Antonio-based company reported $315 million in profits on $1.2 billion in revenue in 2016.
With $2.2 billion of revenue and net income of $66.7 million in 2016, Western Logistics owns 705 miles of pipeline and 12.4 million barrels of storage capacity across five states.
The merger would give the company nearly 5,000 of miles of pipeline and nearly 40 million barrels of storage capacity.
Andeavor Logistics officials estimate that the unit-for-unit transaction portion of the deal has a total enterprise value of $1.8 billion. If and when it is merged, Andeavor Logistics is targeting at least $1 billion of annual growth of investments — including some with exposure to the Permian Basin of West Texas, which has become the hottest shale play in the United States.
