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.